Peshtigo School District May Lose Wolverton Property

On July 30, the Peshtigo School District received electorate authorization to purchase approximately 84.5 acres of property for $300,000. The property wraps around the Rennes Heath Care West facility on the corner to Aubin Ave and County Highway D. The property is owned by Perle and Dorothy Wolverton.

The District had sought to purchase the property to provide an Ad Hoc Committee looking at possibly recommending the construction of new Middle/High School with a location option other than the property across Green Street from the school.

A part of seeking the Wolverton property required that the District be very transparent in their efforts by publishing the location and parcel numbers of the property they sought and seeking an authorized purchase price. That openness on the part of the District may have played a part in what Administrator Kim Eparvier announced to the School Board at their meeting on Wednesday, Sept. 12.

Eparvier said that the day after the electorate authorized the purchase of the Wolverton property, he personally called the Wolvertons to deliver the earnest money per the purchase offer. Mr. Wolverton informed him that someone had stopped by and read the contract and this person had told him the district would not allow them to live in the house as soon as the district decided to start constructing a school.

Eparvier said he reassured the Wolvertons this was not the case and the Board and the electorate were made aware of the special arrangement that the Wolvertons would indeed be allowed to live in the house as long as they choose. If need be, Eparvier offered to have an addendum written up to remove any concern of Perle and Dorothy, or anyone representing their best interests.

On Aug. 2, Eparvier said he received a letter from an attorney representing the Wolvertons. The letter stated the Wolvertons had absolutely no authority to sell this real estate since it was owned by the Stephenson National Bank and Trust. The letter said that the District needed to renegotiate the contract with the rightful owner, the Trust.

On Aug. 6, an attorney representing the District forwarded a redraft of an offer to reflect the changes previously discussed with the attorney representing the Wolvertons. Eparvier said he requested the District’s attorney to forward this redraft to the Trust, and that it was his understanding that this was done.

On Aug. 7, Eparvier said he received an email requesting that the District sign-off on a Cancellation Agreement and Mutual Release on the offer signed by the Wolvertons. This prompted him to question that if the Wolvertons had absolutely no authority to sell the property, why would the attorney need the District to sign the cancellation agreement on the original offer?

This same email stated that the Trust had advised its attorney that they are following their procedures to determine the value of the Wolverton property. Although a timetable was not set, he assumed that they would be able to finish that due diligence process rather quickly.

Over the next couple of weeks, it was Eparvier’s understanding that the District’s attorney had attempted to contact the attorney representing the Wolvertons, but to no avail or response.

During the third week of August, Eparvier said he contacted a Trust officer from Stephenson to get an update on the offer of the District. The Trust officer said that they had indeed received the offer and stated that “It was a great offer.” However, the officer said they still wanted to wait to see the appraisal on the property. Eparvier said the officer told him that the appraiser had been out on the property and they were expecting the completion of the appraisal at the end of the week or early the next week.

After not hearing anything the following week, Eparvier said he called the Trust officer twice to get an update, but was not able to connect with him.

Finally, Eparvier said he received an email from the Trust officer stating, “I am sorry that I have missed your last two calls regarding the Wolverton property. The Trust Committee is still looking at the situation, and prefers that we communicate through our attorneys at this time.”

Eparvier said that he responded the following back by email, “Thanks for the response. Am I to assume the Wolverton attorney is the attorney we should work with? If not, please provide me with the name(s) of the Trust’s attorney(s) as well as contact information. The District is anxious to get an answer on its offer to purchase in a timely manner. Thanks again. I’d appreciate a timely response to this email regarding the contact information for the attorney representing the Wolverton Trust.”

Eparvier said he never received any response to his request for attorney information or the results from the appraisal, as he had requested.

Eparvier went on to say that on the afternoon of Sept. 4 he received a telephone call from the Trust officer he had previously spoken with. The officer stated that he was advised by the Trust’s Committee to inform him that the Trust Committee had now received a number of offers better than that of the District’s.

Eparvier said he then asked if offers were still being accepted. The answer he said he received was, “No, we have an accepted offer and it will proceed to closing.” Eparvier said he responded by asking the purchase price or the appraisal amount, but was told that that information was not available at the time.

