We previously posted 2 articles on this website regarding the School Board’s purchase of 49 acres of land for $6,632,000. We expressed serious concerns regarding many aspects of this purchase in those articles. (These articles are titled "Board spends $6,632,000" and "Improper Land Purchase??")
When the School Board presented the purchase of the land to the public last year, they told the public that they had obtained two appraisals of the land and that they both reported the land was worth more than what they paid for it. The School Board stated that based on the appraisals, we were getting a good deal for the land.
Right to Know Law Requests for Documents
After obtaining documents concerning this purchase through several Pennsylvania Right to Know Law requests to the School District, we have discovered very serious issues with the appraisals of the land which the School Board stated they relied on to establish the amount paid for the land.
- We found that the first appraisal was completed by the brother of the School District’s real estate agent who brought this land deal to the District. This brother owns an appraisal company that is located in the same office space with his brother, the real estate agent.
- The second appraisal was submitted by another appraiser, however, the report indicated it was also from the brother's appraisal company. Additionally, based on the date on the report, this appraisal was completed after the School District had already established the price they would pay for the land in a letter of Intent to Purchase that they sent to the seller.
- The School District paid $5,000 to the appraisal company owned by the real estate agent's brother.
There was a lot of money transacted in the purchase of this land:
- The School Board paid $6,632,000 in cash for the land
- The real estate agent for the School District received $182,380
- A Limited Partnership with the same address as the real estate agent for the seller received $1,561,310
- The remainder went to the seller
Conclusion: Our School Board used $6,632,000 of our taxes to purchase land that we won’t need for the foreseeable future at a price that was based on an appraisal by the brother of the School District's real estate agent who made a significant amount of money on the deal.
School Board reaction: The above information and more was presented to the School Board at their Board meeting on 3-16-09. The only reaction from the Board was a complaint from Board member Carr that the presenter did not provide a copy of what he said to the Board. Despite the serious issues raised, the Board had no comments or questions about anything that was presented.
