Peary HS Leggett MPIA3

8/13/2019 Peary HS Leggett MPIA3

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OFFICE OF THE COUNTY EXECUTIVEROCKVILLE. MARYLAND 20850DouglasM.DuncanCounty Executive MEMORANDUM

July 25, 1995TO: Derick BerlageCouncil PresidentFROM: Douglas M. Duncan ~A ~A--County Executive r= ~~SUBJECT: Disposition of Peary High School

This is to inform the County Council as to the status of our efforts toward adisposition of the Peary Senior High School property, in accordance with the Council'sNovember 1994 reuse resolution. You know we have been involved in an additional solicitationand review of proposals for the reuse of this property, following the withdrawal of the FrenchIntemafional School in early 1995.

As we related in our last update,' seven proposals were received as a result of thesolicitation. Some of those proposals have since been withdrawn, due primarily to the enormouseconomic investment required to bring this property to useable condition. We have bad anopportunity to meet with members of the community on several occasions to discuss theremaining applicants. The community has been very direct and straightforward incommunicating its opinions to us in this respect. They judged many of the proposals to beincompatible with the character of the neighborhood, and well beyond the scope of permitteduses of the property as set forth in the Council's reuse.resolution.

The community believes, and we agree, that of the remaining proposals, only the-::..applicationof the Hebrew Academy is consistent with the intent of the Council's reusedecisions. This institution proposes to relocate to Peary its traditional instructional programs forstudents ranging from nursery age through 12th grade, and is willing to abide by the Council'srequirement that the Peary facilities remain available for community use. The community is

willing to support this user. All other proposals have been judged to be inconsistent with theapproved uses for the property, as they exceed the parameters set forth by Council. Thoseapplicants have already been notified of the decision.


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Derick BerlageJuly 25, 1995Page2

Our discussions so far with the Hebrew Academy indicate a good fit between theCounty's objectives and the Academy's needs. The Academy has made it clear during our disoasslensthat they would grant to the community ongoing access to Peary's recreational andassembly facilities, on a scheduled basis, through the Community Use of Schools Program.They ar e also willing to work with the Roller Hockey league to continue their use of theproperty. They have a combined student-teacher population of just over 700, and do notanticipate any difficulties confining their parking needs within the existing Peary property. Theyoperate five school buses during normal school hours, and expect that traffic in the neighborhoodwill not be adversely affected by their relocation to Peary.

They have been a tenant of the County at the funner Montgomery Hills JuniorHigh School for more than 20 years. They were, in fact, one of the first occupants of a closedschool in Montgomery County. They have done a good job of maintaining that property, andthe surrounding community is pleased with their management of the facility.

Although no documents have been signed, we are largely in agreement with theAcademy on the principal terms of a lease. These main provisions are summarized here for yourinformation:

Term - In order to have a reasonable recovery period for their investment, theAcademy needs a long term commitment. We are discussing an initial term of 25years, with options to.extend for an additional 15 years.Future Reuse As Public School - The Academy will not modify or change thebuilding in a way that would preclude its future use as a public school. Allchanges and renovations of the building are subject to review and approval by theCounty. The County will have the right to terminate the lease and reclaim theproperty for public school use after the initial 25 year term, with 5 years advancenotice.

r _._,.. Rent - The Academy proposes to pay 60,000 per year, increased annually by theConswner Price Index, The rent is to be abated for the first few years of the lease,in order that the Academy's resources can be directed toward the initial repair andrenovation of the property.Option.to Purchase - The Academy will have an option to purchase the property,but only with the approval of the County Executive and the County Council.


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OFFICES OF TiiE COUN1Y EXECUTIVEDouglas M. DuncanCountyExecutive

Bruce RomerChiefAdm~istrative OfficerApril 1, 1998

Dr. Yale Stenzler, Executive Directorlnteragency Committee on School ConstructionState of MarylandPublic School Construction Program200 W. Baltimore StreetBaltimore. Maryland 21201Dear Dr. Stenzler.

The purpose of this correspondence is to request approval of the Board of Public Worksto severalactions relating to the disposition ofMontgomery County closed schools. Our request relates to five differentproperties, and includes some proposed sales, leases and lease assignments, as follows:l. Sale ofl.arcbmont Eleroentarv School-The Board of Public Works approved the lease of this propertyto the Grace Episcopal School on May 25, 1984. All outstanding bond debt has since been retired. Inaccordance with the provisions of that lease, the Grace Episcopal School has the right to p~ theproperty, and they are now exercising that right. We propose to sell the Larchmont property to the GraceEpiscopal School for the amount of 2 million, which is based on three independent appraisals. Graceproposes to continue the use of the property for private educational purposes. A copy of the original

