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School board approves lease financing and timeline for new Morgan High shop

Morgan County School District Board of Education · October 8, 2024
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Summary

The Morgan County School Board approved a lease-based bridge financing arrangement and heard final bids and a construction schedule for the Morgan High School vocational shop. Contractors are set to begin work in mid-October with site fencing and an expected construction completion in March.

The Morgan County School Board on Oct. 8 approved a real- property lease proposal that will bridge-finance construction of a new vocational shop at Morgan High School and heard final pricing and a start schedule from district staff.

Business Administrator (reported in the board packet) said contractors have been awarded work and site preparation is already under way; construction fencing is scheduled to arrive on the 11th and work will begin on the 14th. CTD Director Robert Kilmer told the board, “Prices for the shop, $3,954,056,” and said the contractor, school administration and project staff will meet to discuss fencing, access and how to minimize disruption to students during construction. Kilmer said contractors plan to do disruptive interior demolition (for new doors and mat access) during spring or fall break so that demolition occurs when students are not present.

Why it matters: the project replaces an aging shop used by the district’s welding and career-technical programs and is intended to improve student safety, update equipment and expand hands-on training for industry-standard processes such as crane and forklift safety.

Board discussion and financing details: Board members asked for clarification on the financing mechanism. The Business Administrator explained the district’s arrangement with Zions Bank: the district will lease the property to the bank, which will sublease it back to the district at a fixed rate, with the expectation the arrangement will be paid off in seven years. The Business Administrator characterized the interest as favorable for current market conditions and said contractors submitted competitive bids.

Next steps and timeline: staff said they will move nonessential equipment during the school year as possible and postpone disruptive moves until summer. The district expects to begin moving-in activities after construction is complete and to demolish the old building and finish the parking area after final move-out. The board approved the lease proposal on a voice vote; no member registered opposition.

The board also received updates on related work: footings at the replacement maintenance shop site were dug and structural blocks were being delivered, and planning for the Morgan Middle School gym design is scheduled to be finalized for bidding this winter. The board will receive contractor meeting notes and construction updates from staff as the project proceeds.