State pays average of $4.6M to gain land for schools

With 224 more sites needed, needy districts' overhaul could exceed $1B
Thursday, November 04, 2004 • BY DUNSTAN McNICHOL • Star-Ledger Staff

The price tag for acquiring land for new schools in 31 needy districts could top $1 billion if the state continues to pay for sites at the current rate, state officials said.

According to a report by the Schools Construction Corp. task force, the state already has spent $141.7 million to acquire sites for 31 schools, or an average of about $4.6 million a site. Acquisition costs include the purchase of land and other actions such as relocating property owners displaced by the new construction.

Under development plans submitted by the needy districts four years ago, the state would need to acquire 224 more sites to complete New Jersey's massive school construction program. If the $4.6 million average holds up, the bill for buying the new sites would total more than $1 billion.

"There's an awful lot of variables, but at the most simplified, you could make that assumption," said Jack Spencer, chief executive officer of the Schools Construction Corp. "If the long-range plans that come in next year still require that number of sites, you could potentially be at a figure that looks like that."

In light of the imposing land costs, the corporation's Land Acquisition Task Force recommended that state officials take steps to limit land needs, such as "placing a greater emphasis" on renovating existing school buildings rather than replacing them with new structures on newly acquired property. It also suggested construction of multistory buildings to cut down on how much land is needed for the new projects.

The report, adopted by the Schools Construction Corp. last week, also recommends using roadways adjacent to new schools for fire lanes and parking to keep land costs down.

In addition, the task force said districts that abandon old schools for new buildings should be required to turn the vacant buildings over to the state so the corporation can sell the sites to help cover building costs.

Districts like Newark have proposed selling vacant schools and using the funds to pay for extras like swimming pools and media centers in new buildings -- items the state will not pay for under the program.

"What we're trying to do is leave no stone unturned (to) manage the cost and amount of land acquisition," Spencer said.

Based on land costs so far, the total bill for site acquisition could end up accounting for more than one-sixth of the $6 billion lawmakers authorized for the court-ordered overhaul of decrepit school buildings in the state's neediest communities.

Details on the land costs have emerged at the same time lawmakers are examining the ballooning costs of the school building program.

State Sen. William Gormley (R-Atlantic), an author of the legislation that set up the school construction program, said lawmakers will have to review the land acquisition process as they determine how to bankroll the school building program moving forward.

"Obviously, when we talk numbers of this magnitude I assume the Legislature would want to thoroughly review them," Gormley said. "Even if it's appropriate, you have to find where you can find the money."

Lawmakers set up the school construction program four years ago, in response to the state Supreme Court's landmark Abbott vs. Burke ruling involving state funding for public schools in the state's neediest communities.

In their 1998 ruling, the justices said "crumbling and obsolescent" buildings in poor communities deprived students of the opportunity for the thorough and efficient education the state constitution requires lawmakers to provide.

They accepted a state plan to coordinate a massive rebuilding effort in the poor communities that at the time was projected to cost less than $2 billion.

Lawmakers expanded that plan to include $2.5 billion in grants for the nearly 600 school districts not included in the court order; $100 million for vocational-technical school districts; and $6 billion to meet the mandate for the 31 needy communities covered by the court case.


Dunstan McNichol covers state government issues. He can be reached at dmcnichol@starledger.com or (609) 989-0341.
© 2004 The Star-Ledger. Used by NJ.com with permission.

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