The board approved the lease in a 5–4 vote that will see Yale School lease the Evans building effective Aug. 1.
Evesham’s Arrowhead Development and other nearby homes and business are getting new neighbors.
The Evesham Township School District Board of Education used a special meeting last week to approve its five-year lease agreement with private school operator Yale School for use of the Evans Elementary School building.
The board approved the lease in a 5–4 vote that will see Yale School lease the building effective Aug. 1.
The board was originally scheduled to approve the lease at its June meeting, but it tabled the approval as several members asked for more time to review the lease and “do its due diligence,” according to board president JoAnne Harmon.
According to Harmon and Superintendent John Scavelli, the terms of the lease are unchanged from what the district had made available to the public in early June.
The lease is a full-service lease with the district for five years, with Yale set to pay about $665,000 for the first year.
As full-service lease, Scavelli said the district would still maintain the building and pay any associated bills.
Scavelli said the district estimates about $250,000 in net profit from the facility for the first year, with that amount increasing in future years, leaving the district with an estimated $1.3 million in profit at the end of the five-year lease.
“It’s our building, and they (Yale School) pay us one revenue, one rental amount, and then whatever expenses there are would come out of that amount. All that’s factored in,” Scavelli said after the meeting.
Of the 78,213 square feet of space available at the Evans facility, Yale School is leasing more than half, with Yale taking 44,384 square feet throughout the building’s front wing, the wing facing Route 73, the cafeteria/all-purpose room, the gym and the library.
The portion of the building the district constructed in 2000 as an addition to the school will remain unoccupied, along with the rear wing of the facility.
Scavelli has noted that in the future, the BOE may chose to also lease those unused portions to another entity or use them for the district.
Harmon described the lease agreement as a positive step forward for the district and a great opportunity.
“I’m happy we’re able to take in revenue, and Yale’s a great school and we’re looking forward to having them,” Harmon said after the meeting.
Yet not all members of board agreed with Harmon.
During the meeting, board vice president Sandy Student said he was “troubled” by the deal and questioned the board’s representation, noting the district’s broker had worked with Yale School in the past on other issues.
Student said he was also troubled the district had only received one bid for the property.
“My rationale is we should always be able to protect our taxpayers, and I don’t know that this lease does,” Student said.
However, BOE solicitor William Donio said it was his legal opinion the lease was protective of the township’s taxpayers, as the lease contains language and numerous, standard provisions similar to a number of commercial lease agreements his office has produced in the past for large organizations.
“It is a fully integrated contract that was fully negotiated as a result of a public bid process, which complied with the law in all aspects,” Donio said.
After the meeting, Student also said he believed the district was overestimating the amount of profit it expects to realize from the property by underestimating the amount of property taxes the district will have to pay on the facility.
Focusing on just year one of the agreement, Student said the district is estimating to pay $113,000 in property taxes. However, Student said he doesn’t believe that figure includes the parking lots and fields on the property.
Student said he questioned the township’s tax assessor about the property and was told an assessment would be more than $113,000, possibly upward of $180,000.
Township tax assessor Blackwell Albertson and township director of finance Tom Shanahan did not confirm any potential figure for the future tax assessment of the Evans facility, but the two did say the assessment would be a percentage based on every piece of the facility where Yale has control.
The two said the exact assessment would be known in October.
Scavelli could not be reached for comment regarding the tax assessment of the facility.
During the meeting last week, Board member Trish Everhart said it was her opinion that whether her fellow board members agreed or disagreed with approving the lease agreement, all had worked and conversed with one another about their decisions.
“It was not just rubber stamping or rushed or any of that,” Everhart said. “We spent a awful lot of time and we’ve had very heated conversations among ourselves.”
Board members who voted to approve the lease agreement included Harmon, Elaine Barbagiovanni, Jeff Bravo, Everhart and Joe Fisicaro Jr.
Board members who voted against included Student, William McGoey, Dennis Mehigan and Nichole Stone.
After the BOE approved the lease, Yale School’s representative Nikitas Moustakas praised the negotiations and thanked the board.
“We look forward to being in your community,” Moustakas said.
The next regularly scheduled meeting of the ETSD BOE is scheduled for Aug. 17 at 7 p.m. at DeMasi Middle School.
