001whether it's M or capital, but it looks like you're saying that this our intention is only for capital use. Did I understand that correctly? No, that wasn't my point. I was trying to uh make it clear that uh the current language keeps it flexible that uh if it's a sale under current statute the monies would largely be used for capital but if it's a lease which is where a lot of districts are these days perhaps not yours but most districts that are disposing of property now uh are aiming toward leases because they they desperately need operating dollars. So the ballot language that's before the board today makes no predetermination on that point. Uh we we allow for any eventuality under uh then current law. So whatever law will be in effect uh next year or
002thereafter. So we're not we're not we're purposefully not putting the district or the board in a box. Uh we're just allowing the ultimate flexibility which is our general approach to elections. I I do understand that that every district is different and you know your district may have particular needs, but I haven't we like I said earlier, we haven't been challenged or really even questioned on on on the current language. We've not had someone say, "Well, we need more specificity on how we're going to use the sale or lease proceeds or perhaps that we want a sale question uh and a separate lease question." Uh that's never come up on my radar. Um not to say that we we couldn't do it. I think that would be perfectly legal to do separate valid questions. Uh we
003just haven't done so uh in the past, nor have we been asked to. It would it would cost a little more to have a second ballot question on there or perhaps even a third if you wanted to include the exchange option uh just because, you know, the county would charge more for that. But uh um that's that's been my approach. Like I said, we haven't had an issue with it because I think ultimately we're in a single subject which is the disposition of of district property. Yeah. And and in the past that the issue within the district has been the fact that there is no specificity as far as how those funds will be used where the community wants to know upfront how will this money be used. The other issue is um I thought
004that there's there wouldn't be additional expense because it it is a mail-in ballot. Uh well, Mr. Moore could certainly check with the county on that, but I can't imagine that they wouldn't charge a little more. I mean, that uh for a second question just because uh it it it would be additional. It it would be it it would be more uh a longer ballot, you know, more type face, if you will, perhaps an extra uh piece of paper in there. I I don't know exactly, but we could find that out for sure. Okay. But yeah, I I do know for our districts that do kind of what you see as the typical second question, but like you were already planning on because you're already doing an override election. Um, and then to put the sight
005sale on, there's certainly a second an extra expense for that site sale. So now if we're doing a third perhaps question, so one sale, one lease, and one override, then I I got to imagine the countyy's going to that's going to be reflected in in what you're going to pay the county to some degree. But I don't know what that number would be. Okay. Yeah, that was that was a question I had brought up uh during a previous meeting and um it was mentioned that because it's mail in there wouldn't be additional um expense for that. Um so it would be nice to get some clarification on that. Uh and I know that the recommendation from Mr. Moore was initially for a lease. Uh so I I don't understand that if if the recommendation is
006for a lease then why we're not just going with that one option. Um and in your response you had mentioned that uh let me find your response. Um the 5if 15 1102 doesn't require an election, but it does require an election if we do have a lease of um at least 20 years or more. Uh so based on the the term of a lease, it would require voter approval. Um, also my concern with a lease is, you know, do we're getting now into the business of real estate and we're in the business of education. And so then we have issues as far as do we have staff that's knowledgeable enough to be managing, overseeing, you know, property. uh what is the what is the the benefit to the community and and I know Mr. Moore
007mentioned that possibly a multifamily housing project uh and based on how how this is going to benefit the district also determines how the money can be used. do we know uh what that looks like? And I also had asked as far as an estimate of monthly revenue that we could potentially see from a lease. And I, you know, we weren't able to get that information. Uh and we're told that this has to be approved before any of that negotiation can happen. Uh but there are companies out there that do kind of a perform a um type of evaluation to determine based on market value what that would look like. President Wade, uh member Van Hook, I can answer some of those questions. Um so with regards to the sale, lease or exchange question and including
