Sale of the Kindergarten Center

Public Hearing Notice – Sale of Real Estate Property (100 School Lane)
February 10, 2023
Chester County Justice Center – Court Room 12
201 West Market Street
West Chester PA 19380

At the March 28th meeting of the Phoenixville Area School District Board of Directors, the Board authorized the sale of the Kindergarten Center Property (100 School Lane) to Toll Brothers, Inc. in the amount of $4,600,000.

The next steps in the process are:  (School Code Section 707)

1. Legal prepares the “Petition for Sale of Real Property”
2. After the Petition is filed with the court of common pleas, the court sets a hearing date
3. Notice of the hearing must be published once a week for three successive weeks in a newspaper of general circulation and in the legal newspaper in said county
4. Posting of the property, by hand bills, announcing the hearing
5. An affidavit of posting and an affidavit of publication are filed with the Court, evidencing that the posting and advertising were completed as required
6. Hearing is held on the Petition
7. If the Court approves the Petition, the judge will sign an Order allowing the sale of the property
8. Once the sale has been consummated and the deed executed and delivered, the School Code requires that a return of sale is made to the Court. 

map    K center   

Timeline of Events: 

March 2017: Board directs administration to obtain an appraisal of the Kindergarten Center in preparation for sale 

July 2017: First appraisal of Kindergarten Center received.

Summer and Fall 2017: A few parties express an interest in the Kindergarten Center.  Board asks administration to develop an (RFP) request for proposal for the disposal of the Kindergarten Center. 

July 2018: Board placed the following in the superintendent’s goals for the year:  
•Bring Board to final decision regarding disposition or use of the following District owned buildings:  Kindergarten Center, East Pikeland ES, Hallowell House, Pot House Rd house (proposed for Life Skills) by May 2019 

August 2018: 
During the public hearing on the purchase of the Hares Hill property, administration recommends selling the Kindergarten Center and East Pikeland properties after the purchase of a property which will accommodate a new school. 

•Sale of Kindergarten Center on hold while the purchase of the Hares Hill property is completed.  
•Hares Hill property purchased by school district, November 2019.    
•Board directs administration to begin process to sell the Kindergarten Center.  
•East Pikeland School has a lease agreement and is currently cash flow positive.   

Spring 2020: Request for proposal (RFP) issued for a realty group to sell the Kindergarten Center.   

June 2020: One response received from the request for proposal.  The committee discusses the response and determines that it is too expensive and that another request for proposal should be prepared.   

August 2020: The Phoenixville Area School District actively engaged in selling the Kindergarten Center property.   
October 2020: A bid of over 3 million is received from a builder.  It is determined not to pursue a realtor and the Board asks administration to continue its advertising for the sale of the Kindergarten Center property.  The Board authorizes a new appraisal of the Kindergarten Center property

April 2021: A second bid is received from another developer to purchase the Kindergarten Center. 

June 2021: The sale of the Kindergarten Center is placed on the Building and Grounds Committee agenda as a possible Board voting item.  There are currently 2 developers interested (offers in hand) in the property and two more developers in the wings.  

August 11, 2021: B&G meeting a letter of increased interest from a developer offering $3.7 million was presented. 
August 23, 2021: Board Workshop: Another increased offer for $3.9 million was presented, and the Board pulls the voting item from the agenda and directs Administration to negotiate with these two entities.  Both developers plan to build town homes on the property.  
September 2021: The Borough came to the District expressing interest in purchasing the K Center for $1.8 million IF they could obtain grant funding within a three year period. They would not make any deposit or payments during the three years. If they did not receive adequate funding at the end of three years, the property would revert to the District, at no penalty to the Borough. 

October 2021: The Board delayed its vote to sell the Kindergarten Center to allow time for the Borough to provide more information and to schedule two Town Hall Meetings on the sale of the Kindergarten Center Property  

October 19, 2021: First Conversation with the public on the sale - Board members and administration in attendance 

November 4, 2021: Second conversation with the public on the sale – Board members and administration in attendance
Click here to view the sale of the Kindergarten Center presentation shared with the Board at this meeting.
November 10, 2021: Jean Krack (Borough manager) attends Buildings & Grounds Committee as an invited guest speaker to answer questions about the Borough’s proposal 

November 2021: The District again delayed its vote on selling the K Center property to a developer to allow the Borough time to improve its $1.8 million offer and provide the District some assurances it sought. 
The District asked the Borough to negotiate the purchase price 
The District asked the Borough to give assurances that the zoning would not be changed during the three years 
The District asked for commitments/restrictions the Borough would be willing to make for the future use of the land. 
December 8, 2021: The District sent a formal negotiations letter to the Borough offering to meet with them at their convenience and requesting a written response by January 20, 2022.  The Borough did not request a negotiation meeting in December or January. 
January 18, 2022: The Borough responded to the District in writing.  In their response,
They increased the period to obtain grants from three to four years (3 funding cycles or 12/31/26) and were not looking to “sweeten” the deal or make any deposit payments 
They stated their intent to “continue educational/institutional uses on the property” but added the following legal disclaimer:  
Legal Disclaimer: Please be aware that this letter is a non-binding statement of the Borough's present intentions and explanations and the above shall not constitute a binding agreement, and the Borough shall not incur any liability based on the foregoing. The Borough shall have no legal obligations until an Agreement of Sale is fully executed by both the Borough and the District. 

March 14, 2022: Board voted to table the sale until all 9 Board Members were present or a motion was made to bring the sale forward for a vote. 

March 28, 2022:  Board voted to sell the Kindergarten Center property to Toll Brothers
April 12, 2022: Third appraisal of Kindergarten Center is received. 

May 9, 2022: Agreement of Sale of the Kindergarten Center is fully executed. 

May 10, 2022:  Toll Brothers submitted $100,000 to the escrow account.

Kindergarten Center Documents

Financial Impact to Taxpayers:

The analysis below was presented to the Board in November 2021 to show the financial impact for the District and our taxpayers.

In making these calculations, it is important to note that the District used higher student figures than the formula the Borough uses when estimating the number of students a development will produce. 
Using the Borough’s formula for Steelpointe, between 14 and 16 students would be produced from the K Center property’s sale to a developer. Using that formula would provide an even higher return on investment for the community and District if the property is sold to a developer.


•If the property is sold to the Borough, the District receives the $1.8 million sale price without future tax revenue but does not incur the cost for additional students 

•If the property is sold to a developer, the District receives the sale price ($4 million+) and ongoing property tax revenue but also incurs additional student costs

»If development generates 20 new PASD students (Borough estimate based on prior development in Phoenixville), District surplus (tax revenue less student costs) is about $260K per year
»If development generates 34 new PASD students (high estimate based on county data), District surplus is about $50K per year

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