The
Austin school district will seek bids for 10 of its properties,
including its 128,000-square-foot headquarters on West Sixth Street, the
former Millett Opera House currently leased by the Austin Club, and the
Baker Center administration building in Hyde Park.
The
district could sell, lease, swap or repurpose the properties to
generate one-time revenue or create other long-term plans for their use.
They have a total value of more than $95 million.
The
most valuable of the offerings is the Carruth Administration Center,
which sits on 2.75 acres at 1111 W. Sixth Street. Originally designed to
be a mixed-use project with office, residential and retail components,
the headquarters is valued at $33.6 million, according to district
estimates.
The
district bought the property more than 25 years ago and has looked into
selling it at least once, but it never got an offer that was attractive
enough to district leaders.
“I
can certainly see this as an opportune time; the market would respond
very favorably,” said Charles Heimsath, president of Capitol Market
Research, an Austin real estate consulting firm, pointing to the major
redevelopment taking place at the former Seaholm power plant and the
former Green Water Treatment Plant nearby.
Regarding
the Austin Club, which is a half-block off of Congress Avenue, Heimsath
also said “there’s a wide range of possibilities for a property like
that.”
District
records show the Austin Club, which has had a lease with the district
since 1979, paid the district about $48,000 in rent in 2014. The
district has valued the property at an estimated $6.3 million.
The
list of properties the district is offering includes the former Allan
Elementary, and the school board is also considering options for other
plots of land, ranging from an acre in East Austin to 32 acres in
Northeast Austin, as well as its Central Warehouse and Service Center.
The properties are labeled as being noninstructional, but some trustees
pointed out that early education is being taught at Allan, albeit
through partnerships with local nonprofits and not by the district. More
than 12 acres of green space the district owns in Travis Country in
Southwest Austin has been used as an outdoor environmental sciences
classroom by the Green Tech Academy at Small Middle School.
The
Austin school board will vote Monday night on whether to issue requests
for proposals that allow developers and other entities to pitch ideas
for using the lands and facilities. District leaders are considering a
three- to four-month time frame to gather proposals, but the process
could take longer.
“We’re
hopeful that we can get some really thoughtful proposals back,” said
Nicole Conley, the district’s chief financial officer. “There’s a lot of
interest now in sort of partnering in the market.”
Community
members and some city and district leaders have discussed ideas such as
creating affordable housing for teachers and other civil servants on
surplus property, doing leasebacks or swapping properties.
“These
are not done deals,” Trustee Ann Teich said. “We’re exploring
opportunities with this land, and it would be a better use of our time
and our energy to do this rather than to just leave these properties
unexamined.”
The
Austin school district previously sought bids in 2011 for its West
Sixth Street headquarters and the Baker Center in Hyde Park to ease a
budget crunch, but it ultimately wasn’t satisfied with the offers. This
time, trustees say looking at the district’s real estate resources is a
necessary step for long-range planning.
As
was the case in 2011, the district has retained Austin commercial real
estate firm Southwest Strategies Group in seeking proposals for the
properties.
Previous
board discussions on properties have dealt with how to more wisely use
district assets, including leasing buildings for market value. The
district last month hired consultant Brailsford and Dunlavey to look at
facilities and planning in a broader way, as trustees tackle prolonged
issues of underenrolled schools in some areas, overcrowded schools in
others, and aging facilities. District leaders expect a master plan for
all the facilities by May 2017, and they will consider any proposals
made for the 10 facilities within that plan.
Trustee
Amber Elenz said she is excited to see what ideas come forward and
considers the requests for proposals a necessary step before the
district can consider going back to voters with a bond request to
address its needs. However, she cautioned that the district might need
to place appropriate restrictions or expectations on any real estate
deal.
“We’re
approaching this as an opportunity to see what greater yields we may
have in the use of these different properties,” Trustee Yasmin Wagner
said. “It’s an exploration exercise at this point, not an austerity
measure.”