With 100% of the revenue generated from the sale of surplus inventory going directly to the School District of Philadelphia, Nutter is hoping that sales will reach at least $61 million this year, in order to keep the district on track for what it had already budgeted.
Next Wednesday, the cash-strapped School District of Philadelphia will post a full inventory of surplus or closed properties with the goal of selling them for the highest return, explains Mayor Michael Nutter, during a press conference this week where he also announced that he’s signed Council Bill 130577, an ordinance that authorizes the movement of $50 million to the city’s general fund.
Through an operating agreement, Nutter states that the state-ran school district, the City Commerce Department and the Philadelphia Industrial Development Corporation (PIDC), are going to work aggressively and cooperatively to market and sell the commodities “as quickly, as expeditiously and for the highest price possible.”
Referencing the amended, School Reform Commission approved, “adapted sale and reuse policy,” Nutter promised that prior to any sale, community members would have substantial input, adding, that he wants the properties repurposed for “valuable uses as quickly as possible.”
With 100% of the revenue generated from the sale of surplus inventory going directly to the School District of Philadelphia, Nutter is hoping that sales will reach at least $61 million this year, in order to keep the district on track for what it had already budgeted. Nutter stresses, however, that if for any reason they’re unable to reach their sales goal that $50 million will be given to the district, as per the aforementioned council bill.
Mayor Nutter also announced that the city will advance $60 million to the district, as they are expecting cash flow issues within the next couple of months. Nutter says the money was already budgeted for the district, but they weren’t scheduled to receive it until next spring.
The agreement reached between Mayor Nutter and Council President Clarke is said to have produced a number of positive outcomes, such as, protecting the city’s general fund, enhancing the district cash flow position, and further providing insurance that the district will received the $50 million pledged by city officials.
Council President Clarke, when asked to give remarks, stated that the level of interest in school district properties have surprised him, and that he has not only received offers for individual schools, but that multiple investors are prepared to purchase the entire portfolio of school buildings.
While excited that City Council can now move forward, and that they offer an added value to the world of real-estate, Clarke says that he doesn’t believe, even they are able to come up with the short-term revenue and the long-term revenue, that the children in the nation’s fifth largest city will receive a quality education, unless significant changes are made in the way business is done.
“I would like to see all of us, in an aggressive and comprehensive way, talk about some of the strategies associated with the way people get educated. We can put all the dollars on the table, but if we don’t provide a quality education, we really haven’t achieved much,” says Clarke.
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