INDIANAPOLIS | Valparaiso University received state permission Tuesday for $40 million in bonds to finance the campus' new Doppler radar weather tower and other infrastructure improvements.

The Indiana Finance Authority also gave preliminary approval for a $3 million loan that Hadady Corp. will use to purchase machinery that will create 16 new jobs at the company's Dyer manufacturing plant.

In both cases, the bonds will be sold on the open market, with the state incurring no financial responsibility. The Indiana Finance Authority simply extends its financial clout to help borrowers secure more favorable terms from private lenders.

Valparaiso University will issue $25 million to $30 million in new debt and refinance $10 million to $15 million in existing bonds from 1999 and 2003, said Charley Gillispie, the school's vice president for administration and finance.

The news bonds, to be sold in November, will give the university 30 years to pay off the Doppler radar system installed last year, heating system upgrades and new fiber-optic data and telecommunications lines.

"We're raising money to build new buildings," Gillispie said. "Basically we're trying to improve the infrastructure so that we can handle the new buildings and also handle the demand of our students for Internet access."

As for the Dyer project, Hadady Vice President Bill Sweeney said the company is working to grow a business that has called the Calumet Region home since 1973. The company, which is headquartered in South Holland, Ill., engineers parts used to retrofit large diesel engines for marine use and other applications, including building generators.

Sweeney said the new machinery being purchased will allow the company to increase payroll by $625,000 over three years, which translates to 16 new welding and skilled manufacturing jobs.