New Castle board approves consolidation

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.