2021 Special Session I

Budget Bill - HB1800 (Chapter 552)

George Mason University

Item C-11

Item C-11

First Year - FY2021Second Year - FY2022
New Construction: Construct Institute for Digital Innovation (IDIA) and Garage (18482)$242,500,000$0
Fund Sources:  
SpecialFY2021 $82,000,000FY2022 $0
Bond ProceedsFY2021 $160,500,000FY2022 $0

A. Subject to the provisions of this act, the Governor and the General Assembly authorize George Mason University (Mason) to enter into a written agreement with a public or private entity to design, construct, finance, operate and maintain up to a 400,000 gross square foot mixed-use facility, currently identified as the Institute for Digital Innovation (IDIA), and the associated parking necessary to support research, innovation, and workforce development for the Commonwealth of Virginia. The project shall be consistent with the guidelines of the Department of General Services and comply with Treasury Board guidelines issued pursuant to § 23.1-1106 C.1. (d), Code of Virginia.

B. The Governor and the General Assembly further authorize George Mason University to enter into long-term leases with a private or public entity for all or a portion of the project. Mason shall identify any components of such an agreement that qualifies as a long-term lease, as defined by Generally Accepted Accounting Principles (GAAP), and report such leases to the Department of Accounts, the Department of the Treasury, and the Department of Planning and Budget. Any such agreement is subject to § 4-3.03 b.2. of this act. If any such agreement contemplates the lease of property in the possession or control of Mason, this item shall constitute the approval required by subsection B of § 2.2-1155, Code of Virginia, for the term of such lease to be in excess of 50 years, up to and including the useful life of the improvements to such property, provided that the Governor also approves such a term.

C. It is anticipated that the authorization provided in paragraphs A. and B. will generate funding totaling $82,000,000 toward the construction of the project in this Item.

D. The Virginia College Building Authority, pursuant to § 23.1-1200 et seq., of the Code of Virginia, is authorized to issue bonds in a principal amount not to exceed $84,000,000 plus amounts need to fund issuance costs, reserve funds, original issue discount, interest prior to and during acquisition or construction and for one year after completion thereof, and other financing expenses, to finance the capital costs of the project for which the appropriation in this Item is provided. Debt service on bonds issued under the authorization in this Item for funding from the Virginia College Building Authority shall be provided from appropriations to the Treasury Board.

E. This Item additionally authorizes the issuance of bonds in a principal amount not to exceed $76,500,000 plus amounts needed to fund issuance costs, reserve funds, and other financing expenses, including capitalized interest pursuant to Article X, Section 9(d), Constitution of Virginia. The amount indicated is hereby appropriated and reappropriated. The issuance of bonds shall be authorized pursuant to § 23.1-1106, Code of Virginia. In the event that the cost of the capital project shall exceed the amount appropriated therefore, the Director, Department of Planning and Budget, is hereby authorized, upon request, to approve an increase in appropriation authority of not more than ten percent of the amount designated, from any available nongeneral fund revenues, provided that such increase shall not constitute an increase in debt issuance authorization for the capital project. Furthermore, the Director, Department of Planning and Budget, is hereby authorized to approve the expenditure of all interest earnings derived from the investment of bond proceeds in addition to the amount designated. The interest on bonds to be issued for this project may be subject to inclusion in gross income for federal income tax purposes. This authorization does not imply a commitment of state funds for temporary construction financing. In the absence of such commitment, Mason may be responsible for securing short-term financing and covering the costs from other sources of funds.