0017: FLOOR ANALYSIS (7-1-03) (7-1-03) - STATE BUILDING AUTHORITY RESOLUTION

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<TITLE>0017: FLOOR ANALYSIS (7-1-03) - STATE BUILDING AUTHORITY RESOLUTION</TITLE>

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<a name="3"></a>STATE BUILDING AUTHORITY RESOLUTION - H.C.R.s <a name="1"></a>17-23: FLOOR ANALYSIS

House Concurrent Resolutions <a name="2"></a>17-23 (as reported without amendment)

Sponsor: Representative <a name="4"></a>Scott Shackleton

House Committee: <a name="5"></a>Appropriations

Senate Committee: Appropriations

CONTENT

The Joint Capital Outlay Subcommittee (JCOS) has approved House Concurrent

Resolutions 17-23, which would convey land and establish lease agreements among

the State, the State Building Authority (SBA), and various colleges, universities, and

State agencies. The lease agreements create a contractual obligation requiring the

State to make rental payments to the SBA on behalf of the institutions for use of the

facilities. The SBA will use the rental payments to make debt service payments on

bonds that will be sold to finance the project construction.

The projects have met the planning and approval requirements of the JCOS, the

Management and Budget Act (PA 431 of 1984), and the State Building Authority Act

(PA 183 of 1964). The estimated annual rental amount is provided pursuant to the

requirements of the SBA Act. An actual rental amount will be determined by an

appraiser once the facility is complete. Legislative approval of the resolutions would

commit the State to make annual rental payments for the project until the SBA debt

obligations are satisfied.

- <a name="9"></a>

FISCAL IMPACT

Annual rental (debt service) payments for the current fiscal year are appropriated in

the Capital Outlay budget at $291,311,700. These projects represent new bond debt

obligations by the SBA of $61.0 million. Approval would require the State to make

annual rental payments to the SBA estimated between $4.6 million and $5.9 million.

<tr>

<td class="table1column1" width="34%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="center" valign="bottom">Project

</td>

<td class="table1column2" width="13%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="center" valign="bottom">HCR

No.

</td>

<td class="table1column3" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="center" valign="bottom">Total

Authorized

Cost

</td>

<td class="table1column4" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="center" valign="bottom">SBA Share

</td>

<td class="table1column5" width="17%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="center" valign="bottom">Estimated

Annual

Rental

Range

</td>

</tr>

<tr>

<td class="table1column1" width="34%" style="padding-top: 0.03in; padding-bottom: 0.03in" valign="top">Kellogg Community

College - Career

Development

Center/Science

Building Renovations.

The project entails the

total renovation of the

21,640 sq. ft. Career

Development Center for

conversion to the

college’s science

program.

</td>

<td class="table1column2" width="13%" style="padding-top: 0.03in; padding-bottom: 0.03in" valign="top">HCR 17

</td>

<td class="table1column3" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$3,750,000

</td>

<td class="table1column4" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$1,874,800

</td>

<td class="table1column5" width="17%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$140,000 to

$185,000

</td>

</tr>

<tr>

College - Lenawee

Extension Center. The

project entails the

construction of a new 2-story, 26,900 sq. ft.

instructional facility in

Adrian. The project

includes 9 general

classrooms, a science lab,

and 2 computer labs.

</td>

<td class="table1column2" width="13%" style="padding-top: 0.03in; padding-bottom: 0.03in" valign="top">HCR 18

</td>

<td class="table1column3" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$4,400,000

</td>

<td class="table1column4" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$1,499,900

</td>

<td class="table1column5" width="17%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$110,000 to

$150,000

</td>

</tr>

<tr>

<td class="table1column1" width="34%" style="padding-top: 0.03in; padding-bottom: 0.03in" valign="top">Southwestern

Michigan College -

Instructional Resource

Center. The project

entails the construction of

11,000 sq. ft. addition to

the college’s library and

renovating 33,000 sq. ft.

of space. This will

upgrade the library,

computer labs, offices,

conference rooms and

multimedia space.

</td>

<td class="table1column2" width="13%" style="padding-top: 0.03in; padding-bottom: 0.03in" valign="top">HCR 19

</td>

<td class="table1column3" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$2,500,000

</td>

<td class="table1column4" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$1,249,800

</td>

<td class="table1column5" width="17%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$90,000 to

$120,000

</td>

</tr>

<tr>

College - West Bay

Reconstruction

Project. The project

entails the demolition of

the old West Bay Campus

buildings and construction

of a new 73,000 sq. ft.

instructional facility. The

new building will house

the Maritime Academy,

Fresh Water Studies

Program, Culinary Arts,

and the Professional

Development Center.

</td>

<td class="table1column2" width="13%" style="padding-top: 0.03in; padding-bottom: 0.03in" valign="top">HCR 20

</td>

<td class="table1column3" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$16,249,200

</td>

<td class="table1column4" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$8,124,200

</td>

<td class="table1column5" width="17%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$620,000 to

$790,000

</td>

</tr>

<tr>

Resources - State Fish

Hatchery Renovations

- Platte River. The

project includes

installation of water flow

and quality monitoring

systems and replacement

of components like fish

raceways, underground

pipes, and operational

systems. This is the

State’s main salmon

hatchery.

</td>

<td class="table1column2" width="13%" style="padding-top: 0.03in; padding-bottom: 0.03in" valign="top">HCR 21

</td>

<td class="table1column3" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$8,199,000

</td>

<td class="table1column4" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$8,199,000

</td>

<td class="table1column5" width="17%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$620,000 to

$800,000

</td>

</tr>

<tr>

University - Health and

Human Services

Building. This project

entails the construction of

a new 196,000 sq. ft.

instructional facility to

house 9 different health-related programs,

including nursing.

</td>

<td class="table1column2" width="13%" style="padding-top: 0.03in; padding-bottom: 0.03in" valign="top">HCR 22

</td>

<td class="table1column3" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$48,170,000

</td>

<td class="table1column4" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$36,127,900

</td>

<td class="table1column5" width="17%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$2,740,000

$3,510,000

-

</td>

</tr>

<tr>

- Van Buren Center

Project. This project

entails the construction of

a new 42,000 sq. ft.

instructional facility to be

shared with Western

Michigan University.

WMU will occupy 2

classrooms and a

computer lab. The facility

will serve as the college’s

new satellite site in South

Haven.

</td>

<td class="table1column2" width="13%" style="padding-top: 0.03in; padding-bottom: 0.03in" valign="top">HCR 23

</td>

<td class="table1column3" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$7,800,000

</td>

<td class="table1column4" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$3,899,800

</td>

<td class="table1column5" width="17%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$295,000 to

$380,000

</td>

</tr>

<tr>

</td>

</td>

<td class="table1column3" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$91,068,200

</td>

<td class="table1column4" width="18%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$60,975,400

</td>

<td class="table1column5" width="17%" style="padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top">$4,615,000 to

$5,935,000

</td>

</tr>

</table>

Date Completed: 7-1-03 - Fiscal Analyst: <a name="10"></a>Mike HansenFloor\hcr17

This 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.

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