Board President Matt paused discussion and said the board would not act on the draft long‑term lease for Merit Academy until district counsel and staff could agree on changes.

The draft lease, which would allow Merit Academy to finance about $3,050,000 in capital work at the Merit building, raised immediate concerns from district finance staff about wording, lender remedies and oversight. "One of the most important things I think when you enter into contracts is who you are entering the contract with," said David Kuritar, chief financial officer for Woodland Park School District RE‑2, who reviewed Merit’s audited statements and five‑year forecast during the meeting.

Kuritar told the board he had redlined the draft and identified several issues that he said need legal and technical fixes before the board can responsibly consider the agreement. He cited the district’s statutory duty on facilities, reading aloud language he identified as Colorado statute CRC "CRS 22‑30‑51046 a" as part of his explanation of why the district must protect facility access and continuity. He also raised operational concerns: the lease as drafted uses "appraised or fair market value" wording Kuritar said should reference assessed value, the draft does not name the district as a co‑insured on a sublease liability policy, and it would permit subleases and lender remedies that could allow a lender or sublessee to control the school building without the district's prior approval.

"If Merit defaulted in that lease," Kuritar said, "the cure for their default remedy is that they sublease it to another party without our approval," a condition he and others said the district must correct. Kuritar estimated that stretching the $3,050,000 of proposed work over a 15–20 year financing term would produce roughly a little over $300,000 in annual financing costs; he said the five‑year forecast presented to the board did not include transportation and other district allocations that should be charged to Merit and would worsen its outlook.

District facilities staff described the state of the Merit building and the district's broader backlog of repairs. Jason Farris, the district's maintenance director, summarized a facility assessment that lists roughly $14,000,000 in needs at the Merit building and told the board the district overall faces tens of millions of dollars in deferred maintenance. Farris and other staff urged a district‑wide approach to capital needs rather than a stand‑alone lease that would assign repair financing and asset control to one outside actor.

Merit Academy representatives told the board the lease was developed in consultation with lenders and multiple attorneys and that the school needs access to financing to complete immediate repairs. "We are a very strong, healthy, financially stable school," said Miss Petteron, a Merit Academy representative, noting the school's enrollment and the capital needs identified in the assessment. Merit told the board it engaged real estate counsel and lenders to structure a leasehold mortgage that lenders would accept.

After more than an hour of staff presentations and board discussion, Board President Matt said the board had decided to "hold the lease" until attorneys for both parties and district staff could agree on revised language. Board members emphasized the absence of district counsel at the meeting and repeated that the board would not take a vote on the lease that night because it was not on the meeting agenda. "We can have a consensus," the president said, "but we cannot have a motion on the floor. It's not on our agenda."

Public comment ran more than an hour. Speakers who urged delay asked for more transparency, a completed forensic audit, detailed financial analyses showing how the lease would affect the district and an explanation of who would repay any loan used to fund repairs. Several residents cited the district facility assessment and the loss of a prior sales‑tax revenue stream as reasons to develop a district‑level capital plan instead of approving a long‑term lease. Other community members urged approval of the lease as a way to secure repairs fast and reduce pressure on district budgets. "Under the proposed lease, Merit assumes more responsibility for maintaining, preparing, and improving the building," Megan Grady, a parent and district resident, said during public comment, calling the agreement a "strategic partnership."

No formal motions or votes on the lease were recorded. The board directed staff and counsel to continue negotiating and to return when both parties have a version of the lease that addresses the district's concerns. Staff said they would meet with Colorado Department of Education staff and continue attorney negotiations; a CDE staff meeting with district and Merit representatives was scheduled for Nov. 10.

The board's action on the proposed lease remains pending; the district will not adopt or execute the agreement until the board has had legal review and an opportunity for a formal vote.