The former Freeman School on Dixboro Lane in Superior Township has not been used by the Ann Arbor Public Schools since about 1984, but district officials say the property brings in more revenue by renting, as opposed to selling.
Signage outside the Ann Arbor Public Schools' former Freeman School on Dixboro Lane. The property has been home to Go Like the Wind Montessori for more than 25 years.
Courtesy photo
The contract is for three years with one two-year renewal option. The new rate is $300,862 with a 3 percent increase each year. The new lease will start on July 1, 2014, with the renewal option to expire on June 30, 2019, said AAPS Executive Director of Physical Properties Randy Trent.
Trent said the Montessori school wanted to renew its lease early because it had some renovations it would like to make to the classrooms.
"We've done the maintenance part (at the property). They've paid for the renovations there. They've been a very good tenant. The property has been kept in good condition by us and by them over the years," Trent said at the April 24 school board meeting, during the first reading of the contract agreement. The second reading occurred Wednesday, followed later by a vote.
Freeman School is one of two pieces of property the Ann Arbor Public Schools owns but does not use. The second is 165.33 acres of vacant land in Missaukee County near Cadillac.
The district is attempting to sell this second property, which has been described as a "duck hunter's paradise," with some flat and rolling acres and a low-lying swamp. The total parcel was appraised and Re/Max currently has it listed at $165,000.
In light of the district's recent financial problems — a $3.8 million current-year deficit and an $8.67 million budget deficit for 2013-14 — selling the Dixboro property, or Freeman School, has been brought up at a number of community forums on the upcoming budget.
Trent said on April 24, the district did have the property appraised a number of years ago and at that time it was valued at about $600,000. If AAPS sold the property, it would generate the $600,000 in revenue once; whereas currently, AAPS makes $600,000 — and growing with 3 percent increases — on the property every two years. In five years, AAPS makes about $1.5 million.
Trent added there are other factors with the property that would make it difficult to sell and market as a school, let alone use as a school. He said it has a 225-student capacity and would required significant renovations and construction in order to accommodate the 300 to 400 students recommended for instruction and utilization effectiveness.
He estimated these renovations would cost about $5 million and require a minimum of a two-year planning and construction period, assuming the funding would be available.
There are 40 acres at the site that could be beneficial to the district down the road, Trent said, adding for these reasons it is best to continue to lease the property.
Danielle Arndt covers K-12 education for AnnArbor.com. Follow her on Twitter @DanielleArndt or email her at daniellearndt@annarbor.com.