Fiscal Analysis

state building authority lease

 

Bill/Sponsor

HOUSE CONCURRENT RESOLUTION 61(as introduced)/ Rep. R. Warren

House Committee

 

Appropriations

Analysis

Summary

Approves a standard State Building Authority (SBA) lease between the SBA, the State and the University of Michigan - Ann Arbor relative to its Student Activities Building project.   The property is also conveyed to the SBA.  This project received planning, cost, and construction authorizations under previous Capital Outlay budget acts and is currently under construction.

Legislative approval of the resolution, a statutory requirement, enables the SBA to issue debt instruments to finance the state's share of the project's construction cost.

 

The Joint Capital Outlay Subcommittee (JCOS) approved the resolution, with recommendation.  The Department of Management and Budget also recommends approval.

 

Fiscal Impact

Legislative adoption of the resolution commits the state to annually pay rent to the SBA until its debt obligations are fully satisfied.  The annual GF/GP high/low rental range of $394,000 to $516,000 is provided consistent with PA 183 of 1964. The actual true market rental amount, within or below the respective range, will be determined when the project is completed and has been independently appraised.

Total Authorized Project Cost

University Funds

State Funds

GF/GP Rental Range on SBA Financing

University of Michigan – Student Activities Building Project.  This project entails renovating this 50-year old, 110,000 sq. ft. facility that is primarily used for undergraduate student services.

Cost and construction authorizations were provided under PA 153 of 2006.

$8,500,000

$2,748,300

$5,751,700

$394,000 to $516,000

Local Fiscal Impact

None.

Analyst(s)

Al Valenzio

Analysis 12/05/07

                                                                                                                                                                                    Mitchell Bean, Director

                                                                                                                                                     124 N. Capitol Avenue, Lansing, MI 48909

                                                                                                                                               Phone: (517) 373-8080; Fax: (517) 373-5874

                                                                                                                                                                        http://www.house.mi.gov/hfa