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Summary
Approves the conveyance of property and a standard State
Building Authority (SBA) lease between the SBA, the State, and Muskegon Community
College for a construction project previously approved by the Legislature.
Approval of this resolution is
the final remaining legal requirement to enable the SBA to issue bonds to
finance the State's share of the project's construction costs. Approval
would create a contractual obligation between the State and the SBA,
requiring the State to make annual rental payments to the SBA. The SBA will
use the rental payments to pay off the bonds sold to finance the
construction. Once the debt is satisfied, the SBA will transfer title back
to Muskegon Community College.
The specific project involves
renovation of existing space to consolidate all student services, including
registration, records, counseling, testing career services, student
placement, recruitment, financial aid, and student life. These student services
will be together on one level in a prominent location adjacent to the lobby
of the main building.
Fiscal Impact - State
The total cost of the project is $5.0 million and the
State share is $2.5 million. Annual rent payments to the SBA are estimated
at $171,000 to $224,000 until the bonds are retired (approximately 15 to 17
years). 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.
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Mitchell
Bean, Director
124
N. Capitol Avenue, Lansing, MI 48909
Phone:
(517) 373-8080; Fax: (517) 373-5874
http://www.house.mi.gov/hfa
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