PHOENIX (AZFamily) — Arizona lawmakers are accusing a West Valley superintendent of profiting from a real estate deal.
It all unfolded during a Joint Legislative Audit Committee hearing on Monday morning. The JLAC oversees all audit functions of the Legislature and state agencies.
In January, the Tolleson Union High School District entered into a leaseback deal with the Isaac Elementary School District, where Isaac would sell Isaac Middle School to TUHSD for $25 million and Tolleson would then lease back the building at 6% interest.
“The first conversation I had came from a text message from, yes, the prior superintendent, Mr. Mario Ventura, who texted me and asked if I could take a look at his finances,” said TUHSD Superintendent Jeremy Calles.
Calles works two jobs, as superintendent and also as a consultant. He said that when the Isaac Elementary School District first contacted him it was in his role as a consultant. But when his own district got involved, Calles’ involvement changed. He says he never billed a dime and the Isaac Elementary School District has never been a client of his.
“This is not a new concept; the only thing novel on this idea is that both sides of the transaction, you have a school district. Everything else about this transaction, both sides of the transaction are not unseen,” said Calles.
He said the agreement included no prepayment penalty and no lock in requirement for Isaac Elementary School District and helped the district out during its financial crisis. The benefit for Tolleson Union students, Calles said, was by generating up to $7 million more than the district had before.
But there was some pushback from committee members who questioned how the move would help the district, which has a “B” letter grade from the State Board of Education but less than 30% of students are proficient in math and ELA.
“Here, you have not been able to demonstrate the $25 million financial transaction benefitting Tolleson Union students directly, given that you have no square footage, you’re not providing any learning services. It’s not even in your district so this is far beyond novel. I think you’ve made a mockery of our state law,” said Rep. Matt Gress, a Republican from central Phoenix.
There have also been other controversies surrounding the TUHSD, including a sexual harassment claim involving top district officials and a recent deal to build affordable housing.
Towards the end of the hearing, multiple city of Tolleson officials, including the city manager, voiced concerns they have with Calles.
Calles has previously told Arizona’s Family that the motives behind the complaints against him have to do with local politics and perceived power.
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