By Andrew Coen
The mystery of what the winning bid for the Number One School would be was settled in the late hours of May 3, when the District 15 school board, after a lengthy executive session, unanimously voted for Lawrence-based Neuberg Development LLC. The company, owned by Lawrence resident David Neuberg, has agreed to pay $27.5 million for the former elementary school property and plans to build luxury condominium units on the site.
The next step toward a groundbreaking at the former elementary school - which was shut down in June 2004 as part of a consolidation plan to save the district money - is the approval of the public in a referendum, which is planned for sometime this summer, according to district officials. The school board's attorney, Jack Feldman, said in an interview moments after the bid was approved that once a contract is settled between Neuberg and the school district's legal counsel, the public will need 45 days' notice before a vote on the bid can take place.
The school board also announced at a May 5 press conference that if the public approves a referendum for Neuberg to develop the property, the board plans to earmark the $27.5 million for a capital reserve fund to address repairs in other buildings and athletic fields throughout the district. However, the fund cannot be established without the public's approval of Proposition 2 on Tuesday's ballot, so district officials are doing their part to educate the public about the importance of passing the measure. If the proposal fails, the money from the sale would instead be put into the district's general fund, according to school officials.
According to John Pujia, a representative of the district's brokerage firm, Greiner-Maltz, while four of the bids that were considered were similar, the $27.5 million offer was the highest they received to develop the 3.79-acre former elementary school property. An appraisal conducted last year determined the land to be worth roughly $15 million.
"We generated a lot more money than we ever thought we would get for this building," said school board President Frank Parise during the press conference.
Pujia said that in addition to Neuberg's high bid, the decision was also based on his extensive development experience, including projects in the Five Towns such as the Adult Day Care Center in Inwood and Club Central, a fitness facility on Spruce Street in Cedarhurst. Neuberg also recently built a condominium complex in the Williamsburg section of Brooklyn, according to Pujia. "He has a good track record as far as projects he has completed," Pujia said.
Neuberg could not be reached for comment on what his plans are for the property if the public approves his bid.
Mike Kaufman of Atlantic Beach, who owns numerous buildings in the Five Towns, said he was thrilled with the idea of condominiums being built on the site and was surprised at how high the winning bid was. "I never would have believed that [the school board] could get that number," said Kaufman. "I certainly will support it."
The higher-than-expected offers for the Lawrence property came despite a village moratorium on projects requiring high water use, which has been in place since September. According to Pujia, most offers for the land came with the belief that the law will be lifted soon, and that since construction would not be able to begin for at least a year, there would be plenty of time for Lawrence officials to settle the issue. Those officials have said they are in the process of determining how best to increase the capacity of the village's water pollution control plant to allow the moratorium to be lifted.
"We are working very hard to do what we have to do to upgrade the plant," said Lawrence Mayor Dr. Jack Levenbrown in an interview two days after Neuberg was approved for the property.
"We really wanted a buyer who had the staying power to work with the school district as well as the village until the problem is remedied," said Pujia, adding that Neuberg has the patience to see the moratorium issue resolved before he begins construction.
According to Levenbrown, even though a school operated at the Central Avenue site for nearly a century, the land on that block is zoned for multiple dwellings, meaning that Neuberg will not have to get variances to build the condos. Depending on how large the proposed units will be, however, the developer may have to go to the Lawrence Board of Zoning Appeals to get variances for height and setback regulations.
Other interested parties, including the Jewish Community Center of the Greater Five Towns, had submitted bids for non-commercial use of the property, but according to Pujia, the proposals were not strong enough to be considered. Other developers submitted proposals that included developing units at the neighboring Peninsula Public Library property, which is owned by the school district, in anticipation of the library's relocating to Zion Park in Lawrence. However, Greiner-Maltz officials have said that the offers that included development of the PPL property were not seriously considered because of complications they could run into with the village.
District officials pointed out that despite the approval to sell the property for $27.5 million, the school system will not receive the money anytime soon, since the public still needs to approve the sale and the deal is contingent on the moratorium on high water use being lifted. "Until [the moratorium] is lifted we have nothing," said Trustee Stanley Kopilow during the press conference. "We can't count our money until we receive it."
Comments about this story? ACoen@liherald.com or (516) 569-4000 ext. 204.
