Overview
The Newark Unified School District (“NUSD”) serves approximately 6,000 students and provides a lifelong learning opportunity to all Newark Residents. NUSD is comprised of eight elementary schools to include a TK program, one junior high school, one high school, one continuation high school, and one independent study school.
Vision
NUSD’s mission is to empower students in becoming lifelong learners who possess the skills, ethics and creativity to reach their full potential as contributing, productive, responsible citizens. NUSD endured financial challenges, caused primarily by dramatic reductions in state funding in each of the past several years and declining student enrollment. As a result, NUSD closed and made surplus the Ruschin Elementary School, in 2005. NUSD wanted to sell the Ruschin Elementary School to generate funds to help offset the ongoing cash challenges and secure income streams to augment revenues made available from the bond.
Challenge
The 7-11 Committee Process was met unfavorably by the residents. As a result, the Board voted to lease the site. The income realized from the property represented a meager return on the estimated market value of the site. NUSD needed approximately $150 million to reinvest in schools, but passed a bond for only $66 million.
Solution
Cerro Vista Land & Development (“CVL&D”) evaluated and researched the benefits of selling Ruschin Elementary School site. Using its consulting services and industry knowledge, CVL&D created a robust and extensive plan which identified under-utilized or unused real estate assets that could be used to develop strategic and sustainable long-term plans that benefit the overall mission of NUSD. CVL&D met with the District’s Chief Business Official, the Superintendent and the Board about his strategies. The board voted unanimously for CVL&D to work with staff on a proposal to market and sell the Ruschin School site.
Alan Cerro served as NUSD’s project manager for the entire state-mandated process for selling a surplus school site. His consulting services identified opportunities to develop a more comprehensive Strategic Asset Management Plan for NUSD’s underutilized properties. Based on Alan’s recommendations, a more comprehensive Strategic Asset Management Plan was implanted and executed. Working in partnership with organizational leadership, Alan was able to clarify goals and opportunities; identify new revenue potential; increase financial stability, and finally; garner public support. In October 2013, CVL&D prepared and assisted with releasing a Request for Proposals for the 10.15-acre Ruschin School. CVL&D facilitated the close of the escrow, and provided the expertise needed for NUSD to make informed decisions every step of the way. Benefitting from CVL&D’s consulting and marketing services, NUSD had the luxury of choosing between several offers. Among the offers available, NUSD had three options around $20 million.
Outcome
The property sold for $19.25 million and closed escrow in May 2015. Proceeds from the sale were used for capital outlay, and allowed NUSD to rebuild and continue to empower students.
Property Address
36120 Ruschin Drive, Newark, CA
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