SB318: Bill Text

SB318,4 Section 4. 119.60 (2) of the statutes is amended to read:

SB318,5,19 119.60 (2) Except as provided in sub. (2m) and s. 119.61, city-owned property used for school purposes shall be sold by the city upon written request of the board if the common council adopts a resolution approving the sale. If, within 12 months after a written request by the board, the city has not disposed of the property, has failed to obtain a written agreement to dispose of the property, or has not provided the board with a written report giving specific reasons, which are not identified by the city attorney as constituting a conflict of interest, for its failure to dispose of the property or to obtain an agreement to dispose of the property, the board may retain a real estate agent to represent the board in its real estate transactions.

SB318,5 Section 5. 119.61 of the statutes is created to read:

SB318,5,21 119.61 Surplus property. (1) In this section:

SB318,5,22 (a) "Education operator" means any of the following:

SB318,5,23 1. The operator of a charter school established under s. 118.40 (2r).

SB318,5,24 2. The operator of a private school.

SB318,6,2 3. The operator of a charter school that is not an instrumentality of the school district, as determined under s. 118.40 (7).

SB318,6,4 4. An individual or group that is pursuing a contract with an entity under s. 118.40 (2r) (b) to operate a school as a charter school.

SB318,6,7 5. A person that is pursuing a contract with the board under s. 118.40 (2m) to operate a school as a charter school that is not an instrumentality of the school district.

SB318,6,10 6. An entity or organization that has entered into a written agreement with any of the operators identified in subds. 1. to 5. to purchase or lease a building within which the operator identified in subds. 1. to 5. will operate a school.

SB318,6,12 (b) "Eligible school building" means a school building in the school district operating under this chapter that satisfies any of the following:

SB318,6,16 1. The school building has been designated as surplus, underutilized, or vacant on any resolution adopted within the previous 5 years by the board, and the board is unable to demonstrate that the school building is no longer surplus, underutilized, or vacant.

SB318,6,20 2. The school building has been unused or satisfies any condition qualifying the building as an underutilized school building for a period of 12 consecutive months, including the 12 months preceding the effective date of this subdivision .... [LRB inserts date].

SB318,6,22 (c) "Underutilized school building" means a school building that satisfies any of the following:

SB318,6,24 1. Less than 40 percent of the square footage in the building is used for instruction of pupils on a daily, school day basis.

SB318,7,2 2. a. Subject to subd. 2. b., the school is not staffed on a full-time basis by a principal and instructional staff assigned exclusively to the school.

SB318,7,5 b. A school building that is staffed on a full-time basis by instructional staff assigned exclusively to the school is not an underutilized school building under this paragraph if the principal of the school also serves as the principal of another school.

SB318,7,8 3. The number of hours of pupil instruction offered in the school building in the previous school year was less than 80 percent of the number of hours of pupil instruction required to be scheduled under s. 121.02 (1) (f) 2.

SB318,7,14 (2) (a) No later than 30 days after the effective date of this paragraph .... [LRB inserts date], and annually thereafter, the board shall prepare an inventory of all school buildings in the school district operating under this chapter. The board shall sort the information in the inventory by the use of the building at the time the report is prepared and shall include all of the following for each school building in the district:

SB318,7,16 1. The total square footage of and the number of classrooms in the school building.

SB318,7,17 2. The portion of the total square footage being used for direct pupil instruction.

SB318,7,19 3. The number of pupils the school building can accommodate and the number of pupils receiving instruction in the school building.

SB318,7,21 4. The name of the principal and the number of full-time instructional staff assigned to the school.

SB318,7,24 5. For any school building not being used for direct pupil instruction, the manner in which the school building is being used, including whether the building is vacant or is being used for administration, storage, or professional development.

SB318,8,2 6. The duration over the past 36 months that the school building has been used in the manner identified under subd. 2. or 5.

SB318,8,5 7. Whether the board has designated the school building as surplus, underutilized, or vacant on any resolution adopted by the board within the previous 5 years.

SB318,8,7 8. Facility condition index information, including estimated short-term and long-term maintenance costs of the school building.

SB318,8,9 (b) The board shall submit a copy of the inventory required under par. (a) to the city clerk, the department, and the joint committee on finance.

SB318,8,12 (c) In addition to the inventory required under par. (a), the board shall annually notify the city clerk, the department, and the joint committee on finance any time a change is made to the use of a school building.

