OFFICE OF THE COUNTY EXECUTIVE

ROCKVILLE. MARYLAND 20850

Douglas M. Duncan County Executive

MEMORANDUM July 25, 1995

TO:

Derick Berlage Council President Douglas M. Duncan ~A County Executive r=

FROM:

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SUBJECT:

Disposition of Peary High School

This is to inform the County Council as to the status of our efforts toward a disposition of the Peary Senior High School property, in accordance with the Council's November 1994 reuse resolution. You know we have been involved in an additional solicitation and review of proposals for the reuse of this property, following the withdrawal of the French
Intemafional School in early 1995. As we related in our last update,' seven proposals were received as a result of the solicitation. Some of those proposals have since been withdrawn, due primarily to the enormous economic investment required to bring this property to useable condition. We have bad an opportunity to meet with members of the community on several occasions to discuss the remaining applicants. The community has been very direct and straightforward in communicating its opinions to us in this respect. They judged many of the proposals to be incompatible with the character of the neighborhood, and well beyond the scope of permitted uses of the property as set forth in the Council's reuse.resolution. The community believes, and we agree, that of the remaining proposals, only the -::..application of the Hebrew Academy is consistent with the intent of the Council's reuse decisions. This institution proposes to relocate to Peary its traditional instructional programs for students ranging from nursery age through 12th grade, and is willing to abide by the Council's requirement that the Peary facilities remain available for community use. The community is willing to support this user. All other proposals have been judged to be inconsistent with the approved uses for the property, as they exceed the parameters set forth by Council. Those applicants have already been notified of the decision.

Derick Berlage July 25, 1995 Page2 Our discussions so far with the Hebrew Academy indicate a good fit between the County's objectives and the Academy's needs. The Academy has made it clear during our disoasslensthat they would grant to the community ongoing access to Peary's recreational and assembly facilities, on a scheduled basis, through the Community Use of Schools Program.

They are also willing to work with the Roller Hockey league to continue their use of the property. They have a combined student-teacher population of just over 700, and do not
anticipate any difficulties confining their parking needs within the existing Peary property. They operate five school buses during normal school hours, and expect that traffic in the neighborhood will not be adversely affected by their relocation to Peary. They' have been a tenant of the County at the funner Montgomery Hills Junior High School for more than 20 years. They were, in fact, one of the first occupants of a closed school in Montgomery County. They have done a good job of maintaining that property, and the surrounding community is pleased with their management of the facility. Although no documents have been signed, we are largely in agreement with the Academy on the principal terms of a lease. These main provisions are summarized here for your information: Term - In order to have a reasonable recovery period for their investment, the Academy needs a long term commitment. We are discussing an initial term of 25 years, with options to.extend for an additional 15 years. Future Reuse As Public School - The Academy will not modify or change the building in a way that would preclude its future use as a public school. All changes and renovations of the building are subject to review and approval by the County. The County will have the right to terminate the lease and reclaim the property for public school use after the initial 25 year term, with 5 years advance notice.
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Rent - The Academy proposes to pay $60,000 per year, increased annually by the Conswner Price Index, The rent is to be abated for the first few years of the lease, in order that the Academy's resources can be directed toward the initial repair and renovation of the property. Option.to Purchase - The Academy will have an option to purchase the property, but only with the approval of the County Executive and the County Council.

