(BEDFORD) – On Thursday afternoon, the North Lawrence Building Corporation voted to release the bonds from the former Fayetteville and Springville Elementary School facilities and move those bonds to the Dollens Gym and other property in Oolitic.
Under Indiana law, a “building corporation” may be formed as part of a lease financing process to assist certain Indiana taxing units, including schools, libraries, counties, and municipalities in constructing and financing a project. A building corporation owns the facility constructed with bond proceeds and leases the facility back to the taxing unit. In this manner, the building corporation acts on behalf of the issuer of bonds for the taxing unit.
In addition, North Lawrence Community School Board members voted to do the same thing. The bonds were issued in 2005 and refinanced in 2014. During the consolidation of the four elementary schools and one middle school, it was thought that both Fayetteville and Springville Elementary Schools were debt free.
The counsel for the bond/lease company will work to get those leases moved to other property. If it is completed by December 17, 2020 the school board could vote on whether to transfer ownership to Perry Township Trustee Bob Phillips. That decision is up to the school board.
The Fayetteville and Springville Elementary School facilities have been appraised as required by law to facilitate any sale or transfer of the two buildings and properties they sit on.
The lawsuit filed by Terry English requiring NLCS to transfer the school property back to the township as required by Indiana State Law has been dropped at this time. English is representing Perry Township Trustee Bob Phillips.
Phillips has been working with Lawrence County Independent Schools to acquire the Springville Elementary School facility in order to open and operate a charter school.
This week, Lawrence County Independent Schools obtained a charter to start operating in June 2021.
The Indian Creek Township trustee can request the Fayetteville School facility to be transferred back to Indian Creek Township. They have not made any determination in that regard at this time.