Peary HS Sale - Windfall Profit for Berman Academy Potential

In the just released November 29, 2010 Montgomery County Council staff memorandum on County Executive Ike Leggett's proposal to sell 19.5 acres of public school land (former Peary High School site) to a private entity (Berman Academy) for $1.9 million the public learns that the sale could result in a "windfall profit" for the purchaser.
According to Montgomery County Council staff, here is how that would happen.

From Page 5 of the Memorandum:

The County would have 90 days to tender the price paid by the Academy, adjusted by the consumer price index, plus the lesser of the Academy's construction costs or the replacement costs of the Academy's improvements minus depreciation. Failure of the County to repurchase the Property would trigger a developer's right to remove the covenant regarding the use of the property.

From Page 7 of the Memorandum:

Under the Executive's recommendation, if the County does not repurchase the Property after the Property has been offered to a developer, the restriction to use the site as a private school would be removed. The result would be a windfall profit.