HAYDEN — The old Hayden Lake School at 9650 N. Government Way is going back out to bid.

The first bidding process for the school, owned by the Coeur d'Alene School District, opened in March. The two bids submitted by the April 20 deadline were $1,501,000 from John Geddes and $829,000 from Aspen Homes. Both were rejected by the school board, citing that both bids were well under the appraised value of the school.

"The board is not in a position where they're able to accept those bids because they came in under appraised value, and that's by state statute," district operations director Jeff Voeller said at the school board meeting Monday. "It's time for us to consider next steps."

The board voted to move forward with a rebid process, setting the minimum acceptable amount at $2 million rather than disclosing the appraised amount, at the recommendation of district officials. The school was reappraised in February.

"I still think there's interest in this property out there," Trustee Casey Morrisroe said. "I'd like to see us move forward with another bid."

On Friday, Voeller said the school could have a variety of uses.

"It's definitely high-value land," he said.

The deadline for the second bid is 2 p.m. May 20. If those bids are rejected, then the board can choose to place the school on the active market and open it up for a public process.

"We’re definitely hoping for greater success," Voeller said. "We were surprised to see such low bids come in in this hot market."