From the Fargo Forum

The Fargo School Board has no business acting like a bank. But that’s exactly what it would be doing by extending a $650,000 loan to the Metro Sports Foundation to help it secure financing for its Urban Plains Center in south Fargo.

The board has three options to consider at today’s meeting: One would advance the $650,000 to MSF as prepaid ice time; the second would be the loan; the third would be an extension of a lease agreement from 10 to 25 years.

Either option one or three is acceptable, with qualifications.

Prepaid ice time could be a good deal because the money would be buying ice time the schools would pay for anyway. But the board still needs to build into an ice-time agreement safeguards that would return the money to the district if the project fails.

An extended lease involves little or no risk to the school district should the project collapse.

But a loan is more than a risk. It’s also an improper use of school district dollars. Taxpayers, many of whom already are nervous about public involvement in the UPC, would, or should, revolt.

The board should not be pushed into any financial arrangement that is less than sound. It’s the taxpayers’ money, after all. A risky loan – obviously risky if private lenders won’t do it – would be a mistake. The board should reject the loan option and take more time to examine all its options regarding the UPC.

Forum editorials represent the opinion of Forum management and the newspaper’s Editorial Board.