Board approves installment financing resolution; Lincoln Elementary listed as collateral for $12M+ repairs
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Summary
The school board approved an installment financing resolution allowing Rockingham County to use Lincoln Elementary as collateral to secure more than $12 million to fund HVAC and roof repairs; the county will lease the property back to the district after financing closes.
The Rockingham County Board of Education voted March 17 to approve documents required for the county’s installment financing to fund HVAC and roof repairs, including a resolution that, as presented by the district attorney, permits the county to use Lincoln Elementary School as collateral for the financing.
Attorney Mr. McPherson summarized the transaction as a customary financing arrangement in which the county secures financing, temporarily uses specified property as collateral and then leases the property back to the district so the board retains operational control. "In approving that resolution, you are approving the transfer of Lincoln Elementary School to Rockingham County as collateral for the $12,000,000 plus installment financing," McPherson said, adding that the county’s interest is limited to enabling the funding and that the school will be leased back to the district.
McPherson also described related documents including an assignment of contract to allow the county an interest in the repairs and other standard financing paperwork. Board members had reviewed the documents in BoardDocs during the meeting and asked no substantive questions before the voice vote approving the resolution.
The board record on March 17 shows a motion and second followed by the board answering "Aye"; no roll-call tally was read into the minutes during the public meeting portion.
Board staff said the documents and related warranties appeared in BoardDocs for public review following the vote.