METHUEN — After leasing it for more than two decades the City Council has approved the sale of a property on Oakland Avenue to the Islamic Academy for Peace.
The deal could net the city as much as $4.7 million over the next 25 years, factoring in interest, but will need another vote for the purchase to be formally approved.
Under the current agreement the academy, which has around 200 students between pre-K and Grade 8, pays the city $5,000 annually to lease the 125 Oakland Avenue property.
In addition to the economic benefit of the deal, councilors also praised the school, which has become a significant part of the community since its founding in 1999.
Councilor Ron Marsan said the sale price of $2.68 million, the building’s assessed value, might not be 100% of the market value, but the academy had shown its dedication to the city.
“They are committed to us, so we have to be committed to them,” Marsan said.
“If I was the owner I would give them a perfect tenant discount, but I can’t,” Councilor Mike Simard said.
Under their stewardship the school has invested $1.38 million in the property.
Academy alumni and masters student at UMass Lowell, Emir Kaplan said the school has produced graduates who are both heavily invested in their community and highly successful academically.
“Our most valuable contribution to this city is not a building or the program it holds but its people,” he said. “Our school’s purpose has never been to profit.”
According to council documents, the school will pay the city $2.68 million in the form of a $200,000 advance, with the remainder paid out over the next 25 years at 6% interest.
Mayor D.J. Beauregard said the sale was a “no brainer” due to the economic impact to the city and benefit to the academy.
Academy board member Rashid Khan said it would have been difficult though not impossible to finance the sale through a bank rather than the city. He said a number of factors including “the political climate in the federal government” had pushed the school to make the purchase now.
The resolution authorizing the sale was approved 8-1 with Councilor Patricia Valley voting in opposition. Valley said she was not opposed to the sale but had not been provided enough documents to show that the city followed the proper procedure for the sale of government buildings. A bid by Valley to table the sale failed.
The property was declared surplus and put up for public bidding by the city in 1999.
City Solicitor Paul O’Neill said he could provide the documents after the meeting but assured Valley the legal process was followed.
Councilor Jana Zanni Pesce was enthusiastic about the sale and said she had visited the academy and seen its growth over the years.
“They have done such a wonderful job, I am a little taken back that there would be any hesitation,” Pesce said.
Emir highlighted success by his fellow graduates including a friend who had developed software used on the international space station through an internship with NASA.
“But what I believe matters most is that they return,” he said “They return to mentor, they return to serve and give back to the community that raised them.”