Proposed Purchase of a Used Building to Consolidate Administration Offices
Frequently Asked Questions:
Question: What would the building be used for?
Answer: The building would eventually consolidate staff from 4 scattered sites: the central office, Student Support Services, Business Operations/Purchasing (in a leased site), and some staff from Facilities Operations. This will increase communications and operational efficiency between departments that must work together on a daily basis. Purchase of a used building would provide the district with a long-term solution at almost half the cost of the 2007 proposal without impacting the general fund budget that supports staff salaries and education.
Question: How would this be funded?
Answer: No general fund/operating dollars would be used. The purchase would utilize $1 million in designated bond funds for administration facility expansion, as promised to voters. The remaining $2.7 million in costs would be financed for 20 years at a low interest rate of 2.9%, with costs paid for by existing tenant leases in the Freeman building, Excise Tax funds (restricted to property purchases and construction) and potentially, the eventual sale of the Lake Road building once it is vacated by district staff in two to five years. Existing leases in the building would generate around $30,000 per year in extra revenue for the next 2 to 5 years, funds which can be used in the district general fund during the economic downturn. Once the leases expire and the district moves into the building, the savings in operational costs through energy efficiencies and saved leasing expenses in another building would total $30,000 per year, also added operating funds. The purchase was supported by the district’s citizen budget committee and was recommended unanimously by the Citizens Oversight Committee, which oversees bond projects.
Question: Why is the district considering this?
Answer: This is an alternative to the 2007 plan to construct a 23,000 square foot replacement administrative building on the North Campus of Sabin-Schellenberg. That building would have cost $7 million. Other options considered were to add 20,000 square feet on to the existing Lake Road building at a cost of $4.4 million (including the elimination of green space for parking, and including significant costs for ADA improvements), to add a small building to the back of the Lake Road site for a cost of $1.9 million (an idea opposed by neighbors and the City of Milwaukie), or to do nothing, leaving the bond promise to voters unfulfilled and the needs for added space and consolidation unresolved.
Question: Why is this needed?
Answer: The current Lake Road site was built in 1967 when the district served 9,000 students. Currently NC12 is the state’s 5th largest district, serving 17,400 students. Because the current office is overcrowded and lacking adequate storage and core service areas, administrative staff are now scattered at several sites.
Question: How does the building on Freeman Way compare with the current administration building?
Answer: The Freeman Way building is 20 years newer and 17,000 square feet bigger. Because it is more energy efficient, and would consolidate several offices it would save the district $30,000 in reduced utility costs, maintenance costs, and leasing costs. It would also provide a larger Board Room that would allow increased public participation in School Board meetings. In addition, the site is ADA compliant and it has more parking, allowing improved access for community members and employees.
Question: Why can’t the administrative offices be moved into a school after elementary schools are consolidated?
Answer: Transforming an elementary school into office space would cost and estimated $2.2 - 2.7 million to renovate. Renovating a school into offices would also make it cost prohibitive to readily use the building for a school again in the future or to lease the building to a charter school for additional revenue.