MINUTES OF STATE BUDGET AND CONTROL BOARD MEETING

MINUTES OF STATE BUDGET AND CONTROL BOARD MEETING

September 17, 2002 10:00 A. M.

The Budget and Control Board (the Board) met at 10:00 a.m. on Tuesday, September 17, 2002, in the Governor's conference room in the Wade Hampton Office Building, with the following members in attendance:

Governor James H. Hodges, Chairman;

Mr. Grady L. Patterson, Jr., State Treasurer and Vice-Chairman;

Mr. James A. Lander, Comptroller General;

Senator Hugh K. Leatherman, Sr., Chairman, Senate Finance Committee; and

Representative Robert W. Harrell, Jr., Chairman, Ways and Means Committee.

Also attending were Budget and Control Board Executive Director Frank Fusco, Chief of Staff Stephen C. Osborne, and Division Directors Joseph Rogers and Peggy G. Boykin; General Counsel Edwin E. Evans; Governor’s Deputy Chief of Staff for Budget and Policy Frank Rainwater; Governor’s Chief Legal Counsel Steve Bates; Senior Assistant State Treasurer Richard Harmon; Assistant Comptroller General Michael Horton; Finance Committee Chief of Staff Robby Dawkins; Ways and Means Committee Chief of Staff Don Hottel; Board Secretary Delbert H. Singleton, Jr., and other Budget and Control Board staff. [Secretary’s Note: The Board met immediately following a meeting of the Water Quality Revolving Fund Authority, ex officio.]

State Budget and Control Board Meeting as Trustees for the South Carolina State Retirement

Systems

Adoption of Agenda

Upon a motion by Mr. Patterson, seconded by Mr. Harrell, the Board adopted the agenda as proposed for the Board meeting as the Trustees for the South Carolina State Retirement Systems.

State Retirement Systems Investment Panel: Selection and Funding of Small Cap Growth and Small Cap Value Equity Investment Managers (Regular Session Item #1)

The State Retirement Systems Investment Panel (the Panel) recommended that the Board approve the Panel’s selections for new managers in the Small Cap Growth and Small Cap Value strategies and authorize the execution of contracts and funding of the new managers as set forth in the proposed amendments to the Annual Investment Plan.

On May 7, 2002, the Board authorized the Panel to conduct searches for additional managers in the Small Cap Growth and Small Cap Value strategies. The Panel discussed the analysis of potential candidates on July 23, 2002, and selected three candidates in each strategy for interviews, which were conducted on August 29, 2002. After interviews and discussions about the candidates and the portfolio, the Panel selected TimesSquare Capital Management as the primary candidate and Delaware Investments as the alternate for the Small Cap Growth strategy for initial funding of $100 million. The Panel also selected Benson Associates as the primary candidate and Clover Capital Management as the alternate for the Small Cap Value strategy for initial funding of $100 million. Additional information regarding the Investment Panel’s recommendations was included as part of this item.

Panel member Mr. Art Bjontegard appeared before the Board on this item. Also appearing before the Board on this item were Steven Greene and Grant Boveack with TimesSquare Capital Management.

Upon a motion by Senator Leatherman, seconded by Mr. Lander, the Board took the following action:

approved the Retirement Systems Investment Panel’s (the Panel) selection of TimesSquare Capital Management ("TimesSquare") to manage assets in the Small Cap Growth strategy, and Delaware Investments as an alternate if the Director of the SCRS determines that a contract with TimesSquare cannot be executed; authorized the Director of the SCRS to execute a contract on behalf of the Board upon approval for legal sufficiency by the Office of General Counsel and upon a satisfactory on-site due diligence visit with the firm by representatives of the Panel; approved initial funding of up to $100 million; and amended the AIP to provide for funding as recommended by the Panel;
approved the Panel’s selection of Benson Associates ("Benson") to manage assets in the Small Cap Value strategy, and Clover Capital Management as an alternate if the Director of the SCRS determines that a contract with Benson cannot be executed; authorized the Director of the SCRS to execute a contract on behalf of the Board upon approval for legal sufficiency by the Office of General Counsel and upon a satisfactory on-site due diligence visit with the firm by representatives of the Panel; approved initial funding of $100 million; and amended the AIP to provide for funding as recommended by the Panel; and
approved the Panel’s recommendation that if contracts cannot be executed prior to the targeted funding date on October 1, 2002, that the funds that would have been allocated to the new manager(s) be invested in the Passive Smaller Cap Fund until the new account(s) can be established and amounts that would have been allocated pursuant to the amended AIP can be transferred to the new manager(s) from the Passive Smaller Cap Fund.

Information relating to this matter has been retained in this these files and is identified as Exhibit 1.

State Retirement Systems Investment Panel: Amendments to the FY 2002-03 Annual Investment Plan (Regular Session Item #2)

The Panel recommended an amendment to the FY 2002-03 Annual Investment Plan (AIP) to suspend additional contributions to The Boston Company Asset Management, LLP (Boston Company), to invest any additional contributions that Boston Company would have been allocated under the current funding schedule in the Passive Smaller Cap Fund or allocate those funds to the new small cap value manager, as applicable, and to amend the AIP to conform to the recommendations.

The Board approved the appointment of Boston Company on September 14, 1999, and a contract was executed on November 4, 1999. The Panel has continuously monitored the firm and portfolio performance since initial funding. The Panel conducted due diligence discussions with Boston Company at its meeting on August 29, 2002, and specifically addressed performance issues. The Panel noted that while Boston Company remains in compliance overall with the investment guidelines and performance substantially exceeded expectations for most of the firm’s tenure with SCRS, performance has significantly trailed the benchmark recently and has been volatile. In the interest of diversifying the Smaller Cap Value portfolio and funding a new small cap value manager, and considering the recent performance, the Panel voted to recommend that the Board suspend additional funding to Boston Company and that any contributions that would have been allocated to Boston Company under the current funding schedule be invested in the Passive Smaller Cap Fund or allocated to the new small cap value manager, as applicable, until further action by the Board. The Panel proposed amendments to the AIP pursuant to S.C. Code Ann. §§9-16-320(A) and 9-16-340(B) that would implement the recommended adjustments to the funding schedule. A memorandum providing additional information and proposed changes to the AIP to conform to the Panel’s recommendations was included as an attachment to this item.

Mr. Bjontegard appeared before the Board on this matter. Senator Leatherman asked what was the dollar amount of the net funds in the fund at the present time. Drew Carrington of Mercer Investment Consulting, Inc., responded that there is $150 million in the fund. Senator Leatherman asked if that exceeded the benchmark and what did it mean. Mr. Bjontegard stated that each of the active managers has a benchmark and in this case it is the small cap value. He stated that Boston Company has consistently exceeded the benchmark. Mr. Carrington stated that from inception Boston Company’s returns are better than the benchmark but their recent returns have been below the benchmark.

Senator Leatherman further asked what kind of return has been realized on the $150 million. Mr. Carrington replied that Boston Company has not had $150 million for the entire period, but that since inception they are up 5% and the Russell Midcap Index is up 1.8%. He stated that Boston Company’s out performance occurred early after they were hired in 2001. He noted that Boston Company’s return in 2002, especially in the second quarter, has been significantly negative. He stated that the return was –28%. Senator Leatherman further asked how does that return compare to TimeSquare’s return. Mr. Carrington stated that TimeSquare is a growth manager and they are not comparable to Boston Company. Mr. Carrington did state that TimeSquare’s performance was down 11.7% and Benson was up 5%. He further stated that Mercer noticed at the first of the year that Boston Company’s performance was volatile, hence the recommendation to add additional managers and reduce the target funding for Boston Company. Mr. Carrington stated that despite Boston Company’s volatility, he believes they will out perform their benchmark. However, he stated that in the long term the percentage of overall allocation to Boston Company should be reduced.

Governor Hodges asked whether the Board’s meetings were timely enough for the Panel to take action to suspend. Mr. Bjontegard stated that there has been one special meeting to handle a problem, but that they have been able to work out the need for the Board to meet. Governor Hodges stated that the Board is sensitive to the timing concerns relating to issues that may need immediate attention.

Mr. Patterson asked whether the fees that are being paid to the managers are being monitored. Mr. Bjontegard stated that the Panel is monitoring the fees. He stated that the Panel has a most favored nation clause with all of the managers which requires the managers to give the State lower rates if they give a new customer better rates.

Upon a motion by Senator Leatherman, seconded by Mr. Lander, the Board approved the Investment Panel’s recommendations to suspend additional funding to Boston Company, to invest any contributions that would have been allocated to Boston Company under the current funding schedule in the Passive Small Cap Fund or with the new small cap value manager, as applicable, until further action by the Board, and adopted the amendments to the FY 2002-03 Annual Investment Plan to conform to the recommendations.

Information relating to this matter has been retained in this these files and is identified as Exhibit 2.

Adoption of Budget and Control Board Agenda

Upon a motion by Mr. Patterson, seconded by Mr. Lander, the Board adopted the agenda after deleting blue agenda item #11.

Minutes of Previous Meetings

Upon a motion by Mr. Patterson, seconded by Mr. Harrell, the Board approved the minutes of the August 13, 2002, Budget and Control Board meeting; and, acting as the Tobacco Settlement Revenue Management Authority, approved the minutes of the August 13, 2002, Authority meeting.

Blue Agenda

Upon a motion by Mr. Patterson, seconded by Mr. Harrell, the Board approved all items included on the blue agenda. Blue agenda items are identified as such in these minutes.

