CO HB1234

State Treasurer authorized to execute a lease-purchase agreement for up to 20 years to purchase an office facility for the Department of Agriculture with a principal amount not to exceed $6,566,512 plus administrative, monitoring, and closing costs and interest.

Department of Agriculture's eight divisions currently scattered across multiple locations will be consolidated into one facility (except Colorado State Fair) to improve operational efficiency, eliminate communication delays, and reduce redundant leasing costs.

Agriculture management fund will finance initial costs including escrow, furniture, and moving expenses, with proceeds from the sale of the inspection and consumer services division facility also contributing toward consolidation costs.

Consolidation projected to save $156,367 in general fund money in fiscal year 2013-14 and $178,105 in fiscal year 2014-15 through reduced operating expenses and lease space costs.

Lease-purchase agreement obligations subject to annual general assembly appropriation and do not constitute state debt under Colorado law; state may receive fee title to property and reduce lease term through prepayment.