Blogging Bayport Alameda

November 4, 2013

Dive right in

Filed under: Alameda, School — Lauren Do @ 6:03 am

It appears that the School District and the City have — as promised — worked out a deal to keep Alameda’s pools operating.   The joint use agreement to operate the facility and the loan to make the repairs at Encinal have been, thankfully, bifurcated which makes discussing the issue easier.

So first of all the City and AUSD have agreed to continue funding the operation of the pools until September of next year, each side equally splitting the cost of the operations.   Just an FYI, maintaining the pools are expensive.  I imagine that it’s because the facilities are so old that the upkeep is much more difficult, but right now there’s no real money to build a new swim facilities so this is cheaper in the short term.

Because the School District does not have the cash to fund the much needed repairs the City has agreed to loan the money to the School District to upgrade the Encinal Swim Center.  This has been accomplished through a set of facilities leases and reconveyance from AUSD to the City of certain Tidelands parcels.

First, the leases.   AUSD will lease the Encinal Swim Center to the City for a nominal amount.  The City will then lease back Encinal Swim Center to AUSD for $1.15 million over 10 years at 2% interest per year.   The City will deposit $750,000 (the cost of the renovations) into an escrow account that AUSD will be able to draw from to pay for the renovations.

AUSD will then deed the “Tidelands Parcels” to the City (Assessor Parcel Nos. 72-380-19 & 20, appears to be somewhere on the Northern Waterfront) and deposit a sum which totals two years of lease payments as a security deposit into a special holding account.   If at any time AUSD defaults the whole $1.15 million becomes due reduced, of course, by whatever payments AUSD has already made.  The lease payments will also have to be included in AUSD’s annual budgets.

Not simple, not the straight forward but accomplishes the job of keeping the pools open and fixing Encinal’s pool in the interim.

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3 Comments

  1. I’m confused. In your third paragraph, said it was a loan from the City to AUSD to upgrade the Encinal Swim Center, but in your fourth paragraph it is a 10-year lease that charges interest of 2%? If AUSD owns the pool, why would they need to lease it to the City and then have the City lease it back to them?

    Comment by Alan — November 4, 2013 @ 11:04 am

  2. The “loan” is accomplished through lease backs. AUSD leases the swim facilities to the City first for a nominal sum and the City leases the use of the swim facilities back to AUSD for the 10 years at 2%.

    Comment by Lauren Do — November 4, 2013 @ 11:06 am

  3. Doesn’t sound kosher. Has the City Auditor opined on this “loan?”

    Comment by Alan — November 4, 2013 @ 1:20 pm


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