ITEM 119-109-R0503





December 2, 2002


Square Footage @ 2500 Broadway:  56,000 square feet with approximately 5500 sg. ft. partially finished


Current Owner:   Lewis & Clark County


Total Original Cost:  $4,160,000


Latest Appraised Value:  $4.9-5.6 million – December, 1999


Original Refunding Bond Amount:  $4,655,000 issued July 1993


Current Outstanding Balance of Bonds:  $2,550,000


Final scheduled maturity of Bonds:   December 1, 2008


Ownership upon Payment of Bonds:   MHESAC – assigned to SAF Febr.2000


Current Lessees:

MHESAC- assigned to SAF (~56% of the building)

Regents for MGSLP – (~27% of the building)

Regents for OCHE – (~17% of the building)


Lease Terms:

Parties agree to pay the Bonds in Full

Basic Rental Payments cease December 1, 2008 (or earlier if Bonds are prepaid)

Basic Rental Rate: $9.09 /sq. ft. annually  

Final stated maturity of Regent’s Leases- December 1, 2014


Special Lease Terms:

The obligations of the Regents under the GSLP lease are limited solely to the revenues of MGSLP.

The Regents may terminate the OCHE lease on June 30 in any odd year for lack of funds in the next biennium.  In the event of such termination MHESAC and/or GSLP are responsible for assuming vacated OCHE space.

Effective December 1, 2002 and thereafter MHESAC may cause the OCHE lease to be terminated if MHESAC needs the space.  If this is exercised MHESAC is responsible for making the payments on this space.

The tenants have agreed that once the Bonds are paid, the rental charges to OCHE and GSL will be for the costs of maintenance and operations only.