This story was really interesting to me - my first reaction was “this seems extreme just to prop up the local parish school”, but the concern around consistent sacrament preparation probably is a legitimate concern for the diocese. The policy, however, is not targeted at that.

There are dioceses that rent space to all kinds of tenants, including ones that could cause scandal to the faithful. This just feels like a really big stick for a tiny problem, unless there’s a root cause that was not identified in the story; can’t wait for additional reporting!