Banner Graphic, Volume 12, Number 78, Greencastle, Putnam County, 8 December 1981 — Page 1

Site adjacent to high school

South Putnam to merge all three elementaries

By LARRY GIBBS Banner-Graphic Publisher The South Putnam School Board fired a blockbuster Monday night, voting unanimously to consolidate all three of the corporation’s elementary schools into a single new facility adjacent to South Putnam High School. TOTAL COST OF THE proposed school is estimated at $6,532,000, some S7O per square foot. A standing-room-only crowd of more than 50 patrons watched in apparent surprise as the board voted 5-0 to pursue a revised plan that would merge Belle Union, Fillmore and Reelsville schools. The proposal is subject to approval by state authorities. Monday night’s action does not commit the school corporation to any specific building design or method of financing. The vote merely activates a plan that would build the new school on a 25-acre tract the corporation already owns next to the high school. SUPT. JAMES HAMMOND said the corporation’s next step will be to seek formal approval of the proposal by the Division of Accreditation and School Facility Planning of the State Superintendent of Public Instruction’s office. Once state authorization is achieved, the corporation could proceed with specific architectural drawings and discussions of how best to finance construction. Approved on a motion by Sherman Hacker, the total consolidation consensus emerged after Hammond read a series of figures provided by William Wilkerson, a member of the Indiana University faculty and a recognized expert on public school finance in Indiana. Wilkerson based his cost estimates on an 80,000-square-foot, four-section elementary building. That amount of space is deemed necessary by the corporation’s

Budget cuts- South Putnam approves reductions; teachers urge referendum

By LARRY GIBBS Banner-Graphic Publisher A series of budget cuts designed to save the South Putnam School Corp. $28,100 next year was approved 5-0 by the school board Monday night as the first major step toward a $62,951 budget reduction ordered by the Indiana School Property Tax Control Board. AT THE SAME TIME, the South Putnam Classroom Teachers Assciation (SPCTA) publicly urged the board to a pursue a voter referendum to possibly raise the corporation’s tax levy. “We want to do this in an orderly fashion so that we won’t disturb our basic academic program, but the state has said we must cut our budget by $62,000,” Supt.

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winter's here Cloudy, windy and much colder with a 20 per cent chance of showers or snow flurries. Temperatures steady or slowly falling from the upper 30s. Cloudy, cold and breezy at times overnight with a 20 per cent chance of snow flurries. Low in the upper 20s. Partial clearing by Wednesday afternoon. Continued cold. High in the low to mid 30s. Indiana Extended Forecast A dry period Thursday through Saturday with seasonable temperatures. Highs in the 30s to low 40s Thursday warming to mostly in the 40s by Saturday. Abby A 3 Bridge A 8 Calendar A 3 Classifieds A 9 Comics A 4 Crossword A 8 Editorials A 5 Heloise A 3 Horoscope A 9 Obituaries AlO People A 8 Sports A6,A7 Supermarket Shopper A 8 TV A 4 Theaters AlO Worry Clinic A 9

Banner Graphic Putnam County, Tuesday, December 8,1981, Vol. 12 No. 78 20 Cents

educational consultant, Dr. William Day of IU, and architect Charlie Parrot of James Associates to serve the anticipated total consolidated enrollment. Hammond said Monday night the total elementary enrollment in kindergarten through sixth grade was 712 when an official count was taken earlier in the school year, but it slightly higher now. USING THAT BUILDING size, Wilkerson said total construction cost would be $5.6 million, a figure which encompasses actual site development, actual construction and fixed equipment. Miscellaneous costs would add another $932,000 to the project, according to Wilkerson’s projections. Among those miscellaneous expenses are $330,000 for architects’ fees, $335,000 for construction management fees, $220,000 for miscellaneous contingencies and attorney fees, $20,000 for survey and borings, $15,000 for building risk insurance and $12,000 for financial administration. Wilkerson also projected the cost of financing a $6,532,000 elementary school, basing various bond issues on a projected South Putnam assessed valuation of $25 million by 1983. AT 10 PER CENT INTEREST, the total bond issue would be $7,540,000. Leased for 15 years, the annual lease-rental payment would be $995,000, creating a debt service tax rate of $3.98. On a 20-year basis, the annual lease-rental would be $890,000 and the debt service rate $3.56, while a 25-year arrangement would yield an annual leaserental payment of $835,000 and a debt service rate of $3.34. Wilkerson noted in his verbal report to Hammond that currently there are no buyers for bonds sold on a 25-year basis. At an interest rate of 11.5 per cent, Wilkerson said, the bond issue would total $7,715,000. A 15-year lease would yield an annual lease-rental payment of $1,108,000

