Summary

Maryville City Council approved a loan agreement with the state for $18.75 million to help fund construction of a new intermediate school.

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Maryville City Council approves bond resolution to fund construction of Coulter Grove Intermediate School

By Matthew Stewart
of The Daily Times Staff
Originally published: October 31. 2009 3:01AM
Last modified: October 30. 2009 11:55PM

Maryville City Council Friday authorized the execution of a loan agreement between Maryville and the Tennessee State School Bond Authority that will at least partially fund Coulter Grove Intermediate School.

Coulter Grove Intermediate School was "mothballed" after city officials postponed in November 2008 a $25 million bond issuance due to the global financial crisis. School officials received bids last December that estimated Coulter Grove's total cost at $28.6 million. Officials have already spent $3.7 million for site work.

Maryville was approved for a $20.4 million low-interest loan available through the federal American Recovery and Reinvestment Act on Sept. 10. The Tennessee State School Bond Authority has agreed to sell more than $180 million worth of Qualified School Construction Bonds (QSCB).

A municipality's state-shared revenues are being used as the loan's security in the program. The state Comptroller of the Treasury recently notified Maryville officials their loan amount has been reduced to $18.75 million due the city's declining state-shared revenues.

Maryville's fell 8 percent from fiscal 2008-09 to fiscal 2009-10.

School officials are looking at $1 million in cuts to the school project, said Richard Harbison, the system's director of facilities.

Officials hope to rebid subcontracted work in mid-December.