What was the property really worth?

To the Editor:

What are we really talking about when we assess the value of the "old high school" property located on Mineral Avenue? The property that has been in community ownership for approximately 100 years has housed an educational facility and has been the arena for, too many to list, community activities.

The property is 1.7 acres divided into 22 commercial lots located on the 700 block of Mineral Avenue, one block off U.S. Highway 2. The building has 31,000 square feet and there is a well developed park with beautiful trees, picnic tables, benches and a band shell.

The property has paved parking on two sides, sidewalks and lighting on three sides with new sidewalks and lighting on Lincoln Boulevard. It is located next to the renovated Memorial Center, valued at $3 million, which is widely used by the community and the school district.

I would like to review the history of what has transpired over the last eight years with the "old high school."

In 2000, the county returned the property to the Libby School District after Flathead Valley Community College, Libby Campus moved to their new location in the old Forest Service building off U.S. Highway 2.

In 2002 the school board was approached by a group asking for time to research the idea of renovating the facility. After many months they were unable to present a plan to the district. I then developed a plan and presented it to the school board to demo the building. This plan was accepted by the school board and supported by the city, county and many business and civic groups.

I attempted to seek financing through the Libby Area Development Corp. (LADC) $8 million fund. The original plan for funding was refused. I returned with a revised plan to the LADC. However, Libby City Council canceled their contract with LADC and took over management of the $8 million fund. The City then made a moratorium, which is still in effect today, not to spend any of the $8 million.

The City of Libby and Lincoln County later reversed their decision and supported renovation. In 2004, Libby Revitalization, a local non-profit organization created to improve the appearance and vision of our community, financed a conceptual design of "Downtown Libby" for $57,000.

Both LRI and the plan that showed how Libby could look, were funded from the $8 million. The plan was completed by CTA, a professional architectural firm specializing in Mainstreet Design. They presented the community with a conceptual design that emphasized the importance of not selling the park and parking lot on the property which they considered imperative for our Mainstreet Design. They felt the rest of the property was open to commercial development. The plan was endorsed by the city council.

In the spring of 2005 the school district determined that if they were able to move forward with any project, they would need to put a proposition on the ballot to sell, or not to sell, the property in question. With approximately 20 percent of the eligible voters voting, the vote was 70 percent in favor of selling the property.

After many months and no prospective buyers, Libby Revitalization introduced ConoverBond, a company with extensive background in renovating old historic buildings, that expressed interest in the property. They, in turn, spent over a year researching the project.

Their intention was to remodel the building for public and commercial use. ConoverBond felt that a "public presence," city hall, the school district, etc., would be very important for the success of the project. ConoverBond had a professional appraisal completed by Stevens & Company from Missoula, which determined the property value at $240,000, as is. ConoverBond felt they could not develop any partnerships and removed themselves from the project in January 2007, forfeiting all expenses incurred.

In January 2007, Scott Curry, a local engineer, introduced a developer from Kalispell, Bryan Scott, who was interested in renovating the property. At that time the school board established a price of $150,000 for the entire property and started the process of developing a buy/sell agreement. When the buy/sell agreement was completed, the school board passed a resolution to sell the property.

Once the resolution was passed, there was a two week period of time when the public had an opportunity to challenge the resolution. I challenged the resolution on the premise that the school board has a fiduciary responsibility to the tax payers to seek the highest possible value when selling public property.

The price of $150,000 was not enough based on the appraisal of $240,000 given to the school in 2006. Any Realtor can confirm the fact that the property would be worth much more without the building on it. Current market value of commercial property is at $25,000 per lot, which equates to a total value of $400 to $500,000 for the school district.

In my research on the "old high school" building, I received bids from $45 to $90,000 to demo the property, including asbestos abatement. The current school board did not seek competitive bids nor did they place the property for sale on the open market.

While the proposition, passed by the electorate, supported selling the property, nothing was said about saving the building. The school board made a decision to only entertain bids for renovation of the "old high school" building. The school board had received a higher offer from a group of local investors for the property, but the school board determined they would only entertain offers if the building was to be renovated.

The judge ruled in favor of the Libby School District and stated they had not violated any legal requirement for selling property that is no longer in use as a school and would not be in the future.

After the resolution was upheld, Bryon Scott was sent a registered letter seeking his participation in the buy/sell. Bryon Scott did not respond to the letter. At that time Scott Curry introduced another individual who was interested in the redevelopment of the "old high school."

Eric Berry was developing property in Kalispell and he felt that the project is viable. Renovation would include residential, commercial and artistic components. The school board has signed a buy/sell with Berry and his new partner Scott Curry. The project will be known as "Libby Lofts."

At this time the school board has not included a reversionary clause in the buy/sell agreement. If the project is not completed, for whatever reason, will the property revert back to the school district?

My personal stand on this decision has been strongly in favor of retaining community ownership, and to create a park; to celebrate our heritage, for activities such as Nordicfest, Logger Days, Farmers' Market, or for a splash-pad for the children in our community.

Events such as these have a large economic effect in our community and help create our identity. The success of these events often correlates with community economic success.

We need to have a vision to move forward, much the way Troy has in their development of public property for public use. No one can argue the quality of their efforts.

I have not come to this decision by not doing my homework. I have contacted many professionals in regard to the feasibility of renovation. Tom Stevens, a professional appraiser, gave a demolition value to the "old high school" building and his rationale was that the costs to renovate the building would far exceed the ability to make a profit.

One thing is for sure, once public property is sold it is gone forever as public property.

What was it really worth?

Gary Huntsberger

Libby

Former School Board Chairman

Former City Council Member