School district will buy building for $5 millionDistrict will see immediate savings on property taxes
By: Nathan Hansen, Rosemount Town Pages
The District 196 School Board is going from renter to owner at an Apple Valley building that houses three of its programs.
The board voted Monday to move ahead with the $5 million purchase of a building that since 2006 has housed its Area Learning Center, Transition Plus and Pathway programs. All three programs would remain at the facility, which the developer built to suit the district’s needs.
This isn’t the first time the district has tried to buy the building, which it has a lease to occupy until 2016. District officials approached their landlord last year to see if there was any interest in selling. There wasn’t then, but the building’s owner came back this year more interested in reaching a deal.
District finance director Jeff Solomon said the purchase will save the district money. Under the current lease, the district is responsible for taxes and maintenance on the building. With the building shifting to public ownership, there would no longer be property taxes. That will save the district at least $112,000 immediately, Solomon wrote in his memo to the board.
The change also allows the district to access different funding sources to pay for maintenance at the building.
The district currently pays $380,880 in rent, not including property tax, on the building. That rent was scheduled to increase to $414,900 next year.