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Photo by Ashley Fraser / Postmedia

The old Saint-Jean Baptiste school dates back to 1906. The city scooped it up in 1977 with the intention of using the building for housing. That plan was scrapped, however, when the city and a non-profit housing provider realized how much it would cost to convert the school into residences.

Since then, community groups and service providers have operated in the building. There’s a full-day nursery school managed by the community health centre and a youth centre, but the nursery school is the only paying tenant, spending $27,829 annually for 2,490 square feet of space.

Otherwise, the rental spaces only generate on average $6,000 annually for the city, which must subsidize operating costs by about $100,000 each year.

The city has sunk millions into renovations of the old building and now considers it an “underused city asset.” The city has spent $4 million on lifecycle work over four years, with more than $3.4 million going to a preservation project for the stone facade.

The city rationalizes the bargain-basement property disposal by emphasizing it will save a pile of money by not having to operate the old building.

On the other hand, appraisals value the property at $3.38 million, and the proposal is being met with some skepticism.

The local community association supports the concept of a community health centre, but worries neighbourhood residents will lose important meeting space.

Michael Powell, president of the Dalhousie Community Association, said it was already difficult to find rooms to book in the area and demand would grow as more people moved into the central-west part of the city.