Fiscal Analysis

StateBuilding Authority Lease

Bill/Sponsor

SCR 20,  Sen. S. Johnson

House Committee

Appropriations

Analysis

Summary

To approve a standard State Building Authority (SBA) lease among the SBA, the state, andKelloggCommunity College for itsRollBuilding renovation project.  The property is also conveyed to the SBA.  This project received planning, cost, and construction authorizations under previous Capital Outlay budget acts.

Legislative approval of the resolution, a statutory requirement, enables the SBA to issue both short and long-term debt to finance the state's share of the project's construction cost.

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

State Fiscal Impact

Legislative adoption of this 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 $110,000 to $145,000 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.


Project

Total Project Cost

College Funds

State Funds

GF/GP Rental Range on SBA Financing

KelloggCommunity College –RollBuilding Renovation Project.  This project entails the complete remodeling of this facility which houses KCC's health occupation programs.

$5,000,000

$3,375,000

$1,625,000

$110,000 to $145,000

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