LRSD Proposes Capital Improvements Using Second-Lien Loans

Proposed Capital Improvements Using Second-Lien Loans

June 23, 2017 - The Little Rock School District plans to move forward on the construction of a new high school located in southwest Little Rock, off Mabelvale Pike Road and Richsmith Lane. The District will utilize second lien bond financing that will generate $90 million in construction funds. The District plans to use $55-60 million of these funds to assist in the construction of the new high school. The remaining funds will be designated for capital improvements, including roofs, HVAC upgrades, and security enhancements. Click here to see the list of projects.  The following should be noted about this capital improvement plan:

  •         This will not add to anyone’s tax rate
  •         This does not extend the debt
  •         A second lien loan is much like a mortgage on your house

These projects will not only allow the District to begin fulfilling the promise to build a new high school but will also address some of the high-priority capital needs identified in the 2014 Fanney-Howey study. Favorable conditions surrounding interest rates provide the District a window to begin the work now.

LRSD will receive its final payment of $37 million in desegregation funds, restricted to use for facilities, in the 2017-18 school year. The proposed financial plan allows the District to further demonstrate to the state's Division of Public School Academic Facilities and Transportation its commitment and responsibility to ensure that students are provided an "adequate and equitable educational opportunity."

The new high school in southwest Little Rock is slated to open in the fall of 2020 and designed to serve 2,250 students. Polk Stanley Wilcox Architects, Nabholz Construction, and district staff, along with students and parents from the J.A. Fair and McClellan communities have assisted with designing the project.

"The new high school will be a state-of-the-art facility for the students of J.A. Fair and McClellan," said Superintendent Mike Poore. "Although this does not address all the needs identified in previous studies that total over $300 million, it moves us forward in addressing several key issues that impact the learning environments of our campuses," he added.

The Little Rock School District is constantly seeking to improve and impact the students it serves while also attracting new students. "We live in a competitive world and we remain committed to providing academic programming and facilities that support a quality education for all students," said Poore.