Why were the parties unable to reach agreement?
Out of fiduciary responsibility to local and state taxpayers, SCCS sought a fair-market education facility valuation for the property, administered by a professional appraiser with statewide expertise. It was determined that the terms of the current lease provide PCS with a lease rate substantially below appraised market-rate value. The only offers received from PCS for a three year extension of the agreement were significantly below appraised market-rate value and did not reflect any upward adjustment from the current fee structure. In light of the severe budget cuts at the state level, as well as the economic downturn, SCCS must exercise fiscal prudence and maximize revenue in order to ensure classroom funding. By providing PCS a facility at well-below market rates, SCCS—and the taxpayers who fund the district—subsidizes PCS, including those students who reside outside SCCS district, at the expense of programming and resources that should be directed to SCCS students.
