District 99 Potential Property Sale Questions

1. Where is the property located?

The property is located west of the Town Center complex at the intersection of Woodridge Drive and Center Drive.

2. How many acres comprise the property?

The property totals 45 acres.

3. When was the property acquired?

The property was acquired in 1966.

4. What was the purpose for which it was originally acquired?

The land was purchased with the intent that as the school district's population grew, this location could serve as a third site for a high school.

5. District 99 enrollment has been growing steadily over the last decade. Don't we need to hold on to the land in case we need another high school?

The district retained Dr. John Kasarda, a professional demographer with the University of North Carolina at Chapel Hill, in 2004. An extensive study of data was collected and used (census, Village planning, birth rates, development activity, etc.) to develop high school enrollment projections through 2019. The projections showed the district's enrollment growing to approximately 5,800 students in the 2006-07 school year, and then dropping back to approximately 5,200 students by 2019. Historically, residents of District 99 have had several opportunities to build a third high school and they have always been defeated. Referendums were held in 1973 and 1974 to build a third high school on the Woodridge property, and both were defeated. In 1997, a referendum was held to build a third high school on the Woodridge property, and it too was defeated. In 1998, residents overwhelmingly approved additions and renovations to the current two high schools. The experience of the school district suggests that residents prefer two large high schools rather than three smaller schools.

6. North High School is more than 70-years old, would it not be more efficient to build a new high school on the Woodridge property than repair an old building?

Overall, North High School is not really 70-years old. Additions were completed at several points over the life of this building with the most recent being a major expansion completed in 2001.

7. Why is the property being considered for sale now?

• The 1998 referendum for additions and renovations did not address all of the school's capital improvement needs. There are 40-year old science labs at South High School, and 45-year old home economics and art labs at North High School that need upgrading. The Master Facility Plan did not address any of the site improvements needed at both schools
• Dr. John Kasarda's enrollment projections indicated that the site will not be needed for a third high school.
• The June 2004 community survey indicated that a majority of respondents believe the land should be sold.

8. Can just part of the property be considered for sale?

Community High School District 99 will consider a sale of parts or all of the property.

9. Will the property become more valuable if sold at a later date?

It is possible. However, the cost of construction for the improvement projects at the two schools is likely to increase with inflation. These projects are needed now and it could largely offset any possible increases in the value of the property.

10. Why does the District want to sell the property at fair market value?

District 99 has a fiduciary responsibility to the residents of all communities it serves (Bolingbrook, Darien, Downers Grove, Lisle, Oak Brook, Westmont, and Woodridge) to receive the fair market value for the land. All residents of the District contributed to the 1966 purchase of the land with their tax dollars. All the residents of the District should benefit from the revenue generated by the sale of the land. To accept anything less than fair market value would be to deprive the District of dollars needed to address and meet the educational needs of the students we serve.

11. How will the proceeds be used?

The proceeds will be placed in a restricted fund primarily to be used for long- term capital projects at both North and South High.

12. Will the proceeds be used to fund teacher or administrator salaries, benefits, etc.?

The proceeds will be placed in designated funds, none of which are designed for staff compensation purposes.

13. Will the proceeds be used to restore the $3.4 million recently cut from the projected 2005-06 budget?

The budget reductions were needed to bring expenditures into line with annual revenue sources. If the property proceeds were used to restore the budget cuts, within a few years the proceeds would be exhausted and the district would have to resume with budget cuts.

14. With the successful sale of the property, does this mean the district will not return to the community for an Operating Rate referendum in the future?

Not necessarily. The property proceeds would be used to fund one time, long-term capital improvements. The land sale dollars would not be used for daily operations. If the Board of Education or community determined that school programs/services should be added/enhanced, a referendum would be one source of new revenue for these improvements. However, new annual tax revenue derived by putting the property back on the tax rolls could affect the answer to this question.

15. Is there a legally binding document that gives the Village of Woodridge the right of first refusal? Won't that keep it from being developed for taxable purposes?

"Right of First Refusal" is a legal term predicated on certain conditions. A substantive right of first refusal with a proper legal foundation must be evidenced by more than a letter from one public body to another. District 99 acknowledges that there has been correspondence regarding the right of first refusal, but no legally binding agreement was ever concluded. However, in the spirit of the 1978 discussions regarding a process for Village acquisition of the property, the District 99 Board is currently commissioning at least one MAI (Member of Appraisal Institute) appraisal.

Obtaining such an appraisal will allow the Board to be fully informed as to the highest and best use of the property and make the most fiscally responsible decision for the students of District 99 and its constituents should we agree to sell the property. Woodridge may still purchase the property for its own use or for the future sale to prospective developers.

16. The Village of Woodridge wants the property to remain open space; why is this a bad or good idea?

Taxpayers ultimately judge the desirability of open space. It's really a matter of supporting open space with their tax dollars.

17. What happens if the school district needs land in the future?

If the school district should require land in the future, it would seek to acquire it based upon its intended needs.

18. Does Community High School District 99 have to accept any of the bids after the sealed bid process is completed?

Community High School District 99 is under no obligation to accept any of the bids received for the property after the sealed bid is completed.

19. Can Woodridge condemn the property; will they?

District 99 does not believe the Village of Woodridge has sufficient authority to exercise eminent domain over the property.

20. Who are the likely buyers?

Likely buyers include the Village of Woodridge, Woodridge Park District and residential developers.

21. What are the likely contingencies to the sale?

A zoning change is the most likely long-term contingency. A 30-day period may be requested by the buyer in order to verify the accuracy of the due diligence materials.

22. Are there wetland issues? Will there be an increase in flooding in the surrounding area?

A very small percentage of the property is designated as wetlands. The current assessment indicates that development of the site will include engineering that will reduce the amount of standing water on the site and also mitigate flooding to the surrounding area.

23. What issues may arise so that a buyer walks away from the deal?

The brisk real estate market could slow down and this changed condition could be caused by rising interest rates or another event of equal or greater significance.

24. What is the state of residential development in Woodridge?

Residential development in Woodridge is quite strong.

25. What are the development plans, if any? Will there be public use?

There are no development plans that will be considered until offers are received. The Village of Woodridge and/or the Park District are known to having an interest in the property, but their intended use has not been confirmed.

26. Will there be a zoning change? Would Woodridge allow denser zoning?

A zoning change is dependant on the offerer's intended use. It is expected that the Village of Woodridge will determine whether denser zoning is feasible based on what's in the best interest of its residents, the surrounding uses and the Comprehensive plan.

27. How long is the rezoning process, construction schedule (before we see increased tax benefit)?

The rezoning process could take between 6 to 18 months and the construction another 12 to 24 months. Additional tax revenue is likely to begin by 2008.

28. How much more traffic will development bring to the area?

It will not be known how much traffic a development will be bring to the area until the intended use is made known. It is worthy to point out that had this property been developed for the use of a third high school, some 2,000 students plus another 300 faculty members and other building support people were anticipated to visit this site on a daily basis. This is the reason the collector streets were developed on two sides of this property.

29. Will residential development bring a student increase? If so, how much?

Studies indicate that the greatest demand for housing in Woodridge is for empty nesters and seniors. This population segment has a minimal effect on student increase.

30. How much additional annual tax revenue will be realized by a development of the property?

It is anticipated that more than a million dollars of gross annual real estate tax revenue will be realized by the development of this property and almost three hundred thousand dollars of net revenue will realized annually by Community High School District 99.

Revised May 4, 2005