Florida Grand Jury Declines to Probe Lavish, Bond-Funded Courthouse

BRADENTON, Fla. — A north Florida grand jury decided Wednesday not to pursue an investigation into the construction and furnishing of a $48 million appeals court building that was financed with $33.5 million of bonds.

The panel decided not to question the intent of the state Legislature or the governor for financing the project, according to Leon County state attorney Willie Meggs, who presented the item to the grand jury for consideration.

The new courthouse for the First District Court of Appeal is under construction near the state capitol in Tallahassee. It has been criticized for being lavish in tough budgetary times because of the use of granite and fixtures such as 60-inch LCD televisions for each of the 15 judges and five for other offices.

The controversy prompted Florida Chief Financial Officer Alex Sink to order an audit a little over four weeks ago into funds spent by the state on the facility, including bond proceeds.

“We are going to be releasing the audit early next week,” Jayme O’Rourke, Sink’s deputy press secretary, said Thursday.

In a letter released Monday rebutting media criticism of the project, Chief Judge Paul Hawkes said the long-planned courthouse “was not the result of a 'last-minute’ or 'back-room’ deal,” as alleged by some Florida newspapers.

Hawkes recounted the process used to approve the project starting in 2005, when the Legislature approved spending $100,000 for a needs study. In 2006, lawmakers appropriated $1.8 million for studies of various sites.

In 2007, another $7.9 million was appropriated from general revenue to pay for impact fees, permitting, and professional fees. Lawmakers authorized the sale of $33.5 million of bonds.

In 2008, the Legislature appropriated another $5.5 million for higher-than-estimated impact fees, to add security features, and to ensure that the courthouse was LEED (Leadership in Energy and Environmental Design) certified, Hawkes said.

In response to criticisms about the use of more expensive granite, Hawkes countered that granite is durable, easy to maintain, and “far less expensive than any alternative” that eventually would need to be replaced over the long term.

The courthouse was planned to include video monitors, not TVs, and there are no plans for cable, satellite, or other means to access television stations, he said.

“In a respectful manner, judges from this court met with as many legislators and staff as possible, and we promoted the benefits of the project as we saw them,” Hawkes concluded. “We were successful in establishing with the Legislature, following proper procedures, that our court had a legitimate need for a functional courthouse to serve the people of Florida for the next century.”

The state sold $36.6 million of facilities pool revenue bonds in 2008 to finance most of the courthouse’s construction. The serial bonds mature from 2010 to 2038, with yields ranging from 2.33% with a 3.5% coupon in 2010 to 5.05% with a 5% coupon in 2023 to 5.7% with a 5.62% coupon in 2036. A $4.58 million term bond sold with a yield of 5.8% and a 5.75% coupon.

Bond proceeds provided $33.5 million for construction with the remainder being used for costs of issuance and a debt service reserve.

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