.~

OFFICES OF TiiE COUN1Y EXECUTIVE

Douglas M. Duncan

County Executive

April 1, 1998

Bruce Romer ChiefAdm~istrative Officer

Dr. Yale Stenzler, Executive Director lnteragency Committee on School Construction State of Maryland Public School Construction Program 200 W. Baltimore Street Baltimore. Maryland 21201 Dear Dr. Stenzler. The purpose of this correspondence is to request approval of the Board of Public Worksto several actions relating to the disposition of Montgomery County closed schools. Our request relates to five different properties, and includes some proposed sales, leases and lease assignments, as follows: l. Sale ofl.arcbmont Eleroentarv School-The Board of Public Works approved the lease of this property to the Grace Episcopal School on May 25, 1984. All outstanding bond debt has since been retired. In accordance with the provisions of that lease, the Grace Episcopal School has the right to p~ the property, and they are now exercising that right. We propose to sell the Larchmont property to the Grace Episcopal School for the amount of $2 million, which is based on three independent appraisals. Grace proposes to continue the use of the property for private educational purposes. A copy of the original lease is enclosed for your review. Assignment of the Randolph Middle School Lease -The Board of Public Wor~ approved the lease of this property to the Greater Washington Jewish Community Foundation on September 9, 1987. All outstanding bond debt bas since been retired. The Greater Washington Jewish Community Foundation is proposing to assign their interest in this lease to the Charles E. Smith Day School. They have the right to make this assignment, in accordance with the provisions of their lease, given County approval. The County is inclined to grant approval to the proposed assignment, contingent on approval of the Board of Public Works. A copy of the original lease agreement with the Greater Washington Jewish Community Foundation is enclosed for your review. Lease. Assignment and Sale of the Belt Junior High School - The Board of Public Works approved the lease of this property to the Belt Elderly Housing Limited Partnership on October 11, 1989, for a proposed elderly housing project. That use was never implemented. All outstanding debt on Belt has been retired. In June, 1995, the County executed a lease for the Belt property with Nanaksar Thath lsher Darbar, a non-profit religious organization proposing to renovate and use the property for private educational purposes. This lease was signed contingent on approval of the Board of Public Works. The lease with Nanaksar is for a term of20 years, and includes a right to purchase the property for the amount of $1.75 million. Nanaksar now wishes to transfer its interest in the lease to the Yeshiva High School. also a non-profit educational institution. Yeshiva High School wishes to accept this lease assignment from Nanaksar, and also wishes to exercise the right to purchase the property immediately upon completion of renovations to the school. We are requesting the Board's approval of (i) the 1995
101 ~lonroc Street. Rockville. ~faryl:md 20850 301/2172500. rrv 217-6594. FAX217-2517

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Dr.Yale Stenzler April 1. 1998 Page 2

lease between the County and Nanaksar Thath Isher Darbar, which approval has not yet been granted by the Board. (ii) the assignment of the Nanaksar lease to the Yeshiva High School. and (iii) the proposed sale of the property to the Yeshiva High School. As set forth in the lease. the consideration to be paid by Yeshiva will be $1.75 million. Yeshiva proposes to continue a private educational use of the property. A copy of the 1995 lease is enclosed for your review. 4. Assignment and Amendment of the Lone Oak Elementazy School Lease - The Board of Public Works approved the lease of this property to the Boys and Girls Club of Greater Washington on July 25, 1984. All outstanding bond debt has since been retired. In February, 1998, the County approved the assignment of this lease from the Boys and Girls Club to the Centers for the Handicapped, Incorporated (CHI). CHI is also a tenant of the County at the former McDonald Knolls and Hillandale Elementary Schools. CHI will continue the use of the Lone Oak property for non-profit community service agencies. A copy of the original lease agreement with the Boys and Girls Club, as well as a copy of the Lease Assignment and Amendment recently executed among the parties, are enclosed for your review. Lease of the Peary Senior High School - The Board of Public Works approved the transfer of this property to the County on February 27, 1985, for an undetermined use. In April, 1996, the County entered into a long-term lease with the Hebrew Academy of Greater Washington for the use of the property. The Academy proposes to use the property for private educational purposes. This lease was executed contingent on approval of the Board of Public Works, which has not yet been granted. A copy of the lease with the Academy is enclosed for your review.

5.

Please contact Fred Edwards. Chief of the County's Division of Facilities and Services, should you need additional information, documentation, or should you have any questions relating to the above actions, Mr. Edwards may be reached at 301-217-6000. Please accept our thanks in advance for expedient processing of our request. Sincerely,

Bruce Romer Chief Administrative Officer BR:wic Enclosures:

bee:

cc:

Fred Edwards, DFS Marc Hansen. Office of the County Attorney

CE Read File DPW&T Graham Norton. DFS\W. Colbcn\RJ\BPW.wpd

I hereby certify that I am an attorney duly admitted to practice before the Court of Appeals of Maryland and that the within instrument was prepared under my supervision.

