APS – Update on New North Atlanta High School Cost – BOE Member Meister Responds


Yesterday, BOE member Nancy Meister sent out a letter in response to the controversy regarding the cost of the new North Atlanta High School that was reported by Richard Belcher at WSBTV2.

Ms. Meister point to a series of facts that are relevant to place the total costs incurred in context. The following is a summary of the key points she made (all direct quotes from the letter):

  1. Capacity in the northern cluster has skyrocketed … This facility can accommodate 2400 students, a number that is projected in the coming years. This is 750 students more than the reported 1650.
  2. … many sites from limited inventory were considered in the process. Most were not suitable … [the IBM site cost] roughly $977,093 per acre. Other sites within the district … averaged $1,365.2M per acre.
  3. At 507,093 sq. ft., the new NAHS is roughly 30% larger than the next largest APS high school, Mays HS at 339,758 sq. ft.
  4. [A] look at project expenditures across the district at constant dollar (base year 2013), the cost per square foot at NAHS is $180.23, BEST Academy is $212.47, Carver HS is $185.42, Therrell HS is $181.78 and CS King Academy is $181.12.
  5. While the total cost of this project is more than others, it is the result of the overall square footage being significantly higher.
  6. [the project is subject to] the Davis Bacon Act which requires contractors to pay “prevailing wages”, as determined by the [Federal] Secretary of Labor. This … represents roughly a 16% increase in Atlanta. The labor costs on this project are simply higher.

There is more regarding the recent increases in cost and the cost of the athletic fields.  The entire letter is printed below.

Ms. Meister raises some good points and I have started an analysis of the numbers – specifically how the project cost compared to other non-APS high schools at the time the decision was made to proceed in April 2012. As I get more information from APS officials, I will report my findings.

Letter from Ms. Meister in its Entirety

District 4 Constituents

The beginning of 2013-2014 school year is just three weeks away and the opening of the new North Atlanta High School makes this a very exciting and busy time for our community. As a result of a recent news clip, I have received many phone calls about the reported cost of this project. While it is easy to compare this campus to others in the county and state, it is also very important to understand the constraints, variables and process that took place along the way.

Capacity in the northern cluster has skyrocketed over the last ten years and the retention rate in grades K-12 has grown significantly. This facility can accommodate 2400 students, a number that is projected in the coming years. This is 750 students more than the reported 1650.

When looking for a location, many sites from limited inventory were considered in the process. Most were not suitable when due diligence was performed. The 56.6 acre IBM site was deemed suitable and was purchased for $55.3M. An appraisal performed in 2011 estimated the market value, as improved, at $118.0M. The land value was appraised at $51.5M and the existing improvements at $66.5M. This is roughly $977,093 per acre. Other sites within the district, had they been suitable, averaged $1,365.2M per acre.

At 507,093 sq. ft., the new NAHS is roughly 30% larger than the next largest APS high school, Mays HS at 339,758 sq. ft. All of the district high schools were either renovated or built on existing APS property, therefore there were no land acquisition fees involved. If you remove the cost of the land for NAHS and look at project expenditures across the district at constant dollar (base year 2013), the cost per square foot at NAHS is $180.23, BEST Academy is $212.47, Carver HS is $185.42, Therrell HS is $181.78 and CS King Academy is $181.12. It was previously reported in 2010 that our neighboring county DeKalb, spent $222.00 per sq. ft. for Tucker HS in 2010, $176.83 for Arabia Mt HS in 2009. While the total cost of this project is more than others, it is the result of the overall square footage being significantly higher.

It is also important to understand that because this project is being funded with federal dollars (COP bonds), the project falls under the Davis Bacon Act which requires contractors to pay “prevailing wages”, as determined by the Secretary of Labor. This is based by region and represents roughly a 16% increase in Atlanta. The labor costs on this project are simply higher.

It was reported that APS is spending $8.5M for athletic fields and there is no stadium and other schools have spent $4.5M to $5.9M just for a stadium. It is important to know that at NAHS, APS is spending $8.7 for a number of athletic facilities including a football field and track with seating for 525, three tennis courts with bleacher seating, softball, baseball field and a practice field. Lighting, turf where designated, irrigation and restrooms are included in this figure. Currently, it is Board policy that all high schools utilizes our two stadiums, Grady and Lakewood for football and track. No APS high school currently has a designated stadium.

Lastly, it was reported that there was an additional $13.0M request that came before the Board recently. The request was made as a result of unforeseen issues that are typical in construction projects. Unsuitable soil, substantial amount of buried trash under the parking lots that had to be removed and replaced with crushed rock, floor leveling throughout the building after carpeting was removed and prior to tile being installed, temporary facilities to accommodate Fine Arts, Athletics and JROTC until Dec 2013 and the Department of Labor challenged the prevailing wage rate for demolition and site work as well as asbestos removal. While the Board did approve a portion of this request it did not approve roughly $1.0M in APS design changes.

This is a very exciting time for our community and for APS. The opening of this state of the art facility that is unique to the city, state and probably nation, will be a landmark for the Atlanta Public School system. It is my hope that this information will inform the public on the project and associated costs.

Nancy Meister

ABE District 4

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