Office of Public Relations — Newsroom
News Release
University of Colorado at Denver and Health Sciences Center
Certificates of Participation for the Fitzsimons Project
Fact Sheet — October 2005
Background:
In 2003, the General Assembly passed and Gov. Bill Owens signed HB03-1256. The bill provided for the use of lease purchase agreements for its portion of the initial academic development of the Fitzsimons campus and a new correctional facility for the Colorado Department of Corrections. Based on this legislation, UCDHSC agreed to not seek additional capital construction funding from the state for 10 years
Under COP, the state will pay annual lease payments to a trustee-lessor, allowing the UCDHSC to occupy and use the facilities. The trustee will raise funds to build the facilities by issuing Certificates of Participation in the amount of $202 million, which give the holders the right to receive a portion of any annual lease payments. Over 25 years, the state will make annual payments of $15.1 million, beginning in FY 2007. Funding could come from a variety of sources, including the use of state capital construction funds or private gifts. The first COP payment would not occur until FY 2005, with the first repayment estimated at $1.9 million.
After the legislation was enacted in 2003, the Colorado Criminal Justice Reform Coalition (CCJRC) filed a lawsuit in Denver District Court challenging its constitutionality. In January 2004, The Denver District Court ruled that HB03-1256 was constitutional and dismissed the lawsuit. CCJRC appealed that ruling to the Colorado Court of Appeals.
Current Action:
In April, the Colorado Court of Appeals upheld the constitutionality of HB03-1256. The CCJRC then requested that the Colorado Supreme Court review the decision of the Colorado Court of Appeals. Today's Supreme Court decision declining to review the Court of Appeals' decision ends the case.
Construction of seven academic buildings will begin within months. Building costs are expected to be higher than they would have been had construction commenced on schedule when the COP was first enacted. The buildings have undergone redesign in order to fit within the budget for construction. Nevertheless, UCDHSC and the state are still expected to realize economies of scale savings by constructing multiple buildings at one time and the by elimination of controlled maintenance project requests for the Ninth and Colorado Boulevard campus.
Statement:
This final step in the legal process allows UCDHSC to finally move forward with a critical phase of the Fitzsimons project. With the funding now in place the transition to the new campus can be completed, saving the state millions of dollars, reducing the costs of maintaining two campuses and boosting the economic benefits of the project. We look forward to having our schools and students, clinical services and research all on one campus in the near future.
Economic Benefits:
The State of Colorado and the University of Colorado have embarked on an unprecedented opportunity to create a state-of-the-art, 21st century life sciences campus at Fitzsimons. It is estimated that this project will result in significant economic benefits to the state including:
- Generation of state corporate and personal income, sales taxes and motor vehicle registration revenue of $46.7 million per year and $93.8 million annually upon completion of the project.
- Statewide, local sales and use taxes supported by Fitzsimons will total $21.7 million per year in 2010 and $40.5 million annually upon completion.
- Construction jobs alone will generate 14,420 job-years through 2010 which will support an additional 17,040 jobs throughout the state.
- Upon completion, Fitzsimons will generate total economic activity of more than $7.2 billion in Colorado - $2.8 billion of which will accrue as income to entrepreneurs, employees, business owners and property owners.
Projects to be supported with the COP:
Academic Office Facilities
Education Facility II/ Education Bridge
Library
Facility Support Building
Environmental Health & Safety II
Education Facility IB
Master plan
Map (Adobe Acrobat® PDF File)