Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Facility Financing topic
No spam. Unsubscribe anytime.
Blue River Valley board reapproves building corporation and backs lease amendment to allow tax-exempt bonds
Summary
At its May 11 meeting the Blue River Valley Board approved an amendment to an existing lease and reauthorized the nonprofit building corporation so bond proceeds can fund building improvements; the board approved both exhibits by voice vote, with Exhibit B recorded as 5-0.
The Blue River Valley Board of Trustees voted on May 11 to amend a lease related to a district building and to reapprove a nonprofit building corporation so tax-exempt bonds may be issued to fund improvements.
Board members discussed a financing structure commonly used by Indiana school corporations: extending the lease term and increasing lease rental payments so a building corporation can issue tax-exempt bonds and use the proceeds for needed work without counting against the school corporation’s constitutional debt limit. The board’s motion to approve Exhibit A (the lease amendment) was moved and seconded and carried; the board subsequently approved Exhibit B reauthorizing the building corporation, which was recorded as a 5-0 vote.
Board members described the amendment as a mechanism to make bond principal and interest payments via the increased lease rental; the meeting record notes that bond proceeds will be used for “as needed improvements to the building.” The board did not specify bond size, repayment schedule, or a closing date during the public discussion.
What happened next: with board approval of the exhibits, the building corporation is authorized to proceed with issuing tax-exempt bonds on behalf of the school corporation, subject to the corporation’s subsequent bond issuance steps and any third-party approvals required by bond markets or tax rules. The board did not take further public action on the bond issuance timetable during the meeting.
The meeting adjourned after routine consent items and other district business. The next regular meeting is scheduled for June 11 at 7:00 p.m.
