South Bend School Board members received an update from investigators on an ongoing probe into the school district’s past operations, including how the corporation funded its $5.8 million move to the Edythe J. Brown Building.
Investigators Tim Corbett and Joe Speybroeck told the board they are examining several areas of concern, including transparency around the selection of contractors and how much authority the board had in key spending decisions.
The board approved a contract with Schmidt Associates in May 2023 to serve as the architecture firm for the project. That contract stated the total cost would not exceed $5 million but also listed an estimated range between $2.3 and $3.5 million.
During the 2023 meeting, Trustee Jeanette McCullough questioned whether the full renovation, including partial demolition, could be completed with the $2.8 million the district received from selling its former administration building. Project manager Kevin Shelley offered a clear response at the time.
“That portion of the building is being taken down as part of the process,” Shelley said.
“Is that cost being incorporated into the $2 million?” McCullough asked.
“Yes, ma’am,” Shelley responded.
However, at a follow-up meeting in July 2023, McCullough raised the same concern but did not receive the same assurance. Frustrated, she voiced her skepticism.
“There’s no way in the world $2.8 million is going to fix up that entire building,” McCullough said. “There’s no way in the world. So I already anticipate that’s going to be an issue.”
Four current trustees were on the board in 2023, but only McCullough and Mark Costello, who both voted against the project, supported launching the current investigation.
Costello pointed to what he called a serious lack of board oversight, referencing the board’s discovery last year that some contractors had been hired without board knowledge or approval.
“We, as a board, should know who’s bidding, and what was their bid,” Costello said Monday night.
Investigators also reported more than $500,000 was spent just to paint the building. Costello said the board shares the blame for failing to prevent excessive spending.
“That is a shame and a tragedy, that we as a board, and I’m included in that, is guilty of,” he said.
The investigation remains ongoing.
