The Kodiak Island Borough assembly at its Nov. 13 work session directed borough staff to pursue lease negotiations with a tribal preschool to occupy a wing of the North Star School building and asked the manager to develop a plan for leasing the remaining space.

Manager Amy told the assembly the borough now holds the North Star facility, repairs to the fire panel are complete and new boiler burners (just under $25,000) are obligated. She estimated annual operating costs at roughly $170,000 a year — citing average annual utilities of $128,078.33, insurance at just over $27,000 and snow and ice control about $11,000 — and presented rental options to help offset costs. “A rental rate of a dollar and 20¢ per square foot” produces estimates of about $150,523.20 a year if hallways are included, or $131,198.40 if they are not, she said.

The assembly heard from JJ Marsh, who represented the tribal preschool, that the program currently enrolls 41 students with a wait list of 36 and that 44% of enrolled children identify as Alaska Native. Marsh described needed classroom, staffing and playground upgrades to meet licensing and cultural programming needs. “Expansion is not simply about adding space. It’s about building the infrastructure needed to ensure our youngest learners are safe, supported, and thriving,” Marsh said.

Members debated whether the borough should set a subsidized community rate or seek higher rent closer to market. Assemblymember Beau raised concerns about public subsidy but also noted comparable arrangements with nonprofits: “Red Cross and YMCA are both paying a dollar 20 a square foot” in borough facilities, Manager Amy said. Several members said finding a tenant for the other wing (after‑school programming, YMCA or other nonprofits) would improve overall finances and reduce vandalism.

After extended discussion about zoning (planning and zoning has issued a similar‑use determination allowing daycare in the wing), liability, security camera needs and how to apply any reduced rates fairly, the assembly gave the manager direction to prepare a lease and enter negotiations with the preschool and to prepare a plan for the remaining wing’s use. The assembly’s support was described as general consensus rather than a formal roll call vote at the work session.

The borough will next bring formal lease documents and any required fiscal notes back to a future meeting for action; the assembly also discussed scheduling roof work and other deferred maintenance if the borough retains the building.

For now, the most recent step is direction to staff: pursue lease talks with the preschool and produce a plan for leasing remaining space, while members continue to weigh community benefit against cost recovery.