Fargo board unanimously approves resolution to seek $10 million state school construction loan

The Fargo Board of Education on a 9-0 roll-call vote authorized the district to apply for up to $10,000,000 from the state school construction assistance revolving loan fund, a low-interest loan program that could reduce borrowing costs compared with issuing bonds.

Jackie Gapp, serving as chief financial officer in place of the district’s usual note taker, explained that the revolving fund offers an interest rate of about 2% and that awards are limited by statewide legislative allocations. "The maximum we can apply for is $10,000,000," she said, and noted the Department of Public Instruction is expected to announce award recommendations in June.

Board member Melissa Birkland moved to adopt the resolution authorizing submission of the loan application; Jason Nelson seconded. After brief discussion — including staff noting the district had received this funding one time previously when Ed Clappack Elementary was built — the board approved the motion.

The district discussed the loan as a potential alternative to issuing bonds for part of a broader capital estimate the board has discussed; staff said using the loan in lieu of issuing bonds for the same amount would leave the district within its previously discussed $45,000,000 estimate. The board did not receive confirmation that the district will be awarded the loan if it applies.

The motion passed in a roll-call vote with all members voting in favor.