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Fiscal Analysis StateBuilding Authority Leases 9/11/2007 |
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Bill/Sponsor |
HCR's 30, 31, 32, 34, 35, 37, 44 & 45 Rep's. M. Hood III, et al |
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House Committee |
Appropriations |
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Analysis |
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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Local Fiscal Impact Community colleges typically finance 50% of these project costs. |
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Analyst(s) Al Valenzio |
Mitchell Bean, Director - House Fiscal Agency 124 N. Capitol Avenue, Lansing, MI 48909 Phone: (517)373-8080, Fax: (517)373-5874 http://www.house.mi.gov/hfa |
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TO: Members of the Joint Capital Outlay Subcommittee
FROM: Representative Morris Hood III, Chairman
RE: Meeting Number 9
A meeting has been scheduled for Thursday, September 6, 2007 at 9:00 a.m. in the House Appropriations Committee Room, 3rd Floor, Capitol Building.
Pursuant to the Americans with Disabilities Act, disabled individuals needing special services to fully participate in the meeting may contact the Chairman (phone number listed above) to request the necessary assistance.
Individuals wishing to bring written testimony need to supply a minimum of 30 copies for distribution.
AGENDA
1. APPROVE MINUTES OF MEETING NO. 8 – June 7, 2007
Required Action: Approval of minutes
2. CONCURRENT RESOLUTIONS TO CONVEY PROPERTY AND APPROVE SBA LEASE AGREEMENTS – VARIOUS PROJECTS
DMB letter date(s): 5/8/07, 5/21/07, 6/12/07, & 7/17/07
The State Building Authority (SBA) requests Legislative approval of 9 concurrent resolutions that authorize lease agreements among itself, the State, and the respective colleges and universities for projects authorized for planning and construction in previous Capital Outlay budget acts. Legislative approval of each resolution is a statutory requirement that allows the SBA to issue debt to finance the State share of the construction cost. The resolutions also convey the properties to the SBA who will continue to hold title until the SBA debt obligations are satisfied. All projects are currently under construction.
The GF/GP rental range identified below is consistent with P. A. 183 of 1964. A specific true rental amount, within or below the range, will be determined by an appraiser when each facility is complete. Legislative approval of each resolution commits the State to annually pay rent on the facility until the SBA debt obligation is satisfied. Combined, the 9 annual rent payments are estimated to be $9.3 to $11.9 million.
|
HCR/Institution/Project |
Total Authorized Project Cost |
State Building Authority Funds |
GF/GP Rent Estimate on SBA Financing |
|
HCR 30. 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. |
$14,800,000 |
$9,499,800 |
$633,000 to $828,000 |
|
HCR 31. 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. |
$12,000,000 |
$5,999,800 |
$404,000 to $528,000 |
|
HCR 32. Macomb Community College – Emergency Services Training Facility. This project entails the construction of a 30,000 sq. ft. addition to the Fire Training Center and gun range. This project received cost/construction authorizations under PA 45 of 2001. |
$8,683,000 |
$3,272,300 |
$218,000 to $285,000 |
|
HCR 34. 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. |
$4,105,500 |
$1,667,300 |
$111,000 to $145,000 |
|
HCR 35. 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. |
$47,296,000 |
$47,296,000 |
$3,636,000 to $4,605,000 |
|
HCR 36. Jackson Community College – Health Programs Expansion & Information Commons. This project entails the construction of a 56,900 sq. ft. Information Technology Center and renovating nearly 17,000 sq. ft. of instructional space in Whiting Hall. This project received cost/construction authorizations under PA 297 of 2005. |
$17,300,000 |
$7,499,800 |
$505,000 to $660,000 |
|
HCR 37. 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. |
$11,500,000 |
$7,819,800 |
$521,000 to $681,000 |
|
HCR xx. 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. |
$27,563,300 |
$27,563,200 |
$1,890,000 to $2,472,000 |
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HCR xy. 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. |
$13,525,382 |
$13,525,382 |
$1,420,000 to $1,700,000 |
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Totals |
$156,773,182 |
$124,143,382 |
$9,338,000 to $11,904,000 |
Required Action: Approve/Disapprove concurrent resolutions that convey properties to the State Building Authority, and that approve leases among the SBA, State, and the affected institutions.
