Community groups and other organizations that rent surplus Seattle School buildings, including three in the Ballard area, could get a chance to purchase the sites if they can come up with millions of dollars.

The district is currently evaluating its lease agreements with tenants in 19 surplus buildings across the city to determine whether or not to sell or increase rents to make more money. Seven are school buildings slated for closure this fall.

The Daniel Webster School in the Sunset Hill neighborhood has been home to the Nordic Heritage Museum for the past 25 years. The museum will leave for a new building in Ballard by 2012, but its lease with the district runs out in 2010.

Small Faces Child Development Center in the Crown Hill School and the Phinney Neighborhood Association in the former Allen Elementary have also enjoyed 25 years in old school buildings. Viewlands Elementary will be vacant when it closes this fall.

The district will also revisit its policy that allows tenants who provide youth and family services to pay a discounted rent of 50 percent fair-market value. Tenants agree to pay for maintenance and general up-keep of the district-owned building in exchange for the subsidy.

Small Faces and the Phinney Neighborhood Association have such agreements with the district.

But the district is only allowed to spend money on programs that support kindergarten-through-12th grade education, said Ron English, deputy legal counsel and property manager for the school district. That includes after school and preschool programs but not services like adult seminars.

Services offered in surplus buildings that aren't kindergarten-through 12th grade oriented could be charged full price, said English.

Also, some master tenants have not been passing the subsidized rent on to kindergarten-through 12th grade related programs in their building and instead charging those programs full rent.

"The policy change would take the subsidy away where the master rent charges market rent to K-12 programs," English said.

Rents for master tenants will likely increase, possibly "significantly," based on an evaluation of the properties current market value, said English.

English joined a panel discussion with Seattle City Council member David Della and Seattle School Board member Michael DeBell at last week's Groundswell NW meeting.

Lynn Wirta, executive director of Small Faces, said it would be impossible for the center to handle the increase the district has proposed, which is about $9,000 a month, double what it currently pays.

Directors at the Phinney Neighborhood Association and the Nordic Heritage Museum have said they wouldn't be able to shoulder a significant hike in rent either.

One woman said the Crown Hill School served as the neighborhood center and community playground. She presented DeBell with a petition signed by Crown Hill residents in support of Small Faces.

"We'd like you to consider the impact of selling off that property," she said. "They are very important to us."

This month the School Board Finance Committee will hear recommendations on both rental rates and whether to keep or dispose of properties.

Though the district needs to create more revenue, keeping the buildings in community use is one of the district's priorities, DeBell said, chair of the School Board Finance Committee.

"We don't want to jeopardize the continuing life and vitality of those organizations that are there...we're caught in a dilemma," he said.

DeBell said the district hopes to avoid a "worst case scenario" where the property is sold to condo developers, such what happened with the old Queen Anne High School.

The district will first evaluate whether each building will be needed as a school in the next 25 years based on expected enrollment trends. If it's declared surplus, the district will either sell it or lease it on a long-term basis, whichever produces the highest return to the district, said English.

Enrollment trends will be heavily weighted and it's predicted that the north end of the city will see substantial growth in the next several years, he said.

It's possible that Viewlands could be kept as inventory to be opened again as a school when the growth in the area justifies the need, said DeBell.

"We want to be ready with school buildings when that growth occurs," said DeBell. "...But we also don't want to hold onto buildings we don't need because we want to make every dollar count" in the classroom.

The city has set aside $5 million in its general budget to help purchase Allen Elementary and two other surplus school sites in conjunction with the neighborhood groups that have been long-time tenants.

But those community groups will still have to come up with a large part of the purchase price, said council member Della.

Long-term tenants would also get first dibs on properties the district decides to sell before going to an open market, said English. But the sites must be purchased for no less than market rate, required by state law, which in some cases could be millions of dollars.

In the past the district has waited for community groups to raise the money, as in the case of the old Cooper School, said English. It took three years for the Delridge Neighborhoods Development Association to raise enough money to buy that building.

It would be difficult for groups like Small Faces to come up with enough money to purchase the property, "but I believe the district would be patient," English said.

One Small Faces parent asked if the building could be offered to the childcare center at an affordable price.

"Because I don't think Bill Gates attends our school," she said.

Another parent wanted to know if the district would seriously consider the importance of Small Faces to families before they increase its rent or sell the building.

"You have a sympathetic School Board but the school district does not really want to be in the property management business," DeBell replied.

Another woman said the district should think about how raising rent on childcare services would affect working families struggling to get by each month. To come up with $100 more a month in childcare can be devastating for families, she said.

"You'll have families in dire straights," she said. "Think about that when you're talking about your fair market values."

Rebekah Schilperoort may be reached at 783.1244 or rebekahs@ballardnewstributne.com