May 19-20, 2005

 

ITEM 127-124-R0505                  Authorization for OCHE and The University of Montana to Plan the Financing and Construction of an Office Building to house OCHE and MGSLP

 

THAT:                                      The Board of Regents of the Montana University System authorizes OCHE and The University of Montana to plan the financing and construction of an office building to house OCHE and MGSLP.  The building would be located on property currently owned by the Helena College of Technology and would be financed through the issuance of revenue bonds by The University of Montana with OCHE and MGSLP rental payments pledged as revenue to pay debt service on the bonds. 

 

EXPLANATION:                        OCHE and MGSLP currently rent approximately 21,895 square feet of office space and allocated common space from the Student Assistance Foundation (SAF) at 2500 Broadway.  The OCHE has been given notice by SAF that their lease will be terminated in 2006.  MGSLP (a program of OCHE) still has a lease with SAF but for operational and organizational reasons would like to relocate with OCHE when OCHE moves to a new location.  OCHE has been unable to locate acceptable existing office space in Helena that would accommodate OCHE and MGSLP.  Initial discussions with HCOT and UM have identified the option of constructing an office building on 3.646 acres of land currently owned by HCOT southeast of the corner of Townsend Avenue and Harris Street in Helena.  Along with the financial advantages, this option would provide operational advantages to both the HCOT and OCHE/MGSLP as the close proximity would allow the sharing of resources to better serve both small agencies.