Humboldt Grand Jury concludes Eureka City Schools Trustees “acted hastily and without sufficient due diligence”

The board of trustees for Eureka City Schools have 90-days to respond to a Humboldt Grand Jury report that said the board didn’t do “due diligence” while negotiating the sale of the former George C. Jacobs Junior High School. This centers on the decision to sell the “Jacobs property” to a company called AMG Communities-Jacobs, LLC. in December.

Trustees had been working on a deal to sell the property to the California highway patrol. But on December 14th, the trustees went into closed session, and within three hours had unanimously agreed to sell the Jacobs property for six million dollars and a property swap for a building on I street in eureka.

The grand jury’s report said the board of trustees may have technically followed the California government code regarding open meetings and decisions. But the grand jury said the board acted hastily and without due diligence.

There’s also concern that the company behind the purchase had only been an LLC. for 48 hours before the board approved the sale. The grand jury recommended the board make the details of the Jacobs property and negotiations public by October first.

The grand jury report does not have the power to stop the sale.

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