Fiscal Analysis

state building authority lease

 

Bill/Sponsor

HOUSE CONCURRENT RESOLUTION 58(as introduced)/ Rep. D. Booher

House Committee

 

Appropriations

Analysis

Summary

Approves a standard State Building Authority (SBA) lease between the SBA, the State and West Shore Community College relative to its New Student Learning Center project.   The property is also conveyed to the SBA.  This project received planning, cost, and construction authorizations under previous Capital Outlay budget acts and is currently under construction.

Legislative approval of the resolution, a statutory requirement, enables the SBA to issue debt instruments to finance the state's share of the project's construction cost.

 

The Joint Capital Outlay Subcommittee (JCOS) approved the resolution, with recommendation.  The Department of Management and Budget also recommends approval.

 

Fiscal Impact

Legislative adoption of the resolution commits the state to annually pay rent to the SBA until its debt obligations are fully satisfied.  The annual GF/GP high/low rental range of $263,000 to $344,000 is provided consistent with PA 183 of 1964. 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.

Total Authorized Project Cost

College Funds

State Funds

GF/GP Rental Range on SBA Financing

West Community College – New Student Learning Center Project.  This project entails constructing a 2-story, 38,000 sq. ft. facility to house a library, bookstore, and student advising, testing, and tutoring centers.

Cost and construction authorizations were provided under PA 153 of 2006.

$7,899,400

$3,949,700

$3,949,700

$263,000 to $344,000

Local Fiscal Impact

WestShoreCommunity College will finance one-half of the project's cost.

Analyst(s)

Al Valenzio

Analysis 12/05/07

                                                                                                                                                                                    Mitchell Bean, Director

                                                                                                                                                     124 N. Capitol Avenue, Lansing, MI 48909

                                                                                                                                               Phone: (517) 373-8080; Fax: (517) 373-5874

                                                                                                                                                                        http://www.house.mi.gov/hfa