Yosemite Community College District (YCCD) is in open negotiations to purchase the Modesto Bee building in the heart of downtown. For the last few months, YCCD has been mulling over the proposed transaction and is finally nearing a decision.
The idea was first brought to the district from the Bee, or more specifically from its parent corporation, the McClatchy Company. Since the Modesto Bee began printing its daily paper at the Sacramento Bee in late September to cut costs, the Modesto Bee has a large portion of their facility out of operation. The logical choice would be to sell the unused space, and they hope to do just that.
The two-story building and nearby parking lot have been for sale since January with a list price of $7 million to $8 million. The Bee staff hopes to be able to share the space with whoever the new owner will be.
"The current offer we are negotiating does include a leaseback option," said Bee Publisher and President Eric Johnston, "meaning that we would be remaining in a portion of this building [in] an amount of space appropriate for our new operations and staff size."
But what does this mean for the Yosemite Community College District?
The District's main interest in the building is not for classrooms but to expand district office space. Central Services and the existing buildings where district members work, which were built in the 1940s, have been a topic of discussion for remodeling or new construction for some time. The Modesto Bee building may be the answer YCCD was looking for.
"The objective is to have enough space for the district office to function in," said YCCD Chancellor Roe Darnell.
Darnell has been Chancellor for the Yosemite Community College District for almost two years. It is his responsibility to oversee the total district operations which includes deciding where funding will be used and how. He has say over the broad district budget but not the college district budget, according to Darnell.
Voters approved funding to meet college district needs in November 2004 when Measure E passed. It included $7.35 million for administrative offices and an information technology center, plus $9.21 million for transportation and receiving facilities.
"I began immediately to look around for … options," he said in regards to Measure E, "taking what was given in terms of the directions the colleges wanted to go."
All of the services operating under YCCD have their own savings, funds, and boards who make the decisions which affect the colleges specifically. When Modesto Junior College decided to begin construction on their new parking lot, the funding for it came directly from the school's own account. The Chancellor and YCCD offer support and guidance for the community colleges on how to spend their money efficiently.
Darnell says they work by the mantra, "We try to do it faster, we try to do it cheaper, and we try to get more results out of it."
And yet, ultimately, the purchase of the Bee building will not do much of anything for MJC. The suggestion to use some of the space for classrooms has been tossed due to the strict earthquake safety requirements for schools. And if YCCD were to put classrooms at the H Street location, the preparations and upkeep needed would put them over the allotted budget. But, it does seem to be a logical choice for administrative growth.
So what's the hold up?
At this point, YCCD is still configuring the annual costs of the Bee building. There would be maintenance and utility fees that must stay within the budget.
"If I can't identify a way for us to pay for those utility costs annually, without dipping into or taking away from the colleges, then we will not do it," said Darnell.
And that's an important stipulation for MJC.
Although the positives appear to outweigh any negatives in this proposition, the question of a conflict of interest arises. Would the Modesto Bee have to worry about being penalized by their YCCD landlords should they report something the district does not approve of? Being two major institutions of our community, any conflict between the two would be significant. Yet, neither of the businesses is very concerned with that.
"I don't foresee any problems. We have had a relationship of mutual respect with the YCCD for many years, and I can't see that situation changing," said Johnston. "The Modesto Bee will always have a responsibility to provide objective, unbiased information to our community, and that won't change with a new landlord."
YCCD has a similar attitude.
"They wouldn't sign a lease that says 'if we don't like what you're writing we'll raise your rent or evict you'," said Darnell. "They wouldn't sign that, and I would not ask them to."
Yosemite Community College District looks to be "the safest bet" of the many offers to buy the Modesto Bee building, according to Darnell. If a big business were to buy the building, they would potentially have a great deal of advertisement placed in the newspaper that could be pulled at their will. Since YCCD is not a large advertiser and has no known ulterior motives other than improving district dwelling, they would be a lesser threat to the Bee.
Whichever path is chosen, YCCD says they are "days or weeks" away from making their final decision.
"The Modesto Bee has been an institution in our community since 1933, and we will continue to serve our readers well into the future," said Johnston.
Should YCCD choose to not go through with the purchase, the Modesto Bee will press on.
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