Nicky Boyette – Eureka Springs School Board and the Community Center Foundation moved closer to transferring possession of the old high school property to the Foundation, but the changeover will have to wait another month. The school board voted to extend the transfer deadline, originally scheduled for June 30, another 30 days.
Diane Murphy, president of the CCF board, told the school board she was confident her group will have raised $200,000 by the end of June, and the Foundation would be prepared to take possession of the property if the latest version of the lease were approved by the school board.
“We are prepared to act. If we get under contract, we’ll all know where we stand,” Murphy said. Attorney Wade Williams, acting on behalf of the Foundation, sent the most recent draft of the lease to school board attorney Kristi Kendrick, but neither Kendrick nor the board had a chance to review it.
School board president Chris McClung also said he would need to review the lease before he agrees to anything. To accomplish a June 30 transfer, board members would have to convene a special meeting and make counter offers. However, Supt. Bryan Pruitt said he would be out of town, plus there are still other unsettled matters related to the transfer of the property.
Kendrick said a bond attorney told her the district still owed $88,000 on old bonds tied to the property, and this indebtedness restricts what the district can do. The district cannot pay off the bonds until they mature in four years. She mentioned one option would be to sell the property instead of leasing it.
Pruitt said another choice would be to purchase additional bonds to cover the old bonds, and with new bonds the district can turn over the property to the Foundation.
Board member Gayla Wolfinbarger said she wished the board had known about this encumbrance before they began lease negotiations, but board member Debbie Davis responded they could authorize Pruitt to work with the bond attorney to purchase new bonds, then proceed.
Pruitt told the board the district has the $88,000 plus the attorney’s fee – as much as $1500 – but funds were not budgeted for this purpose. He added the district pays about $40,000 annually on upkeep of the vacant property.
Wolfinbarger preferred delaying paying for bonds. “We’re here for the schools,” she said.
Board member Al Larson countered that if the bonds were secured and versions of the lease rectified, the Foundation could take possession of the property.
Davis again urged, “Get the bonds taken care of.” She pointed out during the four years until the bonds are due, the district would have paid almost $200,000 in maintenance of the vacant property.
“I don’t want to be here in a year rehashing this same thing. We need a takeover date,” board member Jason Morris said.
Other unresolved issues included roof repair of B-300 and asbestos removal in B-100 before it can be razed. Also, a survey revealed part of B-100 extends beyond the property line, and it has yet to be determined who owns the adjacent property. However, the board voted unanimously to extend the deadline 30 days for transferring the property to the Foundation.
CCF board member Glen Crenshaw commented Mayor Butch Berry had suggested the district could draw up a quitclaim deed on the property in question, and the school board voted to authorize Pruitt to take the necessary steps for a quitclaim deed.
The board also agreed to authorize Pruitt to solicit bids for the asbestos removal in B-100 and roof repair of B-300. These two tasks would be paid for with insurance money the district already received. Pruitt suggested the district would continue to pay for utilities and maintenance of the property for another month.
Next meeting will be Thursday, July 21, at 5:30 p.m.