While the Regents minutes don't clarify, the first thing to ask is, what entity is securing the private funds and on the hook for the bonds (the minutes do say a mix of private funds and bonds, secured by generally available unrestricted funds)? Since ku athletics can't build anything that resembles an athletic dorm themselves (by NCAA rule), then it's the school and (likely)specifically ku housing services. So, ku has apparently (at least until further notice/clarification) asked the Regents (already approved) and now the Legislature to approve issuing bonds (debt) so that KU Housing (again, speculating on my part since the Regents minutes doesn't clarify) can build a dorm, which, let's be honest, is being built for a handful of basketball players.
If you think about it, IF that is the case, than that's not really a very smart approach, and frankly smells of desperation on some levels.