MSCS wants to sell building after spending $33M on it
by: Jessica Gertler
MEMPHIS, Tenn. — Memphis Shelby County Schools wants to sell the old Bayer building in North Memphis, claiming it will cost more than a $100 million in maintenance over the next decade.
The district bought the building on Jackson in 2018 for $6.6M. It was praised as a money-saving deal at the time.
The goal was to fix up the campus and make it their new headquarters. They said they wanted to move personnel and services into one spot and sell the 11 buildings they were currently occupying.
“I think once we actually consolidate and really see exactly what were working with, we will actually save more money,” board member Stephanie Love said at the time.
The district gave a cost analysis back then. They stated the new building would cost $69 million over the next 10 years, but it would cost $103 million if they continued to operate as is.
Officials said it would take two to three years to fix up, but seven years later, only IT, Security and Nutrition have moved onto campus — all while the district continued to throw money into repairs and renovation.
Due to possible contaminants from the former owner, the district had to enter into an agreement with the Tennessee Department of Environment and Conservation.
A letter was sent to former superintendent Dorsey Hopson in 2018. It stressed the district must enter into the same agreement as Bayer and become the liable party of “existing environmental conditions.” The remediation activities being performed by Bayer include “contaminated soil removal, extensive ground water monitoring, and sub-slab soil gas sampling and indoor air quality studies.”
The district hired a consultant company to conduct associated monitoring over the years and TDEC told us the consultant company and MSCS have been in full cooperation. It’s unclear how much the district spent on the consulting services.
WREG Investigators obtained hundreds of pages of invoices and receipts detailing the work the district paid for at the property. It included dealing with frozen water pipes, fixing wiring, multiple pumps and HVAC units, addressing lighting, the elevator entrapment, boiler inspections and more.
It was time-consuming work that added up quickly.
In fact, MSCS reports the district has spent $33.2 million dollars on the property. They predict 10-year maintenance needs will total $119.4 million.
Meanwhile, they’ve continued to operate some of the buildings they vowed to sell in 2018 when this deal was inked.
In a statement, MSCS officials told Your News Leader, “The district acquired the former Bayer building in 2018 based on the needs and information at that time. Investments since then have been focused on maintaining the property and preventing further deterioration. These expenditures protected the asset while options for its future were considered.”
Tuesday night, the school board will discuss another big decision.
The district is proposing moving the 250 district employees currently stationed on the former Bayer campus to a warehouse on Myers Road in Hickory Hill.
They would then sell the property, now appraised at nearly $8 million, to New Day Tennessee, which is a group that wants to add more support for teens aging out of foster care.
The group would take over costs and environmental monitoring.
MSCS has yet to say how much they would make off the deal, but did ensure us New Day would be responsible for the renovations at the Myers warehouse.
“Selling to New Day is a responsible step, not an attempt to undo a ‘bad deal.’ This approach puts the property in the hands of an organization with the resources to fully utilize it, while relieving the district of ongoing maintenance costs. It ensures taxpayer dollars stay focused on supporting students rather than additional facility expenses,” MSCS district staff said in a statement.
They added: “The sale will be in exchange for relocating many of the warehouse operations, including Nutrition dry food services, from 3030 Jackson to a warehouse 1.5 miles away. The relocation will involve renovating the new warehouse space, per FDA guidelines, and leasing the new space for ten years. The cost of utilities and maintenance in the new location will also be covered for ten years. The final costs for relocation are still being determined, but the current estimated value is $6,000,000.”
The district has also said if the facility is not sold to New Day, they will continue to search for a buyer.
They emphasized they will have to fork over $7 million this year to meet fire code and repair the steam boiler which heats the facility. If they don’t do that, the building will be uninsurable and burst pipes and further building damage are almost guaranteed.
About Post Author