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Grantor's Address: Grantee's Address: Property Address: Title Insurer:

Carol 'Sf Rubin Assistant County Attorney

850 Hungerford Drive, Rockville, MD 20850 110 North Washington Street Rockville, MD 20850 . 13300 Artie Avenue, Rockville, MD None

NOV 2 1994
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AND the said GRANTOR does hereby covenant warrant execute specially the property hereby conveyed,

that it will

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such further assurances of said lands as may be

requisite. WITNESS the hand and seal of the President and Secretary

of the Grantor the day and year first above written. ATTEST: BOARD OF ~DUCATION COUNTY, MARYLAND ~ Carol Fanconi, APPROVED County. for the Board of Education
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OF MONTGOMERY

<'MA. President

of Montgomery

aul L. Vance Superintendent of Schools STATE OF MARYLAND COUNTY OF MONTGOMERY )

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) day of

I hereby certify that on this ~

1994, before the subscriber, a Notary Pu.Dlic in and for the

aforementioned State and County personally appeared CAROL FANCONI and PAUL L. VANCE, known to me or satisfactorily proven to be the persons whose names are subscribed to the within instrument and-did acknowledge same to be the act and deed of the BOARD OF EDUCATION OF MONTGOMERY COUNTY, MARYLAND, and that they in the capacities of President and Secretary have signed .the aforegoing Deed on behalf of the BOARD OF EDUCATION OF MONTGOMERY COUNTY, MARYLAND, for the purposes therein contained.

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Parcel ID No. 13-502-954274 DEED THIS DEED made this 1994, by and between COUNTY, MARYLAND, 20850, hereinafter

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day of OF MONTGOMERY Maryland COUNTY,

the BOARD OF EDUCATION

850 Hungerford Drive, Rockville, called GRANTOR, and MONTGOMERY of Facilities

MARYLAND, c/o the Department

and Services, 110 20850, hereinafter

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receipt of which is hereby acknowledged,

the said GRANTOR does

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hereby grant, convey in fee simple, and release unto the COUNTY, A body corporate, or parcels Montgomery follows: BEING all that parcel of land conveyed to the Board of Education of Montgomery County, Maryland, by Edith E. Matthews, by deed dated April 28, 1958, and recorded among the Land Records of Montgomery County, M~~~a~d, at Liber 2457, Folio 339, containing a total 0~~~;~2acres, more or less. r.!:~.f&,,__ .. . :=. _-. . : its successors and assigns, all those pieces

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of ground and other rights situate and lying in County, Maryland, and more particularly described as

BEING that property known as Peary High School ~1~t, .i "".::: r:tev B_:: ~~: : .. = TOGETHER WITH ALL the rights, privileges, appurtenances and advantages thereto belonging easements,

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TO HAVE AND TO HOLD the above granted property rights unto the said COUNTY, its successors simple.
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WEST & FEINBERG, P.C.

March 3, 2010 Page2 Therefore, based on the analysis by VSI, we believe that the purchase price should be the average of the three appraisals as discussed with you on our last conference call, adjusted for CPI per the Lease, and then reduced by 21%. Please note that since we have already agreed that the County's repurchase option will be equal to BHA's purchase price, adjusted for CPI, the 21% reduction in price will inure to the County's benefit as well if it exercises its repurchase option. We look forward to finalizing things with you when we meet on Monday. Thank you again for all your assistance in this process.

{SJ1: _
Lawrence S. Stem LSS\aks Enclosures cc: Behnam Dayanim, Esq. Jennifer Zukerman

U:\Files\LSS\Hebrew Academy\Purchase of Building\Valuation cov !tr.doc

DEPARTMENT OF GENERAL ~ERVICES Isiah Leggett County Executive DavidE. Di:;e Director

October 15, 2010

Mr. David Lever, Executive Director Maryland Public School Construction Program 200 West Baltiinore Street Baltimore, Maryland 21201 RE: Former Peary Senior High School Dear Mr. Lever: Montgomery County entered into a Lease Agreement dated March 29, 1996 with the Melvin J. Berman Hebrew Academy (the "Academy"), formerly known as The Hebrew Academy of Greater Washington, for the former Peary Senior High School property located at 13300 Arctic Avenue, Rockville, Maryland (the "Property"). The Melvin J. Berman Hebrew Academy is exercising its right to purchase the Property in accordance with the terms of the Lease Agreement. The Academy's right to purchase the Property is subject to the approval of the Board of Public Works. A copy of the 1996 Lease Agreement is enclosed for your reference. I have also enclosed a copy of a proposed "Amendment No. 1'\ which, when fully executed, will detail the terms of the sale of the Property to the Academy. A copy of the proposed "Deed and Reservation of Right to Repurchase" is also enclosed. By way of history, the Academy undertook an extensive renovation program which spanned a two year period between 1996 and 1998. The Academy has operated a high school on the Property since 1998. They have been a good steward of the Property and the Academy is highly regarded in the community. The targeted settlement dateis December 17, 2010. It would be greatly appreciated if the Board of Public Works will consider the sale of the Property and advise the County of any restrictions, conditions or requirements they may place prior to that date. The purchase price through December 17 is $1,914,860.00. The County will work with your staff to determine the amount of the sharing of proceeds based. on the formula found in the 1986 transfer agreement. Montgomery County is conditioning the sale of the Property subject to the County's right to repurchase if the Property is sold or transferred for any use other than as a private educational

