Plans for old Warren High School building to be discussed at Sept. 16 public hearing

By Robert King -- Daily Staff Writer

FRONT ROYAL — The Warren County Board of Supervisors will hold a public hearing late this month on financing options for renovations to the old Warren County High School.

The board agreed to advertise for a public hearing for Sept. 16. The board will choose between two options for the renovations — bank financing or a bond from the Virginia Public School Authority.

The renovations are part of the second phase of a 20-year school facilities plan. The first phase was completed last fall with the opening of Skyline High School and relocation of Warren County High School from its Luray Avenue site to an expanded junior high school. The first part of the second phase calls for the old Warren County High School to be renovated and converted into a middle school.

The board has narrowed its financing options to two.

One option is a VPSA bond, which is harder to refinance but doesn't require costly bond insurance, according to an analysis from Davenport and Co. LLC, a firm advising the county.

The bond's interest rate cannot be determined at this time, according to a letter from the Virginia Department of Treasury to the county.

Preliminary indications show the rate will be under 5 percent for the bond and bank financing, a county staff report reads.

"At that rate, the annual debt service is estimated between $1,350,000 and $1,360,000 after an initial first year payment of $1.5 million," the report reads.

A bank financing option would be easier to refinance, the analysis reads. Davenport already solicited a non-binding bid from BB&T bank with a fixed interest rate of 4.73 for the loan.

The county will seek a $30,150,000 bond or loan.

South River Supervisor Linda Glavis asked why the amount was so high. She noted totals in Davenport's analysis were lower.

The total estimated cost of the project is $31,650,526.

The county plans to get a tax credit of $2.6 million due to the historical significance of the building, and has $1,899,541 in funding reserved for the project.

The county also plans to get a $7.5 million literary loan from the Virginia Department of Education, leaving $19.7 million to be come from either a bond or bank loan, the analysis reads.

County Administrator Douglas P. Stanley said he doesn't know why Davenport wanted to advertise for that amount. He speculated it could be due to the fixed terms of the loan or bond.

"Once we advertise, we can't go up. We can go down," he told Glavis.

Stanley said a Davenport official would be present during the public hearing to answer that question.

Stanley said the board needed to hold a public hearing this month because of the statutory time requirements for the financing.

Supervisors unanimously agreed to hold the hearing.

"We just can't let that school sit there," said Board of Supervisors Chairman Archie Fox.

The public hearing will take place at 7:30 p.m. on Sept. 16 at the Warren County Government Center off North Commerce Avenue in Front Royal.

* Contact Robert King at rking@nvdaily.com