Madison County board narrows terms for donated property, agrees to staged sale protections

The Madison County School Board used a Dec. 16 workshop to press for stronger protections in a draft contract for district property under negotiation, narrowing several key terms while directing staff and legal counsel to prepare revised language for a January hearing.

Board members and counsel discussed paragraph 8 of the draft, which restricts educational uses on the property. Counsel recommended clarifying that the buyer may not operate a competing K–12 school but may provide tutoring, apprenticeship and workforce-development programming that does not compete with district schools. "Those are allowed," counsel said, and offered to draft clarifying language.

The board debated how to prevent a short‑term resale of district property. Counsel said a 30‑year conveyance restriction is typical to avoid permanent restraints; the buyer asked to shorten that to 21 years, arguing program investment could justify an earlier end to restrictions. Several board members pushed back and discussed alternatives, including a 21‑year prohibition coupled with a graduated reimbursement schedule if the buyer sells earlier. One board member suggested a sliding scale of percentages tied to year marks, with higher reimbursement in early years and no penalty after 21 years. Counsel agreed to draft a step‑down schedule for board review.

Lease length also drew attention. The buyer requested longer leases to secure grant funding; counsel recommended capping leases so they do not function like a conveyance (e.g., 99‑year leases). The board endorsed consistency with a three‑year maximum lease term already agreed for a related Greenville matter.

On enforcement, counsel described a reverter (title reverts on breach) with a cure period so minor or accidental violations do not immediately forfeit title. Staff and members debated the cure window: counsel explained a 60‑day cure is common, while the buyer asked for a longer period for natural disasters. Board members asked that disaster exceptions be handled explicitly — for example, allowing a longer cure after hurricanes — but not to excuse breaches tied to operating a competing school.

Insurance and maintenance language were flagged for revision. The draft required insurance at a percentage of property value; board members recommended replacing a fixed percentage with a requirement that the buyer maintain replacement‑value insurance through a recognized carrier. The board also asked for measurable maintenance obligations to avoid long‑term deterioration while avoiding micromanagement of day‑to‑day lawn height or similar details.

District staff said title work and a title‑insurance policy remain outstanding but expected to be completed before the January meeting. No formal vote was held at the workshop; counsel will prepare revised contract language and a proposed staged reimbursement schedule for board consideration in January.

What’s next: staff and counsel will redline the contract to reflect the board’s direction on permitted educational uses, a three‑year lease cap, a cure period that includes a longer disaster exception, maintenance standards tied to preserving value, and an amortized sale‑reimbursement schedule; the board plans to advertise the revised contract and vote after a public hearing in January.