An agreement for the Pokagon Fund to purchase a vacant elementary building from River Valley School District has fallen through.
The two organizations entered into an agreement in May for the Pokagon Fund to purchase the former Three Oaks Elementary School building so it could be used for non-profits and government agencies to offer services to southern Berrien County residents. However, in a statement released this week, the Pokagon Fund says it determined during its due diligence period that the cost of renovating and modernizing the facility would be too high.
The fund says the cost estimates came at a price that was much higher than anticipated, and also that revenue projections indicated that, even if the market-rate rents were charged and high rates of occupancy were maintained at the facility, the project would not be self-sustaining at any point in the next ten years. The purchase agreement between the Pokagon Fund and the school district allowed for this due diligence period before anything would be final.
The 25,000 square foot Three Oaks Elementary building, at 100 Oak Street in Three Oaks, was constructed in 1951. River Valley Schools says it remains committed to selling the property.
The Pokagon Fund’s full statement can be seen below:
tpf-statement-on-termination-of-purchase-agreement-with-river-valley-school-district-draft
