Rutherford County committee approves $12.99 million to buy 5405 Lee Road for future schools

The Rutherford County Health & Education committee voted to fund the purchase of a 161‑acre parcel at 5405 Lee Road, authorizing approximately $12,985,600 to acquire the property and cover closing costs.

School board representative Dr. Michael Sullivan told the committee the acquisition has been under review for more than a year and that the district considered two funding routes: internal funding from school fund balance and related accounts, or issuing a bond‑anticipation/capital outlay note. Sullivan and county finance staff recommended using a mix of the general purpose school unassigned fund balance, Fund 189 (building projects), and remaining land‑sale/Church Street balances to avoid immediate borrowing.

Sullivan read the county’s unaudited fund‑balance figures to the committee: the general purpose school fund balance stood at $104,413,937.18, and the recommended draw was $9,634,799.50 from that fund, which would leave an estimated $94,779,137.68 (about 16% of the roughly $581 million budget) pending audit and final accounting. Other line items and leftover balances were identified to reach a total acquisition package of roughly $12.99 million, including an anticipated $100,000 in closing costs.

The district said the site could accommodate two or three schools; the final programing (elementary/middle/high and the sequence of construction) will depend on October enrollment projections. Sullivan outlined a timeline in which enrollment numbers will be finalized in October, a board retreat and RSP projection presentations are scheduled for early November, and design‑fee requests would be considered in November/December with building approvals aligning to the following April–May budget cycle. The district said an opening at the earliest could be August 2028, with August 2029 more likely.

A motion to transfer specified sums from Church Street/excess land accounts and amend the general purpose school fund to take $9,634,799.50 from unassigned fund balance passed by roll call. Commissioners present recorded votes of yes: Gooch, McMurray, Boyd, Wilson, Davidson, Oliver and Chairman Dodd.

Commissioners asked about infrastructure needs; Sullivan said road and utility improvements will be coordinated with county engineering and neighboring municipalities as plans solidify. Several speakers emphasized that purchasing the site is a strategic step to secure land amid ongoing residential development and that decisions about the site’s ultimate use are separate, later votes.

The committee’s action authorizes staff to proceed with funding the acquisition; any subsequent decisions about programming, design fees and construction financing will return to the board for separate approval.

"We really had two options," Sullivan said, summarizing funding choices. "Taking Mr. Smith's recommendation, I recommended to the board that we go to fund balance and use Fund 189," he said. "Before we can start doing design fees on this property, we have to technically own the property first."