Reynolds district mulls sale of property
The Reynolds School District is looking to sell more than 27 acres of unused land it owns, most of it next to the McMenamins Edgefield complex along Southwest Halsey Street in Troutdale.
"The district has received inquiries regarding the potential of selling the property," Rachel Hopper, deputy CEO, said at the Wednesday, July 11, school board meeting.
Hopper told The Outlook that the cities of Wood Village and Troutdale and others had expressed interest in a 22.6-acre parcel, which prompted the district to consider selling it.
As a result, the Reynolds School Board voted Wednesday to declare the property as surplus, the first step in any possible sale of the property. The surplus designation does not mean the district must or will sell the property, Hopper noted.
Two separate parcels were declared surplus:
n 22.6 acres and purchased in 2008, in combination with four other lots, for $11,352,800. Hopper said the 22.6 acres is not needed for a school. This parcel, zoned for single-family homes, is east of McMenamins resort at 2126 S.W. Halsey St., and part of it is used for parking during the facility's popular summer concert series.
n 5.78 acres on a hill below the Safeway store at Cherry Park Road.
Hopper declined to estimate a price the properties might fetch, but noted getting those estimates will be part of the next step in a possible sale. A two-year old county assessment valued the two parcels at about $5 million.
It costs the district $1.6 million per year in debt service to keep the 22.6-acre parcel.
Reynolds School District also owns property abutting the west side of McMenamins Edgefield that contains several unused buildings, and one used for district training and meetings. It was not declared as surplus at Wednesday's meeting.
Money from the sale of the property cannot be used to bolster the operating budget of the schools, Hopper said, or to pay for teachers, books or other day-to-day costs.
"Any proceeds from the sale will be used to offset debt. It's not going to be like the district will get a windfall," said school board member Dane Nickerson.
The district is facing a $2.7 million shortfall for the 2018-19 school year.
Depending on the sale price, the district's day-to-day finances could be bolstered slightly, by about $350,000 per year, if a sale occurs. That sum is taken annually from the general fund to pay for some of the property's debt service.