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Analysis
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Summary
To approve standard State Building Authority
(SBA) lease agreements among the SBA, the State and the respective universities
and colleges for Capital Outlay projects as shown in the table below. These
properties are also conveyed to the SBA by the resolutions. Each of these
projects received planning, cost, and construction authorizations under
previous Capital Outlay budget acts. The projects are under construction.
Approval of these resolutions is the final
remaining legal requirement to allow the SBA to issue both short and
long-term debt instruments to finance the State's share of each project's
construction costs.
The Joint Capital
Outlay Subcommittee (JCOS) approved these resolutions, with
recommendation. The
Department of Management and Budget also recommends approval.
State Fiscal Impact
Legislative adoption of these resolutions
commits the State to annually pay rent to the SBA until its debt obligations
are fully satisfied. The cumulative annual GF/GP low-to-high rent payment
range of $8,833,000 to $11,244,000 is provided consistent with the
State Building Authority Act (PA 183 of 1964). The actual rental amount,
within or below the respective ranges, will be determined by an independent appraiser
when each project is completed. Payments to the SBA begin after the
long-term bonds have been issued.
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Project
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Total Authorized Project Cost
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State
Building Authority Funds
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GF/GP Rent Estimate on SBA Financing
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HCR 30 (Rep. Robert Jones). Western Michigan University – Brown Hall
Renovations & Addition. This project entails the renovation of this
38-year old, 55,500 sq. ft. instructional facility. This project received
cost/construction authorizations under PA 297 of 2005.
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$14,800,000
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$9,499,800
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$633,000 to $828,000
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HCR 31 (Rep. Miller). Macomb Community College – Health Science & Technology Classroom Building. This project entails
the construction of a 35,000 sq. ft. addition for the Health Sciences
Department. This project received cost/construction authorizations under
PA 297 of 2005.
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$12,000,000
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$5,999,800
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$404,000 to $528,000
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HCR 32 (Rep. Miller). Macomb Community College – Emergency
Services Training Facility. This project entails the construction of a
30,000 sq. ft. addition to theFireTrainingCenter and gun range. This project received
cost/construction authorizations under PA 45 of 2001.
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$8,683,000
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$3,272,300
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$218,000 to $285,000
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HCR 34 (Rep. Hood). Alpena Community College – Instructional
Addition & Renovation. This project consists of 3 components; a new
fine arts facility, renovated computer technology labs, and lab renovations
for natural and biological sciences. This project received
cost/construction authorizations under PA 297 of 2005.
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$4,105,500
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$1,667,300
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$111,000 to $145,000
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HCR 35 (Rep. Hood). State Facility
Preservation Projects, Phases I & II – Group E Special Maintenance
Projects. This
provides funding for 42 minor and major special maintenance projects
ranging in cost of $50,000 to $9.2 million. (Please refer to Exhibit A for
specific projects.)
Cost/construction authorizations were
provided under PA's 10 & 297 of 2005.
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$47,296,000
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$47,296,000
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$3,636,000 to $4,605,000
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HCR 37 (Rep. Warren). University of Michigan-Ann Arbor – Observatory Lodge
Renovations. This
project entails renovating a 1930's era, 30,000 sq. ft. facility to house
the Division of Kinesiology. This project received cost/construction
authorizations under PA 345 of 2006.
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$11,500,000
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$7,819,800
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$521,000 to $681,000
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HCR 44 (Rep. Hood). Department of
Information Technology – Public Safety Communications System Critical
Platform Upgrades. This project entails the construction of a new southeast
Michigan tower and
software/hardware upgrades to existing towers. This project received
cost/construction authorizations under PA 10 of 2005.
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$13,525,382
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$13,525,382
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$1,420,000 to $1,700,000
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HCR 45 (Rep. Hood). Department of
Management & Budget – Capitol Complex Renovations.This project entails
renovating and upgrading the Williams,Ottawa, Hannah, and Treasury buildings in downtown
Lansing. This project
received cost/construction authorizations under PA 237 of 2003.
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$27,563,300
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$27,563,200
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$1,890,000 to $2,472,000
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Totals
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$139,473,182
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$116,643,582
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$8,833,000 to $11,244,000
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Local Fiscal Impact
Community colleges typically finance 50% of
these project costs.
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