DAYTON SCHOOLS WEIGHING HOW TO PAY BUILDING DEBT
With move to smaller headquarters space across the street, officials ponder paying off old complex.
Dayton Public Schools’ central office staff are scheduled to move across the street into a smaller headquarters space in the next two months, after a threeyear delay and over $3 million in building preparations.
Now the school board is weighing how to pay off the $9.4 million still owed on the old complex, with the district “underwater” on its debt on the building, according to school board President Mohamed Al-Hamdani.
At their review session Tuesday, the board also discussed plans to spend nearly $3.5 million on renovations to their transportation and service buildings on James H. McGee Boulevard. Those votes will come at the April 20 board meeting.
The Dayton school district originally set a target of August 2018 to move from its 115 S. Ludlow St. offices to smaller, vacant DPS-owned buildings at 124-136 S. Ludlow St. Numerous renovation delays pushed that back two years.
Then in 2020, when the offices were ready, Superintendent Elizabeth Lolli said DPS put the move on hold due to concerns about COVID transmission risks with staff working in tighter spaces.
Now with staff vaccinated and more understanding about COVID risks, Lolli said that move will happen June 1-15, with a small number of staffers moving in May.
DPS’ existing offices at 115 S. Ludlow were the former Reynolds & Reynolds headquarters until the school district bought the two-building complex in 2003 for $15.5 million.
Within five years, the district said the complex was too big, and since 2018, DPS officials have said the buildings need significant HVAC, water and elevator work, among other fixes.
The properties have never been valued at more than $6 million according to Montgomery County Auditor records, which now list them at $5.16 million. Al-Hamdani said Tuesday the district’s estimate of their actual value is about $3.5 million.
John Payne, bond counsel for DPS, told the school board Tuesday that they could use existing cash to completely pay off the $9.4 million owed, or they could refinance the debt next year if keeping the cash was more important.
“This building will eventually be empty, but it is still an asset for the district. We have to figure out what’s the best thing,” Al-Hamdani said. “It’s not an easy conversation to have ... paying something off that’s underwater. But that might be the more responsible thing to do for us.”
Payne said refinancing could be better if the district has an upcoming need for cash. Lolli said the possibility of constructing additions onto crowded Kiser and Ruskin schools could play into that decision.
Al-Hamdani said “it would be nice” if another user could repurpose the 115 S. Ludlow property. The building sits catty-corner to the revitalized Arcade complex at Fourth and Ludlow.
“To make it more attractive, we have to figure out our end of the money situation. Nobody’s going to come in here and save the building,” he said.
Other building projects
The school board will vote next week on a $2.62 million contract with The Brewer-Garrett Company for infrastructure and building automation system replacement at DPS’ Service Building, 4280 James H. McGee Blvd.
Rick Rayford, DPS’ executive director of operations, said many of the 1960s-era building’s original mechanical systems are still present. In addition to the boiler, lights and other mechanical systems, the windows will be replaced to make sure newer systems run efficiently.
The board will also vote on an $850,000 purchase requisition for Brumbaugh Construction to start renovations of the transportation building at 4290 James H. McGee Blvd. Lolli said the project will add meeting space, restroom space, and a kitchenette, pending input from bus drivers on the layout.
“We need to invest in some of our legacy buildings that we plan on keeping,” Rayford said.