City May 12, 2010 3:15 PM

EVCS Responds

EVCS Responds

-by Liz Evans, Chair, Board of Trustees Elmwood Village Charter School

 

I'd like a chance to respond to the one-sided piece of "news" that was published in Buffalo Rising early this morning.  That Sam Savarino would attempt to paint Elmwood Village Charter School in a negative light, while purportedly having an interest in our success as our landlord, is unconscionable.  EVCS has acted with nothing but prudence, honesty and transparency in this case and I'm very disappointed that Sam's attempt to acquire this property seems to have twisted his judgment.  EVCS wants to purchase the School 36 building, at the appraised price, and become a stable and long-term part of the community.  Sam Savarino wants to purchase the building so he can lease it out to a newly-approved charter school, becoming a landlord/developer yet again.  

Elmwood Village Charter School has been open since September 2006 and currently serves 175 students in grades K-6.  After a long and careful process EVCS determined that it needed to expand, both through 8th grade and horizontally by adding another class at each grade level. EVCS's families are anxious for the School to expand through 8th grade so that they can continue their child's education there.   EVCS currently has students on the waiting lists that outnumber the number of students enrolled in the School.  

EVCS's test scores after only three years put us among the top public schools in Buffalo.  The school emphasizes social responsibility, arts integration, multi-culturalism, and community alliances. EVCS operates with the belief that the social curriculum is as important as the academic curriculum, and children must meet with social success before they can achieve high levels of academic success. The students at Elmwood Village are experiencing this success in an intimate, peaceful, and diverse school community that appreciates different learning styles. The school is a diverse community, reflecting the Allentown neighborhood that it serves. Approximately 30% of the students identify themselves as black, 12% multi-racial, 15% Hispanic, and 43% white. 49% of our students come from homes that are identified as economically disadvantaged, and 17% our students have special needs that require accommodations or special education services.

Compared to the same grade levels in 2009, EVCS exceeded the Buffalo School District's performance by 27% in English Language Arts and 28% in Mathematics. Furthermore, compared to the same grade levels in 2009, EVCS surpassed New York State performance by 4% in English Language Arts and 5% in Mathematics.

EVCS was approached a year-and-a-half ago by some of their parents and other members of the neighborhood about the closing of School 36 on Days Park.  Neighbors expressed their excitement that the School might be able to acquire the building from the Buffalo School District or the City of Buffalo for a split campus.  Since EVCS is currently in the 4th year of a 20-year lease with Mr. Savarino for its Elmwood Avenue Building, they needed to find a second site within reasonable distance if they wanted to expand.  EVCS entered into talks with the City and former Common Councilmember Brian Davis to have the building decommissioned by the District and to begin negotiations with the City Real Estate Department.  Councilmember Davis introduced a resolution to the Common Council that the City would lease the building to Tapestry for one year and then sell the building for the appraised price to Elmwood Village Charter School.  EVCS and Tapestry were the only two parties that went to the Councilmember to express a desire to occupy the building.  Neighbors expressed support and so that's why the resolution was proposed and passed.

EVCS had the building appraised by two different appraisers and had a review of both appraisals done by a third appraiser.  The price of the building at $15/square foot puts it at more than three times the next most expensive school building on the real estate rolls, which is $4.25/square foot.  The average price is $2.75/square foot.  Besides the appraisals, they have also conducted a Phase I and Phase II environmental analysis and have had an engineer and architect tour the building and give their assessment of necessary improvements to the building.

Despite claims of being blindsided, EVCS representatives met with Savarino on two occasions during this period to try to ask for cooperation, rather than competition.  EVCS reps even met with real estate agents to find other suitable locations for West Buffalo in order to find a win-win situation.   Charter Schools have enough outside forces working against them for them to be pitted against each other, as Savarino has now done.  In fact, the current tenant of School 36, Tapestry High School came to be in that site because they piggy backed onto EVCS's request to have the building decommissioned after reading about it in the local press.  Even though EVCS was interested in purchasing it then, they backed off to allow Tapestry to have a temporary site.
 
