Joint Committee Committee on Capital Development (04/14/2015)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON CAPITAL DEVELOPMENT

Date:	04/14/2015	ATTENDANCE

Time:	07:31 AM to 08:28 AM	Becker K.	X
		Brown	X
Place:	SCR 356	Kefalas	X
		Sonnenberg	X
This Meeting was called to order by		Baumgardner	X
	Representative Vigil	Vigil	X

This Report was prepared by
	Bo Pogue
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Presentation of House Bill 15-1344 Colorado Mesa University Two-Year Cash List Colorado State University Two-Year Cash List		Recommended One Project Approved Four Projects Approved

07:32 AM -- Presentation of House Bill 15-1344

The committee was called to order. A quorum was present. Representative Duran and Senator Sonnenberg, prime sponsors, presented House Bill 15-1344 pursuant to House Rule 50(a). The bill concerns the financing of state capital construction projects that are included in the National Western Center or Capitol Complex Master Plans, and, in connection therewith, authorizing the state to enter into lease-purchase agreements to finance facilities for Colorado State University that are included in the National Western Center Master Plan, creating the National Western Center Trust Fund, and creating a Capitol Complex Master Plan Implementation Fund as a funding source for projects that are included in the Capitol Complex Master Plan. Committee members received a brochure outlining the features of the proposed National Western Center (Attachment A), and copies of HB 15-1344 (Attachment B). Representative Duran explained the effect of the bill and discussed its need. Representative Duran responded to questions regarding the phasing of the project. Ms. Kori Donaldson, Legislative Council Staff, responded to questions regarding how the committee typically reviews projects financed using certificates of participation (COPs), and how the projects financed by HB 15-1344 differ from COPs that are periodically considered by the committee. Senator Sonnenberg responded to questions regarding the roles of the various stakeholders involved in the National Western Center portion of HB 15-1344. Mr. Kelly Leid, North Denver Cornerstone Collaborative, addressed questions about the phasing and financing of the project. He also discussed the functions of the new complex, and provided an overview of the facilities to be constructed at the new complex. Mr. Leid responded to further questions about the collaborative's interaction with the neighboring community on the National Western Center project, and the potential use of tax increment financing in conjunction with the project.

150414 AttachA.pdf

150414 AttachB.pdf

07:46 AM

Mr. Leid responded to questions regarding the positioning of the new National Western Complex within an urban renewal authority, and the timing of the completion of the project's first phase. He also discussed the layout of the initial facilities to be constructed under the project. Mr. Leid responded to questions regarding the role of state funding for the project. Representative Duran explained how the various facilities to be constructed under the bill will be presented to the committee, and referenced the use of COPs for capital projects. Representative Duran also addressed earlier questions about the impact of the project on neighboring communities. Discussion ensued on this point. Mr. Leid responded to questions regarding the potential economic impact of the National Western Center project.


BILL:	Presentation of House Bill 15-1344
TIME:	07:57:21 AM
MOVED:	Baumgardner
MOTION:	Favorably recommend House Bill 15-1344 to the House Committee on Agriculture pursuant to House Rule 50(a). The motion passed on a vote of 6-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Baumgardner	Yes
	Vigil	Yes

Final YES: 6 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

07:58 AM -- Colorado Mesa University Two-Year Cash List

Mr. Patrick Doyle, Vice President for Administrative Services and Finance, Colorado Mesa University, presented a new cash-funded project on its two-year projection of cash need: Pinon Hall Renovation. Committee members received copies of the revised two-year projection of cash need for the university, prepared by Legislative Council Staff (Attachment C). Mr. Doyle provided an overview of the project, and responded to questions regarding the source of cash funding for the project.

150414 AttachC.pdf


BILL:	Colorado Mesa University Two-Year Cash List
TIME:	08:00:49 AM
MOVED:	Brown
MOTION:	Approve the new project listed on the Colorado Mesa University two-year projection of cash need. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Baumgardner	Excused
	Vigil	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

08:01 AM -- Colorado State University Two-Year Cash List

Mr. Rich Schweigert, Chief Financial Officer, and Dr. Tony Frank, President, Colorado State University (CSU), presented four projects on the university's two-year projection of cash need, which require additional review under the Higher Education Revenue Bond Intercept Program. Committee members received the university's revised two-year projection of cash need (Attachment D), and four summaries describing requests from the university to borrow under the Higher Education Revenue Bond Intercept Program for the Medical Center project (Attachment E), the University Parking Garage project (Attachment F), the Biology Building project (Attachment G), and the South Campus Parking Lot project (Attachment H), all prepared by Legislative Council Staff. Committee members also received a listing of ongoing or proposed CSU capital projects, prepared by the university (Attachment I). Mr. Schweigert first provided an overview of the university's use of cash funds to construct facilities, as outlined in Attachment I, and the total amount of debt accrued to finance the projects. Dr. Frank provided some background on the history of capital construction at CSU, and the resources available to the university for capital construction. Ms. Donaldson provided an overview of the Higher Education Revenue Bond Intercept Program. Dr. Frank responded to questions regarding competition among higher education institutions for students, and the impact of capital construction and its associated costs on this market.

150414 AttachI.pdf

08:14 AM

Mr. Schweigert responded to questions regarding the overall debt load carried by CSU for cash-funded capital projects, and the impact of the projects being considered by the committee on this debt load. Dr. Frank addressed an earlier question about the use of student fees for capital construction at CSU. Discussion ensued regarding the potential for the state to be called on to cover a debt payment on behalf of CSU under the Higher Education Revenue Bond Intercept Program based on the university's overall debt load. Discussion followed regarding the financing of, and need for, the CSU Medical Center project. Dr. Frank responded to questions regarding the tuition and fee structure for CSU students, and the portion of fees used for facilities.


BILL:	Colorado State University Two-Year Cash List
TIME:	08:24:21 AM
MOVED:	Kefalas
MOTION:	Approve the new and revised projects listed on the Colorado State University two-year projection of cash need. The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Baumgardner	Excused
	Vigil	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

08:25 AM

Ms. Donaldson provided input on the votes required to approve the use of the Higher Education Revenue Bond Intercept Program.


BILL:	Colorado State University Two-Year Cash List
TIME:	08:25:37 AM
MOVED:	Kefalas
MOTION:	Approve the request from Colorado State University to borrow under the Higher Education Intercept Program on behalf of the South Campus Parking Lot project ($5,400,000 CF). The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Baumgardner	Excused
	Vigil	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	Colorado State University Two-Year Cash List
TIME:	08:26:13 AM
MOVED:	Kefalas
MOTION:	Approve the request from Colorado State University to borrow under the Higher Education Intercept Program on behalf of the Medical Center project ($58,981,491 CF). The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Baumgardner	Excused
	Vigil	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	Colorado State University Two-Year Cash List
TIME:	08:26:45 AM
MOVED:	Kefalas
MOTION:	Approve the request from Colorado State University to borrow under the Higher Education Intercept Program on behalf of the Biology Building project ($81,596,432 CF). The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Baumgardner	Excused
	Vigil	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	Colorado State University Two-Year Cash List
TIME:	08:27:20 AM
MOVED:	Kefalas
MOTION:	Approve the request from Colorado State University to borrow under the Higher Education Intercept Program on behalf of the University Square Parking Garage project ($37,522,060 CF). The motion passed on a vote of 5-0.
SECONDED:
		VOTE
	Becker K.	Yes
	Brown	Yes
	Kefalas	Yes
	Sonnenberg	Yes
	Baumgardner	Excused
	Vigil	Yes

Final YES: 5 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

08:28 AM

The committee adjourned.