Marie Selby Botanical Gardens has announced the successful execution of a $31,165,000 bond sale to help finance the Master Plan for its Downtown Sarasota campus.
High demand from bond investors reflected the institution’s strong finances, while the bond issue achieved the rare ESG (Environmental, Social, and Governance) rating, demonstrating the Master Plan’s innovative sustainability and social-impact aspects. The proceeds from the bond sale enable Selby Gardens to maintain an aggressive construction schedule while multiyear philanthropic gifts are realized.
“We are thrilled with the successful bond sale and with continued growth in fundraising for our Master Plan,” said Jennifer Rominiecki, President & CEO of Marie Selby Botanical Gardens. “Selby Gardens’ Master Plan is full speed ahead, thanks to the significant support we’ve received from donors and bond investors.”
Construction has already begun on the first phase of the Master Plan and is expected to be complete in August 2023. When it is finished, Selby Gardens’ 15-acre Downtown Sarasota campus will house its world-renowned plant research collections and library in new hurricane-rated facilities, welcome guests with an expanded and inviting entrance area, and offer more parking to accommodate ever-growing visitor numbers—all powered by a new stormwater-purification and solar-energy plant that will make the campus the first-ever net-positive energy botanical garden complex in the world.
R.W. Baird served as the underwriter for the Selby Gardens bond sale, while Capital Trust Agency issued the tax-exempt bonds and Kestrel Verifiers gave the bonds the ESG rating.
The bond sale, executed in December 2021, provides Selby Gardens with the working capital needed for construction while philanthropic pledges from its successful capital campaign continue to flow in, Rominiecki said. Fundraising to date for Phase One of the Master Plan has surpassed $45 million.
“It’s so rewarding to see the Master Plan coming to life,” Rominiecki said. “I have to thank our Chair Marianne McComb, our Vice Chair and Finance Committee Chair Dr. Joel Morganroth, our Committee members, and the entire Board of Trustees for their leadership in this effort. The generosity of Selby Gardens’ supporters is inspiring, and it’s critical that we keep our fundraising going as we look to complete the Master Plan.”
Green Building, Social Impact
The bonds for Selby Gardens achieved the ESG Sustainability Bond rating because of the Master Plan’s high level of green innovation and the ongoing work the nonprofit does. To qualify for the designation, the project met extensive standards for green building, conservation, preservation, and educational access. Kestrel Verifiers’ opinion report cited the regenerative green-building technologies being used in the project, the expanded access to science it will provide for underrepresented audiences, and Selby Gardens’ advancement of biodiversity conservation goals through education and research, among other qualifications.
There was heavy investor interest in the bond sale, a function of Selby Gardens’ strong financial health. Going into its master planning process, Selby Gardens had zero long-term debt and a zero balance on its line of credit. The institution’s financial turnaround, tied to Selby Gardens’ popular operating model as The Living Museum® and its success in diversifying and growing revenue, has helped it post increases of 75% in membership and 74% in overall earned revenues since 2015.
The bond issue was announced at Selby Gardens’ annual Chairman’s Circle Dinner, which also included an update on the first phase of the Master Plan. With some inevitable cost escalations in the current environment, Rominiecki shared that the total cost for Phase One construction has been finalized at $51.6 million—of which approximately 90 percent has been raised through the campaign in support of this effort.
She also announced the expansion of Selby Gardens’ campaign Capping Challenge to catalyze the remaining philanthropy needed for Phase One. A group of loyal champions initially stepped forward last year to provide $2.5 million to match new donations from the community. With recent gifts, the Capping Challenge has grown to more than $5 million, which will match every gift dollar-for-dollar until the final goal is reached.
The following individuals and institutions have contributed as Initiators to the Capping Challenge for Phase One:
Leaders
Sherry and Tom Koski
Drs. Joel Morganroth and Gail Morrison
Morganroth
Steinwachs Family Foundation
Benefactors
Frank E. Duckwall Foundation
Cornelia and Richard Matson
Marianne and William McComb
Jeannie and Tom Russell
Martin and Carolyn Stogniew
Hobart and Janis Swan
Partners
Sherry and Howard Davis
Drs. Andrew and Judith Economos
Keith Monda and Veronica Brady
Pauline L. Wamsler and David J. Sales
Jean Weidner Goldstein
Anonymous
Supporters
James M. Doss Charitable Trust
Doug and Betsy Elder
Marcy and Michael Klein
Katherine and Frank Martucci
Jonathan and Michelle Mitchell
Elizabeth Moore
Anonymous