Date: 04/25/2006
Final
DOC Presentation on Financing of CSPII Project
COMMITTEE ON CAPITAL DEVELOPMENT
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08:04 AM
The committee came to order. A quorum was present.
08:04 AM -- Department of Corrections Presentation on Financing of Colorado State Penitentiary II Project
Mr. L.D. Hay, Director of Administration, Department of Corrections (DOC), Mr. Gary Golder, Director of Prisons, DOC, and Mr. Nate Eckloff, Managing Director, RBC Capital Markets, presented an update on the financing of the Colorado State Penitentiary II (CSPII) project. Committee members received a memorandum describing the financing of the project to date, prepared by Legislative Council Staff (Attachment A). Mr. Hay explained the DOC's need for high-custody prison bed space. He then explained the process by which the DOC moved forward with the CSPII project, from developing a program plan through the financing of the project by using certificates of participation (COPs). Committee members received an outline of this process, prepared by the DOC (Attachment B).
08:14 AM
Mr. Hay and Mr. Eckloff explained the status of the sale of the COPs for the CSPII project and the capitalized interest on the COPs. Mr. Golder responded to questions regarding the inmates to be housed at CSPII, the projected occupancy of the new facility, and the overall high-custody bed space need by the DOC. Mr. Hay responded to questions regarding the time line for the CSPII project and the anticipated number of employees needed for the facility. Mr. Eckloff explained the bond rating and payment schedule for the COPs. A discussion ensued regarding the purchase of bond insurance for the COPs.
08:31 AM
Mr. Hay explained the difference between the principal amount stipulated in CSPII's authorizing legislation and the new principal amount for the project. Mr. Hay then responded to questions about the anticipated bed space for CSPII and the configuration of the facility.