SB 0382 - Fiscal Note

Fiscal Note - SB 0382 - Preserves Walt Disney film studio as historic site

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1017-01

BILL NO.: SB 382

SUBJECT: Walt Disney Film Studio

TYPE: Original

DATE: February 9, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Parks Sales Tax Fund	$0	$0 to ($3,182,781)	$0 to ($152,668)
Parks Earning Fund	$0	$0	$0 to $5,000
Total Estimated Net Effect on All State Funds	$0	$0 to ($3,182,781)	$0 to ($148,668)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

If funds are appropriated, the Department of Natural Resources (DNR) assumes they would incur capital improvement costs including acquisition costs and renovation costs to bring the Walt Disney Film Studio in line with the standards of historic sites in the state park system. The DNR would be responsible for all financial obligations connected with the Disney Studio, including acquisition costs for adjacent properties for parking; administrative, interpretive, and maintenance personnel; operating expenses; equipment; and capital improvement expenditures.

The DNR has not conducted an environmental assessment of this property. If environmental contamination is discovered on the property, the related clean-up costs could be significant. Until an environmental assessment has been completed, the total cost to acquire and maintain this property is unknown.

The DNR now knows, the Walt Disney Film Studio is a two-story, six-bay rectangular-plan commercial building (10,400 square feet) measuring 100 feet east-west and 52 feet north-south. The building contains a partial basement comprised of a coal room and furnace room (780 square feet). A single story rectangular concrete cinder block addition (1,120 square feet) measuring approximately 80 feet east-west and 14 feet north-south, is located along the rear (south) facade.

The DNR assumes they would incur the following renovation cost:

$ 20,000 building acquisition;

100,000 stabilization and demolition, debris removal;

2,138,500 renovation, roof reconstruction, tuck-pointing and interior work on the main building at $200 per square foot; on the partial basement at approximately $75 square foot

50,000 site work, water, sewer, lighting, and security

162,000 acquisition of lot and development of parking lot

40,000 lead and asbestos removal

100,000 elevator for ADA access

$2,610,500 Total Renovation Costs

In addition, the DNR assumes they would budget for:

$ 313,260 contingencies at 12% of the renovation cost - ($2,610,500 x 12%)

350,851 architect and engineering studies at 12% of total costs - ($2,923,760 x 12%); and

70,170 administrative costs of 2.4% of total costs - ($2,923,760 x 2.4%).

$3,344,781 Total acquisition and renovation costs.

ASSUMPTION (continued)

The DNR assumes these acquisition and renovation costs do not include renovation costs for the concrete cinder block addition. At this time, the department needs further information/data on this building to determine potential renovation activities.

The DNR estimates revenue of $5,000 per year from fees, sales, and donations.

Because there is no funding for this project mentioned in the proposal, the DNR assumes they would request funds from General Revenue to acquire and develop the Walt Disney Film Studio.

According to the Missouri Constitution, the Parks Sales Tax Fund was created to fund the acquisition, development, maintenance, and operation of state parks, Oversight assumes the costs of this proposal would be borne by the Parks Sales Tax Fund.

Oversight assumes this proposal permits the DNR to acquire the Disney Film studio. Therefore, the estimated costs of this proposal would be subject to appropriation.

Oversight assumes this proposal would not require the acquisition and development of an additional lot for parking. Oversight assumes if it is determined that additional parking is needed in the future, the DNR could request funds in the normal budget process.

Oversight also assumes the renovation and development of the property would take a considerable amount of time. Therefore, it is unlikely there would be a need for staff until FY 2002. Accordingly, Oversight has not included personal service costs until FY 2002.

Oversight assumes the facility can absorb mileage reimbursement costs and has not included costs to purchase a vehicle. Also, Oversight has adjusted DNR's equipment and expense costs to bring them in-line with Office of Administration guidelines.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
PARKS SALES TAX FUND
Costs - DNR		$0	$0
		or	or
Personal Service	$0	$0	($94,184)
Fringe Benefits	0	0	($28,152)
Expense and Equipment	0	0	($30,332)
Other Costs	0	(3,182,781)	$0
	$0	($3,182,781)	($152,668)
FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
(continued)
Estimated Net Effect on		$ 0 or	$0 or
PARKS SALES TAX FUND*	$0	($3,182,781)*	($152,668)*
*** Subject to Appropriation ***
STATE PARKS EARNINGS FUND
			$0
Income - DNR			or
Fees, sales and donations	$0	$0	$5,000
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	0	0	0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This bill, with an emergency clause, establishes the first commercial film studio operated in Missouri by Walt Disney as a state historic site. The studio is located in Kansas City. The Department of Natural Resources may acquire the Disney studio pursuant to appropriations. Approval of the acquisition is required by the Missouri Attorney General. After the studio building is rehabilitated by the Department of Natural Resources, the department will establish and operate a museum in order to honor the life and works of Missourian Walt Disney and other Missourians involved in the development of animated and live action films.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Natural Resources

Jeanne Jarrett, CPA

Director

February 9, 1999