Lease / Leaseback
We have been involved with the construction of both public and private projects for over 50 years, of which, many were school facilities constructed under the lease-lease back process. The following is an abbreviated list of lease/leaseback projects that we have completed in the past 5 years or that are currently under construction:
- St. Helena High School Choral Building – completed 2010
- San Marcos Elementary School – completed 2010
- St. Helena High School Field House – completed 2009
- Mission Hills High School – completed 2004
- San Elijo Elementary School – completed 2006
- San Elijo Middle School – completed 2004 (shown below)
What is a Lease/Leaseback Agreement? It is a project delivery method that enables a school district the greatest flexibility to act like a private entity through the use of the Education Code Section 17406(a) which states:
“The governing board of a school district, without advertising for bids, may let, for a minimum rental of one dollar ($1) per year, to any person, firm or corporation any real property that belongs to the district if the instrument by which such property is let requires the lessee therein to construct on the demised premises, or provide for the construction thereon, a building or buildings for the use of the school district during the term thereof, and provides that title to that building shall vest in the school district at the expiration of that term…”
There are numerous advantages to the Lease/Leaseback method, but primarily, it puts all of the decisions into the District’s hands and enables them to control the project.
• The District can select a financially sound, qualified, reputable Contractor.
• The Contractor can be brought on board early for pre-construction services.
• During the design phase, the Contractor will be relied upon to provide project budgeting, design assist, and cost analysis of building components to keep the project on budget.
• With the Contractor on board early the project can be designed towards an acceptable budget and responsibly planned to eliminate blown schedules.
The Lease/Leaseback Method gives the District the means to run their project(s) the right way. The Contractor is part of the project team. The contractors knowledge is used to design a project that meets the needs of the District, meets the project budget, uses appropriate materials that require minimal maintenance and provide maximum durability, and meets the District’s completion time goals.
We hope this will give you cause to consider both Lusardi Construction Company and the Lease/Leaseback method of project delivery for your future projects. In our experience, it has been a tremendous success in all instances and the Districts that have utilized the Lease/Leaseback method now use it as their norm.