James Hammond explained. “This is Phase I in the budget reduction. We have indicated there will be a Phase 11, maybe a Phase 111. We have discussed these Phase I cuts with the teacher’s association.” As outlined by Hammond, the Phase I reductions include: - ELIMINATION OF ALL summer programs that the corporation has financed, including driver education, summer recreation and summer band. Only a selfsupporting swimming program will be allowed, although the corporation will maintain the pool. -- Elimination of the following extracurricular positions: Corporationfinanced elementary basketball programs, age-group swimming, assistant

EDC approves Black Lumber inducement resolution

By ERIC BERNSEE Banner-Graphic Managing Editor Black Lumber Co. vaulted its first hurdle in the quest of a $400,000 industrial revenue bond Monday when the Greencastle Economic Development Commission unanimously recommended approval of an inducement resolution. THE INDUCEMENT resolution will be considered by the Greencastle City Council at its 7:30 meeting Tuesday night as the lumber company continues its efforts to secure authority to issue tax-exempt bonds to finance a new retail lumber store at the present 501 N. Indiana St. location. The request, however, will not be formally approved until the EDC and City Council act on final plans at an additional public session for each governmental body. In making his presentation to the fivemember Greencastle EDC, Tom Black of the Bloomington-based network of lumber

OL's county contract will be continued on year-to-year basis

By BECKY IGO Banner-Graphic Area News Editor Operation Life’s ambulance service contract with Putnam County will be continued on a year-to-year basis following action taken by the Board of Commissioners at a Monday meeting at the courthouse. Earlier, OL’s Board of Directors requested the county consider a pact greater than one year to aid the private service in obtaining more financial stability. IN ADDITION, MEMBERS had been discussing the possible future construction

and create a debt service rate of $4.43. Based on 20 years, the lease-rental payment would be $1,500,000 annually and the debt service rate would be $4.02. IF AN INTEREST RATE of 13 per cent is applied, the bond issue would be $7,900,000. On a 15-year basis the annual lease-rental payment would be $1,230,000, setting the debt service rate at $4.92. A 20year plan would yield an annual leaserental of $1,130,000 and a debt service rate of $4.52. Wilkerson explained that the projected debt service rates in each instance would be reduced by 20 per cent under the state’s present property tax replacement law if the law is continued during the building period. As a hypothetical example of how the building project would affect the corporation’s current tax rate, Wilkerson used $3.62 as the average the three debt service rate options possible at a 10 per cent interest rate. That $3.62, added to the corporation’s total tax rate of $4.39 payable in 1982, would create a new rate of SB.OI per each SIOO of assessed valuation. THE SCHOOL BOARD apparently is optimistic the state will authorize planning of the consolidated elementary school despite a State Tax Board memo issued in October which discouraged new construction while interest rates remain high. At that time, Hammond said state school officials warned that extensive remodeling of existing buildings or construction of new schools would not be allowed under present economic conditions. However, another factor in the board’s action Monday night - and one the state cannot igmore - was an extensive list of repairs and improvements ordered at Belle Union, Fillmore and Reelsville following inspections by the State Board of Col. 1, back page, this section

boys’ and assistant girls’ swimming coaches, junior high cross country, junior high swimming, assistant baseball coach, sponsorship of the Fellowship of Christian Athletes, corporation sponsorship of the concession stand, sponsorship of the school newspaper, cheerleader sponsor and drill team sponsor. Hammond said he is hopeful elementary basketball can continue by using patrons as coaches on a voluntary basis. He also said the concession stand and school newspaper could continue, but without sponsorship. - Elimination of a portion of extended contracts for the vocational agriculture director, athletic director, guidance director and vocational education director. Those contracts, which had extended from

