More than 70 years old, the Michigan State Police headquarters, located on Harrison Road near Shaw Lane, has leased its headquarters from MSU for $1 per year.

However, the headquarters could be moving to a new $39 million privately funded development in downtown Lansing, costing the state more than $3 million per year to occupy. Although construction of the new building is almost complete, the state is facing a $1.7 billion deficit and state officials have questioned the headquarters’ move.

The proposed move would require the state to pay almost $3.7 million in lease costs per year, beginning in 2010. MSU Trustee Joel Ferguson is one of the new headquarters’ developers.

Without state appropriated funds, the building’s lease will be terminated. The state Senate’s action came after the state Attorney General Mike Cox told legislators the state was within its rights to break the lease by blocking funding. Costs to the state possibly reaching $90 million throughout a 25-year lease are irresponsible, state Sen. Cameron Brown, R-Fawn River Township, said.

Brown introduced the measure to stop taxpayer dollars from funding the building.

“At a time when we’re laying off 100 troopers, it does not seem to be the better part for fiscal responsibility to be asking the people to be making the first down payment … to be moving into a lavish new building,” Brown said.

Although some have questioned the price tag to occupy the new location, Ferguson said moving out of an “obsolete” building will allow state police to take advantage of more modern technology.

“There was a need for a more modern building,” Michigan State Police spokeswoman Shanon Akans said.

Some lawmakers said although the current headquarters might not be as up-to-date, it does not justify a move given the state’s economic forecast.

“We must carefully prioritize how we spend the people’s tax dollars and that does not include leasing a building that is not needed,” state Rep. Rick Jones, R-Grand Ledge, said.

Ferguson said the 500 construction jobs created, as well as tax dollars generated from the new building, are benefits of the proposed move.

“There’s not a nickel of state money spent on my job,” Ferguson said. “Yet I generated … $2.5 to $3 million in taxes the state wouldn’t have if I didn’t build the building.”

In 2007, state Sen. Nancy Cassis, R-Novi, introduced a resolution, urging developers to stop construction in light of Michigan’s economy. She still opposes the construction of the new headquarters and would even in better economic times.

“It was, in a sense, a decision made by the governor,” she said. “And we know that there are friendships there with (Ferguson). … In good times, this would not have been the right thing to do because we had a very adequate facility at MSU.”

The construction of the new headquarters has nothing to do with a friendship between Ferguson and Granholm, Liz Boyd, Granholm spokeswoman said.

“That the new headquarters is based on a friendship is absolutely without merit and irresponsible,” she said. “The Michigan State Police headquarters was supported by the (state) legislature.”

The appropriations bill, with the Senate’s amendment, will move to the state House this week for debate.

Although the Senate voted against funding the new building, Ferguson is confident the funds will be appropriated.

“The appropriations will be in the budget,” he said.

Even with the new building almost finished, Ferguson isn’t worried he’ll have to find new occupants if funding isn’t approved.

MSU is still evaluating options for the current headquarters, if the move advances, MSU spokesman Terry Denbow said.