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Local News

New office could cost schools

By VIRGINIA SHANK Tribune Chronicle
POSTED: November 22, 2009

Article Photos


WARREN - Warren Schools officials said they expect the money they save by consolidating offices into the former Trumbull Savings & Loan building to offset the estimated $36,500 the district will lose in property taxes generated annually from the property they plan to buy.

School board member Edward Bolino explained the board believes by consolidating district offices into one building, the district expects to save money on utility bills. He noted employees also will save time they now spend traveling from one building to another.

''Overall, it's a good investment for the district,'' Bolino said Saturday. ''The benefits far outweigh the cost.''

Last week the school board agreed to buy the building at the corner of 105 High St. for $1.4 million, with plans to consolidate its administration buildings. At that time school officials said it will cost another $100,000 for updates and upgrading of the building, which has been empty for nearly three years. The structure is owned by Rebhan Realty LLC and Ohio Limited Liability Co.

On Saturday Bolino said the building is in good condition and recently passed several inspections including building structure, roof, fire alarms and elevator. He said the district plans to begin moving into the building after closing on the purchase, which he expects to be completed within the next month.

''We're looking at replacing some ceiling panels, maybe some carpeting, but other than that it's in good shape,'' he said. ''And there is a lot of space for offices and for training, a big board room, which is always a plus. At one time they were asking $3 million for the building. We're really fortunate to be getting it for the price we're paying.''

According to the Trumbull County Auditor, the 0.88 acre property and building, which was constructed in 1977, are appraised at $1.56 million.

As an educational facility, and once the proper paper work is completed, the school district expects to be exempt from paying real estate taxes on the building. The annual tax bill for the building last year was $36,540 the bulk of which went to Warren Schools the county treasurer's office reported. Officials said they are not sure when the exemption would go into effect.

''We looked at the tax loss and considered it,'' said school board member Patti Limperos. ''But based on the information we received from our superintendent and treasurer and the figures they worked out in our five-year forecast and budget, we realized we could make this move and that it really is the best move to make.''

Treasurer Angela Lewis said school officials don't expect the loss in real estate tax revenues to significantly impact the district's budget because she is conservative at figuring anticipated tax revenue into the district's spending plan as a rule.

Offices will move from the district's current administration building at 261 Monroe St. N.W., and that building will likely be put on the market for sale. Offices will also move from the former Warren Western Reserve High School building, 202 Loveless S.W., which likely will be demolished, Superintendent Kathryn Hellweg has said.

Once completed, more than 100 employees will be working on Courthouse Square in downtown Warren, a factor Warren Mayor Michael O'Brien considers an asset.

''The building has been empty for years,'' he said. ''I'm just happy to see someone occupying the site. To have people working on the square is a positive move for the city.''

School employees would still be required to pay the city's 2 percent income tax they now pay. The mayor said he considered the impact the move will have on the city's budget by closing the door to the possibility of a business setting up shop there.

''A business could have brought in additional income tax from its employees to the city,'' he said. ''But that hasn't happened, and it didn't look like it was going to happen. And once the school sells its other buildings there's a possibility businesses will move into (those buildings) and bring employees with them, bring more tax revenue in. I think this will be good for the city in the long run.''

School officials have said no general fund money will be used for the purchase. The district is making an initial down payment of $625,000 and plans to finance the remaining $875,000. Part of the district's permanent improvement fund already set aside will be used for the down payment. The remaining cost will be paid over 10 years with money from the half percent bond passed at the same time that the Ohio School Facilities Commission bond was approved by voters to build all new schools in the district.

School officials said the district is looking to demolish Alden, Devon, Emerson, Horace Mann and Seacrest schools along with Warren Western Reserve. Other school buildings and properties likely will be sold, they said.

''We're paying over a million dollars a year in utilities at the Reserve building alone,'' Bolino said. ''Plus, all the work we would have to put into all of those buildings if we kept them, or even to build something new, that would cost a lot more money than what we're doing here. This is the best decision all around.''

vshank@tribtoday.com

 
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