Pre – K Observations City of Oak Ridge January 15, 2015

Overview  City Council is supportive of Pre-K educational concept and value-added to Oak Ridge education services  Superintendent and City Manager have shared information throughout the process  City Council recognizes long term need for solution on the 70-year old Pine Valley School

Immediate Challenge  In routine inspection in Spring 2014, the situation of lead based paint exists on the exterior of the building.  Estimated costs of up to $150,000 for the full building and “last investment” on school  Meet a projected August timetable as submitted to Head Start  Avoid Anderson County grant problems

Other Factors  ORS has provided lease option, lease purchase option, major repair options and studied dispersed classroom options  Building Department has reminded of state plan review process for public buildings over 5,000 square feet  Mitchell Building is solid and can be modified for school use according to Inspectors

Request for Private Proposal  Purchase Price (as is) at $4,500,000  Remodeling at $2,000,000  Amortized price at 10 years - $3,500,000  Amortized price at 20 years - $500,000  Square footage: 30,085 first floor 11,510 second floor  Annual interest 5%