MILFORD EXEMPTED VILLAGE SCHOOL DISTRICT BUSINESS ADVISORY COUNCIL 1/21/2016 Business Advisory Council (Attachment A - Roster) Milford Exempted Village School District RE: Recommendation for Milford South Assignment 2015 #3 The BAC has been tasked to evaluate and recommend a plan of use regarding the former Milford South Elementary School at 777 Garfield Rd. Based on our September recommendation and subsequent passing, the Board of Education and Administrative Offices will move to the newly acquired library site once the library has moved into a new building and renovations on the former site are complete. The BAC reviewed the following options for the Milford South site(attachment B - Options): 1. Property Sale 2. Refocus 3. Property Grant or Trade 4. Divide and Distribute 5. Maintain 6. Shutdown 7. Teardown Key Evaluation Tools 1. Location 2. Cost and value 3. Efficiency Observation If the property is to be sold, the BOE will need to follow a specific state-mandated roadmap for the sale of real property, which is currently appraised at $950,000. This has changed slightly from the past and includes the following, in order: 1. May be offered to a local non-profit, or governmental agency, as specified in section 3313.41 of the Ohio Revised Code (Attachment C Ohio Revised Code 3313.41) 2. Must be offered to any and all high performing community(charter) school at the appraised value, with notice (Attachment D Ohio Revised Code 3313.413) 3. If still no offers, property must be offered to any and all start-up community schools or college preparatory boarding schools located within the current district, with notice (As of today, no schools exist matching this criteria)
Risks 4. If the above items do not result in an offer or transaction, the BOE must list the property for auction with the proper notices 5. If BOE does not accept a bid during the auction process, BOE may choose to negotiate privately 1. Completion of the library/mulberry land swap 2. Local zoning approval (For the developer if there are contingencies) 3. Local economy and housing starts decline Timeline The basis for our recommendation is that the library becomes property of the district in the near term. The library would need to continue to operate at the SR 131 site until construction is completed at the Mulberry site. The library is projecting to move into the new site in 2017. Renovation of the former library could be completed by the Summer of 2017 for potential move of the board offices. Recommendation The BAC believes that the Milford South site has no functional, economic use for the district once the Board and offices are moved to the newly acquired library site on SR 131. The BAC reviewed, in detail, the above options and concluded that the site had more value in a sale than to keep or maintain it for district use. Based on current interest and future unknowns, the BAC recommends that the BOE begin the process of selling the Milford South property. The BAC also recommends that any offering include a contingency for the Board and Offices to remain on-site until the renovated library is available for relocating. Supporting Reasons: 1. The site does not have a good use for the district once the offices are moved 2. With the uncertain nature of the economy and alternative schools, the process should be expedited to provide the BOE with some certainty 3. The site has significant interest from local residential developers and is expected to attract good value for Milford Schools 4. A contingency period could be valuable to the City and community as they look to get involved at the early planning stages, while also being of value to a developer as they prepare for financing, zoning, and design. 5. Monies generated from the sale will be deposited in the Permanent Improvement Fund Business Advisory Council Chris Hamm, Chair Attachment A January 21, 2016 Page 2
MEVSD BAC Roster September 2015 Name Phone Email Chris Hamm, Chair 513-225-5689 cthamm@globalscrap.net Jeff Wright 513-248-3721 Jeff.wright@miamitwpoh.gov Tim Howland 513-313-0712 tim@howland-group.com Ellen McCrate 513-576-2227 mccrate_e@milfordschools.org Frank Torbeck 513-646-2188 frank.torbeck@everestrealestate.com Randy Homoelle 513-608-8553 rhomoelle@msn.com Mike McCurdy 513-314-0558 mmcdirt@aol.com Steve Wallace 513-248-4339 wallacearchitectsohio@gmail.com David Striet 513-659-8568 davestriet@gmail.com Tony Hyott 513-543-1853 Tony.hyott@stelizabeth.com Attachment B: Options for Milford South Property Sale January 21, 2016 Page 3
As with previous properties, Milford EVSD would be required to offer the site for auction. Once the bids have been received, it is up to the Board to evaluate the offers and decide whether to accept one. If not, the Board is free to negotiate a private sale. The site could be sold for demolition and new residential development, or find a buyer that is interested in keeping the current structure for an institutional use. Based on location, the council feels that commercial use is not a viable option. BAC has reached out to local agencies with no interest. If a sale is recommended, an auction could provide an opportunity for an institution to show interest. Most private developers that have been contacted believe that residential use is the only option for the site. This recommendation would provide for the generation of cash, the elimination of MEVSD as a potential landlord (based on the proposed swap), and eliminate the risk of upkeep. Refocus Milford South has been reviewed previously as a potential site for a full-time kindergarten facility within the district. This was dismissed as not economically feasible, whether this site or any other. The facility could be used for storage and maintenance if objectives are not met with other options. At the October meeting it was determined that this site was not practical for use within the district as it has no use as an educational building and is not