Construction projects dominate board meeting

A $12.585 million bond loan to rebuild Jay High School and restructure Central High was brought before the Santa Rosa School Board during their Monday morning meeting.

Financing would come from under the board’s master lease, and would be bonded so the district could borrow on a bank-qualified basis.

The federal government recently increased a bonded bank loan to 30 million, and Jay Glover, the public financial manager and financial advisor for the board said the loan would be the best route for the school to take.

“The district will be able to borrow on a bank qualified basis. We thought the bank loan would be the best way to do it,” said Glover.

The board was presented with 5 proposals, two of which were picked out as the best option from Glover. One concerned a loan from Bank of America that had a locked in rate of 3.94 percent, but could fluctuate on the day of closing and throughout the 15-year term.

The other came from Suntrust at a locked in 4.11 percent, but could not fluctuate according to Glover. Glover agreed that this would be the best option incase rates went up during the 15 year period.

“The Suntrust rate would be locked in at the rate unlike the Bank of America,” said Glover.

The loan would be locked in for 15 years unless the board decided to refinance.

If the school fails to pay the loan or decides to cut off the construction project from the budget, their credit would be ruined, and according to Glover, would be hard to build back.

Glover noted that the capital outlay millage would be the best source to fund the $12.585 million loan.

Newly appointed school board chairman Diane Coleman carried the motion without discussion from the board. The school board then adjourned and re-adjourned as the School Board Leasing Corporation in order to accept the additional leasing schedule to the master lease.

Coleman carried the motion and re-adjourned to the school board.

The recently completed Pace High School gymnasium was brought forth for discussion at the meeting as the contractor closed out the remaining $17,790 in closing consulting and punch payments.

Mike Warner noted that good news is in the horizon for S.S. Dixon Primary as construction looks to be near completion.

Ed Gray presented the big question for Warner as to when construction would be completed.

“When are we going to be done with S.S. Dixon? When do we get to rejoice?,” asked Gray.

Warner said as of now he couldn’t tell, but estimated at least another two months.

“I think 60 days is a safe estimate right now,” said Warner.