lease is enclosed for your review., Assignment of the Randolph Middle School Lease -The Board of Public Wor~ approved the lease ofthis property to the Greater Washington JewishCommunity Foundation on September 9, 1987. Alloutstanding bond debt bas since been retired. The Greater Washington Jewish Community Foundation isproposing to assign their interest in this lease to the Charles E. Smith Day School. They have the right tomake this assignment, in accordance with the provisions of their lease, given County approval. TheCounty is inclined to grant approval to the proposed assignment, contingent on approval of the Board ofPublic Works. A copy of the original lease agreement with the Greater Washington Jewish CommunityFoundation is enclosed for your review.. . , Lease. Assignment and Sale of the Belt Junior High School- The Board of Public Works approved thelease of this property to the Belt Elderly Housing Limited Partnership on October 11, 1989, for aproposed elderly housing project. That use was never implemented. All outstanding debt on Belt hasbeen retired. In June, 1995,the County executed a lease for the Belt property with Nanaksar Thath lsherDarbar, a non-profit religious organization proposing to renovate and use the property for privateeducational purposes. This lease was signed contingent on approval of the Board of Public Works. Thelease with Nanaksar is for a term of20 years, and includes a right to purchase the property for theamount of 1.75 million. Nanaksar now wishes to transfer its interest in the lease to the Yeshiva HighSchool. also a non-profit educational institution. Yeshiva High School wishes to accept this leaseassignment from Nanaksar, and also wishes to exercise the right to purchase the property immediatelyupon completion of renovations to the school. We are requesting the Board's approval of (i) the 1995

101~lonroc Street. Rockville. ~faryl:md20850301/2172500. rrv 217-6594. FAX217-2517~


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Dr.Yale StenzlerApril 1. 1998Page 2

lease between the County and Nanaksar Thath Isher Darbar, which approval has not yet been granted bythe Board. (ii) the assignment of the Nanaksar lease to the Yeshiva High School. and (iii) the proposedsale of the property to the Yeshiva High School. As set forth in the lease. the consideration to be paid byYeshiva will be 1.75 million. Yeshiva proposes to continue a private educational use of the property.A copy of the 1995 lease is enclosed for your review.4. Assignment and Amendment of the Lone Oak Elementazy School Lease - The Board of Public Worksapproved the lease of this property to the Boys and Girls Club of Greater Washington on July 25, 1984.All outstanding bond debt has since been retired. In February, 1998,the County approved theassignment of this lease from the Boys and Girls Club to the Centers for the Handicapped, Incorporated(CHI). CHI is also a tenant of the County at the former McDonald Knolls and Hillandale ElementarySchools. CHI will continue the use of the LoneOak property for non-profit community service agencies.

A copy of the original lease agreement with the Boys and Girls Club, as well as a copy of the LeaseAssignment and Amendment recently executed among the parties, are enclosed for your review.5. Lease of the Peary Senior High School - The Board of Public Works approved the transfer of thisproperty to the County on February 27, 1985, for an undetermined use. In April, 1996, the Countyentered into a long-term lease with the Hebrew Academy of Greater Washington for the use of theproperty. The Academy proposes to use the property for private educational purposes. This lease wasexecuted contingent on approval of the Board of Public Works, which has not yet been granted. A copyof the lease with the Academy is enclosed for your review.

Please contact Fred Edwards. Chief of the County's Division of Facilities and Services, should you needadditional information, documentation, or should you have any questions relating to the above actions,Mr. Edwards may be reached at 301-217-6000. Please accept our thanks in advance for expedient processing ofour request.

Sincerely,

Bruce RomerChief Administrative OfficerBR:wicEnclosures: bee: C E R ea d F ileDPW&T Graham Nor ton .DFS\W. Colbcn \RJ \BPW.wpdc: Fred Edwards, DFSMarc Hansen. Office of the County Attorney


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I her eby cer t i f y t hat I am an at t or ney dul y adm t t ed t opr act i ce bef or e t he Cour t of Appeal s of Mar yl and andt hat t he w t hi n i nst r ument was pr epar ed under mysuper vi si on.

- ;1u~l_Carol S f Rubi nAssi s tant Count y At t orneyGrant or ' s Address:Gr ant ee' s Addr ess: 850 Hunger f ord Dr i ve, Rockvi l l e, MD 20850110 Nort h Washi ngt on St reetRockvi l l e, MD 20850 .13300 Ar t i e Avenue, Rockvi l l e, MDNonePr oper t y Addr ess:Ti t l e I nsur er :

4056. smg: 94. 04182 NOV 2 1994/ft -p 2 ~y_? '7/

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AND t he sai d GRANTOR does her eby covenant t hat i t w l lwar rant speci al l y t he pr oper t y her eby conveyed, and t hat i t w l lexecut e such f ur t her assur ances of sai d l ands as may ber equi si t e.

