Post by gatormom on Oct 5, 2007 5:06:52 GMT -6
Metea site is getting costlier
Whatever happens, Dist. 204 pays more
By Melissa Jenco | Daily Herald Staff
Costs are rising by the day as Indian Prairie Unit District 204 debates whether to buy property in Aurora to house Metea Valley High School.
The district faces additional fees ranging from tens of thousands of dollars to several million dollars depending on what it decides to do about acquiring the 55-acre Brach-Brodie property off Route 59 near 75th Street and Commons Drive.
Officials decided to re-examine their options after a condemnation trial ended last week with a jury deciding Indian Prairie would owe roughly $17 million more than it offered property owners for the 55 acres -- or a total of about $31 million.
The district wanted to pay about $250,000 an acre for the property owned by the Brach-Brodie trust. The jury valued it at $518,000 an acre.
District 204 had hoped to combine the 55 acres with 25 acres it already owns to create a 3,000-student campus to help ease overcrowding at Neuqua Valley and Waubonsie Valley high schools.
Officials say they plan to move forward with Metea but want to explore whether to do it on the Brach-Brodie site or another piece of land.
At this point, almost any option will cost more than the district planned.
If the district chooses not to buy the Brach-Brodie site, it will have to pay the property owners' legal and expert witness fees from the condemnation trial. School board President Mark Metzger said that number is estimated to be at least $4 million.
He said the district is keeping that potential cost in mind during its deliberations.
But there also are extra costs lurking if District 204 proceeds with the purchase.
If a school district buys land it condemns, it has to pay interest on it at a rate of 6 percent a year, according to Jim Wilson, head of litigation at the Shefsky and Froelich law firm in Chicago.
For a property worth $31 million, the district is racking up charges of nearly $5,100 for each day it takes to decide whether to buy the land.
The school board has until Oct. 27 to make a decision.
In addition, projected construction costs also are rising. Construction was supposed to begin in the spring. Once that became impossible, the district hoped to at least do ground work this fall.
Officials have estimated the project will cost an additional $8 million if construction doesn't start until March. The school still is scheduled to open in the fall of 2009.
As Indian Prairie reviews its options, one of its considerations will be whether it needs the entire 80 acres. Metzger said some alternative sites are smaller.
If the district decides it doesn't need all 80 acres, it would have the option of buying the property and then selling part of it.
"The problem a school district runs into is if it is going to sell land, it has to be a competitive sale," Metzger said. "We can't just offer it to someone."
Property adjacent to the site earmarked for Metea is being purchased by the Pennsylvania Real Estate Investment Trust, which is considering building a retail lifestyle center. The company has not yet submitted formal plans to the city of Aurora, said Sherman Jenkins, executive director of the Aurora Economic Development Commission.
Metzger said the district has not talked to the Pennsylvania trust about whether it wants to buy more land.
He said the district talked with the trust this summer, but only about utility connections and access roads.
Whatever happens, Dist. 204 pays more
By Melissa Jenco | Daily Herald Staff
Costs are rising by the day as Indian Prairie Unit District 204 debates whether to buy property in Aurora to house Metea Valley High School.
The district faces additional fees ranging from tens of thousands of dollars to several million dollars depending on what it decides to do about acquiring the 55-acre Brach-Brodie property off Route 59 near 75th Street and Commons Drive.
Officials decided to re-examine their options after a condemnation trial ended last week with a jury deciding Indian Prairie would owe roughly $17 million more than it offered property owners for the 55 acres -- or a total of about $31 million.
The district wanted to pay about $250,000 an acre for the property owned by the Brach-Brodie trust. The jury valued it at $518,000 an acre.
District 204 had hoped to combine the 55 acres with 25 acres it already owns to create a 3,000-student campus to help ease overcrowding at Neuqua Valley and Waubonsie Valley high schools.
Officials say they plan to move forward with Metea but want to explore whether to do it on the Brach-Brodie site or another piece of land.
At this point, almost any option will cost more than the district planned.
If the district chooses not to buy the Brach-Brodie site, it will have to pay the property owners' legal and expert witness fees from the condemnation trial. School board President Mark Metzger said that number is estimated to be at least $4 million.
He said the district is keeping that potential cost in mind during its deliberations.
But there also are extra costs lurking if District 204 proceeds with the purchase.
If a school district buys land it condemns, it has to pay interest on it at a rate of 6 percent a year, according to Jim Wilson, head of litigation at the Shefsky and Froelich law firm in Chicago.
For a property worth $31 million, the district is racking up charges of nearly $5,100 for each day it takes to decide whether to buy the land.
The school board has until Oct. 27 to make a decision.
In addition, projected construction costs also are rising. Construction was supposed to begin in the spring. Once that became impossible, the district hoped to at least do ground work this fall.
Officials have estimated the project will cost an additional $8 million if construction doesn't start until March. The school still is scheduled to open in the fall of 2009.
As Indian Prairie reviews its options, one of its considerations will be whether it needs the entire 80 acres. Metzger said some alternative sites are smaller.
If the district decides it doesn't need all 80 acres, it would have the option of buying the property and then selling part of it.
"The problem a school district runs into is if it is going to sell land, it has to be a competitive sale," Metzger said. "We can't just offer it to someone."
Property adjacent to the site earmarked for Metea is being purchased by the Pennsylvania Real Estate Investment Trust, which is considering building a retail lifestyle center. The company has not yet submitted formal plans to the city of Aurora, said Sherman Jenkins, executive director of the Aurora Economic Development Commission.
Metzger said the district has not talked to the Pennsylvania trust about whether it wants to buy more land.
He said the district talked with the trust this summer, but only about utility connections and access roads.
