Redwood Area school board directs administration to proceed with $3.5 million project

A plan to build a career and technical training center on the Redwood Valley schools site is moving along at a much faster pace than had originally been discussed.

The Redwood Area Board of Education did its part to fast-track the process at its June 26 meeting by directing administration to move forward with development and planning based on a budget of $3.5 million.

The idea of a career and technical training center became more than just an idea when Orrin Estebo committed $1 million over a period of six years to build such a program. Believing the project should not be delayed any longer than is necessary, the board discussed moving ahead with a faster timeline at its May meeting and there learned about an option it has known as a lease levy.

Andrea Uhl of Ehlers Financial Services talked about the lease purchase and lease levy option with the board at its June meeting in an effort to help them better understand the concept. Under the lease purchase and lease levy financing options, the board would move ahead with the project by entering a lease purchase agreement with a lessor (i.e. a bank, financing company or trustee).

That lessor would own the building and then would lease it to the school district, and at the end of the term of the lease would then sell the asset to the district for a nominal amount.

State statute allows local units of government to use a lease purchase option for various things, such as land purchase, site improvements, purchase of existing buildings, additions to existing buildings, equipment, roof replacement or energy improvements.

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