District 241 finalized an agreement on the old Central High School on Wednesday, freeing up $400,000 in bond money that can now be spent on other maintenance or construction projects in the district.

Thursday, March 21, 2002

District 241 finalized an agreement on the old Central High School on Wednesday, freeing up $400,000 in bond money that can now be spent on other maintenance or construction projects in the district.

Relief was visible in the faces of district officials as they announced at a press conference that the old high school property had been sold to Ed Ryman, a Hastings developer, for $1, the appraised value of the property. The appraisers placed that value on the property because of the cost of renovating schools for other uses and because of the asbestos in the structure.

The district also agreed to assume responsibility for up to $200,000 of the costs related to rehabilitating the structure, including the removal of asbestos as portions of the building are remodeled for use by new tenants. And some of that amount may end up being covered by state equalization funds, said Mark Stotts, district finance director.

Ryman considers himself a redeveloper of properties that are no longer viable in their original form, and plans on working with the community as the old high school building is renovated and rehabilitated.

&uot;I’m wide open to any possibility. I have no preconceived or preset plans in mind at this point,&uot; Ryman said. He plans on working through local real estate and development professionals as he considers options for the property.

Among the things that made the property appealing to Ryman is the Cap Emmons Auditorium.

&uot;I think the auditorium is beautiful. I really would like to see it utilized, but it also needs to make economic sense,&uot; he said.

Ryman has had experience redeveloping a number of properties, mostly old shopping malls, but this project in Albert Lea will involve his first school building. In a project of a comparable scope and size, Ryman was the redeveloper of the former Cedar Mall in Owatonna, which he ultimately ended up selling to an insurance company for its offices.

Albert Lea’s location, at the crossroads of two interstates, as well as the presence of the Mayo health system in the community, are two elements that make Ryman think the location is a good one. He anticipates that some of the building will be turned into housing – perhaps assisted-living apartments – while some may be used by smaller, specialty retailers or other types of businesses. He’ll know more after he’s heard from people interested in making use of the property.

And while the district escapes demolition costs, the community gains through the additional tax revenue that would be generated with the property in private hands, he said.

The district had originally set aside $600,000 in bond funds in case they had to pay to demolish the buildings. With the purchase, the future of the building is no longer the district’s responsibility, and most of that money will now be freed up for use on other projects, said Tom Eaton, board member. Since the funds came from the bond referendum that provided money solely for construction and remodeling projects, including the new high school, it cannot be transferred to the general fund or used for expenses like teacher salaries, transportation or other programs.

While there had been the option of selling off the building piecemeal, the district decided to pursue an agreement with someone willing to purchase the whole building, said David Prescott, district superintendent. With a piecemeal approach, the district still would be responsible for asbestos removal and the demolition of any portions of the structure left unsold, he said. This deal removes those obligations from the district.

Businesses that had approached the district about using portions of the building can now work with Ryman on those ideas, said Prescott.

The sale was negotiated by Sealed Bid Marketing, who had been hired to market the property to prospective buyers, working locally with Ron Holtan Realty. The deal with Ryman took nearly a year to finalize; with a purchase agreement signed last summer and the closing on Wednesday morning.

&uot;This is a good day for the district,&uot; said Prescott.