Black Lumber bond on City Council agenda

Besides considering a Greencastle Economic Development Commission recommendation to approve an inducement resolution for the issuance of a $400,000 industrial revenue bond for Black Lumber Co., the Greencastle City Council will consider other business at its 7:30 p.m. meeting Tuesday. ALSO ON THE AGENDA for the

yards said the remodeled facility would provide an estimated six to eight new jobs, with an estimated addition payroll of $50,000 to $60,000. In addition, Black noted, the new facility would remove a potential fire hazard, upgrade the neighborhood and provide

of a new building to house the Greencastle base. With the assurance of county assistance beyond one year, the OL Board believed it would be in a better position to negotiate for possible bank loans for construction. Although the commissioners previously indicated there was some inclination to extend the length of the pact, Monday’s session left no doubt such notions had changed. Commissioner Jim Malayer made the motion to retain OL’s ambulance contract with the county on a yearly basis. His

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BILL MINNICK: Won't be tried here

two to 12 weeks beyond the normal academic year, will have the extended terms cut. - CONSOLIDATION OF the third grade at Fillmore. Hammond said one thirdgrade teacher will go on maternity leave during the second semester, at which time all 27 third-graders will be combined into one class. The teacher on leave will have a position when she returns the following year. - Reduction of the remedial reading position to half-time. Hammond said that move would save one-half of the teaching salary, approximately $7,500. Although approved unanimously by the five board members, the cutbacks drew mixed reviews from some in the audience.

City Hall session are: * Discussion with Greencastle Housing Authority President John Stouder concerning a new federal assistance program for low-cost housing. The plan involves susidizing existing apartments or homes, Mayor Jane Harlan said. * Introduction of an ordinance for the licensing of video machines and

safer surroundings with off-street parking and a security fence. All recent remodeling at Black Lumber Co. locations has included installation of sprinkling systems, Black added. THE LOCAL FACILITY WILL be expanded with the purchase of the house im-

motion was seconded by Commissioner Don Walton. Commissioner Elbert Irwin, also the county’s representative on OL’s Board, abstained. ALTHOUGH RELUCTANT to specify, one commissioner later told the BannerGraphic his decision was based on the belief that future ambulance service for the county may be located at the new Putnam County Hospital. “There has been speculation, at some future point in time, that EMS (Emergency Medical Service) could be worked out with the local hospital,” the commissioner said.

Minnick's trial will be venued By BECKY IGO Banner-Graphic Area News Editor Putnam County Circuit Court Judge William C. Vaughn Monday afternoon granted a change of venue for William Arthur Minnick, charged with the October slaying and robbery of Martha Payne at her 9 S. Locust St., Greencastle, residence. Vaughn’s decision came following an all-day omnibus hearing held at the old Circuit Courtroom. BOTH ATTORNEYS HAVE the opportunity to select any county statewide. If an agreement cannot be reached within three days, the prosecution and defense must choose from six locations listed by Vaughn. Those counties include Marion, Monroe, Tippecanoe, Clay, Hendricks and Morgan. In this matter, Vaughn said the defense would strike a county first from the list with the prosecution following suit, until one county remains. Judge Vaughn also sustained pauper attorney Stephen Pierson’s request to withdraw from the case. Minnick will now be represented by Terre Haute attorney Woodrow S. Nasser who was hired by the 18-year-old suspect’s family. Nasser, who entered his appearance in the case Dec. 1, declined to comment whether he will use the defense of insanity for his client. Pierson had filed a plea of not guilty by reason of insanity for Minnick on Nov. 30. NASSER SAID THE INSANITY defense was probably filed by Pierson as a precautionary measure, since there is a deadline for doing so. “I haven’t completed my own personal investigation,” the Terre Haute attorney related. “I wouldn’t want to say anything right now which could possibly jeopardize my client.” Meanwhile, Judge Vaughn has appointed two psychiatrists, as required by state statute, to examine Minnick. The psychiatrists are Larry Davis and William Fisher, both of Indianapolis. Nasser said he would make a decision whether to continue the insanity defense following the production and inspection of evidence obtained by the prosecution. THE OMNIBUS HEARING began at 9:45 a.m. Monday after 12 jurors were called to serve in an “advisory capacity” to determine if the teen-age suspect could receive a “fair and impartial” trial in Putnam County. Col. 1, back page, this section

