June 30, 2010
Patrick E. Litowitz
New Castle News
NEW CASTLE — Financial incentives and a revamped plan persuaded New Castle school board members to consolidate the district’s kindergarten through second grades.
During yesterday’s special meeting, the board approved the creation of the Harry W. Lockley Early Learning Center. Construction is scheduled to begin in the fall of 2011.
The measure passed 7-2. Backing the project were J. Allan Joseph, Mark Kirkwood, Karen Humphrey, Fred Mozzocio, Brad Olson Jr., Anna Pascarella and Mary Ann Tofel.
Dr. Marilyn K. Berkely and Barbara Razzano voted no. Razzano, who was not in town, participated in a teleconference.
“I commend this board for taking the courage during these difficult times to make such a good decision,” superintendent George Gabriel said. “Not only are we setting the foundation for the young children of this district, but we are being fiscally responsible.”
Gabriel declared the consolidation effort dead in May. At the time, Kirkwood, Mozzocio, Olson, Berkely and Razzano said they were not prepared to back the project. Their concerns included the original $29 million cost, the state’s fiscal condition, the effect on taxpayers and the overall economy.
Earlier this month, the district was selected to receive a $15-million, interest-free bond issue. Gabriel asked the board at its June 7 work session to reconsider its position. Four of the seven members present agreed to the superintendent’s request.
David Esposito of Eckles Architecture & Engineering reworked the original proposal, which involved renovations to Lockley and George Washington Intermediate Elementary School. Esposito focused on the early learning center.
Eckles estimated the Lockley renovations to run between $16.4 million to $19.3 million. The district will use money from its $9 million fund balance to cover costs over the $15 million benchmark.
In the interim, business manager Joseph Ambrosini discovered the funding offered additional benefits.
Under the program, the state issues the bonds. The federal government, through its stimulus program, will make interest payments on the district’s behalf to bond holders.
New Castle must repay the bond in 18 years. During that period, Ambrosini said, the state will place the district’s payments in an interest-bearing account. When the bond matures, New Castle will earn $3.5 million to $4.4 million.
The exact amount will be known when the financing is finalized.
Ambrosini added that the state will reimburse the district 28 percent of the project’s total cost.
“I’m happy with it,” he said. “I would rather do it now with zero percent financing and how it’s structured through the interest savings.”
As part of its vote, the board hired Eckles to oversee the project. Bids are not required for a professional service contract, Gabriel said.
“We have a good relationship with Eckles. They have worked well with us.”
Esposito said Eckles will have a building design prepared within two to three months.
The renovations will not require the district to purchase nearby homes. However, it will need to acquire adjacent land, which Solid Rock Ministries owns.
Last year, a local animal welfare organization agreed to buy the property for $125,000. Neighborhood opposition and zoning issues halted the sale.
There was a lack of public interest in yesterday’s session, which included a vote on the $39.9 million budget for the upcoming school year. One parent spoke to the board regarding vandalized playground equipment before discussing concerns with the consolidation project.
Wednesday, June 30, 2010
Wednesday, June 9, 2010
Board weighs project's dollars
June 9, 2010
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The pros and cons remain unchanged, but $15 million may sway the support required to consolidate New Castle schools.
Mark Kirkwood broke a prolonged silence before agreeing to the proposal. During Monday night’s work session, he provided the fourth vote of the seven school board members present.
Originally scheduled for tonight’s board meeting, the consolidation project vote will be part of a special meeting taking place at 5 p.m. June 29.
The Pennsylvania Department of Education alerted Superintendent George Gabriel last week that the district was awarded a no-interest, $15 million loan. The money comes from federal stimulus funding earmarked for school construction projects.
Gabriel then unveiled a pared-down version of a kindergarten-through-second-grade building. The price tag dropped from $29 million to $19.3 million.
Renovations to George Washington Intermediate Elementary School were scrapped.
“Hopefully, it will change the complexion of the project in addition to some other things that could be done,” Gabriel said.
The early learning center would be built on the Harry W. Lockley Kindergarten Center site.
Approximately 5,000 square feet were trimmed from the original plans. David Esposito of Eckles Architecture & Engineering said that was accomplished through reducing gym size and five special education classrooms.
“Unless you can change the area of the building, I’m not interested in participating in some sham that we can make this cheaper,” Esposito said. “The only way you can make it cheaper is to make the building smaller.”
