State Board’s Help Sought in School Fees Dispute

A state board is being asked to help settle a dispute between two school districts in the Santa Clarita Valley and a housing developer who has refused to pay several hundred thousand dollars in school construction fees.

After a meeting Tuesday with the attorney for the developer, G. H. Palmer Associates, officials of the Saugus and William S. Hart school districts said they will ask the State Allocation Board for a ruling on conflicting interpretations of a new state law requiring developers to help finance school construction.

The seven-member board, composed of state officials including the superintendent of public instruction, two senators and two assemblymen, allocates funds for school construction.

Payment Halted

The conflict arose earlier this month when G. H. Palmer Associates stopped payment on a $190,000 check to the Saugus school district and a $233,000 check to the Hart district. The payments were made in adherence with the new law setting the fees for developers of both residential and commercial projects.

David Cunningham III, the developer’s attorney, said the school districts are not entitled to the money because the state law exempts projects if construction began on or before Sept. 1, 1986. The Palmer company qualifies for the exemption because it had obtained approval for tract maps of its proposed 320-unit apartment project in Saugus before that date, he said.

School officials contend, however, that construction did not begin because no building permits had been obtained before Sept. 1.

The school districts are asking the State Allocation Board to define what constitutes construction under the law.

“In all fairness to them, it’s an honest question,” said James Bown, director of support services at the Hart school district, referring to the developer. “Unfortunately, the law is not clear.”

Cunningham and school officials agree that an interpretation of the law, which took effect Jan. 1, would be helpful statewide, Saugus Supt. Charles Helmers said.

“I’m sure there are other districts and developers in the state that are in the same boat,” Helmers said.

But Cunningham said his client will not be bound by the opinion and that the developer has not discounted the possibility of going to court.

Cunningham said he agreed to file an application for a fee exemption with the school districts by Monday.

The developer has paid some of the school construction fees under protest since stopping payment on the two checks. G. H. Palmer Associates on Friday delivered certified checks for $23,000 and $28,000 to the school districts after receiving five of the 41 building permits required for the 41-building apartment complex.