Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Facilities Disposition topic
No spam. Unsubscribe anytime.
Board continues facilities discussion: sales, donations and a 120-day due-diligence timeline
Summary
Board members asked for a single committee review of building dispositions, fundraising and sale proceeds; staff described a typical 120-day due-diligence period for property sales and said proceeds normally post to an "unforeseen" account unless the board directs otherwise.
Board members used the meeting to press staff for a comprehensive plan for district facilities, including the disposition of surplus properties, donations and potential demolition. The board discussed several properties on the agenda, including the proposed sale of the Grays Creek administrative building for $9,000,000 and the sale or lease of several former school properties to community partners.
Board member McKinney asked staff to provide a list of all properties the district has disposed of or listed for sale in the last fiscal year so the facilities ad hoc committee can review the disposition strategy in a single forum. "I think having it in the committee meeting... everything will be all in one place and at one time," McKinney said. Staff agreed to supply that list to the committee.
On timing and process, facilities staff described a typical buyer due-diligence period of 120 days. "Those contracts are in negotiation right now, so that sometimes that 120 days, the buyer might ask for a little more time or even less time," staff said, noting that some sales have closed faster (one example cited closed in about 30 days).
Board members also discussed how sale proceeds are recorded. Chief operations staff said sale revenue typically posts to an "unforeseen" account but the board can direct that funds be placed in the general fund or used for other projects via a budget amendment. Board members asked when a sale would be completed if approved; staff reiterated the due-diligence timetable and said closing typically occurs at the end of that period unless otherwise negotiated.
The board asked for clarity about donation policy and criteria. On one property discussed previously (referred to internally as "Humes") staff said no final decision on donations had been made and that the board must set criteria before moving forward. Board members seeking to donate specific district-owned buildings to neighborhood schools said they had conversations in place and would present proposals in committee.
Ending: Staff agreed to provide the requested inventory of dispositions, to return to committee with proposed donation criteria, and to present timing and closing estimates for each sale under negotiation.
