Azusa Unified OKs amendments allowing developers to demolish school buildings before escrow closes

The Azusa Unified School District Board of Education on March 11 approved two second amendments to purchase-and-sale agreements that, if exercised by the buyers, would allow developers to demolish former school buildings before the district’s escrow closes.

Superintendent Ortega told the board that the amendment for Taylor Morrison of California LLC would specifically allow the buyer to demolish the existing school buildings at its own cost and liability prior to close of escrow. Ortega said the amendment will be presented for the board’s consideration that evening and confirmed the developer would assume the risk if escrow fails to close after demolition.

The board also approved a second amendment to the purchase-and-sale agreement with Malia Holmes Inc. (the transcript lists the buyer name as presented). Ortega reported that escrow has opened for the former Mountain View School site with Taylor Morrison and that the due-diligence period for Ellington School ended on March 1; RC Homes approved feasibility and subsequently made a second, nonrefundable deposit on the Ellington property. Ortega said that because RC Homes passed feasibility and has made additional deposits, those deposits become nonrefundable going forward.

Board members asked several clarifying questions about the demolition-before-escrow provision, liability, and whether other developers would request the same terms. To one board question about the risk if escrow did not close after demolition, Ortega said that the demolition and any costs would be the developer’s responsibility and that the district could benefit from a cleared site for subsequent buyers. He also confirmed staff expects other developers to request similar amendments for Mountain View and that the board could explore the idea with other bidders.

The board voted to approve both second amendments (agenda items 12.2 and 12.3). No individual roll-call tallies for those motions are recorded in the transcript; the minutes state "Motion passes." The board also discussed next steps for a facilities study session to prioritize projects once additional sale proceeds become more certain.

Why it matters: The amendments change the district’s risk profile by letting private buyers remove buildings before completing escrow. That can speed site readiness for redevelopment but leaves demolition costs and liability with the buyer if a sale fails to close. The board signaled interest in a future study session to align incoming surplus-property proceeds with district facilities priorities.

Votes at a glance - Approval of second amendment to purchase-and-sale agreement with Malia Holmes Inc. (agenda item 12.2): Motion made and seconded; vote recorded as "Motion passes." (transcript: motion/second recorded; no roll-call breakdown provided.) - Approval of second amendment to purchase-and-sale agreement with Taylor Morrison of California LLC (agenda item 12.3): Motion made and seconded; vote recorded as "Motion passes." (transcript: motion/second recorded; no roll-call breakdown provided.)

Background and context: Ortega said Ellington is the first surplus property to clear the feasibility hurdle; RC Homes made a second nonrefundable deposit on March 5. The Taylor Morrison amendment would permit demolition at Taylor Morrison’s cost and liability before close of escrow; the district’s staff explained that risk would rest with the buyer if the sale later failed to close. Ortega indicated Mountain View escrow is open and its due-diligence period currently expires June 2; staff expect similar amendment requests from other buyers.

What’s next: Ortega said staff will work with the board president to schedule a facilities study session to review prioritization once sale proceeds are clearer, and that additional properties moving through due diligence should increase available funds later in the year.