District ready to approve lease-purchase agreement despite upside-down numbers
Here's what you can expect in the yet-to-be-posted agenda for the Thursday, May 8, WJUSD Board of Trustee's meeting:
Item I. Board Action 1-B Approve Lease Agreement with Option to Purchase for property located at 435 Sixth Street, Woodland, CA (Parcel No. 006-122-07) [a.k.a. the Blue Shield building].
Under this item, yet another district stooge might present to the trustees a cardboard box filled with lame props. This time, however, it won't be rubber balls or antiquated slides as part of the amateurish sideshow. It will be a foolish display of numbers that will leave all reasonable citizens shaking their heads. The only ones applauding the presentation orchestrated by the jester (a.k.a. superintendent Jacki Cottingim) will be a small band of irrational marionettes (a.k.a. trustees Carol Souza Cole, Bill Beerman, Rosario Ruiz-Dark and Elaine Lytle).
Proponents Souza Cole, Beerman, Ruiz-Dark, Lytle and Cottingim will finally get their magical castle after more than a year of smoke-and-mirrors. They will take advantage of the expected absence of trustee Warren Berg, one of the three opponents of the lease-purchase agreement. Please note the recent strategic delays of the item caused by proponent absences.
Frank Glover and Rogelio Villagrana are the other trustees who oppose the lease-purchase agreement. When you see the numbers culled from the contract, you will see why:
Assessed valuations of the property: $3,609,056
Purchase price of property in First Option Period: $5,430,000 (Base Price)
Period ends on January 1, 2009 or city certification of occupancy, whichever occurs earlier
Purchase price of property in Second Option Period: $7,670,000 (Base Price plus Total Project Costs - Tenant Improvement Costs of $2 million and Leasing Commission of $240,000) plus any prepayment penalties.
Period includes three years following expiration of First Option Period.
Purchase price of property in Third Option Period: $7,670,000 (Base Price plus Total Project Costs)
Period includes 90 days following expiration of Second Option Period.
Purchase price of property in Fourth Option Period: $8,670,000 (Base Price plus Total Project Costs plus an additional amount of $1 million)
Period includes four years plus 90 days following the expiration of Third Option Period.
Tenant improvement costs financed by owner: $2,000,000
Leasing commission reimbursed to owner through rent: $240,000
Security deposit paid to owner: $250,000
Rent: Lease years - annual rent (monthly rent)
1 - $445,000 ($37,083 monthly)
2 - $458,300 ($38,192)
3 - $472,101 ($39,342)
4 - $508,586 ($42,382)
5 - $523,844 ($43,654)
6 and 7 - $539,559 ($44,963)
8 to 12 - $581,131 ($48,428)
13 to 17 - $673,691 ($56,141)
18 to 22 - $780,992 ($65,083)
23 to 27 -$905,384 ($75,449)
28 to 30 - $1,018,424 ($84,869)
Yes, you've figured correctly. The term of the lease shall be for thirty years. It will commence on July 1, 2008. The current lease of the Cottonwood building, present home of the district offices, is about $234,000 a year. Owners of the building previously stated that they would have extended the current lease if the district had requested it.
Information added on Sunday, May 4, 2008:
Cottonwood Plaza square footage: 30,000
Blue Shield square footage: 40,000 (133%)
Approximate full time employees at district in 2008: 88
District estimation of needed employees in 2015: 111 (126%)
Comparison: Turlock's population is 69,321, about what Woodland will be after the Springlake build-out. Their student enrollment is 13,944. They have 44.1 FTE admins (Per Pupil: 316.2) and 42.9 FTE Pupil Service staff (Per Pupil: 307.3). That's 87 FTEs in the district office. Currently, WJUSD has about 48.1 (Per Pupil: 222.2) and 39.6 FTE Pupil Service staff (Per Pupil: 269.9). That's 87.7 FTEs in the district office. Turlock serves over 3,000 more students with the same amount of district office staff.
Posts
27 comments:
Keep renting and save us taxpayers from footing the bill for this boondoggle. Woodland's public schools are not educating children properly. The rigorous academic purpose has been lost.
Sound like a great deal for seller/leasor but bad deal for taxpayer. Great job Board
I honestly cannot believe that (4) FOUR Board members are
DIS-Honest.....only PATHETICALLY STUPID, INEPT... AND TOTALLY UNQUALIFIED TO BE "TRUSTEES."
