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Superintendent recommends selling 501 West University as-is; trustees weigh demolition costs, zoning and community input
Summary
Superintendent Russo recommended the Rochester district move to sell the vacant 501 West University property as-is after presenting condition, holding costs, appraisal and demolition/abatement estimates; trustees raised zoning, historic value and the need for community input before any vote.
Superintendent Tim Russo recommended the board consider selling 501 West University "as is," after presenting historical information, appraisal values and a range of costs tied to reuse or demolition.
Russo said the multi-story former administration building contains about 88,504 gross square feet on a 4.3-acre site, was vacated in February 2022, and would require extensive rehabilitation for reuse. A 2019 renovation estimate put minimal renovation costs at $19 million; Russo said construction costs have risen about 30' 45 percent since that estimate. The district currently spends roughly $85,000 a year on utilities for the property, plus about $15,000 for insurance and approximately $2,200 for grounds maintenance.
The district's recent appraisal valued the property as-is at about $2.1 million and estimated hypothetical vacant-land value at roughly $3.4 million. Demolition-cost estimates provided ranged from about $1.4 million to $2.1 million (an average of $1.8 million); asbestos abatement estimates were presented in the $400,000 to $700,000 range but Russo cautioned those figures are uncertain and the abatement needs could be higher or lower.
Trustees asked whether the parcel is zoned residential (staff said the city confirmed it is), whether the board could include language in an RFP to prefer community uses, and what would happen if no acceptable bids are received. Russo advised against being overly prescriptive in an RFP, noting past RFP practice and that the board need not accept the lowest or highest bidder but could set the criteria it wants. Several trustees urged soliciting community input before finalizing any decision about sale, demolition, or long-term retention of the property.
Russo framed selling the property as a way to realize one-time funds for the general fund or fund balance, while retaining it and demolishing the building would reduce ongoing maintenance costs but would carry demolition and asbestos risk; he recommended next steps include public engagement and, if the board agrees, drafting an RFP and evaluation criteria for later consideration.