EVCS has always operated in the light of day - holding community meetings, working with the neighbors, the State Education Department, the Common Council, and the City Real Estate Department.   The neighborhood associations are favor EVCS's acquisition of the building because they are an established and successful school.  If Savarino owns the building for the WBCS (slated to open this August), and that school is not successful, then he is free to do whatever he wants with that site, including condos or low-income housing with Federal money.  By the way, the West Buffalo Charter School has the entire city in which to locate their school.  

I don't think that the whole story has been shared by Mr. Savarino about his offer, i.e. that its terms changed before and after the approval of the charter of the West Buffalo Charter School in February 2010, well after a contract had been under negotiation between EVCS and the City. 

The Common Council voted to approve the contract of sale unanimously on March 16th, despite the fact that they were aware of Savarino's competing bid.  By filing an Article 78, as well as a lawsuit against EVCS for "anticipatory breach of lease" Savarino has forced EVCS to spend time and money fighting to acquire the only suitable building that is near enough their current building.  EVCS is also at risk of losing a facilities grant from the State Education Department specifically granted for the purchase of the building if the deal isn't completed soon.   Savarino has been undermining EVCS's bid to expand by maligning them to their authorizer, the State Education Department, and at public forums like the Board of Education public hearing.

This building is a just perfect for EVCS - not because it is a work of art or in excellent shape - it is not.  But it is in a wonderful, vibrant neighborhood overlooking Days Park in Allentown, which is EVCS's home.  For EVCS, it's literally the only option for expansion, both financially and geographically. 

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I thought the article was about bungling by the City. Elmwood Village is a great school but why should they be able to buy property for less than it's worth? Either the process is flawed or rigged. Why attack Savarino when he is willing to pay more money for another Charter School.

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Agreed. Sounds like sour grapes to me. I feel your pain EVCS but it sounds like a pretty straight forward bid process to me, and you lost.

replied to Carl R
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Savarino is in it for himself, no one else. He would stand to make a lot of money off this transaction, at the expense of a publicly-funded charter school.

As stated elsewhere, Savarino did not show real interest until WBCS had its charter approved in February 2010. Until that point, WBCS was a dream, not a reality, and apparently he didn’t have enough faith in that dream to purchase the building on speculation that WBCS would be granted a charter.

If it wasn’t for either charter school expressing interest in that building, the worth it would be much less that the $540,000 that the city accepted.

replied to Scott Norwood
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The residents of Day's Park are the one's who revitalized the neighborhood and have fought to make it a great place to live. Savarino has made no effort to work with them or keep them in the loop, unlike Liz at EVCS. They want EVCS. They want their kids to go there. I know that shouldn't necessarily seal the deal, but it should count for a lot.

Granting that property to Savarino will be a huge blow to the Park, especially considering what he could possibly do with the property once he gets his hands on it. Is he really going through all these maneuvers (including misleading BR) because he wants to put a school up, or because he sees a major investment opportunity in the property?

I'm leaning toward the latter.

replied to Scott Norwood
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More short-sightedness on your part Carl& Scott. The Common Council to their credit, looked at something more long range than a simple 200,000 bribe by Savarino. Maintaining the vibrancy of the Days Park neighborhood and increasing the tax base with a successful neighborhood school ensures long term stability of this area. Lord knows Buffalo can use all the stability that a successful public school has to offer.

replied to Carl R
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Like I said below, I didn't know Elmwood was a public school. I think its great that the neighbors were able to influence the process. Is there a place on-line that we can see the record of the deliberations by the City?

replied to kerrydog
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why attack sam? he is trying to screw his own tenant. he is trying to screw all of us by using are tax dollars to get a building at an inflated price. he doesn't want the school (West) to last so that he's gonna have another condo site to develop in a couple years.

replied to Carl R
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Do you think that every public school should have to outbid a developer for their buildings?

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Sorry, I didn't realize that Elmwood was a public school. In that case, I think its great that the City and School Board give you a discount. Also, if you are generating that much surplus cash from your existing school that you can make this kind of investment you are probably doing a good job.

replied to LizLiz22
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they both are public schools...

replied to Carl R
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They are both public? Do they cater to different types of kids? What's the difference between and "Elmwood Village Kid" and a "West Buffalo Kid"?

replied to hilaritee
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It is a shame that in a city full of vacant and underutilized property that these 2 schools have to fight over this space.

