As a result of declining enrollments and the associated need for budget reductions, many school districts are confronting the issue of school closure. This guidebook presents an alternative to closing schools, namely, the option of transforming them into community centers and addresses the issues involved in cooperative planning with the community for such a move. The first section discusses the challenges presented by school closure and provides guidelines for conducting a needs assessment and a study to determine other possible uses for the facility. The next section discusses the specific issues that arise in developing a community center: determining how to use the building, redefining the school district's role, operating a community center, community involvement, allocation of space, and expenses and revenue. The final section addresses legal and practical issues that arise in any decision of a school district to lease its space: finding tenants, negotiating leases, and creating a climate. The final section discusses long-term factors that will affect the success and evolution of the community center. (TE)