008all language, um correct me if I'm wrong, Mr. deal, but once you have authority or voter approval to sale or lease, that that authority is permanent. And so if we were to do um pass um a resolution and the voters were to approve this resolution with all three verbiage, it would give us in the board the ultimate authority at a later time or or now to to do exercise each one of those options. So again, it gives the the board that authority um and again it it it's a timing issue with regards to what makes sense for the district at a certain time. In regards to the lease, um we have uh there there's a couple leases out there. Kyne has one uh with an industrial warehouse um property and they get about $700,000 a
009year um in revenue. And so I've explained to the board and and the public many times that we are currently making lease payments of our own to the tune of 3.5 million and any revenue additional revenue that we would generate would be prudent of us to offset that lease payment um which would open up more operational dollars for teacher salaries increases etc. So, um, that is one of my main goals as a CFO is to try to reduce that current lease burden that the district's under. And by, uh, leasing a vacant piece of land that district owns, that we would be generating revenue to reduce that burden and ultimately put more money back in our classrooms. President Wade, may I? Go ahead, sir. All right. I just want to reiterate, you know, we are following
010the law here, uh, by asking voters permission to do so as required to law to to dispose, sell, or exchange or lease land. Um, if we don't, you know, I don't I don't I don't I don't understand putting the cart before the horse. If we don't like the terms of the disposition of the land or whatever it is, we don't have to do anything with this. Can you just, Mr. Gil, confirm that statement, please? Yes. Uh, good point. Uh this is if if you approve this in its present state, all you're asking the voters to do is do their part and approve it in November. If they do so, then um next year or in the future, uh it will come back to the board, this board or a future board for how the uh
011what the district what the uh administration's ultimate recommendation is as to any disposition. Um if if at all. Um, I mean to Tyler's point, this provides the ultimate flexibility. The only correction I would add, uh, is although the authority to sell or exchange is perpetual if the voters approve, the authority to lease expires after 20 years. So, still still ample time to do something. Um, and some districts have taken advantage of that. We've had clients who have waited 10 years until the conditions were right in both the real estate market and at the district itself to act on a sale, lease or exchange question and ultimately leased uh some property. Um some boards have the mindset that they the property any district property is kind of their birthright and they want to do whatever they
012can to hold on to it. So a lease makes sense to them even if it's long term you know 50 years plus. Uh ultimately they'll get it back at some point and uh they can do it if the district's needs change at that point. They can build the school or or dispose of it again. So thank you. Thank you for that. Absolutely. It's the law. Thanks, President Wade. Mr. more now in a in a situation of a lease, how do we how do we foresee the district managing that as far as qualified staff to I mean do we become a a management uh pro you know property management business like who who do you foresee managing this project and we don't have qualified staff at the district that's, you know, involved in real estate management.
013So then are we going to then have to spend money to hire dedicated staff? How does that how do you foresee that looking? Yeah, President Wade, member Van Hook, um we would Yeah, you're you're right. We we we're not qualified. We're not real estate individuals. um we we do manage you know 16 schools across the district but with regards to um real estate with multif family etc. Um we would we would hire that out or contract that out as a part of that lease agreement that is something that I would encourage the board to do. Yeah it would hurt some of our revenue. So, for example, if a total lease opportunity for maybe uh a proposal on that land is 700,000, but it costs us 100,000 to contract out somebody to run that, that's still
014a net benefit of 600,000 to the district. So, um I still think the pros out outweigh the the cons of of some of the overhead that may be u brought upon the district with a lease. Um, and that's just my my two cents. I um sorry, go ahead. No, go ahead. I was going to say I also um at the last I correction you Mr. Moore might not have been the May 13th. It may have been the April 22nd. Um that land currently is vacant. There is nothing on that land. We're not getting anything from it. We still have to maintain that land. So there is still costs to the land just existing as well. Um, and so I'm appreciative of the fact that right now as a district, we are doing everything we can
