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Lawrence Township board approves preliminary determination to seek up to $175 million for McKenzie Center, district capital work
Summary
The MSD Lawrence Township Board of Education on June 8 adopted a preliminary determination to issue up to $175 million in bonds to fund the McKenzie Center transformation and districtwide capital and maintenance projects; board members were told the plan staggers borrowing and models conservative interest assumptions.
The MSD Lawrence Township Board of Education voted June 8 to adopt a resolution making a preliminary determination to issue bonds of up to $175 million to fund the McKenzie Center of Innovation and Technology transformation and districtwide long-term capital maintenance.
Board presenters said the $175 million maximum would be allocated roughly as $150 million for the McKenzie transformation and $25 million for continued HVAC, roofing and other maintenance projects. Mr. Matt Miles told the board, “we are asking for $175 million in this project,” and said the district plans to stagger borrowing over multiple issues tied to construction phases rather than issuing the full amount up front.
Municipal adviser Bellevia Gray of Baker Tilly outlined the financial parameters included in the resolution: a 25-year repayment horizon overall, with no single bond series exceeding a 20-year repayment term. Gray said the analysis was modeled conservatively using a 6% coupon for planning, though “today, if bonds were being issued, they would be around 4%.” She also noted the district’s tax-cap context: survey modeling shows about 84% of residential parcels are already at local tax caps and roughly 74% of parcels inside the school corporation boundaries are at caps, meaning many homeowners would not see a change in their tax bill if caps bind.
Board members pressed presenters on interest-rate and cost risks. Staff said construction managers and architects are meeting frequently and the district expects to have a guaranteed maximum price (GMP) for major McKenzie work by June 24; presenters emphasized that while plans include conservative price and rate assumptions, the district cannot guarantee future market movements and will rely on staging issuance and contractual protections where possible.
The board voted to approve the resolution after a motion (moved by Miss Pucket; seconded by Miss Dunn). The vote was recorded as passed in the meeting minutes. After the vote, staff thanked project partners from Schmidt Associates for participating in the public hearing.
What happens next: presenters said this approval is an initial, legally required step; additional legal steps and later board actions will be required before bonds are actually sold, and staff tentatively scheduled further meetings later in the year to finalize financing and issuance logistics.
Costs and clarifications: the $175 million figure is the maximum in the resolution; actual issuance and tax impacts will depend on the final financing structure, the number and timing of series issued, final interest rates and final construction costs. The district modeled conservatively and built in FF&E budgets for high-cost career/CTE equipment at the McKenzie Center.