3. CONCURRENT RESOLUTION TO AUTHORIZE A PROJECT COST INCREASE – JACKSON COMMUNITY COLLEGE – HEALTH PROGRAM EXPANSION & INFORMATION COMMONS PROJECT
DMB letter date(s): 6/29/07
The Department of Management and Budget and Jackson Community College requests subcommittee approval of HCR xx to increase the total cost of the partially State funded project entitled the Health Programs Expansion and Information Commons Project. The increase amounts to $800,000 and will be completely financed by the institution. It represents an increase of 4.6% on the total project cost.
As outlined in the DMB letter, the college attributes unforeseen electrical, plumbing, and mechanical system expenses associated with a project scope change which caused the higher cost. The subcommittee approved the project scope increase on March 15, 2007 with the belief that it was cost-neutral. As more detailed planning has occurred, this assumption proved to be inaccurate.
This project was given cost and construction authorizations under PA 297 of 2005. Additionally, SCR 52 was passed by the Legislature in December 2006 which authorized a project cost increase of $800,000 that was also completely financed by the institution.
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Fund Source |
Current Authorized Project Cost |
Requested Change |
Revised Authorized Project Cost |
|
State |
$7,500,000 |
$0 |
$7,500,000 |
|
Jackson CC |
$9,800,000 |
$800,000 |
$10,600,000 |
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Totals |
$17,300,000 |
$800,000 |
$18,100,000 |
Required Action: Approve/Disapprove concurrent resolution no. xx that authorizes a project cost increase
4. USE AND FINANCE STATEMENT – UNIVERSITY OF MICHIGAN – ANN ARBOR
DMB letter date(s): 8/2/07
The Department of Management and Budget and the University requests subcommittee approval of a Use and Finance Statement for a self-funded project as described below. Subcommittee approval allows the project to commence, but does not directly commit State funds for construction, maintenance, or operational costs.
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Project |
Cost |
Funding Source |
Operating Costs Impact |
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Ingalls Substation to Wall Street Utility Duct Bank. This project entails the installation of a new electrical power duct bank from the Ingalls substation that will also accommodate University telecom cables. |
$3,800,000 |
Information Technology Central Services and Utility funds |
NA |
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Required Action: Approve/Disapprove Use and Finance Statement described above with the understanding that State funds will not be directly used for any aspect of the project.
5. USE AND FINANCE STATEMENT – WAYNE STATE UNIVERSITY
DMB letter date(s): 8/23/07
The Department of Management and Budget and the University requests subcommittee approval of a Use and Finance Statement for a self-funded project as described below. Subcommittee approval allows the project to commence, but does not directly commit State funds for construction, maintenance, or operational costs.
|
Project |
Cost |
Funding Source |
Operating Costs/Year |
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Mazurek Medical Education Commons. This entails new construction of 53,000 sq. ft. and renovating 69,000 sq. ft. of space to provide more Medical School classroom and clinical space. This includes 6 large classrooms, a large flex-classroom that can serve as an auditorium, conference rooms, 18 patient examination rooms, and a 4-station patient simulation suite. Also included is an elevated pedestrian bridge connecting the Shiffman Medical Library to Scott Hall (WSU's only medical instructional building). |
$35,000,000 |
University GF bonds (14%) & private donations (86%) |
$213,350, First year |
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Required Action: Approve/Disapprove Use and Finance Statement described above with the understanding that State funds will not be directly used for any aspect of the project.
6. USE AND FINANCE STATEMENT – MUSKEGON COMMUNITY COLLEGE
DMB letter date(s): 8/23/07
The Department of Management and Budget and the College requests subcommittee approval of a Use and Finance Statement for the self-funded project described below. Subcommittee approval allows the project to commence, but does not commit State funds for construction, maintenance, or operational costs.
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Project |
Cost |
Funding Source |
Operating Costs Impact |
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Student Services One-Stop. Project entails renovating some 35,000 sq. ft. of space in the Main Building to centralize all student services such as admissions, financial aid, testing, counseling, and etc. |
$3,200,000 |
College bond proceeds |
$146,000 - $152,000 |
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Required Action: Approve/disapprove use and finance statement with the understanding that State funds will not be directly used for any aspect of the project.