State Treasurer: Bond Counsel Selection (Blue Agenda Item #1)

The Board approved the following notification of the assignment of bond counsel for conduit issues for which Board approval is requested:

CONDUIT ISSUES:

Description of Issue	Agency/Institution (Borrower)	Borrower’s Counsel	Issuer’s Counsel
$35,000,000 CHS Development Company	South Carolina Jobs-Economic Development Authority	McNair Law Firm	Nelson Mullins Riley & Scarborough
$5,000,000 Knights Manor L.P.	S.C. State Housing Finance & Development Authority	Nexsen Pruet Jacobs & Pollard	Lewis M. Levy

Information relating to this matter has been retained in this these files and is identified as Exhibit 3.

General Services: Easements (Blue Agenda Item #2)

The Board approved the following easements as recommended by the General Services Division:

a.

County Location:

Greenville County

From:

Budget and Control Board

To:

Western Carolina Regional Sewer Authority

Consideration:

$1.00

Description/Purpose:

To install, operate and maintain an effluent diffuser under the Enoree River as part of the Gilder Creek Wastewater Treatment Plant Upgrade/Expansion Project.

b.

County Location:

Greenville County

From:

Budget and Control Board

To:

Western Carolina Regional Sewer Authority

Consideration:

$1.00

Description/Purpose:

To install, operate and maintain an effluent diffuser under the Enoree River as part of the Pelham Wastewater Treatment Plant Upgrade/Expansion Project.

c.

County Location:

Charleston County

From:

Budget and Control Board

To:

South Carolina Electric and Gas Company

Consideration:

$200.00

Description/Purpose:

To construct, operate and maintain a single phase 23kV underground distribution line across the Stono River
connecting two highland areas known as Rushland Plantation on Johns Island.

d.

County Location:

Beaufort County

From:

Budget and Control Board

To:

South Carolina Electric and Gas Company

Consideration:

$868.00

Description/Purpose:

To install, construct, operate and maintain a subaqueous
115kv cable beneath the Beaufort River adjacent to the McTeer Memorial Bridge on SC Highway 802 near Port Royal.

e.

County Location:

Darlington County

From:

Budget and Control Board

To:

City of Hartsville

Consideration:

$1.00

Description/Purpose:

To install, operate and maintain an 18" force main beneath Black Creek adjacent to the US Highway 15-Bypass bridge.

Information relating to this matter has been retained in these files and is identified as Exhibit 4.

General Services: New Lease for the Department of Education-Division of Teacher Quality (Blue Item #3)

Regulation 19-447.1000 requires that leases which commit one million dollars or more in a five-year period be approved by the Board and reviewed by the Joint Bond Review Committee.

The South Carolina Department of Education currently leases 8,399 square feet of office space at 1600 Gervais Street in Columbia to house the Division of Teacher Quality. Their present location does not provide enough space or adequate parking for them to sufficiently perform their duties and there is no other space to expand at their present location. This division has had approximately 15,000 visitors over the past two years. The Department wishes to lease 15,016 square feet of office space on the fifth floor of 3700 Forest Drive to accommodate this staff and program. The proposed lease, to begin December 1, 2002, is for a term of five (5) years with an expiration date of November 30, 2007. The rental rate begins at $14.00 in the first year and averages $14.50 over the term. This rate includes all property operating expenses. Total rent over the five-year period is $1,088,660.

The Department of Education has secured this property through coordination with General Services’ Leasing Unit to obtain fair rates, terms, and conditions. The state’s process is designed to meet the requirements of Regulation 19-447.1000 and the proposed lease terms and conditions are consistent with the state standard lease. Adequate funds are available and a financial plan has been submitted. The Joint Bond Review Committee approved the proposed lease on September 12, 2002.

The Board approved a new lease of 15,016 square feet for the Department of Education to house the Division of Teacher Quality at 3700 Forest Drive in Columbia for a term of five years to begin on December 1, 2002, with an expiration date of November 30, 2007, with a rental rate that begins at $14.00 and averages $14.50 over the term for a total rent of $1,088,660 over the five year period.

Information relating to this matter has been retained in these files and is identified as Exhibit 5.

General Services: Permanent Improvement Projects (Blue Agenda Item #4)

The Board approved the following permanent improvement project establishment requests and budget revisions which were reviewed favorably by the Joint Bond Review Committee:

(a) Summary 2-2003: Item 1. The Citadel

Project: 9582, New Rifle Range Facility – A&E Only

Request: Establish project and budget ($200,000 Other, Gift funds) to design an approximately 16,000 square foot rifle range and training facility at The Citadel. The facility will include a minimum of 20 firing lanes and will meet the requirements associated with military and police weapons related to Homeland Security. The new facility will be capable of holding National Collegiate Athletic Association rifle and air rifle competition events and pistol competition. Auxiliary facilities for the range will include target and shooting mechanisms, weapons cleaning and storage facilities, locker rooms, restrooms, coaches’ offices, a combined classroom and spectator area, and storage areas. (See Attachment 1 of the agenda materials for additional annual operating costs.)

(b) Summary 2-2003: Item 2. Clemson University

Project: 9695, Hardin Hall – Renovation/Demolition

Request: Increase budget to $7,830,000 (add $370,000 Other, Operating Revenue funds) to cover the cost of office and support spaces, furnishings and equipment, move-in costs, and to maintain a small construction contingency for the Hardin Hall renovation.

Project: 9799, SC 93 West – Site Improvements

Request: Establish project and budget ($435,000 Other, Operating Revenue funds) to upgrade land areas and medians associated with the widening of the western portion of SC 93 on the Clemson campus. The work will include upgrading water lines, landscaping and irrigation of the median, additional lighting, and installing a mast arm signal at the intersection of SC 93 and Perimeter Road. The project will enhance the campus entry and improve motorist safety. (See Attachment 2 of the agenda materials for additional annual operating costs.)

(d) Summary 2-2003: Item 4. Winthrop University

Project: 9520, Sims Science Building Addition/Renovation

Request: Increase budget to $22,233,820.65 (add $450,000 Other, Student Fee funds) to cover the cost of outfitting the Sims Science Building with classroom and office furniture, smart technology, and instructional equipment at Winthrop University.

(e) Summary 2-2003: Item 5. Parks, Recreation & Tourism

Project: 9624, Recreation Land Trust Fund

Request: Increase budget to $1,083,475 (add $254,400 Appropriated State funds) to add FY 02-03 Recreation Land Trust Funds allocated to PRT for grants for the acquisition of land in several counties. The sites to be acquired by local entities are located in Charleston, Beaufort, Colleton, Jasper, Berkeley, McCormick, and Chesterfield counties.

(f) Summary 2-2003: Item 6. College of Charleston

Project: 9595, 209 Calhoun Street Acquisition

Request: Increase budget to $275,000 (add $265,000 Other, College Fee funds) to purchase an approximately .10 acre surface parking lot contiguous to the College of Charleston. The acquisition of property will complete a block owned by the College.

(g) Summary 3-2003: Item 1. B&C Board – General Services

Project: 9735, ESC – Robert E. David Elevator Modernization

Request: Increase budget to $400,000 (add $350,000 Other, Federal ESC funds) to proceed with upgrading the elevators at the Employment Security Commission’s Robert E. David Building. The work will include providing additional room lighting, new car door openers, new car door detector screens and new pit ladders, replacing elevator controllers, and renovating the elevator car interior.

(h) Summary 3-2003: Item 2. Clemson University

Project: 9774, Charleston Architectural Building – A&E Only

Request: Increase budget to $350,000 (add $300,000 Other, Institutional Capital Project funds) to support a design competition and the initial architectural and engineering work for Clemson’s Charleston Architectural Center. The competition costs will include printing and mailing expenses, jurors stipends and reimbursables, and poster development. Finalists in the competition will be awarded small A&E contracts to develop a proposal for presentation to the competition jury. The competition winner will subsequently receive the A&E contract for the Charleston Architectural Center.

(i) Summary 3-2003: Item 3. Clemson University

Project 9785, Barre Hall – Basement Renovations

Request: Increase budget to $1,300,000 (add $1,250,000 Other, Institutional Capital Project and Operating Revenue funds) to renovate the 11,000 square foot, unfinished basement space in Barre Hall to accommodate research and general access computer labs and support facilities operated by the Division of Computing and Information Technology (DCIT). The consolidation of DCIT’s laboratories will allow the department to operate more efficiently and to return much needed space to academic departments located in Brackett Hall, Daniel Hall, and Hardin Hall. The work will include expanding the HVAC system into the basement, creating restrooms, suspended ceilings, lighting, and finishes associated with labs and support spaces. (See Attachment 3 of the agenda materials for additional annual operating costs.)

(j) Summary 3-2003: Item 4. Clemson University

Project: 9786, McAdams Hall – Additions/Renovations

Request: Increase budget to $4,600,000 (add $4,450,000 Other, Operating Revenue and Institutional Capital Project funds) to expand McAdams Hall by approximately 22,000 square feet to provide laboratories and offices for the Department of Computer Science. In addition, approximately 12,000 square feet of McAdams Hall space will be renovated and reassigned to Computer Science. This project is the most cost effective method to provide adequate, modern, and competitive space to the Department. Once this project is complete, space occupied in Daniel and Edwards Halls will be returned to other academic programs with space needs. (See Attachment 4 of the agenda materials for additional annual operating costs.)

(k) Summary 3-2003: Item 5. College of Charleston

Project: 9580, Science Center Renovation

Request: Increase budget to $9,000,000 (add $5,000,000 Federal funds) to reflect the receipt of federal funds from NASA for the renovation of the 107,000 square foot Science Center at the College of Charleston. (See Attachment 5 of the agenda materials for additional annual operating costs.)

(l) Summary 3-2003: Item 6. College of Charleston

Project: 9583, School of Business – New Construction

Request: Increase budget to $9,000,000 (add $1,000,000 Institution Bond funds) to revise the scope to allow for the development of the first floor of the Tate Center as part of the construction of the new School of Business at the College of Charleston. The new School of Business is being constructed on a site that is contiguous to the Tate Center for Entrepreneurship. The facility will connect to the Tate Center from all floors.

