The Central School property is being sold to RJS Real Estate Group, a subsidiary of Superior-based Reuben Johnson & Son.
The company paid $650,000 for the property at 1015 Belknap St., and declined to comment on plans for it.
Plans will be shared as they become finalized, Mike Murray, vice president of Reuben Johnson & Son, said in an interview Tuesday.
"It's a parcel we all drive by every day, so we certainly will be putting our best foot forward in its development," he said in a written statement.
The company approached Superior School District after Oliver Companies, the first bidder, failed to gain tax credits to help fund its project. Oliver Companies planned to develop student, affordable and market rate housing on the site, along with a child care center, workout facility and Internet cafe.
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RJS Real Estate Group's offer was all the district had, said Dave Tunell, School Board President, who works for Reuben Johnson & Son.
He wasn't aware of the company's offer until it arrived at the district office, he said.
Tunell said he abstained from voting during the board's voice vote at a Monday meeting, but later added that he should have made a note of that during the meeting because of the potential for the appearance of a conflict of interest.
No one from the public attended Monday night's special meeting.
The sale of the property wasn't open to bidders because the price has remained the same, and it doesn't legally have to be, said Ken Knudson, attorney for the district. In his experience working with the district, "anybody that's interested in the property in the market knows about it."
It cost the district $600,000 to tear down the school and restore the site, and the district wants to recoup that cost, Knudson said.
"This property has been for sale for a long time, and it has been noticed for a long time," he said.
Board members seemed pleased to approve the sale.
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"I think it's a good thing to sell the property and get it back on the tax roll," said Bill Rehnstrand, board member. "RJS, working with the city, is planning to make good use of the property."
But, RJS is not working with the city or asking for help, said Port and Planning Director Jason Serck.
The sale is subject to a mortgage with a promissory note of $450,000, to be paid in two installments, with a final payment June 1 of 2008.
Reuben Johnson & Son's subsidiaries include Fraser Shipyards, RJS Construction Group, Johnson Materials Co. and Northern Engineering.
Jana Hollingsworth covers education. Call (715) 394-4421, ext. 137.
