The State Bond Commission on Nov. 20 approved up to $1,044,500,000 in lease revenue bonds to finance construction of a 190,000-square-foot Southeast Louisiana State Building in Harvey and to demolish an existing structure on the site.

Staff told the commission the bonds would be net state tax-supported debt and therefore count against the constitutional debt limit. Staff estimated annual debt service at about $7 million and said approximately $10.2 million of capitalized interest is expected to be funded with bond proceeds to cover interest costs during the first two fiscal years while agencies move in and begin paying rent.

Office of Facility Planning and Control will manage construction. Staff noted there is currently sufficient capacity under the net state tax-supported debt limit for the issuance. The project was authorized in Act 2 of the 2025 regular session, and staff recommended approval.

Representative Reiser moved approval; President Henry seconded. The commission approved the item by voice vote.

Next steps include finalizing issuance documents and proceeding with underwriting and pricing consistent with the commission’s usual processes. Staff will provide required verification and documentation before closing.