The Santa Fe City Council on Wednesday unanimously approved a resolution giving staff the authority to negotiate with creditors of the College of Santa Fe. The move is the first step toward the city issuing bonds to buy the college campus.

Only Councilor Patti Bushee had any substantive questions about the resolution, asking Finance Director Dave Millican what exactly he would be doing if it was approved.

"What I would really like to understand is what you are going out to negotiate," Bushee said.

Millican did his best to explain the complex financial situation the College of Santa Fe faces — it owes about $40 million, most of which stems from a $25 million bond refinancing that has spiraled out of the college's control — and said staff would negotiate with creditors to decrease the debt.

He said, too, that there is a sense of urgency in moving forward before creditors begin to act on claiming repayment of the bonds, something that could mean years of lawsuits.

Bushee also questioned whether the city could take on any more debt. Millican said it could, but would have to be careful to ensure it would receive enough revenue to cover repayment of the bonds.

Bushee, who also asked why the city should pursue the acquisition on its own, eventually voted for the resolution, though she said she did so with "trepidation."

Mayor David Coss, who hatched the idea with Councilor Rebecca Wurzburger, said after the vote that he was pleased with the unanimous decision. "Now the hard part starts," Coss said.

Earlier Wednesday, a governor-appointed College of Santa Fe task force forwarded a batch of subcommittee reports to Gov. Bill Richardson, backing the city's bid to issue bonds to buy the campus.

At the task force meeting, Wurzburger cautioned against assuming the city's bid was a done deal.

"We can't cover the debt service next year or the year after," she said. To be able to pay the debt required to buy the campus, the city will need to secure revenue in the form of lease payments.

Laureate Education Inc., a for-profit institution, has already expressed interest in running an arts school on the campus, but without other tenants, the city still won't have enough revenue to cover the debt.

Laureate's participation in any future plans for the college also drew some concern from task force members who were hoping the campus would eventually be a place to offer affordable higher education to New Mexicans.

Coss responded by saying that if Laureate can help the city acquire the campus, other ideas, such as a higher education learning center associated with state colleges, could come later.

Ruling out a prominent role for Laureate, Coss said, could lead to the alternative: a dark campus.

Jonathan Wacks, a film professor at the College of Santa Fe, questioned who would run the academic end of a school operated by Laureate.

President Stuart Kirk has said Laureate is not interested in running academic programs and leaves most decisions to local management. Wacks asked whether that would mean the college's current leadership. "Are we looking forward and getting a fresh start or are we staying with the status quo?" he said.

Bruce Perlman, Richardson's deputy chief of staff and task force chairman, said Wednesday that he is compiling a comprehensive report based on the group's work, which will be sent to Richardson for review and response.

Contact John Sena at 986-3079 or jsena@sfnewmexican.com.