HB 161: "An Act relating to the Alaska Mental Health Trust Authority Subport Office Building; authorizing the issuance of certificates of participation for construction of the building and authorizing the use of up to $25,000,000 from the mental health trust fund for construction of the building; approving leases of all or part of the building by the Department of Administration; and providing for an effective date."
00 HOUSE BILL NO. 161 01 "An Act relating to the Alaska Mental Health Trust Authority Subport Office Building; 02 authorizing the issuance of certificates of participation for construction of the building 03 and authorizing the use of up to $25,000,000 from the mental health trust fund for 04 construction of the building; approving leases of all or part of the building by the 05 Department of Administration; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 08 to read: 09 LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that the 10 (1) Alaska Mental Health Trust Authority intends to use up to $25,000,000 11 from the mental health trust fund (AS 37.14.031) in the construction of a new facility to be 12 known as the Alaska Mental Health Trust Authority Subport Office Building, to be located on 13 land held in trust by the authority in Juneau; and
01 (2) cost of constructing and equipping the new facility will be $50,000,000. 02 (b) The legislature intends that the state provide up to $25,000,000 from the issuance 03 of certificates of participation for the construction of the new facility and that the Department 04 of Administration lease all or part of the facility on its completion for use as office space for 05 state agencies under two separate leases, with the lease payments from one of them used to 06 pay the principal of and interest on the certificates of participation to the extent needed to 07 meet the debt obligation. 08 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 MENTAL HEALTH TRUST FUND REAL ESTATE INVESTMENT. (a) 11 Notwithstanding AS 37.13.300, the Board of Trustees of the Alaska Permanent Fund 12 Corporation may allocate up to $25,000,000 from the principal of the mental health trust fund 13 (AS 37.14.031) for the purpose of acquisition, construction, and equipping of a facility to be 14 known as the Alaska Mental Health Trust Authority Subport Office Building on land held in 15 trust by the Alaska Mental Health Trust Authority. The Board of Trustees of the Alaska 16 Permanent Fund may contract with the Trust Land Office in the Department of Natural 17 Resources to serve as an external real estate investment manager in connection with the 18 development of the project as a revenue-producing office and retail facility. 19 (b) The allocation authorized under (a) of this section is subject to the requirements of 20 AS 37.13.120(c)(1) and (2), but is not subject to the diversification requirement under 21 AS 37.13.120(c). 22 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 FINANCING AND LEASE AGREEMENTS. (a) The state bond committee is 25 authorized to provide for the issuance of certificates of participation in one or more series in 26 the aggregate principal amount of up to $25,000,000 for the construction of a facility to be 27 known as the Alaska Mental Health Trust Authority Subport Office Building in Juneau if the 28 balance of the construction costs in the amount of up to $25,000,000 is made available from 29 the mental health trust fund (AS 37.14.031). Interest income on the certificate of participation 30 proceeds may be used to pay arbitrage rebates, with the balance to be used for debt service 31 during construction or additional costs of construction and equipping the facility. The
01 estimated total cost of construction, acquisition, and equipping the facility is $50,000,000, 02 including costs of credit enhancement, underwriting, rating agency fees, bond counsel fees, 03 financial advisor fees, printing, and advertising. 04 (b) The state bond committee may contract for credit enhancement, underwriting, 05 credit ratings, bond counsel, financial advisors, printing, advertising, and trustee services that 06 the committee considers necessary in financing the acquisition and construction of the Alaska 07 Mental Health Trust Authority Subport Office Building. 08 (c) The Department of Administration is authorized to enter into a lease agreement 09 with the Alaska Mental Health Trust Authority with a term of 20 years for the use of all or 10 part of the Alaska Mental Health Trust Authority Subport Office Building by state agencies. 11 In addition to other funds that may be available for the purpose, as much of the lease 12 payments for the facility as are necessary to pay the principal of and interest on the 13 certificates of participation when due shall be used for that purpose. The estimated annual 14 amount of rental obligation under a lease agreement executed under this subsection is 15 $2,075,000. The estimated total amount of lease payments for the full term of the lease 16 agreement is $41,500,000. At the end of the term of the lease, ownership shall be vested in the 17 Alaska Mental Health Trust Authority. This subsection constitutes the approval required by 18 AS 36.30.080. 19 (d) The Department of Administration is authorized to enter into a lease agreement 20 with the Alaska Mental Health Trust Authority with a term of 30 years for the use of all or 21 part of the Alaska Mental Health Trust Authority Subport Office Building by state agencies. 22 The estimated annual amount of rental obligation under a lease agreement executed under this 23 subsection is $3,665,029. The estimated total amount of lease payments for the full term of 24 the lease agreement is $136,875,042. This subsection constitutes the approval required by 25 AS 36.30.080. 26 (e) The lease payments owed under a lease agreement executed under (c) of this 27 section and the lease payments owed under a lease agreement executed under (d) of this 28 section are subject to annual appropriation by the legislature. 29 (f) The Alaska Mental Health Trust Authority shall manage and operate the Alaska 30 Mental Health Trust Authority Subport Office Building. 31 * Sec. 4. This Act takes effect immediately under AS 01.10.070(c).