Cape school district sells board office; waits on Schultz

The Cape Girardeau School District has gained $300,000 from the sale of one vacant building, but the unloading of a second property remains in legal limbo.

The sale of Cape Girardeau's former board office at 61 N. Clark St. to Teen Challenge of Mid-America was finalized in January, with revenue going into the district's capital outlay fund, according to assistant superintendent Rob Huff.

"There are a lot of things we could do with that money. It's one-time revenue, so we can't spend it on something with a recurring cost," Huff said.

The district is restricted in how it can spend the $300,000 since money in the capital outlay fund can only be used on capital projects such as construction, repairs and major maintenance equipment purchases.

Huff said the district could use the money to build its fund balance, which has been depleted in recent years.

"Even with the major budget reductions we've made, we're still projecting deficit spending next year," Huff said.

The former board office will be the new location for Teen Challenge's thrift store, according to director Jack Smart. Renovations are expected to be complete by September.

Another vacant building owned by the district, the former L.J. Schultz School at 101 S. Pacific St., has been embroiled in a legal battle since 2002.

Last November, a judge ruled that a contract between the district and a Jefferson City construction company owner for the purchase of Schultz is valid. However, the district has as yet received no money from that ruling.

Ray Bax of RMB Inc.'s Bax Construction offered to buy the brick school in January 2002 for $2 million. His initial plan was to renovate the building for office space to house three state departments in downtown Cape Girardeau.

Bax lost the state bid to a proposal by Prost Builders of Jefferson City to renovate the 73-year-old Marquette Hotel on Broadway, and then attempted to withdraw his contract with the school district.

The school district has sued for the $2 million promised in the original contract, as well as damages for legal fees and interest that would have accrued if the $2 million had been in the district's bank account.

Bax appealed the November judgment in the school district's favor.

"Even though the judgment says the contract is valid, if Bax doesn't have the money, we're not going to get it," said Cape Girardeau superintendent Mark Bowles. "He's weighing his options now. We're in a waiting game."

The Shultz building is currently on the market through Thomas Meyer Real Estate Co. but no offers have been made so far.

cclark@semissourian.com

335-6611, ext. 128