Initiatives

Download ULI's Recommendations - August 18, 2008 

Denver Public Schools ("DPS") is engaging the Urban Land Institute ("ULI") to provide an independent study, with analysis and recommendations, regarding twelve real property assets owned by DPS.  In addition, DPS may engage ULI later to make similar recommendations with regard to the eight schools that the Board of Education voted to close at the end of the 2007-2008 school year.

A+ Denver stressed in its July 2007 report that excess physical capacity in the District has major ramifications on the District's financial health and its ability to allocate funds directly to the classroom to improve student achievement.  The maintenance, utilities, and other associated costs expended on the District's excess capacity or excess real property assets, compounded by the fact that the average DPS school is 50 years old and inefficient by today's building standards, results in a substantial expenditure of funds that would be much better spent improving  programs and services for          students.  (A+ Denver Findings; July 27,  2007) 

As a major step in the effort to limit the District's expenses on excess capacity, the Board of Education voted in November 2007 to close eight schools at the end of the 2007-08 school year and to examine selling surplus property. The District is currently using 70% of its existing capacity, serving roughly 69,000 K-12 students while maintaining space for over 100,000.  Over the last ten years, the District's k-12 enrollment has never exceeded 70,000.

In other words, DPS may be viewed as asset rich and cash poor.  Capital improvements on unused and underutilized assets is taking away dollars available for education, and the cost of maintaining closed assets creates a unsustainable drain on the District.

DPS is seeking a "Highest and Best Use" analysis for the twelve properties identified below.  Many of these properties are currently vacant, and the initial presumption is that they will not be used as school buildings by DPS in the future.  Those buildings not currently vacant are on the list because the assets are costly to maintain and do not best meet the operational and/or educational needs of the District.

DPS is asking ULI for recommendations (including the sale, mothball, lease, swap, etc), taking into account the following objectives:

1. Ensure that the educational needs of students and staff are met at the District's existing schools;
   1. Limit expenditures on excess facilities and focus revenues generated through the disposition of assets to improve educational opportunities for our students.
2. Be excellent stewards of the assets provided by the taxpayers;
   1. Ensure that health, safety and maintenance requirements are met;
   2. Generate funding to help pay for urgent capital and maintenance needs in existing school facilities.  Note that current capital needs range from $300 to $500 million.
   3. Provide for sufficient capacity to meet growth and demographic changes over the next 20-30 years,
   4. Minimize time prior to disposition, in order to reduce ongoing maintenance costs
3. Be good neighbors in the reallocation of assets, while not sacrificing what's in the best interest of the District's students and recognizing the important role schools play in the lives of surrounding communities and the use communities make of school facilities;

The District's immediate capital needs for outstanding building maintenance, safety and code compliance, and other projects well exceed $500 million.  The District anticipates a proposal to the citizens of Denver for a General Obligation Bond in November 2008 to meet a portion of these capital needs. DPS recognizes its fiduciary responsibility to first monetize and optimize operational efficiencies of its excess capital assets, in conjunction with seeking funds from the citizens of Denver through a General Obligation Bond.  As a consequence, time is of the essence in determining how to best monetize these assets and/or optimize operational use for the District.

Denver Public Schools desires an independent and objective analysis and stresses the importance of ensuring that diverse views are considered and key stakeholders have an opportunity to provide input during the process.

The following Denver Public Schools' properties have been identified for review by ULI in the first phase of analysis:

• Byers Middle School
• Central Administration Building
• Central Platte Valley Vacant Land
• Contemporary (Career) Learning Academy
• Crofton Elementary School
• Emily Griffith Opportunity School
• Fox Street Property, includes the DOJ Parking
• Glenbrook Vacant Land
• Gove Middle School
• Northeast Bus Terminal (old)
• Place Vacant Land
• Rosedale Elementary School