(m) Summary 3-2003: Item 7. College of Charleston

Project: 9594, Stern Student Center Renovation

Request: Increase budget to $1,000,000 (add $400,000 Other, Auxiliary funds) to cover the cost to complete the renovations to the Stern Student Center at the College of Charleston.

(n) Summary 3-2003: Item 8. USC – Columbia

Project: 9904, Energy Master Plan – Chiller Replacement – Phase I

Request: Increase budget to $4,200,000 (add $1,200,000 Appropriated State and Other, Institutional funds) to expand the energy infrastructure to the west campus area of the University of South Carolina. This project will replace Chiller #1 in the East Energy Facility and Chiller #1 in the West Energy Facility. The work will include repair and expansion of underground infrastructure of the energy distribution system. This project is the first phase of a seven-phase plan to replace chillers in the energy facilities on campus.

(o) Summary 3-2003: Item 9. USC – Columbia

Project: 9932, Columbia Campus Food Service Facilities Renovation/Expansion

Request: Establish project and budget ($3,350,000 Other, Cafeteria Renovation and Replacement funds) to renovate food service facilities at the Columbia Campus of the University of South Carolina. The work will include upgrading building systems and providing the necessary infrastructure to support the improvements to the food service facilities that are being completed by the food service vendor. The food service facilities are located in the Russell House, Capstone, Patterson Hall, Thomas Cooper Library, the new Fitness/Wellness Center, 1600 Hampton Street, Phase III Housing, the Business Administration Building, the Humanities Office Building, Bates House, the Law Center, the National Advocacy Center, and the Coliseum.

(p) Summary 3-2003: Item 10. Medical University

Project: 9747, Thurmond/Gazes Biomedical Research Building Chillers Replacement

Request: Establish project and budget ($7,500,000 Institution Bond funds) to replace nine existing roof mounted air-cooled chillers with two ground level water-cooled chillers at the Thurmond/Gazes Biomedical Research Building. Two of the air-cooled chillers have failed and the remaining units are maintenance intensive. During this construction, the roof will be replaced as the membrane deteriorated due to repeated mechanical repairs on the existing chillers. These projects were included in the 2002 CPIP for FY 02-03 and FY 03-04. (See Attachment 6 of the agenda materials for annual operating cost savings.)

(q) Summary 3-2003: Item 11. Vocational Rehabilitation

Project: 9559, Charleston VR Center – Site Development

Request: Increase budget to $505,000 (add $300,000 Other, Earned Federal and Workshop Revenue funds) to develop the site at the Charleston Vocational Rehabilitation Center to improve availability of parking for clients and staff and to move the entrance to Dorchester Road to make ingress and egress to the facility safer and more efficient. Changes in traffic patterns and growth in the region have created unsafe conditions and additional parking and access to Dorchester Road will help alleviate these problems.

(r) Summary 3-2003: Item 12. Department of Corrections

Project: 9644, Lieber General Renovations

Request: Establish project and budget ($245,000 Other, Property Sale Proceeds – Givens funds) to perform general renovations at Lieber Correctional Institution. The work includes renovations to the ceilings, floors, walls, mechanical, electrical and plumbing systems, repairs and renovations to the roof, painting, minor site/paving work, and installation of fixed furniture and equipment. This work is needed to help bring the institution up to more efficient operating conditions and to ensure that it will meet correctional association standards.

(s) Summary 3-2003: Item 13. Department of Corrections

Project: 9628, General Roof Renovations

Request: Increase budget to $1,518,366.42 (add $500,000 Capital Improvement Bond funds) to repair and replace deteriorated roofs on various buildings throughout the Department of Corrections. State Appropriated funds are being replaced with funds received from the sale of fixed assets.

(t) Summary 3-2003: Item 14. Department of Corrections

Project: 9646, Leath 256-Bed Housing Unit and Infrastructure Upgrade

Request: Establish project and budget ($6,200,000 Capital Improvement Bond and Federal funds) to construct a 256-bed medium security housing unit and upgrade the existing infrastructure to accommodate the increased population at the Leath Correctional Institution. The 40,000 square foot housing unit will be a two-story concrete and masonry structure to house female inmates. The infrastructure upgrade will expand and renovate the food service, the canteen, the laundry area, the commissary, utility and site capabilities to ensure the additional bed spaces are adequately supported. (See Attachment 7 of the agenda materials for additional annual operating costs.)

(u) Summary 3-2003: Item 15. Department of Corrections

Project: 9649, CGCI 192-Bed Housing Unit and Infrastructure Upgrade

Request: Establish project and budget ($5,650,000 Capital Improvement Bond and Federal funds) to construct a 192-bed housing unit and upgrade the existing infrastructure to receive and evaluate the incoming female population at Camille Graham Correctional Institution. The 30,000 square foot housing unit will be a two-story concrete and masonry structure with a central control room and administrative, support and program space. The infrastructure upgrade will expand and renovate the food service area, the canteen, the laundry area, the commissary, utility and site capabilities to ensure the additional bed spaces are adequately supported. (See Attachment 8 of the agenda materials for additional annual operating costs.)

(v) Summary 3-2003: Item 16. Department of Corrections

Project: 9650, Kirkland 88-Bed Psychiatric Hospital

Request: Establish project and budget ($5,340,000 Capital Improvement Bond and Federal funds) to construct a 28,000 square foot, 88-bed psychiatric hospital at Kirkland Correctional Institution. The hospital will be a two-story concrete and masonry structure with a central control room and administrative, support and program space to support the population. (See Attachment 9 of the agenda materials for additional annual operating costs.)

(w) Summary 3-2003: Item 17. Department of Corrections

Project: 9651, Tyger River – Two New Prison Industries Buildings Construction

Request: Establish project and budget ($700,000 Other, Prison Industries Revenue funds) to construct a 16,000 square foot metal building on a concrete slab for wood finishing operations and a 20,000 square foot metal building for storage of wood flooring products at Tyger River Correctional Institution. This project will be accomplished in two phases and will employ an additional 50 inmates.

(x) Summary 3-2003: Item 18. Clemson PSA

Project: 9534, Lazer Hall – Restoration

Request: Establish project and budget ($320,000 Other, Insurance Reserve Fund Recovery funds) to restore the 2,200 square foot kitchen and dining area of Lazer Hall at the Cooper Leadership Center in Summerton which suffered extensive damage from a fire on August 10, 2002. This project will also replace all damaged equipment, and include demolition removal and disposal of the damaged areas of the building and equipment.

(y) Summary 3-2003: Item 19. Department of Natural Resources

Project: 9843, Charleston – Morris Island Acquisition

Request: Establish project and budget ($20,000 Federal funds) to cover the cost of an appraisal, environmental study and other investigative studies required to adequately evaluate property prior to purchase. The Department of Natural Resources is considering purchasing the approximately 125-acre Morris Island.

(z) Summary 3-2003: Item 20. Department of Natural Resources

Project: 9844, Williamsburg/Georgetown - Coastal Forest Ecosystem - Hollingsworth Tract Acquisition

Request: Establish project and budget ($25,000 Federal funds) to cover the cost of an appraisal, environmental study and other investigative studies required to adequately evaluate property prior to purchase. The Department of Natural Resources is considering purchasing 12,500 acres of forest on the Santee River.

(aa) Summary 3-2003: Item 21. Department of Natural Resources

Project: 9845, Colleton – Pine Island Acquisition

(bb) Summary 3-2003: Item 22. Department of Natural Resources

Project: 9846, Greenville – Poinsett Bridge Acquisition

Request: Establish project and budget ($10,000 Other, Heritage Land Trust funds) to cover the cost of an appraisal, environmental study and other investigative studies required to adequately evaluate property prior to purchase. The Department of Natural Resources is considering purchasing the Poinsett Bridge and approximately 116 acres in Greenville County.

(cc) Summary 3-2003: Item 23. B&C Board – General Services

Project: 9741, ESC – Beaufort – OSRC – Land Acquisition/Construction

Request: Increase budget to $2,453,000 (add $543,000 Other, ESC Federal/Reed Act funds) to purchase approximately 4.9 acres of land located in Beaufort County to construct a new Employment Security Commission One Stop Resource Center building.

(dd) Summary 3-2003: Item 24. Clemson University

Project: 9800, Clemson University Research Building – Construction/Land Acquisition

Request: Establish project and budget ($18,000,000 Institution Bond funds) to purchase approximately 38.7 acres of land and construct an 84,000 square foot research complex consisting of two buildings located in the SC Research Park in Anderson County. One building will contain 27,000 square feet of office, meeting and analytical laboratory space, and the adjoining 57,000 square foot building will contain labs especially equipped to handle all types of chemicals, as well as facilities for advanced laser and spectroscopy research. (See Attachment 10 of the agenda materials for additional annual operating costs.)

(ee) Summary 3-2003: Item 26. Technical & Comprehensive Education

Project: 9853, Greenville – Theater Building Purchase

Request: Establish project and budget ($2,113,500 Federal and Other, Local funds) to purchase approximately one acre of land and a 24,240 square foot building, formerly known as the Astro Theater, located contiguous to Greenville Technical College. The building will be renovated to house faculty office and classroom space to include large open labs for carpentry, painting, masonry, flooring and wallpaper installation, and other courses as developed. (See Attachment 11 of the agenda materials for additional annual operating costs.)

(ff) Summary 3-2003: Item 27. Technical & Comprehensive Education

Project: 9854, Greenville – Cintas Building Donation/Renovation

Request: Establish project and budget ($540,000 Other, Local funds) to accept the donation of approximately seven acres of land and a 91,000 square foot building located near the Barton main campus. The building will be renovated to accommodate ten classrooms and necessary support facilities so that Greenville Technical College can relocate the entire automotive and diesel training program to this site. (See Attachment 12 of the agenda materials for additional annual operating costs.)

