Decorah School Board Approves Construction Agreement for New Elementary School

Join the community of savvy subscribers (for free)! Get the latest updates, tips, and insider information by subscribing to the free newsletter today. DECORAH —The Decorah Community School Board on Monday approved a detailed construction agreement with Miron Construction for the district's planned new elementary school while warning residents that rising material costs and borrowing choices will shape the project's final price. The board voted unanimously to approve an American Institute of Architects agreement that the district negotiated with Miron, its construction manager at risk, after months of work on contract language that allocates liability and cost if tariffs or other price shocks increase construction expenses. Superintendent Tim Cronin told the board the parties "kind of met him in the middle, where we'll pay the first 2% of overages and split the rest," and added that Miron "calculated that risk at $330,000," money that "gets put back into the budget as a contingency." He cautioned that the district will ultimately absorb some portion of any increased costs. "Basically you're paying for it one way or the other," Cronin said. Board member Ron Fadness, who took part in the contract discussions, said the lengthy negotiations made approval necessary to keep the schedule on track. "There's been so much negotiation that we do not want to throw the baby out with the bath water, so to speak," he told the board before the motion carried unanimously. Timeline and bidding Cronin said the construction timeline remains aimed at spring work next year and that the district expects to reach the formal bidding stage by winter. "The bids will come in, hopefully we get the bid process … Dec. 11," he said. If the schedule holds, contractors would place orders soon after bids are awarded. The agreement includes provisions intended to limit the district's exposure to sudden material-cost increases, a concern several board members raised as construction markets remain volatile. Cronin said the $330,000 figure Miron identified as its calculated portion of tariff risk will be added to the project's contingency line in the budget. Debt, reserves and a special meeting The action to approve Miron's agreement came as the board reviewed the district's outstanding obligations and borrowing capacity. According to board materials discussed at the meeting, Decorah currently carries about $2.48 million in outstanding debt related to an Apple lease for student devices and SAVE bonds for prior high school improvements. The district holds roughly $3.7 million combined in its Physical Plant and Equipment Levy and SAVE funds. Cronin said the district's financial advisers prepared multiple borrowing scenarios for the board to consider and warned against assuming the maximum borrowing capacity is prudent. "You can do a 10-year and you could borrow $10,447,000, but … because this is max capacity your payment on that would be over $1.5 million," he told the board while reviewing options prepared by counsel and outside advisers. To narrow budget choices and potential scope changes, the board scheduled a special meeting for Wednesday, Sept. 10, at 5 p.m. to review the project's value-engineering log and "possibly make decisions regarding the new elementary facility's budget and borrowing options." Stay ahead of the curve! Subscribe to free newsletters for exclusive insights, local trends and analysis delivered straight to your inbox.