February 16, 2016 at 6:28 p.m.

Path forward for schools is unclear

Editorial

If you want a legal opinion, ask a lawyer.
If you want conflicting legal opinions, ask two lawyers.
Consider the case of Jay Schools and South Adams Schools.
Both corporations have excess property — bare ground — they’d like to sell.
In Jay County’s case, it’s about 15 acres that longtime residents remember as the site of the old Beacon Drive-In, which closed about 1960. It’s just across a county road from Jay County High School.
In the case of South Adams, it’s almost five acres that used to be the site of Berne Elementary School and a playground. It’s right at a key intersection and happens to be just across the street from Meunsterberg Plaza and the Berne clocktower.
Two pieces of property couldn’t be more different.
The Jay site might, once upon a time, have attracted someone putting together a housing development. Its commercial purposes are limited because there’s no traffic light to slow things down at that intersection.
The South Adams site couldn’t be more prominent. It’s catty-cornered from Berne’s First Mennonite Church as well as being across from the clocktower. Any commercial development is going to have to be sensitive to architectural and community interests.
When a school corporation wants to dispose of unneeded real estate, the process works something like this: Two appraisals are sought. The two appraisals are averaged. That price is advertised for a specified period of time, and bids are opened. If there are no bids that total at least 90 percent of the appraisal, the property can be listed with a real estate agent. But this is where it gets a little confusing.
Legal advice for Jay County indicates that if the school corporation has given it a good try by getting appraisals and advertising, it can — in effect — put the property on the open market and hope to get the best price available.
But legal advice for South Adams says that even if the school corporation has gone through the same process, it has to receive no less than 90 percent of the average of the two appraisals.
The fact is, that after specifying the process for appraisals, advertising, and a bid process, the law is unclear about what to do next.
Do you stick with the original price? Or do you sell it for what you can get?
School boards want to maximize return for taxpayers, but at the same time they want to get the land sold.
Jay County’s situation seems pretty clear. There hasn’t been much interest in the old Beacon property, and any reasonable offer could be considered.
South Adams faces a tougher question precisely because the real estate is so prime, so ripe for development. As a result its appraisal is higher, and the stakes are higher both for the board and any potential developer.
For school corporations hoping to secure a little cash, the notion of selling off unwanted property seemed like a great idea.
Turns out, it’s not so simple. — J.R.
PORTLAND WEATHER

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