centrally located or functional as a district storage facility. With an appraised value of $950,000, it is in the best interest of the Board of Education to begin the process of selling the land and facility. Property Grant or trade If there is no viable commercial interest, the property could be transferred to a government or non-profit organization. This recommendation would provide for the elimination of MEVSD as a possible landlord (based on proposed swap) and eliminate risk of upkeep. Because the property has value, it is important that MEVSD look to maximize a sale price for use in other capital projects. To date, there has been no trade interest. For this reason, this option has been eliminated from further discussion. Divide and Distribute Unlike the Milford Main site, Milford South is more isolated and may not have value in the divide and distribute model. The council feels that the property has more value as one unit, rather than dividing. For this reason, this option has been eliminated from further discussion. Maintain Based on the proposed library swap, the MEVSD Board of Education, administrative offices, and storage would move in the summer/fall of 2017. With no remaining use or tenant, maintaining would not be viable past this date unless there was a specific future plan or use in place. January 21, 2016 Page 4
Shutdown Through input, this has been the least attractive option as it would require the building to be boarded up and secured. Despite its relatively isolated location, the building would become unsightly and could have a negative impact on the surrounding community and property values. For this reason, this option has been eliminated from further discussion. Teardown This option requires more in-depth study on the value of maintaining the building on the site vs. the value of the site without the building. This should be seen as a last resort based on a review of all other options and may be dictated by the recommendation of future use. For this reason, this option has been eliminated from further discussion, unless it provides value in the potential sale of the property. Attachment C 3313.41 Disposal of real or personal property - acquisition of real property. January 21, 2016 Page 5
(A) Except as provided in divisions (C), (D), (F), and (G) of this section and in section 3313.412 of the Revised Code, when a board of education decides to dispose of real or personal property that it owns in its corporate capacity and that exceeds in value ten thousand dollars, it shall sell the property at public auction, after giving at least thirty days' notice of the auction by publication in a newspaper of general circulation in the school district, by publication as provided in section 7.16 of the Revised Code, or by posting notices in five of the most public places in the school district in which the property, if it is real property, is situated, or, if it is personal property, in the school district of the board of education that owns the property. The board may offer real property for sale as an entire tract or in parcels. (B) When the board of education has offered real or personal property for sale at public auction at least once pursuant to division (A) of this section, and the property has not been sold, the board may sell it at a private sale. Regardless of how it was offered at public auction, at a private sale, the board shall, as it considers best, sell real property as an entire tract or in parcels, and personal property in a single lot or in several lots. (C) If a board of education decides to dispose of real or personal property that it owns in its corporate capacity and that exceeds in value ten thousand dollars, it may sell the property to the adjutant general; to any subdivision or taxing authority as respectively defined in section 5705.01 of the Revised Code, township park district, board of park commissioners established under Chapter 755. of the Revised Code, or park district established under Chapter 1545. of the Revised Code; to a wholly or partially taxsupported university, university branch, or college; to a nonprofit institution of higher education that has a certificate of authorization under Chapter 1713. of the Revised Code; to the governing authority of a chartered nonpublic school; or to the board of trustees of a school district library, upon such terms as are agreed upon. The sale of real or personal property to the board of trustees of a school district library is limited, in the case of real property, to a school district library within whose boundaries the real property is situated, or, in the case of personal property, to a school district library whose boundaries lie in whole or in part within the school district of the selling board of education. (D) When a board of education decides to trade as a part or an entire consideration, an item of personal property on the purchase price of an item of similar personal property, it may trade the same upon such terms as are agreed upon by the parties to the trade. (E) The president and the treasurer of the board of education shall execute and deliver deeds or other necessary instruments of conveyance to complete any sale or trade under this section. (F) When a board of education has identified a parcel of real property that it determines is needed for school purposes, the board may, upon a majority vote of the members of the board, acquire that property by exchanging real property that the board owns in its corporate capacity for the identified real property or by using real property that the board owns in its corporate capacity as part or an entire consideration for the purchase price of the identified real property. Any exchange or acquisition made pursuant to this division shall be made by a conveyance executed by the president and the treasurer of the board. (G) Except as provided in sections 3313.412and 3313.413 of the Revised Code, when a school district board of education decides to dispose of real property, prior to disposing of that property under divisions (A) to (F) of this section, it shall first offer that property for sale to the governing authorities of the start-up community schools established under Chapter 3314. of the Revised Code, and the board of January 21, 2016 Page 6
