CSD Looking To Use Elementary Schools as Collateral to Secure Loans to Expand Renfroe and DHSDecatur Metro | February 17, 2014 | 9:02 am
Among the items on tomorrow night’s Decatur City Commission meeting, giving up the city’s interest in the city’s elementary schools so CSD can use the schools as collateral to secure loans through the Georgia Municipal Association to expand Decatur High and Renfroe Middle School.
Decaturish has the details and background…
Under the proposed financing agreement, CSD would transfer title for Clairemont, Glennwood and Oakhurst Elementary Schools to the Georgia Municipal Association. GMA would then sign a lease with the city school system. This lease agreement will be the basis for borrowing $17.5 million to pay CSD’s expansion. Once the school system repays the loans, ownership reverts back to the school system. If CSD defaults on its debt, it could lose ownership of the schools.