The Board then spent the next several minutes discussing the options before them. One option would be to move and look at other land options. A second option would be to explore legal action on the potential that the accepted offer signed by the Wolvertons is still legally binding. A third option would be to investigate the course which allows public entities who are pursuing property to have the property “condemned” and continue to honor and support the Wolvertons wish to remain in the house as long as they want.

Eparvier reiterated that he was never informed by Stephenson National’s Trustees that there were other negotiations taking place. He said that the District never signed off on the offer initially given and signed by the Wolvertons.

Board President Mike Fifarek stated that the District had followed the procedures they are required to follow. He said that one of the dangers in following those procedures is that “land sharks” can take advantage of the School Board’s public hearing on the matter and outbid the district, and then turn around to offer the property to the District at a much higher price.

Eparvier added that the District was transparent in its dealings and someone took advantage of the district. He said that the District was upfront with the numbers, and someone used that information to undermine the school.

Board member Gary Larsen suggested taking legal action because of the signed document with the Wolvertons. He also said he was surprised the District wasn’t given the opportunity to make a counteroffer on the property with the Stephenson National Bank and Trust’s Trust Committee.

Other side options were discussed, but in open session the matter was placed on hold to ponder what the next step would be. It was mentioned that this development will probably compromise the District’s plan to go to an April referendum.

Returning to the agenda for the meeting, Student Council Representative Annali Kangas reported that early in this school year, the new hot lunch program has been very well received, so much so that there were some initial problems of running out of food. She noted that Homecoming is coming and will be held in conjunction with Peshtigo’s Historical Day. In that regard, all of the fall sports program have begun and are doing well.

Eparvier reported on the following recent hirings by the District: Carrie Kopatz-Patterson as an Early Childhood/Elementary Special Education Teacher; Amanda Wagner as a Part-time 4K teacher; Kelly Woller as a Part-time 9th Grade Science Teacher/Intervention Specialist for the first semester; Sue Martin as a Part-time Administrative Assistant; and Nicole Karman as the 7th Grade Volleyball Coach.

Under resignations, Eparvier noted the following: Derek Tate has resigned as the Middle/High School Tech Ed Teacher; and Kathryn Schenk, Karen Finger, Stephanie Bushmaker and Mary Ann Brown have resigned as Part-time food service assistants. It needs to be noted that all of the food service assistants have accepted positions with the new food service provider contracted by the District.

The Board approved and accepted all of the hirings and resignations.

Eparvier led the Board in a review of the preliminary 2012-2013 budget. He highlighted some of the significant changes, both higher and lower, from last year’s budget. Of specific note were that the current school year student count is up in both the Middle/High School and the Elementary School. A majority of the increase in both cases are from students who are residents in the district.

Counteracting a higher cost from last year’s early retirements are a number of cost savings in transportation and food service costs due to contracting those service to private enterprises.

The expected levy will be $2.798 million, reflecting a slight increase of $150,000. Final numbers will be presented at the District’s upcoming annual meeting.

The Board approved an extension to the bus contract with Kobussen Busing. The company had offered a 2% increase for the roll-over year (year 5 of the contract). The company is also exploring possibly extending it to years six and seven as well.

In regard to the busing contract, Board Member Amy Hammer asked if this was the opportunity to get the school name on the buses. For other uses, the bus company has been known to attach magnetic signs with a name on them. Eparvier said he would ask Kobussen.

The Board approved the Janitorial Contracted Service Agreement with ABM Janitorial. The feedback on the work they have done has been very positive. One slight change to the contract was to extend this contract for 21 months, to get the service to match up with other contracts, which start on July 1 instead of Oct. 1.

New State Legislation requires all school districts have a policy on Use of Restraint and Seclusion with Students. The Board had a first ready of this policy, number 5630.01 at this meeting.

Under committee reports, the Building and Grounds Committee reported on their tour of building interiors prior to the start of the school. The Finance, Personnel and Negotiations Committee reported that work on contracts with support staff has been progressing. The Policy Committee reported that all policies are in the process of being reviewed by NEOLA and will be back in the District’s hands soon. The Board will then start to review them.

In his Administrator’s Report, Eparvier updated the enrollment in the District. The Middle/High School is up about 30 students from last year, with an enrollment of 576. The Elementary enrollment is at an all-time high of 720 students. He added that the Elementary building is running out of room, in part due to more students, but also in part due to required programs and offerings, like Intervention Specialists.

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