American Covenant angling to speed up Asa Wood sale

Libby Public School District officials are exploring a new avenue for repurposing the defunct Asa Wood Elementary School.

Superintendent Ron Goodman told school board members during a Dec. 7 meeting that representatives from American Covenant Senior Housing Foundation are interested in buying the property outright.

Under the terms of their newly proposed deal, the foundation would purchase the lot for $547,000 and would raze the school in order to build an assisted living facility. The district would be responsible for covering the costs of cleaning up hazardous material on the site up to $530,000.

“[The foundation] has decided from a business standpoint that tearing it down is the more preferable option than cleaning it up,” Goodman said.

Contamination of the Asa Wood building has significantly complicated the district’s plans to sell it.

An August inspection of the structure found 13 building materials that tested positive for asbestos and an additional six that were assumed to contain asbestos. Inspectors found significant amounts of lead-based paint both on the inside and outside of the structure. They also confirmed four thermostats contain mercury.

The school district is currently seeking a grant through the federal Brownfields Program that would help secure the approximately $388,000 needed to clean up the building. While the district would only have to pay for 20 percent of the cost — or $77,600 — the project would stretch to October 2022. After completing remediation work, the district would be able to sell the building and grounds to American Covenant or, potentially, another interested buyer.

American Covenant representatives have previously proposed a plan to construct an assisted living facility with the existing school building. Gerald Fritts, chief executive officer of American Covenant, told Lincoln County commissioners in July that the foundation’s facility would house 45 units and create approximately 22 jobs. Under the plan, the foundation would allow the school district and other community groups, including the Libby Food Pantry, Libby Area Community Garden and Girl Scouts, to continue using the property.

Fritts also said in July that the site would accommodate a 5,000 square-foot food pantry. The school district, which uses the Asa Wood kitchen to prepare lunches for students, would receive a new onsite kitchen as part of the plan.

While considering American Covenant’s new proposal to raze the building, school board members wanted assurance that the foundation would construct the new onsite kitchen before demolishing the existing one.

“That’s priority No. 1,” said Goodman. “We cannot be in a situation of not having a place to cook breakfast and lunch.”

Before proceeding with the new plan, school board members must iron out what would happen if American Covenant were unable to finish the project after purchasing the property. If the foundation were to go bankrupt in the middle of construction, the district could suddenly find itself at the mercy of whatever entity assumed ownership of the site.

The district’s contract with the foundation would also have to be durable enough to withstand a change of ownership after American Covenant finishes construction.

School board members wondered what would happen to the community organizations that currently use the building if American Covenant were to demolish it.

“I realize that the kitchen is our main interest but I feel like the food pantry is right there too,” said Bgee Zimmerman, board trustee. “I don’t want to leave them hanging.”

Despite the details that still need to be addressed, the foundation’s new plan carries some immediate benefits for the school district.

In an interview following the school board meeting, Goodman said maintaining the defunct building puts a strain on the district’s coffers. The diesel fuel needed to heat the school alone costs up to $20,000 a year. By pressing ahead with a plan that would put the building in the hands of American Covenant sooner rather than later, the district would see savings.

Goodman also noted that getting the assisted living facilities up and running would add jobs in the city. With the property in private hands, local government would receive a bump in taxes.

To tackle the legal minutia of the deal, the school board is working with Debra Silk, the associate executive director and general council for the Montana School Boards Association.

Board members have planned an upcoming meeting with Silk on Dec. 14.