In late September Gary Community School Corporation (GCSC) Advisory Board President Robert L. Buggs, Sr. heard Gary Councilwoman Tai Adkins discussing concerns about the sale of Dunbar Pulaski School to Amazing American Foods, Inc. on the WLTH radio station. This prompted Buggs to begin his own investigation into the matter.
It must be noted that SEA 567 and HB 1315 give GCSC Emergency Manager, Dr. Paige McNulty, sole authority to sell school property after consulting the Mayor of the city of Gary. She does not have to advise the Advisory Board, nor did she.
Councilperson Adkins held a forum on September 12, in the Fourth District. Adkins was getting input from residents who live near the school, she said she would inform everyone when the zoning request comes before the Gary City Council. Ty Adkins is the Vice President of the City Council representing the 4th District where the schools are located.
A corporate Warranty Deed signed by Dr. McNulty was executed on August 22, 2022, giving full possession of the Dunbar Pulaski School located at 1867 Georgia St. to Amazing American Foods, Inc.
The caveat is that Williams Elementary School, built in 2005, has the same Legal Parcel #45-08-407-001-000-004 as Dunbar Pulaski School. Williams Elementary School was never assigned a legal parcel number when it was built in 2005.
This was a possible monumental oversight.
Buggs initiated an immediate investigation by obtaining relative documents from the Lake County Auditor’s Office, the Drafting Department, the Recorder’s Office, the Plat Department, and the Assessor’s Office. Buggs’ inquiry with all of the above offices verified that, in fact, Amazing American Foods, Inc., purchased approximately 31.2 acres with the former Dunbar Pulaski (closed) and Williams Elementary schools allegedly for $35,000.
While attending a GCSC Budget Adoption Meeting, Buggs noted there was no mention of a lease amount for the Williams Elementary School to Amazing American Foods, Inc. Buggs addressed the committee with this inquiry, “I noticed that you did not include leasing Daniel Hale Williams School in your budget.” There was no response from the committee and the meeting was adjourned.
According to Buggs, this is a concern expressed by members of the Gary community who have attended school meetings. Their questions are not answered at any school meetings. Citizens are referred to the GCSC website for answers.
Since the Williams Elementary School had been sold in the same transaction as the Dunbar Pulaski, the school budget being adopted should have included a future leasing arrangement to Amazing American Foods, Inc. This was based on the fact the two schools shared the same parcel number.
After the meeting, a spokesperson for the GCSC said the problem had been rectified since Bugg’s last visit to the Assessor’s office.
To verify, Buggs returned to the Assessor’s Office on September 23, 2022. He was told that no one from GCSC or Amazing American Foods, Inc. had contacted the Assessor’s Office to make any corrections. Buggs asked the Assessor’s employee directly, “Is the Dunbar Pulaski old school and the new Williams Elementary owned by Amazing American Foods, Inc., and the reply was YES.”
The Warranty Deed had some exempt legal descriptions listed, so Buggs consulted the Drafting Department, which advised Buggs that the exemptions were a NIPSCO facility and some roadways.
Williams Elementary School was not excluded and was, in fact, included in the sale under the key number shared by both schools. Had Dr. McNulty consulted with the Advisory Board, she would have been advised that when Williams School was built in 2005, it should have been assigned a separate key number identifying its legal description.
A copy of the Corporate Warranty Deed and transfer document from the Assessor’s Office dated August 22, 2022 are included with this story.
Further investigation by Buggs revealed when GCSC listed 33 schools for sale in 2017, Dunbar-Pulaski was listed for $11,318,900. It was later reduced to $5,648,300, and approximately two years later to $156,079. It subsequently sold for approximately $35,000 on August 22, 2022.
By comparison, Brunswick Elementary School was sold to the Gary Housing Authority for $160,000 and Jefferson Elementary was sold to Indiana American Water for $150,000, both four times more than the Dunbar-Pulaski sale.
It should also be noted that on January 8, 2013, the Gary Community School Corporation entered into one Lease Agreement for four different schools – Daniel Hale Williams School, Glen Park Academy For Excellence In Learning, Banneker/Marquette Achievement School and Frankie McCullough Academy.
One day after the Dunbar-Pulaski property was sold a Second Amendment to Lease was filed on August 23, 2022. The agreement was between the Gary Community School Building Corporation, which was listed as the LESSOR, and the Gary Community School Corporation, listed as the LESSEE.
They were requesting that the Williams Elementary School, 1320 E. 19th Avenue, Gary, Indiana containing 16 acres or 696,960 square feet be released from the lease premises, however, the legal description parcel number is the same one shared with Dunbar-Pulaski.
In the Second Amendment to the Lease, Dr. Paige McNulty, the Gary Community School Corporation Emergency Manager, signed and notarized the document as the Lessor and Lessee.
In one signature block, she represented herself as “ Lessor Representative of the Board of Directors for the Gary Community School Building Corporation.” In the other one, she represents herself as the “Emergency Manager of the Gary Community School Corporation.” Buggs found this to be a conflict of interest at face value or an illegal act in the worst-case scenario.
The Corporate Warranty Deed is signed by “Paige McNulty Emergency Manager.” The question is how can GCSC, who is the lessee according to the Amended Lease dated August 23, 2022, sell the property they are leasing?
In response to Buggs’ complaints about Dr. Paige McNulty and the school transactions, the Chairman of the Distressed Unit Appeals Board Justin McAdams said, “Dr. McNulty is doing a great job.”
As of October 21, 2022, no documents had been filed with the Assessor’s office to address the legal parcel number discrepancy leading to the sale of two schools instead of one.
Robert L. Buggs Sr. is the Legal Redress Investigator for the Gary Branch NAACP.
