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SACRAMENTO-The Eastridge Companies closed this week on an agreement to privately develop and finance a new $58-million high school in northern Sacramento.

Already under construction, the 212,000-sf Inderkum High School in North Sacramento is among the first educational facilities in California to be built using a true private delivery system, sometimes referred to as a lease leaseback agreement, under California Education Code §17406. To complete the facility by August 2004, the Natomas Unified School District authorized funds to break ground on the project in September 2002 while negotiations on the lease leaseback agreement continued.

The lease leaseback agreement will free up $50 million in capital for the district to pursue other critically needed projects by leveraging off a tax-exempt, lease revenue bond issuance structured by TEC. The cost of funds is less than 2%, so the benefits of this low-cost financing are passed on to the district, according to TEC, which closed on the financing May 8.

“We are now able to use some of the local bond money that was raised to finance the high school to complete needed repairs in other schools and start construction projects to deal with our growth,” says NUSD Superintendent of Schools David Tooker. “Within the next two to three years, we will have adequate funds from the bond to pay off the lease, thereby saving money, correcting serious and potentially costly problems in other schools and opening a new high school when we need it most.”

The new high school occupies 50 acres of a 200-acre master-planned town center in Natomas. The Natomas Town Center project is a joint venture between the Los Rios Community College District, the City of Sacramento and NUSD. The Town Center also will feature American River Community College, a joint-use public library and a community aquatics center and regional park.

Turner Construction Co. is the general contractor for Inderkum High School and Nacht & Lewis Architects designed the facility. U.S. Bancorp Piper Jaffray is providing financing and Kutak Rock is handling all legal aspects.

TEC’s Inderkum project team includes: Jeffrey Baize, senior vice president of public private development for the Western region; Al Grazioli, senior vice president; and Ben Rodriguez, senior vice president of design and construction. Eastridge President Susan Eastridge was unavailable for comment.

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