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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
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, or some cases completed
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 Department of Management and Budget
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 $7,285,000 to $9,386,000 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 90 (Rep. R. Dean). State Facility
Preservation Projects, Phases I & II – Group E Special Maintenance
Projects (Revised). HCR 35 of 2007 provided a total authorized cost of
$47,296,000; while HCR 81 of 2008 decreased it by $9,233,000. As a result
the new total project cost is $38,063,000. This resolution authorizes a
project cost increase of $900,000 due to higher than anticipated costs of
the HVAC project at the Huron Valley Correctional Complex.
Cost/construction authorizations were
provided under PA's 10 & 297 of 2005.
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$38,963,000
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$38,963,000
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$3,083,000 to $3,905,000
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HCR 91 (Rep. M. Simpson). Egeler
Correctional Facility - Fire Safety Improvements. This provides
funding for federal court ordered and approved fire safety improvements of
cell blocks 1, 2, and 3 as well as housing units A and B.
Cost/construction authorizations were
provided under PA 345 of 2006.
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$8,300,000
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$8,299,900
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$601,000 to $773,000
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HCR 92 (Rep. B. Caul). Central Michigan University – Education & Human Services Building. This project entails
the construction of a new 141,000 sq. ft. instructional facility to support
academic programs such as Education, Child Development, and Human
Development.
This project received cost/construction
authorizations under PA 345 of 2006.
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$50,000,000
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$37,499,800
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$2,572,000 to $3,363,000
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HCR 93 (Rep. M. Cheeks). Wayne State University – Engineering Building Addition. This project entails
the construction of an 81,000 sq. ft., 4-story addition for new classrooms,
laboratories, lecture halls, and faculty/administrative offices.
This project received cost/construction
authorizations under PA 345 of 2006.
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$27,350,000
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$14,999,800
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$1,029,000 to $1,345,000
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Totals
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$124,613,000
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$99,762,500
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$7,285,000 to $9,386,000
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Local Fiscal Impact
None.
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Analyst(s)
Al
Valenzio
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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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