UNC trustees sign off on financing to fund college of medicine

GREELEY — The University of Northern Colorado Board of Trustees unanimously approved documents that will allow the state to issue certificates of participation to fund the construction of the new College of Osteopathic Medicine in time for a fall 2026 opening.

The board essentially gave the go-ahead for the state to issue certificates of participation to fund $127.5 million of an expected $200 million cost to build the building on the site of the current Bishop-Lehr Hall. The college already has received $41 million from the state to put in escrow. The only question now is whether the state seeks to go on the market before Labor Day or afterward.

“This bill provides the funding, and today we’re taking a step of authorizing UNC leaders to proceed with that transaction,” Dale Pratt, vice president for finance and administration and chief financial officer at UNC, told the trustees in a special meeting Tuesday. “The way this transaction will work, is once all institutions are able to finalize the collateralization necessary for funding, and we’re doing that now, the preliminary official statement that will be issued and finalized to potential investors, … the issue will likely take place and finalized in either the first week of September or first week of October.”

UNC’s collateral to back its funding will be the College of Osteopathic Medicine facility itself, Pratt told the group.

The project was made possible by House Bill 24-1231, which created $247 million for four college projects across the state. The bill allocates $127.5 million toward construction, startup and accreditation expenses of UNC’s new college building, and the rest toward Colorado State University’s new veterinary school, and to fund construction of a Health Institute Tower at Metropolitan State University in Denver and renovation of the Valley Campus main building at Trinidad State College.

UNC has received $31 million from donors, including $25 million from The Weld Trust to support the project.

UNC’s new osteopathic school will enroll 150 medical students annually, with an inaugural class anticipated to start in fall 2026.

Once certificates of participation are sold, Pratt said, the first payment wouldn’t come until sometime in 2027, and that payment would be capped at $17.5 million.

“The bill caps payment at $17.5 million, and that’s derived from a previous certificate of participation that will be completed (on other projects) the last payment on that would just roll” into the new project, Pratt said.

Pratt said UNC will not be on the hook for any money coming out of its coffers, as the state’s general fund will be making those payments.“The funds will be transferred from US Bank back to the state treasurer; the treasurer will establish funds for all four projects,” Pratt said. “ … The UNC proceeds of $127.5 million will be designated in a fund with the (state) treasurer. The state will retain the funds in the treasurer’s office, and we’ll access that for reimbursement during the project.”