I think it's a brilliant idea. I think that it is only fair with the amount of spending that has gone to automobile infrastructure. What about those of us who use our bikes as our primary transportation. We are helping the situation on campus by reducing traffic congestion, reducing parking congestion, reducing wear and tear on roads, and what do we have to show for it? Overcrowded bike racks, a campus police department who drives/parks in the bike lanes and can't return emails to concerned cyclists and pedestrians, and drivers who are intolerant of as well as aggressive towards cyclists. Given these things, asking for simple amenities that make bike commuting more safe and enjoyable, especially in the inclement weather that we routinely experience in Grand Forks, isn't asking that much.
Those things having been said, good luck convincing anybody on campus besides cyclists that money should be spent on cycling infrastructure. If anybody wants to start a project of some kind I would love to help in any way possible.