School board OKs lease with BSC

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The Bismarck School Board has approved a 50-year lease for land at Bismarck State College. The lease was approved by the board at a special meeting Friday morning.

Nearly three acres will be leased from BSCin return for the district spending $9 million to construct a new career and technical education building. The site is located across from the current vocational technical center, on College Drive.

Within 90 days after the district intends to start construction of the building, the lease goes into effect, but no later than July 1, 2009. The district has a year to complete the building, according to the terms of the lease. Construction likely won't begin until 2009, Superintendent Paul Johnson said.

The district shares the current vocational technical center with BSC, which it will lease until 2009. It leases the space for a rate based on operating expenses, percent of building occupancy, utilities, maintenance, staff and support staff. This rate changes yearly, Johnson said. The district pays $138,000 a year, and it changes mostly because of increases in support staff benefits and pay, he said.

Both buildings will be shared by the district and BSC. As part of this agreement, the district will pay part of the cost of renovating the current building. The areas for the welding and auto collision programs need to be renovated, at a cost of about $350,000. The district's share is half of the appraised market value of the leased land, which will be determined by an appraiser.

The new building will house four of the existing career and technical education programs, although which specific programs will be decided later. The new building will be 50,000 square feet and have a greenhouse.

Paying for the new building also is yet to be decided, but the district has a few options, Johnson said. One possibility is paying for it from the building fund and general fund by saving over three fiscal years. The district levies 10 mills for the building fund and 8 mills in the general fund for building projects, which raises about $3 million. This option does not change the mill levy.

Another possibility is to use the building fund and general fund for two fiscal years and then take out a school construction loan for the remaining amount, Johnson said.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@;bismarcktribune.com.)

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