School Board approves MDE review allowing levy funding for News Tribune building project

The Duluth Public Schools board on Sept. 11 approved the Minnesota Department of Education(MDE) review and comment that lets the district levy for up to 73% of the Duluth News Tribune Building First St project.

The approval came after Executive Director Zunich told the board, "we did receive a positive review and comment from the Minnesota Department of Education on our suggested plan for the Duluth News Tribune Building First St project." The motion to accept the MDE determination was moved by Member Sadowski and seconded by Member Lofeld and passed by voice vote.

Board members said the decision clears the way for next steps on construction and bonding. Director Zunich said the 73% figure means "27% will need to come from district funds," and that some ineligible costs will be paid with existing LTFM bond funds. The district will provide the MDE with meeting minutes and follow the departmentdirection to discuss the determination in a regular meeting within 45 days of the department's Sept. 11 letter.

Board members and staff said moving programs into the News Tribune building would reduce lease costs the district currently pays. Director Zunich said the move will reduce an estimated lease levy the community now shoulders, which she calculated at roughly $685,000 when she last modeled summer levy impacts.

Nut graf: The MDEreview and comment is the formal step that allows Duluth Public Schools to use state-allowed levy proceeds for the majority of this facility project while requiring the district to cover the remaining ineligible costs; board approval begins contracting and budgeting steps and triggers required reporting back to MDE.

Board discussion and next steps The board heard that several district programs will be relocated into the News Tribune building, including early childhood services, the enrollment center, community education, audiology and district testing, families in transition, and ALC programs. Director Zunich said the department's letter recommended review and that the board must discuss the commissioner's determination within 45 days; the Sept. 11 letter date starts that clock.

Director Zunich told the board she would meet with the district's construction manager (ICS) and begin budget conversations, and that contracts and bond documents will be brought to future HR and Business Services meetings for approval. Member Lofeld asked whether construction activity would begin now that MDE approval is in hand; Director Zunich said she expects work to begin and that she will bring contracts to the board as they are ready.

Formal action The board's motion to approve the MDE review and comment was moved by Member Sadowski and seconded by Member Lofeld; it passed by voice vote with "Aye" recorded and no recorded opposition.

Clarifying details and funding According to information presented to the board, MDE allowed up to 73% levy support for the project; the district will cover roughly 27% with district funds. Director Zunich said the district has LTFM bond proceeds available that will be used for ineligible costs (she identified an ineligible amount of $3,600,000 in the meeting materials). Director Zunich also said the boardestimated relief to the community's lease levy is about $685,000 based on prior levy modeling.

What the board approved (procedural note) The board's approval satisfied the MDE requirement that the district "discuss the commissioner's determination of a review and comment" at a regular or special school board meeting within 45 days of the department's determination and that the department may request a copy of the minutes to verify compliance.

Ending: What to expect next District staff said they will bring bond resolution material to the October HR and Business Services meeting and will provide MDE with the board minutes as part of compliance. Contracts for construction and more detailed budget documents will be presented to the board as they are finalized.