Date: 02/09/2006
Final
CBI Presentation on Financing for West Slope Lab
COMMITTEE ON CAPITAL DEVELOPMENT
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08:24 AM -- Presentation by CBI on Financing for the Western Slope Lab
The committee was called to order. A quorum was present.
08:25 AM
Mr. Robert Cantwell, Director of the Colorado Bureau of Investigation (CBI), Mr. Pete Mang, Deputy Director for CBI, Mr. Jonathan Lurie, Budget Analyst, CBI, and Mr. Steven Jeffers, Stifel Nicolaus & Company, presented an overview of financing options for a new Western Slope CBI laboratory. The committee was briefed on the issue on January, 26, 2006. Mr. Cantwell introduced his colleagues, and Mr. Mang provided opening comments on the project. Mr. Lurie explained the details of the different financing options for the project contained in a handout (Attachment A), including a lease-purchase option, operating lease option, and purchase option, and provided the handout to committee members. Mr. Lurie discussed the reasons for selecting the options shown in Attachment A. Mr. Lurie responded to questions regarding the proper course for moving forward with the project and which state fund would pay for the project. Mr. Lurie and Mr. Jeffers addressed questions regarding the cost of building ownership at the end of a lease term, the inherent value of leasing options, and further financing details for the different options. A discussion ensued regarding the price of the facility per square foot and costs associated with furnishing the facility. A discussion followed regarding the location of the new facility and problems associated with the current CBI facility.
08:49 AM
Mr. Mang responded to questions regarding the programs to be housed in the new facility. Mr. Lurie responded to questions regarding the CBI's current leasing practices. Further discussion ensued regarding the benefits and demerits of the various financing options for the project, and the current capital budget situation. Mr. Lurie and Mr. Jeffers agreed to provide analysis for other financing options for the new facility, including the use of Certificates of Participation. Mr. Lurie explained the reason for the large increase in square footage for the new CBI facility versus the current facility. Senator Bacon indicated that the committee would revisit the project at a future meeting.
09:05 AM
The committee adjourned.