Office of Real Estate . 101 Monroe Street, 9th Floor Rockville, Maryland 20850 240-777-6001 . 240-777-6011 FAX www.montgomerycountymd.gov . Located one block west of the Rockville Metro Station

Letter to Mr. David Lever October 15, 2010 Page2 institution. Further, the gymnasium, auditorium, and outdoor athletic fields will be made available to the public at certain times through the Montgomery County Community Use of Public Facilities ("CUPJ<:").

Please feel free to have your staff contact Bernard Fitzgerald of the Department of General Services at 240- 777-607 6 should there be any questions regarding details of the

proposal. Montgomery County is recommending the disposal of the Property. I hope the State of Maryland :will favorably consider this proposed sale to the Melvin J. Berman Hebrew Academy. Sincerely,

David Dise, Director Department of General Services

Enclosures CC: Robert Crocetti Bernard Fitzgerald

Price -packet

points out that the price Is $1,914,860 "if settlement

occurs before December 17, 201011 - Packet fails to point out that the price is then subject to another year of CPI adjustment Public use - description omits Important relevant information o Charging fees to cover operating costs including personnel for
security - This is current practice; CUPF currently does that for all public facility use - part of It Is in the rates and passes those costs through; requiring Insurance for field use, auditorium and gymnasiums is required of private entities for use of public facilities

County Right to repurchase -

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Packet has it wrong - The county has 90 days to notify of the

exercise of the repurchase and 180 days to tender the price

Condemnation 2 issues in condemnation - fmv (jury) and public use (judicial): protracted fmv is stipulated eliminating need for a trial; public use allows for judicial review

Relocation Is not part of the condemnation proceeding

Consistency with Master Plan - Park and Planning unanimously recommends honoring the purchase option Council Resolution 12-1545 pps. 280-1 of the Aspen Hill Master Plan
o

Private school is preferred use and any use that does not preclude eventual reuse as a public school is prefeed Existing outdoor facilities should be repaired and made available for public use

Benefits Lease would need to be condemned to reclaim prior to 2023 (with possession not available before 2028) o FMV of lease would need to be paid plus relocation and in all likelihood contractual claims Property can be reacquired at 1998 prices basically repaying Berman Academy what it put in Fields, gymnasium and auditorium are available in perpetuity

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County Executive Staff Responses to Council Staff Packet November 29, 2010
Council Hearing testimony: Testimony was overwhelmingly in favor of the exercise of the option. Of the 34 speakers signed up to testify, only a handful spoke against honoring the option to purchase. o elected officials; area civic associations; members of the Berman Academy community; area residents all spoke In favor of the

exercise of the option citing the extensive investment;

restoration; positive community presence; cost savings to the county; availability of facilities; and, honoring the deal struck. Packet failed to point out Bd. Of Education's_testimony that there is no current need for the school P. 2-3 Prior study of 2005 transaction is irrelevant it evaluated a different deal and ~as not an appraisal

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Valuation is more Buyback is at same as what Berman Academy is paying/investing Limited to school use only Fields, gymnasium and auditorium are available for public use in perpetuity Study was flawed

points out that the npv of rents from 2007-2023 would be $912,1~5- ~ of what the County will receive now

Option to Purchase Disposition resolution 12-1874

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"Any sale of the property Is subject to prior consent by the County Council which will consider the appropriate elements of the Aspen Hill Master Plan at that ~ime."

Notice that option to purchase would be part of the lease

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Jones, Diane (CEX)

From: Sent: To:

Cc:
Subject:

Larry Stern [lstern@wflaw.com] Tuesday, November 30, 2010 4:56 PM Jones, Diane (CEX) Dayanim, Behnam Thanks!

