A $57.8 million redesign of the Winooski School District’s campus will be entirely funded through a federal loan and will save taxpayers millions, according to district officials.
The loan comes from the U.S. Department of Agriculture through the Rural Development program which provides affordable funding to develop “essential community facilities in rural areas,” according to the agency.
The loan comes with a 2.25% interest rate, according to Anthony Linardos, Vermont and New Hampshire State Director for USDA Rural Development.
Winooski district officials tout that taxpayers will save an estimated $11 million over time because of the low-interest loan, according to an Aug. 5 press release.
The $57.8 million loan is the largest single facilities loan the agency’s rural development branch has invested in Vermont, Linardos said.
“We had a recent $50 million loan to the Rutland Hospital, which at the time was the largest loan we had done, but now this investment is $57.8. million, which makes it the largest in our state, he said. “And just to put that in perspective, Rural Development invests about $200 million annually in Vermont, through different programs.”
Emily Hecker, a spokesperson for the school district said this program is unique because most Vermont schools would go through the Vermont Bond Bank to secure a loan for capital projects like the one in Winooski.
But the USDA loan, which is a 30-year loan, provides a much lower interest rate than that of any Vermont bond, she said.
The new campus has been in the works for the last two years, but construction only started about a month ago, Hecker said.
Outside the Winooski School District buildings this week, construction vehicles and workers could be seen through the chain link fence starting the groundwork for the project.
Key points of the construction project include a performing arts center, a new cafeteria as well as a new gym. Additionally, according to current renderings, the new campus buildings will get a modern facelift.
According to the district’s webpage devoted to the project, much of the school district’s buildings are structurally sound.
However, inside systems like electrical, air, heat, plumbing and other mechanical features need an upgrade, according to a 2018 facility evaluation report.
To qualify for the USDA rural development loan, the applicant has to be either a non-profit or a municipality with a population under 20,000, Linardos said.
“It’s a very important project and it’s a priority for the Trump administration and Secretary Perdue, who’s the head of the USDA, to invest in rural infrastructure,” he said.
Winooski voters approved the $57.8 million project in 2019 and construction is set to be complete by 2022.
Superintendent Sean McMannon said in the release this investment has been part of a long process to better serve the Winooski community.
“This team of dedicated leaders spearheaded a collaborative approach to complete a complicated process and brought an incredible finance package that brings significant long-term savings over the life of the loan to Winooski taxpayers and secures a safe, healthy and modern learning environment for Winooski students,” he said.
The team, which includes McMannon, District Finance Manager Nicole Mace and project manager Tom Barden, worked together over the last few months with the USDA to qualify for the program.
