04-24-1985 Council Agenda - Laserfiche WebLink

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1.3 Lease Because of the inability to find a buyer or because of the anticipated later need for a building, several districts have leased surplus space. In some instances the entire facility has been leased and in others a combination of leasing and expanded use by the district has been the chosen option. Leasing fees generally range from $6 —$12 per square foot. Issues that must be considered when leasing include the tax status of the property, the mission of the schools, and the procedures for and probabilities of potential clients securing zoning variances or changes. Districts often choose to lease to public or private non — profit organizations in order to retain a tax — exempt status for the entire facility. However, since schools are usually located in residential areas, school building use is often restricted to educational purposes only. Special use permits may have to be obtained in order to lease to non — educational organizations. If zoning allows non — educational uses, then occupancy building code requirements may be the only necessity. If the school is located in a business /commercial zone, the deci- sion to lease to businesses will depend on the school district philosophy and community support. Babbitt, Minnesota has made effective use of the leasing concept. When a buyer could not be found for the closed Bryant Elementary, a non — profit association was formed for the purpose of leasing and managing the facility. The Associa- tion has assumed leadership in developing projects to stimulate the community's economy. Bryant Center's success has been attributed to (1) thorough planning by the school district, (2) the ability to pass special legislation which enabled the Center's development, (3) the leasing of large portions of space to the city for a police station and city library and to Reserve Mining for a com- munity center, and (4) the efforts of Association personnel. Other Bryant Center tenants include a food shelf, barber shop, tax business, senior citizens center, fabric shop, used clothing shop, restaurant, newspaper office, beauty shop, and in the near future, a department store (Appendix B). 1.4 Expanded Use Surplus space has enabled school districts to expand programs by using those facilities for alternative schools, community education, special needs pro- grams, curriculum development centers, and expanded district offices. Frequent- ly a combination of uses is evident as in Bloomington and Hopkins. Bloomington converted Portland Junior High School into the Bloomington Educa- tion Center. The Center houses school district offices, special needs pro - grams, day care, community education, and a curriculum development center. Hopkins converted Eisenhower High School into Eisenhower Community Center (Appendix C). The Center houses school district offices and an alternative school. Long —term leases are available for non — profit organizations; however, profit — making enterprises may rent meeting and convention facilities space on a short —term basis. Hopkins identified a community center as the best choice to serve the citizens of the district, 82% of whom had no children enrolled in school. 50 5