How the Ozark school district plans to pay for, use $8 million Dolby building near U.S. 65

Not long after the Ozark school district announced its purchase of the Dolby Laboratories Inc. building, questions surfaced about how it was paid for and will be used.

Superintendent Lori Wilson said she understood the questions because the Dec. 29 purchase, made public in early January, was negotiated behind closed doors. Districts are allowed to discuss real estate deals out of the public view when doing so might jeopardize the agreement.

"It can be tricky," she said.

Wilson said the location of the 161,000-square-foot building was a major factor in the decision to move quickly. A mix of warehouse and renovated office space, the commercial building is located in the 1600 block of West Jackson Street.

It is immediately next to the old Fasco building, which the district purchased five years ago and renovated into the Ozark Innovation Center and main headquarters. Side-by-side, the Fasco and Dolby buildings are on a high profile corner just east of U.S. 65.

Wilson said buying the building made sense because the district has grown steadily for years, space has been at a premium, and renovating an existing structure is less expensive than new construction.

"It's gives us lots of choices and opportunities," Wilson said. "It gives us the ability to look at things from a different perspective."

The district paid $8.27 million for the building through a lease-purchase agreement, which provides money upfront that is paid off over time, typically by operating funds. The district did not use reserve, or rainy day, funds and does not plan to seek a bond issue.

"It was a pretty good deal for us," she said.

She said when insuring the building, a standard step, the district learned its replacement value was $30.9 million and that value may go up once the district fully occupies the space.

Wilson said the district plans to recoup the purchase price through its Energy Savings Project. "The future savings we expect to see from this project will contribute to the cost of the building."

In a news release, Assistant Superintendent of Operations Curtis Chesick said the district will also likely sell unused buildings.

“By selling off the other property, it allows us to offset the purchase price and monthly operating expenses as well as consolidate some other services," he said.

No decisions about which buildings might be sold and when have been made public. However, before a property is sold, it must first be declared "surplus" by the board in a public meeting.

"The board is currently evaluating all potential properties that can be sold in the near future," Wilson said.

How will the building be used?

The Ozark Innovation Center and district headquarters is roughly 170,000 square feet. The new Dolby building next door is slightly smaller and includes 143,500 square feet of warehouse space.

Wilson said part of the warehouse space may be transformed into a training center, which could be used to bring staff together or provide professional development.

The building also has 18,000 square feet of renovated office space.

This spring, the district plans to move its maintenance and technology departments to the new building. Wilson said there is a portion with extra thick concrete walls that will provide additional protection for district servers.

“This building is giving us a lot of much-needed space, and I’m looking forward to seeing what this next chapter holds for Ozark School District,” Superintendent Lori Wilson said. “I want to thank the community and staff members who are serving on our Long Range Planning Committee and helping provide input as to how to best use this space for students in the future.”

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Asked how much renovations are expected to cost, Wilson said that depends on the scope of the work.

"We do not have a budget dedicated to renovation at this point," she said. "This will come in the future depending on the needs of the district."

Chesick said the building has a new roof, new HVAC system and recent office remodeling, which will save money.

The district will begin to discuss other ways to use the building during a Long Range Planning Committee meeting Jan. 16 at the Ozark Middle School. More meetings may also be scheduled.

“The intent is to use it for students, but that is up to the Long Range Planning Committee and the school board to decide what that looks like,” Chesick said. “This is an opportunity to save money on future growth.”

Want to go?

The Ozark school district will have its Long Range Planning Committee meeting at 6:30 p.m. Tuesday, Jan. 16 at the Ozark Middle School, 3600 State Highway NN. The meeting is designed to be a community discussion about current facilities and future needs.

This article originally appeared on Springfield News-Leader: How the Ozark school district plans to pay for, use Dolby building