Southborough finance subcommittee lays out $108.5 million plan for new Neary school; town’s share about $68 million

The Town of Southborough’s NHERI Building Committee finance subcommittee on March 31 presented final schematic estimates and projected tax impacts for a proposed replacement of the Neary (NHERI) School, listing a total project cost of $108,517,025 and a projected town share “just above $68,000,000.” The committee said it expects an MSBA (Massachusetts School Building Authority) grant of about $35,000,000 and roughly $5,000,000 in federal and state credits tied largely to a proposed geothermal system.

Why it matters: The project would require two votes — a two‑thirds favorable vote at a May 10 special town meeting and a majority vote on a Proposition 2½ exclusion at the May 13 town election — and would add long‑term debt for the town. Committee leaders and town finance staff said the plan is intended to resolve long‑standing capital and educational issues at Neary while limiting near‑term impacts on other capital projects.

Committee leaders said the proposal develops from a multi‑year MSBA process and a unanimous internal vote on Aug. 12, 2024, to bring forward a single option: a new 4‑grade school on the current Neary site. The schematic design completed in January 2025 calls for a 99,564‑square‑foot building designed for up to 610 students; committee members said the current Neary building is roughly 60,000 square feet and that the new building would be substantially more space‑ and program‑efficient.

The committee described its current financial picture as follows: total project cost $108,517,025; expected MSBA grant about $35,000,000 (roughly 32.5 percent of total cost); an anticipated $5,000,000 in federal/state rebates or credits tied primarily to a geothermal HVAC system; and a net town cost of a little more than $68,000,000. Using an assumed permanent interest rate of 4.25 percent, the town’s…