City of North Vancouver council wants to pressure the North Vancouver school board to get back into lease discussions with Lonsdale Creek Daycare Centre.

A tenant on school board property since 1974, the daycare, located at 240 W. 21st St., is now operating on a month-to-month rental basis as the school district considers whether or not to sell off the Lonsdale school annex site land for market housing.

Its previous lease with the school board ran out July 2007.

But councillors made it clear Monday that kicking out the daycare to sell off the land is an idea that might not fly with local government.

"I don't believe the public interest is served by removing this site from the daycare inventory," said Coun. Bob Fearnley. "It's quite clear we need more spaces. "I realize the school district is having some money problems and the funding situation with them is desperate, but we have a clear duty to consider what the best interests of this community are."

For the past 33 years the school board has been a great landlord, Carolyn Neilson, a Lonsdale Creek daycare board member, told council Monday.

But the insecurity of the current rental arrangement is jeopardizing the future of the daycare, she said.

The school board's lack of specific plans for the site has left the daycare and its families in limbo, said Neilson. The daycare provides all-day care to 40 children from infant to five years old.

"No news is good news," said Neilson. "But, they do want to sell the land at some point."

She said the parent volunteer daycare board has been looking for alternative, suitable locations in both the city and the District of North Vancouver but has so far been unable to find any that meet licensing requirements.

"Historically, emotionally, it's our flagship site," said Neilson. "We would love to stay there but if we can't stay there then we can't and we will pursue other options."

Coun. Craig Keating agreed with Fearnley the community needs more daycare not less. This daycare has worked extremely well for years, he added.

Those comments were echoed by Coun. Pam Bookham. "At some point it's not all about the needs of the school district," she said. "We need to have a very frank talk with school officials and see what we can do for the benefit of the whole community."

She said she prefers group daycare on school board land over single-family neighbourhoods.

Keating said he's hoping a workable solution can be found.

The city's director of community development, Richard White said he's confident a win-win solution can be found. "I think we can embark on this in the spirit of optimism," he said.

The Lonsdale Creek Daycare Centre Society also operates the Mahon Park Childcare and the Margaret Heights Childcare programs. Combined it serves some 130 families.

It has a waitlist of 500 names.