Lease Negotiation Update with ASU/ASU Prep, September 17, 2018

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Lease Negotiation Update with ASU/ASU Prep, September 17, 2018

September 17, 2018

Phoenix Elementary School District #1 Staff & Community (Phoenix #1)
Arizona State University Preparatory Academy (ASU Prep) Staff & Community
Arizona State University (ASU)

Dear Phoenix #1 Community, ASU Prep Community & ASU:

To move the negotiations forward between Phoenix #1 and ASU Prep, Phoenix #1 provided a counter offer on September 17, 2018.  The counter offer was made following receipt of an offer from ASU Prep that included rent lease payment of $500,000 starting in FY2021 and a commitment to beginning in-kind services beginning in FY2020.

Phoenix #1 supports transforming the relationship into a partnership with ASU Prep/ASU and believes such a partnership can be very beneficial for both communities.

The counter offer includes a combination of in-kind services and cash, as well as the Superintendent of Phoenix #1 joining ASU Prep Governing Board and semi-annual meetings among the parties to further solidify the partnership.  The in-kind services are to be agreed upon by both parties and carefully monitored.  And, the lease terms increase in value each year to achieve a combination of in-kind services and cash to total $1.5 million by 2023-24 school year. In 2019-20, the minimum annual rent due in cash is just $553,000 in the counter offer.

The offer is valid until October 1, 2018.  Should the parties not reach agreement by October 1, 2018, negotiations can continue yet without the exclusive negotiating agreement.

If you have questions regarding the lease, please email CommunityRelations@PhxSchools.org or call 602-523-5900.  Thank you.

If you have questions regarding ASU Prep and the operation of the school or status of the school remaining open, please contact ASU Prep directly and/or their Governing Board.  Phoenix #1 does not own, operate or manage the school so therefore cannot answer questions regarding the operation of the school.

Thank you,

Mr. Larry Weeks

CEO & Superintendent, Phoenix Elementary School District #1