Riverside Unified Board OKs up to $24.53 million purchase of Iowa Avenue buildings for new district office amid partner and transparency concerns

The Riverside Unified School District board on Sept. 25 authorized staff to proceed with purchase of two buildings on Iowa Avenue for a new district office, approving a not-to-exceed combined purchase price of $24,529,850. The vote came after extended public comment and a staff presentation that described possible partner arrangements and property-exchange options that could reduce the district’s net cash outlay.

Board President Lee announced he would recuse from the discussion and vote, saying, “I own partial interest in an escrow company that’s done business with Mr. Jacobs in the past 12 months. So for that reason, I’m gonna recuse myself on this vote, in any discussion,” and left the room before the board debated the item.

Staff described the two Iowa Avenue buildings as a roughly 102,000-square-foot campus offered at a combined purchase price of $24,529,850, with appraisals reported “approximately $820,000 higher” than that price, producing what staff characterized as immediate equity if the district completes the transaction. Assistant Superintendent Williams said the buildings are larger than current needs but would serve long-term district use and provide residual rental income; he estimated ongoing revenue “of several $100,000 annually” from space the district would not occupy.

Why it matters: staff said the purchase would give the district a consolidated site for administrative functions and optional space to accommodate future growth. Williams outlined a structured negotiation strategy: the district could buy the buildings outright, or pursue a land-exchange and partnership package that would (if finalized) offset part of the cash payment and could fund a needed roadway to King High School.

What the board approved and next steps: the board authorized purchase of the properties at or below the stated not-to-exceed price and granted staff delegated authority to proceed with transaction work. Williams told the board the partnership terms remain negotiable and “those final terms, if we reach terms… staff will bring those back with a recommendation to the board for your consideration.” He said the escrow period and negotiations will continue and that, if the district and a partner cannot reach agreeable terms, the district could still purchase the district office and then market surplus properties.

Public concerns and audit flags: members of the public raised procedural and transparency objections. Public commenter Sandy Yarr said she found a limited partner entity, King Riverside Residential, had a California Secretary of State formation date of Sept. 3, after documents in the board packet appeared to be dated earlier; she told the board she was “surprised” and asked for details about the partner’s role. Duffy Atkinson, another commenter, urged clarity about any limited partnership arrangement and warned that land-exchange deals can create perceived conflicts or non-arm’s-length transactions.

Board discussion and financial context: trustees praised the buildings as functionally appropriate and cited long-standing district needs for a consolidated district office. Trustees and staff quantified potential savings: Williams said the combined exchanges could avoid about $500,000 in real-estate commissions and that, in a best-case scenario with exchanges and property dispositions, the district’s net outlay could be reduced by roughly $8 million. Williams also estimated a potential capital outlay reduction to as low as $15 million in an optimistic scenario but cautioned the board to “plan for the worst and hope for the best.”

Distinguishing discussion from decision: the board’s formal action was to authorize the purchase and delegate limited authority to staff; the board did not finalize or approve a long-term partner agreement at the Sept. 25 meeting. Williams said any partnership agreement would be brought back to the board for approval and that the board would be asked to consider final terms on or before Oct. 16.

Outcome and vote: the motion to authorize the purchase passed with the trustees present voting in favor; President Lee recused himself and did not participate in the vote. Staff said they would return with any finalized partnership documents and recommended sale/exchange terms for board consideration.

Clarifying details and context: staff said the two buildings total about 102,000 square feet and the combined purchase price is $24,529,850; staff reported independent appraisals that were about $820,000 higher than the purchase price. Staff described a 60-day escrow, the potential for a land exchange involving property adjacent to King High School to fund a roadway to Van Buren Boulevard, and estimated ongoing rent-like revenue from unused space at roughly several hundred thousand dollars per year. Williams indicated the district could also liquidate other facilities (central registration center, leased Arlington site) to offset costs; those dispositions would be presented separately if the board directs.

Speakers quoted or paraphrased in this story may only be identified from the meeting transcript and include Assistant Superintendent Williams (presentation), Board President Lee (recusal statement), Trustee Vickers, Trustee Kinnear, Trustee Tweed, Trustee Hernandez Alexander, and public commenters Sandy Yarr and Duffy Atkinson. The board will consider any formal partnership documents and associated sale/exchange terms at a future meeting.