W TNESS t he hand and seal of t he Pr esi dent and Secr et ar yof t he Gr ant or t he day and year f i r st above wr i t t en.ATTEST: BOARD OF ~DUCATI ON OF MONTGOMERYCOUNTY, MARYLAND

~ ~ .~ < M ACarol Fanconi , Presi dentCount y. APPROVED f or the Board of Educat i on of Montgomery

aul L. VanceSuper i nt endent of School sSTATE OF MARYLAND )

COUNTY OF MONTGOMERY )I her eby cer t i f y t hat on t hi s ~ day of c o b f n1994, bef or e t he subscr i ber , a Not ar y Pu. Dl i c i n and f or t heaf orement i oned St at e and Count y personal l y appeared CAROLFANCONI and PAUL L. VANCE, known t o me or sat i sf act or i l y pr ovent o be t he per sons whose names ar e subscr i bed t o t he w t hi ni nst r ument and- di d acknow edge same t o be t he act and deed oft he BOARD OF EDUCATI ON OF MONTGOMERY COUNTY, MARYLAND, and t hatt hey i n t he capaci t i es of Pr esi dent and Secr et ar y have si gned. t he af or egoi ng Deed on behal f of t he BOARD OF EDUCATI ON OFMONTGOMERY COUNTY, MARYLAND, f or t he pur poses t her ei n cont ai ned.

My Comm ssi on Expi r es:IO S lY N P IL PS~MUC sWEaM . AmAN>

~~b.PW.e~NOaryubl i c

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. - .. .d: J bi - t hWashi ngt on St r eet ,~ . . ~ : . :. : . . . , . .. : . : . : : : c. al l edhe COUNTY... i.:....:__;:. .C-'t .I= , : ,

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Parcel I D No. 13- 502- 954274DEED

THI S DEED made thi s day of1994, by and bet ween t he BOARD OF EDUCATI ON OF MONTGOMERYCOUNTY, MARYLAND, 850 Hunger f ord Dr i ve, Rockvi l l e, Maryl and20850, her ei naf t er cal l ed GRANTOR, and MONTGOMERY COUNTY,MARYLAND, c/ o t he Depar tment of Faci l i t i es and Ser vi ces, 110

Rockvi l l e, Maryl and 20850, herei naf ter

? . : ' . . . - ,- ._ , ; ( = ~~ : . . .: .~-

W I T N E S E T H:That i n consi der at i on of t he sum of TEN and NO/ l OOt hs

c..DoLLARS ( $10. 00) , and ot her good and val uabl e consi der at i on, t her ecei pt of whi ch i s her eby acknow edged, t he sai d GRANTOR doesher eby gr ant , convey i n f ee si mpl e, and r el ease unt o t he COUNTY, body cor por at e, i t s successor s and assi gns, al l t hose pi ecesor par cel s of gr ound and ot her r i ght s si t uat e and l yi ng i nMontgomery County, Maryl and, and more par t i cul ar l y descr i bed asf ol l ows:

BEI NG al l t hat par cel of l and conveyed t o t he Boar d ofEducat i on of Mont gomer y Count y, Mar yl and, by Edi t h E.Mat t hews, by deed dat ed Apr i l 28, 1958, and r ecor dedamong t he Land Recor ds of Mont gomer y Count y, M~~~a~d,at Li ber 2457, Fol i o 339, cont ai ni ng a t ot al 0~~~;~2-acr es, mor e or l ess. r . : ~ .f , , _ _ . .. : = . _ - . . : i BEI NG t hat pr oper t y known as Pear y Hi gh School ~~t,I . ~ .i .::: r : t e v B _ : : ~ ~ : : . . = TOGETHER WTH ALL the r i ght s , pr i vi l eges, easement s ,

appur t enances and advant ages t heret o bel ongi ng or apper t ai ni ng.TO HAVE AND TO HOLD the above granted proper t y and

r i ght s unt o t he sai d COUNTY, i t s successor s or assi gns i n f eeocc-.- ._,..,:nR -,Ol\11.rc..-:: R ~ . = ~I\.. -.~ . r;.i..,1 1 .... . t. \ J . .. ,,rw ..sLJ~:~Da:-=a;~ l~c:-:~fJl.ssas:; , .-;en 's . , Te:x~t~onfor M nt.g.. . - A , . v CDl.ill.' :Y< : / I - . . . _ ,~lfMJi~ _si mpl e.

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WEST FEINBERG, P.C.

March 3, 2010Page2Therefore, based on the analysis by VSI, we believe that the purchase price should be the

average of the three appraisals as discussed with you on our last conference call, adjusted for CPIper the Lease, and then reduced by 21%. Please note that since we have already agreed that theCounty's repurchase option will be equal to BHA's purchase price, adjusted for CPI, the 21%reduction in price will inure to the County's benefit as well if it exercises its repurchase option.We look forward to finalizing things with you when we meet on Monday. Thank youagain for all your assistance in this process.{ S J 1 : _

Lawrence S. StemLSS\aksEnclosurescc: Behnam Dayanim, Esq.Jennifer Zukerman

U:\Files\LSS\Hebrew Academy\Purchase of Bui ld ing\Valuat ion cov tr .doc


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D EPA RTM EN T O F G EN ERA L ~ ERV ICE SI si ah Legg e ttCountyExecutive

D av id E. D i:;eDirectorO c to ber 1 5, 201 0

M r. D av id L ev er, E xe cu tiv e D ire cto rM a ry la nd P ub lic S ch oo l C o ns tru ctio n P ro gram2 00 W e st B altiin ore S tre etB altim o re , M ary lan d 2 1 20 1RE: Form er Peary Sen ior H igh School

D ear M r. L ev er:M ontgom ery County en tered in to a Lease A greem ent dated M arch 29, 1 996 w ith the

Melvin J. Berm an H ebrew A cadem y (the A cadem y ), fo rm erly know n as The H ebrewA cade my o f G reater W ashin gto n, fo r the form er Peary S en ior H igh Scho ol pro perty lo cated at1 33 00 A rctic A ve nue , R ock ville , M ary lan d (th e P ro pe rty ).

