WATERLOO -- The Board of Education unanimously approved a $13.96 million contract Monday with Cardinal Construction for a school replacing McKinstry Elementary.

The Waterloo company was the lowest of three bidders on the project. The highest bid came in at $15.25 million. InVision Architecture, which designed the school, had estimated a $13.7 million construction cost.

"I guess overall the costs are a little higher than we expected," Brad Leeper of InVision told the board. He said when the breakdown in costs is available, the firm would further evaluate the bid. "I think maybe there are some savings to be made in the project."

Project costs beyond the construction contract will include design services, furniture and equipment, as well as construction contingency. Furniture and equipment bid packages will be issued in the summer or fall of 2008 at cost of up to $250,000. Contingency will equal 3 or 4 percent of the construction budget.

McKinstry, located at 1410 Independence Ave., is being replaced with a 78,900-square-foot one-story school on a different part of the property. The main entrance will face west along Idaho Street.

District officials say no decision has been made on the fate of the current building. Either this building or the existing Logan Middle School, which is also being replaced, may be used as a consolidated location for Area Education Agency 267's Devonshire and Castle Hill schools.

The new school, which has not yet been named, is the latest project in Waterloo Community Schools' ongoing effort to upgrade facilities. It is being paid for with proceeds from a voter-approved 1 percent local option sales tax that has been in place across Black Hawk County since 1999.

The local tax is being replaced with a similar statewide 1 percent sales tax approved this year by the Legislature and signed into law by Gov. Culver. That ensures the tax will be in place for the next 20 years.

Contact Andrew Wind at (319) 291-1507 or andrew.wind@wcfcourier.com.