USD 305 approves moving forward on sale of East Magnolia Street property, honors seller's right of first refusal

The USD 305 Board of Education voted 6-0 to authorize district administration to proceed with the sale of district-owned property on East Magnolia Street while honoring a right of first refusal held by the original owner.

During a discussion of options for the 23.47 acres of buildable land and 3.15 acres in a creek area, a district presenter reviewed the purchase contract terms. The presenter said the property's layout and a median on Magnolia Street make it difficult to access for bus traffic, and that declining enrollment reduced the district's need for additional building sites.

Under the contract described to the board, the original owner would have 15 days to notify the district of an intent to repurchase if the district decides to sell. If the owner responds, the appraisal process is triggered: within 10 days the buyer selects one appraiser, the two appraisers then select a third neutral appraiser, and the average of the three appraisals sets the fair-market price. Once that price is established, the parties would have roughly 40 days (20 days to prepare a contract and 20 days to closing), the presenter said. Appraisal costs would be paid by the buyer and reimbursed from escrow.

The presenter told the board she had preliminary conversations with the previous owner and believed the owner is interested in repurchasing. The contract also includes a three-year clause: if the district advertises the property and does not sell it within three years, and the district reduces the asking price by more than 10%, the original owner's right of first refusal would be reactivated.

Board members discussed options and then voted to give administration authority to move forward under the contract terms; the motion passed 6-0.

Why it matters: The sale would allow the district to divest underused land while preserving the contractually reserved purchase option for the prior owner. The board did not specify an asking price or buyer and did not direct immediate sale to a third party; actions will follow the contract timelines if the previous owner declines to exercise the right.

Next steps: District staff will proceed with contract steps described and, if the previous owner declines, advertise the property for sale consistent with the contract timelines and appraisal process.