Cedar Rapids school board approves Garfield, Arthur elementary sale despite opposition

CEDAR RAPIDS — The Cedar Rapids Community School District has approved selling Garfield Elementary School to a local developer despite protests from a private school that said it would pay the district far more than what the developer offered.

The sale of another school site, Arthur Elementary School, drew no criticism.

The two schools were retired at the end of this school year, and the district announced its plans in early June to sell the schools to local buyers. The school board approved the sales at Monday’s meeting after hearing that the promise of a better Garfield deal didn’t convey the full picture.

Garfield Elementary, 1201 Maplewood Dr. NE, was sold to developer Steve Emerson for $160,000. Arthur Elementary School, 2630 B Ave. NE, was sold to the Eastern Iowa Arts Academy for $130,000.

At the Monday meeting, Amy McDonald, president of the Linn Christian Education Association, presented the school board with an offer to buy Garfield for more than twice as much — $375,000. The board governs Isaac Newton Christian Academy, a PK-12 private school at 1635 Linmar Dr. NE.

The Garfield property is worth just under $380,000, according to the Linn County assessor.

McDonald said Isaac Newton has a “track record” of repurposing former Cedar Rapids school buildings, having bought the former Adams Elementary in 1989 to house the academy.

About 10 people spoke Monday night about the Garfield sale, with the majority criticizing the lack of publicity about the sale and its non-competitive nature — the sales never went out for a public bid.

A matter of dollars

Karla Hogan, the district’s chief financial officer, said that while the Garfield sale price is lower than its assessed value, the overall value of the deal ― including the opportunity for two apartments within the property to be designated for district employees ― is greater than the property’s assessed value.

  Buy Photo

Under the deal, two apartments in the renovated school would be provided for free to school district employees or to those affiliated with the district --- such as student teachers. The tenants would pay utility bills.

The exact value of the deal is hard to determine because of the fluctuation in market rates for apartments, Schumacher told The Gazette.

The district has been losing millions of dollars to students within the district’s boundaries attending non-public schools, Hogan added.

In an October 2023 count, the Cedar Rapids school district lost more than $15 million because of students attending non-public schools and an additional $13 million because of open enrollment, Hogan said.

Last year, the district lost $1.5 million to students enrolling in Isaac Newton Christian Academy, Hogan said.

“It is not a sound business decision to sell these properties to organizations that will affect the overall financial health of our district,” she said.

In order for the district to remain financially stable, enrollment numbers must be increased, Hogan said. That was illustrated this school year when an increase of about 42 students meant the district did not have to make any budget cuts, she said.

Board vote

Ultimately, the school board voted unanimously to approve the sale of Garfield to Emerson. Board members Jennifer Borcherding and Kaitlin Byers were absent.

Several board members said the value of the deal will benefit the school district in the long run, help it work toward its strategic plan goals and preserve a historic building.

“There’s a tendency to look at the dollar signs, and I think Karla (Hogan) outlined for us that even if we do look at the dollar signs, this is a win-win for our community and for our students,” school board President Cindy Garlock said.

McDonald, from the Linn Christian Education Association, said she was disappointed with the board’s rejection of Isaac Newton Christian Academy’s offer because the private school is hoping to expand to accommodate its growing student population.

“It’s clear that (the Cedar Rapids Community School District) had other intentions,” McDonald told The Gazette. “Taxpayers will ultimately decide how they feel about it, whether it’s a subsequent bond or whatever issue goes to taxpayers ― taxpayers will respond appropriately.”

New state law

In May, Gov. Kim Reynolds signed a law that requires public school districts that are selling property to sell to another educational institution ― such as private schools, charter schools and public universities ― as long as the institution is the highest bidder.

The law goes into effect Monday.

Several speakers, including McDonald, brought up the legislation during their criticism of the Garfield sale.

At the meeting, Chad Schumacher, the school district’s director of operations, said the district worked with its real estate agent and legal counsel to ensure legal compliance.

With the school board’s approval Monday night, both sales are now final, he said.

Sale negotiations

Schumacher told The Gazette that the buyers of the two schools approached the district with interest in buying the buildings. The two sites never went to a public bid, and the two buyers were the only ones the district discussed sale with, he said.

Schumacher said the district began working with Emerson to plan the Garfield sale about a month ago. Emerson plans to turn the building into apartments, some of which will house district staff. Emerson did not return a call Tuesday seeking comment.

Arthur sale

  Buy Photo

The school board sold Arthur Elementary, 2630 B Ave. NE, to the Eastern Iowa Arts Academy for $130,000. The property is assessed at almost $261,000, according to the Linn County assessor.

Schumacher told The Gazette that conversations with the Eastern Iowa Arts Academy began three to four months ago.

Over the next decade, the arts academy will provide the district with $130,000 in programming at Cedar Rapids schools. Programming through the arts academy for the 2024-25 school year was also approved Monday.

Hogan said this 10-year deal has a value of at least $270,000 for the district.

The arts academy also will sell its locations at 1841 and 1847 E Ave. NE to buy Arthur.

No one spoke against the sale. Board members again highlighted the value the sale would bring to the community, with David Tominsky, the board’s vice president, noting the value of preserving the historic building and providing programming to students.

  Buy Photo

“I was just really pleased to see that partnership come together,” Tominsky said. “(The Eastern Iowa Arts Academy has) been working with this district for a long time … and the idea of the expansion of those programs over the next 10 years is going to be great.”

Garfield and Arthur, which opened in 1915, are among the oldest buildings in the Cedar Rapids district.

This fall, students from both schools will attend the new Trailside Elementary, which is located next to Arthur.

Schumacher has said the cost to operate Garfield and Arthur elementaries is about 53 cents per square foot more than the costs at the district’s new elementaries.

Comments: (319)-265-6849; isabelle.foland@thegazette.com