Local Government Commission approves county’s central office loan
Published 12:10 am Wednesday, February 4, 2015
Perhaps a groundbreaking ceremony or paperwork remains, but a proposed central office for the Rowan-Salisbury School System became a reality Tuesday when the N.C. Local Government Commission approved the largest part of funding for the project.
The LGC, a state financial regulatory agency, unanimously approved the $6.5 million loan from SunTrust Bank. The loan comes with a 2.48 percent interest rate and will be repaid through a tax that’s specifically designated for school system capital improvements.
The commission briefly discussed letters — a couple by a single person about a potential fraud and another expressing support for the central office — sent to Raleigh about the loan. LGC staff members said no credible evidence existed of a fraud and the commission cited a letter by local political group La Resistance as a reason for approval.
“The need for this project is long-standing. The County’s Board of Education and Commissioners have come together to overwhelmingly approve the current site, building contract, and proposed financing,” La Resistance’s letter states. “The proposed financing meets the statutory requirement for approval by the LGC. As citizens of Rowan County, we request that the LGC approve the proposed financing for the Rowan Salisbury Schools Central Office project.”
No Rowan County representative attended the meeting in person. When asked, County Manager Aaron Church said the loan didn’t require a representative. Church said the loan’s merits spoke for itself.
Part of the LGC’s discussion before approval included the lengthy process leading to the $6.5 million loan. The commission cited recent arbitration between the Rowan County Board of Commissioners and school board that led to the $6.5 million amount.
Both city and school board officials expressed excitement that a construction start date is near after more than two decades of discussion.
“It’s something that’s been worked on and fought over for years and years,” said school board Chairman Josh Wagner. “We have the funding for it, we have a piece of property for it and we have the plans for it. I’m excited we’re here, we can move forward and get it done.”
Assistant Superintendent Anthony Vann said some paperwork remains to be completed between the county and school board before construction could officially begin, but all permits and bid documents have been approved. He said the school system’s deadline for the central office’s completion is about one year.
“There’s been years of groundwork before this point and we anticipate, from here on, it’ll be a much easier process,” Vann said.
One reason for the central office, Vann said, is increasing efficiency with more employees at one location. The school system’s central office staff is currently spread out in multiple buildings.
“Rowan County’s educational system needs a new image,” said Salisbury Mayor Paul Woodson. “This new central office will be a positive step.”
School Board Member Dr. Richard Miller compared the central office to the hub of a car or bike wheel with 35 spokes, representing the 35 different schools in the system. Without a hub, Miller said, the system wouldn’t be as strong.
With the county’s loan now approved, Wagner said he began to feel confident during the previous six months that all forms of funding would come together.
“Up to that point, there were still a lot of questions, but after the agreement with the county and the recent elections and the new commissioners came on and didn’t have any differing views in terms of trying to stop it, I felt confident that we were in a good spot and would probably be OK,” Wagner said.
Contact reporter Josh Bergeron at 704-797-4246.