.......GOD HELP US !!!!
Please note the Information added to the original story:
Cottonwood Plaza square footage: 30,000
Blue Shield square footage: 40,000 (133%)
Approximate full time employees at district in 2008: 88
District estimation of needed employees in 2015: 111 (126%)
Comparison: Turlock's population is 69,321, about what Woodland will be after the Springlake build-out. Their student enrollment is 13,944. They have 44.1 FTE admins (Per Pupil: 316.2) and 42.9 FTE Pupil Service staff (Per Pupil: 307.3). That's 87 FTEs in the district office. Currently, WJUSD has about 48.1 (Per Pupil: 222.2) and 39.6 FTE Pupil Service staff (Per Pupil: 269.9). That's 87.7 FTEs in the district office. Turlock serves over 3,000 more students with the same amount of district office staff.
A typical example when you have people who want something and do not have the common sense to walk away.
Who are they trustees for?
Blue Ice, Inc.
This deal has Tom Stallard written all over it.
I was thinking Matt Rexroad...
9:16
That's funny how you mention common sense and then throw a name in the air to see if it will stick.
This deal looks like it is totally weighted for the owners.
And Dino, you need to do some more investigating to see whom is involved in this deal...
Not throwing names in the air, buddy.
If they pass this thing, the recall will be assured.
There is no reason to approve this purchase at this time.None.
They are giving away everything to the owners.
Dino, Can you post the contract as a PDF link?
6:52 "buddy"
If you're not throwing names in the air, how did you connect Tom Stallard with this deal? It is you... buddy... who needs to do some investigation. If you've been following this blog site, you would know who the players are.
10:08
We're working on posting the contract that was provided to me as a hard copy. The 20 something pages need to be scanned.
We need to contact each of the irrational marionettes and ask them a few questions. Here is their contact information collected from the School District website.
Every person has a responsibility to ask the Trustees to do their diligence on this agreement.
Please ask them to explain the logic being used in this agreement.
What good business sense is it to leave the future generations a debt load that is not affordable?
Why is a new office building more important than our school children?
Call the following members:
Carol Souza Cole, President
Home Phone: 666-2070
Bill Beermann, Vice President
Home Phone: 662-0201, Ext. 4323
Rosario Ruiz-Dark, Clerk
Home Phone: 668-4156
Elaine Lytle, Member
Home Phone: 735-6584
Join in the inquiry of this grossly negligent move that is being orchestrated by the jester herself. Make these Trustees understand that they need to do the right thing as an elected PUBLIC official.
Tell them to "be an individual and VOTE NO!"
This agreement is worse than the what they were agreeing to before.
Why are they not waiting until the grand jury comes back with their findings?
I DOUBT WHETHER ALL TRUSTEES DID READ, OR ATTEMPTED TO UNDERSTAND THE CONTRACT THEY (FOUR) APPROVED ON DEC. 13, 2007. WHEN LATER, WEEKS LATER, THE CONTRACT WAS MADE AVAILABLE TO AND QUESTIONED BY THE PUBLIC, IT WAS EVIDENT THAT (THE FABULOUS) FOUR WERE NOT AWARE OF A FUNDAMENTAL FLAW IN THE CONTRACT.
REMEMBER "EMINENT DOMAIN" AND THE FUROR-PANIC IT CAUSED TO THE SELLER, CONSULTANT, ATTORNEY AND STAFF? THEY COULD NOT, DID NOT, EXPLAIN IT'S INCLUSION IN THE CONTRACT, DESPITE THE UNANIMOUS INTENTION OF THE BOARD THAT EMINENT DOMAIN WAS NOT TO BE CONSIDERED. THAT FACT...WAS MADE ABUNDANTLY CLEAR DURING THE PUBLIC DISCUSSIONS.
PLAUDITS TO GLOVER,BERG AND VILLAGRANA WHO WERE ALERT, CAUGHT THE ERROR, BUT THE FOUR OTHERS BLANDLY BREEZED THRU...IF THEY READ THE CONTRACT AT ALL. EVERYTHING WAS "HUNKY-DORY" TO THEM.
