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Wooster board approves lease-purchase financing for $11.3 million modular classroom project
Summary
The board voted to approve a ground-lease and lease-purchase (COPS) agreement to finance modular classrooms and related site work estimated at about $11.3 million; the district expects a roughly $1.25 million annual payment under a 10-year plan and said using COPS would defer the timing of an operating levy.
The Wooster City Schools Board of Education voted to approve a resolution authorizing a ground lease and lease-purchase agreement (a certificate of participation, or COPS, structure) to finance modular classrooms and related site work, a step administrators said will preserve cash and extend the district’s timeline to pursue an operating levy.
Superintendent Gabe Tudor presented the financing option as an alternative to paying the roughly $11.3 million purchase and site costs from the general fund. Tudor said administrators expect to use a roughly 10-year financing structure; the district’s current forecast includes an annual payment in the neighborhood of $1.25 million, and bankers have suggested an interest cost around 4%–4.25% under current conditions. Tudor told the board a ~10-year term was likely and noted the district had budgeted conservatively for higher rates.
Tudor summarized the cost package as including the modular units, roughly a 10% construction contingency for site items such as sidewalks or awnings, and site work at Parkview (road and electric upgrades). He said the district removed a high-school HVAC project from the package to simplify financing. Tudor also noted modular units may have resale value when no longer needed, estimating 20%–25% of purchase price as a likely resale range.
Board members discussed trade-offs. One trustee noted that using COPS would delay the timing of an operating levy (Tudor suggested a May 2029 levy might be needed if financing proceeds) while paying from the general fund would likely require an earlier levy (potentially May 2028). Trustees also discussed estimated savings from closing the Cornerstone building; Tudor and the treasurer said projected operating savings from facility changes would roughly offset yearly COPS payments under current assumptions, though the board acknowledged those calculations are contingent on future state budgets and levy outcomes.
A motion to approve the resolution passed on roll call, with the clerk calling each member and recording votes; the resolution passed with one recorded no vote and the remainder in favor. The board did not specify a mover and seconder on the record. Tudor said the financing path would give the district more time to finalize master-planning and levy strategy before committing to larger permanent construction.
