A major Midwestern school district sought to issue debt to provide proceeds to purchase an existing school building, located just outside the district boundaries. The building was originally constructed to serve students within an integration district, but after having financial difficulties, a magnet school was approved for the site. The magnet school was closed several years later due to financial issues. Our client became interested in the property and submitted a bid to the state to purchase it.
Our team worked closely with the district to evaluate numerous options for financing this project. Our involvement included numerous meetings to discuss and analyze financing options, timing needs of the district, legal status of the district to purchase a facility outside their district border and the need to minimize tax impact to property owners.
Working with the client to evaluate different purchase options, it was determined that issuing Certificates of Participation was the preferred method of financing for this school building purchase.
For more information, or to learn how Baker Tilly can help your organization, contact our team.