THIS 30-YEAR CONTRACT DEMANDS MORE THAN A "GLANCE". THE PUBLIC FULLY EXECTS ALL TRUSTEES TO READ...AND
THOUROUGHLY COMPREHEND ....THE LONG-TERM CONSEQUENCES OF THIS ONEROUS CONTRACT THAT WILL BE A
CRIPPLING FINANCIAL BURDEN ON
FUTURE SCHOOL BOARDS...FOR YEARS INTO THE FUTURE,... LONG AFTER THE "AYE" TRUSTEES FADE FROM
THE SCENE.
THE ABOVE COMMENTS WEERE WRITTEN BY DUDLEY HOLMAN
Yea, nice "all caps" diatribe, Dud. So like you to "yell" your way even through a posting. Get a life.
Anon 3:44
Typical ditto head remark from those that have tried to defend these four idiots.
You scold the messenger and never address the actual content. You are pathetic and need to get a life.
The four trustees that voted had no clue what they approved. I am willing to bet they do do have all the information this time around either.
No one is defending the "four" as you so creatively dub them. I was simply making a point about Dudley and his endless campaigns. Unlike you, I've seen his road show before. Still, you stay in the flock there 'lil sheepie. Baaaaa! Baaaa!
Or has he pulled the wool over your eyes?
Keep it up Dudley the fool must be one of the fab 4. They dont have a clue of what is now coming with this lease. look really hard at this scamof a deal. the district is taking all the risk and who ever are the owner WHICH YOU WILL NEVER FIND OUT WHO THEIR ARE? HAS ALL TO GAIN AND NOTHING TO LOSE.
To "Anonymous 5/8/08 6:05 p.m."
.....from Dudley Holman.
Apparently you don't like caps. so I will humor you with "small" talk.
The highlights of the proposed Lease Contract are available on The Woodland Journal above.
You really must read it!!!
After a careful reading, perhaps you will be good enough to inform all of us, which, if any, of the cost items you believe this district can afford and should be retained in the finished contract.
In this time of shrinking budgets, please be a good guy/gal and tell us where the lease
payments will come from.....up to
one million dollars per year.
Perhaps you will make a generous contribution to avert a plight similar to the Davis School Dist. which is now contemplating the
lay-off of up to 100 teachers.
Possibly, just possibly, the Woodland District should postpone any long-term real estate committments until there is a clearer picture of the financial future for our School District.
Have you ever heard the
expression.....
....LOOK BEFORE YOU LEAP.....
(My apology for the Caps.....
NOT meant to irritate you)
P.S. I am not afraid to identify
my comments, what's your problem?
....Dudley Holman
But Dudley did you look at the over 2 mil in to fix the building the way the architects said they need. the owners are only willing to put up 2 mil ask them where they are going to come up with the rest????? or are tghey going to value engineer something out and then come back later and cost 2 to 3 times more money down the road because they will come back later and said the just have to have this in order to be more effective
8:36
The sellers aren't putting up the $2,000,000 for TIs. They are loaning it. That amount will be added to the sale price effective January 1, 2009, or when the city issues the certificate of occupancy - whichever occurs first.
Maybe the city can stop the whole deal by not issuing the certificate. Nah... that would take figs.
Call the fab 4 and ask them where the money is going to come from.
IF they purchase the building in the first couple of years, it will make the purchase price over $7.5M for a building with the assessed value of $3,609,056 (TI expenses will be incorporated)
Where will that money come from???
Worse yet, if there is a budget shortfall and the district can't afford the increased lease ( or they can and just cut more programs)
Blue Ice gets the increases value to their property ($2,000,000in TI) and the district pays them the full $2,000,000 cash, plus another $1,000,000 cash as a penalty.
Trustees my A$$!
If hey pass this you have a new chairperson for the recall. I can assure you I will get the signatures.
Also... what experts say that the building they now occupy is too contaminated to work in. If the owner is allowing them to continue the lease at the current rate, why leave?
It is time to place blame where it belongs. The Superintendent is pulling the wool over the eyes of these four and they cannot stand on their own feet and admit it.
Jacki - you need to resign your position so the WJUSD has a chance to recover before they go broke.
Dudley is foaming at the mouth again. When's the last time he was checked for rabies?
Anon:
You need to understand that this is far beyond Dudley Holman.
The trustees can accept that there are far more of us working on their exit than what you would like to portray.
We have simply been waiting for the last leaf to fall.
It has fallen and the recall will succeed.
Post a Comment