District signals it will not renew Rand School lease under current terms, cites major capital needs

Arlington Heights School District 25 staff informed the board March 10 that the district does not recommend renewing the current Rand School lease with Futaba School on the same financial terms when the contract expires in 2028.

Facilities Director Ryan said the building — leased to Futaba since about 1999 — is showing aging‑building issues and that the current rental income under the existing lease will not cover the capital investment required to maintain or substantially renovate the facility. Ryan presented three buckets of needs: deferred maintenance (patching and minor catch‑up work), capital replacements (roofing, HVAC and plumbing), and full long‑term renovation. He said the district currently projects about $3 million in capital expenditures in the next five years and roughly $30 million if the district were to pursue a full renovation over a longer horizon.

Ryan told trustees the staff recommendation is to notify Futaba that the district does not intend to renew the current lease and to open discussions about new lease terms or other options for the facility. He said the existing lease expires in March 2028 and that the district would continue essential maintenance tied to the current lease but does not advise entering another long‑term 10‑year lease under current terms.

Board members asked clarifying questions after touring the facility; Dr. Kay clarified that the $3 million currently in the five‑year capital plan may not be spent if the building’s long‑term use changes. The board gave staff direction to notify the tenant and to return with options and cost analyses for future board consideration.

No immediate financial commitment was approved; staff will bring options back to the board with timelines and financial implications.