Business manager Joseph Ambrosini said the district will apply $4.3 million from its fund balance to lower the cost to $15 million. The interest-free loan will produce savings, in addition to closing West Side and Thaddeus Stevens primary centers and making staff reductions.
District third-graders would be housed in the John F. Kennedy Primary Center.
The district pays $2.9 million annually on bond issues associated with the construction of its junior/senior high school. The early learning center would add $250,000 to its yearly debt, according to Ambrosini.
“There’s going to be a whole lot of operating savings that could almost fund this project in its entirety.”
However, board members Dr. Marilyn K. Berkely and Barbara Razzano remained opposed.
Gabriel asked Berkely what the district should do.
“I just want to wait and see what happens when the new governor is in. That’s all,” she said.
Gabriel responded, “Wait for a new governor? You think that’s our answer?”
“No. I just think that’s a lot of money, and we can’t afford it right now,” she said. “Nothing’s changed in my mind.”
Esposito agreed that today’s economy is in poor shape.
“But if all of you believe in 15 years, it’s still going to be bad then we’re really in bad shape,” he said. “We’ll eventually get through this.”
“But you say that in an area that hasn’t recovered from the steel mills closing and that was 30 years ago,” board member Brad Olson Jr. said.
Olson passed on the consensus vote.
With Karen Humphrey, Anna Pascarella and Mary Ann Tofel backing the plan, Kirkwood represented the majority vote needed to move the proposal forward. He took several minutes before making a decision.
In the interim, Gabriel said it appeared the project was dead.
“I’ve been against (the project), but with $15 million, I’m going to say ‘Yes,’” Kirkwood said.
By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com
The pros and cons remain unchanged, but $15 million may sway the support required to consolidate New Castle schools.
Mark Kirkwood broke a prolonged silence before agreeing to the proposal. During Monday night’s work session, he provided the fourth vote of the seven school board members present.
Originally scheduled for tonight’s board meeting, the consolidation project vote will be part of a special meeting taking place at 5 p.m. June 29.
The Pennsylvania Department of Education alerted Superintendent George Gabriel last week that the district was awarded a no-interest, $15 million loan. The money comes from federal stimulus funding earmarked for school construction projects.
Gabriel then unveiled a pared-down version of a kindergarten-through-second-grade building. The price tag dropped from $29 million to $19.3 million.
Renovations to George Washington Intermediate Elementary School were scrapped.
“Hopefully, it will change the complexion of the project in addition to some other things that could be done,” Gabriel said.
The early learning center would be built on the Harry W. Lockley Kindergarten Center site.
Approximately 5,000 square feet were trimmed from the original plans. David Esposito of Eckles Architecture & Engineering said that was accomplished through reducing gym size and five special education classrooms.
“Unless you can change the area of the building, I’m not interested in participating in some sham that we can make this cheaper,” Esposito said. “The only way you can make it cheaper is to make the building smaller.”
Business manager Joseph Ambrosini said the district will apply $4.3 million from its fund balance to lower the cost to $15 million. The interest-free loan will produce savings, in addition to closing West Side and Thaddeus Stevens primary centers and making staff reductions.
District third-graders would be housed in the John F. Kennedy Primary Center.
The district pays $2.9 million annually on bond issues associated with the construction of its junior/senior high school. The early learning center would add $250,000 to its yearly debt, according to Ambrosini.
“There’s going to be a whole lot of operating savings that could almost fund this project in its entirety.”
However, board members Dr. Marilyn K. Berkely and Barbara Razzano remained opposed.
Gabriel asked Berkely what the district should do.
“I just want to wait and see what happens when the new governor is in. That’s all,” she said.
Gabriel responded, “Wait for a new governor? You think that’s our answer?”
“No. I just think that’s a lot of money, and we can’t afford it right now,” she said. “Nothing’s changed in my mind.”
Esposito agreed that today’s economy is in poor shape.
“But if all of you believe in 15 years, it’s still going to be bad then we’re really in bad shape,” he said. “We’ll eventually get through this.”
“But you say that in an area that hasn’t recovered from the steel mills closing and that was 30 years ago,” board member Brad Olson Jr. said.
Olson passed on the consensus vote.
With Karen Humphrey, Anna Pascarella and Mary Ann Tofel backing the plan, Kirkwood represented the majority vote needed to move the proposal forward. He took several minutes before making a decision.
In the interim, Gabriel said it appeared the project was dead.