015to listen to and respond to not only the needs that we have in order to maintain running the district that we have and continuing to improve upon ourselves and provide the best opportunity for our students to continue to improve upon Higgley. but we are also doing what we can to try to respond to the fact that we didn't pass a bond twice. And so the idea that we're looking at other things, it was uh previously that uh I think it was board member Van Hook talked about selling that land off in order to gain revenue. I'm appreciative to the fact that this would be an annual income. Whereas if we sold that land, I think it was like 7 million is what we'd get at current. if we're making revenue off it each year in
016terms of property value and the lease and all of that. I'm appreciative of the options that we have created and the benefit that that is to the district to looking towards ways of of increasing our revenue not at the cost of our constituents. So, I think at least from my perspective, the idea of putting forth this proposal and looking at the options that we have and setting everything up to where it's in the best interest of the district overall, at least from the way that I look at it, is responding to all of the needs that not only our district has, but our community has expressed as well. President Wade, Mr. more. Can you tell me what the cost of maintaining the vacant land currently is as far as um weed whacking weeds? Yeah. Member
017Van Hook, we use um our current landscaping crew to maintain that land. So, I would estimate um probably, you know, 50 to 100 maybe man hours out of out of the year. And so it's really just taking uh our landscaping crew away from our um schools to maintain that land right now. So but the but the maintenance is very minimal considering it's just getting rid of weeds. Sure. Sure. Yeah, I would agree. Thank you. Um, my concern again with the lease is just our our purpose is education and not property management necessarily. Even though yes, we we manage all of our school district properties, but going into property management as far as housing and things like that, that's a whole different ballgame. Now, I know you said that there was somebody interested as far as
018a multifamily housing project. Uh, do you know if that's going to be like affordable housing or what that would look like? President W. Member Van Hook, I I've entertained conversations, but I haven't had any deep conversations because of the fact I didn't want to be thoughtful of my time. Um, and also that we have no voter authority to lease or or sell that land right now. So, yeah, I just I have concerns about voting on something when we don't have full information on what exactly is is going to happen and and my concerns. Obviously, we saw the issues that we had with the middle school leases and all the trouble that came along with that. And then also the recent bill that passed with the stadium now being on taxpayer dime. That bill passed and
019now the stadium wants 500 million for repairs. Like what prevents that from happening to us when we lease the land and then they come back and say, "Well, we're not going to extend the lease unless you now pay for all these repairs." And now the district is responsible for covering millions of dollars of repairs in order to continue business in in the lease. President Wade, go ahead, Mr. Glover. Thank you. You know, I just I just want to be clear where I'm where I'm sitting here. Um, you know, we haven't decided anything either way. Um, our obligation as a board uh under state statute is to pass a budget. So, when the time comes, speaking for myself and uh if other board members think differently, then please speak up. But when it comes time to
020make that decision, if I'm convinced that the proposal to dispose of this property makes sense for our community and for our school district, then I will vote for it. If it does not, then I won't. But we won't know that until after this issue passes. President Wade, go ahead, Miss German. Yes. I if uh president or uh Mr. Moore if you could kind of clarify with lease with the lease option is there inflation in those payments would if we do nail down a lease in general those contracts have inflated so we would go with the market right for those payments yeah President Wade Mr. German typically. So again, the one lease structure that I have reviewed with regards to Kyne, um it does have like a 3% inflation adjustment annually and there's definitely provisions in
