Manteca Farm Property/North County

PlanningOctober 15, 2013

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1. Background/recap of initial impetus for considering the sale of land in Manteca—Kathy Hart

2. Due Diligence—report from our land planner to provide assessment of the land value and marketability of the site—Andy Plescia

3. Need to relocate Agriculture program—Kathy Hart

Outline of Presentation

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4. Timeline if the District pursues sale/lease of the Manteca land and planning for relocation of the barn/agriculture program—Mike Hill

5. Overview of a vision and planning process for a larger educational vision for a north SJ County facility including the barn/agriculture program—Kathy Hart

6. Analysis of the District’s fiscal ability to meet capital improvement needs and develop a North County facility—Mike Hill

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The District received an offer to purchase the Manteca Farm. After reviewing the offer, the Administration recommended initially against entertaining it for a couple of reasons:

1. Some of the terms of the offer did not seem advantageous to the District.

2. The District could not accept the offer without strictly following a process prescribed in the Education Code.

1. Impetus—Kathy Hart

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The offer strongly suggested that the District should look further into the value of the land, the process for selling it, and the wisdom of maintaining the South County farm for the Agriculture program.

The Agriculture program had been promised a new barn which should not be built on the Manteca Center site if the District were persuaded to sell the farm.

1. Impetus continued

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The Administration recommended that the Board give permission for further analysis of the value of the land and legal process for selling/leasing so the Board could make an informed decision on the initial offer, and the Board agreed.

The Administration returned to the Board in closed session with the requested information and the Board rejected the initial offer, but asked the Administration to come forward in open session with full disclosure of the due diligence process.

1. Impetus continued

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2. Due Diligence—Andy Plescia, Land Planner We asked Mr. Plescia to answer the

following questions:1. Why should the District consider selling/leasing the Manteca Center property?2. Assuming that the Agriculture program could be accommodated in some other way, what are the negatives?3. What actions will the District need to take to proceed with the processes for sale or lease?

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The Administration believes that Delta MUST have a farm property where the current and future agriculture programs can be housed. We MUST preserve the agriculture programs.

The North County is a possible alternative site for the agriculture programs. 69% of agriculture students are from Stockton, Lodi/Galt, or Sacramento County. Relocation could improve the enrollment and create opportunities for renewal and expansion.

3. Commitment to relocate the Agriculture program—Kathy Hart

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Manteca Unified School District Office Agriculture Site could also provide an alternative site for the Animal Husbandry program.

Need to determine whether to build the $900,000 barn/shade structure at Manteca Center side or somewhere else. The District should not build the barn and later decide to sell the farm.

3. Commitment to relocation the Agriculture program—continued

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4. Timeline: Selling the farm/Relocating the Agriculture program/barn—Mike Hill

EXAMPLE OF POSSIBLE PROCESS AND SCHEDULE:PROPERTY DISPOSITION AND ARICULTURE PROGRAM FACILITY REPLACEMENT

2014 2015 2016 2017 2018

Property Disposition and

Development

1. Process to Declare Property 6 months

as Surplus

2. Request for Proposals and Formal 6 months

Bid Processes

3. Negotiation of Property 6 months

Disposition Agreement

4. General Plan / Zoning Amendment / 18 months

Annexation Approvals (Developer)

5. Design, Funding and Pre- 12 months

Construction Activies (Developer)

6. Start and Continuation of

Site / Project Development

Agriculture Program Facility

Replacement / North County Site

1. Determine Program Needs / 15 months

Preliminary Design

2. Evaluate Liberty Road Property 6 months

Based on Program Parameters

3. Search for Suitable Sites / 6 months

Evaluate Alternative Sites (1)

4. Seek CCCCO Approval / 9 months

Purchase Selected Site

5. Construction Documents 9 months

6. DSA Approval 6 months

7. Conduct Bid Process / 6 months

Award of Bid

8. Construction of Facil ity (Site 24 months

Infrastructure, Buildings) (2)

Footnote:

(1) Step 3 would only be conducted if the Liberty Road property does not meet the program needs for the Agriculture Program Facil ity

(2) The specific timing for opening of the new facil ity wil l in part depend on the phasing for build-out of the development site

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Update the Educational Master Plan to align with sale of the farm, relocation of Agriculture programs, and vision of a center in the North County, for example, “Farm to Fork concept”; Agriculture: animal husbandry, ag.business, ag. manufacturing, transportation/logistics; partnerships with UC, Davis, North and South County Unified School Districts, and/or local farmers/processers, vintners, etc.—inclusive process

Update Facilities Master Plan—inclusive process

5. Vision and planning process for North County including Agriculture programs—Kathy Hart

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Revise Strategic Goal 3, Recommendation 3.2

Begin enrollment planning to achieve Center status (1000 FTES)

Begin planning to meet initial operational costs

Assess the suitability Liberty Road property as a site

Explore and assess alternative sites in the North County

5. Vision & planning—North County continued

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6. District’s fiscal ability to meet capital improvement needs and develop a North County site—Mike Hill

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Sources over 10 Years $67,280,000

Measure L contingency $10,000,000 Possible Measure L reallocation/planetarium $28,000,000 RDA funds $ 1,050,000 Parking Fund $ 500,000 Off year election budget $ 2,730,000 Passport loan repayments $ 2,100,000 Manteca land sale/lease* $21,250,000 Prop 39 funds $ 1,650,000   Uses over 10 years $47,322,000

Deferred maintenance** $29,412,000 Facilities upgrades $ 1,160,000 North county facility** $16,750,000   Residual end of 2022-2023 fiscal year $19,958,000

*For illustration purposes only, true values and timing unknown. ** Other capital projects identified but lacking definition to be able to determine costs

Unallocated Capital/Other Sources and Possible UsesIncorporates 10 Years of Activity

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Continue the movement toward selling/leasing the Manteca Farm property; do not build the barn on this land. The District can structure the sale so the Agriculture program can remain at the Manteca site until the alternative site is ready or partner with Manteca Unified to use their facilities.

Come to the Board in November with a resolution to begin the process of surplussing the Manteca Farm.

Recommendations/Conclusions—Kathy Hart

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Begin assessing the suitability of the Liberty Road site for a North County Center featuring an Agriculture focus.

Begin looking for alternative sites in the North County in case the Liberty Road property is unsuitable.

Begin the process of updating the Educational Master Plan, the Facilities Master Plan, and the Strategic Plan to reflect this new direction.

Begin Enrollment and Operational Planning to achieve Center status

Recommendations/Conclusions

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Questions??