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A possible deal between Red Oak Community Schools and JRCR LLC on the district’s possible purchase of the former Inter-Tech Collision Center property at 604 S. Broadway in Red Oak has stalled.

The school district was interested in the property because of the additional space the facility on the land would provide for its transportation and maintenance departments and administrative offices, according to Superintendent Tom Messinger.

“It would allow us to have our transportation department, maintenance department and administrative offices all at one location,” he said.

The building could be used to store some of the district’s buses and maintenance equipment, Messinger said. It would also give the district a place to perform routine maintenance on its fleet of buses.

The facility previously housed Inter-Tech Collision Center but currently has tenants renting it, he said.

The district, represented by Red Oak Board of Education President Mark Johnson, offered JRCR $219,000 on May 29 contingent on the resolution of septic and drainage issues and on the sale and closing of Red Oak Middle School.

Messinger said the district has a party, Prairie Fire Development, that is interested in purchasing the middle school to convert it into a housing facility but is awaiting approval of tax credits. It looks like that deal will move forward, he said. The City of Red Oak has already rezoned the property to multi-family housing.

JRCR made a counteroffer to accept $250,000 under the same terms as the original offer. However, the proposal stipulated that the seller would not participate in any updates or costs. The counteroffer further stated that the seller would have the right to show the property and accept other offers.

The district then offered $222,000 with the original terms, and JRCR countered with an offer to accept $222,000 with the property remaining “as is.” The seller said the buyer would be allowed 30 days to conduct further inspections and decide whether or not to take the deal.

The Red Oak Board of Education was slated to consider and perhaps approve a deal during its meeting Monday but did not approve it, Messinger said.

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“What we’re doing is we have to reevaluate this,” he said. “We also want to make sure we’re looking out for the best interests of the taxpayers.”

The board will have to decide whether to reject the offer, accept it or investigate further and perhaps approach the seller about negotiating further.

The school district’s construction and remodeling project is proceeding on time, Messinger said. The remodeled high school should be ready to move into by Aug. 1, but the new gymnasium will not be ready by then, he said.

The addition to Inman Primary School has been completed.

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