ANALYSIS OF CURRENT AND ALTERNATIVE SITES FOR NEW

HIGH SCHOOL

JULY 9, 2018

Analysis of Current & Alternative Sites ...........................................................................................................................................2

Current Site: 16th and Henry........................................................................................................................................................2

Alternative Sites 1: Sprague/Henry/Country Vista; Land South of I-90 .......................................................................................4

Alternative Sites 2: Land North of I-90 .........................................................................................................................................5

Acquisition & Sale of Property ........................................................................................................................................................7

Selling Real Property – Steps ........................................................................................................................................................7

Board Policy 6882 .........................................................................................................................................................................8

Board Policy 6905 .........................................................................................................................................................................9

Vendor/Contractor Qualifications................................................................................................................................................ 10

J-U-B Engineers .......................................................................................................................................................................... 10

Mike Livingston, Broker, Kiemle Hagood .................................................................................................................................. 10

pg. 2

Analysis of Current & Alternative Sites

Current Site: 16th and Henry

In December 1980, the Central Valley School District (District) purchased nearly fifty acres (48.92 ac) of undeveloped property with the intention to use the site for a future third comprehensive high school. The site, known by the District as the “16th and Henry” property, has been leased for agricultural use for the last 37 years.

In 2009, prior to spending time and money on a request to include this parcel inside the Urban Growth Area Boundary (UGA) the District evaluated several properties that were potentially suitable for a new 1,600 student comprehensive high school. An analysis of the available properties indicates that:

1. The cost of acquiring new property was high. 2. Each of the sites evaluated had challenges that had to be mitigated. 3. The willingness of property owners to sell was limited. 4. There are limited sites in the appropriate geographic area that are the size needed for a comprehensive high

school. 5. Development and code restrictions limited school siting on many properties.

After this analysis, in 2010 the District requested Spokane County add the 16th and Henry site to the Urban Growth Area and in 2012 that request was granted through the public process established by Spokane County. This public process included accepting public comment at multiple public hearings. The 16th and Henry site is currently in the UGA and is zoned Low Density Residential (LDR).

Since that time, the District conducted several studies of the site. The first study determined that there were no active streams or wetlands that would impact developing this site. Further, a geotechnical study was conducted on the site to determine soil types and suitability to build on this site. One of the limits that we understood with this site is the sloping that occurs on the southern property line. This limitation was identified as part of the geotechnical report. Copies of these reports are available online at www.cvsd.org.

In 2017, the District acquired ten additional acres contiguous to the north side of this site. This allows us to shift structures to the north and mitigate any concerns of sloping.

If the 16th and Henry site is determined by the Board to ultimately be the site of the new third comprehensive high school, the Central Valley School District will apply to Spokane County for a Conditional Use Permit (CUP). To obtain a CUP the District will need to complete a traffic study as well as a SEPA Environmental Review. This information will be presented to the Spokane County Hearing Officer in an established public process.

Lastly, in collaboration with Spokane County, the District will develop an Interpretive Center and trails that open this area for greater educational and recreational opportunities. This agreement and collaboration includes sharing parking, building costs, and operational costs of this facility. The Interpretive Center will be a community use facility that is open to community groups that want to explore the Saltese Wetlands and the Conservation Futures’ Saltese Uplands Conservation Area to the east.

As part of this analysis, we have commissioned J-U-B Engineers (see page 10) to estimate off-site costs for this site. The cost analysis follows.

pg. 3

“16th & Henry” Site Map

pg. 4

Alternative Sites 1: Sprague/Henry/Country Vista; Land South of I-90

In March 2017, the Central Valley School District purchased 42.2 acres of property just north of the Henry and Sprague intersection. The property was purchased to secure right-of-way for road improvements needed for the 16th and Henry site and for a future elementary school site.

We understand that this site is limited by a main natural gas transmission pipeline through the eastern third of the site and the presence of the Spokane Gun Club located a short distance to the west of the site. The shape of the site also limits the possible layouts of a high school. Further the 42.2 acres is not large enough and we would need to acquire more property to the north. One option includes the purchase of 37 acres of parcel C and a second option includes the purchase of 20 acres of parcel C. The estimated cost of purchasing that property is between $2.00 and $3.00 per square foot. Total cost estimate for 20 acres $1.7 million to $2.6 million. Total cost estimate for 37 acres $4.5 million to $5.0 million.

