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Board approves resolution to secure county-backed financing for JF Webb and South Granville High School projects
Summary
The Granville County Board of Education approved a resolution authorizing transfer of property to the county as collateral and a lease-back arrangement to secure financing for multiple projects at JF Webb and South Granville High Schools, with administration and counsel describing a 15-year financing option as the recommended term.
The Granville County Board of Education on June 2 approved a resolution that authorizes transferring district property to the county so the county can use it as collateral to secure loans for a package of capital projects at JF Webb and South Granville high schools.
Superintendent Dr. Wimborn told the board the projects include repaving and reconfiguring parking areas, installing new athletic tracks and extensive roof replacements at both campuses. He described the construction as “about $4.5 million worth of projects” specifically tied to the two high schools, and administration said the overall financing package under discussion could reach higher totals to cover six individual bid packages across the campuses.
Attorney Merkson, representing county counsel, explained the legal mechanics: the county must hold title to property used as collateral for the loan and will lease it back to the school system during the loan term. Counsel described the board action as the necessary first step to enable the county to participate as lender and to allow contractors to be paid once work is inspected and certified.
Board members questioned term options and mechanics of the lease. Finance staff and counsel said the administration reviewed 10-, 15- and 20-year repayment options and “landed on 15 years” to preserve district capital funds for annual use while meeting debt service obligations. Officials said remaining closing terms — including final interest rate and amortization details — would be completed at closing and that the board’s approval delegates closing authority to the board chair.
The board voted to approve the resolution as presented. The motion passed on a voice vote. The action authorizes the administration to finalize agreements and proceed with the transfer/lease approach to secure the financing needed to begin the scheduled summer work and subsequent phases of roof and site work.
Next steps include finalizing loan documents with the county and executing the lease-back agreement; administration said it will provide details of the interest rate and payment schedule once the loan is closed.
