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HomeMy WebLinkAboutStaff Report 2308-194913.Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project. Public Comments Presentation City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Community Services Meeting Date: October 16, 2023 Report #:2308-1949 TITLE Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project. RECOMMENDATION Staff recommends that Council approve development of a proposal for a 55-year ground lease for improvement and community use of the Cubberley campus to be submitted to Palo Alto Unified School District (PAUSD), in conjunction with the Cubberley Ad Hoc Committee. Upon finalization of a proposal, staff will agendize an open Council session to review proposal specifics and next steps. Alternatively, Council may direct staff to develop a proposal based on a different structure. EXECUTIVE SUMMARY On March 13, 2023, the PAUSD Board of Education provided a letter to the Palo Alto City Council inviting the City to submit one or more proposals to transfer a portion of PAUSD-owned land at Cubberley to the City (Attachment A). The Council discussed the invitation at a Study Session on May 15, 2023. A closed session discussion was scheduled for August 2023; however, the Council chose to schedule an open discussion in lieu of the closed session. Staff have reviewed the methods by which the City could acquire land from PAUSD at Cubberley and recommends the Council direct staff to develop a proposal for a 55-year ground lease of the Cubberley site to expedite improvement of the site for community use and benefit. Staff would engage with the Cubberley Ad Hoc Committee to develop a proposal and then return to the Council for further direction and next steps. While there are other means by which the City could acquire land at Cubberley, e.g., land trade or purchase, a ground lease appears to provide the greatest benefit to the City because it allows the City to proceed quickly to assume primary responsibility to improve areas of the Cubberley site without first negotiating new ownership boundaries and land purchase. A ground lease is the most expedient way to begin the public planning process for improvements of greatest interest to the community. Additionally, a ground lease would not require the City to relinquish ownership of other properties within the City that provide community value. BACKGROUND In March 2023, the PAUSD Board of Education provided a letter (Attachment A) to the Palo Alto City Council inviting the City to submit one or more proposals to transfer a portion of PAUSD- owned land at Cubberley to the City. The letter states the Board of Education is “…open to a deal that transfers ownership or development control over at least 7 additional acres to the City…” so the School District can retain 20 acres for development of a future school. However, the letter also states that they would be open to a proposal that transfers more than 7 acres to the City and expressed flexibility around the exact location of the City’s acquired acreage. The School District would like to reserve their acreage for a future school site as they determine necessary. Following receipt of the March 2023 letter, the City Council held a Study Session on May 15, 2023 to provide feedback to staff and discuss next steps. The study session staff report1 and presentation2 provide detailed history and background information on the Cubberley site. A full history of the Cubberley site and summary of previous master planning efforts can be found in Attachment B. Staff suggested the following questions be discussed: 1. What is the process the City Council would like to use for discussions and communications with the School District? 2. What would the City Council like to include in a proposal to the School District? 3. Would the City Council like to designate a committee to work with staff on proposal development? Much of the discussion was focused on the order in which a plan for Cubberley should be developed. For example, should a development plan drive how much land the City should acquire, or should the land transaction precede land planning efforts? There was some discussion on Cubberley finances, which was presented by staff with the caveat that the financials were preliminary since Cubberley expenses are included in several department budgets and cost centers and are difficult to track. Following the study session, staff refined the budget numbers, and a summary is included in the Fiscal/Resource Impact section of this report. One outcome of the Study Session was the assignment of an Ad Hoc to work with staff on proposal development consisting of Mayor Kou, and Councilmembers Lythcott-Haims and Burt. A Closed Session of the City Council was scheduled for August 21, 2023; however, the Council unanimously passed a motion to not go into Closed Session and directed staff to bring the item 1 City Council, May 15, 2023, Agenda Item # 2, SR#2304-1339, https://cityofpaloalto.primegov.com/Portal/viewer?id=1610&type=2 2 City Council, May 15, 2023, Agenda Item #2, https://cityofpaloalto.primegov.com/Portal/viewer?id=1635&type=2 back to Council in an open session. Council members said that an open session should be sequenced first to allow for greater transparency. Since the Closed Session can only include discussions on price and terms of payment, the Council first wanted to review the different real estate methods to acquire land and discuss how much land to acquire before going into a Closed Session. ANALYSIS Of the 35-acre Cubberley site, currently the City owns eight acres and PAUSD owns 27 acres. The City leases a portion of the 27 acres including the athletic