SOUTH SALT LAKE — Mothballed Granite High School could be turned into a new city hall, a living and working space for artists, or a community recreation center, according to an alternative-uses study commissioned by South Salt Lake.

The Granite School District has notified the city that the 35-acre campus at 3305 S. 500 East is up for sale. The city has the right of first refusal on the property, according to state law. Salt Lake County is next in line.

"We're interested in working with (South Salt Lake), and we have a good relationship with city officials over there," said school district spokesman Ben Horsley, who added that the district hopes the city will purchase the land.

Operations and ownership of Granite High School could be split based on usage, Psomas Engineering consultant Gerry Tully recently told the South Salt Lake City Council. Now, the property contains about 13 acres of recreation space, about seven acres of buildings and seven acres of parking.

The $25,000 study by Psomas took about six months to complete, said South Salt Lake director of community and economic development Larry Gardner. In fact, it was initiated before the closing of the 103-year-old school was announced this summer, he said.

The South Salt Lake City Council is very interested in saving the property from development, but is not sure yet whether it would be willing to take out debt for the project.

Tully pointed out that turning the property into homes or stores would be a big mistake.

"Those playfields bring value to every single property in your community," he said.

South Salt Lake already is facing budget shortfalls from low sales-tax receipts and high one-time expenses such as the creation of a new ambulance service. Beyond considering debt for acquisition of the school, the city is facing pressure to bond for developments in and around the Market Station project near 2100 South and State Street.

The council has asked city staff to study how much new bond debt would cost. It's expecting a presentation within a few months.

Thereafter, public open houses will be scheduled concerning the future of the property.

"I think this is a wonderful opportunity to begin an appropriate dialogue," said Councilman John Weaver.

e-mail: rpalmer@desnews.com