Frazier board to vote on loan for renovations
PERRYOPOLIS – The Frazier School Board learned Thursday that time is running out to secure current interest rates for possible renovations and construction to the district’s two elementary schools and middle school as a commitment to take on as the project draws near. The board agreed to vote on borrowing the money at next month’s work session with assurance from a financial advisor of being able to change three revised options narrowed down in a cost analysis provided by Eckles Architects of New Castle.
“We have issues in our elementary schools common with 40 year-old buildings+ now we have come to the point to either do something or move on and go another direction,” said Donald Martin, superintendent.
Alisha Phillips, vice president of public finance for Janney Montgomery Scott, informed the board of the various amounts that would need to be financed between 25 and 30 years depending on the amount borrowed.
Phillips stressed the loan would need to be closed by Dec. 31.
Phillips said the board could get started with the loan process before deciding on a specific option by agreeing on a conservative figure.
The first revised option included a price of $19,608,979 to modernize Perry Elementary School and Central Elementary School with additions and alterations and to leave the middle school status quo.
Secondly, a new pre-kindergarten through fifth grade building of 80,000 square-foot would be constructed on the stadium site along with additions to Central at a cost of $29,190,890 that included additional costs for Perry and the construction of a new stadium.
The middle school was once again excluded from this option.
The final option was similar with a new pre-kindergarten through fifth grade building at the stadium site for $24,950,000 with costs to raze Perry and to build a new stadium included.
Martin said the site for the middle school could be designed now to help offset development and construction costs in the future.
On the other hand, David Esposito, partner with Eckles, noted that site development costs for the first two options were not included in the overall price while site acquisition costs for the third option were not determined.
Esposito said he did not favor the first two options since students would be displaced during construction while the district would pay $125,000 for temporary modular classrooms at Central and $180,000 at Perry.
Phillips said under the first option the district was looking at a local contribution of $575,000 needed with a 25-year bond; $2.1 million for the second option with a 30-year bond and $1.6 million for the third option that also required a 30-year bond.
Tom Shetterly, business manager, said since the district is unable to raise taxes above the state index to fund the project without a referendum it would require a half-mill tax increase for five-and-a-half years.
Shetterly said the tax increase would amount to $34 more per year for the average property assessed at $68,700.
Martin said he was looking into a Qualified Zone Academy Bond grant awarded by the state that requires a 10 percent local match to help offset costs.