Site Option A is inside the City of Liberty Lake and is zoned for all school uses. The school district would need to complete a traffic study and a SEPA Environmental Review but would not need to apply for a Conditional Use Permit (CUP).

A portion of Site Option B is located in Spokane County and that portion is zoned Light Industrial and would require a CUP.

Sites South of I-90

pg. 5

Alternative Sites 2: Land North of I-90

The Central Valley School District (District) has retained Mike Livingston a Commercial Real Estate Broker with Kiemle Hagood (see page 10) to represent us in the sale and purchase of real property. Mr. Livingston recently represented the District in the purchase of 15 acres in the Telido Station area of the City of Liberty Lake. The narrative below is the work of his investigation coupled with our real time experience.

Sites north of the freeway have been evaluated on a per square foot cost basis. The District has very recent experience in purchasing land in this area for our new middle school (map attached). This parcel was purchased for $3.75 per square foot. To purchase a 60 acre site in this area would cost approximately $9.8 million dollars. Land costs have most certainly increased since our middle school purchased in 2018 at the 2016 appraised value therefore cost are most likely higher than that estimate. Furthermore, commercial real estate in this area that is closer to the freeway is more likely to be in the range of $6-$8 a square foot.

There is a 32 acre parcel of land owned by the Department of Natural Resources (DNR) in the eastern portion of this region (map attached) and this parcel is not big enough to site a comprehensive high school. Furthermore, land adjacent to this parcel is being sold at $5-$6 a square foot. The DNR site is further complicated by the fact that the Henry Road overpass will land either on or adjacent to this property. The overpass is expected to be expanded to an interchange in the future. Cost for a 60 acre parcel in this region is estimated at $13,068,000.

Sites North of I-90

pg. 6

pg. 7

Acquisition & Sale of Property

Selling Real Property – Steps Pursuant to RCW 28A.335.120

1. School Board determines by resolution the property is no longer required for school purposes.

2. School Board selects and secures a market value appraisal by a professionally designated real estate appraiser or by a general real estate appraiser.

3. If the appraised property value exceeds $70,000, the District must publish a notice of the intention to sell at least 1x per week for at least 2 consecutive weeks in a newspaper of general circulation within the District. The notice must include the property description and must designate a date, time, and place for public hearing.

4. School Board holds a public hearing regarding proposal to sell property. School Board allows for public comment and discusses the pros and cons of the proposed sale.

NOTE: The notice of the intention to sell property referenced in ¶3 should run for at least 2 complete consecutive weeks before the school board holds a public hearing.

5. Following the public hearing, School Board determines if it is in the best interest of the District to sell the property and will set a minimum selling price. The minimum selling price cannot be less than 90 percent of the appraisal value unless the property has been on the market for one year. If the property has been on the market for one year, the minimum selling price cannot be less than 75 percent of the reappraisal value and must be approved by unanimous consent of the School Board.

6. Publish notice of intended sale in a newspaper of general circulation in the District.

NOTE: sale of real property may be facilitated through a real estate sales contract, by securing bids, or by using a licensed real estate broker (provided commissions are less than 7 percent).

7. The District cannot sell property for at least 45 days after notice of intended sale referenced in ¶6 is published.

8. The District will place the proceeds from the sale of property into the debt service fund or in the capital projects fund. Proceeds from the sale of property may be used to reimburse District funds for costs associated with the sale.

pg. 8

Board Policy 6882 Sale of Real Property

The board has exclusive control of the acquisition and disposal of all district property. This power will be exercised only when the board determines by resolution that such property is or is not necessary for school purposes. Once the board has considered all the factors, relating to a proposed sale of real property it will comply with all requirements of the law including:

A. A market value appraisal by a professionally designated real estate appraiser or by a general real estate appraiser certified under chapter 18.140 RCW, selected by the board will be secured;

B. No sale of real property is to take place if the sale price would be less than 90 percent of the appraisal made by the appraiser unless the property has been on the market for one year, in which case it may be sold for not less than 75 percent of the reappraised value if the sale is approved by the unanimous consent of the board;