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Exactly.

replied to STEEL
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There is a great empty school on Ontario St. in Riverside for starters.

replied to STEEL
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There are vacant buildings in Buffalo?

replied to STEEL
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A very interesting article by WCPerspective. It does clearly document the dysfunction within City Hall with regard to communication and property disposition.

For me, it comes down to this - the Council passed a resolution (containing a codicil) authorizing the sale of the school to EVCS pursuant to the appraisal method. The City later signed a contract of sale with EVCS. Sam wants to unravel the deal based on two things: 1) the miscommunication screw-ups by the city (which are serious), and 2) the lack of legal authority by the Appraisal Review Board, (including mistakes on the part of the Board).

I would not unravel the sale to EVCS unless it can be proven that the Council did not intend to sell to them, or that the Council was mislead prior to passing the resolution. If the final appraised value holds up to professional scrutiny, the sale should continue uninterrupted. If it's determined that the correct appraised value is higher than the current contract price, EVCS should be given the opportunity to pay the higher price prior to any attempt to resell the property.

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That sounds fair. My only question is does anybody on the Council or in the Administration have kids that go there?

replied to skarnath
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It sounds to me like it should depend only on whether this was lawful:
"The Common Council voted to approve the contract of sale unanimously on March 16th, despite the fact that they were aware of Savarino's competing bid."

The courts should expedite a decision and the NYS Education Dept should be flexible about the facilities grant deadline considering the circumstances.

As long as the Council's action was legal, I wouldn't criticize their decision. If Savarino had made a higher bid back in 2009, a good argument could be made that the highest bidder should get it. But if he didn't, and if back then the Council indicated to EVCS that the sale would happen and to plan accordingly, it would sound unreasonable for the Council to then later yank the offer away.

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Has EV looked at the former RC school at Edward and Elmwood? It is now owned by a former charter school landlord. I think it is for sale (it is listed). The BOE is leasing it until next year so it would be available. It has 8-10 classrooms, offices a gym and areas that can be labs. It is much closer than school 36. If they are having a split campus it would seem to be perfect. Am I missing something?

It is a shame EV is looking at 36 when this building is available. Wouldn't 36 be too big for a split campus for EV? I think the building is too small for WBCS.

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yes its too small

replied to Peabody
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Has EV looked at the former RC school at Edward and Elmwood? It is now owned by a former charter school landlord. I think it is for sale (it is listed). The BOE is leasing it until next year so it would be available. It has 8-10 classrooms, offices a gym and areas that can be labs. It is much closer than school 36. If they are having a split campus it would seem to be perfect. Am I missing something?

It is a shame EV is looking at 36 when this building is available. Wouldn't 36 be too big for a split campus for EV? I think the building is too small for WBCS.

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As a homeowner in Allentown, I can personally attest to the contribution EVCS makes to our city. Savarino needs to back off. I can understand that he would love to be the landlord for eternity at 36. Of course he would. But his greed needs to come after the needs of the children of Buffalo. EVCS is a fantastic school with better leadership. Their expansion is for the better of us all. And to the people of the new charter: 1) there are many empty schools in this city, and 2) do you really want to be Savarino's tennant?

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Now I am confused again. Isn't Elmwood abandoning their building on Elmwood. I thought Savarino invested 2 million in that building and that is part of why he is fighting with them.

replied to beer boy
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EVCS would occupy both with Savarino continuing as landlord of the old telephone building. Expansion allows for greater class size and the addition of a middle school. A great group of parent leaders with a proven and valuable track record occupying, permanently, Allentown public schooling for MY kids. Perfect.

replied to Carl R
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As you are obviously familiar with the lease and history of the telephone building conversion, of course you should realize that EVCS has no plans to abandon the telephone building. EVCS will continue to honor the lease with Savarino. West Buffalo Charter School - be warned - do you really want to be in a long-term relationship with the likes of a landlord who is trying his best to curtail your growth?

replied to Carl R
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Isn't it true the EVCS hasn't even applied to the State to allow a split campus? I sense that 'classism' is playing a role in this: EVCS is what's 'best' for the community. Puleeeeze.

