PUSD rebuts developers' claims PUSD rebuts developers' claims (May 28, 2004)

School district pledges commitment to build Neal Elementary School
by Teresa C. Brown

Responding to last week's Pleasanton Weekly cover story, school district Superintendent John Casey issued a statement Tuesday during the district board's budget hearing meeting refuting Signature Properties allegations that the district was making a "scapegoat" out of the developers. Casey also reiterated Pleasanton Unified School District's commitment to build Neal Elementary School.

Following a short closed session meeting during the budget hearing, Casey read the statement responding to the Weekly's May 21 story entitled "Signature's Story." The story was based on an interview with Signature Properties executives Jim Ghielmetti and Jim McKeehan. Signature Properties and the PUSD are currently in litigation regarding the building of Neal Elementary School.

The school district has filed an appeal challenging Alameda County Superior Court Judge Ronald Sabraw's ruling that Signature is not obligated to pay any cost toward the construction of Neal as the school district claims the developers are obligated. PUSD has also filed fraud and deceit charges against the executives.

Casey's statement, in full, follows:

"I felt that the cover article of the May 21 edition of the Pleasanton Weekly was uncharacteristically (for that publication) out of balance. Many people have called our office to find out why no comments were included from Pleasanton Unified School District. The answer? No one asked us.

"As previous news articles in the Weekly and other local newspapers have noted repeatedly, our Board of Trustees remains committed to opening Joshua Neal Elementary School as the 10th school to serve the community's students. We have purchased the land, helped fund the roads and other infrastructure leading to the site and earmarked funds in our budget for the projected operating costs of the school. The question is not whether the school will be built, but who will pay for costs exceeding $8.5 million.

"The financing associated with the construction of Neal School is complex and will be decided in a court of law. There were numerous efforts made to come to an agreement prior to legal remedy, and we are still willing to sit down with the parties involved in an effort to reach a mutually acceptable compromise. Financially, legal recourse is the prudent and responsible course of action for the Board of Trustees to take as at least $5 million in costs to the school district are at stake.

"Since 1992, the developers who stood to gain the most from Neal School (as a selling point for the homes they built) and those who purchased those homes paid at least a collective $5 million less in school impact fees than they would have in any other development. The reason? We believed we had entered into an agreement where the developers would provide for the school, provide up-front construction costs as an interest-free loan to the school district, and provide a set cost to the District of $8.5 million for the school.

"To us, it is clear that fairness requires that all developers be assessed in a similar fashion. The estimated $5 million difference enjoyed by Signature Properties and Standard Pacific is what we continue to contest through the legal system.

"The District remains committed to building Neal School on the Vineyard Avenue Corridor. We have sent letters dated March 21 and April 28, 2003, asking Signature Properties to build Neal School now. We even offered to purchase the architectural plans for Neal School, which already had received approval from the Office of the State Architect. That does not sound like (Signature Properties) may have become the scapegoat for those who don't want to see Neal built, but don't have the political strength to say so publicly, as Jim Ghielmetti states in the article. This is a school district that is committed to building a school and a District committed to holding developers responsible for the promises they made to our community's children."

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