AUSTIN, Texas — Austin ISD school board officials are considering leasing a floor of their Central District Office to the Greater Austin YCMA.
According to district documents, if approved, the YMCA would sign a five-year lease for the space and would pay $300,000 a year in rent with a 5% annual increase. The lease would begin on April 1.
The YMCA would occupy the fifth floor of the building, and AISD staff from the fifth floor would move to the fourth floor. School district staff from the fourth floor would move to Metz School.
The fifth floor currently includes AISD staff working in academics, career and technical education, school family and community education staff, and special education staff. AISD staff at Metz currently includes STEM support, construction management, library services, health services and nursing.
The revenue from the rental agreement would offset operating costs for the central office.
The YMCA would be allowed to make improvements and alterations to the space, add signage and extend the lease if required, AISD documents say.
The lease comes as the district is facing a $110 million budget shortfall.
Initially, Austin ISD was anticipating a $78 million deficit for the current school year, but the number jumped, which district leaders attributed to falling property values in the area. A decline in property value means the district takes in less property tax revenue.
This month, the school district froze hiring as financial issues persist. District leaders are now scrambling to cut another $32 million in spending, to once again meet the initial $78 million deficit.
Austin ISD will vote on the lease during Thursday’s board meeting.