Reference no: EM132639490

A town planning board must decide how to deal with the Kendall Elementary School building. Twenty years ago, the Kendall school (one of four in the town) was closed due to falling enrolment. For the last 20 years, the town has rented 60 percent of the building space to a non-profit organization that offers classes in the creative and performing arts.

The group's lease is up, and now the board is mulling other options:

a. Renew the current lease agreement. This will generate a small but steady cash flow and free the town of building maintenance expenses (which under the lease are the tenant's responsibility).

b. Renegotiate the lease and solicit other tenants.

c. Use the building for needed additional town office space. (A minimal conversion would allow reconversion to a school in 5 to 10 years, when the elementary school population is expected to swell.)

d. Sell the building to a private developer, if one can be found.

e. Convert the building to condominiums to be sold by the town.

f. Raze the building and sell the site and all or part of the surrounding playing fields as building lots (from 6 to 12 lots, depending on how much land is sold).

Problem 1: Apply the six decision-making steps to the town's decision. What objectives might the town pursue in making its decision? What additional information would the planning board need in carrying out the various steps? What kind of analysis might the board undertake?