In the last issue, we wrote about how to determine your school’s needs before developing a land-acquisition plan. In this month’s edition of The Source for Trustees, we’ll discuss how to take action on your plan.
If you determine your school needs to purchase land or adjacent buildings, charge the Buildings and Grounds Committee or appoint an ad hoc committee to begin quietly structuring a plan to buy or lease-purchase real estate. Thoroughly investigate all available land to determine if it would truly benefit the school and not drain funding from other vital programs. Also ensure the property doesn’t come with “hidden” issues, such as environmental hazards or zoning restrictions. Take the following steps to initiate the process.
Appoint a Trustee to monitor the real estate environment in your locale. This should be someone conversant with realtors, building codes, zoning restrictions, etc.
If you identify property that should be acquired, you can tap into your endowment for the funding to buy the real estate, unless a major donor has been cultivated to write the check or make a gift of the property in a tax-advantaged way. Don’t overlook owning land as a key component in your endowment portfolio mix. If you don’t have an endowment or donor lined up, dip into your cash reserves. Implement a plan to replenish the reserves in your next budget planning cycle.
Be cautious and silent in your investigations. Avoid stirring up nearby property owners. You don’t want them to dream of a big “payday” because they think your school has deep pockets and is desperate to purchase the property.
Consider the ways in which you might someday use the acquired land—you need not develop the property for school use immediately. If it is a property that can be leased before you can develop it, this will provide a return on your investment.
Set aside the time to look at your school's future needs for land. Delaying this process can hamper your ability to expand, deliver quality programs, and serve future generations of students.
Additional ISM resources:
The Source for Trustees Vol. 13 No. 10 Acquiring Enough Land, Part One
The Source for Trustees Vol. 12 No. 3 The Building and Grounds Committee’s Role in a Leased Facility
The Source for Business Officers Vol. 8 No. 9 How to Expand Without Expanding—One School’s Solution to the Challenges of Space Restriction
Additional ISM resources for Gold Consortium members:
I&P Vol. 39 No. 9 Land Acquisition Plans: Context and Action
I&P Vol. 36 No. 1 The 21st Century School: Facilities
I&P Vol. 36 No. 1 Limited Area, Moderate-Cost Space Configurations
