July 11-12, 2002
ITEM 116-2014-R0702 Authorization to Borrow Intercap Funds for Gaines Hall Renovation/Addition Project Design; Montana State University-Bozeman
THAT: The Montana Board of Regents of Higher Education authorizes Montana State University-Bozeman to borrow one million dollars ($1,000,000) of State Intercap Program funds for the planning and design of its Gaines Hall Renovation and Addition Project.
EXPLANATION: The 2001 Legislature authorized Montana State University-Bozeman to expend up to $2,000,000 (of federal, donation, grant, non-state, or plant funds) for the planning and design of the University’s proposed Gaines Hall Renovation and Addition Project.
An architectural services contract was issued, and this work has been in progress for the past several months. It is anticipated that by August, 2002, about $800,000 will have been expended under this contract.
The University is committed to fully fund this contract with Facilities and Administration (F&A) cost recoveries from research grants (formerly known as IDCs), and will do so for the first half of the expenditures. However, the University desires to extend the period over which the second half of these planning and design costs are funded. The use of an Intercap loan will allow the University to complete the planning and design process on a timely basis, but spread the repayment over a period of up to five years.
Board of Regents approval is required for Intercap loans in excess of $500,000. These funds will be drawn as needed, to make future payments for design service fees. The loan repayment will occur over a period of up to five years, with F&A funds.
The actual Gaines Hall Renovation/Addition construction project is the University’s highest priority LRBP project for the upcoming 2003 Legislative Session.