(gg) Summary 3-2003: Item 29. Department of Natural Resources

Project: 9839, Aiken/Barnwell – Ditch Pond Carolina Bay Acquisition

Request: Increase budget to $351,000 (add $331,000 Other, Heritage Land Trust funds) to purchase approximately 321 acres of undeveloped land located in Aiken and Barnwell Counties to establish a heritage preserve to protect the state’s significant natural and cultural resources and to provide public recreation, education and research opportunities.

(hh) Summary 3A-2003: Item 1. Technical & Comprehensive Education

Project: 9848, Greenville – New Student Intake Center McAlister Square Renovation

Request: Increase budget to $4,000,000 (add $1,000,000 Other, Local funds) to cover the costs of fireproofing on the second floor, flooring, interior and exterior storefronts, bookstore lighting, signage, additional HVAC requirements beyond original estimates, and to bid the climate differential at the new Student Intake Center at Greenville Technical College.

(ii) Summary 4-2003: Suppl 1. Department of Mental Health

Project: 9683, Morris Village Fire Retardant Treated Wood Truss Replacement

Request: Establish project and budget ($200,000 Other, Medicaid funds) to perform necessary A&E reviews to determine the full scope and budget for repairs and renovations that will be required at the Morris Village Alcohol and Drug Treatment Center which was caused by the use of Fire Retardant Treated Wood (FRTW) during original construction. This was a common construction practice at the time. A non-FRTW roof structure will replace the existing system. This will be a covered loss under the Insurance Reserve Fund.

Information relating to this matter has been retained in these files and is identified as Exhibit 6.

General Services: Property Transactions (Blue Agenda Item #5)

The Board approved the following property acquisitions:

a.

Agency:

Clemson University

Acreage:

38± acres

Location:

SC Research Park in Anderson County

County:

Anderson County

Purpose:

To be the site of an 84,000 square foot research facility.

Appraised Value:

$385,390

Price/Seller:

$350,000/SC Research Authority

Source of Funds:

Institution Bonds

Project Number:

H12-9798

Environmental Study:

Approved

Additional Annual Op Cost/SOF:

Construction of an 84,000 square foot research facility is estimated at $16 million and will be paid from Institution Bonds. Additional annual operating costs are estimated at $470,000 and will be paid from university funds.

Approved By:

CHE on 9/5/02; JBRC on 9/12/02

b.

Agency:

College of Charleston

Acreage:

.10± acres

Location:

209 Calhoun Street in Charleston

County:

Charleston County

Purpose:

To be used for surface parking and to complete acquisition of the entire block as College property.

Appraised Value:

$262,000

Price/Seller:

$262,000/Bethel United Methodist Church

Source of Funds:

Other, College Fees

Project Number:

H15-9595

Environmental Study:

Approved

Additional Annual Op Cost/SOF:

No additional annual operating costs are anticipated.

Approved By:

CHE on 9/5/02; JBRC on 9/12/02

c.

Agency:

Technical College of the Lowcountry

Acreage:

.3± acres and a 1,400 square foot residence

Location:

874 Ribaut Road in Beaufort

County:

Beaufort County

Purpose:

To acquire property for future campus expansion that is contiguous to the campus.

Appraised Value:

$228,000

Price/Seller:

$228,000/Michael Keehn

Source of Funds:

Other - Local

Project Number:

H59-9846

Environmental Study:

Approved

Additional Annual Op Cost/SOF:

Additional annual operating costs for insurance and maintenance are expected to be minimal and will be paid from rent proceeds.

Approved By:

CHE on 9/5/02; JBRC on 9/12/02

d.

Agency:

Greenville Technical College

Acreage:

1± acre and a 24,240 square foot theater building

Location:

736 South Pleasantburg Drive in Greenville

County:

Greenville County

Purpose:

To provide needed space for Continuing Education classes and for future needs.

Appraised Value:

$810,000

Price/Seller:

$810,000/Armstrong, LLC

Source of Funds:

Federal, EDA Grant and Other, Local

Project Number:

H59-9853

Environmental Study:

Approved – Asbestos removal costs of $46,460 will be paid by the seller.

Additional Annual Op Cost/SOF:

General renovations are estimated at $1,212,000 and will be paid from local and grant funds. Additional annual operating costs are estimated at $24,812 and will be paid from local funds.

Approved By:

CHE on 9/5/02; JBRC on 9/12/02

e.

Agency:

Greenville Technical College

Acreage:

7.2± acres and a 91,000 square foot building

Location:

227 North Pleasantburg Drive in Greenville

County:

Greenville County

Purpose:

To provide property for expansion of the Automotive
and other programs at a new location.

Appraised Value:

N/A

Price/Seller:

Donation/T. Walter Brashier

Source of Funds:

N/A

Project Number:

H59-9854

Environmental Study:

Approved

Additional Annual Op Cost/SOF:

General renovations are estimated at $540,000 and will be paid from local funds. Additional annual operating costs are estimated at $80,500 and will be paid from local and other funds.

Approved By:

CHE on 9/5/02; JBRC on 9/12/02

(f)

Agency:

Employment Security Commission

Acreage:

4.9± acres

Location:

Off Hwy 170 south of Goethe Hill Road

County:

Beaufort County

Purpose:

To be the site of a new ESC facility.

Appraised Value:

$543,000

Price/Seller:

$543,000/Victoria Middleton, Inez Mbornio,
Carrie Garvin, et al.

Source of Funds:

Other - Federal

Project Number:

F03-9741

Environmental Study:

Approved

Additional Annual Op Cost/SOF:

Construction of a new ESC facility is estimated at $1.25 million and will be paid from Federal funds. Additional annual operating costs are estimated at $35,000 and will be paid from Federal funds.

Approved By:

JBRC on 9/12/02

(g)

Agency:

Department of Natural Resources

Acreage:

9± acres

Location:

Three miles northwest of Aiken on Mayfield Road

County:

Aiken County

Purpose:

To expand the Henderson Heritage Preserve.

Appraised Value:

N/A

Price/Seller:

Donation/Jim and Sharon Stewart

Source of Funds:

N/A

Project Number:

P24-9837

Environmental Study:

Approved

Additional Annual Op Cost/SOF:

No additional annual operating costs are anticipated.

Approved By:

JBRC on 9/12/02

(h)

Agency:

Department of Natural Resources

Acreage:

321± acres

Location:

On US Hwy 78 four miles west of Williston

County:

Aiken and Barnwell Counties

Purpose:

To establish a Heritage Preserve to protect the state’s natural resources.

Appraised Value:

$365,000

Price/Seller:

$321,000/Margaret K. Hoffmeier

Source of Funds:

Heritage Land Trust Funds

Project Number:

P24-9839

Environmental Study:

Approved

Additional Annual Op Cost/SOF:

No additional annual operating costs are anticipated.

Approved By:

JBRC on 9/12/02

The Board also approved the following property sales:

i.

Agency:

Department of Transportation

Acreage:

.409± acres and a 2,968 square foot building

Location:

135 South Calhoun Street in Greenville

County:

Greenville County

Purpose:

To dispose of surplus real property.

Appraised Value:

$80,000 as of 6/26/02

Price/Purchaser:

Not less than appraised value/To be determined

Disposition of Proceeds:

To be retained by DOT.

Approved By:

N/A

j.

Agency:

Department of Transportation

Acreage:

.07± acres and a 2,608 square foot building

Location:

644 East Stone Avenue in Greenville

County:

Greenville County

Purpose:

To dispose of surplus real property.

Appraised Value:

$145,000 as of 6/26/02

Price/Purchaser:

Not less than appraised value/To be determined

Disposition of Proceeds:

To be retained by DOT.

Approved By:

N/A

k.

Agency:

Department of Transportation

Acreage:

2.0± acres

Location:

On Highway 302 at Pineshadow Way in New Ellenton

County:

Aiken County

Purpose:

To dispose of surplus real property.

Appraised Value:

$12,000 as of 8/1/02

Price/Purchaser:

Not less than appraised value/To be determined

Disposition of Proceeds:

To be retained by DOT.

Approved By:

N/A

The Board further approved the following property conveyances:

l.

Agency:

Department of Parks, Recreation and Tourism

Acreage:

600± acres

Location:

On Lynches River

County:

Florence County

Purpose:

To transfer Lynches River State Park to Florence County for their continued operation of the park.

Appraised Value:

N/A

Price/Purchaser:

N/A/Florence County

Approved By:

N/A

m.

Agency:

Patriots Point Development Authority

Acreage:

18.49± acres to be conveyed and .8± acre granted as an easement

Location:

On Patriots Point Boulevard in Mt. Pleasant

County:

Charleston County

Purpose:

To provide for improvements including the widening and redesign of Patriots Point Boulevard.

Appraised Value:

N/A

Price/Transferred To:

N/A / Town of Mt. Pleasant

Approved By:

N/A

Additional Information:

This is a modification of the conveyance approved by the Board on March 26, 2002. The transfer of 18.49± acres and the granting of an easement over an additional .8± acre are needed in order to satisfy a portion of the Authority’s assessment required by the municipal improvement district created to make improvements to Patriots Point Boulevard.

[Secretary’s Note: Mr. Harrell asked the Board to recognize Mr. Harry Hallman, Mayor of Mt. Pleasant with regard to item 5.m. concerning the Patriots Point Development Authority.]

Information relating to this matter has been retained in these files and is identified as Exhibit 7.

General Services: Agency Retirement Incentive Plan and Voluntary Separation Program Reports (Blue Item #6)

At its June 12, 2001, meeting, the Board approved guidelines for agency Retirement Incentive Plans and Voluntary Separation Programs. According to these guidelines, agencies are required to report the results of Retirement Incentive Plans and Voluntary Separation Programs to the Board. Participating agencies estimate a total net cost savings of $43,844,327 (all funding sources) over a two fiscal year period. The Board was provided summary reports that outlined the initial results of agencies that have offered and completed Retirement Incentive Plans and Voluntary Separation Programs.

