STATE BUILDING AUTHORITY RESOLUTION S.C.R. 60: FLOOR ANALYSIS






Senate Concurrent Resolution 60 (as discharged)
Sponsor: Senator Shirley Johnson
Committee: Appropriations

CONTENT
Senate Concurrent Resolution 60 would convey property and establish a lease agreement between the State, the State Building Authority (SBA), and Grand Valley State University for the Padnos College of Engineering project. Approval of the resolution would enable the SBA to issue bonds to finance the State's share of construction costs.


The project has met all of the planning approval requirements of the Joint Capitol Outlay Subcommittee and the Management and Budget Act. Approval of the resolution would create a contractual obligation between the State and the SBA, requiring the State to make annual rental payments to the SBA. The SBA would use the rental payments to pay off the bonds sold to finance construction. Once the debt obligations were satisfied, the SBA would transfer title back to the school.

FISCAL IMPACT
The project represents new bond debt obligations by the SBA of $12.0 million. Annual rental payments to the SBA are estimated at $815,000 to $1.1 million until the bonds are retired (approximately 15 to 17 years). Annual rental (debt service) payments to the SBA appropriated in the FY 2006-07 General Government appropriation act total $237.8 million.



SCR		  
Project		  
Total Cost		 State
Share		 Institution Share Rental Range
60 Grand Valley State University: Padnos College of Engineering. $16,000,000 $12,000,000 $4,000,000 $815,000 to $1,066,000
Fiscal Analyst: Bill Bowerman
Date Completed: 12-13-06

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. scr60/0506