Fumbling Around in Property Development
A review of several property transactions recently entered into by the Washburn University administration indicates that these executives might want to spend more time on education and less on property development.
1729 SW MacVicar - WEA Office Renovation
On July 21, 2004, the Washburn University Board of Regents approved the acquisition of 1729 SW MacVicar at a contract price of $235,625. The county's appraised value of this property was $165,100 in 2005 and $173,200 in 2006. It appears that the University overpaid for this parcel of land.
1518 SW Washburn - Facilities Services
On February 8, 2002, the Washburn University Board of Regents approved the acquisition of 1518 SW Washburn Avenue for the relocation of the Facilities Services technical trade functions. The university reported land acquisition costs of $104,134 in the FY02 Financial Report. Considerable dollars were subsequently spent on renovation of this space.
The county's 2006 appraised value for this property was $266,560. On June 26, 2006, the WU Board of Regents approved the sale of this property for $200,000. In addition to selling the land for less than its apparent value, the University will spend an additional $214,000 to once again renovate space for the technical trade functions.
1510 SW 17th Street - Vacant Lot
Several years ago, this vacant parcel of land north of campus was purchased to protect the University's interest in land close to campus. The county's 2006 appraised value for this property was $98,910. The Board of Regents approved a negotiated purchase price of $118,000 for this property, with significant restrictions to be included on the deed to insure that any subsequent development on this property will not be harmful to the University.
So, for less than $20,000, this administration has sold out the University's control over this property. It is inconceivable that anyone at the Board of Regents meeting that approved this sale contract could seriously entertain the misconception that control through a deed document is equivalent to the control inherent in ownership.
1313 SW 21st Street - NEW Facilities Service Maintenance Space
The University has entered into a 10 year lease, with renewal options, at 1313 SW 21st Street for the technical trade functions of Facilities Services. The lease payment is $10 per year as long as President Farley is in his current position. If he leaves, the lease will be negotiated for a marketable rate. With over $200,000 invested in the renovation of this space, not to mention all the costs associated with relocation of these functions, it seems that the University should have negotiated a lease agreement with terms that were more certain.
Naturally, President Farley assured the board members that this was a quality space for the maintenance facilities. However, it appears that the maintenance personnel will be crowded in next to a retail operation. Furthermore, this "quality space" will require routine left-hand turns onto a busy SW 21st street and tedious, time-consuming stops at the heavily traveled intersection of 21st & Washburn. So, while the space may be "high quality", it certainly doesn't appear to rate very high on the convenience factor.