Oregon Public Schools Oregon Public Schools Di Disposition Best Practices Guide iti B t P ti G id
Mission Mission
Programs Programs
On ‐ Site Technical Assistance On Site Technical Assistance
Long Range Planning Long Range Planning
Questions • How do we go about determining which properties may be surplus? hi h ti b l ? • Are there any regulations regarding Are there any regulations regarding how we can sell property? • Is there a market for old schools? • What can obsolete schools be used • What can obsolete schools be used as?
Questions Questions • How do you handle the sale of surplus land if How do you handle the sale of surplus land if it still has bonded debt on it? • Timing an asset sale Issues in selling versus • Timing an asset sale. Issues in selling versus holding an excess asset? • Timeline of the sale of a school in various Ti li f h l f h l i i locations (commercial vs. residential zones)? • Do you have recommendations for firms that evaluate district real estate assets for – sale? ‐ costs & timing of such studies?
Phase 1 Gathering Facts • The decision to dispose of a school is never Th d i i t di f h l i easy • Use an independent group to gather all the facts • Utilize Third Party Service Providers • Community Involvement Community Involvement • Consider all Options
Phase 2 Deciding Which Schools to Close • Demographics and Psychographics D hi d P h hi • Capital Expense Requirements • Ongoing Operating Costs • Environmental and Transportation Issues Environmental and Transportation Issues • Aesthetics • Impact on community I t it
Phase 3 Making the Decision • Communication, communication, communication – Clear and direct message why • Community Involvement – Make the residents part of the plan • Consider the use of Community Benefit Consider the use of Community Benefit Agreements
Phase 4 Making the Transition • Create a clear written transition plan to all • Create a clear written transition plan to all stakeholders – Staff, teachers, students, family members, Staff teachers students family members local officials, fire and life safety officials • Communicate communicate • Communicate, communicate, communicate – Direct mail, email, hand ‐ outs, website, radio Di t il il h d t b it di announcements • Document your actions D t ti
Phase 5 Disposition of School Property • Use knowledgeable proven professionals • Use knowledgeable, proven professionals • RFP or RFQ – Qualify who you want to work with to market your property • Clear objectives for stakeholders and service providers • Define offering, offer review, and selection criteria
Phase 5 Disposition of School Property There no state statutes that require a school district to dispose of property in any particular manner • Consider using graduated offering • First to Public Agencies • Next to Non ‐ profits • Third to general public • Consider using a Balanced Return Strategy that utilizes a scoring system that weighs Purchase Price and terms against i h i h h i d i community benefit.
Re ‐ use as Affordable Affordable Living • Adaptive re ‐ use of existing structure • Classroom sizes are adequate for 1 bedroom units • Additional • Additional plumbing required • Administrative space can be p utilized as leased office or medical • Office space • Gymnasiums can be utilized as recreation and common areas
Examples of School Re ‐ use l f h l Mixed use Office Affordable Senior Living
Re ‐ use as Re use as Senior Living • Adaptive re ‐ use of existing structure • Classroom sizes are adequate for 1 bedroom units bedroom units • Administrativ e space is easily adapted for care providers use • Kitchens can be improved for additional food service food service requirements • Gymnasiums can be utilized as recreation and common areas
Multi ‐ story Re ‐ use • Double your pleasure/double your fun • Not as desirable for Senior Living • Very similar to y garden style apartments can be used as Market rate or Affordable Living Living
Community M di Medical Center l C t Adaptive re ‐ use of existing structure Many existing spaces were utilized without need for structural modification modification Multi ‐ tenant opportunities: • Health Club • Health Club • Chiropractor • Wellness Center • Clinic • Dental Clinic • Nutrition Clinic
Questions • How do you handle the sale of surplus land if it still has bonded debt on it? – Typically bonds are secured by the full faith and credit of the taxing Typically bonds are secured by the full faith and credit of the taxing authority, not by real estate assets. If they are, a release process will be required between creditor and debtor which assures the creditor that sufficient security on the remaining debt is still available after an that sufficient security on the remaining debt is still available after an asset sale. • • Timing an asset sale Issues in selling versus holding an excess asset ? Timing an asset sale. Issues in selling versus holding an excess asset ? – School District real estate should be viewed as an operating asset in which a periodic review process is used to determine what assets are necessary to continue core operations and whether it is more prudent necessary to continue core operations and whether it is more prudent to own or to lease property.
Questions Timeline of the sale of a school in various locations (commercial vs. residential • zones) ? – All real estate product types have similar market cycles that occur at different times. There are typically four phases Recession, Recovery, Expansion, and Contraction. The Portland MSA today: – • Single Family Residential ‐ Recession on the cusp of Recovery • Multi ‐ family Residential ‐ Expansion • Industrial ‐ Recovery on the cusp of Expansion • Retail ‐ Recovery • Office ‐ Recovery • Do you have recommendations for firms that evaluate district real estate assets for ‐ sale, remodel ? ‐ Costs & timing of such studies. – Cushman & Wakefield of course CBRE – Jones Lang LaSalle ll – Cost and timing is entirely dependant on the scope of the project and such factors as – number of schools or sites, age of assets, location, and accessability.
Example of BOV Summary Example of BOV Summary SWOT SWOT Value Range Value Range Strengths • Low value estimate – Surrounding uses allow for multiple re ‐ uses – Existing middle class neighborhood $800,000 $800,000 – Adjacent to City park Adjacent to City park – Proximity to retail and services High value estimate • Weaknesses Blighted residential neighborhood to the south – $1,500,000 – Rail line could be noisy and a physical nuisance – Existing classrooms have little value Existing classrooms have little value • Opportunities – Redevelop as mixed use with ground floor retail and potential Charter school, day care facility Suggested marketing price: – Potential for commercial, public agency, senior living, affordable living affordable living $1,250,000 • Threats – Neighborhood resistance to reuses – Jurisdictional resistance to rezoning Redevelopment could require utility upgrades –
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