Bid assignments accepted (03/22/06)

The Building Corporation of Jay Schools met briefly Tuesday evening to accept the assignment of construction bids and contracts from Jay School Corporation and received information on the sale of mortgage bonds related to the construction and renovation at Jay County High School.

The building corporation also voted to reimburse Jay Schools for expenses incurred to date in the building project and the purchase of real estate from the school corporation.

Present at the meeting were president Neil Medler and Ronald Laux. Building corporation member Leo Glogas was absent from the meeting but received the resolutions prior to the meeting.

Jay schools attorney Phil Frantz explained that Indiana law prohibits governmental bodies such as school systems from exceeding a certain debt limit. Therefore, it is common practice for construction projects to create a non-profit entity to in effect buy the property undergoing construction, incur the debt and lease the property back to the school corporation. The school corporation retains control of the building project and all school functions during this process.[[In-content Ad]]