trustees of any college-preparatory boarding school established under Chapter 3328. of the Revised Code, that are located within the territory of the school district. The district board shall offer the property at a price that is not higher than the appraised fair market value of that property as determined in an appraisal of the property that is not more than one year old. If more than one community school governing authority or college-preparatory boarding school board of trustees accepts the offer made by the school district board, the board shall sell the property to the governing authority or board that accepted the offer first in time. If no community school governing authority or collegepreparatory boarding school board of trustees accepts the offer within sixty days after the offer is made by the school district board, the board may dispose of the property in the applicable manner prescribed under divisions (A) to (F) of this section. (H) When a school district board of education has property that the board, by resolution, finds is not needed for school district use, is obsolete, or is unfit for the use for which it was acquired, the board may donate that property in accordance with this division if the fair market value of the property is, in the opinion of the board, two thousand five hundred dollars or less. The property may be donated to an eligible nonprofit organization that is located in this state and is exempt from federal income taxation pursuant to 26 U.S.C. 501(a) and (c)(3). Before donating any property under this division, the board shall adopt a resolution expressing its intent to make unneeded, obsolete, or unfit-for-use school district property available to these organizations. The resolution shall include guidelines and procedures the board considers to be necessary to implement the donation program and shall indicate whether the school district will conduct the donation program or the board will contract with a representative to conduct it. If a representative is known when the resolution is adopted, the resolution shall provide contact information such as the representative's name, address, and telephone number. The resolution shall include within its procedures a requirement that any nonprofit organization desiring to obtain donated property under this division shall submit a written notice to the board or its representative. The written notice shall include evidence that the organization is a nonprofit organization that is located in this state and is exempt from federal income taxation pursuant to 26 U.S.C. 501(a) and (c)(3) ; a description of the organization's primary purpose; a description of the type or types of property the organization needs; and the name, address, and telephone number of a person designated by the organization's governing board to receive donated property and to serve as its agent. After adoption of the resolution, the board shall publish, in a newspaper of general circulation in the school district or as provided in section 7.16 of the Revised Code, notice of its intent to donate unneeded, obsolete, or unfit-for-use school district property to eligible nonprofit organizations. The notice shall include a summary of the information provided in the resolution and shall be published twice. The second notice shall be published not less than ten nor more than twenty days after the previous notice. A similar notice also shall be posted continually in the board's office. If the school district maintains a web site on the internet, the notice shall be posted continually at that web site. The board or its representatives shall maintain a list of all nonprofit organizations that notify the board or its representative of their desire to obtain donated property under this division and that the board or its representative determines to be eligible, in accordance with the requirements set forth in this section and in the donation program's guidelines and procedures, to receive donated property. January 21, 2016 Page 7
The board or its representative also shall maintain a list of all school district property the board finds to be unneeded, obsolete, or unfit for use and to be available for donation under this division. The list shall be posted continually in a conspicuous location in the board's office, and, if the school district maintains a web site on the internet, the list shall be posted continually at that web site. An item of property on the list shall be donated to the eligible nonprofit organization that first declares to the board or its representative its desire to obtain the item unless the board previously has established, by resolution, a list of eligible nonprofit organizations that shall be given priority with respect to the item's donation. Priority may be given on the basis that the purposes of a nonprofit organization have a direct relationship to specific school district purposes of programs provided or administered by the board. A resolution giving priority to certain nonprofit organizations with respect to the donation of an item of property shall specify the reasons why the organizations are given that priority. Members of the board shall consult with the Ohio ethics commission, and comply with Chapters 102. and 2921. of the Revised Code, with respect to any donation under this division to a nonprofit organization of which a board member, any member of a board member's family, or any business associate of a board member is a trustee, officer, board member, or employee. Attachment D January 21, 2016 Page 8
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