On Thursday morning (January 16) I learned that – at that moment – a meeting was taking place between Mayor Maddox, Tuscaloosa City Board of Education Chair, Lee Garrison and Superintendent Paul McKendrick. The subject of their meeting was indicated to be the grant from the Governor of land on which to build a new school north of the river. There was said to be a string attached: The land would be “free” so long as construction was initiated by a certain date and completed by a certain date. After receiving this news, I started a flurry of phone calls to various school board members and was surprised to be told by most that they had no idea what I was talking about.
This morning at the Board of Education retreat, the details were revealed by Board attorney Dave Ryan. (It strikes me as curious that the Board Attorney knew of this deal before the Board. Who works for whom?)
Here is a transcript of his remarks up to the beginning of discussion among the board and staff. (It’s late; I will try to finish the transcript tomorrow.)
Transcription by Laurie Johns of video tape taken at Tuscaloosa City Board of Education Board Retreat January 18, 2014. North River Yacht Club.
Regarding Thursday, January 16, 2014 meeting between at least Mayor Maddox, Lee Garrison, Dave Ryan and Paul McKendrick.
Earnestine Tucker (via Skype): What are y’all on now?
Lee Garrison: We will talk about the meeting with the mayor. Dave’s going to inform everybody about what we discussed. We are not going to do it in executive session. We’re not going to do it in executive session because press already knows about it…
Dave Ryan: Well because you can’t.
Lee Garrison: yeah
Dave Ryan: You can’t. Um, to discuss, to discuss property in executive session you’ve got to be discussing an acquisition of that property and what consideration you’d give. You don’t want to be coming up with a price in open session. So we’re not acquiring this property. It’s, it’s and you’ll understand (movement around the room) so we were asked; Lee wanted me to talk about this property that’s been…
Lee Garrison: the biggest public secret that…
Dave Ryan: … floating around in the ether for about 18 months and frankly I didn’t – I mean I know what the amendment of the lease says but I have no idea how we got there. City school board is not a party to it at all and it just appeared. So we sat down. We needed to hear from the Mayor, who was involved in acquiring – making this piece of property available. We needed to hear from the Ol’ Colony Board of Directors who was also involved. That’s separate – it’s important to understand the Ol’ Colony Board of Directors is separate from the PARA Board Members. That’s going to be important to talk about later on. So let me pass around…I’ll show you. This is the amendment. Let me pass this around. (Gave to Jeff Johnson to pass around.) The Department of Mental Health – and how they acquired this property I have no idea – the Department of Mental Health owns 600 acres…
Harry Lee: That’s where Ol’ Colony is.
Dave Ryan: … where Ol’ Colony sits and the surrounding Sokol park and a lot of that undeveloped land that you see in that area. That is owned; that real estate is appraising between $50,000 and $100,000 an acre is owned by the Department of Mental Health. Um, it’s some of the most valuable real estate inside the city limits and it’s owned by the Department of Mental Health.
In ‘99 they leased that property – the Department of Mental Health leased that property to PARA. OK? And that was when University Golf Course was closing; PARA was going to build Ol’ Colony. I even think the additional plan was … to build a second 18 holes across Northridge Drive right there where you see PARA building and new facility north of the Oaks but south of Sokol Park. I think that was originally intended for an additional 18 hole golf course. So they build Ol’ Colony – public golf course – PARA owns it. City and County each paid ½ of the construction costs. The lease payment is $150,000/year from PARA to the Department of Mental Health until – this is the impetus of what got us where we are today – until January 1, 2014. On January 1, 2014 the rent starts increasing gradually because PARA has to start including 2% of its gross revenue generated from this course. … 2% of gross revenue started going to Department of Mental Health in addition to the $150,000/year.
So Ol’ Colony’s Board of Directors starts looking in 2012 and saying, “hey, …” Ol’ Colony’s Board’s goals – and we learned this – we wanted operational costs including that $150,000 rent to be paid out of revenue generated by the golf course. … City and County already split construction costs. PARA’s money comes primarily from the City and County so if they have a $150, 000 deficit to pay the rent, if their operations costs are not paying their rent then they have to take money from other PARA activities and put it over there which means they have to get additional funds from the City and County to replace what had to be moved to pay the rent on Ol’ Colony.
So their goal is: “we’re going to be self-sustaining. … Now they’re looking at their lease and going, “in 2014 (describing original lease terms for increase of annual rent to an ultimate point 20 years later the rent will be $450,000).
So they knew, “we gotta get out of that…can’t keep going to the City and the county asking for additional funding. So it started conversations. The Ol’ Colony board started looking at all these 600 acres “now under lease to us; what are we not using? We can we… We gotta give something to the Department of Mental Health to get relief… So they had all 600 acres divided into parcels. There are 4 parcels that are adjacent to Watermelon Road. (Describes current surrounding developments.) They had them appraised – divided into parcels and appraised. The 4 parcels adjacent to Watermelon Road were the most valuable and they were never going to use it. There was nothing that Ol’ Colony could do with those 4 parcels.
The second most valuable were the parcels on Northridge Drive adjacent to – you’ve got Northridge High School you’re going North down Northridge Drive toward Sokol Park. You have Northridge High School. You have the entrance to the Oaks that sits back off from the road. Then you have some undeveloped property from there til you get to Rice Mine Road. That was the second; those parcels were the second parcels in value.
So they went to the Governor and they said, “we want to give you these four parcels adjacent to Watermelon Road and we want to be able to use these other parcels that are adjacent to Northridge Drive for any public purpose (emphasis in Mr. Ryan’s speech). Any public purpose – not just a park. I really couldn’t figure out what PARA would do. Any public purpose – and we want you to forgive the rent.
