So How Broke Are Our State Governments- Well Arizona Is Going To Be Leasing Its Own State Buildings From Investors To Close A Budget Gap

You know the economy is bad when this is the best solution a state government can come up with to balance their budget.


The Arizona Republic
By Mary Jo Pitzl
State buildings to go on market next week

Arizona's state buildings will go on the market next week, as state officials look to raise $735 million to boost the state's depleted coffers.

The offer, which includes the state Coliseum, prisons, the headquarters of the Department of Public Safety and legislative buildings, will go on the market Tuesday and Wednesday, said Alan Ecker, a spokesman for the state Department of Administration.

Investors can buy certificates of participation in the buildings in $5,000 increments by working through the state's underwriters, Morgan Stanley and Citi. Ecker said the certificates, which are tax exempt, will likely carry an interest rate of 4 to 5 percent.

State officials say they're confident they can sell certificates for all of the buildings involved, based on the queries they received since the sale-leaseback was announced.

However, Ecker said there's no push to complete the entire sale-leaseback next week. If market conditions look favorable farther down the road, some of the sale may be delayed, he said.