The Board received as information the Agency Retirement Incentive Plan and Voluntary Separation Program Reports.

Information relating to this matter has been retained in these files and is identified as Exhibit 8.

Procurement Services Division: Procurement Services Division (Blue Item #7)

In accord with Section 11-35-1230 of the South Carolina Consolidated Procurement Code, the Board received as information a report that the Procurement Services Division had audited the procurement activity of the Administrative Law Judge Division, State Accident Fund, South Carolina Office of Appellate Defense, South Carolina Department of Archives and History, South Carolina Higher Education Tuition Grants Commission, South Carolina Human Affairs Commission, South Carolina Office of Indigent Defense, South Carolina Department of Insurance, South Carolina State Library, South Carolina Medical Malpractice Patients’ Compensation Fund, South Carolina Commission for Minority Affairs, South Carolina Commission on Prosecution Coordination, South Carolina Second Injury Fund, and the South Carolina Sentencing Guidelines, none of which requested certification above the $5,000 limit authorized by the Procurement Code.

In accord with Section 11-35-1210, the Board also approved procurement certification for the following agency for the following limits for a period of three years:

Forestry Commission: goods and services, $50,000* per commitment; information technology, $25,000* per commitment; consultant services, $25,000* per commitment. (*Total potential purchase commitment whether single-or multi- year contracts are used).

Information relating to this matter has been retained in these files and is identified as Exhibit 9.

Local Government: Grant Requests (Blue Agenda Item #8)

The Office of Local Government advised the Board of the following grant request:

Grantee: City of Greer/CPW

Grant Request: $399,375

Purpose/Description: Construction of sanitary sewer lines to serve approximately 220 acres fronting Highway 29 between the J. Verne Smith Parkway and Gap Creek Road

Project Impact: The availability of sewer service will enable economic development to occur in this area. One hundred fifty jobs are anticipated to be created within the next five years.

Cost of Project: $434,100

OLG Recommendation: $399,000. Local funds will provide the balance.

The Board approved the following grant request as recommended by the Office of Local Government: City of Greer/Greer CPW, $399,000.

Information relating to this matter has been retained in these files and is identified as Exhibit 10.

Probation, Parole, and Pardon Services: Plan for Per Day Charge for Housing and Food at Department’s Restitution Centers (Blue Agenda Item #9)

The Department of Probation, Parole and Pardon Services (the Department) requested that the Board approve its proposal to charge offenders based on a sliding scale a per day charge for housing and food at the Department’s Restitution Centers. This charge will be based on the hourly rate the offender earns from their place of employment and shall be adjusted as necessary to meet their ability to pay. The per day charge shall be disbursed from the offender’s salary in accordance with S. C. Code Section 24-21-480. In accordance with Proviso 38.10, the per day charge will not exceed the actual daily costs of the Restitution Centers. The actual daily operational costs for Department Restitution Centers in FY 2001-02 was $31.95 per day. A copy of the plan for the per day charge for housing and food at the Department’s Restitution Centers was included as part of the agenda materials. Approval of the plan is required by Proviso 38.10 of the FY 2002-03 Appropriation Act.

The Board approved the Department of Probation, Parole and Pardon Services’ plan for the per day charge for housing and food at the Department’s Restitution Centers.

Information relating to this matter has been retained in these files and is identified as Exhibit 11.

Executive Director: Revenue Bonds (Blue Agenda Item #18)

The Board adopted the following proposals to issue revenue bonds:

a. Issuing Authority: Jobs-Economic Development Authority

Amount of Issue: $6,500,000 Economic Development Revenue Bonds

Allocation Needed: $6,500,000

Name of Project: Americast Concrete Products, LLC

Employment Impact: create employment for approximately 8 people within 24 months and retain 25 current positions

Project Description: construction and equipping of facilities to be used primarily to manufacture concrete pipe and to be located in Charleston County

Note: negotiated private sale or letter of credit

Bond Counsel: April C. Lucas, Nexsen Pruet Jacobs & Pollard, LLC

(Exhibit 12)

b. Issuing Authority: Jobs-Economic Development Authority

Amount of Issue: $10,000,000 Economic Development Revenue Bonds

Allocation Needed: -0-

Name of Project: The Blood Connection, Incorporated

Employment Impact: maintain 114 FT/10 PT jobs; add 39 in 12 months/42 in 24 months

Project Description: provider of blood and blood components to hospitals, dialysis center and other health care providers; site development work and construction of facilities at 5 locations

Note: private placement

Bond Counsel: Kathleen Crum McKinney, Haynsworth Sinkler Boyd, P.A.

(Exhibit 13)

c. Issuing Authority: Jobs-Economic Development Authority

Amount of Issue: $15,100,000 Economic Development Revenue Bonds (previously approved 3/27/01)

Allocation Needed: -0-

Name of Project: Carolina Piedmont Foundations, Inc. and CPF Properties, LLC

Employment Impact: 2 – 4 within 12 months and total of 5 within 24 months

Project Description: acquisition, construction, and furnishing of new campus housing, a living-learning center, facilities management, athletic facilities and support services, including land, building and campus development

Note: private placement

Bond Counsel: Kathleen Crum McKinney, Haynsworth Sinkler Boyd, PA

(Exhibit 14)

d. Issuing Authority: Jobs-Economic Development Authority

Amount of Issue: $3,500,000 Economic Development Revenue Bonds (airport facilities revenue bonds)

Allocation Needed: -0-

Name of Project: Mercury Air Group, Inc.

Employment Impact: keep 18 jobs, add 6 new jobs in 12 months and 9 in 24 months

Project Description: construction of hangar and shop area to be used for aircraft storage and maintenance and office space related thereto
Note: private placement

Bond Counsel: Kathleen Crum McKinney, Haynsworth, Sinkler Boyd, PA

(Exhibit 15)

e. Issuing Authority: Jobs-Economic Development Authority

Amount of Issue: $4,000,000 Economic Development Revenue Bonds

Allocation Needed: -0-

Name of Project: National Council of Examiners for Engineering and Surveying

Employment Impact: keep 40 people, add 3 within 12 months and 5 within 24 months

Project Description: construction of new building, including furnishings and equipment, for use in development and scoring of professional examinations for engineers and land surveyors and study materials and services
Note: private placement

Bond Counsel: Kathleen Crum McKinney, Haynsworth Sinkler Boyd, PA

(Exhibit 16)

f. Issuing Authority: Jobs-Economic Development Authority

Amount of Issue: $2,300,000 Economic Development Revenue Bonds

Allocation Needed: $2,300,000

Name of Project: Parat Automotive USA, Inc.

Employment Impact: keep 1 job, add 25 new jobs in 12 months and 35 in 24 months

Project Description: manufacture and processing of automotive components for original equipment manufacturers
Note: private placement

Bond Counsel: Kathleen Crum McKinney, Haynsworth Sinkler Boyd, P.A.

(Exhibit 17)

g. Issuing Authority: Berkeley County

Amount of Issue: Not Exceeding $2,000,000 Special Source Revenue Bonds

Allocation Needed: -0-

Name of Project: CropTech Corporation

Employment Impact: approximately 100 additional full-time jobs in the county and neighboring areas within two years from the opening of the facility

Bond Counsel: J. Wesley Crum, Haynsworth Sinkler Boyd, P.A.

(Exhibit 18)

h. Issuing Authority: Hampton County

Amount of Issue: $3,500,000 Hospital Facilities Revenue Refunding Bonds ($3,500,000 refunding involved)

Allocation Needed: -0-

Name of Project: Hampton Regional Medical Center

Employment Impact: N/A

Project Description: refunding of $3,500,000 Hampton County, South Carolina Hospital Facilities Revenue Note (Hampton Regional Medical Center Project) Series 1998, the proceeds of which were used for the renovation and construction of certain real property improvements and the installation of certain equipment, fixtures and furnishing therein, which capital improvements will be used for the following: (i) expansion and upgrade of the Hospital’s information systems; (ii) construction and equipping of the Hospital’s information system; (iii) renovation and equipping of the operating room; and (iv) other costs ancillary thereto.

Bond Counsel: Alan M. Lipsitz, Nexsen Pruet Jacobs & Pollard, LLC

(Exhibit 19)

i. Issuing Authority: Kershaw County

Amount of Issue: Not Exceeding $6,000,000 Hospital Facilities Revenue Bonds

Allocation Needed: -0-

Name of Project: Kershaw County Medical Center

Employment Impact: N/A

Project Description: renovating and equipping the existing facilities at the Kershaw County Medical Center to be used by several services, included but not limited to oncology series, gastroenterology services and outpatient surgery services, and the acquisition of a new computer system and other equipment to be used at the Kershaw County Medical Center

Bond Counsel: Daniel R. McLeod, McNair Law Firm, P. A.

(Exhibit 20)

j. Issuing Authority: Richland County

Amount of Issue: Up to $155,000,000 Environmental Improvement Revenue Refunding Bonds (up to $155,000,000 refunding involved)

Allocation Needed: -0-

Name of Project: Eastover Mill of International Paper Company

Employment Impact: N/A

Project Description: refunding of issuer’s Solid Waste Disposal Facilities Revenue Bonds (Union Camp Corporation Project) Series 1991A, Solid Waste Disposal Facilities Revenue Bonds (Union Camp Corporation Project) Series 1991B, Solid Waste Disposal Facilities Revenue Bonds (Union Camp Corporation Project) Series 1992A, Pollution Control Revenue Refunding Bonds (Union Camp Corporation Project) Series 1992B and Pollution Control Revenue Refunding Bonds (Union Camp Corporation Project) Series 1992C issued to finance or refinance the costs of the acquisition and construction of certain pollution control facilities at the Eastover Mill.

