Post by casey on Oct 29, 2009 13:09:39 GMT -6
Copy of an email I received:
Friends and Neighbors,
See attached article from the Daily Herald. Remember the sale of the 25 acres was included as $6.4 million asset justifying the Eola/Molitor site, not a liability as it should have been shown. Essentially, that's a $12.8 million negative swing against the economics used to justify the northern site where MVHS stands today.
Those citizens who stood up and tried hard to point out the "smoke and mirrors" games being played with enrollment figures, school capacities, and "bait & switch" were not taken seriously enough. CFO and NSFOC come to mind. Now others are stepping forward and becoming more active, vigilant of both the school district direction, and CN Rail's plans for the train tracks running next to MVHS, and they deserve our attention.
The best thing we can do is remember. Hopefully, you recognize what we are dealing with next time around. Don't be fooled again. The taxpayers were duped, and the actual facts now make this clear and indisputable.
Best Regards!
Unable to sell land, District 204 borrows to finish Metea Valley
www.dailyherald.com/story/print/?id=331372
By Justin Kmitch | Daily Herald Staff
Published: 10/24/2009 12:01 AM | Updated: 10/24/2009 12:20 AM
Not even the mighty Mustangs are immune from the real-estate slump.
Indian Prairie Unit District 204's inability to sell the 25-acre tract it owns at the site originally considered for Metea Valley High School has led officials to seek a $5 million bridge loan to pay for the remaining construction of the school, which opened in August.
"This is in order to buy time and bridge the time it will require for us to sell the 25 acres," Assistant Superintendent for Business Dave Holm said,
The district put the land, near Route 59 and 75th Street, on the market in January with a minimum price of $6.4 million, the amount the district paid for the land.
But the lack of takers have put it in a bind as the bills are coming due for the $124.6 million Metea Valley, scheduled to be complete in late January.
The district purchased the land, often called the Brach-Brodie site, in 2005 with the intention of later purchasing an additional 55 acres for $14 million for the future home of Metea Valley. But during condemnation proceedings, a jury set the price at $31 million - $17 million more than the district thought the land was worth. Talks broke down, and the district later abandoned its pursuit of the remaining 55 acres.
The new high school was built instead on Eola Road south of Diehl Road in Aurora.
Board member Christine Vickers opposed taking on the debt, fearful of relying on selling the land before 2014 to repay the principal loan.
"I understand that right now, that's where we are, that we would take those monies out right now here today as a bridge or a delay for that, but my sense tells me we are putting a risk on the table on whether or not we'll ever be able to put those monies back," she said.
"We don't have any guarantees or assurances that we will sell the land for $5 million, let alone to cover the full purchase price that we paid in 2005."
Holm said the only other option is take the money out of the district's operating funds now and risk not being able to pay other bills and payroll.
"The question is 'now or later?'" Holm said. "And I would also say that there is real value to the land. It's certainly not worthless, and the question is: 'When can we sell it and for how much?' But I think there's reason to believe it's worth every bit the $5 million."
Friends and Neighbors,
See attached article from the Daily Herald. Remember the sale of the 25 acres was included as $6.4 million asset justifying the Eola/Molitor site, not a liability as it should have been shown. Essentially, that's a $12.8 million negative swing against the economics used to justify the northern site where MVHS stands today.
Those citizens who stood up and tried hard to point out the "smoke and mirrors" games being played with enrollment figures, school capacities, and "bait & switch" were not taken seriously enough. CFO and NSFOC come to mind. Now others are stepping forward and becoming more active, vigilant of both the school district direction, and CN Rail's plans for the train tracks running next to MVHS, and they deserve our attention.
The best thing we can do is remember. Hopefully, you recognize what we are dealing with next time around. Don't be fooled again. The taxpayers were duped, and the actual facts now make this clear and indisputable.
Best Regards!
Unable to sell land, District 204 borrows to finish Metea Valley
www.dailyherald.com/story/print/?id=331372
By Justin Kmitch | Daily Herald Staff
Published: 10/24/2009 12:01 AM | Updated: 10/24/2009 12:20 AM
Not even the mighty Mustangs are immune from the real-estate slump.
Indian Prairie Unit District 204's inability to sell the 25-acre tract it owns at the site originally considered for Metea Valley High School has led officials to seek a $5 million bridge loan to pay for the remaining construction of the school, which opened in August.
"This is in order to buy time and bridge the time it will require for us to sell the 25 acres," Assistant Superintendent for Business Dave Holm said,
The district put the land, near Route 59 and 75th Street, on the market in January with a minimum price of $6.4 million, the amount the district paid for the land.
But the lack of takers have put it in a bind as the bills are coming due for the $124.6 million Metea Valley, scheduled to be complete in late January.
The district purchased the land, often called the Brach-Brodie site, in 2005 with the intention of later purchasing an additional 55 acres for $14 million for the future home of Metea Valley. But during condemnation proceedings, a jury set the price at $31 million - $17 million more than the district thought the land was worth. Talks broke down, and the district later abandoned its pursuit of the remaining 55 acres.
The new high school was built instead on Eola Road south of Diehl Road in Aurora.
Board member Christine Vickers opposed taking on the debt, fearful of relying on selling the land before 2014 to repay the principal loan.
"I understand that right now, that's where we are, that we would take those monies out right now here today as a bridge or a delay for that, but my sense tells me we are putting a risk on the table on whether or not we'll ever be able to put those monies back," she said.
"We don't have any guarantees or assurances that we will sell the land for $5 million, let alone to cover the full purchase price that we paid in 2005."
Holm said the only other option is take the money out of the district's operating funds now and risk not being able to pay other bills and payroll.
"The question is 'now or later?'" Holm said. "And I would also say that there is real value to the land. It's certainly not worthless, and the question is: 'When can we sell it and for how much?' But I think there's reason to believe it's worth every bit the $5 million."