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The 鈥檚 original building opened in 1963, and a classroom annex opened in 1981. Upgrades and additions are needed at the Southeast Portland school, but it has limited financial resources.

So, the school found a creative solution: long-term leases for private entities to operate on two parcels of the 20-acre site. One development will be a 72-bed skilled nursing facility, and the other 鈥� on a six-acre parcel at the property鈥檚 north end 鈥� is still undetermined.

The academy doesn鈥檛 intend to expand programs or increase its student population, but a master plan calls for a host of improvements: a new music studio, library, gymnasium, cafeteria and chapel; classroom and lab upgrades; and new soccer and softball fields. And now there is a way to pay for those projects.

鈥淎ll of the improvements are going to be funded by the school鈥檚 excess land,鈥� said Ryan Schera, a land-use planner with .

He said that the dense, commercial area could suit a few different kinds of developments. The school has already reached an agreement with for construction of a nursing facility where a soccer field exists, near Adventist Medical Center.

鈥淭he location piqued our interest with its proximity to the high school and the (Interstate 205) freeway,鈥� said Scott Miller, director of property management for Marquis. 鈥淭he ability for folks to access 鈥� including residents, families and doctors 鈥� fits all of what we look for in a location.鈥�

The project will be built in two phases, with 54 beds at first and then 18 more later. The school hopes to be able to encourage students to work or volunteer at the facility.

鈥淭here鈥檚 a lot of potential, in jobs and community service activities,鈥� Portland Adventist Academy Vice Principal Ty Johnson said.

Construction of the nursing facility is likely to start next summer, Miller said. Shortly thereafter, the school plans to begin its own upgrades.

The school鈥檚 Conditional Use Master Plan proposal was presented to the city on Wednesday. A hearings officer said he planned to approve the plan.

Next week, a plan for another part of the school鈥檚 property will be before Portland City Council. The school is hoping to encourage a private party to develop the six northernmost acres of its property, near Mall 205.

The school hasn鈥檛 reached an agreement with a developer, but it has some ideas for the property. Johnson said the school has talked to some colleges about building a branch campus, but officials also have discussed office space and housing.

City Council is considering a proposal to change the property鈥檚 zoning so that any of those uses would be allowed.

For both the nursing facility and the other development, the school is seeking 50-year leases.

鈥淭he whole idea is to secure the school鈥檚 future,鈥� Johnson said. 鈥淭hrough these leases, we are creating cash flow for the next 50 years.鈥