T he M e lv in J. B erm an H ebrew A cadem y is exercisin g its right to purchase the P ro pertyin accordance w ith the term s of the Lease A greem ent. The A cadem y's right to purchase theProperty is subject to the approval of the Board of Public W orks. A copy of the 1 996 LeaseA greem ent is enclosed for your reference. I have also enclosed a copy of a proposedA m endm ent N o. 1 '\ w hich , w hen fully executed, w ill de tail the term s of the sale of the Propertyto the A cadem y. A copy of the proposed D eed and R eservation of Right to R epurchase is alsoenclosed.

By w ay o f histo ry , the A cadem y un derto ok an e xten sive re novatio n program w hichspanned a two year period between 1 996 and 1 998. The A cadem y has operated a high school onthe Property since 1 998. They have been a good steward of the Property and the A cadem y ishig hly re gard ed in th e co m mu nity .

The targeted settlem ent dateis D ecem ber 1 7, 201 0. It w ould be greatly appreciated if theBoard of Public W orks w ill consider the sale of the Property and advise the C ounty of anyrestrictio ns, co nditio ns o r requirem en ts the y m ay place prio r to that date . T he purchase pricethrough D ecem ber 1 7 is $1 ,91 4,860.00. The C ounty w ill w ork w ith your staff to determ ine theam oun t o f the sharin g of pro ceeds based. o n the fo rm ula fo un d in the 1 986 tran sfer agreem en t.

M on tgo mery C oun ty is co nditio nin g the sale o f the P ro perty subject to the C oun ty 's rightto repurchase if the P ro perty is so ld o r tran sferre d fo r an y use other than as a p ri va te educ at ional

Office of Real Estate .1 01 M onroe Street, 9th Floor Rockville , M aryland 20850 240-777-6001 . 240-777-601 1 FA X

www .m ontgom erycountym d.gov .Located one block west of the Rockville Metro Station


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Letter to Mr. David LeverOctober 15, 2010Page2institution. Further, the gymnasium, auditorium, and outdoor athletic fields will be madeavailable to the public at certain times through the Montgomery County Community Use ofPublic Facilities ( CUPJ


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Price -packet points out that the price Is 1,914,860 if settlementoccurs before December17, 201011 Packet fails to point out that theprice is then subject to another year of CPI adjustment

Public use - description omits Important relevant informationo Charging fees to cover operating costs including personnel for

security - This is current practice; CUPFcurrently does that forall public facility use - part of It Is in the rates and passes thosecosts through; requiring Insurance for field use,auditorium andgymnasiums is required of private entities for use ofpublicfacilities

County Right to repurchase -o Packet has it wrong - The county has 90days to notify of the

exercise of the repurchase and 180 days to tender the priceo Condemnation 2 issues in condemnation - fmv (jury) and public use

(judicial): fmv is stipulated eliminating need for aprotracted trial; public use allows for judicial review

Relocation Is not part of the condemnation proceedingConsistency with Master Plan - Park and Planning unanimously recommendshonoring the purchase option

Council Resolution 12-1545 pps. 280-1 of the Aspen Hill Master Plano Private school is preferred useand any use that does not

preclude eventual reuseas apublic school is prefeedo Existing outdoor facilities should be repaired and made available

for public useBenefits

Lease would need to be condemned to reclaim prior to 2023 (withpossession not available before 2028

o FMV of lease would need to be paid plus relocation and in alllikelihood contractual claims

Property can be reacquired at 1998 prices basically repaying BermanAcademy what it put in

Fields, gymnasium and auditorium are available in perpetuity ~ f\d\OV \ ~o 5~ u.~ FM\


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County Executive Staff Responses to Council Staff PacketNovember 29, 2010

Council Hearing testimony: Testimony was overwhelmingly in favor of the exercise of the option.

Of the 34 speakers signed up to testify, only a handful spoke againsthonoring the option to purchase.o elected officials; area civic associations; members of the Berman

Academy community; area residents all spoke In favor of theexercise of the option citing the extensive investment;restoration; positive community presence; cost savings to thecounty; availability of facilities; and, honoring the deal struck.

