Letter to the Editor: Farmington Superintendent Disputes Eagle Claims

I am compelled to write this letter in hopes of correcting the misinformation that is circling in the community with regard to the sale of the former Eagle school located at the corner of 14 Mile and Middlebelt. Eagle is one of four schools that were closed at the end of the 2009- 2010 school year as part of the District downsizing and redistricting.

This past June, the Board of Education authorized the sale of this school property to the Islamic Cultural Association (ICA) at the conclusion of a very long board meeting which included a large amount of public comment. Following the decision, a lawsuit was filed by two area residents to challenge the sale and the matter was dismissed in favor of the school district. The plaintiff residents filed an appeal with the Michigan Court of Appeals, the first aspect of which was denied three days after it was filed, and the remainder of that matter is pending at this time.

We are fortunate to live in a country where our system of government provides open meetings for public bodies to conduct business in the open, and a legal system to provide a forum for challenging the actions of public bodies. This letter is not intended to take issue with the actions of our citizenry in exercising their rights. However, much of the information that is flowing from this issue is inaccurate and misleading. It is not important as to who is right or who is wrong. It is important because there is more than $1.3 million dollars at risk if the challenge to the Board procedure results in the loss of the sale. This equates to more than $110 per student in our school district, dollars that are much needed in the classroom to further the educational mission.

The recommendations presented by administration and subsequent action regarding the sale of Eagle followed our standard protocol for Board of Education consideration. Under this process, administration is initially responsible for researching an item (i.e., contracts, proposals, leases, purchase offers, etc.). When it is determined by administration that a recommendation warrants Board review, administration presents the item to the Board of Education at a study session meeting to allow for questions and input by the Board and the public. With few exceptions, the Board does not act on a recommendation at the same study session it is presented. The recommendation is then brought back to the Board at a future meeting for action. This is exactly what happened with the recommendation to sell Eagle Elementary to the Islamic Cultural Association.

The “word on the street” is that the sale of the property was done in secret and that the buyer was given some sort of favored treatment. The truth is that the ICA is the only purchaser to step forward and make a formal offer to purchase this property from the district. It is true that, six months to a year prior to the decision on Eagle, the district received several inquiries from real estate brokers wanting to list the property, and some of those callers claimed to have interested purchasers. The clear fact is that not one single offer of purchase for Eagle was brought forward either before, during, or following the decision to sell to the ICA. The ICA was not given favored treatment; they simply were the only buyer to bring forth a formal offer of purchase.

The initial offer from the ICA seemed low to the district administration, even in the current down market, so in order to insure that the district would receive a fair price, the district solicited a formal market appraisal for the site. When that appraisal was shared with the ICA, they increased their offer to match the appraised value, and have agreed to pay the real estate commission to its broker. Not only is the district receiving the appraised value, we are also avoiding more than $100,000 in costs to demolish the property. 

Another issue being raised in community conversations takes issue with the school district not listing the closed sites for sale. It is true that the school district never listed any of the sites for sale. However, the reason for this was driven by two overriding considerations: the undetermined future needs for school property and the economic marketplace for the land. Three of the four closed schools lie in residential neighborhoods that, in good times, would be ideal for residential development. The Eagle property lies on a busy commercial intersection and was viewed as competing with other commercial property in a market sinking under the weight of excess inventory.

The District did not list the property as actively for sale. The ICA is the only buyer to come forward with an offer of purchase. The sale price to the district exceeds market value when the avoided cost of demolition and broker fees are factored into consideration. If the sale to the ICA fails to close, the school district will lose more than $1 million dollars in revenue, will have a school site to maintain or demolish, and there are no other buyers knocking at the door. The sale of this property is a fiscally sound decision and benefits those who need it most; our students.

The following chronology tracks the activity as it unfolded surrounding the closing of the Eagle school and the subsequent purchase agreement with the ICA.

February 24, 2010 - Board of Education approved the closing of 5 sites (4 schools & MTC)

April 20, 2010 - Board closed session with attorney Amanda Van Dusen to review the written legal opinion regarding the dynamics of property disposition

December 7, 2010 - Board of Education Building and Site/Safety Committee meeting to discuss the future of the sites (Disposition of Closed Sites) – see meeting minutes at
http://www.farmington.k12.mi.us/district/board/minutes/1011/

January 11, 2011 - Board of Education authorizes Administration to solicit bids for demolition

January 13, 2011 - District Administration received unsolicited initial offer of purchase from ICA for Eagle property

February 1, 2011 - Appraisal of Eagle property prepared reflecting $1,100,000 market value

April 12, 2011 - Board of Education approved contracts for demolition of 4 elementary school buildings, specifically excluding Eagle from that approval

May 11, 2011 - District Administration receives formal offer to purchase from ICA for the Eagle property reflecting a purchase price equal to the value stated in the February 1, 2011 appraisal ($1,100,000)

May 12, 2011 - Formal Offer to purchase distributed to the Board of Education

May 24, 2011 - Offer to Purchase publicly discussed as part of the Board of Education agenda

June 14, 2011 - Board of Education approves Agreement for Purchase