Vacant space that’s available in the new county building may not be vacant for long.

The Benzie-Leelanau County Board of Health took action last week to seek an appraisal on the building it occupies, the Connie Binsfeld Resource Center, as well as an adjacent parcel as part of its response to address the financial implications of losing its biggest occupant — Leelanau Peninsula High School.

Closure of the school was announced last month by the Traverse Bay Area Intermediate School District, as well as Suttons Bay and Glen Lake schools.

Money generated from rental of space has been used by the health department to cover its mortgage on the building, which was constructed through the creation of a non-profit organization that sold bonds to finance the project. However, in recent years the department has had vacant space in the building, forcing the agency to supplement the $7,000 monthly mortgage payments.

The department is expected to take $25,600 from its own budget to cover the mortgage this year. As a result, the Board of Health voted in January to raise the rent by 10 percent to offset the shortage.

Further complicating matters is that the county Commission on Aging is scheduled to move out less than a year from now after completion of the new county government building, leaving more vacant space.

Health Department director Bill Crawford said the school occupies 30 percent of the Binsfeld building.

The Northern Health Foundation (NHF) built the structure with the backing of Leland Township, to which the Binsfeld Center is expected to be turned over when the mortgage is paid off.

Crawford has asked the NHF’s board of directors whether it’s possible for the department to rent more than 10 percent of the building to a “for profit” organization.

“I’ve been told this is not possible. The maximum allowed (with this funding mechanism) is 10 percent. It’s an IRS (Internal Revenue Service) rule,” the director said.

The NHF board has told the department that a 2.369-acre parcel, created during the formation of the non-profit, could be sold with the proceeds offsetting the mortgage balance, which stood at $901,803 as of Nov. 1, 2006.

The vacant land is located adjacent and just west of the Binsfeld Center.

“I’ve been told this could likely occur,” Crawford explained. “It’s not a long-term solution, but a source of potential revenue.”

An appraisal of the property is the next step for the department. Both the NHF and Leland Township would have to sign off on the property for a sale to be completed.

One-third of the lower level of the county building, which is 22,000-square-feet in area, is identified as “future unfinished.” The remainder of the floor is designated for the buildings and grounds office, an employee break room and meeting room.

The health department occupies 6,000 to 6,500 square feet at the center, exclusive of waiting and conference rooms.

In other business during the March 22 meeting, the board adopted revisions to the department’s environmental health regulations as recommended by Crawford and the department’s alternative treatment system technical Advisory committee. Substantive changes include:

• Addition of a requirement that septic tanks have a “riser” in the top if the tank is greater than 24 inches below final grade.

• An amendment allowing existing homes with on site septic systems to fill up to two feet of soil to meet the 4-foot water table requirement. This will allow more homeowners to forego switching to holding tank systems.

• Removal of the 500-foot setback requirement from a body of water if the system meets a higher standard of treatment for total inorganic nitrogen — 10 milligrams per liter instead of 25.

“Our goal is to figure out how to stay in the building. If this is not possible, we need somewhere for it to be. The new county building could be an alternative,” Crawford said.

Further discussion on the issue is expected to continue at the Board of Health’s next meeting, scheduled for May 24.