SALEM — The Salem-Keizer School Board on Tuesday gave the green light to district officials to pursue the sales of two rural schools and an administrative complex.

In late 2023, the district began reviewing its real estate inventory, assessing the ages of building improvements, ongoing operation and maintenance costs, current uses, and future opportunities. Two buildings — Fruitland and Lake Labish elementary schools — and the Paulus Administration Center were found to no longer benefit the district, superintendent Andrea Castañeda told the board last month.

“It’s kind of sad,” school board director Karina Guzmán Ortiz said. “There’s an emotional piece, knowing these buildings were once bustling with educators and kids.”

Money raised from the sales will go into the special capital projects fund.

During the 2024-25 school year, the district transferred $15.5 million from the general fund to the special capital projects fund to facilitate the purchase of the former Wells Fargo data center building in Salem, according to district financial reports. The special capital projects fund had a balance of $22.39 million at the end of the 2024-25 school year.

The district completed its purchase of the Wells Fargo building, at 355 Hawthorne Ave. S.E., in November 2025.

Proceeds from the potential property sales won’t go toward the renovation of the former Wells Fargo building, Paul Odenthal, the district’s chief operations officer, told the board last month. Instead, the district hopes to pass a bond to complete that work, he said. The district plans to use the building for its high school alternative education programs.

Fruitland Elementary School was built in 1889. It was part of the consolidation of another school district into Salem-Keizer in 1964 and last operated as a school in 2010-11, when it served 69 students in kindergarten through second grade. It has since been used for pre-kindergarten programs, and most recently as part of the district’s Behavioral Intervention Center. The latter program recently moved into a new facility in West Salem.

The ex-elementary school building is about 8,343 square feet and sits on about 1.29 acres at 6425 Fruitland Road N.E. in Salem. The property is currently valued at $1.02 million, according to the Marion County Assessor’s Office.

Lake Labish Elementary School was built over a century ago and last operated as a school in 2010-11, when it served 86 students in kindergarten through fifth grade. It has been used for various district programs since, most recently as part of the district’s Behavioral Intervention Center.

The building is about 14,696 square feet and sits on a 4.78-acre property at 7495 Portland Road N.E. in Salem. It’s currently valued at $1.73 million, according to the Marion County Assessor’s Office.

The Paulus Administration Complex served as the school district’s headquarters until the organization moved to its current administrative office, at 2450 Lancaster Drive N.E., in 2002.

The complex has since housed various support services and staff, including reprographics. The data center, the only department remaining at the complex, will move to the Wells Fargo building, Odenthal said.

The 2.04-acre property has buildings that were constructed in 1930, 1950 and 1954. The complex is located at 1309 Ferry St. S.E., 1310 Ferry St. S.E. and 1340 State St. S.E. in Salem. In total, the complex is valued at about $7 million, Odenthal said.

Editor’s note: This article first appeared in the Statesman Journal and then was distributed on the USA TODAY Network via Reuters Connect.

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