AGO Opinion Topics: LEASE SURPLUS SCHOOL DISTRICT PROPERTY

(1) Subject to the qualifications stated below, a school district may lease its surplus facilities, under RCW 28A.58.040, to private schools, profit or nonprofit organizations or other governmental agencies so long as the leasing thereof will not interfere with the building's use for school purposes and the tenancy to be granted will not place the facility beyond the control of the district in the event it again becomes necessary for school purposes.  (2) In all such cases some rental, either in money or something of equivalent value, must be paid; and with the exception of a rental to another governmental agency, that rent must be such as will (a) fully compensate the school district for its costs and expenses and (b) encompass the fair rental market value of the rented premises.  (3) If the lease is either to a church-related school or to a private group for the conduct of religious worship or instruction, the property being rented must be sufficiently remote from other property being retained for school purposes to avoid the appearance of an endorsement of the religious activities of the lessee and also prevent any sectarian influence of the remaining public school operations.  In addition, a procedure, preferably involving competitive bidding, must be utilized in the formation of the lease which will assure that all prospective tenants, religious or otherwise, have an equal opportunity to rent the property.