Moses Lake School District to sell two properties amid financial crisis – Washington Examiner
On July 2, 2024, the Moses Lake School District announced plans to sell two surplus properties in an effort to address a financial crisis that has resulted in the loss of over 200 jobs. The district’s board of directors made the decision in order to safeguard taxpayer money and interests. This move comes after the district faced challenges passing its Maintenance and Operations Levy earlier in the year, leading to a $20 million budget reduction. The district had to resort to drastic measures, including approving an inter-fund loan to make payroll and reducing 85 more positions. The sale of the properties is intended to provide some revenue boost and prevent the district from paying taxes on unused land. Despite some complications in previous negotiations with the county, the board voted to surplus the properties and seek new appraisals before proceeding with the sale.
Moses Lake School District to sell two properties amid financial crisis
(The Center Square) – The Moses Lake School District plans to sell two surplus properties as it scraps together all the money it can amid a financial crisis that has put more than 200 people out of work.
The district’s board of directors announced its intent to sell during Thursday’s meeting, issuing a press release afterward stating it’s intended to “safeguard taxpayer money and interests.”
Earlier this year, MLSD repeatedly failed to garner enough votes to pass its Maintenance and Operations Levy, leading to the loss of other funding and a deeper dive into the district’s spending, which noted a myriad of issues amounting to a $20 million budget reduction.
The situation became so dire that district officials had to approve an inter-fund loan to make its May payroll. The day before voting to approve the loan, the district announced it would reduce 85 more positions, taking the total up to 215 personnel for the month.
While MLSD made its June payroll thanks to $9 million in grants, a representative with the North Central Educational Services District told the board that there was only so much left in available grants and other funding, meaning it couldn’t repeat the strategy to the same degree again.
“We’ve taken a look at the surrounding property values within a half-mile radius of here,” said Project Manager Brian Sewell, “and there’s quite a market out there for property along Yonezawa.”
Sewell said MLSD hopes to sell its 89,000-square-foot lot off Yonezawa Way and a half-acre parcel at 2nd St. NE and Wheeler Road. The sales could provide a slight revenue boost and save the district from paying taxes on a property only good for growing noxious weeds.
Earlier in the meeting, Thomas Gaines, the central services director for Grant County, spoke up about two verbal offers he exchanged with Jeremy O’Neil, MLSD’s chief operations officer. However, the district official failed to go through the proper channels.
Gaines said he went through multiple negotiations, believing that O’Neil was engaging with the board or other officials before the county paid for an appraisal in January of this year. While MLSD received the property values back in March, the conversation soon dried up.
“Since then, it has been like pulling teeth to get communication from the school district,” Gaines said. “Time is of the essence. We need to get our coroner’s office built, and we have other options, but this is the perfect option.”
The 89,000-square-foot lot off Yonezawa Way is located just around the corner from several healthcare facilities, making it the perfect spot for the county; however, since O’Neil failed to follow proper procedure, the county ultimately wasted its time and money entertaining the idea.
Instead, the board voted on Thursday to surplus the two properties and acquire new appraisals. While MLSD intends to sell the properties, it’s required to host a public hearing before then.
Gaines said the county’s first offer was $360,000, but after O’Neil renegotiated the size of the lot, it decreased that offer to $114,000. Regardless, it’s money in MLSD’s pockets but will require more oversight than initially led on.
MLSD will host a public hearing on July 25 to allow for comments on the potential sales. Following that, the district will have 45-days to award the sales after advertising the properties in the local newspaper.
“We’re sorry that the gentlemen had been told certain things,” Interim Superintendent Carole Lewis said, “but we’re in a place where we need to go through the correct processes, and this is the first step.”
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