Adjournment
Attachment
C: Interested Parties
EXHIBIT A
Department of Management and Budget
State Facility Preservation Projects - Phases I and II
Group E
Special Maintenance Projects
|
Project |
Cost (1) |
Building |
Agency |
Completion/ |
Architect |
Contractor |
|
Grand Rapids Forensic Lab Floor Replacement |
$244,000 |
Forensic Lab |
MSP |
Complete 4/1/07 |
N/A |
Trust Thermal Abatement |
Variable Freq. Drives, Equipment Purchase and Install |
$400,000 |
Ottawa |
Various |
4/1/2008 |
N/A |
Air Flow Equipment PO Box 8677 Kalamazoo, MI 49003 |
|
Basement Storefront |
$50,000 |
Mason |
Various |
6/1/2007 |
Century A/E 168 Louis Campau Promenade NW Grand Rapids, MI 49503 |
Moore Trosper Construction
Co., Inc. |
|
Basement Renovation |
$1,450,000 |
Mason |
Various |
8/1/2008 |
Century A/E 168 Louis Campau Promenade NW Grand Rapids, MI 49503 |
Moore Trosper Construction
Co., Inc. |
|
GR Tunnel Replacement |
$109,000 |
State Office Bldg |
Various |
6/1/2007 |
Schley Architects P.O. Box 19640 Kalamazoo, MI 49019-0640 |
Rivertown Contractors 0-608 Quincy Street SW Grandville, MI 49418 |
|
GR ER Distribution Switch |
$72,000 |
State Office Bldg |
Various |
Complete |
GRP Engineering, Inc. 660 Cascade West Parkway SE Suite 65 Grand Rapids, MI 49546 |
Powertech Services, Inc. 4095 S. Dye Road Swartz Creek, MI 48473-1570 |
|
HVAC Controls |
$2,850,000 |
Huron Valley Complex |
DOC |
3/1/2008 |
Wolf Wineman 30500 Northwestern Highway Suite 100 Farmington Hills, MI 48334 |
Building Automated Systems and Services 6260 18 1/2 Mile Road Sterling Heights, MI 48314 |
|
Women's Expansion |
$1,178,000 |
Huron Valley Complex |
DOC |
8/1/2007 |
Wolf Wineman 30500 Northwestern Highway Suite 100 Farmington Hills, MI 48334 |
Baseline Constructors, Inc. 20096 Brown Drive Chelsea, MI 48118 |
|
Woodland Center Dock Enclosure |
$134,000 |
Maxey |
DHS |
Complete |
Tower, Pinkster, Titus Assoc, Inc. 1000 S. Burdick Street Kalamazoo, MI 49001-2734 |
K&V Construction 11399 Lisa Lori, P.O. Box 638 South Lyon, MI 48178 |
|
MSI Laundry/Warehouse |
$3,532,000 |
Parnall |
DOC |
9/1/2007 |
Giffels Associates, Inc. 25200 Telegraph Road Southfield, MI 48034-2599 |
Adams Building Contractors 3300 Yukon Drive Jackson, MI 49201 |
|
Energy Conservation Measures |
$5,999,000 |
Various |
Various |
12/1/2007 |
Cochrane Supply & Engineering, Inc. 30303 Stephenson Hwy Madison Heights, 48071-1633 |
Granger Construction Company 6267 Aurelius Road Lansing, MI 48909 |
|
Replacement of Pipe Insulation |
$176,000 |
Michigan Career & Technical Institute |
DLEG |
3/1/2008 |
Materials Testing Consultants 693 Plymouth Avenue, NE Grand Rapids, MI 49505 |
Materials Testing Consultants 693 Plymouth Avenue, NE Grand Rapids, MI 49505 |
|
HVAC Replacement |
$358,000 |
1st Dist. HQ |
MSP |
Complete |
Century A/E 168 Louis Campau Promenade NW Suite 200 Grand Rapids, MI 49503-2638 |
Kebler Plumbing and Heating Company 10444 W. Grand River Grand Ledge, MI 48837 |
|
Roof/Lighting & Misc. |
$1,360,000 |
Capitol Bldg. |
Legis. |
1/1/2008 |
Quinn Evans 219 1/2 N. Main Street Ann Arbor, Michigan 48104 |
Christman Company 408 Kalamazoo Plaza Lansing, MI 48933 |
