CSU board approves on-campus stadium
DENVER After three years of often divisive public discussion, CSU President Tony Frank received formal approval Friday to move forward with plans to build a new multi-use stadium on campus that he believes will be open for the 2017 football season.
Colorado State University's Board of Governors, meeting at the school's Denver Center, approved the controversial project by an 8-0 vote after more than four hours of presentations, public comment and discussion among board members. Board member Joseph Zimlich of Fort Collins offered a dissenting opinion during the discussion by board members prior to the vote, fearing the financial impact it could have on students. But he abstained from voting rather than voting against the project.
Frank's recommendation is to borrow the $195 million through the sale of revenue bonds that he had proposed for a scaled-down or "phased-in" stadium, but to build the full $220 million facility with seating for 36,000 using money already pledged by donors to make up the difference.
It's a hybrid of two of the four options that he wanted to analyze further before moving forward, with the university owning and operating the facility. CSU couldn't find anyone willing to enter into a public-private partnership and willing to provide favorable interest rates while still allowing the university to maintain complete control over programming at the facility and ownership of the land the facility will sit on.
"I think the risk profile is essentially the same," Frank said afterward. "I think we've gone through all the work, and I think that's a better product for the institution. …. I just think if you compare the costs on the two projects, and you compare the risk profiles, the difference in products at the end is substantial I believe, but the difference in the risk profile in that is not much different."
Frank hopes to bring finance and program plans to the Board of Governors for approval at its Feb. 4-6 meetings at the CSU-Global campus in Greenwood Village. Financial estimates he presented to the board showed annual bond payments of $12.1 million on a $195 million debt and $13.7 million on a $220 million debt. Revenue projections for the new stadium range from a low of $9.8 million a year, nearly three times the $3.6 million CSU earns annually from Hughes Stadium, to as much as $35.5 million a year in the final year payments would be due under a 30-year financing plan.
Construction can't begin any sooner than October 2015 because of ongoing research projects at the Plant Environmental Research Center, which will have to be relocated. But Frank said it's "very likely" the new stadium on the southwest side of the school's main campus will open in time for the 2017 football season.
"I'm gratified by the board's support, and I believe it's a great decision for the university," Frank said afterward. "But now the hard work really starts. … Now we've got to go about all the business of making this live up to all its expectations and live up to its promise."
Eighteen people spoke in facvor of the project, and 17 spoke against it during two hours of public comment prior to the board's vote.
Members of Save Our Stadium Hughes, a grass-roots organization that formed in opposition of the stadium project, weren't sure if they were done fighting the project yet or not. The other two options that had been explored over the previous two months involved renovations to Hughes Stadium, CSU's existing football stadium. Hughes, located 3 miles west of the university's main campus, has 32,500 seats and opened in 1968.
"We've been at this for three years now; our people are tired," founder Bob Vangermeersch said.
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