SB318,8,20 (3) No more than 30 days after receipt of the inventory required under sub. (2) (a) or of a notice under sub. (2) (c), the city clerk shall post a public notice on the city's Internet site. The city clerk shall include in the public notice under this subsection the address of and the information specified under sub. (2) (a) 1. and 8. for each school building identified on the inventory under sub. (2) (a), or on the notice under sub. (2) (c), that is an eligible school building. The city clerk shall include in the public notice a request for and instructions for submitting letters of interest from persons interested in purchasing an eligible school building.

SB318,9,2 (4) (a) The common council may designate a person to act as the agent of the city with respect to the sale of an eligible school building. Except as provided in par. (e), only education operators may purchase an eligible school building. An education operator may submit a letter of interest as provided in the public notice under sub. (3) to notify the common council or its agent of its interest in purchasing an eligible school building.

SB318,9,12 (b) Upon receipt of a letter of interest under par. (a), the city clerk shall update that portion of the city's Internet site containing information about the eligible school building to indicate that a letter of interest has been received and that other interested education operators may, within 28 days from the date of the update, submit a letter of interest to notify the common council or its agent of its interest in purchasing the eligible school building. If, at the end of the 28-day period, no other letters of interest in purchasing the eligible school building have been received, the city shall proceed under par. (c). If, within the 28-day period, one or more other letters of interest in purchasing the eligible school building have been received, the city shall proceed under par. (d).

SB318,9,15 (c) Except as provided in par. (d), no later than the first business day after the end of the 28-day period under this par. (b), the common council or its agent shall do all of the following:

SB318,9,17 1. Determine whether the prospective buyer is an education operator under sub. (1) (a).

SB318,9,19 2. Make information about the eligible school building available and show the eligible school building to the education operator.

SB318,9,20 3. Consider the financial capability of the education operator.

SB318,9,22 4. Negotiate a reasonable purchase price and terms with the education operator. The purchase price shall be based upon either of the following:

SB318,9,25 a. The purchase price paid for other comparable school buildings sold within the previous 5 years, with adjustments to the purchase price made by taking into consideration the useable square footage, age, condition, and location of the eligible school building and any other pertinent information about the eligible school building and the school building or buildings used for purposes of comparison.

SB318,10,4 b. An appraisal prepared for the eligible school building that includes the purchase price paid for comparable buildings, if available.

SB318,10,7 5. Complete the sale of the eligible school building in accordance with standard city practices. The common council or its agent may condition closing on any of the following:

SB318,10,9 a. Proof of financing for the purchase and any improvements proposed for the eligible school building.

SB318,10,13 b. Inclusion of a reversionary clause permitting the common council to recapture a building that remains unoccupied 24 months after the date of closing due to a failure of the purchaser to complete improvements proposed for the eligible school building.

SB318,10,23 (d) If, within 28 days after an education operator submits a letter of interest under par. (a) at least one other education operator submits a letter of interest under par. (a) or (b), the common council shall initiate a competitive, request-for-proposal process and shall identify members of a committee to select the most suitable buyer of the eligible school building. Once the most suitable buyer is selected, the common council shall proceed with the selected prospective buyer as required under par. (c) 1. to 5. In evaluating proposals submitted under this paragraph, the committee selected by the common council may not consider the organizational status of the education operator nor the type of school proposed to be located in the eligible school building, but shall consider all of the following:

SB318,10,25 1. The nature of any improvements proposed for, and the amount of any investment in, the school building.

SB318,11,1 2. The quality of the design proposed for the school building.

SB318,11,2 3. The fiscal capability of the education operator.

SB318,11,6 (e) Any person may submit a letter of interest to purchase a school building that has qualified as an eligible school building for more than 48 consecutive months. Upon receipt of a letter of interest under this paragraph, the common council shall proceed with the prospective buyer as required under par. (c) 2., 3., 4., and 5.

SB318,11,8 (4) If any eligible school building is sold as provided in this section, the net proceeds of the sale shall be deposited into the school operations fund under s. 119.46.

SB318,6 Section 6. Initial applicability.

SB318,11,12 (1) The treatment of section 119.61 (4) (e) of the statutes first applies to a school building that qualifies as an eligible school building under section 119.61 (1) (b) of the statutes, as created by this act, on the effective date of this subsection.

SB318,11,13 (End)