Cape school board sells Schultz School; sale contingent on state tax credits

The Cape Girardeau school board Monday night agreed to sell the aging Schultz School to Jackson developer Chad Hartle for $1.7 million.

But the sale is contingent upon Hartle's company, RCH Development Inc., receiving tax credits from the Missouri Housing Development Commission by Jan. 31, school superintendent Dr. David Scala said.

Hartle wants to convert the 93-year-old brick school at 101 S. Pacific St. into senior citizen housing.

The school board accepted the offer in a late-night closed session less than a month after hiring a real estate broker to help sell the building.

Five board members voted to accept the offer, Scala said. Board member Laura Sparkman abstained. Board member Tim Arbeiter excused himself from the discussion and didn't vote or abstain, Scala said.

The superintendent said Arbeiter didn't want to participate in the discussion because he works for the Cape Girardeau Chamber of Commerce, which promotes economic development projects.

Last fall, the board rejected the single bid of a Kansas City, Mo.-area construction company that wanted to buy the building and property for $350,000. School officials said they thought they could sell it for a higher price.

If this sale goes through, the district will have to relocate its Alternative Education Center, which is housed in part of the building, Scala said. The center serves about 100 students a day including those taking daytime classes, attending an after-school program or serving short-term suspensions.

By approving the sale well in advance of the transaction being finalized, the district has plenty of time to look at where to locate the alternative school.

Proceeds from the sale would be earmarked for capital improvements, Scala said. That could include funding for construction of a new alternative school, he said.

In other business in closed session, the board on a 5-2 vote amended Scala's contract to extend it two years. Board members Charles Bertrand and Tom Reinagel cast the dissenting votes. The new contract will run through June 30, 2010. It calls for Scala to receive 3 percent pay raises for each of the final two years of the contract.

A proposed tax break for the Town Plaza developer renovating the former Sears building could cost the Cape Girardeau School District $126,000 in property tax revenue over 25 years, city officials said Monday.

That would amount to a revenue loss to the district of about $5,000 annually, Mayor Jay Knudtson and other city officials told school board members at a special meeting at the district's central office.

School board member Charles Bertrand said that's a relatively small amount of tax revenue for the district. "It's a drop in the bucket," he said.

But he urged the mayor to make sure that any tax breaks don't cause serious financial problems for the school district.

Knudtson promised the city council would consider how any tax break for a developer would impact the school district.

The special school board meeting was held prior to the board's regular meeting. At the regular meeting, the board accepted the 2005-2006 audit report.

The board received the report four months later than required under the district's policy. Under district policy, the audited financial statements are to be presented to the board by Oct. 31 each year.

mbliss@semissourian.com

335-6611, extension 123