Seton Hill University on Thursday completed the first step in its plan for financing a new indoor athletic facility as the Latrobe Industrial Development Authority approved a bond issue of up to $37.5 million for the project.

On Monday, the bond financing will come before Latrobe City Council for approval, following a public hearing.

Westmoreland County’s commissioners and state officials also will need to agree to the tax-exempt municipal bond issue, according to authority Solicitor Dan Hudock.

The bond issue is slated to occur in February. Seton Hill is planning to break ground in the spring for up to two years of construction.

Brent Jackson, the university’s chief financial officer, said about $30 million of the financing would be devoted to the 87,000-square-foot athletic building.

It will consist in part of a 200-meter indoor track surrounding a 40-yard turf field that could be used for baseball and softball practice.

The track facility will include areas for practice in the high jump and throwing events.

“We’ve never had that on campus,” Jackson said.

A two-story portion of the building bordering the university’s softball field would include a space for wrestling practice, locker rooms, a recruiting room and coaches’ offices. The building’s elevator and new exterior ramps will offer improved access to the softball field for those with physical challenges, Jackson said.

The remainder of the financing and a previously approved $4 million state grant will go toward renovation of Sullivan Hall, the university’s former gymnasium.

With athletic practice areas moving to the new building, Jackson said, Seton Hill intends to expand Sullivan’s underused 37,000 square feet to 46,000 square feet of usable space.

The former gym will be split into two levels — for nursing, doctor of physical therapy, finance and cybersecurity programs. Different levels of the former swimming pool will house a cadaver lab and a relocated book store.

“It’s trying to use the space that’s in the building already most effectively, to fit the needs of the students,” Jackson said.

Hudock said the Latrobe Industrial Development Authority is able to serve as a conduit for the bond financing, even though Seton Hill is in Greensburg. Latrobe Council’s approval is needed because the authority is based in Latrobe.

County approval also is sought because the project is located elsewhere, in Greensburg.

Hudock said none of the municipal or county bodies would assume any liability for repaying the bonds.

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