This policy provides direction for the management of school district real property currently excess to district needs. The superintendent will provide the school board by August 1st of each year a status report on each piece of district property so identified. The report will include the annual direct and indirect costs and income. The school board will be alerted in any instance when a piece of excess real property is not self-sustaining.

I. Excess district property shall be placed into two categories; Reserve and Surplus:

A. Reserve Property -- Is defined as property which is currently in excess of district needs but is being held for possible future needs.

1. Short-term Reserve: Property to be rented or leased for a period up to five years.

a. Classification Guidelines:

(1) Property which has been identified as meeting a district need within the next five years.

(2) Property which has been identified as having the potential of meeting a district need within the next five years.

b. Management Guidelines:

(1) Recovery of district costs will be given first consideration in leasing or renting property in the short term reserve category. However, community needs should also be considered. Every attempt should be made to have buildings occupied to assist in maintenance of the property, prevent vandalism and keep property from becoming a community eyesore.

(2) Property in this category should be reviewed annually to determine if it should remain short term or moved to another category.

(3) "Time-certain" for future property use should be established as soon as possible.

(4) Short-term rental agreements, multiple occupancies, etc., should be considered to assist in the cost of upkeep.

(5) The board reserves the right to refuse to lease to any party when in the board's judgment, such a lease would not be in the best interest of the district and/or community.

2. Long-term Reserve: Property to be leased for a period beyond five years.

a. Classification Guidelines:

(1) Property which has been identified as meeting a district need at a date five years or more in the future.

(2) Property which has the potential for meeting a future need but current information indicates a lack of district need for five or more years.

b. Management Guidelines:

(1) A profit to the district should be the first consideration for long term reserve property including the recovery of short and long term costs. However, community needs should also be considered.

(2) Reserve property should be reviewed annually to determine whether it should be placed in the surplus or short-term reserve category.

(3) Lease agreements should generate enough income to provide for long-term maintenance and reserves for capital improvements.

(4) The board reserves the right to refuse to lease when in the board's judgment, such a lease would not be in the best interest of the district and/or community.

B. Surplus Property -- Property for which no future district program or operational use is anticipated.

1. Classification Guidelines:

a. All property placed in this category shall have been thoroughly studied with regard to district demographics.

b. A public hearing shall be held prior to placing property in the surplus category, and the school board shall consider the following factors when making its decision.

(1) No identifiable school need.

(2) District's need for revenue.

(3) Commercial potential.

(4) Legal restraints.

(5) Community needs.

2. Management Guidelines:

a. Maximizing revenue to the district, and making a positive contribution to the community, are to be the goals for property placed in the surplus category.

b. Property in this category should be prepared for disposal either through sale or long-term lease agreements.

c. The decision to lease or sell should be based on the greatest return to the district consistent with state law and the ability to successfully market the property.

d. Preparation for marketing (i.e., potential zoning changes, sub-divisions, etc.) should be aggressively pursued.

e. Commercial marketing techniques may be used for leasing and disposal of surplus property where feasible.

f. Long-term reserve property should be reviewed annually to determine whether or not current placement is appropriate.

II. The final management decision on all property use or disposal will remain with the district; however, the district may utilize the services of consultants when appropriate.

III. Sale, lease, or rental of all district property shall comply with all requirements of the law.

Cross Reference:
Closure of Facilities - Policy 9270
Sale of Real Property - Policy 9271
Rental of District Property - Policy 9273

Legal Reference:
Surplus School Property - RCW 28A.58.033-040
Real Property – Sale - RCW 28A.58.045
Sale, exchange, transfer, lease of surplus property - RCW 39.33.010

Highline School District 401
Adopted by the Board: August 1984
Revised by the Board: 02.87
Classification: Essential