Gladstone School District’s decision to purchase a transportation property was initiated by a change in the lease terms. The district has leased the transportation yard for decades, and due to a change in ownership, was only able to negotiate a 90-day renewable lease after July 1, 2024. This change, and the looming termination notice, created uncertainty about the future location of the bus barn.
Faced with this risk, the district explored alternatives, including developing existing district property next to the high school stadium. However, the costs of development and the need for a conditional use permit in an area next to residential neighborhoods made that option less viable. The district also researched moving all district transportation operations to another neighboring community, but this would have increased all driver route times by approximately two hours per day at a significant cost to the district.
Knowing that the district could leverage its investment with a 70% grant from the State School Fund Transportation Grant, when the opportunity to purchase the transportation yard property resurfaced, the district acted. We completed an appraisal, sought legal guidance due to changes in real estate laws, secured commercial real estate broker services and ultimately negotiated a purchase price of $1.825 million. To protect the district’s investment, inspections of the property’s major systems and structures are underway as part of the standard due diligence process.
The school board acted, voting unanimously in its September regular meeting to authorize Superintendent Jeremiah Patterson to complete the purchase, research and negotiate financing to replenish the fund balance, to be repaid over time through a combination of grant proceeds and annual general fund contributions. School board member Stacie Moncrief said part of the district’s fiscal responsibility is owning a property and not being at the whim of a landlord by having to lease a property.
“It was a very thorough process, and we weighed all the options,” Moncrief said.