Board holds lease hearing on proposed $25.5 million HVAC replacement; motions made to authorize lease amendment

The Oak Hill United School Corporation board opened a public lease hearing on a proposed districtwide HVAC replacement that Superintendent (Speaker 1) said would cost up to $25,500,000 and requires the district to take out a lease and sell bonds to finance the work. "To do that, it will require us to take out a lease due to the amount of money we will have to spend on that, which our maximum we can spend is 25,500,000 on that project," the superintendent said.

The superintendent told the board the project began with a facilities study and an assessment by architecture firm Gibraltar that identified HVAC systems—about 15 years old in many buildings—as the most immediate need. He outlined a procurement timeline the district expects to follow if the project proceeds as planned: solicit bids in August, award contracts in September and sell bonds in November.

During the hearing the board discussed the legal and financial mechanics of using a building corporation to issue bonds and own facilities until bonds are repaid. The superintendent said the amendment to the lease would authorize the school corporation to levy the property tax necessary to make lease payments and that lease payments would be paid to a building corporation for the purpose of repaying bondholders.

The chair asked for and the board heard a summary of the resolution determining need and a resolution assigning construction bid/contracts to the building corporation; the superintendent also described a continuing disclosure undertaking that would meet Securities and Exchange Commission requirements if the bonds are issued. The chair moved and a board member seconded to adopt the resolutions authorizing execution of the amendment to lease and related documents; the transcript records the motions and that votes were called but does not include a roll‑call tally or a recorded outcome in the excerpt provided.

Why it matters: adopting an amendment to lease and issuing bonds would allow the district to replace aging HVAC systems across its schools, but it also triggers debt service paid from property tax levies and obligates the district to continuing disclosure for public investors. The superintendent said that, depending on bid results, any excess bond proceeds might be used for site improvements, technology, equipment or buses.

What’s next: The superintendent described the district’s plan to go out for bids in August, award contracts in September and sell bonds in November if the board proceeds. The transcript does not record whether the board adopted the resolutions during the portion provided; the record shows motions and a vote call but no roll‑call tallies.