It’s official ? Oxford Community Schools is now the proud new owner of a prime piece of real estate in downtown Oxford.
The district closed Monday morning on its $785,000 purchase of the historic Meriam building, located at 10 N. Washington St.
Eventually, the district plans to move its central administration and board of education offices to the vacant downtown building constructed in 1912.
Money from the $32.735 million school bond issue, approved by voters in November 2009, was used to purchase the building from local businessman Dave Weckle, who had owned it since 1996.
Superintendent Dr. William Skilling has previously stated that having the district’s central office located on M-24 will help ‘better market? Oxford Schools to the thousands of drivers who travel the state highway everyday.
He indicated the new location will also help stimulate the local economy as district employees patronize downtown businesses such as restaurants.
Mark Young, chairman of the Oxford Downtown Development Authority, said there are ‘mixed feelings? in the organization about the district’s purchase.
‘That’s certainly a sure signal that economically, things are very distressed right now,? he said. ‘They’re actually acquiring one of the most important properties in the village, in the core business district, at a decent value. It does speak volumes that such a commercially-viable piece of property, which could generate many tax dollars to preserve our downtown, is going away with this purchase. Based on our vision plan, it’s not exactly the direction we want to go because it now renders the property nontaxable.?
Because the Meriam building is now owned by a government entity, it will be exempt from all municipal, school, county and state property taxes beginning next year
However, because the building was still privately owned as of Dec. 31, 2009, the school district will be responsible for paying this year’s July and December tax bills from the village and township.
The 2010 State Equalized Value of 10 N. Washington St. is $335,330 and the taxable value is $13,280. Property taxes are determined by multiplying millage rates by taxable value.
The Meriam building’s taxable value is much, much lower than it should be because inappropriate assessing practices greatly undervalued the property at the time of its purchase in the 1990s. As a result, a total of $3,337 in real property taxes were paid on the three local tax bills for 2009.
‘It’s not like there’s a lot of tax revenue that’s going to disappear because we bought it,? said Tim Loock, assistant superintendent of business and operations for the school district.
But Young argued the DDA, as well as other government entities, is losing the potential revenue from personal property taxes that could have been collected on businesses that might have rented space in the Meriam building.
Young said there’s also the loss of increased revenue from real property taxes that could have been generated had the building been sold to another private owner, which would have allowed the taxable value to be increased to the ‘correct level.?
?(The DDA’s) whole reason for being is to prevent the deterioration of a downtown. We were established to reverse decline in these downtowns and this (sale) is the wrong direction,? Young said. ‘With no tax dollars being generated from a commercial business, it actually reverses the trend for economic development. From the DDA perspective, we can only hope there’s going to be enough (school) employees that will want to shop on their lunch hour and purchase jewelry or a glass door from Rick Williams or get their hair done or visit any other fine retail store in town. We can hope they would have enough impact to offset that (loss of tax revenue).?
Despite the loss of current and potential tax revenue to help preserve and improve the downtown district, Young indicated the DDA is trying to maintain a ‘positive outlook? regarding the purchase.
‘With the level of sophistication that the schools administration has shown, we actually look forward to, at minimum, some very good improvements to the property itself based on the fact they just passed a very comprehensive (bond) and they should be able to spend some capital funds on that property,? he said. ‘Being a partner in the community, we welcome them with open arms.?
In order to renovate the 9,500-square-foot Meriam building for its purposes, the school district is estimating it will spend $763,357, which will also be taken from the November 2009 bond proceeds.
‘The bids have not gone out for the work. That’s being put together,? said Loock said.
Right now, it’s uncertain when the central administration will be able to move in to its new downtown digs.
‘In a perfect world, we’d probably be moving in sometime in August, but that would mean everything happening as you would hope,? Loock said. ‘With renovations, it doesn’t usually happen that way.?
Currently, the central administrators and their staffs are being housed in temporary offices at the high school and middle school.
Plans are to transform the district’s old central office at 150 Pontiac St. into a pre-kindergarten/childcare center.
This too will be paid for with bond money. The cost estimate is $384,083.