STATE BUILDING AUTHORITY RESOLUTION H.C.R. 102: COMMITTEE SUMMARY
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House Concurrent Resolution 102 (as adopted by the House)
Sponsor: Representative Joan Bauer
House Committee: Appropriations
Senate Committee: Appropriations


Date Completed: 11-13-08

CONTENT
House Concurrent Resolution 102 would approve the conveyance of property and approve a lease between the State and the State Building Authority (SBA) for the acquisition of a warehouse for the Department of History, Arts, and Libraries that was approved by the Legislature in Public Act 278 of 2008. Approval of the resolution would enable the SBA to issue bonds to finance the cost of the acquisition.


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 uses the rental payments to pay off the bonds sold to finance construction. Once the debt obligations are satisfied, the SBA will transfer title back to the State.

FISCAL IMPACT
The project represents new SBA bond debt obligations of $9.9 million. Annual rental payments to the SBA are estimated at $678,000 to $887,000 until the bonds are retired (approximately 15 to 17 years). Annual rental (debt service) payments to the SBA appropriated in the FY 2008-09 General Government appropriation bill total $231.8 million.



HCR		  
Project		  
Total Cost		 State
Share		 Institution Share Rental Range
102 Department of History, Arts, and Libraries Warehouse Facilities Acquisition. The project includes space for the records center, which is currently being leased by the State. $9,890,000 $9,890,000 N/A $678,000 to $887,000
Fiscal Analyst: Bill Bowerman

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. 102/0708