Packet failed to point out Bd. Of Education s_testimony that there is nocurrent need for the school

P. 2-3Prior study of 2005 transaction is irrelevant it evaluated a different deal and ~as not an appraisal

o Valuation is moreo Buyback is at same as what Berman Academy is paying/investingo Limited to school use onlyo Fields, gymnasium and auditorium are available for public use in

perpetuityo Study was flawed

points out that the npv of rents from2007-2023would be 912,1~5- ~of what the County will receive now

Option to Purchase - Disposition resolution 12-1874

o Any sale of the property Is subject to prior consent by theCounty Council which will consider the appropriate elements ofthe Aspen Hill Master Plan at that ~ime. Notice that option to purchase would bepart of the lease

Terms-


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I j us t w an te d to th an k y ou a ga in fo r a ll y ou r h elp a nd s up po rt a nd fo r th e te rr ific jo b y ou d id to da y fe nd in g o ff (c on ve rtin g?M arc E .W e c ou ld n't h av e d on e it w ith ou t y ou a nd w e h op e y ou ta ke u s u p o n o ur o ffe r to c om e v is it th e sc ho ol s oo n.A ls o, I d on 't k no w w ha t th e b es t w ay to le t Ik e k no w o f o ur p er so na l g ra titu de , th ou gh I k no w th e s ch oo l w ill th an k h imp ro pe rly a nd o ffic ia lly , s o p le as e p as s o n o ur p er so na l th an ks a s w e ll.F in ally , w h ile I h av e to a dm it th at th er e w e re p ar ts o f th is p ro ce ss th at w er e a ctu ally fu n a nd e xc itin g, I'm r ea lly h op in g t hath e B PW p ro ce ss is r ea lly b or in g.

L aw ren c e S . S te rnWest Feinberg , P.C.4 55 0 M o n tg om e ry A v en ueSu ite 775NB eth esd a, M D 2 0 8 14301-951-1520301-951-1525 (Fax)

T h e in fo rm a tio n c o ntain ed in th is c o m m un ic a tio n m a y b e c o nfid en tia l, is in te nd ed o n ly f or t he u se o f th e rec ip ie nt n a m eda bo ve , a nd m a y b e le ga lly p riv ile ge d . If th e rea de r o f t t: iis m e s s ag e is n ot th e in te nd ed rec ip ie nt , y ou a re h ereb y n otifie dth a t a ny d is se m in atio n, d is tr ib ut io n, o r c o py in g o f th is c o m m un ic a tio n, o r a n y o f its c o nten ts , is s tr ic tl y p ro hib ite d. I f y o uh av e rec e iv ed th is c o m m un ic a tio n in e rror , p le as e res en d this c o m m u nic a tio n to th e s en d er a nd d ele te the o rig in alm es sa ge o r a ny c op y o f it fr om y ou r c om pu te r s ys te m.IR S R u le s o f P ra c tic e req uir e u s to in fo rm y ou tha t t o th e e xte n t t his w r it te n c o m m un ic a tio n, in c lu din g a n y a tta c hm e n ts ,c on ta in s a d is cu ss io n o f a ny fe de ra l ta x m atte r, it is n ot in te nd ed o r w ritte n b y u s to b e u se d b y a ny on e f or th e p ur po se oa vo id in g fe d eral t ax p en al tie s t ha t m a y b e im p os ed b y th e fe d eral g ov ernm e nt . I n a dd it io n, t his w r itt en c o m m un ic a tio nm a y n ot b e u se d to s up po rt th e p ro m otio n o r m a rk etin g o f th e tr an sa ctio n o r m a tte r a dd re ss ed h er ein . A n yo ne o th er th anth e r ec ip ie nt w h o r ea ds th is c om m u nic atio n is a dv is ed to s ee k a dv ic e b as ed o n th eir p ar tic ula r c ir cu m sta nc es fr om a nindependent tax advisor .

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C \~~~./~. pr--cEtVEDH O H TG O H E R Y C O U N T YC O U N C \ LZ f f i5 J A N 2 1 P M l : 3 7

OFFICE OF THE COUNTY EXECUTIVE1 .0CKVILLE, MARYU.NO20850Douglas M. Duncan

County Executive MEMORANDUM0:13048Jan uary 2 0, 2 005

TO: T ho mas E . P ere z, P re sid en tM on tgo me ry C oun ty C oun cil~s ~~-Douglas M . Duncln ~ -County Executiv eF R O M :

SUBJECT: D ispo sition of Form er Peary H igh Scho ol SiteT he M e lv in J _ Berm an H ebrew A cadem y is the tenant under a lease en tered intowith M ontgom ery County in M arch 1 996 for the reuse of the form er Peary H igh School site onA rctic A venue in A spen H ill. A rticle ID of the lease grants the A cadem y the right to purchasethe property , subject to the appro val of the M ontgom ery C oun ty C oun cil and the C ountyExecutive , and subject to any restriction s, co nditio ns o r requirem ents w hich the C ouncil o rExecutive m ay elect to im po se o n the purchase. The Academy has ex ercised its right topurchase , and I am pleased to trarism it to the C ouncil m y recom mendation that the sale beapp ro ve d, sub je ct to th e re strictio ns, co nditio ns an d re quire me nts d escrib ed be lo w.By way of backgro und, this site w as the subject of an exten sive reuse process in

the 1 990s that included sign ificant public input. O n N ovem ber 29, 1 994, the C ounty Councila dop ted Reso lu tion 12-1874, w hich approved a lease of the property w ith an o ption to purchaseif supported by the A spen H ill M aster Plan. In 1 995, the County solicited proposals for the reusean d/o r dispo sitio n o f the site an d, afte r e valu atin g th e v ario us pro po sals that it re ceive d, theCounty selected the Hebrew A cadem y to be the tenant. The lease with the Academ y was signedin M arch 1 996.

