Clare Jellick reports that the District 150 School Board has “agreed to pay $750,000 for the 22 acres of land” on which they want to build a replacement building for Harrison Primary School.

The land is appraised at $178,000, but the PHA has maintained that it should recoup some of the costs for razing buildings there. The cost of demolition was about $1.4 million.

My question is, why? Why should they recoup costs for razing buildings there? These buildings were going to be razed anyway. The process was started at least a year before the school district expressed interest in a land swap with PHA for the land.

In fact, their first application for federal approval to raze 200 units (30 buildings) on the south side of Harrison Homes was reported in the Journal Star on March 30, 2005. On August 23, 2005, they added another 11 buildings to be demolished on the north side. “The decision to raze the additional buildings brings the total number of units to be destroyed to 306”; it was all part of a “10-year plan to tear down and rebuild the entire housing complex,” the paper reported at the time.

The paper also said, “Most of the latest buildings approved for razing are located near Harrison School, in the block between West Krause Avenue and West Seibold Street.” The “latest buildings” were the 11 that were added, with a total of roughly 106 units (306 total minus the 200 units initially reported in March). How much would that cost to raze? “The cost of demolition is estimated at about $4,000 per unit, said Regina Simpkins, director of facilities management.”

At $4,000 per unit, the cost to raze 106 units near Harrison School would be $424,000. But according to later reports, demolition of all 306 units cost roughly $1.4 million total, which comes out to about $4,575 per unit. Even then, the cost to demolish the 106 units near Harrison School would only be $484,950. Add that to the $178,000 appraised value for the land and the cost comes to $662,950.

So, if my reading and calculating is correct (which it admittedly may not be, since I’m only going from published reports) the school district is still overpaying for the land even if they eat all the demolition expenses for the land they’re purchasing. And that doesn’t even take into consideration this little nugget from that August 2005 article: “The PHA plans to apply for demolition grants so they can reprogram their budgeted funds for other uses, [Simpkins] said.” How much of this demolition cost was already paid for with grant funds?

This is a big coup for the PHA. It basically takes over half a million dollars the School District collects from our property taxes and transfers it to the PHA, an agency that has lost considerable federal funding as of late for a variety of reasons, including low occupancy in PHA properties.