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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 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 enables 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 $3,774,000 to $4,910,000 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 8. State Facility Preservation
Projects – Group A Special Maintenance Roof Repairs. Projects entail
replacing/repairing roofs on 13 state owned facilities.
Cost/construction authorizations were
provided under PA 10 of 2005.
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$5,296,000
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$5,295,800
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$407,000 to $516,000
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HCR 9. State Facility Preservation
Projects – Group DJointOperationsCenter. Project entails
renovating this 2-story, 17,100 sq. ft. facility for energy efficiencies
and code compliance for electrical, heating, and cooling systems. An
elevator and men' and women's restrooms for each floor will be added.
Cost/construction authorizations were
provided under PA 10 of 2005.
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$3,000,000
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$3,000,000
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$231,000 to $292,000
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HCR 10. Bay de Noc Community College
– West Campus Facility. Project entails the construction of a new 67,000 sq.
ft. instructional facility inDickinsonCounty.
Cost/construction authorizations were
provided under PA 297 of 2005.
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$12,048,000
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$5,874,100
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$391,000 to $512,000
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HCR
11. SouthwesternMichiganCollege –InformationTechnologyCenter Renovations. Project entails
complete renovation of 21,000 sq. ft. of existing instructional space at
the Dowagiac campus, and new construction of 5,000 sq. ft. to support IT
programs.
Cost/construction
authorizations were provided under PA 297 of 2005.
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$5,047,700
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$2,249,800
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$150,000 to $196,000
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HCR 12. Lansing Community College – University Center. Project entails
renovation of the 15,100 sq. ft. Carnegie Library building and the
construction of a 22,200 sq. ft. addition to provide new instructional
space.
Cost/construction authorizations were
provided under PA 297 of 2005.
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$11,000,000
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$4,999,800
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$333,000 to $436,000
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HCR
13. MidMichiganCommunity College – Science &TechnologyCenter. Project entails
construction of a new 57,800 sq. ft. instructional facility on theMt.Pleasant campus.
Cost/construction
authorizations were provided under PA 297 of 2005.
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$16,475,000
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$8,237,300
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$554,000 to $725,000
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HCR
14. MontcalmCommunity College – Life Science
Training Facility. Project entails 4 components that will ultimately
provide more than 50,000 sq. ft. of renovated or new space for Life Science
programs.
Cost/construction
authorizations were provided under PA 297 of 2005.
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$7,500,000
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$2,999,800
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$200,000 to $261,000
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HCR
15. SaginawValleyStateUniversity – Pioneer Hall
Renovations.
Project entails renovation of this 47,000 sq. ft. facility and the
construction of a 28,000 sq. ft. addition to support mechanical and
electrical engineering programs.
Cost/construction
authorizations were provided under PA 297 of 2005.
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$16,000,000
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$11,999,800
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$799,000 to $1,045,000
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HCR
16. SchoolcraftCollege – Technical
Services Facility. Project entails construction of a new 48,500 sq. ft.
instructional facility to support math, science, and technology programs.
Cost/construction
authorizations were provided under PA 153 of 2006.
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$12,700,000
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$5,019,700
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$334,000 to $437,000
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HCR 17. Ferris State University – Instructional Resource Center. Project includes
renovating/upgrading 54,500 sq. ft. of space and construction of a 1-story,
6,700 sq. ft. addition.
Cost/construction authorizations were
provided under PA 297 of 2005.
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$8,500,000
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$5,624,800
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$375,000 to $490,000
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Totals
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$97,566,700
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$55,300,900
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$3,774,000 to $4,910,000
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Local Fiscal Impact
Community colleges typically finance 50% of
these project costs.
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