By Julie BUTCHER

Utilizing a unique provision in the California Education Code, the Glendale Unified School District may be able to replace its aging headquarters at no cost and move into a larger, more modern building. On Wednesday, July 12, the GUSD board unanimously adopted a resolution to explore the possibility of exchanging the District’s existing administrative building at 223 N. Jackson St. for the property at 425 E. Colorado Blvd.

A school district is permitted to make such an exchange by the provisions of §17536 et seq. of the Education Code. Local school district officials say, “a property exchange offers the most streamlined process, is more economically feasible and is the least operationally disruptive option for the GUSD.”

According to a report submitted to the board of education at the special meeting on July 12, “On May 9, 2017 the Board received an information report from staff regarding the physical condition and operational space capacity at the GUSD administrative offices located at 223 N. Jackson St. At this meeting, staff shared estimated costs of $15 to $20 million to bring the North Jackson Street property up to modern building standards.”

At its first meeting of the 2017-18 school year, the GUSD board reviewed the staff report and discussed the exchange process. Then they toured the property proposed for the exchange and returned to debate the resolution for further action.

The current building, generally known as the District Office, is 40,000 square feet on 2.41 acres of “improved land;” the District said it needs more space to consolidate all its operations in one place as well as more parking. They summarized the building’s difficult past and reminded the board that it would require at least $15 million to simply bring the building “up to code.” At the same time, San Diego-based Carmel Partners, identifying itself as “entrepreneurs and multifamily real estate experts,” expressed interest in acquiring the building in exchange for the property it owns or is purchasing on Colorado Boulevard. That building is 116,505 square feet that sits on an estimated 44,651 square feet of improved land, with approximately three times more parking spaces than the District’s current home.

Boardmember Dr. Armina Gharpetian was the first to insist that all necessary documents be viewed and verified before taking any further action.

“I want to see the escrow docs,” she said. “We have been through this before and I am going to insist on complete thoroughness before we proceed in any way.”

Sam Manoukian, RE/MAX Commercial Division director, is one of the experts the District has engaged to represent its interest. He explained to the board and the public that the agreement contemplated is advisory only.

“It is non-binding and does not obligate us in any way,” Manoukian told the board. “It simply announces our intent to do due diligence. An exchange of property is a unique way of trying to meet the District’s needs, now and into the future. In this situation, we are dealing with the direct owners. Further, it’s an institutional owner and has therefore conducted yearly inspections.”

“If you’ve seen the specs,” Manoukian went on, “you’ll see that it’s a modern building. There will be no need for retrofitting.”

“First, we’re looking at the bones of the building, its infrastructure, size, foundation. Then we look at the finances. This building has tenants and brings with it an income stream. Our bare minimum is 100,000 square feet with sufficient parking (which we define as three spots per 1,000 square feet). Only six properties in Glendale match these criteria. None are for sale.”

In response to Boardmember Shant Sahakian’s questions regarding the timeline, Manoukian replied that “we are not closing this year.” He explained that the process would be slow and deliberate; optimistically, he predicted a February close.

Board President Nayiri Nahabedian asked whether an RFP process would be more open.

“I want to do the right thing by the District, and I also want to be a good neighbor,” she said. The board discussed various approaches.

Boardmember Sahakian reminded the board that it would require a minimum of $15 million just to make the building safe.

“That’s money that comes directly out of our classrooms, from our teachers, and I don’t want it to come from there.”

Reconvening the meeting after seeing the Colorado Boulevard building, Board President Nahabedian noted that representatives of the union and PTA had joined the board for the tour. Board Vice President Greg Krikorian was enthusiastic in making the motion to move forward with the property exchange. It was adopted unanimously.

Clerk and Boardmember Jennifer Freemon noted that she had concerns and interest in ensuring the new building would be safe, accessible, and welcoming. She suggested staff develop detailed timelines and plans, including moving plans. Krikorian asked if it is possible to incorporate the Professional Development Center (PDC) in the planning to save money from leases.

Manoukian explained that the new building would offer maximum flexibility.

“This is a Type 1 construction,” he told the board. “You could have 16,000 square feet of open space on every floor if you want. At the proper time, we will develop a staggered migration plan and layout configurations. Some of these may even be negotiated as part of the deal.”

Sahakian asked that in addition to a rough timeline that staff begin to prepare a detailed analysis of existing tenants and leases. “This effort must be as close to cost neutral as is possible,” he concluded.

Leaving the meeting, Sam Manoukian lauded the action.

“If it works out – and we’ll know soon enough if this is going to work – this will be great for the District, now and well into the future.”

“I went to these schools,” he said. “Everything I have, I can credit the education I got here. It’s the least I can do to help pay it forward.”

  Julie BUTCHER