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Colusa County Office of Education finalizes property purchase plan, Board approves lease‑purchase financing
Summary
The Colusa County Board of Education approved a site lease and lease‑purchase agreement and heard a financing presentation that showed competitive bids, a $4.2M appraisal and a planned $2.3M purchase price, and an estimated 15‑year financing with roughly $225,000 annual payments under the selected structure.
The Colusa County Board of Education moved forward this year with a planned property acquisition in Colusa and approved a lease‑purchase financing structure to fund it. At the Aug. 14, 2024 meeting the Board adopted Resolution No. 24/25‑01 authorizing execution of a site lease and a lease purchase agreement; in subsequent meetings staff and bond advisors presented financing results and underwriting details that the Board discussed prior to closing.
Government Financial Strategies CEO Lori Raineri presented the financing results at the Sept. 11, 2024 meeting and described five firm bids from across the U.S., naming Flagstar as the strongest offer that locked in a fixed interest rate on the preferred terms. Aaron Heinz summarized financial details and comparative values: “an appraisal received yesterday was $4.2 million and CCOE is buying it for $2.3 million,” and staff discussed a 15‑year financing term, approximately $225,000 in annual payments, fixed interest versus market volatility, and collateral to secure the financing. Board members probed prepayment terms, subleasing possibilities, and environmental review timelines before approving the financing authorization.
Why it matters: purchasing this property creates space for adult education, greenhouse and vocational training, drying rooms and ancillary facilities tied to the Education Village program. The Board's approval of the lease‑purchase structure and creation of a capital fund (Fund 40) are intended to separate capital financing from daily operating budgets. Next steps identified by staff included completing environmental reports, finalizing placement bids through the placement agent, and confirming insurance and closing logistics.
