A multi-million dollar debt officially carried by Hattiesburg for the last eight years on the Sacred Heart Catholic High School property will be placed in escrow and taken off the city’s books in 2020.
Mayor Toby Barker recently signed official closing papers for the defeasement of $2.56 million in general obligation bonds on the property at the Corner of West Pine Street and 2nd Avenue, at the site of the former First Baptist Church. With the signing of the closing papers and a lump sum payment from school officials, the debt will be completely paid off over the next two years.
“So what (Sacred Heart) did was, they went ahead and wrote us a lump sum check that will cover next year’s regular payment, and then in 2020 we have a payoff date – that’s the next year we can pay the whole thing off,” Barker said. “So it’s in escrow now, and it will pay off in 2020, and that’ll be debt off the city books then.”
In 2010, Hattiesburg City Council members voted to take out the $2.56 million in bonds to transform the church building into a new high school for Sacred Heart. School officials have paid the city about $210,000 per year since then – totaling approximately $750,000 in principal – leaving a balance of $1.8 million as of July 1.
“So essentially, the city financed it for Sacred Heart,” Barker said. Sacred Heart made the payments, but the debt was on our books.
“Even though it didn’t cost us anything, it was still on our books, so to have that cleared is a nice thing.”
From 1966 – when Sacred Heart’s high school was closed because of low enrollment – until 2004, the school only offered classes through the 8th grade. The high school was allowed to reopen in 2004 after adding 9th and 10th grades, and later added 11th grade in 2005 and 12th grade in 2006.
Since acquiring the former church building in 2010, the school has added 40 classrooms and student population has expanded from approximately 500 students to 700 in kindergarten through 12th grade.
“Sacred Heart’s a great partner, particularly in the downtown area and in the historic neighborhood,” Barker said. “It has certainly attracted families down here that want to send their children to Sacred Heart, so it’s had a positive impact on that neighborhood and all of downtown.
“However, any time you can take debt off your books – particularly if we look to break ground on the new (Public Safety Complex) and Fire Station No. 9 (on U.S. 49) – it’s a good thing to clear as much debt as you can.”
