Lehighton Area School District is seeking $52.5 million in funding for three proposed building projects, and financing from a local bank could be part of that equation.

Six area banks responded to the district's request for information related to financing for a proposed K-5 primary elementary center and renovations to Lehighton's middle and high schools.Lehighton's school board voted 6-3 last month to turn down a motion that would have authorized the district administration to begin discussion with Public Financial Management as financial adviser, and Rhoads and Sinon as bond council, on one or more series of bonds netting a maximum of $52.5 million.The rejection was in favor of investigating a combination of regular bonds and a commercial bank loan or bank qualified bond, which is generally smaller but carries a lower interest rate.Responding to Lehighton's request were:• First Keystone Community Bank, which said it could offer a $10 million maximum lending amount for a fixed rate term of up to 10 years with a 6 percent rate cap,• M&T Bank, which said it could offer a $10 million maximum lending amount and said they would consider putting out bank bonds,• Mauch Chunk Trust, which said it could offer a maximum lending amount of $5 million with a 10-year fixed rate term and a 6 percent rate cap,• National Penn Bank, which said it could offer a $25 million maximum lending amount, or $52 million with other banks, with a 10-year fixed rate term and a 6 percent rate cap,• Jim Thorpe National Bank, which said it was interested in providing a quote closer to the time of borrowing, and• Wells Fargo, which could only offer a seven-year maximum term. The district sought information from a total of 20 banks."This is all for information purposes only," Lehighton Superintendent Jonathan Cleaver said Tuesday night at a district finance committee meeting. "When we go out to bid, all of the banks could still bid."The next step, according to Brian Feick, district business manager, is to send out an official request for proposals. The main difference between an RFI and an RFP, Feick said, is having banks commit to a rate."We're going to ask for a 20-year term and we want either bank qualified bonds or a bank loan," Feick said. "We also want at least a five-year call feature so any time after that we could pay the whole thing off if we wanted to. Right now, I think we're going to ask for $10 million. One of things we have to keep in mind is that all of the banks that responded would require that we have a deposit relationship with them. They all want our banking business."Board member Hal Resh said it's a good financial climate in which to be seeking the proposals."These local banks are sitting on a pile of money," Resh said. "People aren't borrowing to buy cars or to build homes as much as they once did."The proposals should be in hand by the district's October meeting."That is when we'll sit down and say here is the best situation for us and give approval to the bank we feel is doing the right thing financially for the district," board member William Hill Jr. said.