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October 2022 The bids for the new RRC PK-12 building are in. When the referendum was approved in November of 2021 by over 57% of district voters it was for $41.25 million total, with the state of Minnesota paying for 59% (approximately $24.5 million) of the overall cost thanks to the Ag to School credit. Due to the rising costs of building related materials and supplies the bids to complete the school came in at $51,261,125. That was quite a shock and far greater than we had estimated. On the revenue side, the district sold the bonds at a premium and were able to begin with $42,191,953. Earned interest income will bring the revenue to closer to $43.5 million. The construction management company asked bidders to suggest any value engineering items that could further reduce the costs and they have made commitments to an additional $1.4 million, without altering the building plans. The district will again apply for a FEMA pre-disaster grant. A 2019 law means that large public buildings now need to include a storm shelter that is hurricane proof. That adds over $3 million to the construction cost. A grant would off set that cost. The grant period runs through January and the district will know if they receive it in the spring of 2023. Some of the larger costs that were far greater than estimates include, concrete, 141.5% over, drywall, 100%, paving, and door hardware also far exceeded estimates. While some cuts will need to be made regarding furniture, auditorium expenses, playground, and other areas. The gap in funding is likely in the $1.8 million dollar range. The district may need to turn to a capital loan if the FEMA grant doesn’t come through. The district has used a capital loan to purchase computers and buses in the past and paid them off early. “I think everyone can see that inflation and rising costs have affected everyone in one way or another and construction is no different.” Superintendent Todd Lee said. Though the bids didn’t come in as low as the district would have liked the project remains on schedule to break ground this spring and be open for students by the fall of 2024. “We can always buy furniture, different flooring, or playground equipment but we only get one chance at the permanent construction so even though, depending on the grant, it may not be everything we wanted it’s still going to be great.” Lee said. August 18, 2022 NOTICE OF BID (click to view) May 2022 Rendering Photos of the New Building January 2022 The Red Rock Central Bond sale was recently completed on January 12th, and a low bid was accepted at 2.2898%. The district used 3% in estimates given before the election. The winning bid was from BOFA Merrill Lynch. Additional bids were Baird, Red Bank, New Jersey with a bid of 2.3044%. Wells Fargo Bank, National Association, Charlotte, North Carolina with a bid of 2.3581%. Morgan Stanley and Co, LLC, New York, New York with a bid of 2.3726%. Citigroup Global Markets Inc. Los Angeles, California with a bid of 2.4148%. Hilltop Securities, Dallas, Texas with a bid of 2.4472%. The end result of the lower bid means that a net amount of $42,193,952.75 is deposited to the construction fund. When the pre-election 3% estimate was used the initial deposit to the construction fund would have been $40,615,231. The district is very pleased with the bid and excited to continue moving forward with the project. “You always hope for the best and after all we’ve been through as a school district it was nice to get some good news.” Red Rock Central has entered the planning stages of the project and has met with various groups of faculty and staff to determine what will be the best way to design the building to meet the needs of our students. The Architecture firm, MLA is leading this process. We will soon have design plans to share on our website. The current plan calls for the district to go out for bids in August or September and begin the soil preparation process this fall and construction to begin in the spring of 2023. More information will be shared on the website and in the newspaper as we move throughout the process. November 3, 2021 Red Rock Central Bond Referendum Passes More than 57% of voters approved the bond referendum. Voters in the Red Rock Central School District voted in support of the bond referendum on November 2nd. The approved question will authorize the district to issue an amount not to exceed $41 million dollars to provide funds for the acquisition and betterment of school sites and facilities, including the construction and equipping of a PreK-12 learning facility to be located in Lamberton, MN. The official vote count was 1368 votes, 786 yes votes, and 582 no votes. The vote will be made official at the school board’s special meeting on November 10th. “Thank you to everyone who voted, our Red Rock Central community sent a message that we are united in support of a new building. I would also like to thank so many of the volunteers and election judges that gave their time and effort to make this election successful," Superintendent Todd Lee said. "We are confident that we share a common goal among all our residents of supporting our children’s needs and the support for the referendum proves that. We will build on that common goal to deliver on our mission of preparing today’s youth for tomorrow's challenges,” Lee added. The district will announce plans on the timeline and opportunities for public comment on the design plan soon. Updates to the community will continue to be provided in the district’s email newsletter, on social media, and on the district’s website at www.redrockcentral.org. |