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Nearly a month has passed since the Board of Trustees of Eureka City Schools backed out of a controversial land exchange agreement with AMG Communities - Jacobs, LLC, the anonymous private developer who had promised nearly $6 million for the Jacobs Campus. At this week’s meeting, the Board of Trustees will discuss the next steps for the long-blighted site.

If you aren’t familiar with the Jacobs Campus saga, here’s a quick recap: Last December, the Board of Trustees unanimously voted to swap 8.3 acres of the former Jacobs Middle School campus to a secretive corporation, known only as “AMG Communities-Jacobs, LLC,” for a small home on ⅛ acre lot, plus $5.35 million in cash. 

The controversial decision has drawn criticism from residents of Eureka’s Highland Park neighborhood, the South Eureka Neighborhood Alliance, the Eureka City Council, the League of Women Voters of Humboldt County and the Humboldt County Civil Grand Jury, which felt the “secretive” board “acted hastily and without sufficient due diligence.”

In the eight months since the deal was struck, AMG Communities asked to extend the close of escrow on four occasions. At the Board of Trustees’ most recent meeting on Aug. 8, the board voted unanimously to reject AMG Communites’ fourth request to extend the deadline to a date uncertain in November, after Eureka voters determine the fate of the Measure F, the Housing for All and Downtown Vitality Initiative.

AMG Communities issued a statement the day after the board’s decision announcing that it – not the school district – had made the decision to withdraw from the agreement. AMG Communities said it would “wait until the passage of Measure F … to reconsider purchasing the property if it is still available.”

Assistant Superintendent Paul Ziegler will present the Board of Trustees with five options for the Jacobs Campus at Thursday’s meeting:

1. Retain the property. Under this option, the board could choose to maintain the property in its current condition or make improvements to the athletic fields on the north side of the site. This option would allow the board to resume the surplus process “at any time.”
2. Continue property negotiations with the state Department of General Services, the entity representing the California Highway Patrol, which has expressed “ongoing interest” in purchasing the site. For years, CHP has eyed the Jacobs Campus as a potential location for its new headquarters. CHP was in active negotiations with the school district up until the board struck a deal with AMC Communities in December 2023.
3. Sell or lease the property to someone else. This option would require the board to notify the public before opening a competitive bidding process. Under this alternative, the board could seek a waiver from the State Board of Education that would allow the school district to accept proposals from public and private entities. In that case, the district would not be required to sale or lease the property to the highest bidder.
4. Develop the site with workforce housing. This option would be an “extensive process” and likely a long-term commitment for the school district.
5. Explore other “creative” solutions. This option includes links to sections of state code for Real Property Exchange (exchanging the property for “real property” of another person or private business), Joint Occupancy (allowing another person or entity to use the site) and a Public-Private Partnership (using private sector funds to help maintain the site).

A copy of the presentation can be found at this link.

Earlier in the meeting, during closed session, the board will discuss ongoing negotiations with the California Highway Patrol. So that deal is not dead.

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The Board of Trustees will also respond to the Humboldt County Civil Grand Jury’s report, “Eureka City Schools — Board of Trustees: Deal or No Deal,” which, as stated above, criticized the board’s handling of the land swap. 

The Board of Trustees of Eureka City Schools will meet Thursday, Aug. 29 at 6:30 p.m. in the district office – 2100 J Street in Eureka. The agenda can be found at this link.

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PREVIOUSLY:

• Who Will Get the Former Jacobs Campus? Bidders for Blighted Site in Highland Park Are the City of Eureka and the California Highway Patrol, With a Decision Coming Soon
• The CHP Would Like to Build New Headquarters on the Property Championed by People Opposing Downtown Housing Development, and There Was a Meeting About it Yesterday
• Open Letter Urging Eureka Voters Not to Sign the ‘Housing For All’ Petition Endorsed by 100+ Humboldt County Residents, Including Local Leaders in Politics, Business and Culture
• New Coalition — ‘I Like Eureka Housing!’ — Formed to Oppose Arkley-Backed Pro-Parking Lot Initiative
• Mystery Item on Tonight’s Eureka City School Agenda Suggests Imminent Action on Jacobs Campus, but the School District Won’t Share Details
• Eureka City Schools Board of Trustees Unanimously Votes for So-Called ‘Land Exchange’ With Mystery Developer
• The Eureka City Schools Board Voted on a Resolution Last Week That Was Not Published Before the Meeting. Is That Legal?
• At Town Hall Meeting, Frustrated Residents Discuss Future Development of Eureka’s Jacobs Campus; Mystery Developer Still Mysterious
• Security National Has Spent at Least $236,000 on the Pro-Parking ‘Housing for All’ Initiative So Far
• Grand Jury Slams Eureka City Schools For ‘Secretive’ Jacobs Campus Deal
• League of Women Voters Chimes in on Lack of Transparency in Eureka City Schools Property Transfer
• Rob Arkley Pursued Purchase of Jacobs Middle School Property Before Eureka City Schools Entered Land-Swap Deal With Secretive Corporation
• Eureka City Schools and AMG Communities Delay the Close of Escrow on Jacobs Campus Yet Again
• Eureka City Schools’ Deal With a Mystery Developer For the Jacobs Campus is Dead
• Anonymous AMG Communities Confirms Death of Jacobs Campus Deal, Vows to Try Again After Election Results