The District is an Oregon public school district. Like other public entities such as cities and counties, it is granted authority to manage its resources to achieve its mission, which in the District’s case is to provide education services to its students.

The Salquist Road property is a 12.4-acre parcel of land located at 5600 SE Salquist Road. It is adjacent to the city of Gresham’s Southeast Community Park, a 16.1-acre piece of land that is currently undeveloped. There is no fence between the two properties.  The property was vested in the District in 1986 for $255,789.

Yes. In a series of public meetings beginning in 2021, information about real properties owned by the District was presented to and discussed by the Board in sessions open to the public. In those public meetings, the District administration shared with the Board that various District properties (including the Salquist Road property) were not necessary for school purposes. Specifically, in March 2024, the Board voted in a public session to authorize the sale of the Salquist Road property.

After obtaining Board approval, the District entered into a contract with the buyer, property developer HEX, LLC. 

In October 2024, based on a misreading of Board Policy DN, the District sent a termination request to HEX. The Board did not take formal action to terminate the agreement.  The District termination request was never agreed to by HEX. As a result, the parties did not terminate the contract. 

As with any real estate contract, unilaterally terminating the agreement may be deemed a breach of the contract, creating significant uncertainty and financial risk for the District.  Our insurance would not cover a breach of contract.

School boards are required to follow ORS 332.155 when selling property. ORS 332.155(5) states that the school board may sell all property that is not, in their judgment, required for school purposes. 

As far back as 2021, Board meeting minutes document that District staff reported to the Board that the Salquist Road property was underutilized. In 2023, the minutes document a discussion on why the Salquist property was no longer needed for educational purposes. The adopted board meeting minutes demonstrate that the school board received and considered the necessary information to determine, in their judgment, that the Salquist Road property was not required for school purposes.

At the March 13, 2024, school board meeting, the school board voted unanimously (6-0) to sell the Salquist Road property for $4.4 million to HEX, LLC.

Board Policy DN, Disposal of District Property, pertains to surplus equipment and materials. Initially, district leadership, legal counsel, and the Board believed this included the disposal of real property because of its reference to ORS 332.155 in the footnote. The sale of real property by a school district board is governed by ORS 332.155, which the school board followed. This policy was last reviewed in 2015. This policy will be reviewed and updated now that we have learned new information.

No. The District is a public subdivision within the state of Oregon. It is not a state agency. ORS 270.100 et seq. describes the transfer procedures for state agencies. They do not apply to the District.

Using current specifications, the Salquist Road property is too small a parcel to construct a new, modern school.  Accepted design parameters for new middle and high schools require a minimum of 15 or 16 acres to safely and effectively construct the needed improvements. 

For elementary schools, it is recommended to start at 11-12 acres and then add an acre for every 100 students. Our smallest elementary school in the district has 360 students. The Salquist Road property is 12.4 acres. Importantly, the Salquist Road property is approximately 1,500 feet from Kelly Creek Elementary, a currently operating K-5 elementary school.

District enrollment has shown a steady decline over the last ten years, which is matched nationally and reflects lower birth rates. Additionally, the District's population projections, including new development, do not indicate a need for additional student capacity, and the Salquist Road property’s close proximity to an existing elementary school makes building another school so close to an existing modern elementary school imprudent. It is important to note that to serve additional students in the future, the District can redraw school attendance boundaries to access available space in other schools.

If there were a need for a new school, the District would have to ask the community to pass a bond to generate the funds to construct the improvements (the building itself). We do not anticipate asking the community to pass a bond measure for several more years.

Other schools in the District are on property of a similar size to Salquist. Those facilities were constructed decades ago. Since then, schools have evolved into multipurpose community centers, hubs for services, and event gathering spots, which require more space.  Additionally, design parameters have modernized with modern school architecture driven by safety needs, transportation needs, new construction materials, and value engineering.

The District is currently underway with a state-required, long-range facility planning process. We have contracted with Woolpert, an architectural firm, to facilitate this process. Woolpert completed a comprehensive enrollment report, which confirmed our understanding that the District is not likely to increase student enrollment over the next ten years. In fact, it projects a slight decline, which is consistent with past studies.

View the Comprehensive Enrollment Report

View the May 13 Long-Range Facilities Planning Meeting Slide Deck

Our student population is down 6% from 10 years ago. District school buildings generally run at 70% capacity, which varies by level and school.

Thanks to the 2016 bond, we added classrooms at the elementary level, where there is capacity for growth. This ensures that the District will have the flexibility to accommodate enrollment needs for many years. If the projections indicating continued student population decline were to shift, our current school facilities would have the space to absorb substantial increases in enrollment.

No, ORS 332.155 does not require an appraisal before the District sells a parcel of real property in its inventory. The District’s realtor valued the property, which was confirmed by a separate, independent valuation. As an additional measure, we have ordered a full appraisal to be completed.

The sale of District real property occurs very infrequently, and it is not a regular part of the District staff’s work. The current School Board directors and District administration have not had the opportunity to sell District-owned real estate in the past, and we have learned a great deal from this process. The District acknowledges that invoking Board Policy DN at the beginning of the process created some confusion in the community. While there is no prohibition against the District passing a resolution to declare real property as surplus, it is not required by ORS 332.155. Going forward, we will review our policies and practices and make changes as necessary to improve these processes. We acknowledge the challenges of initiating policy changes while looking to those policies to conduct District business.

When the school board voted to sell the Salquist Road property, we understood that the City of Gresham would need the office space we currently use for the District office. The District began looking for office space within Gresham and determined that available space was cost-prohibitive. A more feasible solution would be to purchase a vacant building and renovate the space for District needs. The District identified the soon-to-be vacated Gresham Library building as a possible solution to an urgent challenge. Since the Salquist Road property was an asset not required for school purposes, the District viewed the sale of this property as a step toward acquiring the Gresham Library building.

Purchasing the Gresham Library building also would have solved a three-decades-long District Office space challenge. When our office was built in the late 1970s, it was designed to serve the Gresham Union High School District, which encompassed only two high schools. In the mid-1990s, the Gresham High School District combined with the Orient School District, Damascus School District, and the Gresham Grade School District, effectively quadrupling in size. Since then, we have been housing District office personnel in four locations which increases costs and effects efficiency. Moving all District office personnel to one space would allow all district staff to operate from one location, allowing for greater efficiency and increased support to our school buildings. The Gresham Library is also centrally located within the District boundaries.

Using the funds generated from the sale of land not needed by the District for school purposes will enable us to solve many challenges without impacting the budget for schools and programs. The District submitted a Letter of Intent to purchase the property. Ultimately, the Gresham Library building was purchased by the City of Gresham from the Multnomah County Library District.

Though we could not acquire the Gresham Library building, the money made from the sale of both the Chase Rd and Salquist properties will be held in the capital improvement budget so that if an opportunity to relocate the district office does arise, we can move.

The District intends to proceed with its contract with HEX, LLC, the buyer of the Salquist Road property. 

If you have any questions, please contact Communications Director Athena Vadnais at 503-261-4557 or vadnais@gresham.k12.or.us