Griffith board holds public hearing, adopts three resolutions to advance athletic center financing

The Griffith Public Schools Board of School Trustees held a public hearing and on motions approved three resolutions that allow the district to proceed with financing a proposed indoor athletic facility adjacent to the high school.

The hearing included a legal overview from counsel and a financing presentation by municipal advisers; the board then adopted a project resolution, a preliminary determination resolution and a reimbursement resolution, the first formal steps required before issuing bonds or entering a lease to fund construction.

Why it matters: The resolutions establish maximum financial terms for a project that the district says will convert existing pool-area space into a two-story indoor athletic facility and preserve the district’s ability to reimburse pre-closing project expenses from bond proceeds.

At the hearing, Amy, counsel with Ice Miller, reviewed the statutory hearing requirements and described the process the district must follow. She said, “The notice of the preliminary determination hearing was published as legally required,” and explained that the hearings and resolutions are “the very beginning of the legal process” required by state law.

Superintendent (title used in meeting) outlined the planned facility: the existing pool area will be replaced with a two-story indoor athletic center. The superintendent described the first floor as locker rooms and an indoor turf area that will be used for multiple sports; the second floor will house a cardio lab and a multi-sport simulator to be used for physical education and extracurricular teams.

Sean McGill, municipal advisor with Baker Tilly, presented the financing parameters the board considered. McGill said the proposed maximum borrowing amount is $9,400,000 and estimated at least $8,850,000 would be available for project costs after issuance and capitalized-interest reserves. He described the proposed maximum repayment term as 20 years and said, under the conservative assumptions shown, "The maximum annual payment the school corporation could make per year to repay this financing would be a million dollars, and a million dollars represents just under 10¢ of the property tax rate based upon today's assessed valuation." McGill noted his presentation used conservative estimates and that actual market pricing could produce lower interest cost and more project proceeds.

Following the presentations, no members of the public signed up to speak and the board moved to adopt the three resolutions. The board voted to: - Adopt the project resolution establishing the estimated hard and soft costs and the total project cost for work expected to exceed $1,000,000 per building. - Adopt the preliminary determination resolution (Exhibit B, preliminary determination resolution number 2020Five-fourteen) setting maximum principal amounts, maximum annual payment, and lease/term parameters. - Adopt the reimbursement resolution permitting the district to reimburse prior cash expenditures from bond proceeds in compliance with federal tax rules.

Each motion passed on voice votes; the board’s advisers and administration said the actions only set maximums and begin a process that will include additional approvals and final financing documents.

Board members and administration emphasized minimizing property-tax impacts. McGill and the administration told trustees they expected to structure payments so the debt-service tax rate should not exceed current levels, noting a forecasted step-down in existing debt service in 2027–2028 that could accommodate the new payment schedule.

Next steps: administration and the board will continue working with bond counsel and municipal advisers to finalize terms, seek competitive pricing, and return to the board for final approvals and closing. The public hearing notice and statutory citations presented at the meeting will remain part of the record.