Here are the highlights of the sale of Maplewood Grade School in Cary from School Board President Scott Coffey:
Maplewood School Sold
The property is located downtown about 800 feet from the train station.
The school was closed in 2010, but the district still utilizes a portion of the property for it transportation operations.
The Board’s intent, since its closure, has always been to get the property onto the tax rolls.
Currently, the district spends roughly $75K per year at Maplewood for ongoing maintenance, repairs, vandalism, utilities, etc.
If the district were to demolish the building itself, it would cost around $750K for demo work/asbestos abatement/etc. plus construction costs to bring utilities directly to the remaining transportation office and maintenance garage.
The $2.5 million in proceeds will be used to build a replacement transportation center on another district property.
The key to the transaction is the incremental property tax revenue generated by the new development.
I would anticipate that revenue to be recognized by all relevant taxing bodies to be roughly $600K to $700K annually.
The D-26 portion would be about $200K-$250K per year, assuming the Board captures the new growth in its levy.
Combining the incremental property tax revenue along with the elimination of the current maintenance costs and some bus fuel savings from operating from a new location, the district is looking at a favorable impact to its annual operating budget of over $300K annually.
Given the future financial pressures I expect to continue to come from the State on school funding, increased pension costs, levy freezes, etc., this favorable impact may provide future Boards with the flexibility to more effectively respond to these financial pressures.