I just wanted to thank you again for all your help and support and for the terrific job you did today fending off (converting?) Marc E. We couldn't have done it without you and we hope you take us up on our offer to come visit the school soon. Also, I don't know what the best way to let Ike know of our personal gratitude, though I know the school will thank him properly and officially, so please pass on our personal thanks as well. Finally, while I have to admit that there were parts of this process that were actually fun and exciting, I'm really hoping that the BPW process is really boring. Lawrence S. Stern West & Feinberg, P.C. 4550 Montgomery Avenue Suite 775N Bethesda, MD 20814 301-951-1520 301-951-1525 (Fax)

The information contained in this communication may be confidential, is intended only for the use of the recipient named above, and may be legally privileged. If the reader of tt:iismessage is not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication, or any of its contents, is strictly prohibited. If you have received this communication in error, please resend this communication to the sender and delete the original message or any copy of it from your computer system. IRS Rules of Practice require us to inform you that to the extent this written communication, including any attachments, contains a discussion of any federal tax matter, it is not intended or written by us to be used by anyone for the purpose of avoiding federal tax penalties that may be imposed by the federal government. In addition, this written communication may not be used to support the promotion or marketing of the transaction or matter addressed herein. Anyone other than the recipient who reads this communication is advised to seek advice based on their particular circumstances from an independent tax advisor.

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HOHTGOHERY COUNTY COUNC\L

Zffi5 JAN21 PM l: 37
OFFICE OF THE COUNTY EXECUTIVE
Douglas M. Duncan County Executive

"MEMORANDUM

0:13048
January 20, 2005

TO:

Thomas E. Perez, President Montgomery County Council Douglas M. Duncln County Executive

FROM:

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SUBJECT:

Disposition of Former Peary High School Site

The Melvin J_ Berman Hebrew Academy is the tenant under a lease entered into with Montgomery County in March 1996 for the reuse of the former Peary High School site on Arctic Avenue in Aspen Hill. Article ID of the lease grants the Academy the right to purchase the property, subject to the approval of the Montgomery County Council and the County Executive, and subject to any restrictions, conditions or requirements which the Council or Executive may elect to impose on the purchase. The Academy has exercised its right to purchase, and I am pleased to trarismit to the Council my recommendation that the sale be approved, subject to the restrictions, conditions and requirements described below. By way of background, this site was the subject of an extensive reuse process in the 1990s that included significant public input. On November 29, 1994, the County Council adopted Resolution 12-1874, which approved a lease of the property with an option to purchase if supported by the Aspen Hill Master Plan. In 1995, the County solicited proposals for the reuse and/or disposition of the site and, after evaluating the various proposals that it received, the County selected the Hebrew Academy to be the tenant. The lease with the Academy was signed in March 1996. At the time the parties entered into the lease, the building was in a state of major disrepair and had become an eyesore to the neighborhood. There was virtually no maintenance on the property, there were frequent reports of vandalism and arson, the basement had standing water, the roof was leaking, and neighbors complained about criminal activity taking place on the site. It was clear that the tenant would need to invest millions of dollars in renovation costs to make the building fit for use as a school.

(j)

Thomas E. Perez, President January 20, 2005 Page2

As an inducement to the Academy to lease the property and make the required investment, the lease grants the Academy the right to purchase the property subject to the approval of the County Council and County Executive, and subject to any restrictions, conditions or requirements which the Executive and the Council may elect to attach to a purchase. There is no question that, at the time they signed the lease, the parties contemplated the eventual sale of the property. In addition to the purchase option, the lease provides for a 25-year term, commencing after an initial 2-year renovation period that began on April 15, 1996 and ending in the year 2023. The Academy has the option to extend the lease for three periods of 5 years each.

The County has the right, after the 25-year term, to reclaim the property for public education purposes on 5 years' notice. The Academy is required to make facilities such as the gymnasium, the auditorium and the playing fields available to the community in accordance with the guidelines and regulations for community use of public facilities. Approval of the sale is fully consistent with the intent and expectations of the parties, and I recommend Council approval of the transaction. However, I also believe that the sale should take place only under the following restrictions, conditions or requirements: The deed should limit the use of the property to its current uses-private educational use and, as incidental uses related and accessory to the main use, daycare and worship services, private educational day camp and private religious education center - and grant the County the right to reacquire the property if the owner discontinues those uses of the property. The deed should require continued access by the community to the gymnasium, auditorium and playing fields through the Office of Community Use of Public Facilities. The County should be granted a right, commencing in 2026, to repurchase the property on five years' notice after a Capital Improvement Project for the reuse of the site by MCPS as a public school has been approved by the Council. The purchase price on any reacquisition by the County would be the then fair market value of the property, based on the limitations of the property described above.

