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UMW Foundation still on track to get Bank of America financing despite banking giant's woes Date published: 1/17/2009
BY BILL FREEHLING
The University of Mary Washington Foundation's plans for Eagle Village remain on track despite the recent struggles of Bank of America, which is financing the project. Jeff Rountree, CEO of UMW's private foundation, met with a group of senior vice presidents from Bank of America on Thursday. Rountree said the bank executives assured him that the financing is secure. The estimated price for phase one of the mixed-use Eagle Village--which was formerly called Park & Shop--is $115 million. Rountree said the UMW Foundation has some equity in the project, but it's largely financed. Bank of America yesterday announced it has received another $20 billion from the U.S. Treasury Department's Troubled Assets Relief Program. The government will also backstop the majority of the large losses from Bank of America's recent purchase of Merrill Lynch. The Charlotte, N.C.-based bank had already received $25 billion from the Treasury Department. Its stock has sank on the news. Rountree said the UMW Foundation chose Bank of America because of its financial strength. He said he remains confident that the financing is in place. The UMW Foundation is an attractive borrower, Rountree said, because of its large portfolio of real estate holdings. Further, banks know that UMW could step in if problems arose, and the university itself is a public institution. The UMW Foundation bought the 21-acre property on U.S. 1 in December 2007 for $18.75 million. It plans to demolish Roses in early March to make room for student apartments, a parking garage and retail and office space. The school hopes to complete the first phase, which will include a 214-foot red-brick pedestrian bridge over U.S. 1 just north of College Avenue, by summer 2010. Phase one will have 30,000 square feet of retail. Rountree did not announce any names but said many retailers and restaurants have expressed interest. He said he's looking for "lively and fun" offerings that students would enjoy. Cleveland-based Donley's is the general contractor. The company, which built Fredericksburg's parking deck, has an office in Richmond. Bill Freehling: 540/374-5405
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