LITTLEROCK — Antelope Valley Union High School District administrators hope to take advantage of a low interest rate environment to seize a favorable interest rate for a potential $9.1 million loan to remodel the District’s new headquarters in the Lancaster Business Park and expand the Adult Education Program.
The District’s governing Board unanimously approved a resolution Thursday night to hire finance professionals to assist the District. Once the lowest bidder for a loan is determined, a proposed loan agreement will go back before the Board for approval.
The proposed lease financing option is a way to get money today from a portion of future revenues. In this case, the District would use a redevelopment agency, or RDA, revenue from the cities of Lancaster and Palmdale to pay for the loan, if it is approved.
The District will collect an estimated $2.2 million in RDA revenue next year. The revenue is anticipated to increase each year thereafter.
The RDA revenues are expected to provide more than 200% annual coverage for the lease payments, Assistant Superintendent of Business Services Brian Hawkins said during a presentation at Thursday’s Board meeting.
The District needs to remodel about 54,000 square feet of its new headquarters at 176 Holston Drive in the Lancaster Business Park. The building served as a call center for Countrywide Home Loans and Bank of America previously.
The new space will bring all of the district’s departments under one roof to better serve students, parents and the community as well as improve collaboration and communication among District staff.
The District will use only about half the 101,265 square-foot building. The remaining space is under a three-year lease with Los Angeles County. Since the District owns the building outright, the District receives the lease revenue.
The District also is looking at purchasing additional property for the Adult Education program to allow for expansion of services.