It has been 20 months since the Natomas Unified School District purchased 41 acres of farmland just north of Sacramento for $13.4 million, a record price for the area.

Just more than a year ago, Superintendent Steve Farrar admitted he had concerns about the purchase and launched an internal investigation.

Now, in response to that investigation, Natomas school officials say they believe they paid too much for the land and have hired a malpractice attorney to discuss remedies with the deal's participants. Those participants include the district's own legal counsel in the deal and the seller, a partnership headed by developer Angelo K. Tsakopoulos.

"We found enough evidence to raise concerns that parties involved may have been taking advantage of the school district," said Ron Dwyer-Voss, president of the Natomas school board. "Whether or not that happened is for the lawyers to work out; that's why we hired a malpractice attorney."

Calls for comment to Tsakopoulos' AKT Development were not returned.

A Bee investigation last year found that surrounding farmland in the unincorporated area was going for far less than the price the district paid and that appraisals apparently overvalued the land by millions of dollars.

Over the past year, the district has launched environmental reviews, saying it plans to build a small magnet high school on the site. But some parents and activists have wondered what became of the district's internal probe and what action Natomas Unified was taking to recoup district funds.

The first public glimmer came at a recent board meeting, after members of the audience confronted the school board.

"Money has been taken away from our kids – we demand answers," said parent Darryl White.

Dwyer-Voss told the crowd the investigation had led to "lawyers talking with lawyers." He said some details uncovered in the internal probe could not be revealed because doing so would jeopardize the district's legal strategy.

Still, he offered an assurance: "We are aggressively pursuing this matter on behalf of the kids and the taxpayers."

Patrick Waltz, the malpractice attorney brought in to negotiate with participants in the land deal, said the district is in a "pre-litigation" phase. He said he wants to avoid costly court action and negotiate a resolution.

"It appears the district was sold property that was not what it was represented to be," Waltz said.

The legal action is a marked turnaround for a district that in December 2006 hailed the purchase as a bargain.

The land was appraised at $602,000 an acre by the Sacramento firm of Ferguson & Associates. The district agreed to pay $325,000 an acre.

At the time, some land experts questioned the price. The 41 acres, in an unincorporated Sacramento County area called West Lakeside, has no roads, water or sewer service. The area is ecologically sensitive, presenting hurdles to obtaining development approvals.

A Bee investigation at the time revealed that comparable land in the area was selling for $50,000 to $100,000 per acre.

The deal included a sweetener for the seller: the promise of a multimillion-dollar tax write-off because, based on the appraiser's assessment, the district had paid "below fair market value." So far, Tsakopoulos has not asked for a letter that would allow the tax break, district officials said.

One of the more puzzling aspects of the land deal, Waltz said, is trying to sort through the role of Mark Skreden, a Sacramento real estate broker.

At the time the property was purchased in late 2006, Skreden is listed as the broker for the seller, West Lakeside LLC, the Tsakopoulos/Woodside partnership that owned the land. But Waltz said information uncovered in the internal investigation indicates Skreden started out representing the district.

"We're going to get that question answered," Waltz said. "It's part of a big problem that we see."

Skreden did not respond to a request for comment.

Waltz said there are gaps in the district's knowledge about the transaction. Frank Harding, who was head of facilities for Natomas and handled the transaction, no longer works for the district.

Call The Bee's Terri Hardy, (916) 321-1073.