MSD Warren Township holds second preliminary hearing on up to $40 million in bonds for school expansions and athletic facilities

Hannah Clendening, of law firm Barnes and Thornburg, told the MSD Warren Township board during a second required preliminary determination public hearing that the district is seeking flexibility to borrow up to $40,000,000 on a maximum 20-year term to fund a package of school construction projects.

Clendening said the district set conservative assumptions for planning: “So the maximum borrowing amount would be $40,000,000. This is a maximum 20 year term. The total interest expense, the absolute maximum, assuming there's a 7% rate, which is the maximum authorized, would be about $45,000,000,” and she noted current market rates are closer to roughly 4.5–5 percent.

The bond proceeds would support an expanded project scope the board reviewed this winter: adding four elementary classrooms to return fifth graders to elementary schools in the 2027–28 school year, construction of an indoor activity center described by board staff as a community facility (hard-cost estimate cited at $17,400,000), and a youth athletic complex at ESSA Fields (estimated $2.75 million). Dr. Hansen told the board the district was also one of 16 recipients of an NFL grant that will reduce the local contribution, and staff estimated that grant at about $3,000,000.

Clendening described the legal and procedural sequence that follows a preliminary determination: additional approvals by the building corporation and the school corporation, preliminary approval of a lease, another public hearing on a lease amendment and an additional appropriation, then bond sale and closing. She emphasized that the figures presented establish conservative maximums and can change depending on market conditions and the district's final decisions.

Dr. Hansen asked the board to approve action item 3.01, recorded in the meeting as “resolution 649.26, preliminary determination resolution 2026 B project financing.” A motion was made and seconded (moved by Julie; seconded by Rachel), and staff noted BoardDocs login issues for at least one participant that required an oral vote option; the transcript contains the motion and the request for votes but does not include a formal, complete roll-call tally or a clear announcement of the final outcome for the resolution in the audio record.

The district noted a tentative timeline: staff are “eyeballing” bond issuance in the fall but said exact timing will hinge on needs and market conditions. Next procedural steps include the building corporation and school corporation approvals and an additional appropriation vote before any bond sale.

The board thanked Clendening and the law firm team for the overview and moved on to the fiscal year 2027 budget presentation. The board scheduled a fuller presentation of project plans for its March 18 meeting and will consider adoption-related actions at the March 24 meeting.