Building Ownership Committee Meeting March 14, 2007

[Diane Blevins]

Proceedings of the Board of Trustees

District No. 2, Yellowstone County

High School District No. 2, Yellowstone County

Billings, Montana

 

March 14, 2007

 

Call to Order

 

The Meeting of the Building Ownership Committee of the Board of Trustees of School District No. 2, Yellowstone County, Montana, and High School District, Yellowstone County, Montana, was duly held at The Lincoln Center, 415 North 30th Street, Billings, Montana, March 14, 2007, at 5:30 p.m.

 

Those present included: Trustees Joel Guthals, Malcolm Goodrich, Sandra Mossman, Superintendent Jack Copps, Dave Williams, Rich Whitney, District Clerk Leo Hudetz and Thomas Harper.

 

Review Proposals for the Grand Avenue Property and Make Recommendation to the Board of Trustees

 

Trustee Mossman reported the committee needed to give an advisory statement to the Board now that the Request For Proposals have been reviewed. Trustee Goodrich was concerned that the committee should not be going beyond the goal of what the charge was from the Board. He also felt the contracts would have to undergo some changes before any could be approved. Trustee Guthals stated he found some typos and suggested the final contract should be handled by the Superintendent’s office. Chair Goodrich stated the proposal to purchase the property on Grand Avenue for $1,700,000 has been taken off the table and administration should concentrate on the two offers from the Hawkins group.

 

Superintendent Copps reported, if the District moves forward with the construction of an elementary school, the proceeds could be used for that school. He was not sure if a bond could be hooked to a lease agreement. Trustee Guthals felt the contract could be sold. Trustee Goodrich stated he was not ready to commit to a ground lease and was favoring the sale of the property. Trustee Guthals suggested that administration should find an attorney who specializes in ground leases and that an economist be found to conduct an analysis. Information will be collected and presented to the Board at the Friday evening meeting.

 

There was a concern voiced that, if the Board votes to sell the property, the public may feel that a mill levy is not needed as property is being sold and could be used for the general fund. The proceeds would have to be designated for the elementary building reserve fund or deferred maintenance and would be used for the inevitability of reducing bond indebtedness. Trustee Goodrich stated he would invite Glen Rickett to the meeting on Friday night to answer any questions the Board may have. The risk of default must also be considered with a ground lease.

 

Trustee Guthals found the buy/sell agreement to be a standard agreement. It was determined there could be only one deed at the time of closing and no quick claim deed. It was suggested a provision be included for the buyer to cover the costs of separating the legal description of the Grand Avenue property from the Lewis & Clark property. A general description of the property could be given until the title policy was obtained. It was felt the District could cover the cost of the survey. Rich Whitney will contact Engineering Inc. in the morning to check on when a survey could be conducted. It will also take time to go through the city Planning Department. Mr. Copps reported he would meet with Candy Beaudry from City/County Planning to inform her of the possible subdivision of the property.

 

Possible Future Use of Washington Elementary Campus and Make Recommendation to the Board of Trustees

 

Superintendent Copps reported Young Families will have to move from Beartooth and finds itself unable to locate adequate space to lease. The amount needed to lease is 40,000 sq. feet. He suggested the District lease the corner property by Washington Elementary to Young Families for $1 per year. Young Families would move in modulars of approximately 7,500 sq. feet on that property and add a parking lot. Early Childhood Intervention (ECI) could also occupy a portion of that property. ECI has funds in their budget to cover the cost of a modular for their use.

 

Chair Goodrich reported he would like some type of control over the type of buildings that are used. Mr. Copps reported that would not be a problem. Trustee Goodrich made the following motion with a second by Trustee Guthals;

 

Motion to advise the Board to authorize administration to enter into a nominal contribution and architectural control ground lease on the Washington property to locate the Young Families Program with satisfactory lease terms.

Those voting in favor were Malcolm Goodrich, Joel Guthals and Sandra Mossman. The motion passed unanimously. As the Washington property is elementary, High School Trustee Guthals was able to vote on the motion in an advisory capacity.

 

As there was no further business, the meeting adjourned at 7:05 p.m.

 

 

 

 

Sandra Mossman, Chair

 

 

 

Diane Blevins, Recorder