Prairie Grove School Board looks at costs for new facilities

PRAIRIE GROVE — The Prairie Grove School Board this week considered three options for new facilities that range in cost from $17 million to $24 million but decided to take some time to think about it before making a decision.

The board has called a special meeting for 5 p.m. Tuesday to vote on the options.

Dan Lovelady with First Security Beardsley reviewed the financing for the three options at the board’s meeting Tuesday. He said the district already has $8 million dedicated for facilities: $5 million from its building fund and $3 million in state partnership money for a new junior high addition. The district would use second-lien bonds to finance the remainder of the projects.

The three options before the School Board are:

• Option 1: Build the junior high addition for $17 million.

• Option 2: Build the junior high addition and a new fieldhouse for $21 million.

• Option 3: Build the junior high addition, new fieldhouse and an indoor facility for $24 million.

The board has committed to building a two-story junior high addition with about 46,000 square feet and 22 classrooms and a cafeteria. It will be on the site of the old high school building and will connect to the present junior high.

Lovelady said second-lien bonds function like a second mortgage on a house. Second-lien bonds would not extend the district’s debt or increase the School District’s millage rate, he said.

He recommended two separate bond issues if the board decides to go with option 2 or 3. Series A bonds would be issued this year, and Series B would be issued in February 2025.

The district’s debt payment for the second-lien bonds would be $700,000 annually for option 1, almost $1 million annually for option 2 or $1.3 million annually for option 3.

Lovelady noted the district has been transferring about $2 million at the end of each year to its building fund — enough to make the payment if the board decides to go with the third option and still have money left over, he said.

Looking at housing development in Prairie Grove and rising assessments, Lovelady said he believes the district’s surplus money will continue to increase.

The district’s current debt service is around $1.5 million.

Board member J.C. Dobbs said he thought it would be an advantage to look at all three projects.

“I’d like to see us do it,” Dobbs said, recalling the fieldhouse was new during his senior year in 1990. “It’s

time we upgrade that facility.”

He recommended the district make sure the community realizes an indoor facility would not just be a football facility but would be used by other sports and student organizations, including soccer, baseball, softball and band.

In addition, the proposed fieldhouse would have separate locker areas for football, baseball, softball, and girls and boys soccer.

Superintendent Lance Campbell said about 300 kids would use the facility.

Board member Casie Ruland said she appreciated Lovelady’s information.

“We’re growing our kids, growing our district and growing our needs, and the rooftops back it up,” Ruland said.

Campbell did not recommend the board decide at this week’s meeting but told them a fieldhouse and indoor facility would meet a lot of needs for students “and we feel confident financially moving forward.”

Board member Bart Orr suggested the board think about the options before taking a vote.

After the meeting, Board President William Dick said the board is 99% sure it wants to build all three facilities but members wanted to mull it over a little first before voting on it.