A t the tim e the parties entered into the lease , the building was in a state of m ajordisrepair an d had beco me an eyesore to the neighbo rhood. There w as virtually no m ainten an ceon the property , there w ere frequent reports of van dalism and arson, the basem ent had standingw ate r, the ro of w as le akin g, an d n eighb ors co mplain ed abo ut crim in al activity takin g p lace o nthe site . It was clear that the tenan t would need to invest m illions of dollars in renovation coststo m ake the building fit fo r use as a school.

(j)


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Thomas E. Perez, PresidentJanuary 20, 2005Page2

As an inducement to the Academy to lease the property and make the requiredinvestment, the lease grants the Academy the right to purchase the property subject to theapproval of the County Council and County Executive, and subject to any restrictions, conditionsor requirements which the Executive and the Council may elect to attach to a purchase. There isno question that, at the time they signed the lease, the parties contemplated the eventual sale ofthe property.

In addition to the purchase option, the lease provides for a 25-year term,commencing after an initial 2-year renovation period that began on April 15, 1996 and ending inthe year 2023. The Academy has the option to extend the lease for three periods of 5 years each.The County has the right, after the 25-year term, to reclaim the property for public educationpurposes on 5 years' notice. The Academy is required to make facilities such as the gymnasium,the auditorium and the playing fields available to the community in accordance with theguidelines and regulations for community use of public facilities.

Approval of the sale is fully consistent with the intent and expectations of theparties, and I recommend Council approval of the transaction. However, I also believe that thesale should take place only under the following restrictions, conditions or requirements: The deed should limit the use of the property to its current uses-privateeducational use and, as incidental uses related and accessory to the mainuse,daycare and worship services, private educational day camp and privatereligious education center - and grant the County the right to reacquire the

property if the owner discontinues those uses of the property. The deed should require continued access by the community to thegymnasium, auditorium and playing fields through the Office of CommunityUse of Public Facilities. The County should be granted a right, commencing in 2026, to repurchase theproperty on five years' notice after a Capital Improvement Project for thereuse of the site by MCPS as a public school has been approved by theCouncil. The purchase price on any reacquisition by the County would be the then fairmarket value of the property, based on the limitations of the propertydescribed above.


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T ho mas E . Pe re z, P re sid en tJanuary 2012005PageJ

T he se co nditio ns pro te ct the C ou nty 's ab ility to re claim th e p ro pe rty fo r u se as ap ub lic sch oo l, w hich is co nsiste nt bo th w ith lan gu ag e in th e A sp en H ill M aste r P lan that th epro pe rty b e p re se rv ed fo r p ote ntial fu tu re u se as a p ublic scho ol an d th e te nan t's rig ht u nd er th ele ase to o ccu py the p ro pe rty fo r 25 y ears be fo re the C ou nty co uld g iv e n otice o f its in te n t to t ak eth e p ro pe rty b ac k. In a dd itio n, th es e co nd itio ns p re se rv e th e u se o f th e p ub lic .fac ilitie s b y th ecommun ity . Unde r t he c irc ums ta nc es , Ie li eve these r es tr ic ti on s , cond it ion s and lim it at ion s a refai r and approp riat e.In making thi s r ecommendat ion , Iave be en adv ise d by the O f fice o f the C ou ntyA tto rn ey th at th e re gu latio ns re la tin g to th e d is po sitio n o f c lo se d s ch oo ls (R eg. N o . 4 -9 9AM) don ot a pp ly to th is m a tte r b eca us e th e le as e w as e nte re d in to s ev era l y e ars b efo re th e re gu la tio nswer e adop ted . In de rs tan d th at th e Council's S taff A tto rn ey h as re view ed th is m a tte r a ndcon cu rs w ith th at c on clu si on .M y staff is av ailab le to assist th e C ou ncil in its d elib eratio ns o f this m atte r. If y ouh av e a ny q ue stio ns , p le as e c on ta ct my Spe cia l A s sis tan t, Je rry P as te rn ak , a t x2513.

