School board OKs field house

Tuesday, June 1, 2010

An athletic field house at the high school and $2 million were the topic of discussion at a special meeting of the Pea Ridge School Board Thursday morning, May 20.

Board members heard from Buster Beardsley and Dan Lovelady, representatives from First Security Beardsley Public Finance out of Little Rock.

Beadsley and Lovelady presented options for financing the project, including a QSCB bond and a regular construction bond.

The first would be issued at a length of 17 years in the amount of $1,145,000 at a potential zero interest rate, making the district’s annual payments $70,000. The latter consists of $1,170,000 over 27 years at an interest rate of 4.75 percent, yielding an annual payment of $76,000.

To be considered for the QSCB bond, the board must apply to the Arkansas Department of Education by May 31. If the board applied for and was approvedto receive the funds, there is no requirement that they must act on it. The state of Arkansas currently has $124 million available for Arkansas school districts, according to Beardsley.

The bond is a taxable bond, allowing to issuer to grant the money at a zero interest rate while profiting off the tax deduction.

“This bond is an animal withinitself,” Beardsley said.

He cautioned the board on the QSCB bond, urging them to be realistic about the fact that this loan may limit future abilities, as is not eligible to be included if the board chooses to restructure debt in the future. Early pay-off is also not an option.

Beardsley said if the board needed more money two to three years from now, the ways to achieve that are millage increases and restructuring debt.

“Be careful about cutting off other avenues,” he said.

“We know going into this we can’t pay it off early,” Rick Webb, board member, said. “We’re here to take care of facilities and do the best we can for our kids so that they will reap the benefits from them.

“We’ve waited and waited and waited ... We haven’t spent any money on (athletic facilities) in a while,” Webb said.

“Plus, at a zero percent interest rate, we save $600,000 over the life of the loan. I’m good with that,” Clark Tyndall, board member, said.

Superintendent Mike Van Dyke recommended the board move to submit the application for the QSCB loan and hire First Security as the fiscal agent, as required. The motion was made, seconded and voted for with all in favor.

Board member Darin Wright was absent.

In addition to the bond money, Van Dyke presented a resolution to the board to re-dedicate the $500,000 that was originally set aside to build a new football stadium for the “sole purpose of constructing and equipping a football practice facility,” as well as putting an additional $500,000 from the building/operating fund towards the project. Webb suggested the wording be changed to label the new facility as an “athletic or multi-purpose facility.”

Van Dyke will present the resolution again with the changes at the next board meeting.

“I just want the community to know that (the construction process) is a lengthy process, but we are going to be doing the Intermediate School. Just hang in there,” Jenny Wood, board president, said.

The next meeting is set for 6 p.m. Thursday, June 10, in the high school Media Center.

Architect drafted

Architect Steve Elliot got the go-ahead from the Pea Ridge School Board at a special meeting Thursday to discuss plans for the new multi-purpose facility with contractors and begin constructing final drawings to begin the bidding process.

Jim DePaul from Universal Fabric Structures, Inc., spoke to the board about his company’s ability to avoid overspending in areas such as heating and cooling and flooring, as they specialize in large sports facilities. He estimated the project cost $2.13 million.

Elliot agreed it would be wise to “rely on an expert” in the drawing and pricing process. He said he would consult DePaul, as well as contractor Baldwin and Shell, to get accurate pricing.

The board hopes to have the project completed by the start of the 2011/2012 school year.

Elliot was asked to present his final drawings ready to bid at the July school board meeting.

News, Pages 1 on 05/26/2010