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Last Updated: Nov 5th, 2008 - 19:39:49 |
The future of the new Science Building is secure following the $230 million sale Oct. 23 of Certificates of Participation that will fund the construction.
The sale will fund the Science Building and construction on 12 additional projects at colleges and universities across Colorado.
Concerns that Science Building construction funds would run out began after the economic crisis hit in September, causing banks to stop lending money and led to rising interest rates. Many questioned whether the COP sales, and construction, would be delayed.
The successful sale of the COP ensures that construction will continue on track, with the new building slated for completion in 2009.
\COPs are similar to traditional bonds except the investors technically own the buildings and lease them back to the state until they are paid off. Once the leases are paid off, the state will take ownership of the buildings.
The COPs are backed by the state's revenue from mineral leases on federal lands.
The sale of the COPs was the latest of several roadblocks that have sprung up since construction on the Science Building began. Several months after ground was broke in December 2007, the state announced it could not fully fund the building as they had previously committed to do.
In May of 2008, new legislation passed by Gov. Bill Ritter provided a new source of funding, coming in part from money paid to the state from natural gas leases.
Another law allowed schools to borrow money using certificates of participation.
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