WILLIAM GARDNER, president of the SPCTA, asked if extended contracts for administrators (besides the athletic director, who is considered an administrator) are being considered for cuts. Hammond responded by saying the corporation is “looking at all avenues of budget reductions.” Patron Sue Birdsell, a former board member, criticized the cutback in the remedial reading position, saying the $7,500 savings does not appear to be much money for “such an important program.” Patron Charles Main asked what South Putnam pays for its participation in the vocational education cooperative. Told by Hammond that the cost is approximately $35,000 per year to pay the cost of 36 South

“gaming devices” by the city at SIOO annually per machine. The ordinance is expected to be ready to take effect Jan. 1. * DEPARTMENT reports, including a summary of this year’s leaf collection program savings by Street Commissioner Jim Wright. The meeting, of course, is open to the public.

mediately south of the lumber yard and a 48-foot strip of vacant land across the rear of the present property, Black told the commission. Plans call for construction of an 80x120foot retail sales facility, valued at an estimated $285,000, he explained. A

The county official added he felt it was best “not to get the county obligated into a building program” with OL at this time. The commissioners did agree Monday to eliminate the yearly audit requirement from the contract. That deletion will save the county and OL $2,000 which had been budgeted in 1982 for that purpose. OL DIRECTOR Gary Boswell, who was present at Monday’s session, told the Ban-ner-Graphic Tuesday the service still hopes to strive for a longer contract with the county. “At this point, we hope to ask for a

Putnam students, Main urged that the board consider withdrawing from the program. MAIN SAID A VOCATIONAL education program is designed to teach a trade, while the purpose of public schools is to provide a basic academic program. He said there are a number of vocational schools, such as Ivy Tech in Terre Haute and Indianapolis, that could provide specific training after high school. Gardner echoed that view, saying the SPCTA supports complete withdrawal from the vocational education program. In response to one patron’s question about possible additional cutbacks in athletic programs, Hammond said reducCol. 1, back page, this section

warehouse and lumber storage area would cost an additional $48,000 with $32,000 for necessary fixtures. The remaining $35,000 would be accounted for in engineering, architect and legal fees and miscellaneous expenses. Only one existing building, a concrete block structure, will survive the renovation, Black said. He hopes to have plans finalized by February, with a grand opening anticipated by spring 1983. BLACK AND LAUREL Corbin of the Greencastle Black Lumber Co. explained that the local facility has been in operation since 1946 and has peacefully co-existed with Skelton-Skinner Lumber Co. “I feel the community has supported two lumber companies...at one time there were three. I feel the community can continue to support two such facilities.” Col. 5, back page, this section

longer contract for next year,” the director commented. “We are starting to show now that we are stable and plan to be here for awhile and remain in operation. We would appreciate the ability (financially) to plan for that.” In his discussions with the commissioners, Boswell said he anticipates the 1982 contract to change little from this year's pact. "THE CONTRACT WILL basically be as it stands with the $90,000 contracted with the county. The situation with the audit Col. 1, back page, this section