At Thursday night's Board of Education meeting the choice was made to explore the direction of selling the old middle school property to Cohen-Esrey Affordable Partners.
The offer presented to the school district is $250,000 for the purchase of the property. In total the developer’s project will cost $7.5 million. $5.5 million of that will be for construction costs.
In a memo to the district from Jeff Beckham, Cohen-Esrey Development partner, earlier in the week, a “good portion” of the $5.5 million would go back into the community through the purchase of materials and local sub-contracting.
Cohen-Esrey, a Kansas City-based developer specializing in “affordable workforce and senior rental housing” will be getting a $7 million tax credit equity for the development.
Beckham attended the meeting Thursday to answer any questions from the board and talk out some of the concerns heard from members of the community.
The first concern brought to the table was how much of the property was being pursued. Beckham said Cohen-Esrey would own the entire plot of land that was surveyed to the back of the parking lot. Cohen-Esrey would not be interested at all in leasing the parking to allow the community members who attend tennis matches and football games a place to park while those events take place. Beckham said there has to be a place for the tenants of a building to park. Board member David Peck told Beckham that patrons to those sporting events will park there no matter what.
“What I’m looking at,” Peck said, “is what I’d hate to see is someone get a hold of it and close it off where people couldn’t get to it.”
Beckham assured the board that the parking lot would not be gated off in any way.
“We can look into setting aside some spaces but we’ll own it,” Beckham said.
The topic of space for buses to pull up during sporting contests was another questions posed by the board. Beckham said that he could not foresee any problem with that.
“What we’ll probably end up doing is pick the spots closest to the building since this is going to be a senior living facility and portioning them off for tenants,” Beckham explained. “The theatre group is still going to be using it, the Rec facility is looking to be there…”
He continued to stress tenant parking would be closest to the building.
“Whatever is left over, I don’t want to say it will be public parking,” Beckham said. “But it will be open to others who are using the facility.”
If the board approves the sale of the property, Cohen-Esrey will submit an application for the tax credit in August. Tax credit reservation normally takes place three months after the application is submitted.
“Realistically what we’re going to want to do is probably have a two year contract on the building,” Beckham said. “Because the upfront cost and expense is excessive, to be totally honest. So we’re going to want, just in case we don’t get it in the first round…to be able to come around a year from now and re-apply.”
Beckham pointed out that if the application is denied the first time, it is sent back with a critique so the next application has a much better chance of going through in next application window next February. In 18 months, Cohen-Esrey would have the deal closed no matter what.
“We just want to give ourselves a little bit of buffer,” Beckham said Thursday. “Realistically think about it this way, two years from now if the unthinkable happens and we can’t close you’re really no worse off than you are right now.”
Board Vice President David Peck then presented a "worse off" scenario.
“The only way I see that we would be worse off is if you wait two years and another group wants in there now, and they would move on. There wouldn’t be anybody there that would be able to use the building," Peck said. "That’s where you would be worse off.”
Beckham said that the district would not find anyone else with interest in the property.
“Long story short, these are bought by corporations, banks, and very, very wealthy individuals that have income to offset, that pool of investors is becoming smaller and smaller," Beckham said. “...Nobody wants to come into rural Kansas and buy tax credits for a small development and a small town in southern Kansas.”
Beckham said Cohen-Esrey is “literally one of a handful” in the country that do this and are still able to do this. In Cohen-Esrey's planning, they have encompassed the needs of the organizations that currently use the facility for various activities.
“We’re actually taking on considerable additional expense in renovation to make sure it’s still available for the Rec department, theater department and hopefully the local historical society at no cost to any of the three," Beckham assured.
Helen White, President of the Wellington Community Theatre Department said she had not spoken with Beckham but feels comfortable with what Cohen-Esrey's plan.
WIlliam Weber from the Wellington Recreation Commission was in attendance Thursday but only as an observer to take back information to the WRC board meeting later this month.
School district access to the building, while it’s under contract, would not be impeded. Board member Philip Weakly asked if there was a point where the district would be shut out of the building, Beckham said that it wouldn’t be for an extended period of time. Board President Benny Ybarra brought up the price offered by Cohen-Esrey and inquired if it was negotiable.
“Every dollar I give to you I take from someplace else,” Beckham responded. “We can look at it but if you come back to me with a $1 million I’m going to go up to El Dorado and get the building I want up there.”
Beckham told the Board of Education if something isn't decided upon by the end of March he is going to move on. After Beckham left the board determined all of their options with the building. One, leave the building as is, two put it on the market to see if there is any other interest.
“The other option is to go with Cohen-Esrey, the other options is give it to the Rec center,” Peck said. “So those are basically four options.”
At this time the board discussed what they have been hearing from constituents.
Board member Marie Cornejo said she is hearing the opinion to sell along with advocates for WRC. She said selling the building is short-term thinking.
“I realize it’s money in our pocket right now but it’s still just $250,000,” Cornejo said. “…We’re about to get cut $800,000. It’s quick money now, but long term thinking…”
She said a new Rec center would provide a positive place for students to go and dissuade them from making bad decisions. Cornejo went on to say that a new Rec center might not be cash on hand for the school district but the positives might be worth more than money.
“If we do sell it, that still ain’t going to stop the Rec they’re going to find a place to do what they need to do," board member Bob White said. "That’s they’re mission, they’re going to fulfill it.”
After further discussion, White made the motion to explore the sell of the old junior high building, the motion passed 5-1.
“Being on main street every day all day long I’ve heard a lot about this issue” White said. “And every one of them was ‘sell it, take the money, you guys need it because the state isn’t giving any.’”