|
Roof Replacement |
$350,000 |
West Shoreline |
DOC |
6/30/2007 |
Professional Services Industries, Inc. 1000 N. Opdyke Rd. Suite C |
Streng Construction 7481 Chesaning Road Chesaning, MI 48616 |
|
Roof Replacement |
$650,000 |
Grand Tower |
DHS |
Complete |
Professional Services Industries, Inc. 1000 N. Opdyke Road. Suite C Auburn Hills, MI 48326 |
Mid Michigan Roofing, LLC 3232 Enterprise Drive, P.O. Box 5797 Saginaw, MI 48603-0797 |
|
Renovate Williams Complex |
$195,000 |
Adrian Training School |
DHS |
Complete |
Dangerous Architects PC 104 South Main Street Chelsea, MI 48118 |
Carrier Construction Co, Inc. 4774 West Hickory Road Hickory Corners, MI 49060 |
|
Switchgear/Motor Controls |
$2,328,000 |
Capitol Complex |
Various |
1/1/2008 |
Radio North LLC 2682 Garfield Rd N Suite 22 Traverse City, MI 49686 |
Swan Electric Co., Inc. 6133 Aurelius Rd. Lansing, MI 48911 |
|
Cooling Tower |
$582,000 |
Joint Lab |
Complete |
Fishbeck Thompson Carrier & Huber, Inc. 1515 Arboretum Dr. SE Grand Rapids, MI 49546 |
Moore Trosper Construction Co., Inc. 4224 Keller Road. Holt, MI 48842 |
|
|
Window System |
$1,500,000 |
Treasury Bldg. |
Treas. |
10/1/2007 |
George Covalle Architects & Assoc., Inc. 2266 Springport Suite C Jackson, MI 49202 |
Omega Development Corp. 24663 Mound Road Warren, MI 48091 |
|
AHU Replacement |
$9,233,000 |
VanWagoner |
MDOT |
7/1/2007 |
Engineering Applications 815 Coolidge Road Suite 307 Lansing, MI 48912 |
Shaw Winkler 4910 Dawn Avenue East Lansing, MI 48823 |
|
Administration Bldg Roof |
$175,000 |
Caro Center |
DCH |
Complete |
Grainger Associates, Inc. 307 East Third Street Flint, MI 48502 |
Thomas Roofing Company 6351 W. Sixth Street P.O. Box 129 Cass City, MI 48726 |
|
Repair Exterior |
$99,000 |
Nokomis |
DHS |
10/1/2007 |
John Dziurman Architects LTD 1000 W. University Dr. Suite 315 Rochester, MI 48307 |
Graham Construction Corp 3399 Fashion Square Blvd Saginaw, MI 48603 |
|
Roof Replacement |
$501,000 |
Parnall |
DOC |
10/1/2007 |
Professional Services Industries, Inc. 1000 N. Opdyke Road. Suite C Auburn Hills, MI 48326 |
Quality Roofing Inc. 6201 Earhart Rd Ann Arbor, MI 48105 |
|
Roof Replacement |
$900,000 |
Ryan |
DOC |
10/1/2007 |
Professional Services Industries, Inc. 1000 N. Opdyke Road. Suite C Auburn Hills, MI 48326 |
Quality Roofing Inc. 6201 Earhart Road Ann Arbor, MI 48105 |
|
Law Library Relocation |
$850,000 |
Library & Historical Center |
HAL |
9/1/2007 |
Capital Consultants Inc. 725 Prudden Street Lansing, MI 48906 |
The Casper Corp 24081 Research Drive Farmington Hills, MI 48335 |
|
Sprinklers/Fire Alarm |
$963,000 |
Maxey |
DHS |
8/1/2007 |
MEP Engineers LLC 37735 Enterprise Court Suite 100 Farmington Hills, MI 48331 |
Wolverine Fire Protection 8067 N. Dort Hwy Mt. Morris, MI 48458 |
|
Roof Replacement |
$244,000 |
Baraga |
DOC |
4/1/2007 |
Hitch Inc PC 46479 US 41 Houghton, MI 49931 |
McGrath Roofing Inc. 401 E. Sharon Avenue Houghton, MI 49913 |
|
Roof Repairs/Replacement |
$301,000 |
Jacobetti Vets. Home |
DMVA |
8/1/2007 |
Timberland Engineering Inc 809 Delta Avenue Gladstone, MI 49837 |
