Major decision

The court battle is over for now.

Jackson County Judge Jack Grate ruled in favor of the Independence School District Tuesday, saying seven buildings in western Independence and Sugar Creek belong to the Independence School District and not the Kansas City School District or the School District of Kansas City Building Corporation.

This latest lawsuit was brought against the Independence and Kansas City school districts by the building corporation.

“We are very pleased with the decision,” said Independence Superintendent Jim Hinson. “We felt all along that we were in the right legally. This allows us to move forward without any more interference.”

In Grate’s decision, he ordered the Kansas City School District and the building corporation to transfer full possession and title of all property subject to the boundary change to Independence within two weeks, “at a time and place to be agreed to by the parties.”

In his ruling, Grate concluded:

• The Kansas City Missouri School District Building Corporation does not have legal standing because it is “simply a placeholder allowing KCMSD to finance bonds.”

• Ownership of and title to the buildings transferred to the Independence distict by law when voters approved the transfer of the buildings in November 2007.

• Even if title did not legally pass at that time, a subsequent Board of Arbitration decision requiring transfer of the titles to Independence is binding, and not subject to “collateral attack.” Therefore, the corporation can’t sue.

• The arbitration board did not – as claimed by the building corporation – set a value of $0 for some of the buildings.

• A permanent injunction against Kansas City and its building corporation is appropriate because the Independence School District “will suffer immediate and irreparable harm” if such an injunction is not issued.

The buildings being transferred are Van Horn High School, Nowlin Middle School and five elementary schools – North Rock Creek/Korte, Three Trails, Fairmount, Sugar Creek and Mount Washington. Anderson Elementary will also transfer to Independence, but it was closed years ago and is no longer in use.

The arbitration board, earlier this summer, ruled that Independence should pay a total of $17,087,500 for the transfer of property. It came to that amount by setting a value on Van Horn High School of $11,175,000 and a value on Nowlin Middle School of $5,912,500. Both of those buildings were constructed after western Independence became part of the Kansas City School District in the 1950s. The arbitration board found that Nowlin is underutilized and reduced the value of the building by 50 percent.

The remaining buildings were already standing in the 1950s. Grate accepted the Independence argument to the arbitration board that Independence patrons would be paying twice for those buildings if Independence were ordered to compensate Kansas City for them now. That did not, Grate said, equate to setting a value of $0.

The total owed to Kansas City was reduced by $4,223,141. That amount represents a fund balance transfer due from Kansas City. Independence posted a bond for the remaining $12,864,359 on July 9 following one of several hearings on the property transfer dispute. In Tuesday’s ruling, Independence is ordered to pay that amount to Kansas City.

The decision also dissolved the temporary restraining order issued July 8. All other pending motions were denied in Grate’s decision.

The ruling goes onto say that “ISD will suffer immediate and irreparable harm if it is not permitted title, possession and control of the real property and school buildings.”

“Despite KCMDS’s response on June 30 that it had no position with regards to the Plaintiff’s (Independence) request for a temporary restraining order, it obstructed ISD’s access to the buildings beginning on July 1,” Grate wrote. “Only in light of the court’s decision on ISD’s temporary restraining order did KCMSD give ISD access to the buildings. Further, without permanent injunctive relief there is risk that KCMSD will change its mind.”

In a statement released by the Kansas City School District Tuesday, district officials said “the Kansas City School District will continue to proactively cooperate and honor the ruling issued by a state arbitration board regarding the Independence boundary change.”

Furthermore “some might choose to see today’s decision as a defeat for the Kansas City, Mo., School District. However, it must be noted that like the Independence School District, the Kansas City, Mo., School District was a defendant in the litigation brought by the non-profit School District of Kansas City, Mo., Building Corp. Today’s decision brings clarity to the ownership debate and allows all parties to move forward in a cooperative and respectful manner.”

“With this latest court ruling, it is our hope to move forward and begin preparing for a productive 2008-2009 school year. The focus may once again be placed on job No. 1 – educating students.”

Hinson agrees and said it is his hope that this is the end of all legal proceedings and both school districts can continue to do what they can to best educate the children in their respective school districts.

“This has been a frustrating and consuming process. We have spent a lot of time and energy on this,” he said. “But we are moving forward rapidly and the timing of this decision, right before Extreme School Makeover, could not be more perfect. We certainly hope this is now over.”