MISHAWAKA -- Mishawaka is one step closer to building a new Hums Elementary School.

The plan is to construct a new building on the same property as the current school. Once the new facility is built, they plan to tear down the old structure. To do that, they need bonds issued.

Wednesday night, the School City of Mishawaka Board of School Trustees approved a plan to borrow no more than $45 million for the project.

"It's possible and likely it'll be somewhat less than that," said Randy Rompola with Barnes & Thornburg LLP. "To go through this approval process we want to have a high enough number, so we don't have to come back and repeat it."

Rompola is the board's legal counsel. He said the bond is tax-exempt, has a 5 percent interest rate, and can be paid back over a 20-year period.

The board also voted Wednesday to move forward with an amendment to the 2018 agreement, which Rompola said would allow them to continue leasing the existing Hums Elementary School until the new one is completed and then transfer the lease to that building while also extending the timeframe of the contract. He said by doing this, the district can avoid some upfront expenses.

"Typically, there's an appraisal process that you have to go through if you're leasing a building that hasn't been leased before," said Rompola. "Because this is already subject to a lease, we can avoid that. There are some title insurance expenses we won't incur, as well. So, it's actually a good thing to simply continue this lease."

A public hearing on the amendment is set for March 5 at Liberty Elementary School. Rompola said after that hearing, the board can approve the lease, which would put them on track to start construction in the fall.