District Purchases Property to Relocate Education Center

In order to provide an appropriate permanent site for the Education Center (EC), the Board of Trustees on July 11, 1997, approved the purchase of real property at 1021 and 1051 West Bastanchury Road (Property) in the city of Fullerton. Between 1981 and 1998, the EC was housed at the Beechwood School site owned by the Fullerton School District The Property includes the land and two buildings. One building is 24,000 square feet and houses the Education Center; the other is 10,000 square feet and continues to be leased. The close of escrow on the Property took place on August 30, 1997.

Rationale for the Purchase of the Property for the District Education Center:

1. The purchase price of $1,462,500 for the land and two buildings (34,000 square feet) in Fullerton is an excellent value for the District. The availability of the Property provided an excellent opportunity for the District to make a very prudent investment at a time when the future use of the former EC site was uncertain. In the late 1980s while the real estate market was booming in Orange County, the property was purchased for over $4 million. The slump in the real estate market in the 1990s provided the District the opportunity to purchase the property at an excellent price. While no official assessed valuation of the property has been completed since the time of purchase, conservative estimates would indicate a substantial increase in the value of the property since purchase.

2. The smaller building included as part of the Property generates an ongoing income stream to help offset the costs associated with the purchase of the Property. The smaller building generates approximately $100,000 annually from lease agreements. In addition, in 2000, the District received an unexpected “windfall” of $600,000 from the City of Buena Park through redevelopment funds. The funds were used to pay off the loan on this smaller building, thereby creating a profit stream for the District.

3. The cost of purchasing and remodeling the Property to meet District needs was less expensive than constructing a new 24,000 square foot facility or purchasing portable buildings, both of which would have been located on currently owned District property.

4. The District had been a lessee for over thirty years without gaining an equity interest in, or ownership of, any of the sites previously leased. If the EC would have remained at the former site, approximately $1,000,000 in rent would have been expended by 2007, the year the District will pay off the loan on the Property. The District will then own the Property free and clear, allowing more funds to be available to support the instructional programs and student learning.

5. The purchase of the Property addressed the uncertainty of the continued future use of the former DEC site by the District. The District had to find a new Education Center. The Fullerton School District made the decision to convert the Beechwood site back into an elementary school, which reopened in 1998. The District really had no choice.

6. The Property provides 7,000 additional square feet over the former Education Center site, which meets the long-term needs of the District by providing space for additional conference rooms and other special-use spaces to meet the educational needs of students and staff members. The Property also provides rooms for community use as requested.

7. The Property is closer to the geographic center of the District in the city of Fullerton, and therefore is more accessible than the former Education Center site.

Prior to occupying the Property, a facility use study was conducted and necessary renovations were completed to the Property. The Education Center moved into the Property in August, 1998. For more information about the District’s purchase of the Property for use as the Education Center, please call the Superintendent’s Office at (714) 870-2801.