Phoenix Elementary will ask voters to allow long-term leases, sales or exchanges of district property

The Phoenix Elementary School District No. 1 governing board on Tuesday received a presentation on a November voter proposition that would give the district permission to enter into long-term leases (21–99 years), to sell district property with proceeds restricted to bond debt repayment and building reinvestment, or to exchange real property.

The proposition, presented by Sarah Sims, the district’s executive director of strategic initiatives, would allow the district to use lease revenue on items Sims listed as eligible, including construction or improvement of buildings and classrooms, purchase of buses or vehicles, safety infrastructure upgrades, program costs and staffing. "Lease funding allows for flexible spending," Sims said, and she noted sale proceeds would be more restricted.

Why it matters: supporters say long-term leases can unlock private financing for development and create ongoing revenue that can be reinvested into classrooms and services. Community members and board members pressed district staff for details about tenant responsibilities, transparency of lease terms and protections for enrollment and neighborhood outcomes.

What the presentation said: Sims walked the board through a chart of current leases, lessees, square footage and the percent of building leased; she said price-per-square-foot figures shown were approximate. She identified Booker T. Washington, the Fillmore property and Monterey Park as already voter-approved for long-term leases; Heard School is limited to 20-year leases under current approvals. Sims said utilities for some leases are paid by the lessee while Monterey Park’s utilities are paid by the district; Monterey Park’s reported $15.54-per-square-foot figure included in-kind services such as discounted childcare for employees and half-day preschool access.

Sims said total long-term lease revenue currently brings in about $1.1 million a year, and the district plans to allocate or reserve funds for preschool supplementation, expanded sports and after-school programming, district field trip transportation, training and reimbursement for family-and-community-engagement staff, teacher mentoring, seed funding for new programs (including the dual language immersion program at Lowell) and general reserves. "We understand those do not add up to $1.1 million, but we are trying to build a reserve," she said.

Questions from the board and public: Board members asked whether lease terms clearly spell out rents, utility and maintenance responsibilities; Sims said lease agreements specify base rent and billed custodial, grounds and utility costs proportionate to the square footage used, and all leases are reviewed by the district’s legal counsel. A board member asked whether a voter approval for long-term leases is a pathway to closing schools; Sims replied that closure requires a separate legal process with public notice and input and that the proposition only authorizes sale, lease or exchange of property, not school closure.

Several public commenters raised concerns tied to property and enrollment decisions. Parent Allison Gullick told the board the district is "at a breaking point" after a reported more-than-10% drop in enrollment on a recent count, saying closures and reduced preschool access have harmed trust in the district. Paul Booth urged greater transparency on past leases and asked the district to publish actual rents, utility responsibilities and maintenance terms for proposed deals. April Pettit, president of PECTA, urged community support for an override ballot measure and said the additional funding would help preserve teacher pay, arts and music programs, student supports and class size.

How the district says it will vet lessees: Sims described a review committee that includes community members, procurement and staff; applicants are asked how they will benefit the community, how students can access their programs and how the proposed use aligns with the district mission. Sims said the committee has declined proposals that would amount to a gift of public funds or provide no benefit to students.

What’s next: the proposition will appear on the November ballot. The presentation did not include any final lease or sale decisions; board members asked staff to provide property-by-property details and noted they will review competitive bidding, transparency measures and community impacts before approving specific agreements.