The Douglas County School Board is moving forward with a $29 million plan to consolidate district administrative operations into a new headquarters.

It’s part of an effort to reduce annual costs as the district faces ongoing budget pressures.

In June, the board voted 5-1 to authorize the purchase of Meridian One, a 140,000-square-foot office building in north Douglas County, for $6 million. Director Valerie Thompson cast the lone

dissenting vote, citing concerns about the project’s financial risks.

The building, at 9785 Maroon Circle, was last sold in 2014 for $12.8 million and has been under receivership since December 2023 after the previous property owners defaulted on loans. On July 20, a judge approved the sale of the building. 

It’s located just northeast of Interstate 25 and Lincoln Avenue, near the Meridian Golf Club course.

Court records show the transaction is scheduled to close in August.

District leaders said the consolidation effort is part of a broader strategy to reduce operating expenses as the district faces significant budget pressures.

Superintendent Erin Kane told board members in June that the district must identify between $15 million and $18 million in recurring annual savings by the 2027-28 school year. The district has already taken steps to reduce expenses, including opening three newly consolidated schools this fall.

“We are at a point where we need to, in order to cut costs, consider consolidating central administration in the same way that we have consolidated some of our schools,” Kane said during the June board meeting.

Currently, administrative staff is spread across nine nonschool locations throughout the district. Bringing those employees under one roof would improve efficiency, reduce ongoing facility expenses and create opportunities for additional revenue, district officials said. 

Staff survey results also showed majority support for the consolidation effort.

In June, Kane said the board could move forward with the purchase of Meridian One or renovate the district’s aging Wilcox Street headquarters in Castle Rock at an estimated cost of $23 million to $25 million.

District officials argued the larger Meridian One facility would provide additional benefits beyond a headquarters renovation, including an estimated annual revenue of $500,000 to $700,000 from existing tenants.

To finance the project, the district plans to use about $12 million from existing real estate transaction proceeds and property sales. Another $15 million is expected to come from future asset sales, including the eventual sale of the Wilcox property.

“If the board chose not to move forward with Meridian One, we will need to move forward with refurbishment of Wilcox, which is stated at a $23 million to $25 million investment,” Kane said. “The difference is we don’t have the sale of a property like Wilcox to help cover that.”

District officials said a phased move into Meridian One is expected to begin about 12 months after the purchase closes.