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.