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Phoenix Elementary board hears details on ballot measure to allow long-term leases, sales and exchanges of district property
Summary
District staff outlined what voter approval would allow — long-term leases (21–99 years), sales with restricted proceeds and rare property exchanges — and detailed current lessees, projected annual lease revenue of about $1.1 million and planned uses for those funds. Board members pressed staff on transparency, protections against school closures,
Phoenix Elementary School District No. 1 officials on Monday reviewed a voter proposition that would permit the district to sell, lease or exchange real property and heard how current leases are being used to generate revenue for district programs.
Executive Director of Strategic Initiatives Sarah Sims told the governing board that, if voters approve the measure, the district could enter long-term leases of 21 to 99 years, sell property with proceeds restricted to bond debt repayment or reinvestment in buildings, and — in uncommon cases — exchange parcels of land. "Lease funding allows for flexible spending. It's much more flexible than sale," Sims said.
Why it matters: Sims said the district currently receives about $1,100,000 per year from leases that range from short-term arrangements (cell towers, event rentals) to multi-decade agreements. The district identifies uses for that revenue including preschool subsidy, expanded sports and after-school enrichment, contracted transportation for field experiences, teacher mentoring, startup costs for new programs (for example dual language immersion) and annual development/reserve building.
Sims described several existing, voter-authorized long-term leases: Booker T. Washington, Fillmore and Monterey Park are already allowed for 21–99 year leases; Heard School is restricted to leases up to 20 years. She said some lessees pay utilities and custodial costs directly, while in other cases the district covers those expenses or receives in-kind services. "Monterey Park ... the $15.54 per square foot is an in kind. Those are services that are provided to families and the district," Sims said, describing discounted childcare and half‑day preschool access as examples of in‑kind value.
Board members asked for details and safeguards. Trustee questions focused on how lease terms are written, who pays utilities and maintenance, and whether the ballot measure is a pathway to future school closures. Sims said leases are "very clearly spelled out" in legal documents that specify which party pays utilities, custodial and grounds costs; she said the Heard lessee, BeyondAutism, pays base rent plus utilities and custodial on the square footage it occupies. On closure concerns, Sims emphasized that the proposition would only permit long‑term leases, sales or exchanges of property and would not by itself change the separate, legally required school‑closure process that involves public notice and community hearings.
Sims described the district's review process for prospective lessees: inquiries are collected and evaluated by a committee that includes community members, plant procurement and district staff. Applicants must explain how they will benefit the community, how students can access services, and how the proposal aligns with the district mission. "The review committee is asking those exact questions. How are you gonna give back to the community? What's your history in the community?" Sims said.
Public comment during the meeting flagged related concerns. Parent Allison Gulick said recent school closures and program reductions have driven families out of the district and cited an enrollment drop of "over 10%" between counts; commenter Paul Booth urged greater transparency on lease terms and urged competitive bidding and community input before approving long‑term deals. April Pettit, president of PECTA, urged support for the district's override and described the override as necessary to protect salaries, arts, counseling and other services.
Board action and next steps: There was no formal board vote on changes to the ballot language during this meeting; Sims' presentation was delivered at the board's request to provide details ahead of the election. The district will continue reviewing inquiries for available properties and has posted the list of parcels and lessees in the presentation materials for board review.
Ending: Board members said they want continued transparency and additional detail on prospective offers, including explicit descriptions of utilities, maintenance responsibilities, and what lessees will provide in educational or family services. Sims said the district receives frequent inquiries and that proposals are being vetted against community benefit criteria.
