Wake Co. school officials defend move to leased offices

Days before the Wake County School Board election, some taxpayers are raising concerns over last year’s decision to move into new office space.

The school system consolidated from several buildings it owns with no mortgages into two office buildings in Cary it now leases.

"I thought, 'Let me just go see what this is actually costing,'" said Sharon Eckard, a parent and a member of Great Schools in Wake Coalition, a group that is critical of the school board majority.

Eckard said she did not like what she found when she looked at the costs involved in the move.

"They basically left a house that was paid for, for example, to go rent a luxury apartment down the street. I just don't think that puts students first," she said.

Wake County commissioners and school board members approved the decision last year.

"At this time, we felt it was the most cost effective decision for the system and the community," said John Tedesco, vice-chair of the school board.

The total cost of leasing the two buildings on Dillard Drive and Corning Road in Cary over 15 years will be $51.9 million, or $71.2 million over 20 years, according to information provided by the school system staff.

"In these tough economic times, where budgets are being cut, why are we leasing space instead of owning it?" Eckard asked.

Greg Thomas, director of communications for the school system, provided NBC-17 the following information about the history behind the move:

"In October 2009 started planning for Crossroads lease (CR II) expiration in April 2011. Reasons for investigating new arrangements included inefficiencies of separated office functions, difficulty in accommodating public access, while assuring security, high cost of operating current facilities and need to renovate. In Fall 2009 a consulting firm investigated the options and concluded a long-term lease was the best option. The board of education approved the terms of the lease on May 18. The entire arrangement was approved by the Wake County Commissioners and Board of Education between June and August 2010."

Tedesco said it came down to reducing maintenance costs and making things more efficient by combining space.

"The cost of the new lease is still offset by the operational costs and the maintenance costs and then sell the additional properties and that's a savings above that,” he said.

According to information provided by the school system staff, the long-term lease was the least costly option. It was $22 million less than the keeping things the same over 15 years or $29 million in savings over 20 years.

"I would prefer the $52 million, if it’s going to be expended, for the students, for our aging facilities, for renovations, not for fancy offices for board members,” Eckard said.

Eckard admits the decision is “water under the bridge,” but said she hopes her concerns will bring attention to other financial decisions the board makes.

“I would like more accountability on the financial side of things - what the actual financial impact is of these decisions,” she said.

Eckard said she wasn’t aware of many of the decisions the board was making about the move and questions whether board members had all the information.

Tedesco said they were frequently briefed for six months or more, though often in closed session.

“Anytime we do a real estate transaction, we’re negotiating between multiple property sites, we’re doing that in closed session before we come into open session and vote on it,” he said.