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At Thursday night's Board of Education meeting the choice was made to explore the direction of selling the old middle school property to Cohen-Esrey Affordable Partners.
The offer presented to the school district is $250,000 for the purchase of the property. In total the developer’s project will cost $7.5 million. $5.5 million of that will be for construction costs.
In a memo to the district from Jeff Beckham, Cohen-Esrey Development partner, earlier in the week, a “good portion” of the $5.5 million would go back into the community through the purchase of materials and local sub-contracting.
Cohen-Esrey, a Kansas City-based developer specializing in “affordable workforce and senior rental housing” will be getting a $7 million tax credit equity for the development.
Beckham attended the meeting Thursday to answer any questions from the board and talk out some of the concerns heard from members of the community.
The first concern brought to the table was how much of the property was being pursued. Beckham said Cohen-Esrey would own the entire plot of land that was surveyed to the back of the parking lot. Cohen-Esrey would not be interested at all in leasing the parking to allow the community members who attend tennis matches and football games a place to park while those events take place. Beckham said there has to be a place for the tenants of a building to park. Board member David Peck told Beckham that patrons to those sporting events will park there no matter what.
“What I’m looking at,” Peck said, “is what I’d hate to see is someone get a hold of it and close it off where people couldn’t get to it.”
Beckham assured the board that the parking lot would not be gated off in any way.
“We can look into setting aside some spaces but we’ll own it,” Beckham said.
The topic of space for buses to pull up during sporting contests was another questions posed by the board. Beckham said that he could not foresee any problem with that.
“What we’ll probably end up doing is pick the spots closest to the building since this is going to be a senior living facility and portioning them off for tenants,” Beckham explained. “The theatre group is still going to be using it, the Rec facility is looking to be there…”
He continued to stress tenant parking would be closest to the building.
“Whatever is left over, I don’t want to say it will be public parking,” Beckham said. “But it will be open to others who are using the facility.”
If the board approves the sale of the property, Cohen-Esrey will submit an application for the tax credit in August. Tax credit reservation normally takes place three months after the application is submitted.
“Realistically what we’re going to want to do is probably have a two year contract on the building,” Beckham said. “Because the upfront cost and expense is excessive, to be totally honest. So we’re going to want, just in case we don’t get it in the first round…to be able to come around a year from now and re-apply.”
Beckham pointed out that if the application is denied the first time, it is sent back with a critique so the next application has a much better chance of going through in next application window next February. In 18 months, Cohen-Esrey would have the deal closed no matter what.
“We just want to give ourselves a little bit of buffer,” Beckham said Thursday. “Realistically think about it this way, two years from now if the unthinkable happens and we can’t close you’re really no worse off than you are right now.”
Board Vice President David Peck then presented a "worse off" scenario.
“The only way I see that we would be worse off is if you wait two years and another group wants in there now, and they would move on. There wouldn’t be anybody there that would be able to use the building," Peck said. "That’s where you would be worse off.”
Beckham said that the district would not find anyone else with interest in the property.
“Long story short, these are bought by corporations, banks, and very, very wealthy individuals that have income to offset, that pool of investors is becoming smaller and smaller," Beckham said. “...Nobody wants to come into rural Kansas and buy tax credits for a small development and a small town in southern Kansas.”
Beckham said Cohen-Esrey is “literally one of a handful” in the country that do this and are still able to do this. In Cohen-Esrey's planning, they have encompassed the needs of the organizations that currently use the facility for various activities.
“We’re actually taking on considerable additional expense in renovation to make sure it’s still available for the Rec department, theater department and hopefully the local historical society at no cost to any of the three," Beckham assured.
Helen White, President of the Wellington Community Theatre Department said she had not spoken with Beckham but feels comfortable with what Cohen-Esrey's plan.
WIlliam Weber from the Wellington Recreation Commission was in attendance Thursday but only as an observer to take back information to the WRC board meeting later this month.
School district access to the building, while it’s under contract, would not be impeded. Board member Philip Weakly asked if there was a point where the district would be shut out of the building, Beckham said that it wouldn’t be for an extended period of time. Board President Benny Ybarra brought up the price offered by Cohen-Esrey and inquired if it was negotiable.
“Every dollar I give to you I take from someplace else,” Beckham responded. “We can look at it but if you come back to me with a $1 million I’m going to go up to El Dorado and get the building I want up there.”
Beckham told the Board of Education if something isn't decided upon by the end of March he is going to move on. After Beckham left the board determined all of their options with the building. One, leave the building as is, two put it on the market to see if there is any other interest.
“The other option is to go with Cohen-Esrey, the other options is give it to the Rec center,” Peck said. “So those are basically four options.”
At this time the board discussed what they have been hearing from constituents.
Board member Marie Cornejo said she is hearing the opinion to sell along with advocates for WRC. She said selling the building is short-term thinking.
“I realize it’s money in our pocket right now but it’s still just $250,000,” Cornejo said. “…We’re about to get cut $800,000. It’s quick money now, but long term thinking…”
She said a new Rec center would provide a positive place for students to go and dissuade them from making bad decisions. Cornejo went on to say that a new Rec center might not be cash on hand for the school district but the positives might be worth more than money.
“If we do sell it, that still ain’t going to stop the Rec they’re going to find a place to do what they need to do," board member Bob White said. "That’s they’re mission, they’re going to fulfill it.”
After further discussion, White made the motion to explore the sell of the old junior high building, the motion passed 5-1.
“Being on main street every day all day long I’ve heard a lot about this issue” White said. “And every one of them was ‘sell it, take the money, you guys need it because the state isn’t giving any.’”
