CHARLOTTE-MECKLENBURG SCHOOLS
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- Gervais Elliott
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1 The Board of Education will seek to maximize the benefits while minimizing the costs associated with ownership of real estate assets while meeting the objectives of the school system. The Board will balance the benefits of the disposition of real estate with other Board policies and goals. In order to ensure that the school system has the flexibility to respond to the numerous factors impacting its ability to educate students including, but not limited to, enrollment changes, population shifts, programmatic decisions, emergencies and the availability of capital funding, the process outlined below shall be used to make final decisions regarding the use, disposition or rental of real property not currently being used for school purposes. SECTION ONE Disposal of Surplus Real Estate (Sale or Lease) I. Step 1: Board to Designate Surplus Property A. On a periodic basis, no less than once per year, the administration will present to the Board an inventory of its surplus real estate assets that are not being used or planned to be used for school purposes and may be either sold or made available for lease. In addition to presenting an inventory of real property that may be sold or made available for lease, the administration should make a recommendation for the process to be followed in selling or leasing of any such real estate assets. and a recommendation regarding the use of those assets. B. The Board will then: 1. make a decision regarding whether to declare any of the inventory surplus; and 2. if declared surplus, determine whether to (a) sell or (b) declare available for lease any such surplus property upon terms negotiated as provided herein. The target date for this annual decision by the Board of Education is February or March of each calendar year. Date of Adoption: 6/25/96 Page 1 of 5 Revised: 10/26/04;
2 II. Step 2: Approval of Offers to Purchase and Lease Agreements The Board of Education will give final approval to all sales and leases of real property in accordance with applicable state law. In making final recommendations to the Board, the administration shall adhere to the following guidelines: A. Sale of Real Property In connection with the potential sale of real property, the administration shall consider the following: 1. Factors Staff should typically recommend the sale of land when the land is (i) unlikely to be needed for school purposes in the future or obviously has value far in excess of any replacement land and (ii) is not likely to be developed in a manner that would have a negative impact on any existing school. 2. Process While state statute permits several methods for disposing of real property, staff should typically recommend using the Negotiated Offer and Upset Bid Process (G.S. 160A-269) after an open public process, which, although not required by statute, should involve a public request for proposal process pursuant to which public notice is given that CMS plans to (i) review proposals and consider negotiating with one or more interested buyers and then (ii) proceed with the formal and legally required negotiated offer and upset bid process. B. Lease of Buildings When negotiating a potential lease for buildings deemed available for lease by the Board of Education, the administration shall adhere to the following guidelines: 1. Term of Lease Generally, properties shall be made available on a year-to-year basis up to a maximum of three years. Date of Adoption: 6/25/96 Page 2 of 5 Revised: 10/26/04;
3 a. Leases should typically be aligned to terminate at the end of the school year (e.g. on or about June 15), terminable by CMS upon 6-12 months written notice for convenience. b. However, if (i) the property is not expected to be used by the Board (or funded for use) for the next 3 years and (ii) the Tenant commits to performing capital upfit work on the building of value greater than $250,000, then either (i) the initial term of the lease (with no right for CMS to terminate for convenience) may be extended from one year up to three years; and/or (ii) the lease may provide that in the event of termination of the lease by CMS that CMS will reimburse the Tenant a pro rata share of the capital funding expended by Tenant based on the termination date if the Superintendent determines that the improvements will be of value to CMS and the costs thereof can be determined with reasonable certainty. 2. Other Lease Provisions All buildings are leased in an AS IS condition with the tenant being solely responsible for its own due diligence. Tenant shall be solely responsible for operating costs, including but not limited to utilities and all maintenance and repair of the property. Tenants may be given a right to terminate a lease for convenience. Lease agreements shall be substantially in a form which have been reviewed and approved by CMS Facilities Planning and Project Management, CMS Legal Department, and the Department of Insurance and Risk Management. 3. Process a. Existing Leases of Buildings It is acknowledged that there are existing leases pre-dating these guidelines. For any properties that the Board of Education determines are available for lease, all current tenants may be given the opportunity to renegotiate their current leases in a manner consistent with these guidelines. b. New Leases of Buildings Date of Adoption: 6/25/96 Page 3 of 5 Revised: 10/26/04;
4 i. After the Board of Education declares a property surplus and available for lease, the Superintendent will utilize the Lease or rental of property process (G.S. 160A-272) after an open public process, which, although not required by statute, should involve a public request for proposal process pursuant to which public notice is given that CMS plans to review proposals and consider negotiating with one or more interested tenants. ii. In the event that pursuant to G.S. 115C (or any subsequent statute) a charter school requests to lease property deemed available for lease by the Board, the Board will consult its legal counsel regarding the statutory requirements specific to leases with charter schools. A request by a charter school to lease a specific property will in no way prevent the Board from deciding to sell the property and/or consider lease proposals from other entities. Any lease with a charter school shall specifically state that disputes regarding the terms and conditions of the agreed upon lease shall not be subject to challenge pursuant to G.S. 115C (or any subsequent statute) once the parties have executed the lease. c. Appeal of Administrative Decisions regarding Lease Terms for Buildings In the event that any individual and/or entity is unable to reach terms with the Superintendent pursuant to this policy regarding a negotiated lease of property deemed available for lease by the Board of Education, such final administrative decision is appealable to the Board of Education pursuant to G.S. 115C-45(c) and Board Policy BEB ( Special Board Meetings ). C. Other Leases (such as leases for cell tower sites) Leases of land or portions thereof (e.g. for tower sites) may be considered on a case-by-case basis in accordance with applicable statutes. Date of Adoption: 6/25/96 Page 4 of 5 Revised: 10/26/04;
5 D. Board Authority Final decisions regarding the availability of any real property and the process to be followed to dispose of any such available property shall be made by the Board. Final approval of any sale or lease shall be made by the Board. If the Board determines to sell or lease surplus real property the Board will: 1. Comply with any applicable state law concerning procedures for disposing of real property. 2. Ensure that proceeds from the disposal of real estate be used in accordance with applicable state law. SECTION TWO Easements Additionally, Nnotwithstanding the foregoing, the Board may approve the conveyance of easements to other government entities and utility companies for road right-of-way, sidewalks, or utilities with or without compensation in accordance with applicable state law. The Board may delegate this authority to grant easements to the Superintendent or designee. Date of Adoption: 6/25/96 Page 5 of 5 Revised: 10/26/04;
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