Libby City Council agreed Nov. 4 to pitch in for a market study as part of the potential sale of Asa Wood Elementary School and conversion into a senior assisted living facility.

In a 4-2 vote, councilors directed $2,375 toward the analysis. The Kootenai River Development Council (KRDC) will match that figure while American Covenant Senior Housing Foundation, the organization interested in redeveloping the shuttered school, will pay $4,750 plus travel expenses.

The city’s portion will come from its economic development fund.

Tina Oliphant, KRDC executive director, said American Covenant toured three sites in Libby before narrowing their list to Asa Wood. The organization hopes to built 60 to 65 senior assisted living units, officials said.

Were the project to move ahead, the Libby School District, which is paying $9,000 for a property assessment, would arrange the sale. If the market study shows demand, American Covenant will enter into a purchase agreement, complete design work and begin financing and construction, officials said.

The organization already is working with MoFi of Missoula and Glacier Bank to secure tax credit funding and potentially $10 million for redevelopment, Oliphant said.

City Councilor Rob Dufficy opposed the measure, saying the school district ought to carry the full financial burden, as they stand to profit off the sale. He questioned the benefit to City Hall.

“The benefit is to your community,” Oliphant said. “The value to the city is that you’re doing something for the community, you’re being progressive.”

Supporters argued city officials would have access to the study and could use it in future planning projects.

“I think this is a very small ask,” said City Councilor Kristin Smith. “I think a market study would have a huge value to our community.”

Were the project to ultimately go through, it would bolster the city’s tax base, said City Councilor Brian Zimmerman.

“I’m not against any of this,” Dufficy replied. “I just don’t think the city should have to pay for this.”

When supporters pointed out that the money would come from the economic development dollars provided by the federal government, Dufficy made a motion to table the proposal. The delay would give him time to learn how the fund worked and what the guidelines were for using the money, he said.

The motion failed.

“You should have had your questions answered [ahead of time],” Zimmerman said, pointing out that the proposal was available to city councilors several days before their scheduled meeting.

Afterward, Oliphant said the discourse left her troubled. Although pleased with the result, she worried at the tendency to silo off what she saw as a community-wide project.

“I was concerned by the comments implying this should be only the school district’s responsibility,” Oliphant said in a statement. “I am perplexed when they consider themselves separate from other community institutions, such as our school district, when addressing community needs.”

Officials said appraisers would arrive in Libby to inspect Asa Wood in mid-December. The district closed the school in 2011 as part of a consolidation effort. Officials have maintained the structure since.

The popular community garden located adjacent to the school will remain untouched, officials said. American Covenant is solely interested in the building, they said.