ITEM NUMBER: 6.C.
School Board Regular Meeting
- Meeting Date:
- 01/03/2022
- Prepared By:
- Tom Sager
Item Type:
Subject:
Approval of Parameters Resolution for Bond Purchase Agreement
Background:
| Since last spring, the district has been looking at the possibility of purchasing the Mankato Rehabilitation Center, Inc. (MRCI) building. The primary objective of the space usage would be to address the growing need and demand for Early Learning Services. This space would allow the district to expand its ability to partner with community agencies to increase access to high quality birth to age 5 programming. This space would also address growing space needs for the district’s nutrition services, special education, and maintenance departments. At the November 15, 2021 school board meeting, the school board approved the authorization for the Superintendent/Director of Business Services and a Board Officer to execute a Purchase Agreement for Real Estate Acquisition contingent upon the District's review and approval of said agreement by legal counsel, all terms and conditions contained within the sale of the property, and the Minnesota Department of Education approval of the Review and Comment Report for the project’s acquisition and renovation. The district has continued to work closely with the district’s financial municipal advisor, PMA, to prepare all the requirements for a sale of Certificates of Participation to purchase and renovate the MRCI property. The current interest rates remain favorable, and the District anticipates a relatively low cost of borrowing. While the District has not yet received official approval from MDE on the Review and Comment Report, it is prudent and practical at this time to establish the bond sale parameters so that the District maintains greater flexibility on the bond sale timing once the MDE approval is received. The approval of this parameter resolution does not obligate the District to the bond sale. Tonight’s recommendation for approval is the first part of a two part process. Tonight, administration will recommend the board approve the parameters set in the attached resolution for the bond sale, and authorize the Superintendent/Director of Business Services to execute a Bond Purchase Agreement for the stated purposes. The second part of the process will occur at a future school board meeting when the board will ratify the resolution for the award of the sale. |
Recommended Action:
The administration recommends that the School Board approve the attached resolution authorizing the Superintendent/Director of Business Services to execute a Bond Purchase Agreement for the purchase and renovation of the MRCI property. The bond sale will occur in January or February 2022.