No more back room deals- open it up and let the highest bidder win.

replied to Greenca
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"Classism?" Did you note that half of EVCS's population is economically disadvantaged? West Buffalo is attempting to locate themselves essentially in EVCS's backyard and I have heard from multiple sources they do not intend to offer busing, so there is no reason to believe their population will look significantly different than EVCS's. Besides, all charter schools are required by law to accept students by lottery when they have more applicants than spaces. Doesn't sound like classism to me.

replied to Platt4
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The state ed. dept. is fully aware and supportive EVCS's expansion plans, including the split campus. Otherwise why would the school go down this road without the support of SED?

BTW - the PS36 wasn't sold by auction - it was a sale by appraisal, a method allowed in the city charter. There were no backroom deals. EVCS has been very upfront and public in the purchase process (which began about a year ago I believe), which is a reason why there is strong neighborhood support for this transaction. I haven't read any comments from the Allentown/Days Park communities that would prefer Savarino getting involved. In fact quite the opposite.

Why are people so eager to have Savarino further line his pockets? If he's willing to spend more than it's worth, he's passing the costs on to WBCS, diminishing the funds available to their students. But I guess as long as a private developer makes his money, it's ok, isn't it?

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Appraisals- one low (surprise, by the school) and one by the city (high). The Appraisal Board averaged them at $540k. Savarino offered $800k. That sounds like a 'deal.' From the timeline in the other article, Savarino made it clear he was interested also. Why was this ignored by staff? Because slimey Davis slipped something into a resolution that it would be sold to EVCS, completely ignoring the established city process of disposing of property? I guess we'll let the courts decide. Something stinks Greenca, and you know it.

replied to Greenca
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EVCS approached the city about purchasing the building, and as the main story points out, Tapestry approached EVCS with an interest in leasing the building for one year. Both schools made a joint proposal to the city. The high appraisal was not ordered by the city. The sale by appraisal process calls for the prospective purchaser to order an appraisal from a list of approved appraisers. Both schools jointly ordered the first appraisal. Tapestry accepted the lease amount on that appraisal for its own reasons; most likely it was only a one year term and time was running out. EVCS ordered a second appraisal, from a very reputable firm that the city uses extensively, who came up with a much lower and realistic value. A third appraiser, also from the approved list, reviewed both previous appraisals and concluded that a lower value was a more accurate reflection of the buildings value. However, the city decided that an average of the two would be the value. People seem to be confusing a sale by appraisal with a public auction. These are two different processes.

Nothing was "slipped" into the common council resolution. It was the intention of the common council to lease to Tapestry for one year and sell to EVCS at the end of the lease term. This was public record. It was not done behind closed doors. Mr Savarino knew, but perhaps he wasn't really that interested in the building at that point (probably since he didn't have a tenant lined up yet since WBCS was only a theoretical possibility at that point)? The other article claims "his interest in purchasing the property for its appraised value." Where was the appraisal he ordered? That is the responsibility of the prospective purchaser, not the city. Was he really that serious back then? Is his memory of the timeline of the events accurate?

And yet the contract was approved by the common council unanimously. This was after Mr Savarino presented his case to the council at a caucus meeting before the vote. The community also made their wishes known to the common council. The common council was not misinformed.

I find it interesting (and more than a bit irresponsible) that WBCS claims it has absolutely no other options. Fine, they wished to have PS36 as their preferred location. If you were starting a school, would you identify only one site without any serious alternatives, especially if the site under consideration was under a contract of sale to someone else? The entire city of Buffalo is booming with no available buildings anywhere? That should have made the national news after Obama's visit. A school in the heart of the west side was suggested by a council member as a possibility for WBCS. Apparently Savarino/WBCS has not seriously pursued this alternative.

Yes, I know something stinks. Greed stinks. The nonprofit publicly-financed school that wishes to expand so it can offer more spots and educational choices (and has strong community support for doing so) is not the greedy party in the discussion. A hefty fee can be earned by a developer off another nonprofit publicly-financed school elsewhere. That is what stinks.

replied to Platt4
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Paragraphs 2, 3, and 4 of that (if all true) make a very solid argument in favor of EVCS.

replied to Greenca
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If Savarino was willing to pay any third party apprisal wouldn't that be the appraised value? WCP says Savarino met with the City and affirmed he would pay a minimum of $725,000and also had an offer and contract in. Is that true? If that is the case would the minimum the City should have sold the building to WBCS was $725,000? I mave not seen anyone refute the facts stated by WCP.

