The group that leases the old Fauntleroy School will not face an immediate increase of its lease payments despite the fact the Seattle School Board has adoped new procedures leading to market rate leases for buildings no longer needed or used as schools.

"We are hopeful we can come to an agreement with the School Board to purchase the buiding and land," said Kevin Wooley, president of the primary lessor of the building, the Fauntleroy Community Services Agency.

The group held a public meeting last week in the Hall at Fauntleroy to discuss the process of coming up with the money for the purchase. The School District has placed a "suggested value" on the building and the five acre site, which Wooley said was a "starting point" and noted the land is worth more without the old and outdated brick school structure.

Meanwhile, on the same evening, the School Board approved a new version of the "Procedure for Sales and Rentals of Closed School Facilities and Other Real Property."

Ron English, property manager and deputy general counsel for the district, said the procedure has been rewritten through two years of discussions and drafts.

"The 'full market value' test remains," English told the school board. "Any discount or subsidy will be applied only to organizations that use the facility for youth education."

Previously, the school board reduced rent 50 percent for seven organizations that promoted youth and family activities. The revision, recommended by the school board finance committee, focuses more narrowly on education and does not limit the number of organization that can get the discount.

In addition, the rent was reduced for an entire facility. Now only subtenants providing youth education will get the reduction.

The text of the proposal lists qualifying activities as "before and after school programs; preschool, child care, and infant care; tutoring, reading, and other supplemental education; dance, art, and sports programs directed to children; and similar activities directed to enhance and enrich childhood experiences."

Other tenants would pay rent equal to full market value.

"We don't want third parties going against the wishes of Washington State law, limiting where the dollars go," Sundquist said.

An increase in rent would not begin for a year, and would be phased in over four more.

English said the school district would compare the financial advantages between selling a surplus property and keeping it to lease.

If a surplus property may be sold, the school district would offer it first to current tenants, and preferentially to educational organizations and community groups local to the property.

"What hasn't changed," English said, "is the community involvement process. The neighborhood will be involved, although the neighborhood near the property, not the city at large."

The Legislature has allotted $4.6 million in the recently approved biennial budget to help community groups purchase their buildings. "The Community Schools Act of 2008" would make available through a competitive grant process, funds for the development of community schools and to convert empty school buildings into community facilities.

The old Fauntleroy school, originally a six-room brick school house when it opened in 1918. In the 1950s for the population boom of school-age children, the school was one third of a community "triumvirate" with the nearby YMCA and the Fauntleroy Congregational Church.

After closing in June 1981, the property was leased to a day care center.

The Fauntleroy Community Services Agency wants to buy the building and made it clear it wants to upgrade the building and keep its tenants, including the Fauntleroy Children's Center, Tuxedos and Tennis Shoes Catering, and the Seattle Civic Dance Theater.

Wooley and others at the meeting last week said no decisions have been made and that many meeting for the Fauntleroy Community would take place before anything was finally decided.

The Fauntleroy Community Services Agency has suggested that some of the back portion of the property could be sold for housing units. The School District in its assessment says the acreage be 40 building sites, but Wooley said any such use of the area behind the school would have to fit into the community.

"We won't want a bunch of condos there, but rather homes that fit into the Fauntleroy neighborhood," he said.

A major problem of the building is years and years of deferried maintenance. The Fauntleroy group has come up with an assessment of renovation needs.

Urgently listed, with investment "upon purchase" of the building , include lead paint removal, installation of sprinkler systems and upgrades to current seismic codes.

Soon after the owner of the building would have to add roof insulation, replace or upgrade the 100 year old boiler and add lighting to meet new city codes. Finally, the school would need to have improvements such as double-glazed windows and replacement of all the plumbing.

These needed improvements would cost $2 million upon taking ownership, $2.4 million within two years and $4 million to $6 million during the next three to six years.

Despite the district's asking price of up to $10 million, the King County Assessor values the property at $3,558,900.

Jack Mayne may be reached at jmayne@robinsonnews.com. Matthew G. Miller may be reached via wseditor@robinsonnews.com. Material in this report came from previous stories by Rebekah Schilperoort, reachable at rebekahs@robinsonnews.com