The Sunset Empire Park and Recreation District will purchase Broadway Middle School from the Seaside School District.

The purchase price is $2.25 million, school district superintendent Susan Penrod said Monday.

Park district board members approved a resolution to seek financing for up to $2.5 million in a special meeting last Thursday.

“I think this is a really good opportunity and hopefully we’ll be able to program recreational and community opportunities for people that live here,” Skyler Archibald, the executive director of the park district, said. “It comes at a much more affordable price tag than the previous bond and (the cost of) new construction would be at any point.”

Broadway Middle School, located off of U.S. Highway 101 and Broadway, is among school properties relocating this fall to a new Spruce Drive location outside of the tsunami inundation zone.

Marketed at $2.9 million, 3 acres are zoned residential and 2.4 acres are zoned for commercial use of the 5.4-acre property. The 73,000-square-foot building includes the school with two gyms, cafeteria and kitchen.

In seeking tax-exempt debt financing, the park district is represented by a member of the Special Districts Association of Oregon, Archibald said, using financing options the district has used in the past to expand the Sunset Pool and acquire park district property.

A portion of funds will cover an undisclosed amount of earnest money to the school district and inspection costs, which are already underway.

The park district has 45 days to conduct due diligence, at which point the earnest money would become nonrefundable.

Inspection begins next week, and the park district could close on the property by Dec. 17.

“In the agreement, there is an opportunity for us or the school district to adjust the offer,” Archibald said. “We don’t anticipate doing that. We are hopeful we won’t find anything that really changes our mind. But we wanted this longer due diligence so we can see the building with fresh eyes and get into some of the places we haven’t been able to get into and see the condition of those spaces. We know it’s an older building. We still don’t want to find any big hidden surprises.”

A $20 million bond for a renovation and expansion of the Sunset Pool was rejected by voters in 2018.

A business plan for the purchase of the middle school by the park district was presented last November.

In June, the park district board rejected pursuit of the project, citing potential remediation costs, rejection of the 2018 bond and a weak economy.

The board reversed its decision last month.

Potential partners going forward include the city, which leases portions of the property from the school district.

“The city has expressed an interest in maintaining that part of the property for the visitors bureau, chamber of commerce building as well as the public restrooms,” Archibald said.

The school district has also shown interest in leasing part of the property as gym overflow and locker rooms for sporting events at Broadway Field.

“Sunset Empire Parks and Recreation is a valued community partner,” Penrod said. “We appreciate their commitment to Seaside, especially the health and wellness of our children. We are excited to see their new project develop.”

Park district board members saw potential for commercial tenants on the property.

“There could be dance studios in there,” board member Michael Hinton said. “There could be a doggie day care. I’m looking forward to seeing this develop. It’s more than a landmark endeavor.”