Mt. Pleasant school district draws up purchase agreements for Iowa Wesleyan consideration

MT. PLEASANT — Monday night the Mt. Pleasant Community School Board met in a special session to review purchase agreements and timelines related to purchasing Iowa Wesleyan University property and to move for the district’s revenue purpose statement to be extended due to recently passed legislation.

In review of properties the district is considering purchasing from Iowa Wesleyan, Superintendent John Henriksen presented the board with three purchase agreements drawn up by the school district’s attorneys.

The first purchase agreement reviewed consisted of practice fields across from Maple Leaf Drive and the Maple Leaf Athletic Complex.

“The two critical pieces of information that we want to make sure we consider is the purchase price and due diligence on the property,” Henriksen advised the bored.

According to Henriksen that school made a purchase price offer of $115,000 for the three parcels of land containing the practice fields.

“In the other purchase agreements, it talks about a period of due diligence, and we felt comfortable with this particular property to accept it as is,” Henriksen said.

The second purchase agreement reviewed consisted of the Iowa Wesleyan Wrestling Facility, however, Henriksen informed the board that the district was informed late Friday that IW was already in a binding agreement with another entity for that facility.

The offered purchase price from MPCSD for the wrestling facility came in at $250,000, and they requested a 60-day due diligence period.

The third purchase agreement includes much of the main campus area of Iowa Wesleyan from the main parking lot by the Howe Hall past Pioneer Hall.

“A purchase price in this agreement is $1.135 million for those properties,” Henriksen informed the board. “ … Now our original due diligence period that we put in was 120 days after a conversation with Carl A. Nelson Construction.”

According to Henriksen, when he submitted the purchase agreement to the IW Board of Trustees and the USDA, they suggested changing that timing to only 60 days.

After a conversation with the school district attorney for this matter, Henriksen said that this would simply be a negotiation period. Henriksen was advised that 90 days would be acceptable, however 60 days would be a stretch to accomplish all necessary inspections.

Board member Josh Maher informed the board that he had learned the USDA representative expressed concerns that the longer due diligence period would be used by the school board to go to a vote.

“So, we’re at $1.25 million for this central campus and for the practice fields to become the owners of the gymnasium, the chapel, all those things,” Henriksen said. “As you guys know, it’d cost you three times that to build these facilities and we can put those into play right away.”

According to Henriksen, the gym, walking track, and offices around them would cost nearly $15 million to build.

Henriksen layout the following potential timeline for Mt. Pleasant Community School District’s purchase and development of the IW properties.

July 24 — Board reviewed purchase agreements for potential purchases.

Sept. 1 — If an agreement is reached, school would take possession of the practice fields.

Sept. 12 — A special election for the Revenue Purpose Statement Extension (RPS) will occur.

September-October — District will begin planning, prepping, and drawing up remodel ideas for central campus.

Dec. 1 — Following 120 days of due diligence, the school district takes possession of the central campus assuming all inspections come out favorably.

January 2024 — District could hold a hearing on the issuance of revenue bonds for expenditures related to the development of the IW property.

January-October 2024 — They would prepare for a General Obligation bond vote.

Summer 2024 — District could potentially transition some office spaces into the new property.

Nov. 5, 2024 — General Obligation Bond Vote would take place, which needs to pass by 60% majority.

According to Henriksen, if the vote to extend the RPS failed it would slow the process by up to a year.

“In the District what we're seeking to do with you with your consideration of this resolution, and a vote is to extend the language through the life of the Sales tax, and right now as per the legislature the life of Sales tax is 2049,” Henriksen explained this portion of the timeline which required a motion from the board to move forward.

“Mt. Pleasant Community School District would be asking voters to extend is the same language that is currently in place,” he explained.

Currently this sales tax is used by the district for remodels, updates, concrete, and such projects budgeted throughout the year.

“A district does not have to have a valid revenue purpose statement, but if you don't have a valid RPS, then you must expend the revenue for Property Tax relief in the order specified in the code and these revenues need to be expended to reduce these levies in this order,” he explained.

Board Member Melinda Huisinga expressed concern that the public may think the only purpose of extending the RPS is for the purchase of IW properties and that it will raise taxes immediately.

“This is not raising taxes on anybody,” board member Kevin Sandersfeld commented. “It just gives us the authority to spend it the way that fits us best.”

At the conclusion of the special session Monday night the board approved the motion for the special election and Henriksen informed them that the district would proceed with sending the purchase agreements along to IW Board of Trustees and the USDA with an attached list specifying which fixtures they would like to see remain with the properties.

Comments: AnnaMarie.Ward@southeastiowaunion.com