“HISD needs to get out of the real estate business and set themselves up as a 40 year build to suit lease with AA credit and 10 year options to the end of time, thus allowing private development to be holding the bag in year 41 if the neighborhood has turned and students have migrated elsewhere.
Oh, they haven’t? Still top notch? Great, we renew, and will again in 10 years.
Hell, the deal would/could even include mandatory capital infusion from the developer (or assigns, sells) upon exercise of option!
Why am I not in charge? I welcome people to explain the downside of this idea, truly. I’ve been unable to see it, myself.
Oh, and if the peanut gallery tries saying that there would be a developer on the planet who wouldn’t jump on a 40 year lease commitment build to suit with an HISD guaranty is just lying. If HISD defaults on the rent, first of all we should all be stocking up on shotgun shells and bottle water, but more over IF they default the developer has permanent debt, favorable loan terms, and can easily shop the market to backfill with any number of learning institutions who would be licking their chops to get that deal.” [HTX REZ, commenting on Third Ward Residents Protest HISD Proposal To Close Historic School]