Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Finance topic
No spam. Unsubscribe anytime.
Greeley-Evans School District 6 approves $43 million COPs to finance new administration building
Summary
The board approved a resolution to issue approximately $43 million in certificates of participation (COPs) to finance a new administration building, collateralizing Winograd and Maplewood schools until the new building is completed; anticipated annual payments are roughly $3.1 million over a 25-year term.
The Greeley-Evans School District 6 Board of Education voted 5-0 to approve a resolution authorizing the execution of documents to finance construction of a new administration building through certificates of participation (COPs).
District finance staff told the board the financing package would total $43,000,000 with a 25-year repayment term and level annual payments. "The total amount of the financing will be $43,000,000 over a term of 25 years," the finance director said during the presentation. The plan uses certificates of participation — a lease-based financing vehicle that does not require voter approval — and would collateralize two district-owned buildings, Winograd and Maplewood, with a combined net pledged value cited at about $39,700,000.
Legal counsel reviewed the documents the board was asked to authorize: a site lease, a lease purchase agreement, an indenture of trust, a primary official statement for investors, and a board resolution to authorize staff to complete necessary follow-up documents. Counsel said the site lease would run until 2060 and that US Bank would act as trustee and leaseholder under the structure.
District finance staff said pricing would go to market on Nov. 5, with an estimated annual repayment of approximately $3,100,000 and an expectation it would not exceed $3,250,000 based on current assumptions. Projections cited in the presentation estimated $33,800,000 in principal and roughly $76,800,000 in interest under one modeled scenario, with payments beginning in December 2026 and continuing through Dec. 1, 2050. The district indicated that once the new administration building is finished (as early as February 2028 in projection), Winograd and Maplewood would be released as collateral and the new building would be substituted.
Board members noted the rate and annual-payment figures are estimates: one trustee highlighted that the 6% rate referenced in briefing materials represented a maximum and that rates might be lower (possibly down to about 5.5%), and that the board could elect to accelerate payoff in 10 years to reduce interest costs.
The motion to approve the resolution authorizing execution and delivery of the site lease, lease purchase agreement and related documents passed on a recorded vote of 5-0. Directors Azari, Bentley, Campos, Matthews and Norwood recorded aye votes.
Next steps: District staff will take the transaction to market for pricing on Nov. 5, finalize documents with the trustee and report back to the board as required; the board will be asked to approve any material changes if required by the authorization language.
