BRUIN — The Housing Authority of Butler County’s proposal to transform the vacant Bruin Elementary School into a senior living and community center has stalled.

The authority hoped to pay the Karns City School District $100,000 to turn the school into an 18-unit complex and community learning center. Under that agreement, the district could continue to market the building for sale for two years with the authority having first right of refusal on any other offer.

However, executive director Perry O’Malley said at the authority’s meeting Thursday that the school board would only accept the proposal if the authority would take over paying the roughly $38,000 per year cost for utilities and maintenance on the building.

“I don’t believe that to be an attractive offer,” O’Malley said.

Board member Jerry Andree said the school district needs to work with the authority if it wants the project to continue.

“This needs to be a partnership,” he said. “They can’t just look at us as a developer.”

The authority first attempted to buy the property in January 2013, but the school board rejected the offer, opting to seek other buyers.

The authority rekindled its interest in February when the school board offered to reopen negotiations.

O’Malley said he doesn’t think there are a lot of options for the old building on Main Street, adding a warehouse is perhaps the only other use for the property.

“It doesn’t have much value being in a rural area,” O’Malley said.

He said the best use of old schools is turning them into community complexes.

He said the available amenities, such as a gym and a computer room, work nicely for the authority and its goal.

“It’s hard to afford building those in today’s market,” he said.

The authority has already discussed possible partnerships with the Center for Community Resources to operate the facility.

The school in 2012 was appraised for about $260,000. O’Malley said that figure might be “a little ridiculous.”

He said it would take the authority some time to get grant money for the project. He said the two-year option would allow the district time to find a more attractive offer, if possible.

“If they find someone who wants to pay $500,000 for it, great,” he said. “I wouldn’t deny them that.”

The building has been vacant since June 2012.

O’Malley said it isn’t practical for the authority to take on the additional utility expenses for the building.

“If they don’t see the value in the proposal we made, then they can sell it for what they get for it,” he said.

O’Malley said delays in negotiations have caused the authority to miss out on grant opportunities from the state, and that the authority has moved on to focus its attention on other projects, including the proposed 18-room veterans living center at the VA Butler Healthcare campus.

Still, O’Malley thinks the complex could be beneficial to the rural community.

“This could be a great project for the northern half of the county,” O’Malley said.

The authority told its solicitor to make a counter proposal to the school board with its previous offer.