School Board OKs purchase of Springdale building for TV program

SPRINGDALE -- The School Board on Tuesday voted to move forward with buying a building owned by one of its members for $770,000.

The building at 3804 Kelley Ave. houses the district's TV production program and will provide office space for district staff, said Kelly Hayes, the district's comptroller.

Springdale School Board

• President: Randy Hutchinson

• Vice President: Jeff Williams

• Secretary-Treasurer: Kevin Ownbey

• Michelle Cook

• Danny Dotson

• Kathy McFetridge

• Mike Luttrell

— Staff Report

Board member Kathy McFetridge, who owns the building with her husband Bill, recused from the discussion and vote and filed a contract disclosure form.

The proposal passed 4-0.

The School Board also approved refunding $123 million in bonds for a lower interest rate. Hayes told the School Board bids were opened March 7 with the lowest interest rate coming in at 3.65 percent from Morgan Stanley. Hayes anticipates savings of about $10 million, with most of it coming to the district over the next three years. The money must be spent on building improvements, Hayes said.

Refinancing the debt will not require a millage increase, nor will it extend the schedule for paying off the balance, a financial adviser told the School Board last month. The debt still will be paid off in 24 years.

The debt was issued in June 2011 following a successful millage campaign the previous month that provided money for the construction of Sonora Middle School and Lakeside Junior High School.

On the purchase of the Ozark Film & Video building, board member Mike Luttrell said he has seen the property and appreciates the work of the district's TV production program. He said the agreement of the McFetridges to sell their building at $100,000 less than appraisal is generous.

The building has been appraised at $870,000, but the McFetridges agreed to the lower price, Hayes said. The purchase requires the approval of Commissioner of Education Johnny Key.

Superintendent Jim Rollins said the district has about 80 employees working in its 1920s era Washington Building at 300 E. Emma Ave.

The former school building has served the district well but isn't in good condition, and the district is looking at purchasing additional space, he said.

The building on Kelley Avenue will help to relieve crowding at the Washington Building and allow for moving staff in preparation for a renovation of the Washington Building, Rollins said.

"This is a great first step to position staff and relocate so they are in an appropriate place," Rollins said.

McFetridge and her husband have owned their commercial video production business since 1983 and moved into the 12,000-square-foot building on Kelley Avenue in 1990. The building has a full television studio.

The McFetridges plan to leave furniture and lighting equipment with the building if the purchase moves forward, Kathy McFetridge said.

With advances in technology, the production business has changed, McFetridge said. Production equipment is smaller. Plans are to move Ozark Film & Video Productions into a leased space, she said.

NW News on 03/15/2017

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