DMD:jp


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O FFICE O F THE CO UNTY ATTO RNEYDoug la s M . Dunc anCounty Executive Charle s W . Thompson ,Jr .CountyAttorney

MEMOR N UMSep tembe r 2 0, 2 00 6

TO :F R O M :SU BJEC T: Peary School L ease/Purchase O p tion

This m emo ra nd um re sp on ds to th e q ue stio ns rais ed in y o ur Ju ly 1 7 , 2 0 06 memo ran dum toMr . Past er nak r ega rd ing the .subjec t l ea se .T he sh ort an sw er is: y es, y ou r re ad in g o f the le ase is co rre ct an d in acco rd an ce w ith th ep la in m e an in g o f th e d ocument We fu rth er ag re e th at th e le as e d ocwn en t re pre se nts th e e ntirea gre ement b etween th e partie s.T his is to fu rth er c on firm th at:I. The le ss ee h as a rig ht to p urch as e th e s ch oo l u nd er th e te rm s p ro vid ed in th e le as e

s ub je ct to th e Co un ty 's a pp ro val, w h ic h a pp ro va l w ill b e s ub je ct to a te st o freasonableness.2. T he C ou nty m ay te rm in ate th e le ase u po n fiv e y ears n otice to th e le sse e, b ut th et erm in ati on wou ld no t b ecome e ff ec tiv e un til a fte r th e in iti al 25-year le as e te rmexpires.3. If th e Co un ty e le cts to te rm in ate th e le as e, th e le ss ee is e ntitle d to b e re imburs ed fo ra ll a pp roved c ap ita l expenditu re s sub je ct to Ar tic le V I II , S ecti on 8 o f th e Leas e.T he se te rm s a pp ea r to b e fa ir a nd re as on ab le in th at th ey b ala nc e th e Co un ty 's re -u se n ee dfo r th e s ch oo l an d th e le ss ee 's n ee d to p ro te ct its s ub sta ntia l in ve stm ent m a de in imp ro vin g th efacility.

cc: Larry Stem , Chair, M JBH A Board Chair

[email protected] Street. Rockville, Maryland 20850-2540240-777-6736 ITD 240-777-2545 Fax 240-777-6706


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Mr . St anl ey Si egelSept ember 30, 1997Page 9

Land Sal e 4, t he Bl ai r Hi gh School si t e r equi r es an upwar dadj ustment f or date of sal e by say 15% and a downward adj ustmentf or ot her f act or s wi t h speci al emphasi s gi ven t o l ocat i on wi t h i t sout s tandi ng exposure on the Capi tal Bel tway. Net adj ustment , ofrounded, $3. 75 - $4. 00+/ sf l and area i s i ndi cated suggest i ng a uni tr at e of r ounded, $2. 15+ sf t o $2. 45+ sf of l and. ar ea, r ounded. t o$2. 25 - $2. 35~ sf l and- ar ea (pr i or t o adj ustment f or demol i t i on) .

Havi ng consi der ed the qual i t y and charact er of t he subj ect ,i t s Hi ghest and Best Use (both As I mproved and As I f Vacant )t he appr ai ser i s of t he opi ni on t hat t he pr oper t y i s t o be val uedpr edi cat ed upon an over al l uni t r at e ( Pr i or t o Demol i t i onof t heI ~provements ) of , r ounded, $2. 25 to $2. 35 per sq. f t . of Land Areawhi ch woul d i ndi cat e an over al l r at e of , r ounded $98, 010$102, 366+ per ac~e, rounded t o $100, 000 per acre and/ or $2. 30~ sfl and area pr i or to Demol i t i on of the present i mprovements .Mr . Ti m Hobson of Ace W ecki ng Company, Si l ver Spr i ng,Mar yl and, has conf i rmed i n Sept ember , 1997 a pr el i m nar y demol i t i oncost est i mat e of $425, 000 ( i ndi cat ed uni t r at e of $1. 93+ gsf ofBui l di ng Ar ea and/ or $. 50+ sf Land Ar ea) . The j ob i s est i mat ed t otake ei ght (8) weeks to compl ete and woul d i ncl ude removal of sl aband f oundat i on wi t h gr adi ng.Based upon a uni t r at e of $100~000 per acr e ( pr i or t odemol i t i on) t he i ndi cat ed val uat i on i s $1~954, 000 l ess demol i t i on

cost of $425, 000 whi ch equat es t o $1, 527, 000, r ounded t o $1, 500, 000or r ounded $1. 75+ s as of t he dat e of val uat i on. Thi s woul df ur t her equat e t o $26, 786+ per pot ent i al l ot ( assumng 56 l ot s)pr i or t o l ot f i ni shi ng cost s whi ch i s consi der ed wel l suppor t ed i nt he marketpl ace as evi denced by sal es of si m l ar l ot s and anal ysi sof sal es . of nearby hs>mes( See Addendum a par t hereof ) wi thi n thei mmedi ate nei ghborhood that general l y suppor t a - pr i ce range ofrounded $150, 000 - $170, 000 and up t o $200, 000+ as of the date ofval uat i on. The appr i ser i s f ur t her car ef ul t o not e t hat ani ncr ease i n yi el d above 56 uni t s. may r equi r e f ur t her anal ysi s aswoul d a decr ease i n pot ent i al l ot yi el d bel ow t he ant i ci pat ed 56l ot densi t y.The appr ai ser has consi der ed i n t he scope of wor k t hecondi t i on, l ayout , and ut i l i t y of t he pr oper t y and i t s Hi ghest andBest Use. I n connect i on t herewi th, Market Suppl y and Demand f ort he subj ect i n i t s l ocat i on as of t he dat e of appr ai sal and i nt ot he reasonabl y f oreseeabl e f ut ure have been anal yzed. I mport ant t ot hi s est i mat i on, pr i ces pai d f o~compet i t i ve and reasonabl y si m l arexi st i ng or proposed propert i es and/ or compet i t i ve devel opment shave been eval uat ed.