Thomas E. Perez, President January 20 2005

1

PageJ These conditions protect the County's ability to reclaim the property for use as a public school, which is consistent both with language in the Aspen Hill Master Plan that the property be preserved for potential future use as a public school and the tenant's right under the lease to occupy the property for 25 years before the County could give notice of its intent to take the property back. In addition, these conditions preserve the use of the public.facilities by the community. Under the circumstances, I believe these restrictions, conditions and limitations are fair and appropriate.
In making this recommendation, Ihave been advised by the Office of the County

Attorney that the regulations relating to the disposition of closed schools (Reg. No. 4-99AM) do not apply tothis matter because the lease was entered into several years before the regulations were adopted. I understand that the Council's Staff Attorney has reviewed this matter and concurs with that conclusion. My staff is available to assist the Council in its deliberations of this matter. If you have any questions, please contact my Special Assistant, Jerry Pasternak, at x2513. DMD:jp

OFFICE OF THE COUNTY ATTORNEY Douglas M. Duncan

County Executive

Charles W. Thompson,Jr.
County Attorney

MEMORANDUM
September 20, 2006 TO: FROM: SUBJECT: Peary School Lease/Purchase Option

This memorandum responds to the questions raised in your July 17, 2006 memorandum to Mr. Pasternak regarding the.subject lease. The short answer is: yes, your reading of the lease is correct and in accordance with the plain meaning of the document We further agree that the lease docwnent represents the entire agreement between the parties. This is to further confirm that: I. The lessee has a right to purchase the school under the terms provided in the lease subject to the County's approval, which approval will be subject to a test of reasonableness. The County may terminate the lease upon five years notice to the lessee, but the termination would not become effective until after the initial 25-year lease term expires. If the County elects to terminate the lease, the lessee is entitled to be reimbursed for all approved capital expenditures subject to Article VIII, Section 8 of the Lease.

2.

3.

These terms appear to be fair and reasonable in that they balance the County's re-use need for the school and the lessee's need to protect its substantial investment made in improving the facility. cc: Larry Stem, Chair, MJBHA Board Chair
john.fisher@montgomcrycountymd.gov 101 Monroe Street. Rockville, Maryland 20850-2540 240-777-6736 ITD 240-777-2545 Fax 240-777-6706

Mr. Stanley Siegel September 30, 1997 Page 9

..

Land Sale #4, the Blair High School site requires an upward adjustment for date of sale by say 15% and a downward adjustment for other factors with special emphasis given to location with its outstanding exposure on the Capital Beltway. Net adjustment, of rounded, $3.75 - $4.00+/sf land area is indicated suggesting a unit rate of rounded, $2.15+ sf to $2.45+ sf of land.area, rounded.to $2.25 - $2.35~ sf land-area (prior to adjustment for demolition). Having considered the quality and character of the subject, its Highest and Best Use (both "As Improved" and "As If Vacant") the appraiser is of the opinion that the property is to be valued predicated upon an overall unit rate (Prior to Demol"itionof the I~provements) of, rounded, $2.25 to $2.35 per sq.ft. of Land Area which would indicate an overall rate of, rounded $98,010 $102,366+ per ac~e, rounded to $100,000 per acre and/or $2.30~ sf land area prior to Demolition of the present improvements. Mr. Tim Hobson of Ace Wrecking Company, Silver Spring, Maryland, has confirmed in September, 1997 a preliminary demolition cost estimate of $425,000 (indicated unit rate of $1.93+ gsf of Building Area and/or $.50+ sf Land Area). The job is estimated to take eight (8) weeks to complete and would include removal of slab and foundation with grading. Based upon a unit rate of $100 ~000 per acre (prior to demolition) the indicated valuation is $1~954,000 less demolition cost of $425,000 which equates to $1,527,000, rounded to $1,500,000 or rounded $1.75+ s as of the date of valuation. This would further equate to $26,786+ per potential lot (assuming 56 lots) prior to lot finishing costs which is considered well supported in the marketplace as evidenced by sales of similar lots and analysis of sales . of nearby hs>mes (See Addendum, a part hereof) within the immediate neighborhood that generally support a -price range of rounded $150,000 - $170,000 and up to $200,000+ as of the date of valuation. The appriser is further careful to note that an increase in yield above 56 units.may require further analysis as would a decrease in potential lot yield below the anticipated 56 lot density. The appraiser has considered in the scope of work the condition, layout, and utility of the property and its Highest and Best Use. In connection therewith, Market Supply and Demand for the subject in its location as of the date of appraisal and into the reasonably foreseeable future have been analyzed. Important to this estimation, prices paid fo~ competitive and reasonably similar existing or proposed properties and/or competitive developments have been evaluated.

