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Approves a standard State Building Authority
(SBA) lease between the SBA, the State and Michigan State University relative
to its Chemistry Building Renovations and Cooling Tower 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 $1,345,000 to $1,759,000
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.
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Total
Authorized Project Cost
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University Funds
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State
Funds
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GF/GP
Rental Range on SBA Financing
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Michigan State University
– Chemistry Building & Cooling Towers Project. This will provide
nearly 50,000 sq. ft. of new and renovated research space and laboratory
classrooms in this 40-year old facility.
Project also entails new
steam absorption chillers, cooling towers, and associated chiller pumps.
Cost and construction authorizations were provided
under PA 297 of 2005.
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$28,344,500
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$8,344,500
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$20,000,000
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$1,345,000 to $1,759,000
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Local Fiscal
Impact
None.
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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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