I think the WCP article was about the City not having the process straight with the effect of misleading one or two charter schools and pitting them against each other. The City was not even having the appraisal Review Board run properly further screwing it up.

I think the reaction of EVCS to the article may be telling.I am starting to think that if they react that way to an article by WCP about the City (seems he takes time to get the facts straight in his post)then they would be willing to go to any measures to see their dream realized. Too bad this came at the expense of another charter school that is already approved.

One other thing - the WBCS web site indicates they want to locate in the Days Park neighborhood for a specific reason and the school seems created to deal with students in that neighborhood. It would be hard to locate in another area. They also show School 36 as their location. This must mean that SED has approved WBCS for that location.

WBCS/Savarino/EVCS/WCP - can we just see the documents?

replied to Greenca
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Savarino may have stated he was interested, but he did not yet have a viable entity. West Buffalo's charter was not granted until February of 2010 - long after EVCS had entered into negotiations with the city and had spent many, many thousands of dollars to acquire the building. By the time the charter was granted, an agreement had already been drawn up by city real estate. I'm not sure it would have even been legal for the city to have pulled out of negotations at that point considering EVCS met all the terms set forth by the city.

The insinuations here are so ridiculous. If "slimey Davis" were going to do favors for anyone, it would have been for Savarino. Savarino built Davis' house. Here is a link to a quote from an old Buffalo News article (not available on the Buffalo News website anymore) regarding Savarino's connection with Davis:

http://eagercolin.wordpress.com/2009/07/14/brian-davis-missing-in-action/

My guess is that Elmwood Village expressed interest long before Savarino had a viable plan. If they had actually been competing against each other at that point, I'm sure EVCS would have lost out.

replied to Platt4
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Sounds like lawyers are making their arguments by post.

I have not seen anybody refute any of the facts cited by WCP in his article or introduce any facts that diminish the facts in the article. EVCS may have been working hard for community approval (good) but for a building they did not have a valid claim on any more than Savarino/EVCS. Did Savarino have communication with the City as stated in the article? WCP seems to be using documents for his facts. I think he must have received them from someone (Savarino?)I assume they are public documents that can be accessed. It would be good to see if WCP can substantiate his claims and EVCS can substantiate theirs. Would Savarino or EVCS post those documents and save us the trouble of finding them?

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You do NOT have to have a location secured to get Charter approval from SED. In fact, a charter school applicant is not a legal entity (it becomes so upon charter award), so taking any action before the actual charter is approved is not possible. Missing from this conversation is the Herculean task of opening a first year charter school in the time allowed from Charter award to day one of school. Many local developers, not just Sam, try to jump in and get involved once a charter is approved as the timeframe is so tight, it is likely the Charter School board (the decision making entity until staff is hired) will need the expertise (and connections) of a developer to get their preferred location up to code in the time allowed.

I say the best case scenario here is to let EVCS take the Days Park school and that WBCS find a temporary site to open under the time constraints of their charter. This will allow a slew of developers to fight over the renovation of another building that can be brought up to code for WBCS use. This way we get 2 buildings brought back to life and two additional neighborhood schools in the City.

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By the way, it has been mentioned many times that the Common Council approved this sale unanimously. It was also mentioned that Savarino, his lawyer, and a West Buffalo representative spoke at the Common Council meeting prior to the vote taking place. The Common Council was clearly aware of Savarino's offer. The Common Council is made up of elected representatives chosen to make these decisions. Let them do their job.

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I know one Common Council member and he said to me that he was surprised to learn that EVCS was not approved and had not even applied to NYS. He said a representative of EVCS stated publicly at Caucus that that they were approved. He also mentioned that he though the Savarino suit would succeed. Did anyone notice this press release hidden on the WBCS site? It could be titles 'WBCS Responds". It says EVCS has not yet applied to NY for an expansion.

www.westbuffalocharter.org/WBCS/West_Buffalo_Charter_School_Files/WBCS.Final.PressRelease.5.12.10.pdf

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