STATE BUILDING AUTHORITY RESOLUTION S.C.R. 62: COMMITTEE SUMMARY






Senate Concurrent Resolution 62 (as introduced 11-28-06)
Sponsor: Senator Shirley Johnson
Committee: Appropriations


Date Completed: 11-28-06

CONTENT

Senate Concurrent Resolution 62 would establish a lease agreement between the State, the State Building Authority (SBA), and Michigan Technological University for the General Campus Renovations 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 Capital 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. FISCAL IMPACT

The project represents new bond debt obligations by the SBA of $7.5 million. Annual rental payments to the SBA are estimated at $582,000 to $737,000 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 bill total $237.8 million.



SCR
 
Project
 
Total Cost
State
Share
Institution Share Rental Range
62 Michigan Technological University: General Campus Renovations. $10,000,000 $7,500,000 $2,500,000 $582,000
to $737,000
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. 62/0506