August 13, 2025

STATE BUILDING AUTHORITY

Meeting Minutes

A meeting of the State Building Authority was held on August 13, 2025, at the Henry Ford College Business Entrepreneurial Hub in Building E (Technology Building), located at located at 5101 Evergreen Road, Dearborn, MI  48128. The meeting took place at 10:00 a.m.

Board Members Present

1. Ehrlich Crain, Chair
2. Michael Barnwell, Vice Chair
3. Todd Begerowski

Authority Staff

1. Andrew Boettcher, Executive Director
2. TeAnn Smith, Deputy Executive Director
3. Joe Avery, Financial Specialist

Others Present

1. Alan Lambert (Attorney General’s Office)
2. Amy Patterson (Attorney General’s Office)
3. Kelly Mrsic (Robert W. Baird)
4. James Srouji (Robert W. Baird)

Chairperson Crain called the meeting to order at 9:56 a.m. A roll call was taken with Ehrlich Crain, Michael Barnwell, and Todd Begerowski present.

Mr. Boettcher announced that Ryan Tabb was absent due to being away on paternity leave. In addition, he announced that no new replacement has been named for the board position currently held by Price Dobernick. 

Chairperson Crain asked if there were any comments from the public. There were none.

The minutes of the May 20, 2025 meeting were reviewed.  Mr. Barnwell moved that the minutes be accepted as written. Mr. Begerowski supported the motion.  All were in favor and the motion passed.  

Mr. Boettcher reviewed the agenda, including old business to review the status of the Commercial Paper Program and a summary of the 2025 Series I Bond Issue including details on a pre-sale buy-back transaction. Under new business, a resolution for approving an easement for Grand Rapids Community College Applied Technology Center Renovation & Expansion, a resolution for approving an easement for Grand Rapids Community College Main Building renovations, a resolution approving an easement for the DTMB Secondary Complex Warehouse, and a resolution approving the ability to negotiate the purchase of radio towers and property for the Michigan Public Safety Communications System (MPSCS).

Mr. Avery reviewed the CP status report and noted that there is currently only one (1) remaining project in the CP Program.  The total CP outstanding amount is $15.2 million, with an interest rate of 2.95% and a maturity date of October 23, 2025.  No new projects have been added.  He stated that the three projects approved at the May 20, 2025 Board Meeting will be added to the CP program in October.  Mr. Crain asked if U of M Computer Science and Engineering School project will still be in the CP program after October.  Ms. Smith responded that it will still be part of the CP Roll in October.

Mr. Boettcher covered the pre-sale buy-back transaction that occurred prior to the 2025 Series I Bond Issue. Barclays facilitated the tender for the buy-back.  The par amount was $18 million and the SBA paid $14 million, resulting in a savings of $4 million.  Ms. Mrsic and Mr. Srouji from the Baird team covered the summary of the 2025 Series I Bond Issue. The Sale Date was June 25, 2025 and the Closing Date was July 17, 2025.  The Bond Issue will both refund existing debt in addition to cover the funding for new projects.  The total Par Amount was $745,815,000 with a maturity date of April 2060.  They stated that as part of the 2025-2026 financing objectives, the target for lease cancellations would consist of Constitution Hall, the Judiciary Hall of Justice, and the Community Health Center for Forensic Psychiatry for a grand total of $25,606,130. 

Under New Business, Ms. Smith covered the resolution approving an easement between the State Building Authority and Consumers Energy Company at the Grand Rapids Community College Applied Technology Center Renovation and Expansion.  Ms. Smith noted that Integra Realty Resources reviewed the lease amendment and noted no change to the assigned rent value of the bonded project.   The easement is needed for the installation and maintenance of underground utilities.  Mr. Begerowski moved that the resolution be accepted and Mr. Barnwell supported the motion.  A roll call vote was conducted with the following results:

Ms. Smith covered the resolution approving an easement between the State Building Authority and Consumers Energy Company at the Grand Rapids Community College Main Building Renovations.  Ms. Smith noted that Integra Realty Resources reviewed the lease amendment and noted no change to the assigned rent value of the bonded project.   The easement is needed for the installation and maintenance of underground utilities.  Mr. Begerowski moved that the resolution be accepted and Mr. Barnwell supported the motion.   A roll call vote was conducted with the following results: 

Ms. Smith covered the resolution approving an easement between the State Building Authority and Consumers Energy Company at DTMB Secondary Warehouse.  Ms. Smith noted that Integra Realty Resources reviewed the lease amendment and noted no change to the assigned rent value of the bonded project.   The easement is needed for the installation and maintenance of underground utilities to facility the new State Joint Lab being constructed.  Mr. Begerowski moved that the resolution be accepted and Mr. Barnwell supported the motion.  

A roll call vote was conducted with the following results: 

Mr. Boettcher covered the resolution approving the ability to negotiate the purchase of radio towers and property for Michigan Public Safety Communication System (MPSCS).  He explained that the SBA has a total of $25,000 to spend to cover any costs associated with these transactions.  These funds were received from the 2024 land sale in Escanaba and therefore are not associated with bond proceeds or lease rent. It is very probable that the towers could be purchased for $1 each.  He explained that legislation is being sought for MPSCS to purchase their own property.  Mr. Begerowski asked what liability the SBA would have in proceeding if anything were to go wrong.  Mr. Boettcher responded and clarified that the SBA is only asking for permission to proceed in pursing this possibility and if any real danger was possible, the SBA would not proceed.  Mr. Crain inquired if the SBA would be indemnified should any issues come up.  Mr. Boettcher stated that all of that would be covered in the agreement to hold the SBA harmless.  Mr. Barnwell moved that the resolution be accepted and Mr. Begerowski supported the motion.  

A roll call vote was conducted with the following results: 

Mr. Boettcher spoke about the proposed next meeting which is being planned for Spring of 2026.

Chairperson Crain asked for a motion to adjourn, Mr. Begerowski moved for adjournment and Mr. Barnwell supported.  The meeting was adjourned at 10:55 a.m. 

APPROVED AND ADOPTED:  June 2, 2026

Andrew Boettcher, Executive Director

Ehrlich Crain, Chairperson