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Franklin school board approves lease and bond resolutions to advance pre-K center; hearing draws no public comment
Summary
The Franklin Community School Corp board approved a lease and a package of bond-related resolutions to finance a new pre-K center, with administration and counsel saying the financing is tax-neutral and no members of the public spoke at the required hearing.
The Franklin Community School Corp board voted Wednesday to approve a lease agreement and related bond resolutions that will let a building corporation issue bonds to finance a new pre-K center and lease the facility back to the school corporation. Legal counsel Roger Young explained to the board that the building corporation will sell bonds and own the real estate, then lease it back to the school corporation to provide the construction funds.
The board opened the statutorily required lease hearing and received no public comment before closing the hearing. Ms. Gross, the district finance/business office representative, told the board the project’s tax effect would be neutral: “No. There is no effects. Neutral,” and added it could be neutral or lower because of increased assessed value. After the hearing, the board approved a motion to adopt the proposed lease.
The board also approved a resolution authorizing assignment of construction bids and contracts to the building corporation at the bond closing, a legal step counsel said may be necessary because the building corporation will hold construction funds. The board then approved a resolution described as the fifth supplement to the district’s master continuing disclosure undertaking, a requirement discussed as satisfying Securities and Exchange Commission reporting obligations related to public bond issues.
Each resolution was moved, seconded and approved by voice vote with no recorded roll-call in the meeting transcript. Board counsel framed the sequence as standard: hold the hearing, approve the lease, authorize assignment of construction contracts, and adopt the disclosure supplement so the district meets investor reporting requirements. With the approvals, administration said the project can proceed toward closing and contractor award once bids and final assignments are executed.
The board did not receive public comment during the hearing. The next procedural step is bond closing and the formal assignment of contracts as described by counsel during the meeting.