Bond Counsel: Michael F. Dow, McGuireWoods, L.L.P.

(Exhibit 21)

k. Issuing Authority: State Housing Finance and Development Authority

Amount of Issue: $80,000,000 Not Exceeding Mortgage Revenue Bonds

Allocation Needed: $65,000,000

Name of Project: Mortgage Revenue Bonds

Employment Impact: N/A

Project Description: provides below market interest rate mortgages to predominately first-time low and moderate income home buyers

Bond Counsel: Lewis M. Levy, General Counsel, State Housing Finance and Development Authority

(Exhibit 22)

l. Issuing Authority: State Housing Finance and Development Authority

Amount of Issue: $2,960,000 Multifamily Rental Housing Revenue Bonds

Allocation Needed: $2,960,000

Name of Project: Poplar Square Apartments

Employment Impact: N/A

Project Description: acquisition and rehabilitation of 100-unit apartment development located in Sumter, SC for low and moderate income tenants

Bond Counsel: Lewis M. Levy, General Counsel, State Housing Finance and Development Authority

(Exhibit23)

m. Issuing Authority: State Housing Finance and Development Authority

Amount of Issue: $6,500,000 Multifamily Rental Housing Revenue Bonds

Allocation Needed: $6,500,000

Name of Project: Palmetto Village Apartments at Lexington and Palmetto Village Apartments at Kneece Road

Employment Impact: N/A

Project Description: two 60-unit apartment developments for senior citizens located in Lexington and Richland Counties

Bond Counsel: Lewis M. Levy, General Counsel, State Housing Finance and Development Authority

(Exhibit 24)

n. Issuing Authority: State Housing Finance and Development Authority

Amount of Issue: $7,410,000 Multifamily Rental Housing Revenue Bonds

Allocation Needed: $7,410,000

Name of Project: Spring Grove Apartments

Employment Impact: N/A

Project Description: acquisition and rehabilitation of 200-unit apartment development located in Taylors, SC for low and moderate income tenants

Bond Counsel: Lewis M. Levy, General Counsel, State Housing Finance and Development Authority

(Exhibit 25)

Information relating to this matter has been retained in these files and is identified as Exhibits 12 through 25, respectively.
Board of Economic Advisors: Revenue Briefing (Regular Session Item #1)

The Board received a briefing from the Board of Economic Advisors (BEA) regarding the current fiscal year’s revenue trends. Jim Bradley, chairman of the BEA, appeared before the Board on this item.

Mr. Bradley stated that a letter had been sent to Governor Hodges and the Board informing them that a meeting was called at the request of Will McCain during the prior week to review the fiscal year 2003 estimate. He stated that, although he did not agree, the BEA adopted a reduction of revenues of $331 million in the estimate for the current year. He said that was based upon an assumption that revenues would grow at 4% over what was realized last year.

Governor Hodges asked how much new information did the BEA have from the earlier forecast that was available. Mr. Bradley stated that at the time the BEA met they only had July’s information that represented about a half-month’s worth of revenue. He said that his position was that it was too premature to act because there was very little information for this fiscal year. He stated that the Department of Revenue provided verbal figures that showed a number of positive indicators based on collections. He noted that sales tax revenues were up about 7% or 8% over August of 2001. He said that the other two members of the BEA felt they needed to act immediately because they saw no way the estimate could be reached, but that he felt it was premature to act because there was so little information at that point. Mr. Bradley further stated that there is now a little more information that indicates that the original estimate may be met.

Governor Hodges asked Mr. Bradley when would the BEA’s next meeting take place. Mr. Bradley stated that a briefing meeting is scheduled for mid-October and a regional advisory group meeting in late October to prepare for the November meeting to set the estimate for next year. He stated that historically the BEA has revised, if necessary, the current year’s estimate at that time. He noted that it has been his experience that the BEA has waited until the first quarter’s results were in before a decision is made to adjust the estimate. He said that is why he thought it was premature to adjust the estimate.

Senator Leatherman asked Mr. Bradley whether the estimate that was given was 4% over the previous year’s collections. Mr. Bradley stated the original estimate for this year was based upon 4% growth over what was expected to come in last spring. Senator Leatherman commented that the estimate really has not been reduced and that the same 4% was used and confined to the known revenue. Mr. Bradley concurred that that was mathematically correct. However, Mr. Bradley added that it was expected that there would have been strong growth in the spring that would have resulted in significant increase in revenue. He stated that since that did not happen there is more room for growth. Mr. Bradley said that the expectation was that there would be revenue expansion last spring and another 4% on top of that.

Mr. Bradley stated the State is ahead of what is a better benchmark than last year. He said that last year, a not so typical year, is the first year since 1955 that the State has had negative growth. He said looking at fiscal year 2000 the State’s revenues are up approximately 9% over collections at that same point in time, which he said is a better benchmark. He stated that if the 9% growth is realized for the year, it would exceed the estimate that was made in November 2001. Senator Leatherman replied that he is not interested in using the 2000 fiscal year as a benchmark and that he wants to know where the State is today. He stated that the gross general fund revenue for July-August of fiscal year 01-02 was $709 million and for July-August of 02-03 the gross revenue is $687 million. He noted that this indicated that revenues are down over 3.2% from this time last year. Mr. Bradley acknowledged that revenues are down some relative to this time last year, but stated that last year is not a good year to use because of "911".

During further discussion Senator Leatherman stated the original projection was a 10.2% growth above last year to which Mr. Bradley responded that was correct relative to last year’s actions. Senator Leatherman said that would mean a 12.2% growth for the remaining ten months and asked Mr. Bradley whether that was possible. Mr. Bradley replied that it is possible to meet that growth rate if the State is in an economic recovery. He stated if the state is headed into a deeper recession, then the estimate will not be reached. However, he said that if there is 9% growth over three years ago, as shown in the first three months of this year, the estimate would be exceeded.

Mr. Harrell asked Mr. Bradley when was the last time the State grew at a rate of 12.2%. Mr. Bradley responded that he could not say exactly, but that after 1991-1992 the state grew at 9.9% and 9.2% the following two years coming out of that recession. He stated that it has been nearly 20 years since the State last hit double digit growth. He stated that it is fairly typical during the years coming out of a recession that there is a significant growth swing in revenue. Mr. Bradley stated that is why it is important to track what is happening this year to see if the growth patterns that of the past. He stated that last year was a very atypical year and had the growth continued at the same rate as experienced in August of last year the succeeding budget cuts would not have occurred and there would have been no shortfall.

Governor Hodges asked what Alan Greenspan was saying about the economy. Mr. Bradley said Mr. Greenspan gave no indication that he would be cutting interest rates further because he was assured that the recovery was in place. He also stated the Treasury Secretary has stated that the foundation has been laid for a solid recovery. Mr. Bradley further stated that there was an economic summit in August 2002 in which the President was assured that the country was back in a recovery stage. He said that the numbers indicate a recovery is in progress as is reflected in July with retail sales being up 1% over the prior month.

Mr. Bradley stated that if the State experiences double digit growth in revenues the estimate will be met. Mr. Harrell asked whether the State has hit double digit growth the last couple of months. Mr. Bradley replied that the State had not and that the growth is negative relative to July and August 2001 by a very small amount. Mr. Harrell noted that the growth the State would need over the next 10 months is greater than what the state has experienced in the last 20 years. He asked whether the State would need growth, as a percentage, greater than what has occurred in the last 20 years in order to meet the estimate. Mr. Bradley stated that the State would need a 10.2% growth rate over last year. He said that the last time the State hit that kind of percentage was in 1983 or 1984 when the State experienced a 12% growth increase. He stated that this typically happens coming out of a recession. Mr. Harrell commented that the State started the first two months of this year not coming out of the recession and therefore there would be a lag time of any recovery that might occur.

Mr. Bradley further commented that he is not saying that the State will make the estimate, but that it is not unreasonable to think that the estimate will be met and that it is premature to conclude that the State will not meet the estimate. Mr. Harrell asked Mr. Bradley whether it is likely the state will experience 12% growth in the next ten months. Mr. Bradley said that it is possible, but that his guess is the State will experience 9% over the year 2000 which is a better benchmark and that translates into 12%.

Mr. Harrell commented that while there needs to be a 10.3% growth to meet the estimate, there also needs to be a 10.6% growth to meet the expenditures. Senator Leatherman stated that what is needed is 12.3% growth over the next 10 months.

In further discussion, Mr. Bradley stated that the BEA is required to review the estimate quarterly and if the revenues are not in line with the estimate by 4% or more, then the BEA reports this to the Board. Mr. Harrell asked Mr. Bradley whether he thought there was a need to look at reducing the estimate. Mr. Bradley responded that it is better to look at revenues after the end of the quarter rather than during the middle of the quarter. Mr. Bradley said that he did not think action should be taken until all of the information that is needed is available. He said that a month and a half is inadequate to determine if the estimate should be reduced.

Mr. Lander asked what is the average growth for revenues. Mr. Bradley stated that for the four to five years prior to the recession the State averaged 5% to 6% revenue growth. He stated that when the 4% estimate was adopted last November the BEA believed it to be a very conservative estimate. Mr. Lander stated that generally the average is more than 4% growth. Mr. Bradley said that when the economy is growing revenue tends to grow at more than 4%. Mr. Lander asked Mr. Bradley whether his view was the same as the national leadership that there is growth in the national economy. Mr. Bradley responded that the State’s economy does not go in lock step with the economy, but it tends to swing wider, i.e., the State’s economy gets worse quicker and improves quicker than the national economy.

Mr. Harrell asked whether Mr. Bradley was suggesting that the -3.2% growth for last year, which is the biggest decrease in 47 years, would be followed by a bigger increase than the State has experienced in 20 years. Mr. Bradley said that it is quite possible that the increase will occur.

