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School Board: Property purchased by school district

The Brainerd School Board Monday night approved an agreement to purchase two parcels on the block directly across South Fifth Street from Brainerd High School.

The Brainerd School Board Monday night approved the purchase of this property, 510 Pine St., after the owner approached the district about purchasing the property. (Brainerd Dispatch/Spenser Bickett)
The Brainerd School Board Monday night approved the purchase of this property, 510 Pine St., after the owner approached the district about purchasing the property. (Brainerd Dispatch/Spenser Bickett)

The Brainerd School Board Monday night approved an agreement to purchase two parcels on the block directly across South Fifth Street from Brainerd High School.

Steve Lund, director of business services, said the district has been acquiring properties on the block when they become available. After approving the purchase of the two parcels, the district now owns eight of 12 parcels on the block.

The owner of two parcels, located at 510 Pine St, through their legal representation contacted the school district to see if the district would have any interest in purchasing the two parcels, Lund said. One of the parcels, on the corner of South Fifth and Pine streets, is vacant. The parcel directly to the east of the vacant lot contains a one-and-a-half story home and single car garage.

The district appraised both properties, Lund said. The vacant lot had an appraised value of $5,000 and the parcel with the house and garage had an appraised value of $48,000, for a combined total of $53,000.

The estimated market value for the vacant lot through the Crow Wing County Assessor's Office is $4,200, Lund said, while the estimated market value for the parcel with the structures is $56,300. The total estimated market value for the two parcels is $60,500.

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Including the cost of appraisals and closing costs brings the total purchase price for both properties to $55,270, which the board approved unanimously.

The school district has acquired three other properties on this block in the last four years and has paid at or near the estimated market value according to the county assessor's office valuation at the time of acquisition, according to information provided by Lund.

Board member Bob Nystrom said the property purchase is a "key acquisition for enhancing the Brainerd High School property in the future." The block is critical in separating the high school from South Sixth Street, Lund said.

"Although the BHS campus sits on about 52 acres, if there's ever any expansion plans with that campus, this block of property would be critical," Lund said.

Information provided by Lund about the property acquisition noted the entire city block is approximately 2 acres. This purchase brings the district's land holding to approximately 1.15 acres, or about 60 percent of the block.

Information from Lund noted the property will be purchased from the district's current operating capital reserve balance. The district ended fiscal year 2015 with a balance of approximately $1,109,506 in the capital reserve accounts and with this purchase, the capital reserve balances will deteriorate to approximately $950,000 at the end of fiscal year 2016.

The budget projection is for this to stabilize in fiscal year 2017, growing slightly to a combined total of approximately $975,000, according to information provided by Lund.

The property with the house and garage is currently rented at a rate of $450 per month, Lund said, with no formal lease agreement in place. It's a month-to-month rental agreement, he said, which the district would continue until it decided what the future of the home would be.

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SPENSER BICKETT may be reached at 218-855-5859 or spenser.bickett@brainerddispatch.com . Follow on Twitter at www.twitter.com/spenserbickett .

An aerial view of the block directly to the east of Brainerd High School across South Fifth Street. The school district currently owns the properties outlined in red and has entered into a purchase agreement to purchase the two parcels on the corner of South Fifth and Pine streets. (Submitted photo)
An aerial view of the block directly to the east of Brainerd High School across South Fifth Street. The school district currently owns the properties outlined in red and has entered into a purchase agreement to purchase the two parcels on the corner of South Fifth and Pine streets. (Submitted photo)

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