Island County may have found a new tenant for its vacant building on Maxwelton Road.

That’s the good news.

The bad news is that the potential new tenant, the South Whidbey Parks & Recreation District, is estimating it would pay less than a third of the rent the county says is required for upkeep and maintenance of the building.

The building has been empty since its former tenants — Citizens Against Domestic Abuse, Compass Heath and the county’s own health-services operation — moved out. When Island County Health Services relocated to Bayview Corner in June, the county sought someone to take over the 3,756-square-foot structure.

Enter the South Whidbey park district. The district has been looking for months for more room for its programs, as well as a chance to move out of its cramped digs at Community Park.

Negotiations are currently under way to find a compromise rental price. But if history is any guide, the county has hurdles to clear in making a deal pencil out.

For years, the county operated the building, on land adjacent to park district property, at a substantial loss. The rent collected in 2009 was only 60 percent of the $3,810 monthly maintenance costs and reserve fund needed for inside and outside upkeep, repairs, power and capital improvements.

The bigger rub? Demand for office space is nearly non-existent in the current economy.

“People aren’t out there fighting for office space right now, so we welcomed the park district’s interest,” said Betty Kemp, director of the county’s General Services Administration.

Kemp noted that, three years ago, the county approached property managers and local real estate agents in the search for tenants and came up empty.

Another challenge for the county is the state of the building itself. Renovations would need to be made before the park district would use the facility, and the changes include removing some walls and other upgrades.

The park district is hoping the county will pay for the work, and parks officials have also estimated the district would pay approximately $1,000 a month to rent the building.

The district’s present office is a problem.

Located on the second floor of a building at Community Park, visitor access is restricted because the parks board decided not to spend $90,000 to fix the elevator. The space is cramped, especially when the district holds a meeting and a lot of people show up.

The district has been on the lookout for more space in recent months. Parks officials scoped out Langley’s vacant fire hall in the hopes it could be used for programs. Officials later gave up on that building. Other ideas that included using Bayview Community Hall or the primary school haven’t panned out either.

The county’s building solves those concerns.

The single-story health-services building is across the street from the elementary school, has ample parking and would allow the cramped office staff to spread out, as well as offer much-needed programming space.

“Our goal has always been to secure more room for our varied programs,” said parks director Terri Arnold. “Having our own dedicated space means we can spend more time running the programs and less trying to find where they should go.”

Arnold estimates the parks district would need to spend $20,000 on the county’s unused building, beyond the $12,000 needed to lease the building each year.

According to a budget presented to parks commissioners Wednesday, the $20,000 includes $10,000 for an electronic reader board that would be installed on the property, as well as $10,000 for furniture, supplies and other set-up costs.

If the county and parks commissioners eventually agree to the deal, the district’s building at Community Park would be devoted to other uses.

“The current office would be given over to desperately-needed storage,” Arnold said.

The park district is also considering constructing a steel building to store equipment at Community Park. Permits, clearing, grading, plumbing, electrical, foundation, fencing and the shed itself would cost roughly $99,000.

At their meeting this week, parks commissioners held off on approving the new storage building until negotiations with the county are complete.

“We really can’t discuss the subject until we get a firm idea how much the county will charge for rent,” said board chairwoman Linda Kast.