Court grants stay in legal fight over whether IPS can sell buildings for more than $1

Update: Marion Superior Court Judge Heather Welch issued further clarification on Nov. 27th, saying that IPS must halt the sale of Francis Bellamy School 102 while litigation is pending.

The state has won a stay in the ongoing legal battle over whether the Indianapolis Public Schools district should be exempt from Indiana's "dollar law."  

Marion County Superior Court Judge Heather Welch Friday approved the stay requested by Attorney General Todd Rokita’s office after declaring earlier this week that IPS is exempt from having to sell closed school buildings to charter schools for $1.

The stay’s approval came less than 24 hours after the IPS school board of commissioners approved a resolution to sell the Francis Bellamy School 102, which closed at the end of the last school year, to a local nonprofit community organization for far more than $1.

On Monday Welch clarifyied that IPS cannot proceed with the sale of Francis Bellamy School 102 while litigation is pending. Welch also said that IPS may not sell any other buildings that could be impacted by the $1 law until the appeal process is complete.

The amended stay order did also specify that the district can continue with the leases already approved for schools Floro Torrence 83 and George Buck 94 with the Indiana School for the Blind and Visually Impaired. That agreement was approved in May.

Read more about the IPS case:Rokita files for stay in recent decision that exempts IPS from $1 charter law

What exactly will happen now with the sale of the building was not immediately clear Friday afternoon, the IPS Board of School Commissioners said in an emailed statement. The board is seeking clarity on what this means for the future of the building purchase.

“Good stewardship of public funds remains a top priority for Indianapolis Public Schools, and we will continue to advocate for our facilities to be repurposed in ways to meet the needs of our community, as is the case for our agreement with VOICES Corp, and be fiscally responsible with the funding that has been entrusted to us,” the statement said.

IPS filed a declaratory judgment with the Marion Superior Court in late August, to confirm whether a new exemption to the law passed earlier this year applies to the district.

IPS asserts that it qualifies for the exemption because it shares some of its 2018 operating referendum dollars with innovation network charter school partners.

Lawyers representing the state argued in part that the exemption only applies to payments charter schools received after the amendment passed. If so, it would not apply to IPS’s 2018 referendum funds, the state argued according to court documents.

Contact IndyStar reporter Caroline Beck at 317-618-5807 or CBeck@gannett.com. Follow her on Twitter: @CarolineB_Indy.

Caroline’s reporting is made possible by Report for America and Glick Philanthropies. As part of its work in Marion County, Glick Philanthropies partners with organizations focused on closing access and achievement gaps in education. 

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