Memphis could charge Shelby County Schools rent
Ryan Poe, and Jennifer Pignolet
Shelby County Schools could pay Memphis around $4 million in rent for operating former Memphis City Schools on city property if the City Council agrees to a plan proposed Tuesday by member Philip Spinosa Jr.
Spinosa plans to officially introduce a proposal Dec. 20 requiring SCS to pay the city rent for any city-owned property it uses, which council attorney Allan Wade later clarified includes all of the properties formerly used by MCS. When MCS was dissolved in 2013, SCS took over the operation of the schools, but ownership of the actual properties remained with the city.
The city is under no obligation to contribute financially to the new county district. Any extra funding requests the district has, including the $27 million gap covered before this fiscal year, are the responsibility of the Shelby County Commission. But board members have long expressed wishes the city would contribute more, as the majority of SCS schools are within the city limits.
"The city council's support of public education in our community never ceases to amaze me," said SCS Board Chairman Chris Caldwell.
Several SCS officials — including Caldwell — were caught off guard by the proposal, and at first weren't sure what properties Spinosa was targeting. Chief of Communications Natalia Powers said Tuesday was the first the administration had heard of it. A list released by Wade late Tuesday shows 14 properties, including high schools Cypress, Douglass, Hamilton and Ridgeway, along with Hickory Ridge middle and elementary schools and Sherwood Middle School. Also on the list is Arthur Halle Stadium.
SCS board member Billy Orgel said he would be willing to hear Spinosa make his case.
"I'm sure if we're using things and aren't paying for them, we can come up with an equitable arrangement," Orgel said.
Spinosa reached out to SCS to discuss the rents, but SCS didn't respond, Wade said.
"I guess he decided he was ready to move forward," Wade said.
Spinosa declined to share more details about what he has in mind, including how much the city should charge SCS. Wade said those details would be hashed out in upcoming weeks.
But the goal of the proposal is to make sure the city is getting a return from its real estate, Spinosa said. He stumbled on the idea as he was reviewing the city's properties, looking for ways to make city properties more profitable.
"It occurred to me that SCS is using these properties and we're not reaping a profit," he said.
City and county officials have long fumed over how to split costs and revenues where their jurisdictions overlap, considering Memphis residents pay city and county taxes. Equal division of costs means city residents pay more, council members say.
The controversy recently manifested itself in fights over Memphis Light, Gas & Water Division payments in lieu of taxes and over a failed proposal to restrict the city's residency requirements to the city limits. Council members are also exploring the possibility of charging people who live outside the city additional fees to visit amenities maintained with city tax dollars like the Memphis Zoo.
Reporter Jennifer Pignolet contributed to this story.