SB 144-FN - AS AMENDED BY THE SENATE
03/27/03 0931s
2003 SESSION
03/01
SENATE BILL 144-FN
AN ACT relative to the lease agreement between the department of regional community-technical colleges and Pease development authority.
This bill extends the term of the lease agreement between the department of regional community-technical colleges and Pease development authority from 2 years to 8 years, modifies the debt reduction corresponding to the lease agreement, and authorizes the Pease development authority to receive a further debt reduction for obtaining certain property insurance.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/27/03 0931s
03-1110
03/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT relative to the lease agreement between the department of regional community-technical colleges and Pease development authority.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Lease Agreement Required; Pease Development Authority; Department of Regional Community-Technical Colleges. Amend 2001, 158:67 to read as follows:
158:67 Lease Agreement Required; Pease Development Authority; Department of Regional Community-Technical Colleges. The department of regional community-technical colleges and Pease development authority shall enter into a lease agreement in which the department shall occupy the first floor, consisting of 71,243 square feet, of 320 Corporate Drive in Portsmouth. In exchange, the state shall reduce by [$1,068,644] $1,133,724 per year, starting with the commencement of the lease on July 1, [2001] 2003, Pease development authority's debt owed to the state relative to start-up funding costs under RSA [12-G:27-b] 12-G:33 through [12-G:27-d] 12-G:35; 1991, 355:110, as amended by 1992, 260:11; 1992, 260:12, as amended by 1993, 358:3; 1994, 415:1; and 1995, 307:10. Commencing on July 1, 2004 and on each July 1 thereafter, the annual debt reduction shall be increased by the lesser of the consumer price index or 3 percent for that year, not to exceed 12 percent in any 5-year period. In this section, "consumer price index" means the Consumer Price Index for All Urban Consumers applicable to the Boston area (all items 1982-1984=100) published by the United States Department of Labor, Bureau of Labor Statistics. The lease term shall be [2] 8 years or until such time as the debt owed to the state relative to the authority's start-up funding costs has been exhausted. [The lease may be extended subject to the approval of the capital budget overview committee and the governor and council.] If the department of regional community-technical colleges does not acquire property insurance for the leased premises, the Pease development authority may elect to obtain property insurance coverage for 320 Corporate Drive and the state shall reduce annually the authority's debt owed to the state relative to start-up funding costs, as described in this section, by an additional amount equal to the pro-rata allocation of the insurance costs attributable to the leased premises based on square footage.
2 Effective Date. This act shall take effect July 1, 2003.
LBAO
03-1110
Revised 3/5/03
SB 144 FISCAL NOTE
AN ACT relative to the lease agreement between the department of regional community-technical colleges and Pease development authority.
FISCAL IMPACT:
The Department of Regional Community Technical Colleges and the Pease Development Authority indicate this bill will increase state general fund revenues and expenditures by $1,133,724 in FY 2004 and by a greater amount, not to exceed 3%, each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department states this bill will continue an agreement whereby the Department will occupy office space in a building owned by the Pease Development Authority. The Department will not pay for the office space, however, the amount owed to the state by the Pease Development Authority will be reduced by an amount equal to the fair market value of the office space leased by the Department. The lease amount and the amount of debt reduced will equal $1,133,724 in FY 2004 and will increase annually by the lesser of the consumer price index, or 3%. The amount is based on a lease of 71,243 square feet at $15.9135 per square foot. This bill provides for a transaction that will not be entered into the state's accounting system. In essence, this bill provides an appropriation to the Department that will be used to pay the rental cost at the Pease site. The amount of the rental cost is then used by Pease to decrease the amount Pease owes to the State of New Hampshire.