Board discusses $2.835M SCAP grant and multi-option plan to revive Charles Street Gym

Superintendent Doctor Walters told the Franklin City School Board on March 19 that the division has access to $2,835,000 through the School Construction Assistance Program (SCAP) and outlined three ways to use that funding to address long‑standing problems at the Charles Street Gym. Walters and Cheryl Midkiff of ESG presented a turnkey option, a modified turnkey and a shell-only approach, each with different cost and financing implications.

The most expensive option, the turnkey plan, carries a project cost Walters said is $9,430,000; SCAP would cover 30% of that amount, leaving roughly $6.59 million to finance. The modified turnkey estimate was presented as $8,700,000 (about $6.0M to finance after the SCAP share). The lowest-cost, shell-only approach was estimated at about $7,000,000 with an expected financing need of roughly $4.9 million after the grant. Walters said the district is considering tax-exempt leasing to spread payments over 15 years and intends to use a not-to-exceed contract cap to limit exposure.

Why it matters: the SCAP award must show activity before July 1 or the state can reclaim funds, staff said. The board must weigh the benefit of returning the gym to safe, year-round use against the long-term debt service that would be absorbed in the operating budget.

Board members questioned both need and scale. One member argued that, "That is a very, very high ticket just for 3 or 4 classrooms," expressing concern about paying a new long-term note for limited instructional space. Another asked what warranty protections exist for roof and mechanical work; ESG’s Midkiff replied that new roof work would carry the contractor’s standard warranty (for example, a multi‑decade roof warranty for newly installed roofing) and that contingency line items are included to address known structural concerns such as brick cracks and water penetration.

Walters said staff could pursue a shell-level scope to preserve the SCAP award while delaying additional classroom build‑out until more capital is available. "It just has to be in motion," he said of the grant requirement, noting that SCAP administrators are satisfied as long as the division demonstrates activity before the deadline.

What happens next: Walters asked for permission to formalize a contract with ESG and to pursue the shell option pending further board direction and competitive bidding. Board members requested more detailed bid comparisons, explicit warranty language, and monthly‑payment estimates before committing to finance the project. Staff said more concrete financing figures would follow after formalizing terms with ESG and a financial institution.