Stillwater school district sued over closing elementary schools

A parents' group sued the Stillwater school district Wednesday, alleging that the planned closings of three elementary schools are illegal and accusing two district officials of financial conflicts of interest.

The suit by 834 Voice, filed in Washington County District Court, also alleges violations of Minnesota's open meetings, bond and election laws.

Opponents of a March 3 school board vote to close the schools presented "unrebutted evidence" beforehand that closings would diminish property values and cause "substantial hardships" to students in those schools, the suit said.

The suit is the third legal action filed against the school district since that vote and comes as turmoil persists in a district now struggling to implement Superintendent Denise Pontrelli's "Building Opportunities to Learn and Discover" plan, known as BOLD for short.

"Right now we expect this to be difficult for everybody," 834 Voice attorney Fritz Knaak said of Wednesday's suit.

In May, an 18 percent turnout of voters approved a $97.5 million bond issue for school construction and improvements in the 8,300-student district, including a new elementary school in Woodbury. Subsequently, in December, Pontrelli announced that elementary schools in Marine on St. Croix, Stillwater and rural Hugo would close.

Wednesday's suit said the district misrepresented the bond issue by saying money would be spent on improvements at the Marine, Withrow and Oak Park schools, now scheduled to close in 2017.

Such actions violate state laws that govern bonds and elections, the suit said.

The suit also alleges violations of Minnesota's open meetings law, saying Pontrelli and some members of the board met privately several times to share information, including board positions, "with the express purpose of avoiding doing so at a scheduled public meeting."

The suit also alleged conflicts of interest involving board member Kathy Buchholz and district finance director Kristen Hoheisel.

The architectural firm where Buchholz' husband, Brian, serves as principal and vice president received a $4.97 million contract from bond proceeds, the suit said. Kathy Buchholz didn't "adequately disclose" that she would benefit financially from the contract with the firm, known as BWBR, the suit alleged.

Hoheisel steered a district contract to her husband, Michael's, financial services company, R.W. Baird, and "benefited personally" from the sale of bonds, the suit alleged, and directly participated in her husband's efforts to "induce the district to issue capital improvement bonds."

The March vote to close schools was 5-2, with George Hoeppner, Kathy Buchholz, Paula O'Loughlin, Amy Burback and Tom Lehmann in favor. Mike Ptacek and Shelley Pearson were opposed.