The Riverside Unified School District Board of Education approved spending up to $24.5 million for two Iowa Avenue buildings Wednesday night, moving forward with the controversial purchase despite community criticism that the deal emerged without public discussion.
The 5-0 vote, with Board President Brent Lee abstaining due to a business conflict, authorizes the district to purchase buildings at 1450 and 1500 Iowa Avenue totaling 102,000 square feet. The properties are appraised at approximately $820,000 above the purchase price, according to Assistant Superintendent of Facilities Orin Williams.
Lee recused himself from the discussion and vote after disclosing that he owns partial interest in an escrow company that has done business within the past year with Doug Jacobs, whose company King Riverside Residential is named as a potential partner in the purchase documents.
Community members criticized the district for lack of transparency, noting the major purchase appeared on the consent calendar — typically reserved for routine items — and was never discussed during recent facilities planning meetings.
"You had a meeting where you did your facilities master plan and these buildings were not on the master plan," Sandy R. told the board during public comment. "Then you went and had your workshop meeting. Again, no mention of these buildings or any movement. So where's the transparency?"
The buildings would replace the district's current leased offices on Arlington Avenue, addressing what officials say is a decades-old need.
"We've been talking about the need for a district office for over 30 years. This is a serious need that's been a discussion on and off for a long, long, long time," said Trustee Dale Kinnear, who supported the purchase.
Complex Partnership Arrangement
While the board approved the building purchase, members emphasized they were not committing to a partnership with King Riverside Residential. Williams told the board that partnership details would return for separate consideration, possibly at the Oct. 16 meeting.
"It is not to exceed the full purchase price. But this gives us the flexibility if you so choose to enter into the partnership. We're not obligated," Williams said.
The potential partnership could include land swaps involving the current district office property and land near King High School. If both exchanges proceed, they could offset approximately $8 million of the purchase cost and save the district about $500,000 in real estate commissions, Williams said.
Community member Duffy Atkinson expressed support for a new district office but questioned the partnership structure.
"I'm 100% in support of this district moving to new digs for the district office. It absolutely needs it," Atkinson said. "But swapping it is, it's just a little weird to me."
Revenue Generation Plans
The buildings provide more space than the district currently needs, which officials framed as an opportunity for both future growth and immediate revenue generation.
"RUSD is a forever institution. We plan to be here for as long as the world keeps turning," Williams said. "Using a building for the long term, we actually get greater use life cycle out of the building the longer we have them."
Williams estimated the district could generate nearly $500,000 annually by leasing unused space. The district also plans to potentially relocate its central registration center to the new facility and sell that property.
Legal Questions Raised
Sandy R. pointed out that King Riverside Residential wasn't legally formed with the California Secretary of State until Sept. 3, though purchase documents were signed Aug. 12.
Williams said any legal issues regarding the partnership's formation could be resolved during the 60-day escrow period. He stressed that the district has sufficient capital to purchase the buildings independently if partnership negotiations fail.
"The liability really falls on the limited partnership, not necessarily on the district," Williams said. "We want to make sure that our partner is protected as well. But that would be resolved and cured during the escrow period."
Board Vote
Councilmember Amanda Vickers, who removed the item from the consent calendar to force discussion, said she had toured the buildings.
"The buildings are perfect buildings for a district office. They're very expensive. There's no question about that. But they're under appraised value," Vickers said.
The board approved the purchase authorization 5-0, with Lee abstaining. Voting in favor were Vickers, Kinnear, Hernandez Alexander, Tweed.
The district will proceed with the property purchase while continuing to negotiate potential partnership arrangements. Any partnership agreement would require separate board approval.
