New College seeks authority for up to $47.5 million in debt tied to USF Sarasota-Manatee campus transfer

New College of Florida’s Board of Trustees listed a resolution on its agenda for Tuesday, Nov. 3, asking the state Board of Governors to authorize up to $47.5 million in debt tied to the transfer of the University of South Florida Sarasota-Manatee campus. The meeting was scheduled for 2:30 to 4:30 p.m.; SignalData could not confirm an outcome at publication.¹

The borrower would be the New College of Florida Development Corporation. A memo with an Oct. 27 meeting date, in the packet for the Oct. 30 Finance and Administration Committee meeting, sets the amount at “not to exceed $47,500,000” and says no proceeds would pay operating expenses.² WUSF reported that the committee approved the plan that Friday.³

The lenders

The packet describes a senior loan of about $40 million from BankUnited and its subsidiary Bridge Funding Group, dated as of Dec. 1, 2026. It has two parts: a $28.57 million, 30-year taxable note to acquire Atala Hall, and an $11.43 million, 10-year tax-exempt note to refinance 2006 housing certificates held by Truist Bank.²

The packet does not name the subordinate lender. It uses “accredited investor” and “private investor,” and says New College arranged the loan. The memo caps that loan at $7.5 million. The project summary says the corporation expects to borrow “an additional $4.34M,” and the sources table lists $4,340,553.²

Inside Higher Ed quoted Virginia Zimmermann, New College’s deputy chief of staff, as saying, “The investor information will be made public in the next few weeks once the finalized loan agreement is available.”⁴ WUSF reported that New College did not respond to its questions about the investor’s identity.³

The transfer law

HB 5601-E, approved by the governor June 29 and assigned Chapter 2026-237, requires New College to complete the steps to assume the campus debt by Dec. 31, 2026.⁵⁶ Until then, it must pay USF $166,617 a month; failure to pay invalidates the transfer of facilities, which would revert to USF.⁶

The packet says Atala Hall, a six-story residence hall and student center built in 2023, is the only campus facility with outstanding debt.²

Repayment and the state review

The debt would be secured by housing revenue, student activity fees and support payments from the New College Foundation, which had unrestricted assets of $3,614,034 as of Oct. 8, 2026, the packet says. The packet’s model shows total housing debt service of $1,779,107 in fiscal 2026 and $4,163,284 in fiscal 2030, and rent increases of 10% in fiscal 2028, 5% a year through fiscal 2031 and 3% a year after that. The plan anticipates refinancing both loans around July 1, 2032.²

The packet’s project summary, headed with the Board of Governors’ name, lists three departures from state debt guidelines: the subordinate lien, debt service coverage below 1.20x in most years until fiscal 2037, and rising rather than level payments. It says foundation backing mitigates the risk and that staff recommends authorization.²

WUSF reported that the Board of Governors will vote later this month.³ The board’s calendar lists a meeting Nov. 12-13 at Florida International University; its page for that meeting showed no agenda when SignalData checked Tuesday.⁷

What the records do not show

• The packet does not explain the gap between the $7.5 million cap and the $4.34 million expected.²
• The trustees’ approval date is blank in the project summary: “November , 2026.” The rent increases carry the same blank. Tampa Bay Business & Wealth reported that the committee materials leave unsettled whether trustees approved all of the rent increases.²⁸
• The figures for the USF debt differ inside the packet: about $27,560,000 in the memo and roughly $28.5 million in the project summary. The packet does not reconcile them.²
• The packet footnotes the monthly payment as $166,671; the law says $166,617.²⁶
• SignalData found no Board of Governors agenda listing the request.⁷