Presenter Shelby outlines financing plan, timeline and potential tax impact for proposed Northland Learning Center

Shelby, a presenter working with the Northland Learning Center (NLC), told the Chisholm Public School District board that the analysis she was asked to produce focused on what portion of a new NLC building the district would finance and what that would mean for taxpayers.

Shelby said the analysis compares the district’s current lease levy for the James Madison building with the financing that would be required for a new NLC facility. She said roughly $10,600,000 from a source she referred to as “I triple r” would be used first, which could limit but not fully eliminate a year in which homeowners might temporarily pay both levies. Shelby described an example in which a $19 reduction tied to the James Madison lease and a $26 levy increase for new financing could create a modest net increase in year one on a $200,000 home.

On schedule, Shelby told the board the project design could be completed in summer 2024, bidding in winter 2024–25, construction beginning in May 2025, and an estimated completion date of July 1, 2026. She warned that financing and construction milestones may not align precisely, which is the principal driver of any short overlap in levy charges.

Board members asked whether Mountaineer would donate land or charge for it; Shelby said the district’s understanding is that there are two plots, one that would be donated and one that would be purchased. She also clarified that the $34,000 figure discussed represents Chisholm’s current allocation toward leasing the James Madison space, while utilities and operations remain the district’s ongoing responsibility and are not levy-eligible.

Shelby explained the ownership and financing structure: the NLC would hold a ground lease and the trustee/certificate holders would technically own the facility until financing is paid; after payoff, ownership transfers to the NLC. She said JPA (joint powers agreement) terms are likely to restrict member-district withdrawal during the financing term and that current member allocations are calculated on a per-pupil basis.

Board members discussed the alternative of Chisholm operating services independently. Shelby and other speakers said doing so would likely require hiring a licensed director, additional teachers, more 1:1 aides, and contracting therapy services, increasing recurring personnel costs and compounding recruitment challenges in a small town. Supporters of the cooperative model said the NLC enables shared access to high-cost specialists that a single small district would struggle to staff and afford.

Shelby asked the board to decide whether to authorize staff to move the district’s position to the NLC board; she said superintendents on the NLC board would then set building-specific details and finalize the financing allocation. She offered to provide additional details to the board if members had follow-up questions before the next meeting.

Next step: the board will consider whether to authorize Shelby/administration to proceed to the NLC board with Chisholm’s participation; that decision is scheduled to return to the board on the upcoming agenda.