Back to sqUAre one : Private group pulls offer to purchase Fayetteville High School property
Posted on Thursday, July 24, 2008
The private development group that said it was willing to pay $ 60 million for the 40-acre Fayetteville High School campus has dropped its plans.
Campus Building Group had asked the district to give them an option agreement on the property, and its attorney said the group was willing to pay $ 60 million for the site. The option would provide an opportunity to review the property and develop terms and conditions of a sale contract.
"They got in touch with us (Wednesday ) morning," district spokesman Alan Wilbourn said. "I don't know what the factors are. They just decided it was not something they were going to spend more time on."
The school board decided in May to offer the building for sale to the nearby University of Arkansas for $ 59 million to help subsidize the construction of a new high school elsewhere. The board's preferred new location is 73 acres along Morningside Drive in south Fayetteville.
The UA responded with a $ 50 million counter-offer on June 6; the private offer from Campus Building Group was issued in late June.
Wednesday afternoon, the district released the following statement "By mutual agreement, the Fayetteville School District and Campus Building Group, LLC, will discontinue all talks and consideration of an option agreement between the two parties for the purchase of the Fayetteville High School property. The option agreement will be removed from the agenda of the July 24 meeting of the Fayetteville Board of Education."
The board meets at 5 p.m. today in the Adams Leadership Center, 1000 W. Stone St.
Superintendent Bobby New had said Tuesday he expected the option agreement to be delayed until August for further review.
The board was informed about the private group's interest at its regular meeting June 26. New had said he was first contacted about a month before the meeting but held off to evaluate the seriousness of their intentions.
At the June 26 meeting, Campus Building Group attorney David Fisher told the board their intentions were to redevelop the property as "upscale student housing"for UA students.
Fisher has not returned numerous phone messages for comment since the meeting. He didn't reveal any members of the group, but it is known that Springdale-based developer Gary Combs was involved with the proposal.
At the June 26 meeting, Fisher said," It is CBG's belief that the Fayetteville High School campus is truly a rare jewel and is definitely the finest piece of property in all of Northwest Arkansas. "
UA Chancellor G. David Gearhart was out of his office Wednesday afternoon, but university spokesman Steve Voorhies described the $ 50 million offer as a standing offer should the school district choose to act on it. The private group's decision to not pursue the purchase "really changes nothing, from our perspective," he said.
"We made an offer. That offer still stands. It hasn't changed. It's still on the table," Voorhies said.
The UA plans to finance the purchase with a tuition increase if the school board accepts the offer. Wilbourn said he wasn't sure the UA offer would be immediately discussed at today's meeting.
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