C. If the appraised value exceeds $70,000, notice that such a sale is being considered is to be published in a newspaper of general circulation within the district for at least once each week during two consecutive weeks. The notice will describe the property and specify the date, time, and place of a public hearing scheduled to consider the property specified for sale. Evidence concerning the proposed sale, along with the advisability of selling the parcel, is to be taken into account by the board at such a hearing;

D. Bids may be secured or a licensed real estate broker may be engaged. If the latter, the commission will not exceed seven (7) percent of sale price. Any appraiser selected by the board to appraise the market value of a parcel of property may not be party to any contract with the district to sell the parcel for a period of three (3) years after the appraisal. No bid award will be made within a forty-five (45) day period following publication of notice of the intended sale in a newspaper of general circulation in the district.

Receipts from the sale of real property will be placed into the debt service fund or in the capital projects fund. Proceeds from the sale of the property may be used to reimburse district funds for costs associated with the sale. The reimbursements may be deposited back into the fund from which the sale-related expenditure occurred. Adoption Date 10-27-03 | Revision Date: 8-22-11 Legal References:

RCW 18.140 Certified real estate appraiser act

RCW 28A.335.090 Conveyance and acquisition of property-Management-Appraisal

RCW 28A.335.120 Real property-Sale-Notice and hearing-Appraisal-Broker or real estate appraiser services-Real estate sales contracts-Limitation

RCW 28A.335.130 Real property-Sale-Use of proceeds

RCW 39.33.010 Sale, exchange, transfer, lease of public property authorized-Section deemed alternative.

pg. 9

Board Policy 6905 Site Acquisition

The district shall attempt to acquire building sites substantially in advance of the actual need for construction of facilities in order to minimize delay in construction projects and to realize financial savings to the district. The board shall periodically review its inventory of land in light of growth trends in the district and local land-use restrictions, and make such transactions as it determines shall best meet the future needs of the district. Prior to any purchase of real estate, the district shall obtain a market value appraisal by a professionally designated real estate appraiser as defined in RCW 74.46.020. The board shall select the appraiser. In acquiring a new site, the board shall always first attempt to reach settlement with the owner through negotiations. Eminent domain proceedings shall be commenced if needed to avoid delay in the event of a negotiations breakdown. The district shall resort to condemnation only when it is obvious that negotiations shall not lead to an amicable settlement. The board shall acquire school sites or facilities only when it clearly contemplates using the property for school purposes. Adoption Date: 2-23-04 | Revision Date: 2-23-04 Legal References:

RCW 8.16 Eminent Domain by School Districts

RCW 28A.335.130 Real property – Sale – Use of proceeds

RCW 28A.335.090 Conveyance and acquisition of property – Management

RCW 74.46.020 Definitions

pg. 10

Vendor/Contractor Qualifications

J-U-B Engineers J-U-B Engineers was established in 1954 and has grown steadily to now consist of 16 offices in five states with over 330 employees. Our office in Spokane has served the region for over 25 years.

J-U-B has experts in Civil Engineering and the design of municipal infrastructure including water, sewer, storm water, site planning, transportation, and traffic studies. We also have specialists in Surveying as well as two subsidiaries: The Langdon Group that specializes in public involvement, mediation and facilitation, and Gateway Mapping that specializes in Geographic Information Systems.

We have performed traffic studies for many types of development large and small, including traffic studies for more than 25 schools. We have also been involved in site planning and many other aspects of school infrastructure for dozens of schools in our service area. J-U-B assisted the City of Spokane Valley in preparing the initial Street Master Plan and Street Standards and has provided annual support to the City for more than 10 years to maintain and monitor its transportation system.

Mike Livingston, Broker, Kiemle Hagood Mike Livingston is a Broker for Kiemle Hagood, one of Spokane’s largest property management and commercial real estate companies. Mike is a licensed REALTOR® specializing in office leasing and sales, industrial leasing and sales, and investment property disposition. Mike spent 13 years in the Bellevue, WA offices of Cushman & Wakefield. Prior to that, Mike worked for US West from 1980 to 1989 in the facility management field.

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