The Duluth, Minn., School Board has voted to approve language for legislation that would enable the district to finance the construction of new administrative offices and transportation facilities on the Central High School property.
If approved by the state House and Senate, the bill, H.F. 3992 and S.F. 3722, would allow the school district to issue general obligation bonds in an amount not to exceed $31.5 million and levy funds from the long-term facilities maintenance revenue in order to finance building new administrative offices and transportation facilities on the Central High School property.
The board voted unanimously Monday to approve the bill's language.
Currently, school districts are only allowed to levy long-term facilities maintenance revenue to pay for deferred maintenance of buildings, such as the estimated $48.5 million required to restore and repair Historic Old Central.
In January, district administration presented a plan to the School Board recommending the district sell Historic Old Central High School; relocate the administration and transportation department to the back third of the Central High School property; continue to market the front two-thirds of the Central High School property, located just off East Central Entrance, for sale; and find space to lease in the city for the Area Learning Center and Adult Basic Education.
The administration estimated it would cost $31.5 million in investment at the Central High School site to move administration there and build transportation facilities. A portion of the property would continue to be marketed: the high school building, parking lot, tennis courts, football field and secondary technical center, which commercial real estate broker Greg Follmer said is the most valuable part of the site.
Any money gained from the sale of Historic Old Central or the remaining property at the Central High School site would be put toward the estimated $31.5 million, according to the recommendation.
The proposed bill language says the district must develop a plan to sell Historic Old Central to another party. That plan must document the current operating costs of the facility, the expected maintenance costs for the facility over the next 20 years and describe the alternatives for the programs and staff currently located in the building.
The plan must also document potential building projects: constructing or acquiring new administrative space; adding transportation maintenance and bus storage facilities; improving roads and infrastructure; and preparing the sites for building as well as demolishing the Central High School building.
Once complete, the district must submit the projects listed in the plan for review and comment and hold a public hearing on the plan and building projects. Once the public hearing is held and public comment is taken, the district must submit the projects included in the plan to the Minnesota Department of Education commissioner for review and comment.
If the commissioner concludes that the plan would yield financial, student and staff efficiencies for the district, the plan will be approved.
The bill also requires the school district to submit a report on the outcomes and efficiencies achieved under this section to the Minnesota Department of Education commissioner on Feb. 15 of each even-numbered year.
The House bill has been introduced into the Education Policy Committee and is expected to be discussed by the committee Wednesday at 2:30 p.m. The House bill is being sponsored by state Rep. Mary Murphy, D-Hermantown, and Rep. Ron Kresha, R-Little Falls. The Senate bill is being sponsored by Sen. Erik Simonson, D-Duluth, Sen. Tom Bakk, D-Cook, and Sen. Justin Eichorn, R-Grand Rapids.
