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HED director details $15 million mall purchase, tenant plans and COPs financing
Summary
HED’s executive director told the school board the joint powers purchase of a mall closed with $15 million in certificates of participation; most tenants are expected to exit by Oct. 31, $9.3 million is held for construction, and member districts may levy to cover costs if chosen later.
The executive director of HED told the La Crescent‑Hokah School Board that the organization closed on a mall acquisition and is moving into design and financing phases.
De marot, executive director for HED, said the sale closed April 16 and financing used certificates of participation (COPs) totaling $15 million spread across member districts to reduce the tax impact on any one member. HED has about $9.3 million available for construction and the organization is in active talks with remaining tenants; most tenants with exit clauses are expected to vacate by Oct. 31, she said.
De marot described completed environmental testing, city and state approval steps and a design that will firewall student spaces from remaining retail and restaurants. Two restaurants — Backyard Barbecue and Ocean Sushi — are expected to stay and HED is pursuing long‑term leases with them. For program spaces that require plumbing (for ASD and other services), HED repositioned an existing salon area to reduce plumbing costs.
Financing details: because of issuance timing, the first year’s debt service will be paid from sale proceeds (the COPs), which De marot said relieves member districts of that first‑year payment. Member districts have the option to levy for the project; a levy decision would be made in December and, if approved, levied the following year with proceeds recognized in 2026, she said.
De marot gave a rough schedule: design completion targeted by September for state submittal, demolition possibly starting in January, and occupancy as early as next July 1 depending on state review timelines. She stressed that timing remains contingent on approvals and that HED is coordinating tenant transitions and options to limit interruptions for students and the community.
