Ivanhoe SD to buy bonds for arbitration payment to Hendricks
IVANHOE – During its regular meeting last week, the Ivanhoe School Board agreed to pay more than $1.4 million for a breach of contract with the Hendricks School District. The board voted 6-0 in favor of using 10-year-term general obligation judgment bonds to cover the damages.
The Ivanhoe School District had the opportunity to appeal to the next level, but Dan Deitte, Ivanhoe School District superintendent, said that its attorney suggested they settle.
“Our attorney didn’t think that we had a good chance of winning,” Deitte said. “We are also paying interest on all that money, so every day we appeal and don’t win, there’s more interest that we have to pay.”
The roughly $1.41 million must be paid within 90 days and includes the award amount, accrued interest and the Hendricks School District’s attorney’s fees for the appeal. The 10-year-term general obligation judgment bond will be paid back at the rate of $170,000 per year. The judgment bonds will be in addition to the $8.5 million in bonds that remain from the $10.5 million Ivanhoe School renovation project from less than 10 years ago.
“Nobody is happy to have to pay this,” Deitte said. “But everybody at this point understands that this is the judgement that was made, and it needs to get taken care of to move forward and to educate the students as best we can.”
– Anna Haecherl-Smith