DULUTH — During their regular meeting Tuesday, members of the Duluth School Board voted to approve a resolution to provide $9 million in funding toward the ongoing renovations of the district’s new education center, housed in the former News Tribune building.
The property, located at the corner of Fifth Avenue West and First Street, was
from the News Tribune’s parent company, Forum Communications Co., for $600,000 in 2023. Earlier this year, the district announced a
to renovate the building into an education center, relocating several district services, programs and schools to the new space.
The board voted during its October meeting to allow the district to begin the borrowing process, with the amount not to exceed $9,795,000. The district had previously received approval from the state for the overall financing plan and the new education center project.
“This time, this resolution is to approve the purchase of the bonds for the $9,080,000,” said board member Amber Sadowski, “and these bonds are layered in with other bond debt, a lot of which is going to fall off in a couple years.”
To cover a portion of project costs, the board authorized the amendment of an existing installment purchase contract, allowing the district to secure funds through the sale of participation certificates to Robert W. Baird & Co. Incorporated, a Wisconsin investment firm.
Under the installment purchase contract, the district will repay the $9 million in funding over the next decade, along with a 5% interest that accrues annually, through an additional property tax levy approved by the state. The contract has existed since 2008, and throughout the years the district has made amendments to fund facility improvements, property purchases, and reduce debt service costs.
Contributed / Duluth Public Schools
“The work that we’ve done on our credit score and our finances in the district over the last four to six years is directly, positively impacting our bonds and the percentages that we’re getting,” said Sadowski, who chairs the district HR & Business Services Committee.
This most recent amendment will add $1,060,904 to the additional tax levy for 2026, with repayments scheduled to be complete by 2037.
The total project budget stands at nearly $17 million, with construction work two months underway. While the resolution passed on Tuesday will cover a portion of the renovation expenses, the remaining building cost will be paid for using long-term facilities maintenance, or LTFM, bonding funds from previous years out of an assigned fund balance.
“With LTFM, there are very specific things we can use it for,” said district communications officer Adelle Wellens. “With this, it is a preexisting building, not a new construction; we’re not building from scratch. … But when you’re renovating a building, that’s what you use LTFM on.”
Once completed, the building’s first two floors will have dedicated classrooms for the middle and high school students enrolled at the Area Learning Center and Academic Excellence Online, as well as Head Start and other early childhood education programs. Adult Education will also be relocated to the new education center, along with a screening center and other district programs and services.
Contributed / Duluth Public Schools
After a series of building assessments, construction began in late September. Demolition and improvements in the building are ongoing, said the district’s facilities manager, Bryan Brown, during the district’s Human Resources and Business Services committee meeting on Nov. 10.
“We’ve been working very close with the city in all aspects,” said Brown, noting that he’d met with building inspectors and contractors recently. “We did a complete walkthrough of the building. … They’re very pleased with the progress of our construction.”
So far, work has been finished on the building’s exterior utilities, with a new sanitary sewer added in the alley and water service complete. Inside, renovations still have months to go, with wall framing and drywall going up in some spaces and demolition continuing on the second floor and basement. The education center is expected to be completed next summer, with the hopes of being operational for the coming school year.
Emma McNamee joined the Duluth News Tribune in February 2025 as a reporter covering K-12 schools and higher education in the Duluth area.