School Board relinquishes primo property

The Eureka Springs School Board voted Monday night to donate the old high school property to the Eureka Springs Community Center.

The school had leased the property to ESCC, but a contingent from the center appeared at the July board meeting to ask about donating the property. ESCC representatives said they needed ownership of the property to apply for some grants. They also said the money currently spent on lease payments could go into developing the center and adding programs.

The issue did not appear on the July agenda for discussion, so board members only listened to the ESCC presentation. Discussion began this week with a motion from Al Larson to cancel the current contract and grant title to ESCC, subject to certain details suggested by the school’s attorney.

Larson said the school and ESCC have had an excellent relationship over the past six years. He said the lease for purchase was a good idea initially, to give the center an opportunity to start. He said granting the title would “further our beneficial relationship.”

Board member Gayla Wolfinbarger agreed that the lease had been a good arrangement but saw no need to change it. She said she had talked to many people who disapproved of giving away the property. “Taxpayers’ money provided the property,” she said, insisting that they had a responsibility to use the funds to help pay the cost of the new high school. Wolfinbarger reminded the others that selling the old high school had been part of the campaign to pass a millage for the new high school.

Board President Chris McClung noted that the school is paying on nearly $10 million in debt, and he downplayed the effect the lease payments would have on the school’s balance. McClung asked Supt. Bryan Pruitt about the legality of giving away property. In the past, schools could not give away property, but situations have arisen in which schools donated unneeded buildings for charter schools.

District Treasurer Pam McGarrah reminded the board of the shaky financial picture the ESCC painted at the July presentation. “They showed us last month they’re not solvent,” she said. “What if they fail?”

McClung said in that case, the school would have the first right to buy back the property, at a price that would not exceed the price paid for the property. The sale price would also include compensation for improvements made to the property.

Board member Jason Morris said, “We were elected by the voters to be good stewards of taxpayer dollars.” He objected to giving away taxpayer-owned property without something in return. “We’re failing the taxpayers if we just give it away,” he said.

Larson said there were precedents for schools to give away property, but Wolfinbarger said the cases they had heard involved donating property to a city or another public institution. She asked if any of those precedents involved a private entity. She also reminded the others, “Not too many years ago our finances were strapped, and we had to cut salaries.”

Roughly $300,000 remains on the original lease price of $400,000. McClung, Larson, Joe Hill, and Candace Spaulding voted in favor of donating the property, with Wolfinbarger, Morris, and Jayme Wildeman opposed. The approval includes requirements that the ESCC maintain an educational priority, with after-school programs and other school-affiliated events.