Council agrees to loan money to MTI for improvement projectThe Mitchell City Council voted Monday evening to creatively loan Mitchell Technical Institute $224,000 to help it complete extensive improvements to its south campus near Interstate 90.
By: Seth Tupper, The Daily Republic
The Mitchell City Council voted Monday evening to creatively loan Mitchell Technical Institute $224,000 to help it complete extensive improvements to its south campus near Interstate 90.
MTI President Greg Von Wald told the council that bids for the improvement project came back about $1.2 million more than the $6 million in bonding that MTI received from the state government.
“We went back to the drawing board, and a lot of things got left out, put out, whatever,” he said. “It’s left us short to finish the project.”
Von Wald said he and city Public Works Director Tim McGannon discussed ways for the city to help and came up with a plan for the city to purchase MTI’s south-campus water-and-sewer system for $224,000, pursuant to a list of seven conditions.
City Attorney Randy Stiles said he is structuring the deal to include a five-year payback. The council’s unanimous approval of the concept Monday allowed the deal to move forward, and Stiles said he will bring additional documents to the council for approval at a later date.
The conditions are as follows:
- The school district, which operates MTI, must authorize the sale;
- The school district must comply with all statutory requirements for the sale;
- The school district will be responsible for payment of all sewer and water charges set by the city;
- The price is $224,000 or the statutory amount allowed, whichever is less;
- The school district will pay a capital improvement fee to the city on an annual basis, which will be computed on $224,000 amortized over five years with an added interest rate of 2 percent per annum on the unpaid balance, with the first payment to be set forth in the agreement executed by the city and school district;
- The documentation effectuating the agreement will be prepared and approved by the school district and the city and all compliance with state statutes will be completed prior to the disbursement of any funds;
- And the city accepts normal maintenance of water and sewer transmission lines lying within the right-of-way, or in easements immediately adjacent to the right-of-way, and MTI accepts maintenance of water and sewer service lines servicing MTI’s property, including sewer lift station(s) and force mains serving MTI’s property.
The improvement project at MTI’s south campus is intended to consolidate all of MTI’s programs at that one location. Work is currently under way on a utility-training building and a technical center addition.