Okaloosa County to serve as 'conduit' issuer of millions in bonds for Destin High expansion

SHALIMAR — As it did in late 2020, the Okaloosa County Commission has agreed to serve as the “conduit” issuer of millions of dollars in tax-exempt bonds to benefit Destin High School.

The commission on Tuesday unanimously approved the issuance of up to $14 million for to finance the acquisition, construction, improvement, installation and equipping of an expansion of the existing school campus on behalf of the nonprofit Destin High School Inc.

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The public charter school opened last August at the former Grace Lutheran Church property at 4325 Commons Drive W., where it began serving 310 students in grades 9-11.

The original acquisition and development of the 5-acre site and approximately 28,100 square feet of facilities were financed through the conduit issuance and loan of the county’s almost $9.4 million in Educational Facilities Revenue Bonds, according to county information.

“Destin High School currently has 475 students enrolled for the 2022-23 school year in addition to a waiting list,” Deputy County Administrator of Operations Craig Coffey said in a memo to the commission.

He said officials from the school plan to use the newly borrowed funds to pay for the development of a new, approximately 25,500-square-foot multi-story building to contain additional classrooms, offices and related facilities, fixtures, furnishings and equipment. Upon completion of the project, the school is expected to serve up to 800 students in grades 9-12, Coffey said.

Commission Chairman Mel Ponder, who represents District 5 that includes Destin, said the county serving as the conduit issuer of the bonds does not affect its credit rating or borrowing ability.

“We have no liability in the bonds,” Ponder said.

The primary purpose of conduit financing is to qualify for a federal tax exemption on the interest earned by the investor on the underlying loan, according to county information.

“We need the new building (that will be built during the expansion) badly,” Destin High School Principal Christine Cruickshank told the commission while noting the spike in the school’s student population.

This article originally appeared on Northwest Florida Daily News: Destin High School, Okaloosa County partnering on expansion