News & Observer | newsobserver.com | Wake to compare building, leasing

Published: Dec 02, 2006 12:00 AM
Modified: Dec 02, 2006 03:31 AM

Wake to compare building, leasing

Bond passage doesn't mean district won't consider developer partnerships

 

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Wake school leaders say they expect to be leasing schools from developers sometime in the future, but for now they want to know more about how the costs compare to building schools themselves.

A Nov. 15 article in The News & Observer that suggested the district was putting the brakes on the idea set off a firestorm of debate over the future of the proposed public-private partnerships.

Board member Horace Tart, a proponent of the partnerships, said he was barraged with e-mail messages, some accusing him of using the proposal to get the bond passed.

"At no time has the board not been willing to pursue public-private partnerships," said Tart, who is on the facilities committee. "We're going right now as fast as we can go to get the job done."

A bill approved by the legislature earlier this year allows developers to build schools and lease them to districts for 40 years. After that time, districts would have the option of buying the schools at a discount.

Proponents of the bill say private companies can build schools faster and cheaper than school districts. In Wake County, the partnerships have been championed as a way to slow the pace of schools being converted to the year-round schedule and ease the burden on taxpayers.

Wake voters recently approved a $970 million bond issue that will increase property taxes.

Don Haydon, the district's chief facilities and operations officer, was misquoted in the Nov. 15 story as saying the successful bond referendum meant the district did not need to commit to other alternatives such as partnerships with developers.

Haydon said Friday that at the time he was responding to a question about the ability of his staff to build nearly $1 billion worth of schools. He said at the time that if Wake were a smaller system, the district might need to hire a private company to help. But as it is, his staff can handle the massive building program.

He said Friday that the district backed the legislation that allows partnerships, and plans to pursue them. He said his staff recommended that the district open a traditional school at the same time as one built by a private company so the cost and efficiency of the two schools could be compared. The district would also evaluate the results of similar partnerships in Charlotte.

This approach would put off a broader program of partnerships for several years, but Haydon said that until the district compares actual costs he can't be sure the partnerships would be cheaper or faster.

"It is something that is new to us, and it represents a long-term commitment," Haydon said. "Obviously we're dealing with taxpayer funds here, and we want to make sure that whatever we go forward with is fiscally sound."

School board member Ron Margiotta said the school district's staff members are reluctant to support partnerships while doing the research.

"Just put yourself in their position," Margiotta said. "If we go to public-private partnerships, it's going to put them out of business on those particular projects."

The school board has yet to weigh in on the issue. It could decide to try more or fewer partnerships.

Staff writer Marti Maguire can be reached at 829-4841 or mmaguire@newsobserver.com.

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