Oregon Public Schools Oregon Public Schools Di Disposition Best - - PowerPoint PPT Presentation

Oregon Public Schools Oregon Public Schools

Di iti B t P ti G id Disposition Best Practices Guide

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

hi h ti b l ? which properties may be surplus?

• 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? Ti li f h l f h l i i

• Timeline of the sale of a school in various

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

Th d i i t di f h l i

• The decision to dispose of a school is never

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

D hi d P h hi

• Demographics and Psychographics
• Capital Expense Requirements
• Ongoing Operating Costs
• Environmental and Transportation Issues

Environmental and Transportation Issues

• Aesthetics

I t it

• Impact on community

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

Di t il il h d t b it di – Direct mail, email, hand‐outs, website, radio announcements

D t ti

• Document your actions

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

i h i h h i d i scoring system that weighs Purchase Price and terms against community benefit.

Re‐use as Affordable Affordable Living

• Adaptive re‐use
• f existing

structure

• Classroom sizes

are adequate for 1 bedroom units

• Additional
• Additional

plumbing required

• Administrative

space can be p utilized as leased

• ffice or medical
• Office space
• Gymnasiums

can be utilized as recreation and common areas

l f h l Examples of School Re‐use

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 l C t Medical Center

Adaptive re‐use of existing structure Many existing spaces were utilized without need for structural modification modification Multi‐tenant

• pportunities:
• 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 ll – Jones Lang LaSalle – 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 Value Range SWOT

• Strengths

– Surrounding uses allow for multiple re‐uses – Existing middle class neighborhood – Adjacent to City park

Value Range Low value estimate $800,000

Adjacent to City park – Proximity to retail and services

• Weaknesses

– Blighted residential neighborhood to the south – Rail line could be noisy and a physical nuisance Existing classrooms have little value

$800,000 High value estimate $1,500,000

– Existing classrooms have little value

• Opportunities

– Redevelop as mixed use with ground floor retail and potential Charter school, day care facility – Potential for commercial, public agency, senior living, affordable living

Suggested marketing price:

affordable living

• Threats

– Neighborhood resistance to reuses – Jurisdictional resistance to rezoning – Redevelopment could require utility upgrades

$1,250,000