Seattle School Board members have asked district staff to come up with alternatives to a proposal that would alter the districts' youth and family policy for tenants in surplus buildings because the current proposal could triple rents for some tenants.

To help stave off projected multi-million dollar budget deficits, staff has recommended the district sell or lease out long-term eight of its facilities not used by school programs to yield more funds for maintenance at other district properties.

Leases and other properties earn the district around $2.7 million annually. That money goes into a capital eligible fund to pay for replacement equipment, exterior and interior improvements, nutritional services, health and safety issues and other services not paid for by levies.

However, those demands have exceeded the funds available and the district has had to dip into operation and academic funding, said the district's chief financial officer, Arthur Jarvis.

Tenants who provide youth and family services pay a discounted rent of 50 percent fair-market value in exchange for maintenance and general up-keep of district-owned buildings.

There are seven youth and family centers citywide, and three in the Ballard area; Small Faces Child Development Center (Crown Hill School), Nordic Heritage Museum (Daniel Webster) and the Phinney Neighborhood Association (Allen Elementary).

Ron English, deputy legal counsel and property manager for the school district, recommended the board change its current policy to limit the subsidy to kindergarten-through-12th grade related activities because some services offered in surplus buildings don't meet the policy requirements but are still getting the subsidy.

The need to alter the policy also stems from guidelines set up in the state constitution that limits school spending to kindergarten-through-12th grade activities, including after school and preschool programs but not services like adult seminars.

However, the School Board can decide what activities fit that criterion, said English.

The district reviewed its use of 19 buildings. Building capacity and enrollment trends were the main criteria used to determine which buildings should be kept or disposed of.

Growth in the northwest part of the city is expected to increase in the next 25 years. English recommends the district keep Viewlands Elementary to be used for a school program in the future. That building will be vacated this June due to school closures.

In addition to a change in policy, the district will be increasing rental rates to most tenants based on a reassessed value of current market rents, said English. The originally proposed policy change in conjunction with new rental rates could in some cases double or triple rents for Small Faces, Phinney Neighborhood Association and others.

Representatives from most of the effected youth and family centers spoke at a School Board Finance Committee meeting last month and delivered a united message: A policy change that would drastically increase their rents could shut them down.

"We want them to understand how deeply it would impact the community," said Kim Ositis, president of the Small Faces Board of Directors. "I think they've heard that message, and one hopes it resonates with them. At the very least, I think we've given them something to think about."

Ositis said if the policy were to stay status quo her organization could probably shoulder the rent increase, a bit more than $6,000 annually when the center's lease expires next year.

Rental increases are expected when leases are renewed, she said, "but we just don't want double."

Though the children's center is in favor of the district leaving the policy alone, Ositis said a tiered subsidy system might work, too. That could be a policy that allowed kindergarten-through-12th grade programs the 50 percent subsidy, while for-profit services would be charged another price.

A ballet studio, yoga classes and community meetings are also held in Crown Hill's classrooms.

The policy change and rent increase is only part of the challenge ahead for some tenants. Property management officials have recommended that five of the youth and family centers be considered surplus, including Crown Hill, Webster and Allen. The School Board could decide to sell the buildings.

English said the district would not consider other offers until tenants were given a "full and fair opportunity" to purchase the sites at fair market value. That could mean some of the already struggling non-profits would have to drum up with millions of dollars to purchase the property.

The district has indicated it would remain flexible for how and when tenants could purchase the property.

"I would not go to anyone else without telling the tenant straight up," English said.

Ositis said Small Faces plans to hold the district to its word that tenants would be given first right of refusal if the School Board votes to sell the buildings.

"One has to approach it with a bit of cautious pessimism," said Ositis, "because just because they say that now...."

Ositis said the center would likely try to purchase the residential portion of the site where the school building is located and discuss acquisition of the rest of the site with the city.

School Board member Michael DeBell is in favor of partnering with the city to buy some of the properties. The city council has already set aside $5 million in its general budget to help purchase Allen and two other surplus sites in conjunction with the long-time tenants.

"I feel very strongly this is a natural opportunity for the city," said DeBell, chair of the finance committee. "It makes sense with their mission to support community centers."

But board member Irene Stewart seemed skeptical about why the policy was being reviewed in the first place.

"I think we are going down a real slippery slope here," she said.

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