HomeMy WebLinkAboutStaff Report 1866City of Palo Alto (ID # 1866)
City Council Staff Report
Report Type:Meeting Date: 6/27/2011
June 27, 2011 Page 1 of 4
(ID # 1866)
Summary Title: Cubberley Community Center
Title: Direction on Submission of Letter of Interest to Foothill College Regarding
new Education Center at Cubberley Community Center
From:City Manager
Lead Department: City Manager
Recommendation
Staff recommends that Council direct staff to submit a Letter of Interest to
Foothill College to pursue discussions to locate a new Education Center on
the City owned 8 acres at the Cubberley Community Center.
Executive Summary
Foothill/DeAnza Community College District continues to express interest in
building an Education Center in Palo Alto. The City of Palo Alto owns eight
acres on the northern end of the Cubberley Community Center. The
balance of the site, 27 acres, is owned by Palo Alto Unified School District
and is leased back to the City.
Foothill will be completing it evaluation of various sites in and around Palo
Alto this summer and has asked the City to indicate its interest by early-
mid July. A non-binding letter of interest, at this initial stage,enables the
City to pursue exploratory discussions with Foothill that will inform a
subsequent public decision regarding the City’s eight acres.
Background
Foothill/DeAnza Community College District has issued a Request for
Offers as a part of the process for locating a new Education Center in Palo
Alto, Mountain View, or Sunnyvale. In their Request for Offers for a site
for an new Education Center, they describe the new Center as follows:
The new Education Center will provdie a state-of-the-art educational
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June 27, 2011 Page 2 of 4
(ID # 1866)
facility serving Silicon Valley through programs and partnerships that
seamlessly transition individuals from high school to community
college to the university and the workplace as well as offering a rich
array of lifelong learning opportunities.
While their Request for Offers established a June 20, 2011 submission
deadline for offers from private sector brokers, the Foothill Board has also
directed Foothill staff to explore possible sites within the City of Palo Alto
and the City of Sunnyvale. Staff’s understanding is that the city responses
are not due on June 20, 2011 but are expected soon after to be considered
by the Board later this summer. City offers may take a different form than
the response guidelines for private sector brokers. The eight acres the City
owns at Cubberley is the Palo Alto location that would be considered, if the
City responds.
Staff expects that we need to formally respond to Foothill by early-mid
July. If at all interested in the possibility of consideration, the City of Palo
Alto will need to provide a formal Letter of Interest to Foothill soon.
Foothill has informed the City that during July, Foothill staff will review all
submissions and then at their August Board meeting, the Foothill Board will
select a respondent to explore more in-depth discussions with and
negotiations potentially leading to an agreement “regarding conveyance or
sale” of the land for the new Education Center.
Action that will be needed by the City Council within the next few weeks is
whether or not to submit a Letter of Interest. If the Council decides it will
not submit a letter, that decision eliminates Palo Alto from consideration as
a location for a new Education Center and Foothill will locate in another
city. We can also expect a dramatic reduction in Foothill programs offered
at Cubberley as well as a significant reduction in lease payments to the
City.
If the City does submit a Letter of Interest, it is no guarantee that the City
of Palo Alto will be chosen at the August Foothill Board meeting as the
preferred location. And if we are selected, then in depth discussions and
negotiations will follow. As with any such discussions, there is no
guarentee that an agreement will be reached.
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June 27, 2011 Page 3 of 4
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If the City were ultimately considering sale of its eight acres, the Palo Alto
Unified School District (PAUSD) has the right of first refusal and may
purchase the City’s eight acres at the current market value. PAUSD must
exercise its option within 90 days of receiving notice from this City of its
intent to sell to another party. Because a Letter of Interest is non-binding
and merely initiates discussions, the PAUSD first right of refusal would not
be triggered. The City would seek as much support as possible from
PAUSD in these preliminary discussions knowing that it would ultimately be
able to exercise its option to purchase in the future.
Discussion
In order to keep the conversation going with Foothill and to have time for
our own Council and community discussion, staff recommends that the City
submit a Letter of Interest. If the Council wants to end the conversation
now, you will want to direct us to not respond to Foothill.
The City Manager has been talking to PAUSD as these Foothill timelines
unfolded this spring. PAUSD has been having their own discussions
regarding Foothill’s interest in the City’s eight acres and the details of their
proposal. Finally, if there is other information or discussion the Council
wants to have, we can continue this discussion as needed to your July 11,
2011 meeting.
There has been some misinformation and confusion about the potential
action the City might take at this Council Meeting on June 27. This Action
Item is not the Council decision to sell it’s eight acres at Cubberley. It is a
discussion and potential action on indicating its desire to enterr into
discussions and negotiations with Foothill about a possible sale or lease for
use as a new Education Center.
Attachments:
·a:Attachment A-Cubberley (PDF)
·b:Attachment B-Cubberley (PDF)
·c:Public Letters to Council-Cubberley-1 (PDF)
·d:Public Letters to Council -Cubberley-2 (PDF)
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June 27, 2011 Page 4 of 4
(ID # 1866)
Prepared By:Steve Emslie, Deputy City Manager
Department Head:James Keene, City Manager
City Manager Approval: ____________________________________
James Keene,City Manager
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