A two-year legal battle that delayed $202 million in funding for a new University of Colorado medical school ended Monday – enabling CU to vacate its Denver medical campus by 2008.
The university is in the midst of a 10-year, $1.3 billion relocation of its Health Sciences campus to the former Fitzsimons Army Medical Center in Aurora.
Already completed on the site are a hospital, several outpatient treatment centers and a research tower. The Children’s Hospital is also building a new facility on the campus.
Those buildings were financed privately. The educational complex serving students in the medical, dental, nursing and pharmacy schools requires public funds.
The Colorado Supreme Court on Monday let stand a state appeals court ruling upholding the use of a pay-as-you-go funding source, called certificates of participation, by state and local government.
University officials have said they could not afford to build the medical school, library and additional research space without the certificates.
“We are anxious to move forward with this critical phase of the Fitzsimons project,” said Health Sciences Center chancellor Dr. James Shore.
The funding, Shore said, will enable the university to complete its project and cut the costs of maintaining two campuses.
In addition to clearing the way for the medical campus, the ruling will increase funding options for other public projects, said Beth McCann, deputy attorney general.
CU is slated to issue $202 million in certificates to a trustee investor by year’s end.
Starting in fiscal year 2007, the state will make 25 years of annual payments of $15.1 million, a total of $377.5 million.
Health Sciences Center officials agreed not to seek additional capital construction funding from the state for 10 years.
CU had planned to begin construction on the medical school in June 2004 and relocate by 2006.
Two years ago, a watchdog group – the Criminal Justice Reform Coalition – filed suit against the state.
It alleged lawmakers violated the state constitution by authorizing the certificates and by lumping into one bill the expansion of a state prison and the medical school project.
In April, an appeals court ruled in favor of the state, an opinion the Supreme Court chose to let stand Monday.
“We thought the lawsuit raised really important constitutional questions,” said coalition spokeswoman Christie Donner.
Completing the Health Science Center’s move is critical to the success of Fitzsimons and the growth of private pharmaceutical and biotechnology firms in the area, said Wendy Mitchell, Aurora Economic Development Council director.
“The public part of this will initially drive the private side,” Mitchell said. “If you don’t have that, it’s tough to recruit top-level researchers to the campus.”
Staff writer Marsha Austin can be reached at 303-820-1242 or maustin@denverpost.com.
