Murphy – A judge approved the sale of the former campus of The Learning Center, a once-promising charter school that has been closed since June 2022, is under receivership and faces a lawsuit filed by former employees.
William Coward, resident Superior Court judge for Cherokee County, issued an order approving the sale of the 2.3 acre campus to RP8 LLC for $539,000 for the real estate and $15,000 for personal property on the site.
RP8 LLC is a limited liability corporation with a Vale address. Rebecca Ritz is listed as a company member, while Charles McHan is the registered agent.
Ritz said the purchase is still in progress. She was not ready to reveal plans for the property.
The Cherokee County Tax Assessor’s Office appraised the property’s value at just shy of $1.16 million in 2019, when the school was still open. The property was since appraised at $490,000, according to court documents.
William E. Cannon Jr. was named receiver for the former school.
A lawsuit was filed against The Learning Center/Ogden School Inc. Plaintiffs are all former employees: Carrie Dyer, Cheryl Catuto, Sean Bain, Katie Beaver, Cheryl Kirby, Shelley Farmer, Louise Smith, Carol Jean Smith, Cynthia Harmon, Dana Bollard, David T. Grant, Robyn Woods, Maureen Monica, Jessie Adams, Brittany Karageanes, Shirly Kephart, Judy Coleman and Fenris Ulfhamr.
The plaintiffs are represented by Murphy attorney Zeyland McKinney Jr. of the McKinney Law Firm P.A.
The property has been for sale since April, during which time there have been only two offers, according to the records. RP8 LLC’s offer was the highest offer.
The once-vibrant school campus is now overgrown with weeds. It still contains furnishings, equipment and supplies. Murphy police have had to make regular patrols there to keep trespassers away and secure buildings that had been broken into.
There are about 30 creditors owed a total of $864,759.
Although proceeds from the sale won’t satisfy liens against the property, Coward agreed with the receiver’s assessment that, put simply, it was the most they would be able to get.
The receiver identified equipment and furniture removed from The Learning Center campus by Cherokee County Schools that it claims belongs to the school district. Value on that property was put at $246,055.
The complaint was filed in July 2022 against the school by former employees.
In May 2022, school executive Stephanie Hopper notified them that the charter was closing, and that there was no money to pay employees their remaining wages, bonuses and retirement matches. Individual amounts owed range from $2,000-$5,000.
Some of the plaintiffs also left personal belongings at the school during the rush to close the campus. They want it back or to be compensated for their losses.
The school employed about 35 full-time and four part-time employees before it closed. There were 213 children enrolled at the charter during the 2021-22 school year.
The Learning Center had been a staple of local education since opening as a private school in 1983. Local educator Mary Jo Dyre founded the The Learning Center as a private school before it expanded in becoming a charter 14 years later, serving students in kindergarten through eighth grades.
Grades 9-10 were added over the last three years, with another 100 students expected once the high school was completed. The school had become well known for its academics, like the E-STEAM program, as well as creative efforts, like the annual Maker Faire.
It closed in June 2022 due to “financial irregularities.” In a release that shocked the community, the board of directors announced that it had voted to relinquish its charter and begin the process of closing the school.
“Earlier this month, the board learned of significant irregularities within the school’s financial operations,” according to the release. “Working with the school’s leadership, the school’s outside financial services provider and legal counsel, the board began an investigation. The board also notified its regulators immediately upon receiving this information.
“As the school’s investigation continues, it has become apparent that the financial irregularities threaten the financial well-being of the school and impact The Learning Center’s ability to operate within the boundaries of its charter. These irregularities were concealed from the board of directors and have resulted in insurmountable financial challenges.”
The Learning Center expanded into high school grades, renovating the basement of the Mountain Vista Inn to make room for the new students. In addition, plans were being formed to build a new campus at 945 Connahetta St. to replace the existing network of buildings and trailers.
“This decision impacts a community of people whose needs have been met by The Learning Center since 1997,” the board of directors said in the release. “We did not make this decision lightly, and we recognize the uncertainty this creates for our families and staff members. We will continue to share information with our community as the investigation moves forward, and we will do whatever we can to assist families in next steps.”
Due to The Learning Center being a recipient of taxpayer funds, Cherokee County sent a letter to the Murphy Police Department requesting a criminal investigation into the charter school’s finances. In the past, the State Bureau of Investigation has often come in to assist local agencies in situations like this.
“This is a tragedy for the community,” attorney Lisa Gordon Stella told the Cherokee Scout. She was working with the board of directors in their investigation.