I write regarding the solution proposed by School Board candidate Robert Zurgulis to creatively restore the deteriorating Natatorium to bring much needed money to the school system in the process.
The building — approximately a 20,000-square foot recreational facility owned by the Culver City schools — presently stands locked up, in disrepair and deteriorating. It brings no benefit to the school or the public. Restoring the facility will require infusion of considerable money .
The proposed solution entails the sale of the facility to private investors, who would purchase, restore and upgrade the facility, and lease it back to the school system. The schools and the public (at a nominal fee) will have use of the restored facility now sitting abandoned, and the school will have a considerable lump sum of money to handle its debts.
This “sale-lease back” transaction is quite common in commercial real estate.
A company that finds itself cash poor will sell a building it owns and occupies to an investor who wants a certain return on his cash. Then the company will lease it back from the investor. All terms and conditions are agreed on prior to the transaction being completed so that there are no surprises .
To skeptics of the plan, going forward will cost nothing. The facility is presently locked up and unused.
Evaluations and proposals could be made at no cost or inconvenience to the school.
Gary Haddock is owner/broker of Remax Alliance Group. With 25 years in the business, he holds the distinguished CCIM designation for commercial real estate, the CPM for management, and several California contractors licenses.
Mr. Haddock may be contacted at Mrgary1@hotmail.com
