HUSD Sells Foss Creek Center to City, Acquires Swimming Pool

In a significant agreement that most parties said was a "win-win," Healdsburg Unified School District board voted unanimously Wednesday in favor of selling the to the City of Healdsburg.

HUSD will receive $6.5 million for the minus $1 million in various credits to and from the district and the city, for a total net cash price of $5.5 million.

As part of the agreement, the city will sell the -- the swimming pool next to -- to HUSD. That includes a stipulation that the city will have exclusive rights to continue using the pool every summer for its swimming classes and other activities.

"In this economy, with the current crises in state and school funding, this should help," said HUSD Board Vice President Genevieve Llerena. "This way, our kids won't be carrying the burden of all these cuts."

Healdsburg Assistant City Manager David Mickaelian said the city did not have the budget to buy the Foss Creek complex and also maintain operations at the pool, which it owns but which sits on school district grounds.

"I want to assure the public that the city will continue to operate the summer swimming programs every summer until 2027," said Mickaelian.

He was referring to a clause in the agreement that gives the city exclusive rights to operate the pool for about three months in the summer until the 50-year lease at Foss Creek expires.

Mickaelian said money to buy the Foss Creek complex, a former elementary school that the city renamed as Healdsburg Community Center and leases to house its Parks and Recreation Department offices, will come from redevelopment funds.

in his June 29 budget, Healdsburg will have to pay a fee to the state of $2.4 million this year and about $575,000 annually after that to continue with its redevelopment projects, Mickaelian said.

"They eliminated redevelopment, but if you pay the fee -- I don't want to call it ransom -- you can continue," he said.

Healdsburg was the sole bidder for the Foss Creek property at Wednesday's HUSD board meeting.

"I'm thrilled," said er Jay Tripathi when Mickaelian told commission members the news later Wednesday evening."We've been wanting a community center forever, and there's enough land there to do what we want to do.

"Congratulations to you for working this out," he told Mickaelian. "This is phenomenal."

Tripathi, however, said he was skeptical that HUSD would have the wherewithal to adequately maintain the pool. Pool maintenance, a community issue for many years, has been better since the city took over the facility, he said.

However, giving it back to the schools could be "signing its death knell," Tripathi said.

"I think we'll see the pool filled in with dirt in my lifetime," he said.

Mickealian, however, said he has discussed the maintenance issue in depth with HUSD Superintendent Jeff Harding. Harding was aware of the responsibilities -- such as resurfacing the pool -- that the district will be taking on, Mickaelian said.

In addition to taking over full responsibility for the pool, HUSD will also do $400,000 worth of repairs to Foss Creek prior to the actual transfer of ownership in 2013. That includes a new roof, new HVAC and plumbing.

"The reality is, we're all one -- the schools, the city," said Commissioner Richard Bugarske. "They're our kids, whether they're in the school facility or in a city facility."

Bugarske said he thought the agreement was a "great step," he told Mickaelian.

"Bravo to everyone for pulling it off," he said. "I'm looking forward to seeing how it unfolds."

Llerena and board members Vince Dougherty and Tony Pettis voted for the sale; board President Ted Crowell and member Judy Velasquez were absent.

"I think this will benefit both the city and the school district," Llerena said. "I think Foss Creek will be a good addition for the city, and the sale certainly does help our budget."

Specific terms of the sale are as follows:

--Price: $6.5 million

--Credits to city against purchase price: $770,200 for prepaid rent under lease agreement; $500,000 for value of community pool to be transferred to HUSD.

--Credits to HUSD against purchase price: $270,200 for value of tenant improvements made to date

--Cash deposit into escrow by the city: $5.5 million.

Mickaelian said Healdsburg City Council will need to adopt an ordinance approving the purchase before the city could deposit the money. Council likely will have a first reading of the ordinance on Aug. 1, and a second reading Aug. 15; escrow would be opened in about two weeks to a month or so after that, he said.