The Fountain Hills Unified School District Governing Board held a study session April 13 to discuss and review district properties, including three parcels of undeveloped land and the original site of Four Peaks Elementary School.

Before getting the session underway, Superintendent Dr. Patrick Sweeney stated that he considered this only the first discussion on this subject, one that he hopes to see considered further in the coming months.

“I’m not looking for any decisions tonight, but I am curious where [the board] wants us to put our energy and efforts moving forward,” Sweeney added.

For this study, Nathan and Associates, Inc. conducted the valuation. As Sweeney pointed out, this was done at no cost to the district.

Valuation

FHUSD’s undeveloped sites are parcels of land off of Hawk, El Lago and Aspen Drives. The Four Peaks campus is located on E. Calaveras Ave.

The site on Aspen measures 19.95 acres, half of which is viable for residential development. The valuation of that site ranges from $1.36 million to $1.98 million.

The El Lago site is the largest of the three undeveloped properties at 35.07 acres, roughly 26 of which are viable for residential development. That site is valued at $1.57 million to $2.35 million.

As for the Hawk site, the district owns 15.71 acres, roughly 12 of which could be used for residential development. That site is valued at $665,000 to $1.26 million.

All told, these three properties are valued at $3.6 million to $5.59 million.

Finally, the original Four Peaks Elementary School campus boasts 3.72 acres of undeveloped land and 69,277 square feet of building space estimated at $8.3 to $9 million.

Land options

Sweeney advised the board that there are three options concerning the three undeveloped properties. FHUSD can either continue to hold onto the properties, explore rezoning efforts on one or more properties to increase yield and value, or sell the properties.

Sweeney said that the process for selling is “cumbersome” and requires an election called by the governing board with the reason for sale stated.

“There are things to consider on top of that, such as the cost of holding an election,” Sweeney added.

If the board decided to sell, the funds could be used to reduce bond indebtedness, purchase additional sites or to cover capital improvements of existing properties. Funds could not be used for maintenance and operations, including salary and benefits.

If the board called for an election and the sale of the properties is approved, the district would not be obligated to go through with a sale but would have the option to do so for 10 years so long as funds were used as originally specified leading into the election.

Four Peaks

As for the Four Peaks site, FHUSD’s options include leaving the site as is, selling the property utilizing the same process as the undeveloped land, developing a “community education center” or pursuing a long-term use agreement with EVIT.

“The building is in relatively good shape,” Sweeney said, adding that the site already has a partial lease to a local church running through the 2016 calendar year.

Sweeney went on to discuss the strengths and weaknesses of each option.

“If we keep the site, there’s a minimal cost to carry it as it is, barring any major needs,” Sweeney said, adding that this option would allow the district to utilize the site if needed in the future.

If sold, Sweeney said that the current valuation seems a bit high with limited demand. If offered for sale, FHUSD would also have no say in the buyer and the building would not be available for future use.

If the district decided to establish a community education center, the site could provide an alternate use for student and adult programing before, during and after school, and the site would be available in case of future need.

However, this option would mean that capital and M&O costs would be incurred prior to self-sufficiency.

“We wouldn’t open the doors and start making money, in other words,” Sweeney added.

If the district decided to enter into an agreement with EVIT, Sweeney noted that it would require a long-term commitment of at least 20 years.

Local EVIT programs would provide a value to the district, students, neighborhood and community, Sweeney added, but it would not be available for future needs.

Sweeney also pointed out that this type of lease agreement does not put money in the district’s pocket, as EVIT would look to lease the facility for as little as possible. The tradeoff would be that EVIT would incur all maintenance and upkeep costs, eliminating costs to the district while providing the value of programs readily available in Fountain Hills.

Reaction

“I’m not speaking for the board here, but I’m not an advocate of selling the properties,” stated Board President Jill Reed following the presentation.

She said that owning property was a positive and considered the selling of undeveloped sites more of a “rainy day” option. If the district failed bond or override elections, for instance, that would be the time to rely on such emergency measures.

The board showed interest in seeing the Four Peaks campus utilized, but stated that more information would need to be gathered before entertaining any sort of action. Examples included getting a read on the community surrounding the campus, more details concerning a possible partnership with EVIT and options for a community education center.

The board will return to this discussion and further consider possibilities at a future date.