021the agreement that prevent things um like Miss Man Hook mentioned for the district being on the on the hook for certain um expenses that are not related to um the district's business. So um there there's things in that agreement, but to Mr. Glover's point that is the second iteration. I think the first question at hand with this resolution is asking the voters and the taxpayers if they're interested in a sale lease or exchange of this property and then bringing back those options to the board to approve. Ultimately, I'm not approving a le this is not approving a lease right now. Um, we are approving the resolution for the question to ask our voters uh to sell, lease or exchange this land. And then we can um talk about how we want to go about uh
022the process of leasing and we can do community meetings like I like I've done um to discuss this and involve our taxpayers and some of these decisions. And then ultimately the board um like Mr. Glover said will be the ultimate approver of said lease or sale of land. Um but the first step is really u we've identified this piece of land as a potential revenue source and we um statutoily as Mr. Gill said we need the next step is to have our taxpayers um give us authority uh to proceed with a sale lease or exchange of this land. So okay and even if we got that authority could technically just sit on the decision so it doesn't make our decision rash. Yeah. Miss Garmin. Yeah, Mr. Gill stated you have and again I apologize I
023misspoke about the lease authority but you have 20 years of authority if this passes to lease you have um a uh forever to sell or exchange uh and correct me if I'm wrong Mr. Gil but that that is there's no urgency uh after this passes to rush a decision so we can take our time and thoughtfully involve our community in the next steps of this process. Okay, good. And then also are we paying tax on that property? Do you know what that property tax is? And I've also heard in some you know sometimes we can pass that on to the leasey but we can a we can approach that topic later. But I just wondered if what the taxes were that the district pays as well. President Wade member German we are tax exemp we
024do not pay property taxes as our revenue is generated from property taxes. So it'd be like paying oursel. Yes. Okay, thank you so much for clarifying. Go ahead, M. President Wade, Mr. Sherman, then this vote, we don't even know if we will be the one to vote on because we don't know what the market looks like in the future. We don't know what's going to happen in November. We don't know if this sale or lease or whatever it makes sense as Mr. Glover said. Then if at the time comes um then it makes sense for us to sell the land or lease the land then we would do what's best for the district at that time. The only thing we're voting for this morning is to give the authority uh to do so should we
025decide to do so at that time and it will have to go through all the due process as Mr. Moore mentioned as well. Yeah. Perfect. President Wade, I just my only concern is just leaving it open-ended. I I'm I'm all for, you know, figuring out I I've had conversations with Mr. more as far as determining, you know, ways that we could bring in additional revenue, but leaving it open-ended for the community and spending thousands of dollars for the ballot measure. My concern is because it's open-ended that the community would would reject that without knowing exactly what the district is going to do in the future. Okay. Um, so with that, at least it seems as if nobody else has any further questions or comments. Um, whoever offers the second, again, please state your name and
026your second after I motion. I motion to consider, discuss, amend if desired, and if deemed advisable, to adopt a resolution ordering and calling a special election to be held in and for the district and authorizing the sale, lease or exchange of district property. This is Scott Glover, and I will second that motion. Thank you, Mr. Glover. Uh, please state your name or sorry, please state your vote when your name is called. Vice President Tiffany Schultz. Could you hear me? I can now. Go ahead. Okay. Yay. Tiffany Schultz. Thank you, Miss Schultz. Uh, board member Anna Van Hook. Unfortunately, due to the reason of leaving a open-ended ballot measure at this time, I cannot support that. And with that, I vote nay. Board member Sarah German. With uh the potential of passive income and feedback from
027the community and uh an opportunity for community questions and such, I I am voting yay to give this opportunity for uh to support the district more financially. Makes fiscal sense to me. Board member Scott Glover. Yay. Uh, Amanda Wade, my vote is also yay. This measure passes 4 to one. I motion to adjurnn this meeting. I shall second that, Mr. Glover. I'm going to go to Glover just because he was louder. Schultz. I'm going to give that to Mr. Glover as well for the second. Thank you. Please state your name or sorry, please state your vote when I call your name. President Schultz on the motion to adjurnn. Vice President Schultz. You're the vice president. My bad. The title. Yay. Okay. Board member Anna Van Hook. Yay. Board member Sarah German. Yay. Board member Scott
028Glover. Yay. And my vote is also yay. Motion to adjurnn passes five to zero. Meeting adjourned. Have a good day everybody. Thank you everybody. Thank you.