School Board Considers Strategic Land Purchase
On September 17, 2012 the Oregon City School Board announced interest in acquiring a property currently on the market and located on Glen Oak Road adjacent to Oregon City High School because of its strategic value.
A public work session was held on Monday, October 22, 2012 at 6:00pm in the District Board Room to discuss the possibility and proposed terms for the purchase.
The board will decide whether or not to purchase the property Monday, October 29th at 6 p.m in regular session.
The board will review comments and questions submitted prior to 5:00pm on Wednesday, October 24, 2012
As part of a strategic planning goal, the school board initiated a review of all real property held by the district.
The school district owns several vacant lots, land parcels and former school buildings. Some of these properties have strategic value to the district for future use and some do not. Using current demographic data and projections, the Board initially identified several properties to be placed on the market for liquidation at their regular Board meeting on October 8, 2012. The properties are listed below.
Amanda Court in Oregon City
Tax Lot Number: 31E01DB00405
Van Buren Street in Oregon City
Tax Lot Number: 22E32BC04500
Jackson Street in Oregon City
Tax Lot Number: 22E32BC04800
Parties interested in any or all of these properties should contact Ted Thonstad, Director of Operations.
The purpose of this review is to convert “sleeping” assets into “working” assets.
The Board will continue its review of other properties owned by the district in an attempt identify for immediate or future sale any other property with no strategic future value. The proceeds from these sales will be reinvested in other capital assets with strategic value or to improve or maintain current capital assets.
Why does the Board want to acquire this property?
The land under consideration for purchase is located between the high school and Clackamas Community College. The location is strategic for the district because it provides the opportunity for future development that will create new efficiencies for district operations. Potential uses within the next twenty years include the possible construction of a new elementary school or the relocation of other district operations. This purchase aligns with the board goal to reconfigure assets to better manage the future needs of the district.
Is this the right time to buy?
The right time to buy is when it’s for sale. The real estate market is improving, but it is still a buyer’s market. Financing costs have never been lower. While the economic challenges faced by public education in Oregon and Oregon City make it difficult, school boards still must plan for the long-term.
How would the district pay for the property?
The district would finance the purchase of the property which would be paid for with capital funds. Most of those dollars would come from a revenue stream to the district from Construction Excise Taxes (CET), which are designated for such purposes and cannot be used to pay for operations. No general fund or operating dollars would be used for the purchase of land.
Will the purchase of this land result in further cuts to the schools?
No. Selling land or purchasing land does not affect class sizes, staff or programs.
What are the purchase terms?
The sellers have offered the property for purchase below the asking price. The specific terms are still under negotiation. The district hopes to have specific terms available for public review at the Board Work Session on Monday, October 22, 2012.
Questions or comments?
The board will review comments and questions submitted prior to 5:00pm on Wednesday, October 24, 2012.
Oregon City School District is an equal opportunity educator and employer.