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BLACKSBURG -- After five years of intergovernmental discussions, Blacksburg Town Council still will not consider rezoning the old Blacksburg Middle School property for strictly commercial uses, according to a letter received by supervisors Friday.

The council's decision, while not unexpected, may stymie Montgomery County Board of Supervisors plans to sell or lease the 20-acre downtown property for several million dollars -- revenue that would be used for school capital improvements.

Dated Aug. 23 but delivered to supervisors late last week, the letter from Town Manager Marc Verniel outlines three zoning classifications the council considers appropriate for the old school site on South Main Street: Two are low-density residential and the third is mixed-use.

The council did not vote on the contents of the letter but agreed at a recent work session that it's comfortable with the zoning classifications being proposed.

"That's about what I figured they would come up with," board of supervisors Chairman Steve Spradlin said. "But everyone has to keep in mind ... we've got to look at the highest and best use of the property to create the best revenue stream we can to support the CIPs [capital improvements] in the schools."

Spradlin said more discussion among the public bodies is needed to hash out the old school zoning issues. For his part, he said he hopes his fellow supervisors will consent to an updated appraisal of the property.

To be most useful, Spradlin said he thinks the appraisal should analyze the property's value under various zoning classifications, including higher-intensity commercial uses.

A joint committee appointed by the council and the supervisors to plan the future of the old school has suggested holding an international design contest to generate proposals for the site. But to hold that contest, the bodies must provide the entrants with an agreed-upon list of zoning classifications to guide the designs.

A similar contest was held in the 1990s to redesign the Blacksburg branch of the Montgomery-Floyd Regional Library on Miller Street.

The future of the old middle school has caused sometimes contentious debate between county and town officials since 2002, when a new Blacksburg Middle School opened on Prices Fork Road. Many Blacksburg voters want the old school property preserved for civic or residential uses.

But many in the county hope to see it sold or leased to a commercial developer to raise money for school building projects to help relieve critical overcrowding and other issues. Supervisors have also said it's imperative that whatever is built on the property generate tax revenues, which can also be used for schools.

In addition to the involvement of the council and the supervisors, the county school board holds title to the old middle school but hasn't used it for public school students since 2002.

In 2004, the school board resolved that it would turn over the property to supervisors for sale under certain conditions.

Supervisors are working on meeting those conditions, which include building a new Blacksburg High School stadium and buying land for a new Price's Fork Elementary School.

Construction on the stadium has begun, and supervisors are negotiating in closed meetings for land for a new elementary school.

The old middle school property is zoned for low-density residential, meaning no more than four single-family homes per acre. The site sits adjacent to both the downtown commercial district and some of the town's oldest neighborhoods. Any commercial development there would require a council-approved rezoning.

While some commercial development would be allowed under a mixed-use zoning classification, "the preference is for the developed portions of the property to be predominantly residential," Verniel's letter goes on to state. "Council also stressed their desire to see open/public spaces and civic uses included in the final design."

Mixed-use is a new zoning classification for Blacksburg, approved by the council in April.

So far only one town property falls into that category -- the old Red Lion Inn on Plantation Road. Former Hokie and NFL player-turned-businessman Bruce Smith recently submitted plans for the 13-acre site that include 284 residential units, 5,000 square feet of retail space and a 140-room hotel.

It's estimated to be a $50 million project.