The Buyout Opens the Possibility of Relocating the School Bus Yard to a Colorado Avenue Property
The Santa Monica-Malibu Unified School District Board of Education has approved a resolution to acquire the leasehold interests of two rental properties, a move aimed at increasing general fund revenue to support teachers, staff, and classroom resources.
At its regular meeting on Nov. 21, the board authorized district staff to proceed with a financing plan to buy out all rights and interests held by STG Three Properties, LLC (STG), in two properties located at 902-926 Colorado Ave. and 1631-1645 16th St./1630-1646 17th St. The acquisition will be financed through a Certificate of Participation (COP) not exceeding $13.4 million.
Currently under a ground lease set to expire in June 2051, the properties have been leased by STG since 2006 and by its predecessors since 1984. The district’s buyout plan will allow for direct management of the properties, which is expected to generate more revenue for the general fund while providing flexibility for future use of the sites. District officials also noted that the buyout opens the possibility of relocating the school bus yard—currently leased from a private owner at a cost of $550,000 annually—to the Colorado Avenue property, further enhancing efficiency.
Superintendent Antonio Upton described the resolution as a key step toward improving the district’s financial and operational flexibility. “This project furthers the educational goals of the District by using its assets more efficiently to increase funding for student learning. This buyout provides the District more flexibility for future uses that will benefit and provide opportunities for our students and staff,” he said.
The financing mechanism, a COP, is a lease agreement that allows government entities to secure funding for projects. Investors receive payments through a trustee, and the district plans to repay the COP with redevelopment funds that are earmarked for facility needs. These funds are separate from voter-approved facility improvement bonds, including Measures QS and MM, which will continue to fund critical infrastructure projects in Santa Monica and Malibu schools.
Upton emphasized that the resolution would not affect those ongoing projects. “This action benefits the District’s general fund and its future while ensuring our facility improvement projects continue as planned,” he said.
