A proposed $15 million, and rising, construction project at Palmerton Area School District is drawing intense scrutiny over escalating costs and long-term financial implications.

Director Earl Paules led opposition Tuesday night to a $7 million administration building that he said would serve only 13 employees.

Though Palmerton took no action on the construction projects during the meeting, Jay Clough of KCBA Architects told the district two weeks ago that project costs rose by over $600,000 due to unexpected geological and infrastructure challenges. Site testing revealed poor soil quality, identified as “fill” that lacks the stability to support new structures.

“Apparently that ground over there is not suitable really to build on at all,” Paules said. “We’re going to have to spend more money just on foundation to be able to put a building on top, and not a very big building, by the way, a very small building.”

The administration building, he said, would house six administrators and their support staff, totaling 13 employees.

“I’d rather spend that on our students because it makes more sense,” he said.

Beyond the initial construction costs, Paules outlined a cascade of additional expenses the district would face.

In addition to the 11,000-square-foot proposed administration building, Palmerton is planning a two-story addition to the high school that creates a secured entrance and adds classroom space.

“Adding more square footage and expansion, how many more additional custodians and cleaning staff would be required for each building?” Paules asked. “One to 1.5 custodian positions we would need to add to service those two buildings, and that could be anywhere from $60,000 to $80,000 per employee. By adding more classrooms, we’re obviously going to hire more teachers, and one teacher with benefits and everything else is about $100,000 each. I would assume you would be adding at least three teachers if we’re going to add classrooms.”

Paules also raised concerns about the district’s existing debt burden and how the new project would compound financial pressures.

“We pay $500,000 a year on interest alone,” he added. “That loan is not satisfied until 2036. That tells me we got another 11 years. Over the total 20-year loan, we’re going to spend $10 million just on interest. And now we’re going to add another $15 million to that, more burden to the taxpayers.”

According to information Paules said he received from Business Manager Ryan Kish, a new bond would add $328,000 to the next budget and $400,000 the following year for debt service. Raising taxes by one mill, he added, generates only $306,000 in revenue.

Kish confirmed that salaries and benefits increase by around $1 million, or 4.9%, each year without any new initiatives or construction projects.

Continue to lease?

For years, the district’s administrative offices were housed on the third floor of Parkside Education Center, which also serves as an elementary school. District officials said that arrangement created challenges, particularly because adult visitors and daily foot traffic were mixed with student areas.

The board approved a temporary lease for space at 3295 Forest Inn Road, in a plaza alongside businesses like Good Shepherd Physical Therapy and Iron Valley Real Estate, for two years beginning May 1, 2025, at about $3,800 per month. The move created room at Parkside to reconfigure the third floor for new classrooms, STEM space, and small-group instructional areas.

As an alternative to constructing the administration building, Paules proposed continuing to lease office space instead.

“We did the numbers on renting,” he said. “We pay $45,000 a year, which, if you do the math on $7 million building, it would take us 155 years to get to $7 million if we just rent. When you rent, the owners are responsible for the building, not the taxpayers.”

He argued the money saved could be better spent on educational priorities.

According to information presented at previous meetings, the first floor of the high school addition will house a counselor suite for guidance services, a nurse’s suite equipped with two cots and an exam room to serve both junior high and high school students, and flexible instructional spaces, while the second floor will provide five new teaching areas.

“It just makes more sense to do a part of the project and not the whole project,” Paules said. “My goals when I came on this board were simple: safety by moving the front entrance and creating more classrooms. That addition benefits 150 students, not just 13 employees.”

Paules pressed for the board to receive detailed financial information before making a final decision, noting that bids for the project would go out in February or March.

Asked about potential grants to offset construction costs, Kish said Tuesday that a planning grant might be available but indicated it was unlikely to provide substantial funding.

Changing his tune

In 2023, the district hired RLPS Architects to conduct a feasibility study, the first in about 25 years, to evaluate how Palmerton’s school facilities were being used, address space shortages, and improve security and instructional spaces. As part of that study, one major option examined was re-aligning where elementary students attend based on grade levels rather than their neighborhood schools.

By early 2025, the district backed off that idea following public meetings on the proposal.

Director Alyson Krawchuk-Boschen challenged Paules Tuesday on his current position, noting he initially supported the realignment.

“It was your idea to move elementary students to begin with,” she said. “We had a town hall, and everyone said no, right? You listened, so we went back to the drawing board. All of a sudden tonight you want to put your big boy pants on and say ‘hey look at me I’m such a great guy.’ ”

Paules acknowledged that his position on the move and the current building projects evolved as more detailed cost information became available.

“When you start a design process, you look to see what it’s going to cost,” he said. “Now we know what it’s going to cost. We didn’t know exactly what it was going to cost, and we still never knew where the money was going to come from.”

Several community members voiced concerns Tuesday about the project’s cost and impact on taxpayers during public participation.

“You have to come up with $7 million, plus you have to heat it, maintain it, get a generator, service it, staff it, and add furniture,” resident Terry Kuehner said of the proposed administration building. “We’re looking up to $10 million.”

Kuehner warned the project could face legal challenges.

“This is going to be sent to the state attorney general’s office and the Department of Education,” he said. “We need intervention here. The taxpayers are going to file suit if you build this building. I was already told that, and they will get a legal firm out of Philadelphia.”