Board pauses demolition after Eveleth asks to keep gym; consultant flags $600,000 sealing cost

The Rock Ridge Public Schools board heard Wednesday that the city of Eveleth is considering asking the district to spare the gym, music and locker-room portion of a building slated for demolition and convey that portion to the city instead of including it in a property sale.

Superintendent Noelle and construction consultants briefed the board on options and costs. A consultant cited a rough estimate of about $600,000 to secure and temporarily enclose the portion of the building if the district were to pause demolition while the city develops a plan, and the presenters said the district has an existing purchase arrangement for the property that would have to be revised if the city wants to keep some spaces.

The consultants laid out three financial factors for the board: (1) the estimated cost to board up and preserve the portion of the building (the consultant estimate cited ~ $600,000), (2) the district’s savings from not demolishing that footprint (presenters said the demolition line item for that area was bid at about $250,000), and (3) the unknown cost the city would incur to make the space operational as a civic facility. The presenters stressed that the district would need a clear revised purchase agreement specifying who pays the added costs.

“ You cannot use school funds to help another city…You may save a couple 100,000, but you can’t turn around and give that to the city,” Superintendent Noelle told the board, warning that using bond proceeds to underwrite a municipal renovation would likely prompt legal challenges.

Board members and contractors described technical complications from pausing demolition: utilities and steam lines near the building footprint, columns in retaining walls that would require sawing and structural patching, and the need to maintain compliance with state abatement rules during any hold. Presenters said the contractor bid schedule had been structured in pieces in anticipation of late changes, and that leaving sections in place would require temporary structural work and additional handling costs.

No formal decision was made. The board was told the city is preparing a revised agreement; the board expects the city to deliver a proposal before the next board meeting so members can decide whether to grant an extension or move forward with demolition. Chair noted the district will not disturb the area while the board awaits a formal offer and that a final decision is expected at the June 24 board meeting.

Clarifying details: consultant estimate to temporarily seal the space cited “about $600,000” (presenters said the figure was derived from a consultant report). The district cited roughly $250,000 as the contractor line-item credit for not demolishing that gym area (a bid figure). Presenters said the city’s renovation costs were not specified in the board packet and would be part of any revised purchase agreement.

The board was also told that the sale terms and the district’s existing agreement allow a party to withdraw with one year’s written notice; presenters said any revised deal should allocate additional closure/abatement costs to the purchaser.

The board will revisit the proposed change at its next regular meeting and said it would not slow active demolition crews without a formal revised purchase agreement.