The Third Court of Appeals of Texas issued an opinion July 27 that dismissed the challenge to the Austin Community College District annexation election held in Hays CISD in November 2010, thereby permitting the college to move forward with financing for the ACC Hays Campus.

After nearly 7,000 voters in Hays CISD voted to approve annexation into the ACC District (a 59 percent margin), a resident of Hays CISD filed a challenge to the election. All rulings throughout the course of the case have been favorable to ACC, and Wednesday’s decision dismisses the resident’s appeal.

“This allows us to continue to make progress with the ACC Hays Campus,” says Dr. Stephen B. Kinslow, ACC president/CEO. “We remain committed to bringing the residents of Hays CISD all the benefits of joining the ACC District, and the court’s decision supports the will of the voters of Hays CISD.”

ACC is working with the architect, Gensler, to develop design plans for Hays Campus, and this month the Board of Trustees hired Flintco Constructive Solutions as construction manager-at-risk for the project. Bonds could not be issued to finance construction of the campus during the appeal. The court’s decision clears the way for ACC to reinitiate the bond issuance process.

“We have maintained that this case was without merit, and this opinion affirms our position,” says Cobby Caputo, ACC legal counsel. “We are gratified to bring this to a successful conclusion and allow the college to finalize plans for the campus.”

As a result of the legal challenge, ACC was unable to take advantage of the federal Build America Bonds subsidy program, which would have funded 35 percent of the interest costs for Hays Campus. To offset the cost of approximately $21 million in additional interest over the life of the bonds, ACC expects the eventual bond issuance to be $10 million less than what it would have been through the Build America Bonds program; the first phase of construction also will be smaller than the subsidy would have permitted.

The construction timeline and exact size of the campus will be determined once bonds are issued, tentatively scheduled to happen before the end of the year.

“The delay caused by this baseless legal challenge was unfortunate, but our planning throughout this process will let us move forward as quickly as possible,” says Dr. Kinslow. “The actions of one resident will not stop the college from delivering on our promises to the community at large.”

Since annexation, Hays CISD residents have enjoyed access to the lower, in-district tuition rate, and the community is a full partner in the ACC District. Hays Campus will be located on 96 acres in Kyle’s Plum Creek area, near the intersection of Kohlers Crossing and Kyle Parkway.

The campus will provide access to general education and academic transfer opportunities, workforce education vital to local economic development (including specialized business programs, computer networking and security, and child development courses), as well as foundation skills programs for those not yet college-ready. Students will have access to comprehensive support services, such as advising and counseling, financial aid, learning lab with free tutoring, online and on-site library services, computer labs, testing center, and bookstore.

The case did not affect plans for the new Elgin Campus. ACC was able to use Build America Bonds for that project, saving a considerable amount of money for district taxpayers. Elgin Campus is scheduled to open in fall 2013.