Board briefed on proposed $30 million capital bond; building corporation appointments approved

Jimmy Shanahan, who said his firm serves as the district’s bond counsel, presented a nonbinding overview of a proposed capital program and schedule to the School City of East Chicago board. Shanahan said the plan calls for two public hearings (April 14 and April 28), draft resolutions at the April 28 meeting, final approvals at a June meeting and selling up to $30,000,000 of bonds in staggered tranches this summer and again in 2027 to match spending timelines.

"The proposal is to authorize up to $30,000,000 of bonds over the next two years," Shanahan said. He described the authorization as a step that enables the district to sell bonds once financial parameters, a formal presentation and public input have been completed.

Attorney Harris said the board was also being asked to authorize an interlocal agreement with the city to support future grant applications and the transfer of the administration building to the city for redevelopment, explaining that the building has "reached the end of its useful life" and that transferring it could facilitate redevelopment and permit the administration to move to another building.

The board approved the resolution authorizing entry into the interlocal agreement by roll call. Trustees then considered appointments to a new building corporation — a special-purpose nonprofit vehicle Harris said is needed to facilitate certain bond financings. Trustee Gomez objected to appointing initial members who are not East Chicago residents; Harris said there is no residency requirement in the building-corporation bylaws as drafted and that residency requirements could be added later. The appointment resolution passed with one recorded "no" vote.

No final bond sale or fiscal parameters were approved at the meeting; Shanahan and district staff said more detailed financial information and draft presentations would be provided ahead of the April hearings so trustees and the public can review projected debt service, tax-rate impacts and the list of prioritized capital projects.