Western Dakota Technical Institute has agreed to pay Rapid City Area Schools the appraised value of about 39 acres of land connected to the institute.

The board of education is expected Thursday night to approve a plan for WDTI to pay $775,000 over 10 years with a zero percent interest rate.

The board has the ability to forgive or defer any of the payments, district budget and finance director Dave Janak said.

"It's about as flexible as you can get," Janak said.

The land is adjacent to the north side of the building and industry training center. The board governs the institute, but the institute operates through a separate budget, and its facilities are owned by the state.

WDTI president Craig Bailey met with board members of the facilities committee in December and argued that he was not in a fair position to negotiate because the school board manages the institution's funds. He said that the board should sell the land at a reduced rate.

But Janak and other board members said proceeds from the sale would go into the district's capital outlay fund, which is used to manage the district's facilities. The district has taken on an unprecedented number of capital outlay projects for the upcoming year, including an expansion at WDTI, Central High School, Dakota Middle School and a middle school at Valley View.

Janak said the sale is fair for local taxpayers because the district is not giving any land away for free.