Touro University looks to refinance $23.5 million debt

Henderson university offers programs for teachers, health care professionals

Tuesday, Oct. 7, 2008 | 11:02 p.m.

Touro University

Touro University is seeking Henderson's approval to issue $23.5 million in tax-exempt bonds to refinance the university's debt from purchasing its two-building campus in Green Valley.

The measure was introduced to the City Council Tuesday and is scheduled for a final vote at the Oct. 21 meeting. If approved, Touro officials said, the measure will allow the university to refinance its debt at a significantly lower interest rate.

Henderson Finance Director Steve Hanson said that if the measure is approved and Touro issues the bonds, the responsibility for repaying them will rest solely with Touro.

"We are not financially obligated in any way, shape or form," he said.

Hanson said the Internal Revenue Service allows certain entities to issue tax-exempt bonds if the local governing body votes in favor of it. The purpose, he said, is to foster favorable economic growth. The bond issue is handled between the lender and the entity requesting funding, and the governing body is involved no further, he said.

Hanson said the city has granted similar bond issues for Touro in the past, and has done a number for St. Rose Dominican Hospitals. Requests for tax-exempt bonds are reviewed by the city's Public Improvement Trust, a citizen's advisory committee that advises the City Council on financial matters. If the committee grants a favorable recommendation, the council votes on the request.

"We just want to make sure that (the requesting entity) is the type of organization that can enhance the city and provide the level of service that our citizens need," Hanson said.

Touro University established its Green Valley campus in 2004 to help address the state's shortages of health-care professionals and teachers. It offers programs in education, occupational therapy, nursing and osteopathic medicine, as well as the state's only physician's assistant program.

The university launched in two rented warehouses on American Pacific Drive near Gibson Road, which it has been renovating in phases since moving in. In 2006, Touro bought the buildings and is now working on an exterior facade renovation.

Touro spokeswoman Hilarie Grey said the bond issue would be a win-win for the university and the city because of Touro's unique educational offerings.

"We are going to have a very favorable interest rate by doing this, so that helps us quite a bit," she said. "And from an economic development standpoint, it's good for the city as well."

Grey said Touro has used a similar strategy at its Mare Island Campus in Northern California, financing the buildings' acquisition on the school's credit, then refinancing through tax-free bonds.

"This was the plan to do it this way from day one," Grey said.

Jeremy Twitchell can be reached at 990-8928 or jeremy.twitchell@hbcpub.com.

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By Nevhiker

Oct. 13, 2008

5:06 p.m.

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Jeremey....I would like to point out that Touro Univiersity is located in Henderson, not Green Valley. The Green Valley neighborhood/master planned community is at least two miles west of Touro's location. Touro was recruited years ago by the city to fulfill a shortage in the medical field and has been a economic development success story we should all be proud of.
By robertlhinton

Oct. 31, 2008

7:35 p.m.

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Jeremey, obviously Nevhiker is not aware of the problems that Touro has faced and is facing. These are financial as well as academic. I am wondering what this persons ulteria motives are and why success is being reported. Who wrote the bond issue? Student financial aid being pulled from the school for not meeting standards. Faculty and Administrators leaving at an accelerated rate. Inquiries and investigations from both the Nevada State Board of Nursing as well as the Western Accreditation Body. Something is not right when students cannot get their financial aid and are not informed about it. Touro charges very high tuition and leads students to believe that they cannot fail in any way shape or form. In fact there is no such thing as an F at Touro. Could this be to keep students GPA's from falling below the Fedral standard to allow them to qualify for subsidized loans? Success story, I don't think so. Something smells and its not the Cadavers in the Medical school. Bonds and money will not fix these problems. Investigation into the New York based "non profit" school is the way to go. Until the schools administration is investigated and reported, admissions should cease!