Freeman School Board approves low bidders for stadium phase two and defers financing decision

The Freeman School Board voted to accept the low, qualified bidders for phase two of the district’s stadium project and deferred a decision on how to finance the work.

Construction advisor presented tabulations for 15 bid packages, identifying low apparent bidders including Rexlinko Concrete (concrete), Pitts Design Build (general construction), Upper Midwest Door (sectional/coiling doors), Walls by Waldner (drywall/FRP), Nagel Painting (painting), Hander (HVAC), Kemp Electric (electrical), Brock Contracting (earthwork/utilities), Asco (asphalt paving), Midwest Tennis and Track (track surfacing), American Fence (fencing) and James Valley Landscaping (landscaping/irrigation). The advisor recommended accepting alternates for an encapsulated track surfacing and a sports-field lighting replacement, and proposed a $150,000 contingency to cover unforeseen soil or subsurface conditions.

"Depending on what alternates are selected, there would be no change to any of those low and qualified bids that I just ran through," the construction presenter said, and the board approved the recommended awards by motion (moved by Katie; seconded by David).

Finance adviser Jerry reviewed multiple financing scenarios for the project fund (ranging from roughly $3.4 million to $3.69 million depending on alternates and the inclusion of the well). He outlined both rated public offerings (with potential premium proceeds — one example generated $204,967.80 in premium) and private bank placements, contrasting five- and ten-year repayment terms, projected borrowing amounts, transaction costs, approximate annual debt service and average levy impacts. "What premium is...people love South Dakota bonds. They're willing to pay a higher price than par to get them," Jerry said when explaining how additional proceeds can reduce the par amount to be borrowed.

Board members discussed whether to use capital outlay certificates and whether to pursue a public offering or a bank placement. Jerry noted that a private bank placement could close faster but typically carries a higher interest cost; a rated and enhanced public offering may lower yields but takes longer and incurs additional issuance costs. The board agreed to defer a final financing decision to a future meeting so counsel could draft a resolution and trustees could review options. Mr. Todd Meyer Henry will prepare the resolution for consideration at the May meeting, and the board said it may revisit the matter at a special April meeting if needed.

The district will proceed with contracting with the named low bidders and continue planning the funding strategy; trustees retained discretion over which alternates to fund and how to allocate contingency and capital outlay dollars.