Description
This opportunity is a 30‑year state lease for a 40,734 sf office building located at 4809 Clio Rd, Flint, MI. The lease is between the State of Michigan (Dept. of Technology, Management & Budget) as Lessee and MIG Investments (later transferred to the Economic Development Corp. of the City of Flint) as Lessor, and is financed with up to $8.5 million in tax‑exempt bonds. The Lessor is responsible for design, construction, and long‑term operation of the facility, including HVAC, electrical, lighting, plumbing, fire & security systems, parking lot maintenance, janitorial services, exterior grounds upkeep, and barrier‑free compliance. The State will pay annual rent that ramps from $589,143 to $702,660 over the lease term, plus $93,684 in additional operating rent each year, and a $336,055 moving‑allowance fund. Key obligations include meeting construction deadlines (substantial completion by Oct 1 2011), liquidated‑damage penalties of $1,500 per day for delays, and extensive insurance and bonding requirements.
• Lessor must deliver a fully serviced, code‑compliant office building and maintain it for 30 years.
• Annual rent escalates to roughly $700 k plus $94 k in operating rent; a $336 k moving allowance is provided.
• Lease includes purchase options ($1 at term end or bond‑pay‑off after 10 years) and extensive performance, insurance, and reporting obligations.