The Morning News says 'Speculator' eyes high-school site

http://www.nwaonline.net/articles/2008/06/26/news/062708fzfayschoolbrd.prt
Speculator Eyes High School Site

By Rose Ann Pearce
The Morning News
FAYETTEVILLE - An unnamed investor or group of investors wants an 90-day option to consider buying the Fayetteville High School campus for $60 million.

The proposal was handed to the Fayetteville School Board on Thursday. The board didn't take action on the option but could in the next few weeks.
A 90-day option is a contract granting the group an exclusive right to purchase the property at a set price, said board attorney Rudy Moore Jr.
"It is not an offer," Moore told the board.
Superintendent Bobby New said he received the offer Wednesday.
"This offer simply gives the district another opportunity," New said.
Springdale attorney David Fisher, who represents Campus Building Group LLC, said an option agreement along with more details on the participants in the project should be available in the next two weeks.
The group apparently wants the property for an "upscale" apartment community and entertainment center for students at the University of Arkansas.
"Its proximity to the University of Arkansas campus makes the property extremely desirable for upscale student housing as well as for opportunities in commercial and retail activities," according to a prepared statement Fisher read to board members.
"It is CBG's hope that this project will allow them to create a great new development abutting the university campus to service the housing, safety and entertainment needs of our university students for years to come," the statement continued.
School board member Tim Kring said he couldn't find information about the group in an Internet search during the meeting.
"I can't tell who the group is at this time," Fisher said. The address listed on his letterhead is 1589 Electric Ave., the same address for Springdale Construction and Contractors.
A 90-day option will limit the district from accepting other sale offers during that time period and gives Campus Building Group the exclusive right to buy the property during the 90-day period, but doesn't obligate the group to buy the property. Any sale to the group would be limited by terms and conditions approved by the school board.
New said the district should continue discussions with the University of Arkansas which has offered $50 million for the property. The district set a price of $59 million when the property was offered to the university last month.
The board also authorized Lisa Morstad, the chief financial officer, to continue discussion with university officials about their purchase of the property in an effort to nail down additional information on the terms and conditions. The board postponed making a counteroffer until it has more information.
School board members wanted more information, especially on any lease-back arrangement to continue to use the high school while a new school is constructed.
In response to questions about the impact of an option on the ongoing discussion with the university, Moore told board members there was "no reason" negotiation couldn't continue with the university.
"You couldn't sell in the 90-day period," Moore said.
University officials were caught off guard about the option.
"This is the first I've heard of it," said Dave Gearhart, the chancellor-elect of the University of Arkansas, on Thursday afternoon.
Gearhart said he and New last discussed the university's $50 million offer for the high school property on Monday, and New did not mention any other offers.
University trustees would be unlikely to match a $60 million offer, Gearhart said, citing discussion at the Board of Trustees meeting earlier this month that led to the approval of the $50 million offer.
The Morning News' Dan Craft contributed to this report.

What's Up
Back To The Classroom
Fayetteville School Board member John Delap resigned the at large board seat he has held for nearly two years to return to the classroom.
Delap was hired as a social studies teacher at Fayetteville High School. State law prevents a teacher in the district to serve on the school board.
When Delap retired from education several years ago, he was principal at the high school.
School board president Steve Percival said patrons in the district who are interested in filling the vacancy should contact a member of the school board. The board must appoint a new member within 30 days.
There is no residency requirement because Delap was an at large representative.
Delap's replacement will serve until the September school election at which time a member will be elected to fill the rest of Delap's term. The appointed member can run for election to the seat.
His resignation is effective July 1. His new assignment begins a month later.
Source: Staff Report