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$2B Bioscience Park Gets Go-Ahead

AURORA, CO-Forest City agrees to develop a 160-acre chunk of the former Fitzsimons Army Medical Center with 3.5 million sf of office and R&D space for the life sciences industry.

By Brian K. Miller | Updated on September 27, 2006

AURORA, CO-Forest City Enterprises and directors of the Fitzsimons Redevelopment Authority has signed a 200-page agreement detailing the development of a 3.5-million-sf bioscience park on a piece of the former Fitzsimons Army Medical Center here. FRA executive director Jill Farnham tells GlobeSt.com that the estimated $2-billion development calls for the first structures to be built by the end of 2008 and for the project to be completed over the next 30 years.

The park will rise immediately adjacent to the University of Colorado’s new Health Sciences Center, which covers some 230 acres of the former medical center site and includes two university hospitals, offices and research facilities. The Fitzsimons Redevelopment Authority controls the remaining 300 acres of the medical center, 160 acres of which will be used for the bioscience park. A portion of the park will be used to provide facilities for companies conducting private research associated with that of the University, including its Webb-Waring Institute for Cancer, Aging, and Antioxidant Research

As per the agreement, Forest City will lease the ground from the FRA on a long-term basis (75 years). Instead of standard lease payments, Forest City will give the FRA a percentage of the property’s net cash flow. In addition, Forest City will make annual option payments in order to secure its exclusive right to develop the land. Farnham tells GlobeSt.com that the FRA’s net cash flow take starts at 10% and that the option payments start at $250,000 and jump to $450,000 in four years. It isn’t yet clear how much 10% of the development’s cash flow might mean in dollars, Farnham says.

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