Armenians Take Over as Buyers of Surplus School

The Los Angeles school district’s first attempt to sell a surplus school was saved from collapse Friday when a new buyer for a San Fernando Valley campus emerged hours before a payment deadline.

The Armenian General Benevolent Union agreed to purchase the empty Oakdale Avenue Elementary School in Canoga Park in place of a financially troubled company that had contracted in November to buy the school for $2.6 million.

Officials of The Farm Inc., a Lake Elsinore-based developer of retirement communities, wanted to turn the 25-year-old campus into a housing project. The firm was forced to scrap its plans, however, after it filed for protection under Chapter 11 of the federal bankruptcy code in April.

The Armenian group will use the 6.3-acre, 20-classroom site as a private school, according to Berj Boyajian, president of the organization’s Los Angeles chapter.

Oakdale School is one of 19 Valley campuses that have been closed by the Los Angeles Unified School District because of low enrollment. It is the first city school to be sold, although four schools in the West Valley have been leased to private-school operators since 1983.

Group Holds School Lease

The Benevolent Union holds one of those leases--for the 22-classroom Haynes Street Elementary School in Canoga Park. Boyajian said his group will seek to terminate that $4,150-per-month rental agreement when its 250 students move to the permanent site at Oakdale School at the end of the year.

Robert Niccum, chief realty agent for the Los Angeles school system, said the Armenian group made a $100,000 deposit Friday afternoon, about four hours before the Oakdale sale contract would have expired.

The sale price will remain the same, he said.

“We’re pleased. We were a little unsure if the $100,000 would be coming to the district,” Niccum said. “It’s a lot of trouble for a school district to sell a school, believe me. Having gone through it once, we weren’t anxious to do it again with Oakdale.”

He said all income from the sale of the school, at 6844 Oakdale Ave., will be used to relieve crowding at other schools.

The Farm had paid $50,000 of a required $150,000 down payment to the school system before encountering financial difficulties with a project in Lake Elsinore and filing its petition for reorganization in bankruptcy court. Company officials could not be reached for comment Friday.

Already Have $2 Million

Boyajian said his group reimbursed The Farm for its share of the deposit and paid the company another $30,000 to cover the company’s costs in bidding last year for the Oakdale site. He said he is confident that the Benevolent Union can come up with the $2.45 million balance in time for the school district’s Nov. 20 deadline.

“We have $2 million already,” he said. “We’re shooting to raise another $1 million through fund-raisers and benefactors. We expect to spend at least $200,000 refurbishing it so it doesn’t look like a dump site. Empty schools like that one attract vandals.”

The Armenian school, which has been in operation for 12 years, offers classes in English and Armenian from preschool through 12th grade.

The Saddle Brook, N.J.-based Benevolent Union was formed in 1906 to promote Armenian culture. It has about 30,000 members worldwide, group leaders said.