“I’ve been against (the project), but with $15 million, I’m going to say ‘Yes,’” Kirkwood said.
Friday, June 4, 2010
Stimulus funds may jump-start consolidation
June 4, 2010
Patrick E. Litowitz
New Castle News
NEW CASTLE — A federal award of $15 million means zero to the New Castle school district’s stalled consolidation project.
That’s “zero” as in no-interest loan or “zero” as in board members’ support.
Yesterday, Gov. Ed Rendell said 46 school districts were selected to receive $602 million through the federal American Recovery and Reinvestment Act.
The funds are designated to pay interest costs associated with one of three types of construction projects: energy or water usage reduction, early childhood education or learning lab expansion.
New Castle sought $21 million when it applied for the federal funds earlier this year as part of its proposed $29 million renovations. The project’s centerpiece was the creation of an early learning center on the site of Harry W. Lockley Kindergarten Center.
The plan also featured renovations to George Washington Intermediate Elementary School while closing Thaddeus Stevens, West Side and John F. Kennedy primary centers.
“These funds will help put people to work on vital construction projects, save energy costs and help improve educational programs — and the attractive financing will save the taxpayers more than half a billion in financing costs,” Rendell said in a press release.
However, Superintendent George Gabriel shut down the effort during a committee of the whole meeting on May 13. At the time, he said it appeared board members wouldn’t commit.
Their primary concerns were the expense involved, the state’s financial condition and overall economic uncertainty.
A formal vote wasn’t taken, but five of the nine board members told the New Castle News they wouldn’t support the plan. Gabriel had been prepared to poll the board on the project’s fate during its Monday work session.
“With this new development, we have to revisit the project and talk to the board,” Gabriel said last night. “The most important piece is are we going to do anything with this (money).”
He said one option would be a scaled-down version of the latest proposal. He declined to provide further details until he met with the board.
Under the guidelines, the state will issue bonds for the building projects. The stimulus dollars are allocated to cover the interest payments, allowing school districts to pay only on the money being borrowed.
“With federal help, we lowered costs and are helping our districts make these terrific improvements,” Rendell said.
Regional school district receiving funds include Sharon ($15 million), Farrell ($810,000) and Pittsburgh ($50 million).
If the New Castle school board declines to participate, the district’s $15 million share is returned to the state.
Patrick E. Litowitz
New Castle News
NEW CASTLE — A federal award of $15 million means zero to the New Castle school district’s stalled consolidation project.
That’s “zero” as in no-interest loan or “zero” as in board members’ support.
Yesterday, Gov. Ed Rendell said 46 school districts were selected to receive $602 million through the federal American Recovery and Reinvestment Act.
The funds are designated to pay interest costs associated with one of three types of construction projects: energy or water usage reduction, early childhood education or learning lab expansion.
New Castle sought $21 million when it applied for the federal funds earlier this year as part of its proposed $29 million renovations. The project’s centerpiece was the creation of an early learning center on the site of Harry W. Lockley Kindergarten Center.
The plan also featured renovations to George Washington Intermediate Elementary School while closing Thaddeus Stevens, West Side and John F. Kennedy primary centers.
“These funds will help put people to work on vital construction projects, save energy costs and help improve educational programs — and the attractive financing will save the taxpayers more than half a billion in financing costs,” Rendell said in a press release.
However, Superintendent George Gabriel shut down the effort during a committee of the whole meeting on May 13. At the time, he said it appeared board members wouldn’t commit.
Their primary concerns were the expense involved, the state’s financial condition and overall economic uncertainty.
A formal vote wasn’t taken, but five of the nine board members told the New Castle News they wouldn’t support the plan. Gabriel had been prepared to poll the board on the project’s fate during its Monday work session.
“With this new development, we have to revisit the project and talk to the board,” Gabriel said last night. “The most important piece is are we going to do anything with this (money).”
He said one option would be a scaled-down version of the latest proposal. He declined to provide further details until he met with the board.
Under the guidelines, the state will issue bonds for the building projects. The stimulus dollars are allocated to cover the interest payments, allowing school districts to pay only on the money being borrowed.
“With federal help, we lowered costs and are helping our districts make these terrific improvements,” Rendell said.
Regional school district receiving funds include Sharon ($15 million), Farrell ($810,000) and Pittsburgh ($50 million).
If the New Castle school board declines to participate, the district’s $15 million share is returned to the state.
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