BSD seeks financing proposals

Posted

BROOKINGS – The Brookings School District is issuing a request for proposals to underwriting agencies for help funding the expansion of Mickelson Middle School and construction work at Hillcrest and Medary elementary schools.

The school board is looking to issue about $20 million in capital outlay certificates for the three projects.

“The rationale behind doing this now is so that when (architecture firm) ATS&R does come with a recommendation about what it will cost to build the middle school, we’ll be ready to go, to start issuing those certificates and start the construction process as quickly as possible,” explained Brookings School District Business Manager Brian Lueders.

He added that one of the main things they’ll look for is the underwriter’s discount.

He went on to clarify later in the meeting that bonds shouldn’t be necessary so long as the work at the middle school and the two elementaries doesn’t exceed $25 million.

“When you get a little past that, it becomes a little more sketchy because the debt payment is quite large,” Lueders said.

School board member Steve Bayer called the situation a catch-22, where the district can afford to build the new facilities, but if the opt out doesn’t pass today, staffing the new space becomes difficult with an even tighter budget.

“I think we need to move forward with getting this RFP out, but we need to know before we actually issue any of these or put a shovel in the ground that our economic reality is going to allow us to staff those spaces,” he said.

The school board unanimously passed the agenda item.

Proposals must be submitted before 2 p.m. May 4, with the school district reviewing the proposals and making a recommendation to the school board at the May 14 school board meeting.

Contact Eric Sandbulte at esandbulte@brookingsregister.com.

Brookings School District photo