Photo courtesy of Kirkwood School District.
The KSD Board of Education (BOE) has approved a financial proposal for the purchase of the J. Milton Turner Building. On June 12, KSD announced their intention to purchase the building to serve as an Administrative Services Center, where the district offices will be located.
KSD Chief Financial Officer Mike Romay presented opportunities for financing $1.7 million of the $3.5 million purchase to the BOE. The district contacted 30 banks for financing bids, each to include terms for both a 10 and 20 year period. KSD received six proposals for the 10 year option with fixed rates ranging from 1.24% to 3.6%. Romay said he is “very pleased to receive such a low rate on the 10 year option.” Only three of the six banks provided a bid for the 20 year financing option, all of which presented an adjustable rate bid tied to the federal treasury rate, which currently sits at 1.82% for a 20 year period.
Romay recommended to the BOE that they approve the bid provided by Clayton Holdings LLC, an equity subsidiary of Commerce Bank, who presented a fixed rate of 1.24%. The board unanimously voted to approve the plan.
The next step in finalizing the purchase of the J. Milton Turner Building is for the legal councils of Commerce Bank and KSD to review legal documents. The documents will then be assessed by the BOE at its next meeting on Aug. 30 at 7 p.m. TKC will update this story as more information is made available.