Board approves $43 million certificates of participation to finance new administration building

The Greeley‑Evans School District 6 Board of Education on Oct. 27 approved a resolution authorizing the execution of a site lease, a lease‑purchase agreement and related documents to finance a new district administration building through $43 million in certificates of participation (COPs).

District finance staff told the board COPs allow the district to finance the project without voter approval by leasing district property to a trustee and leasing it back. Miss Haidock, the district’s finance director, told the board the financing amount is $43,000,000 over a 25‑year term with level annual payments; the preliminary estimate of annual payments is about $3,100,000 and district staff do not expect the payment to exceed $3,250,000 once bonds are priced Nov. 5.

The district will pledge two existing properties, Winograd and Maplewood, as collateral with a net pledged value stated as $39,700,000 until the new administration building is finished and substituted as collateral. The district plans to substitute the new building for those schools as collateral once the administration building is complete and occupied. The presentation said payments would be subject to annual appropriation and the documents include language to comply with TABOR requirements.

Nate Fall, the district’s legal counsel, reviewed the package of documents included in the transaction: a site lease, the lease‑purchase agreement, an indenture of trust and an official statement for potential investors. Fall said the indenture sets the trustee’s duties and limitations and that the official statement provides district financial information for investors.

Board members noted the district’s ability to refinance or pay the COPs early. Director Campos emphasized that the rate discussed in the work session was a maximum of 6 percent and that market pricing might yield a lower rate (staff mentioned a possibility of about 5.5 percent). Campos also noted the district could choose a shorter payoff schedule to reduce interest paid.

The motion to approve the resolution passed 5–0.