Mr. Patterson asked whether the BEA has put a terrorism factor into the estimate. Mr. Bradley responded that has not been built into the estimate. He said others may have factored the possibility of terrorism into their own economic decisions, but he has based his estimate on the things people are doing in the economy. He stated that the BEA did not put in a float factor for terrorism.

Senator Leatherman commented that he heard Mr. Bradley say that the estimate might be met, but he is not willing to take the chance of affecting so many lives on might or may. He noted that the State was $148 million short when the books closed on June 30. He said that in dealing with the budget for next year $357 million will have to come off the top of the budget. He said agency and institution heads have asked him that if cuts have to be made to do so early as opposed to mid-year because a 5% cut becomes a 10% cut.

Senator Leatherman then made a motion to sequester the capital reserve fund and cut 2% across the board from the budget. Mr. Harrell seconded Senator Leatherman’s motion. In discussing the motion, Mr. Lander said that he concurred in only sequestering the capital reserve fund at this time. He said that sequestering the capital reserve will provide an additional 2% and that he would anticipate using it if the estimates are not as good as hoped for. He said that the reduction should not be taken until a full quarter of revenues are available. He said the Board needs to see what the revenues for the quarter look like and, if the revenues are as devastating as the initial report by the BEA indicates, then the legislature should be called back into session to make systemic cuts. He said that the worst cuts in the world are across the board cuts and that it was premature to do so without better figures. He said if the cuts are still that dramatic he would recommend that Governor Hodges call the Legislature back into session and look at the situation in less than an across the board fashion. He stated that it is getting to the point where cuts are almost immoral.

Mr. Patterson stated he agrees with sequestering the capital reserve fund, but he did not agree with cutting the budget based on premature numbers. He said there is a procedure for cutting the budget that the rating agencies have accepted. He said that the Board needed to get a full quarter’s worth of revenue before something besides sequestering the capital reserve fund is done.

Governor Hodges commented that like the other Board members he has thought a lot about the budget situation. He said the practical reality of what the Board is discussing is asking for 4.5% cuts or greater in education and health care. He said he thinks the Board members recognize that across the board cuts would simply be unacceptable under the circumstances. He said that the Board needs a full quarter’s data before acting. He stated that he has heard Mr. Bradley talk about the economy and Mr. Greenspan and the President’s team talk about the economic recovery. He said the Board set an orderly procedure months ago about how it would look at the budget situation and last year the Board varied from that because of September 11. He said that they all saw September 11 of last year as needing an adjustment because the impact was going to be more than 30 or 60 days. He said a year later he sees the economy making moves in the right direction. Governor Hodges further stated that the Board has to have some solid data as opposed to a month or month and a half’s data to review prior to making a decision. He said he was willing to wait for the data, if it gives the Board the chance to avoid dramatic cuts or lessen the impact of what would occur on the budget process. He said that he is not in favor of across the board cuts. Governor Hodges noted that on a couple of occasions Mr. Harrell joined him in an effort to exempt education and the legislature did not approve that. He said they all have sought broader authority for the Board to make decisions about where to cut and have not gotten that authority from the Legislature. Governor Hodges stated that the Board needs that authority or the Legislature needs to come back and address those problems. He said that he differs from Mr. Lander in that he does not think the capital reserve fund should be sequestered and that nothing should be done until the Board knows the scenario it faces. He said to do otherwise means immediate cuts in education and healthcare and to him that is unacceptable. Governor Hodges said that the Board needs additional data in hand and that the responsible course to take is to follow the path that was laid out months ago. He further commented that the data the Board has now is no different than what was available in May or June when the budget process was concluding. He stated that he would oppose efforts to take any action until there is a full quarter of revenue numbers.

Senator Leatherman stated that he wanted to make sure that everyone understood that his motion was for a 2% cut, not 4.6%. He said that sequestering funds would mean that the agencies would not be able to use that money. Mr. Harrell explained that the difference between cutting and sequestering is that with a cut the money is gone and the sequestered funds can be returned later. Mr. Harrell stated that the difference between cutting the budget now as opposed to January is that instead of losing 1.7% of their budget, agencies will lose almost 3.5% of their budget because the cuts have to be absorbed in a six month period of time. He said that every agency head he has talked to has said that if cuts are going to be made to go ahead and do it.

Mr. Harrell asked whether any of the members believed that there would be no need to cut across the board. Governor Hodges responded that he does not believe there will be a need to cut across the board. He further stated that he thinks the days of cutting across the board need to end. He said that if cuts are going to be made then they should be surgically done. Mr. Harrell said that he has always supported that philosophy but cannot seem to get that done. He said that leaves the Board in the situation of acting within the law or refusing to act. He said that he believes all the Board members take their responsibilities seriously and that he cannot imagine refusing to act until February or March when a cut like that has four times the impact on an agency. He stated that the bottom line is that if cuts are coming to agencies the sooner it happens the easier the agencies will deal with it. Mr. Lander commented that he does not disagree with that entirely, but he does think the Board should wait until the end of the quarter as set up by statute. He asked why is there a rush to do something that cannot be turned around in the event the estimate is correct. Mr. Harrell asked Mr. Lander whether he believed there would be the need for a 2% cut as Senator Leatherman has motioned to do. Mr. Lander responded that he did not know, but that he is willing to wait to see what the first quarter numbers are.

Senator Leatherman commented that he would be willing to agree to meet in October to discuss the budget because he does not want to do anything harmful to the State or any person. However, he stated that he is not willing to wait month after month looking at numbers and not take any action with regard to the budget whether that is the Board making cuts or Governor Hodges calling the legislature back into session to make cuts. Mr. Harrell pointed out that the Board was originally scheduled to meet the week of October 20^th, but the meeting was cancelled. Mr. Harrell stated that a motion could be made to reinstate the meeting. Mr. Lander commented that another potential for meeting in October is if the BEA’s estimate at the end of the quarter changes the revenues 4% or greater. He said the Board is then notified and a meeting must be called within 14 days. Mr. Harrell replied that if the numbers came in 3.8% short and did not trigger a mandatory meeting, the next meeting is not scheduled until December 10 which means no action would be taken until the second half of the year. He said that what Senator Leatherman has suggested is very reasonable.

Governor Hodges inquired whether the official report was due November 10. Mr. Bradley responded that the statutory requirement is that the estimate for next year be presented on November 10. He said historically the BEA has also recommended actions to be taken at that time. Senator Leatherman commented that if cuts do not occur until December the first six months of the fiscal year are gone and that would mean that any cuts would be doubled. He also noted that if the General Assembly makes the cuts, the cuts would not be across the board. He stated that some agencies could experience cuts of 30% to 40%. Senator Leatherman said he feels strongly that the Board should do what is best for the State and meet in October to look at the numbers that are available. Mr. Harrell said that if Governor Hodges is going to call the legislature back into session he needs to give them time to enact the cuts as quickly as possible. Mr. Harrell said that he thinks the Board should reinstate the October 22 meeting and take any necessary action at that time. Governor Hodges said that he is comfortable that if, on November 10, the Board gets a report that shows adjustments need to be made the Board can act appropriately and that he could act as well to bring the legislature back to put together a plan for the final six months of the year. Governor Hodges further commented that the Board has shown an amazing ability to get together and get things done during tough economic times. He noted that the State is one of a few states that has preserved its AAA credit rating. He said the Board needs solid data in hand, it needs to follow the schedule already set up, and if there is a need to act after the November 10 figures are in, then the Board will act. He said he is not going to support across the board cuts.

Mr. Patterson said that the problem with not cutting across the board is that it is unconstitutional. He said that the courts have said if you do not cut across the board that is appropriating to some people versus others. Mr. Evans commented that in the State’s statutory framework the only option within the constitution is across the board cuts.

In continued discussion, Senator Leatherman asked Mr. Bradley whether the BEA could have the official estimate to the Board by mid October. Mr. Bradley said that the BEA would have the numbers by mid October and that the BEA could look at meeting in October. Senator Leatherman commented that he does not understand the reluctance to meet in October to review the numbers and if Governor Hodges plans to call the General Assembly back into session to do so as quickly as possible to address the budget. Governor Hodges replied that he did not understand the reluctance to follow the statutory framework or tradition of reporting the numbers in November.

Senator Leatherman said he had no problem with withdrawing his motion, but that the Board needed to meet in October to look at the numbers from the BEA to see what action needed to be taken. Senator Leatherman then moved to amend his earlier motion to have the Board meet on the original scheduled October 22 meeting to review the numbers presented to the Board by the BEA. Mr. Harrell seconded Senator Leatherman’s motion. Upon a vote by the Board, Mr. Harrell and Senator Leatherman voted for the motion. Governor Hodges, Mr. Patterson, and Mr. Lander voted against the motion.

Mr. Lander commented that even if the State experienced a 9% growth in revenues for the remainder of the year the capital reserve would still be needed to meet the 10.6% in expenditures.

Upon a motion by Mr. Lander, seconded by Senator Leatherman, the Board agreed to sequester the capital reserve fund ($101,606,475). Mr. Lander, Senator Leatherman, Mr. Patterson, and Mr. Harrell voted for the motion. Governor Hodges voted against the motion to sequester the capital reserve fund.

Information relating to this matter has been retained in these files and is identified as Exhibit 26.
Budget and Control Board: $100,000,000 State Capital Improvement Bonds, Series 2002C, State of South Carolina (Regular Session Item #2)

The Board was asked to adopt a resolution to provide for the issuance and sale of not exceeding $100,000,000 State Capital Improvement Bonds, Series 2002C, of the State of South Carolina.

Upon a motion by Mr. Patterson, seconded by Mr. Lander, the Board approved a resolution to provide for the issuance and sale of not exceeding $100,000,000 State Capital Improvement Bonds, Series 2002C, of the State of South Carolina.

