NEW GLOUCESTER – SAD 15 directors have approved a memorandum of understanding to allow Pennell Institute to be given back to the town of Gray. The vote was 6-4.

The district receives a 30-year lease to use a portion of the building for administration office space.

The Gray Town Council on Tuesday tabled voting on the issue for lack of a full board. If Gray approves the memorandum, then Gray and SAD 15 will meet with Maine’s attorney general to see if the provisions of the lease satisfy the provisions of the educational trust. The attorney general oversees all educational trusts in Maine.

The Pennell Institute Trust was established in the late 1800s by Henry Pennell of Gray for the purpose of educating Gray youngsters.

When SAD 15 was established in 1962 between Gray and New Gloucester, a court ruling forced Gray to turn over the land and buildings to SAD 15. Gray was allowed to keep a trust fund that is used for educational purposes for Gray students.

The state attorney general last year ruled that the educational trust property under SAD 15’s trusteeship could be sold or swapped for land of equal value for school purposes, to continue the educational trust responsibilities. SAD 15 cannot dissolve the trust.

Gray leaders say they want the buildings returned to Gray. The building is a historic property in downtown Gray and is home to the Gray Historical Society. And, for many Gray residents, the school is part of their educational legacy.

If the attorney general approves the memorandum, then Gray voters must approve the transfer and appropriate funds to convert the building to town office space for an estimated $1 million.

The brick building, built in the late 1800s, must comply with local, state and federal building and safety laws, and regulations and codes, and be accessible to the disabled.

John Welch of Gray said he believes the Pennell educational trust was never turned over to the school district, despite rulings to the contrary by the attorney general and lawyers for Gray and SAD 15.

Fran Monroe of Gray fired questions to the board about the building’s value and asked why the district wants to dispose of the building.