Eureka Springs School Board gathered Tuesday morning with attorney Kristi Kendrick in the next step of negotiating a lease for the old high school property. Wade Williams, attorney for the Community Center Foundation in the lease negotiations, had forwarded a list of 29 objections he had with the lease Kendrick prepared, so Kendrick and board members went through it item by item.
Kendrick stated it is important in lease negotiations to clarify the rules are and anticipate issues that might occur. She acknowledged she did not fully understand some of Williams’s objections, but following the board discussion she would prepare a response and arrange to meet with him.
Legal questions arose about the district’s position as owner of property it leases. For example, after the lease is in effect and the Foundation takes possession, can there be a wine and cheese event on the property? It would still be school district property where alcohol is not allowed.
If lease fees were overdue and late fees imposed, would they count toward paying down the purchase price? Also, what if the Foundation were to leave early for whatever reason? Kendrick said Williams wanted the Foundation to be able to leave it in the condition it is now. Board member Gayla Wolfinbarger preferred the property be delivered in better condition. Everyone agreed some particulars in the language were negotiable, but Wolfinbarger pointed out this arrangement is more complicated than a simple sale.
Board president Chris McClung suggested improvements in the section dealing with insurance for property damage, and cited appropriate language for Kendrick to include in the revised lease. He noted the Foundation might not be able to get replacement cost insurance without paying a higher rate.
Other points needing clarification including who has responsibility for what once the lease is in effect, and what supervision the district should have on future projects on the property. Wolfinbarger insisted, “The lease should not compromise the schools.” Al Larson added it was in the district’s best interest to “make this doable” so the district could get out from under the burden of maintaining the property.
School board member Debbie Davis pointed out several times that the board needed more information from the State regarding legal issues about a school district as a landlord, and Supt. Bryan Pruitt took on that assignment. Kendrick said she would prepare a response to Williams and find a time to meet with him.
“We have to make sure public interests are protected,” Davis commented as the meeting adjourned.