Fiscal Analysis

StateBuilding Authority Lease

History, Arts, & Libraries

Bill/Sponsor

HCR 102 (as introduced)/Rep. Joan Bauer

House Committee

Analysis

Summary

To approve a standard State Building Authority (SBA) lease agreement between the SBA and the State relative to the acquisition of a warehouse facility.  The acquired property is also conveyed to the SBA by the resolution.  This purchase authorization was granted by a previous Capital Outlay budget act.

Approval of this resolution is the final remaining legal requirement to allow the SBA to issue both short and long-term debt instruments to finance the acquisition.

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 low-to-high rent payment range of $688,000 to $887,000 is provided consistent with the State Building Authority Act (PA 183 of 1964).  The actual rental amount, within or below the respective range, will be determined by an independent.  Payments to the SBA begin after the long-term bonds have been issued.



Project

Total Authorized Project Cost

StateBuilding Authority Funds

GF/GP Rent Estimate on SBA Financing

Department of History, Arts and Libraries – Warehouse Facility Acquisition. 

The project entails purchasing a nearly 200,000 sq. ft. warehouse inLansing to house theHALRecordsCenter and their Museum and Artifacts collections.

Cost and purchase authorizations were provided under PA 278 of 2008.

$9,890,000

$9,889,900

$688,000 to $887,000

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