Board OKs lease-purchase for building
At a special meeting Monday night, the Tonganoxie school board approved a resolution that could pave the way for the district's multi-purpose athletic building.
Before the meeting, Richard Erickson, superintendent, explained that the resolution would allow the school district to enter into a lease-purchase agreement with First State Bank and Trust.
"First State Bank is willing to put up a half-million dollars of interest-free money for the purchase of the multi-purpose facility at the athletic complex," Erickson said.
The bank would pay for construction of the new building. According to state law, to enter into the lease-purchase agreement with the bank, the school board must approve a resolution, publish it in the newspaper and allow for a 30-day protest period.
Erickson said the district would pay the lease-purchase during a four-year period at about $125,000 each year.
Erickson said he was pleased with the terms of the agreement.
"It's in incredible thing to have a local bank offer interest-free money for the construction of a facility," Erickson said.
The money would be repaid from the district's capital outlay fund.
"So there's really no tax increase or anything that relates to a tax increase of any kind, because it is out of the capital outlay, or it will be," Erickson said.
The board unanimously approved the resolution, with Terry Needham, whose husband is employed by the bank, abstaining from the discussion and the vote.