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From:Sent:'To:Ce:

Crispell, Bruce [Bruce_ Crispell@mc;psmd.org]Wednesday,.August 10, 2005 3:25 PMAfzal, KhalidTurpin, Janice

Subject: FW: Former Peary High School

Khalid,As per our conversation I am providing this e-mail concerning the former Peary High School facility.Peary High School was closed in 1984 and conveyed to the county in 1994. Prior to being conveyed to thecounty, it was determined that thls facil ity was no longer needed for public school use. This continues to be true.The Peary facility is within the current service area for Rockville High School. Rockvil le High School ls to thenorth of the Peary facility. This school was modernized in 2004 and has a capacity for 1,633 students.Enrollment is projected to remain in the 1,200 to 1,400 range for the foreseeable future. Therefore, ample spaceis available at Rockville High School.In other high schools in the vicinity of the fonner Peary High School facil ity space Is either adequate now, orconstruction is underway to ensure space is adequate in the future. To the east and south of the Peary facility,Kennedy and Wheaton high schools have recently been relieved by the reopening o f Northwood High School andformation of the Downcounty High Schools Consortium. To the west of the Peary faci ily, a large addition toWalter Johnson High School has recently been completed and further work to modernize the school ls underway,Capacity is projected to be adequate at this high school when this project is completed in 2009. Also to the westof the Peary facility, the modernization and expansion of Richard Montgomery High School is getting underwaythis summer. This project will ensure space is adequate at this school when the new facility Is opened In 2007.. .

Although high school enrollment has grown, the next high school that Isneeded further north than Peary, In thearea Shady Grove west area. The Peary facility's location is ill suited to these future needs.Let me know if I can be of further assistance.Bruce CrispellDirectorDivision of Long-range PlanningMontgomery County Public Schools(301) 279-3334

91712 5


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OFFICES OF THE COUN1Y EXECUTIVEDouglas M. DuncanCounty Executive

Bruce RomerChief Administrative OfficerOctobe r 12, 2005

TO :

SUBJECT:

Michael FadenCounc il S ta ff A t to rneyJerry Pas te rnak:~-Special A ssist the County Execu tiveD isp ositio n o f o nn er P ea ry H ig h S ch oo l S ite

F R O M :

This memo ra ndum re sponds to y o ur re qu est f or th e v iew s o f th e Exe cu tiv eb ra nc h o n optio ns a va ila ble to th e Coun ty w ith re sp ec t to th e e xe rc ise by th e Me lv in 1 .B erm a n H eb re w A cad em y o f th e o ptio n to p urch ase th e fo rm e r P e ary H ig h S ch oo l site asp rov ided in th e 1996 Lea se Ag re eme n t b etw e en th e Coun ty a nd th e Ac ad emy .Fo r t he re as on s d is cu ss ed be low , it is o ur p ositio n th at (1 ) th e le ase is av alid , b in din g oblig atio n th at g ra nts th e Ac ad emy an optio n to purc ha se th e p ro pe rty o nth e te rm s a nd c onditio ns d esc rib ed in th e le as e, (2 ) b oth th e Coun ty and th e Ac ad emyen te re d in to le as e tr an saction w ith th e c le ar u nde rs ta nd ing and expe cta tion th at t heAc ad emy would e xe rc ise its o ptio n to purc ha se th e p ro pe rty , (3 ) th e Ac ad emy h asp ro pe rly e xe rc is ed its o ptio n to purc ha se , a nd (4 ) th e Coun ty is le ga lly o blig ate d tocomple te t he t rans ac tion e ss en tia lly a s p ropos ed by t he County Execut iv e . Moreove r,a pa rt f rom th e le ga l o blig atio n , n o tio ns o f g ood f aith a nd fa ir d ea lin g - c on ce pts th at a lsoh av e le ga l sig nific an ce - c ompel th e c on clu sio n th at th e p ro po se d sa le sh ou ld b eapproved.B y w ay o f b ack gro un d, th e sch oo l w as clo se d b y M o ntg om e ry C ou ntyPublic S chools in 1984 and decl ar ed su rp lu s , and c onve ye d to th e Mon tg ome ry Coun tyGover nmen t, in 1994. From 1984 u ntil it w as le ase d to th e A cad em y in 1996, port ions o fth e p ro pe rty we re re pe ate dly s et o n tire a nd v anda liz ed , th e build in g was a llowed todet erio ra te in to a s ta te o f ma jo r d is re pa ir; a nd ne ig hbo rs con stan tly comp la in ed o fc rim i na l a ct iv ity on th e s it e.F o llow ing ext en siv e pub lic input, t he Counc il, o n Novembe r 29, 1994,adopted Resolu ti on No. 12-1874, w hich a pp ro ve d as th e p re fe rre d u se o f th e site th e

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