NJSBA Board Places Moratorium on New Facility

Considering the impact of recent state law affecting board member training and travel, as well as a downturn in the economy, the NJSBA Board of Directors on March 14 voted unanimously to place a moratorium on the planned construction of a new headquarters and conference center.

“It’s time to reevaluate where we’re going,” explained NJSBA President Kevin E. Ciak in presenting the Executive Committee’s proposal to the board. Recent political and economic developments bring into question the appropriateness of the facility’s design and the advisability of going forward with the project as planned, according to Ciak.

In May 2007, the Board of Directors had approved construction of a new headquarters/conference center for a cost of approximately $18 million, excluding land. The facility would be constructed on a site acquired in November 2006 for $1.6 million. Groundbreaking was anticipated this spring.

Financing of the building would rely heavily on growth in non-dues revenue, as well as on the sale of the four properties owned by NJSBA at the time. (To date, two of those buildings—the northern and central field offices—have been sold. The Trenton headquarters and the southern field office remain on the market.)

The board’s 2007 decision represented the culmination of a four-year process to assess the adequacy of Association facilities to meet member service needs.

External Forces Since then, however, the School District Accountability Act has had a dramatic impact on how, when and where school board members are trained. The law has resulted in a greater need for regional, county-based and Web-based training and less demand for statewide conferences, which would be the major function of the proposed NJSBA Conference Center.

“Going forward, we anticipate the need for more—not less—Web-based training,” states the Executive Committee report that accompanied its recommendation to the Board of Directors.

Impact of Economy “Unlike the situation in May 2007 when the building plans were approved, today it is clear that New Jersey and the nation are experiencing an economic downturn,” the report continues. “This business climate could affect the ability of NJSBA to sell the Trenton headquarters and the southern field office and, therefore, could require additional borrowing…”

Because of these economic and political factors, Executive Director Marie Bilik secured several analyses, including an independent audit of future Association revenue, the impact of debt encumbrances, and the cost of construction. Other analyses focused on the additional financing that would be needed if the Trenton headquarters and southern field office are not sold by the time the new facility is completed; the impact of the moratorium on construction costs should the board decide to proceed with the project at a future date; and the state’s current political and economic climate.

Next Steps Approval of the moratorium, however, does not mean that the Association has abandoned plans to relocate its headquarters.

“The factors that led to the decision to sell our current headquarters and relocate to a new facility still exist,” said Ciak. “They include the need for a structure that can support the technology necessary to expand Web-based training, the cost of maintaining an old building and lack of parking.”

In 2005, the ad hoc Facilities Committee, consisting of eight local school boards members, determined that the renovations necessary to keep the Trenton headquarters in operation would not be a cost-effective use of the Association’s funds. “That has not changed,” reads the Executive Committee’s report.

With the Board of Directors’ approval of the moratorium, the following actions will now take place:

• The Association president will form a committee to explore alternatives to construction of the previously planned facility


• NJSBA’s two remaining properties will remain on the market.


• All professional firms, whose services NJSBA has secured for construction of the new building, will be dismissed.


• The Association, which owns the rendering and plans for the proposed facility, will continue to secure necessary permits for its construction. Such action (a) will expedite construction should the Board of Directors end the moratorium and go forward with the existing plans, or (b) will add value to the property and make its sale more attractive as a “construction ready” site.