Information relating to this matter has been retained in these files and is identified as Exhibit 27.
Future Meeting

The Board agreed to meet at 10:00 a.m. on Tuesday, December 10, 2002, in the Governor’s conference room in the Wade Hampton Building.
Executive Session

Upon a motion by Senator Leatherman, seconded by Mr. Harrell, the Board agreed to consider the following items, which had been published previously, in executive session, whereupon Governor Hodges declared the meeting to be in executive session:

1. Executive Director Economic Development (2002 Ceiling Allocation)

2. Human Resources Department of Social Services (Appeal of a State Employee Grievance Committee Decision)
Report on Matters Discussed in Executive Session

Following the executive session, the meeting was opened, and the Board voted on the following item that had been discussed during executive session:

Executive Director: Economic Development (2002 Ceiling Allocation) (Executive Session Item #1)

Upon a motion by Mr. Harrell, seconded by Mr. Lander, the Board, in accord with Code Section 1-11-500 et seq., and upon the recommendation of the Department of Commerce, granted the following tentative ceiling allocation from the local pool:

a. JEDA, Sargent Metal Fabricators, Inc., (Anderson County), $5,500,000;

b. JEDA, Americast Concrete Products, L.L.C., (Charleston County), $6,500,000;

c. JEDA, Parat Automotive USA, Inc., (Spartanburg County), $2,300,000;

and upon the recommendation of the South Carolina State Housing Finance and Development Authority granted the following tentative ceiling allocations from the local pool:

d. State Housing, Popular Square Apartments, (Sumter County), $2,960,000;

e. State Housing, Palmetto Village Apartments, (Lexington and Richland Counties), $6,500,000; and

f. State Housing, Spring Grove Apartments, (Greenville County), $7,410,000;

Department of Commerce: Economic Development (Exec. Session #2)

Upon a motion by, Mr. Patterson, seconded by Senator Leatherman the Board adopted a resolution stating that to the extent the Center for Accelerated Technology ("CATT") is unable to perform its obligations to a confidential economic development project as set forth in the Training Agreement because of non-appropriation of funds, then the Budget and Control Board, upon receipt of an authorized request of the South Carolina Department of Commerce and subject to approval by the Joint Bond Review Committee, shall, to the extent authorized by the South Carolina General Obligation Economic Development Bond Act, cause the issuance of general obligation bonds pursuant to the Bond Act and the South Carolina Constitution in such amounts, not to exceed in the aggregate $36.5 million, and at such times as the State Treasurer determines that monies must be made available, as may be necessary to allow CATT to perform and provide due performance of such obligations.
Adjournment

The meeting was adjourned at 11:50 a.m.

[Secretary's Note: In compliance with Code Section 30-4-80, public notice of and the agenda for this meeting were posted on bulletin boards in the office of the Governor's Press Secretary and in the Press Room, near the Board Secretary's office in the Wade Hampton Building, and in the lobby of the Wade Hampton Office Building at 5:00 p.m. on Friday, September 13, 2002.]

a.	County Location:	Greenville County
	From:	Budget and Control Board
	To:	Western Carolina Regional Sewer Authority
	Consideration:	$1.00
	Description/Purpose:	To install, operate and maintain an effluent diffuser under the Enoree River as part of the Gilder Creek Wastewater Treatment Plant Upgrade/Expansion Project.

c.	County Location:	Charleston County
	From:	Budget and Control Board
	To:	South Carolina Electric and Gas Company
	Consideration:	$200.00
	Description/Purpose:	To construct, operate and maintain a single phase 23kV underground distribution line across the Stono River connecting two highland areas known as Rushland Plantation on Johns Island.

d.	County Location:	Beaufort County
	From:	Budget and Control Board
	To:	South Carolina Electric and Gas Company
	Consideration:	$868.00
	Description/Purpose:	To install, construct, operate and maintain a subaqueous 115kv cable beneath the Beaufort River adjacent to the McTeer Memorial Bridge on SC Highway 802 near Port Royal.

e.	County Location:	Darlington County
	From:	Budget and Control Board
	To:	City of Hartsville
	Consideration:	$1.00
	Description/Purpose:	To install, operate and maintain an 18" force main beneath Black Creek adjacent to the US Highway 15-Bypass bridge.

a.	Agency:	Clemson University
	Acreage:	38± acres
	Location:	SC Research Park in Anderson County
	County:	Anderson County
	Purpose:	To be the site of an 84,000 square foot research facility.
	Appraised Value:	$385,390
	Price/Seller:	$350,000/SC Research Authority
	Source of Funds:	Institution Bonds
	Project Number:	H12-9798
	Environmental Study:	Approved
	Additional Annual Op Cost/SOF:	Construction of an 84,000 square foot research facility is estimated at $16 million and will be paid from Institution Bonds. Additional annual operating costs are estimated at $470,000 and will be paid from university funds.
	Approved By:	CHE on 9/5/02; JBRC on 9/12/02

b.	Agency:	College of Charleston
	Acreage:	.10± acres
	Location:	209 Calhoun Street in Charleston
	County:	Charleston County
	Purpose:	To be used for surface parking and to complete acquisition of the entire block as College property.
	Appraised Value:	$262,000
	Price/Seller:	$262,000/Bethel United Methodist Church
	Source of Funds:	Other, College Fees
	Project Number:	H15-9595
	Environmental Study:	Approved
	Additional Annual Op Cost/SOF:	No additional annual operating costs are anticipated.
	Approved By:	CHE on 9/5/02; JBRC on 9/12/02

c.	Agency:	Technical College of the Lowcountry
	Acreage:	.3± acres and a 1,400 square foot residence
	Location:	874 Ribaut Road in Beaufort
	County:	Beaufort County
	Purpose:	To acquire property for future campus expansion that is contiguous to the campus.
	Appraised Value:	$228,000
	Price/Seller:	$228,000/Michael Keehn
	Source of Funds:	Other - Local
	Project Number:	H59-9846
	Environmental Study:	Approved
	Additional Annual Op Cost/SOF:	Additional annual operating costs for insurance and maintenance are expected to be minimal and will be paid from rent proceeds.
	Approved By:	CHE on 9/5/02; JBRC on 9/12/02

d.	Agency:	Greenville Technical College
	Acreage:	1± acre and a 24,240 square foot theater building
	Location:	736 South Pleasantburg Drive in Greenville
	County:	Greenville County
	Purpose:	To provide needed space for Continuing Education classes and for future needs.
	Appraised Value:	$810,000
	Price/Seller:	$810,000/Armstrong, LLC
	Source of Funds:	Federal, EDA Grant and Other, Local
	Project Number:	H59-9853
	Environmental Study:	Approved – Asbestos removal costs of $46,460 will be paid by the seller.
	Additional Annual Op Cost/SOF:	General renovations are estimated at $1,212,000 and will be paid from local and grant funds. Additional annual operating costs are estimated at $24,812 and will be paid from local funds.
	Approved By:	CHE on 9/5/02; JBRC on 9/12/02

(f)	Agency:	Employment Security Commission
	Acreage:	4.9± acres
	Location:	Off Hwy 170 south of Goethe Hill Road
	County:	Beaufort County
	Purpose:	To be the site of a new ESC facility.
	Appraised Value:	$543,000
	Price/Seller:	$543,000/Victoria Middleton, Inez Mbornio, Carrie Garvin, et al.
	Source of Funds:	Other - Federal
	Project Number:	F03-9741
	Environmental Study:	Approved
	Additional Annual Op Cost/SOF:	Construction of a new ESC facility is estimated at $1.25 million and will be paid from Federal funds. Additional annual operating costs are estimated at $35,000 and will be paid from Federal funds.
	Approved By:	JBRC on 9/12/02

(g)	Agency:	Department of Natural Resources
	Acreage:	9± acres
	Location:	Three miles northwest of Aiken on Mayfield Road
	County:	Aiken County
	Purpose:	To expand the Henderson Heritage Preserve.
	Appraised Value:	N/A
	Price/Seller:	Donation/Jim and Sharon Stewart
	Source of Funds:	N/A
	Project Number:	P24-9837
	Environmental Study:	Approved
	Additional Annual Op Cost/SOF:	No additional annual operating costs are anticipated.
	Approved By:	JBRC on 9/12/02

i.	Agency:	Department of Transportation
	Acreage:	.409± acres and a 2,968 square foot building
	Location:	135 South Calhoun Street in Greenville
	County:	Greenville County
	Purpose:	To dispose of surplus real property.
	Appraised Value:	$80,000 as of 6/26/02
	Price/Purchaser:	Not less than appraised value/To be determined
	Disposition of Proceeds:	To be retained by DOT.
	Approved By:	N/A

l.	Agency:	Department of Parks, Recreation and Tourism
	Acreage:	600± acres
	Location:	On Lynches River
	County:	Florence County
	Purpose:	To transfer Lynches River State Park to Florence County for their continued operation of the park.
	Appraised Value:	N/A
	Price/Purchaser:	N/A/Florence County
	Approved By:	N/A

m.	Agency:	Patriots Point Development Authority
	Acreage:	18.49± acres to be conveyed and .8± acre granted as an easement
	Location:	On Patriots Point Boulevard in Mt. Pleasant
	County:	Charleston County
	Purpose:	To provide for improvements including the widening and redesign of Patriots Point Boulevard.
	Appraised Value:	N/A
	Price/Transferred To:	N/A / Town of Mt. Pleasant
	Approved By:	N/A
	Additional Information:	This is a modification of the conveyance approved by the Board on March 26, 2002. The transfer of 18.49± acres and the granting of an easement over an additional .8± acre are needed in order to satisfy a portion of the Authority’s assessment required by the municipal improvement district created to make improvements to Patriots Point Boulevard.