As you may recall (this from her story):
"The district closed Queen Anne High in 1981, and leased it to a developer. The lease let the developer turn the school into apartments, and then condos.
State law says the district should have gotten the school appraised, and sold it for at least 90 percent of its value. The district realized the Queen Anne contract broke that law three years ago. District lawyers said it wasn’t worth it to try to get out of the deal. So they’re stuck with the terms: 12% of each sale.
Even at prices from three years ago, the District’s take would have been less than the assessed value of the land alone."
So the news that Phyllis was reporting was that all the condos did not sell (including the $1M penthouse) and that the remainder were going up for auction. They were expected to sell (for example, the penthouse was starting at $650,000) for what are great prices.
The upshot is the district gets EVEN less out of their completely botched deal.
It has never been clearly explained how this happened.
The person who negotiated this deal still works at the district and does property management. Without a clear explanation of how this all got away from the district, it is hard to imagine how this person still has a job.
And, if you ever wonder why Charlie and I have our doubts about the running of this district, this is a poster story for why.