Well there starts a tussle. The PARA Board separate from the Ol’ Colony Board – they want to require a park use. So the PARA Board is going to Ol’ Colony: “if you don’t need those 4 parcels next to Watermelon Road, we’ll use them. Don’t give that back to the Department of Mental Health. The Department of Mental Health wants it all back: “if y’all aren’t using our 600 acres then give it back to us.” Now Walt and the City have had their battles with the Department of Mental Health (expounds a bit). You’ve got Department of Mental Health saying give us back all our acres. You’ve got PARA saying don’t give anything back. You’ve got Ol’ Colony Board saying “we can’t pay $150,000/year and in a few years it’s gonna be 4.” So they sit down with the Governor and the Governor says, “you are not using these 4 parcels; let the Department of Mental Health sell them.” And that’s where the City of Tuscaloosa is involved. They want development on those 4 parcels to generate ad valorem taxes and sales taxes. [Ambient noise blocks speaker]…and that will replace what they’re going to lose in the rent. They’ve been made whole. Now, something I should have mentioned earlier, and some of you know this, maybe all of you know this: when Northridge High School was built in 2001there was not enough land to include athletic facilities so if you’re standing facing Northridge High School from the tennis courts north to the end of the baseball field where you run into The Oaks, the City school system does not own that. That is Department of Mental Health property leased to PARA and then subleased to the city schools because they were being used for a PARA-type purpose – recreational activities – and a use agreement was signed in 2001 – still in force today between the City schools and PARA which says ok, because we’re letting you have all this prime real estate to do your athletics on, whenever you’re not using it for athletics – anywhere in the city of Tuscaloosa – not just Northridge – PARA gets to use it. And if you remember – I remember – I used to play in these leagues 10 years and 60 pounds ago – this was before PARA had those community centers … PARA’s basketball leagues played at Central and Westlawn. So that was the deal. They needed the City Schools’ basketball courts. The other end of the agreement is that city schools get to use PARA facilities whenever they’re not using them. That use agreement has been in place since 2001 and the athletic facilities at Northridge are part of this Department of Mental Health lease to PARA.
So the agreement hammered out in ‘99 not only started January 1 of 2014 but PARA started kicking 2% of its gross revenue over to the Department of Mental Health and Tuscaloosa City Schools we’re about to have to start giving 2% of the revenues generated by the Northridge Athletic Facilities to the Department of Mental Health. That is you gate. That is your concession sales…
[LG speaks over and I can’t understand either of them.]
Northridge Tennis Team; Northridge Football Team; soccer; baseball; girl’s softball. [talks about how little funding there is already for athletics and what all the booster clubs do and how this will impact that.]
LG: that woulda’ started this year?
Dave Ryan: we’d be going right now. So that’s background. Department of Mental Health wants it all back. PARA doesn’t want to give any of it. And the board of Ol’ Colony wants to be self-sustaining and not have to pay $450,000 rent in a few years.
So the Governor and Walt – City of Tuscaloosa- want some of these parcels that are next-to-most-valuable to be able to use them for whatever they want to use them for. Governor comes back and he says ok give us these 4 parcels so the Department of Mental Health can sell them and give all the rent (?) And that’s part of this agreement; I think it’s actually [ambient noise interfering]
Earnestine Tucker via Skype: can I get a copy of that faxed to me?
Dave Ryan: So the new deal … signed in 2012 – recorded in the courthouse since January 2013. New deal is Ol’ Colony only pays $1 year in rent; Department of Mental Health gets its 4 parcels back. These parcels on Northridge Drive have been released – now the Governor didn’t want to release it for “any public purpose.” That’s what the City wanted, not what Governor Bentley did. Governor Bentley said, “I’ll give you parcel 5 … but not for “any public purpose” and it’s not gonna sit there unused for 100 years like the other 600 acres we gave you back in ‘99. If we’re going to surrender that parcel away you’re gonna use it. So it is at Governor Bentley’s insistence that parcel must be used for the construction of a public school facility. Public School Facility. Construction must be complete by 2018. If not that parcel reverts back to PARA and then back to the Department of Mental Health. They get their parcel back. (Again describes location of property.)
Rest of conversation. So. So. I knew what the agreement said. I knew that’s what we had. For the life of me I didn’t understand how we got there especially without the Tuscaloosa City Schools being involved but if you look at the agreement. The agreement is not between – the City Board is not involved in any way. The Mayor and the Governor has released this parcel to the City of Tuscaloosa for the construction of public schools or its designee so they can hand it to us and say, “go build a school on it if you need it or we will go hand it to somebody else.” So, we finished that and let me touch briefly on something – let me say this: there is a 36 acre tract of land sitting adjacent to your high school and … very close to a middle and elementary school that you can have free. According to the appraisal from the Ol’ Colony Board it’s worth $3.6 million dollars.
Norman Crow: For the record I want to say this: that is the totality of what was discussed in this meeting. That meeting was only put together – there’s been a lot of misinformation out there – that meeting was only put together to gather facts to bring to this board. It does not force us to build the school. We do our due diligence. We decide if there is a need to be a school. We need to make a decision as a board. There was nothing else discussed in that meeting. That was it.
Elisabeth Davis: In a layman’s term question – are we saying this is free land?
Norman Crow: Free land…. It will be free land if the board through our due diligence deems that we need to build a school to remove overcrowding let’s say at Tuscaloosa Middle – at Rock Quarry Middle – if we decide as a board that we need that, this is an option. We may decide something different. We may decide that if we want to build a school, we don’t want to build it there so we aren’t being forced to do anything. So that’s – for the record I just want to throw that out there and that is all that was discussed in that meeting.
Earnestine Tucker…
[to be continued tape minute 21:03:12]
–Original 1999 Lease between the Department of Mental Health and PARA
–December 27, 2012 Amendment between the Department of Mental Health and PARA