Friday, April 27, 2012

Questions New Hartford Central School hopes taxpayers never ask! Part 2 of many...

According to news articles, the property at 29 Oxford Road was leased by the New Hartford Central School in November 2005; or about 6 1/2 years ago.

NYS Education Law is quite specific regarding leasing of properties by school districts.

According to New York Education - Article 9 - § 403-B Leasing of School Buildings and Facilities (a):
No such lease shall be for a period of more than five years, except that the term of such a lease may exceed five years if the approval of the voters of the school district which will become the lessee is obtained before the lease is executed. [emphasis added]
According to the November 2005 Observer Dispatch article that we referenced in our previous blog, the New Hartford school board voted to lease the property in November 2005 and the business office was scheduled to move into the property in December 2005.  Given those dates, there obviously was no vote to lease the property for more than five (5) years prior to executing the lease because that would have required a special election.  So we have to assume that the lease signed in 2005 was only for five (5) years.

New York Education - Article 9 - § 403-B Leasing of School Buildings and Facilities (d) further says:
Any such lease may be renewed, provided however that the approval of the voters of the school district which will become the lessee shall be obtained before such renewal is executed. [emphasis added]
That means that prior to November 2010, a proposition to renew the lease would have had to appear as a referendum on a school ballot.

Does anyone remember voting to renew the lease on 29 Oxford Road in 2010?

We looked through our files to review NH School budget brochures received in the mail from the district each year, but we couldn't find where a vote was held to renew a lease on 29 Oxford Road. We scoured newspaper articles...still couldn't find anything regarding a vote to renew a lease for property at 29 Oxford Road.

So the next question is...how can the school still have a enforceable lease for the property at 29 Oxford Road when the lease was first signed in 2005, more than five (5) years ago, without first getting voter approval?

Of particular interest is the fact that in December 2010, shortly after a five (5) year school lease would have expired, the building was purchased by Ashford-Clinton Corp. owned by the school's bond counsel, Ms. Romano.

Equally as interesting is the fact that the Oneida County recording page which was attached to the deed for 29 Oxford Road, has a notation at the bottom of the page stating that after the deed is recorded it should be returned to Bond, Schoeneck & King, PLLC., 501 Main Street, Utica, NY 13501. That is the business address of Ms. Romano who is counsel for Bond, Schoeneck & King, PLLC...AND bond counsel for New Hartford Central School.

We also note that the November 2005 Observer Dispatch article states:
The district will rent the two-story house at 29 Oxford Road for $1,330 per month, Assistant Superintendent of Business Robert Nole said.
On March 29, 2012, in an article that appeared in the Observer Dispatch, New Hartford school district looks to purchase properties, Superintendent Nole was quoted as saying:
The school leases the Oxford Road building for $28,000 a year, so purchasing the property would save money, Nole said.
Do the math...$1,330 per month equates to $15,960 per year in 2005 and now Superintendent Nole states that the rent is $28,000 a year...that's almost double the yearly rent cost initially agreed to in 2005. What occurred that would justify that kind of increase over 6 1/2 years?

We are also puzzled by a handout forwarded to us by some concerned individuals who attended a recent PTA meeting. The handout states:
"The proposition is presented for a cost not to exceed $270,000 to account for any unexpected developments and/or additional expenses due to environmental remediation [emphasis added] which are not anticipated but might occur."
Environmental remediation??? Where? at 29 Oxford Road? The school has been leasing that property for 6 1/2 years and now we find out that it MIGHT need environmental remediation!
We also remind everyone that our previous blog sited Education Law whereby the commissioner is supposed to approve the lease "after determining whether or not the building meets all applicable standards for the health, safety and comfort of occupants". Was the State Education commissioner made aware of the possible environmental remediation that might be needed prior to the lease being signed?

If an environmental review wasn't done in 2005, shouldn't the school now obtain an environmental review BEFORE asking voters to purchase the property...just to protect the taxpayers in the district in case the remediation is more extensive that they think?

Let's face it...29 Oxford Road is an old house; according to the Town of New Hartford assessment database, the house was built in 1920. Shouldn't taxpayers know what they are buying?

The handout also states:
"The property is being conveyed for lower than its appraised value."
So we guess our next question is...Could we see a copy of the appraisal for 29 Oxford Road and the vacant George Ave. property?  

Oh, it gets better...stay tuned!

To be continued....

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