From: Sent:

Crispell, Bruce [Bruce_ Crispell@mc;psmd.org] Wednesday,.August 10, 2005 3:25 PM Afzal, Khalid Turpin, Janice

'To: Ce:

Subject: FW: Former Peary High School

Khalid,
I

As per our conversation I am providing this e-mail concerning the former Peary High School facility. Peary High School was closed in 1984 and conveyed to the county in 1994. Prior to being conveyed to the county, it was determined that thls facility was no longer needed for public school use. This continues to be true. The Peary facility is within the current service area for Rockville High School. Rockville High School ls to the north of the Peary facility. This school was modernized in 2004 and has a capacity for 1,633 students. Enrollment is projected to remain in the 1,200 to 1,400 range for the foreseeable future. Therefore, ample space is available at Rockville High School. In other high schools in the vicinity of the fonner Peary High School facility space Is either adequate now, or construction is underway to ensure space is adequate in the future. To the east and south of the Peary facility, Kennedy and Wheaton high schools have recently been relieved by the reopening of Northwood High School and formation of the Downcounty High Schools Consortium. To the west of the Peary faci!ily, a large addition to Walter Johnson High School has recently been completed and further work to modernize the school ls underway, Capacity is projected to be adequate at this high school when this project is completed in 2009. Also to the west of the Peary facility, the modernization and expansion of Richard Montgomery High School is getting underway this summer. This project will ensure space is adequate at this school when the new facility Is opened In 2007.

Although high school enrollment has grown, the next high school that Is needed further north than Peary, In the area Shady Grove west area. The Peary facility's location is ill suited to these future needs. Let me know if I can be of further assistance. Bruce Crispell Director Division of Long-range Planning Montgomery County Public Schools (301) 279-3334

91712005

OFFICES OF THE COUN1Y EXECUTIVE

Douglas M. Duncan County Executive Bruce Romer Chief Administrative Officer

October 12, 2005 TO: FROM: SUBJECT: Michael Faden Council Staff Attorney Jerry Pasternak:~Special Assist the County Executive Disposition of onner Peary High School Site

This memorandum responds to your request for the views of the Executive branch on options available to the County with respect to the exercise by the Melvin 1. Berman Hebrew Academy of the option to purchase the former Peary High School site as provided in the 1996 Lease Agreement between the County and the Academy. For the reasons discussed below, it is our position that (1) the lease is a valid, binding obligation that grants the Academy an option to purchase the property on the terms and conditions described in the lease, (2) both the County and the Academy entered into lease transaction with the clear understanding and expectation that the Academy would exercise its option to purchase the property, (3) the Academy has properly exercised its option to purchase, and (4) the County is legally obligated to complete the transaction essentially as proposed by the County Executive. Moreover, apart from the legal obligation, notions of good faith and fair dealing - concepts that also have legal significance - compel the conclusion that the proposed sale should be approved. By way of background, the school was closed by Montgomery County Public Schools in 1984 and declared surplus, and conveyed to the Montgomery County Government, in 1994. From 1984 until it was leased to the Academy in 1996, portions of the property were repeatedly set on tire and vandalized, the building was allowed to deteriorate into a state of major disrepair; and neighbors constantly complained of criminal activity on the site. Following extensive public input, the Council, on November 29, 1994, adopted Resolution No. 12-1874, which approved as the preferred use of the site the
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101 Monroe Street Rockville, Maryland 20850 240fi77-2500, TfY 240in7-2544, FAX240m7-2518 www..co.mo.md.us

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