Fountain Hills board weighs options for 4 Peaks and other properties as maintenance costs mount

Fountain Hills — The School District spent most of its work session discussing whether to retain, lease or sell unused properties, focusing on the vacant 4 Peaks campus and McDowell Mountain, after public commenters urged transparency about district spending.

Dr. Jay, who opened the facilities discussion, said he does not recommend selling the district’s parcels now, calling them "the future of the district" and noting they provide flexibility for growth. He summarized a Gordian facilities assessment that identified extensive plumbing, sewer and electrical problems at 4 Peaks and estimated roughly $5,000,000 would be needed to return the site to student-occupancy standards.

Board members and staff cited operating figures that show the building’s rent covers only part of its costs. Dr. Jay said rent for current tenants covers "a little over half" of the building’s operating costs and staff noted a current negative balance of $24,387 but also mentioned estimates of $50,000–$70,000 annual losses depending on which figures are run. The board asked finance staff to provide an updated calculation.

Administrators said portions of 4 Peaks have been leased to nonprofits and education-related tenants, but the district previously received a town code violation for renting the site and has not renewed leases beyond December 2023 as it evaluates options. Staff said the district remains responsible for maintenance even where tenants are present.

Several board members characterized 4 Peaks as a "money pit" and noted that many tenants pay well below market rates (examples discussed in the meeting included $800–$900/month for larger spaces). Others said the building has community value and potential as a learning hub and urged caution before ending existing agreements.

On McDowell Mountain the superintendent said a newer wing built in 1998 is well-suited for a preschool and described ongoing consolidation work to create an attractive preschool offering; administration suggested it may be possible to retain the preschool while selling or redeveloping other parts of the site. Dr. Jay said McDowell Mountain carries roughly $2.76 million in high‑urgency needs plus additional moderate needs.

The board was told a consultant who has been studying options will speak to the district on April 12, and any question put to voters would likely need a decision by May to meet election deadlines. Because the session was informational, board members made no final decisions and said further analysis, updated financials and additional community information will be provided before any ballot or sale action.