Program

The Colorado General Assembly’s legislative declaration for the passage of SB 20-219 cites: the unprecedented economic situation of the State and the importance of funding the continuation of certain previously funded capital construction projects because of the declared disaster emergency due to the COVID-19 pandemic; the particular importance of funding the continuation of certain previously funded capital construction projects because there are cost escalations due to construction inflation when a project is postponed, there are repair, maintenance, and upkeep cost to minimize damage to the ongoing project or existing infrastructure while funding is delayed, and there may be increased operational cost for any project continuation alternatives; and, funding the continuations of certain previously funded capital construction projects in a time of economic downturn helps boost local economies with construction projects that can commence quickly when the money is made available. SB 20-219 authorizes, among other things, the creation of a lease-purchase agreement on existing facilities for the purpose of funding previously funded capital construction projects at State institutions of higher education. SB 20-219 directed the Capital Development Committee of the General Assembly to publish a list of specific projects authorized for funding pursuant to SB 20-219 and the cost of each project no later than August 15, 2020. Published on August 11, 2020, the list identified: Colorado State University, Shepardson Building Renovation and Addition ($17,051,200) (the “CSU Project”); Fort Lewis College, Health Sciences Center ($26,571,891) (the “Ft. Lewis Project”); and, University of Colorado, Anschutz Health Sciences Building ($21,859,241) (the “CU Anschutz Project” and, collectively with the CSU Project and the Ft. Lewis Project, the “Projects”). To finance the Projects, pursuant to SB 20-219, the State is authorized to execute a lease-purchase agreement in an amount not to exceed $65.5 million, plus reasonable and necessary administrative, monitoring and closing costs and interest, including capitalized interest and credit enhancement costs such as a debt service reserve fund or bond insurance. The annual repayment obligation may not exceed $5.5 million and principal amortization may not occur before July 1, 2022. If the financing raises money in excess of what is required for the Projects, SB 20-219 directs that those moneys be credited to the Emergency Controlled Maintenance Account of the Capital Construction Fund and that the Capital Development Committee will specify the use of those excess funds on or before June 30, 2021.