Brea : Financing of New School Nears Final Agreement

City and school district officials expect to complete a unique financing arrangement for a new $25-million high school next week that will replace 58-year-old Brea-Olinda High.

Most new schools require some state funding or special taxes, but the new Brea school will need neither, said Wayne D. Wedin, financial consultant to the Brea-Olinda Unified School District. “What we have here is quite a significant public-private partnership. And it’s drawing a lot of attention from school districts throughout the state,” he said.

The financial package will include bonds, land sales, a city loan and income from development of the existing high school property.

A $22.5-million bond sale that will be partially paid off with city redevelopment income was completed last week, Wedin said. In addition, the city will provide a $2.2-million loan, he said.

Lowe Development Co. will purchase part of the high school property on Birch Street next to the Civic Center and Brea Mall and lease the remaining portion that includes the school buildings. Lowe Development has already built an office building on the site and plans include more offices, a restaurant and a movie theater. The city will also contribute about $3 million for off-site improvements.

Under the agreement, the leased portion will revert to the school district in 30 years, giving the district title to a fully developed piece of property and a steady source of income, Wedin said.

The land sale is expected to be made final Friday when escrow closes, said Gaylen Freeman, associate superintendent of the Brea-Olinda Unified School District. He said students will continue to attend classes at the current site while the new school is under construction.

If the deal is completed, ground breaking for the new school, to be on Lambert Road at the 57 Freeway, would be held in October, said Freeman.