MICHIGAN CITY – The Michigan City Area Schools Board of Directors voted unanimously on Tuesday to appropriate $5.8 million from its Rainy Day Fund to purchase and make improvements to the former Brown Mackie College Campus.
MCAS Supt. Barbara Eason-Watkins said during a public hearing on the matter that the district’s intent is to establish an early childhood education program at the site, and to move some career and technical classes there.
“Over the course of this school year, we’ve again heard from our families and the business community how critical the school district is to the future of Michigan City and in meeting important workforce needs,” she said.
“We have been working expeditiously to address these needs – one related to early learning opportunities and childcare, and the other related to expanding and updating training for the workforce in this community.”
Eason-Watkins cited a survey issued by MCAS this year in which 79% of respondents indicated they do want the district to offer early learning classes, with another 17% indicating they may want them.
“Expanding early childhood learning opportunities would greatly benefit the academic progress of our students,” Eason-Watkins said. “… Early learning classes would also serve as clinical sites for our education professionals' programming, in addition to our elementary classrooms.
“In addition, area businesses are seeking to bolster their workforces – especially in high-demand fields related to manufacturing and welding.”
The acquisition and improvement of the old Brown Mackie building and surrounding property at 1001 U.S. 20 will happen in phases and will cost taxpayers nothing extra, the superintendent explained.
“We are requesting the use of rainy-day funds for an initial building purchase and upgrades, an appropriation that will be reimbursed at a later date,” she said. “This will allow us to expedite construction and launch of the programs.”
Jimmy Shanahan, bond counsel for MCAS, explained to the School Board that it would be voting on multiple resolutions it would need to pass to get the acquisition process started.
"If you decide to move forward tonight, what you are doing is putting yourself in the most advantageous position to move forward with the acquisition as quickly as possible rather than wait for the bonds to actually be issued in the future."
In other words, by borrowing the money from the Rainy Day Fund now, MCAS can seek bonds to fund the project later this year, and then use that money to pay itself back.
Belvia Gray, an accounting consultant from Baker Tilly, showed the board its illustrative financing options.
Gray said MCAS has a downward-sloping debt structure and short repayment structure, allowing for “tax-neutrality” and for all current bonds to be repaid by the end of 2026.
At this point in time, she said, MCAS qualifies to borrow more than $11.4 million in its own name. However, all it will borrow for this particular project is $5,815,000, to be reimbursed over about five years.
Gray said that number would be the maximum borrowing amount, and that the district can spend less, but not more.
She anticipates that borrowing $5.8 million from itself would allow between $5.5 million and 5.6 million for the purchase of real estate and improvements.
“… [The] first phase of this project would involve the purchase of the Brown Mackie facility and the initial preparation of early learning classrooms,” Eason-Watkins said.
“It is our hope – given the supply and construction challenges that exist – that we will be able to open the first two classrooms no later than December 2022; and the remaining three would be open for the start of the 2023-24 school year.
“The second phase would also involve transitioning and updating some of our career tech programs and equipment to ensure alignment with local industry needs.
"We are tentatively planning to move several of our career-tech programs from the A.K. Smith Career Center to the Brown Mackie facility, pending the final design, to ensure all students have access to first-class learning environments.”
When the meeting opened up for public comment on the matter, no one elected to speak.
Eason-Watkins said she will share more information on plans and timelines in the coming months.
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