Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Finance Leasing topic
No spam. Unsubscribe anytime.
Board approves lease‑financing structure for high‑school renovation
Summary
The school board approved resolutions authorizing a building corporation lease‑finance structure that will allow construction financing without counting against the district’s constitutional debt limit; the board read and passed the required reapproval for the building corporation and the lease form.
The Griffith Public Schools board approved a package of resolutions to permit a building‑corporation lease financing for work at Griffith Junior‑Senior High School.
A staff summary read to the board described the financing structure: a nonprofit building corporation would purchase a portion of the high‑school building at closing (at or above appraised value) and lease that portion back to the school corporation. Lease rental payments would be paid from property‑tax revenue and the lease’s maximum rental amount is set to cover principal and interest to bondholders. The presentation noted that this form of lease financing does not count against the school corporation’s constitutional debt allowance.
The board voted to approve the form of lease and reapprove the building corporation as required for issuance of tax‑exempt bonds under Internal Revenue Service rules. Both items passed on voice vote with no recorded opposition.
Why it matters: the structure is commonly used by Indiana school corporations to finance renovation and construction while preserving debt capacity. The board chair and staff said the next steps will follow standard closing and bond‑issuance procedures.
Board action: motions to adopt the resolution approving the lease form and to reapprove the building corporation were made, seconded and carried with “Aye” on the voice votes recorded in the meeting minutes.