Bell Roofing Co. 1916 Enterprise Street Marquette, MI 49855 |
|
Valves in Underground Water |
$138,000 |
School for the Deaf & Blind |
DOE |
Complete |
Spicer Group Inc PO Box 1689 Saginaw, MI 48605 |
Conex Inc. G-4376 Beecher Road Flint, MI 48532 |
|
Renovations |
$163,000 |
School for the Deaf & Blind |
DOE |
5/30/2007 |
John Tagle Assoc Inc 5455 Corporate Drive Suite 308 Troy, MI 48098 |
Cedroni Assoc Inc. 5639 Auburn Road Utica, MI 48042 |
|
HVAC and Windows |
$1,100,000 |
Livonia Lab |
MSP |
6/30/2007 |
Carter & Burgess Inc 30800 Telegraph Road Suite 4900 Bingham Farms, MI 48025 |
Reliance Building Co 26200 Town Center Drive Suite 195 Novi, MI 48375 |
|
Fire Alarm System |
$350,000 |
Treasury Bldg. |
State |
9/30/2007 |
Capital Consultants Inc 725 Prudden Street Lansing, MI 48906 |
RM Electric Inc. 16037 Grove Road Lansing, MI 48906 |
|
Fire System Installation |
$230,000 |
Vehicle & Travel Services |
DMB |
9/30/2007 |
Capital Consultants Inc 725 Prudden Street Lansing, MI 48906 |
Quality Electric 2345 Jarco Drive Holt, MI 48842 |
|
Plaza Repair |
$1,117,000 |
Library & Historical Center |
HAL |
9/1/2007 |
DLZ Michigan inc 1425 Keystone Avenue Lansing, MI 48909 |
Kares Construction Co Inc 4815 Lansing Road Charlotte, MI 48813 |
|
Diesel Tank Replace & Remove |
$415,000 |
Flint SOB |
Various |
12/1/2007 |
Professional Services Industries, Inc. 3120 Sovereign Drive Suite C Lansing, MI 48911 Orion Engineering Co Inc. 245 W. Michigan Jackson, MI 49201 |
Graham Construction Corp 3399 Fashion Square Blvd Saginaw, MI 48603 |
|
AHU Replacement |
$417,000 |
General Services Bldg. |
DMB |
12/1/2007 |
Byce & Associates Inc. 487 Portage Street Kalamazoo, MI 49007 |
Kebler Plumbing and Heating Company 4295 W. Saginaw Hwy Grand Ledge, MI 48837 |
|
Lighting Upgrades |
$51,000 |
Photo Lab |
MDOT |
Complete |
Clark-Trombley-Randers 6105 W. St. Joe Suite 200 Lansing, MI 48917 |
Miars Electric Inc 1101 Lipsey Dr Charlotte, MI 48813 |
|
Fire System Upgrades |
$3,070,000 |
Various |
Various |
5/1/2008 |
Wolf Wineman 30500 Northwestern Hwy Suite 100 Farmington Hills, MI 48334 |
Delta Electric Contractors of Lansing PO Box 80980 Lansing, MI 48908 Hazar-Bestos Corp. 2170 Apollo Dr. Lansing, MI 48906 RM Electric Inc. 16037 Grove Rd. Lansing, MI 48909 Taunt Electric PO Box 153 Gladwin, MI 48624 |
|
GR Replace Boiler |
$587,000 |
St. Office Bldg. |
Various |
1/1/2008 |
Schley Architects PO Box 19640 Kalamazoo, MI 49019-0640 |
Diversified Mechanical 844 W Rivert Center Drive Comstock, MI 49321 |
|
Window/Drip Flashing |
$500,000 |
Lottery Bldg. |
Lottery |
6/1/2007 |
Professional Services Industries, Inc. 1000 N. Opdyke Road. Suite C Auburn Hills, MI 48326 Byers DC Detroit Inc. 5715 Rivard Street Detroit, MI 48211 |
Neyer, Tiseo & Hindo LTD 4635 44th ST SE Suite C180 Grand Rapids, MI 49512 Hazar-Bestos Corp 2170 Apollo Drive Lansing, MI 48906-2701 |
|
Sewer & Drain |
$2,375,000 |
Cass Bldg. |
Various |
7/1/2008 |
Bernath Coakley Assoc, Inc. 4104 W. St. Joe Lansing, MI 48917 |
Moore Trosper Construction Co., Inc. 4224 Keller Road Holt, MI 48842 |
|
Total Group E |
$47,296,000 |
(1) Projected