Faced with an enrollment decline of over 50 percent since 1962, the board of the public school system in Seattle (Washington) decided in 1981 to close 18 of the district's 112 schools. This report details the decade-long process that led to this decision, treating in particular the changing relationships among the school district, the city, and concerned citizens. Drawing on interviews with local city and school officials and community representatives, and on examinations of the records of the period, the researchers found that the process of school district policy-making on facility utilization had been fraught with many difficulties and had undergone many changes. The roles of the school board and citizen groups in obtaining, developing, and utilizing relevant information changed considerably over the years. Despite an outcome that failed to satisfy all participants fully, the policy development process did lead to some positive results and suggested to the researchers ways in which the many problems raised by massive retrenchment can be overcome. (Author/MLF)