To Purchase Esencia K-8 School Site Land for $34 million rather than the projected $21 million

CUSD February 22, 2017 BOT meeting agenda Item #10 RESOLUTION NO. 1617-56, Ratification of Agreement to Purchase the Escencia School Site and Delegation to Accept the Deed. page 252

The Item was pulled from the meeting and will be discussed at a Special Board meeting scheduled for March 15, 2016.

The proposed scope and cost of the land for Escencia was projected to be $21 million for 14 acres - $1.5 million per acre.

The Board is being asked to approve a purchase price of $33.86 million for 14 acres - $2.42 million per acre.

The CUSD Apraisal of this land was completed in October 2016 and Trustees received the Appraisal in this Board packet. Staff did not provide Trustees with an opportunity to review the proposal prior to this Board Meeting. The Appraisal was not made public by CUSD and was not added to this Agenda item because of potential Brown Act Violations.

Members of the Public have filed a Complaint with the District Attorney's Real Estate Fraud Division.

Conclusions:

The price of the land must be re-negotiated.

Staff placed this Item on the Consent Calendar without disclsoing the price.

Clark Hampton executed this agreement on January 19, 2017 WITHOUT BOARD APPROVAL.

The Attorney for CUSD signed the agreement with an X and is unidentifiable.

Mello Roos Taxpayers in Ladera Ranch and Talega are being denied seats at SJH and Tesoro so that Ranch students can be given priority at Las Flores K-8 and Tesorro.

A March 2016 capacity study shows that CUSD is 8,555 students over legal capacity (before providing seats to any Ranch studnts).

PA1 and PA2 are projected to generate 1,119 students between now and 2018 who will have no seat.

Esencia K-8 is a dirt lot.

High Schools are over capacity by 5,235.

CUSD needs to build a new $200 million dollar High School to serve the Ranch.

The State is no longer helping to fund new facilities.

The Ranch is projected to add a minimum of 5,000 students to CUSD when it is completely built out which was originally suppose to take 25 - 30 years. The time line is moving much more quickly. PA1 and PA2 are almost complete and Permits for PA3 and PA4 are in planning.

Supporting Documentation:

CUSDWatch Press Release and Letter to the Public
Background
Agreement for Purchase and Sale and Escrow Instructions (PA2 School Site)
Appraisal - Proposed School Site Rancho Mission Viejo Planning Area 2
Number of Dwelling Units Planning Area 1 Sendero
Number of Dwelling Units Planning Area 2 Esencia
Student Generation Rates
Conclusions
2013 School Facilities Finance Agreement between Rancho Mission Viejo and CUSD November 6, 2013 BOT Meeting Agenda Item #1 page 1