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The Ministry of Education has officially given Corstorphine School permission to close, despite the removal of one of the contributors to its declining roll.
The school's board of trustees formally requested closure in October last year, because of a steadily declining roll.
Part of the blame for the declining roll was attributed to an association with Mongrel Mob families in the community.
Detective Inspector Steve McGregor, of Dunedin. said the presence of the gang premises in Middleton Rd had contributed to a climate of fear in the local community, and was a factor in the significantly reduced roll at Corstorphine School.
Dunedin police arrested 17 gang members earlier this week and seized the Middleton Rd gang headquarters.
However, Corstorphine School principal Marion Carter said the removal of the gang would make no difference to the school's roll.
Education Minister Anne Tolley agreed.
"I've listened to the board and have also reviewed population projections, which don't show any prospect for growth.
"After considering the feedback from consultation, I believe closing the school is the right decision."
Corstorphine School will officially close at the end of term 2, July 2.
Mrs Tolley said nearby South Dunedin schools had the capacity to take Corstorphine's present pupils.
Once the school was closed in July, the site and buildings would be disposed of in accordance with all statutory, regulatory and Government policy requirements, she said.