fields, gyms, pavilion, theater, and several smaller rooms. The City currently pays PAUSD $2.5 million per year to lease the Cubberley space and allocates $1.8 million per year for facility capital improvements. In addition, the City’s budgeted costs to operate Cubberley in FY 2024 is $2.6 million, which includes costs incurred by Community Services, Public Works, and Real Estate for day-to-day operations, customer service, upkeep, and tenant/renter relations. Land transfer options There are several methods by which the City could acquire land from PAUSD at Cubberley – purchase, land trade, or ground lease. Purchase – A direct purchase would transfer ownership of a portion of the Cubberley property from PAUSD to the City, also known as fee title acquisition. A land acquisition would give the City full control of the acquired property and allow the City to use the property in any manner consistent with federal, state, and local laws and ordinances. A purchase agreement would require a formal land appraisal, a public discussion and Council decision on the amount of land to purchase, and the portion of the Cubberley property to acquire (within the Cubberley site). A funding source would need to be identified. Benefits: City has full control of the acquired property indefinitely. Reduced costs associated with leasing PAUSD facilities. Constraints: Aging utilities infrastructure would be difficult to replace if the City only has control of a portion of the property. The public process to determine the amount and location of land to acquire within the Cubberley site could be lengthy and would likely occur before the actual purchase took place. Securing a funding source could result in delays to site planning and improvement. Land trade – A land trade, or swap, would transfer ownership of a portion of the Cubberley property from PAUSD to the City in exchange for an equivalent property owned by the City. Ownership of the traded property would then be transferred from the City to PAUSD. A land trade would require a lengthy public discussion and a Council and Board of Education decision on the amount of acreage at Cubberley that would be acquired. Both parties would need to agree on the city-owned land to be traded. Additionally, the parties would need to agree on whether an even swap would be based on acreage or the appraised value of the properties. A land swap was how the City previously acquired approximately 8 acres at Cubberley. If the property to be traded is dedicated parkland, it must be undedicated prior to ownership transfer to PAUSD. Article VIII of the City Charter requires that any land dedicated for the use of park, playground, recreation, or conservation purposes cannot be sold or otherwise disposed of without a majority vote of the electorate. The Council could decide to put a measure on an upcoming ballot, such as the General Election in November 2024. Benefits: City has full control of the acquired property indefinitely. Reduced costs associated with leasing PAUSD facilities. A one-to-one land exchange would have no direct land acquisition costs. Constraints: Aging utilities infrastructure would be difficult to replace if the City only has control of a portion of the property. The public process to determine the amount and location of land to acquire within the Cubberley site and the land to trade could be lengthy and would likely occur before the actual land swap could go forward. Time and expense to place an item on a general or a special election ballot if the traded land is dedicated parkland. Loss of dedicated parkland if the traded land is parkland. Ground lease – A ground lease is typically a long-term lease agreement of unimproved land or previously developed property where the tenant constructs new improvements. Lease terms customarily run from 30 to 100 years or longer. The tenant typically holds ownership of improvements during the ground lease term and is obligated to pay all expenses attributable to the property. Commercial ground lease pricing commonly runs 5-10% of the value of the land. Long-term ground leases are a very common means to enable capital investment in a property while the property owner retains title to the property. As examples, this approach has been used for the Avenidas building, as well as Stanford Shopping Center, Stanford Research Park, and Google development in Mountain View. Under this arrangement, as the end of the term approaches, the parties engage in negotiations over extension of the lease, additional investments, or return of some or all of the property to the owner. Benefits: City controls land and can develop the land it leases without the purchase costs. The public process to plan the future of the site can begin as soon as a lease is executed. Replacement or upgrades to utility infrastructure can be considered for the entire site. Constraints: City would need to relinquish a portion or all of the leased land when PAUSD determines it has a need for an additional school or other purpose in the future. Key Cubberley Site Considerations While the PAUSD letter suggests interest in releasing more of the site, the determination of which portion(s) of the site to pursue in advance of another master planning effort would be very challenging. This is due to several factors: •Existing buildings are served by an interconnected system of utilities (power, water, sewer, storm drainage), much of which is deteriorated beyond its intended lifespan. Improvement of major systems should include all buildings intended for near-term use; alternatively, investment in selected buildings would require significant coordination to ensure no negative effect on buildings retained by PAUSD. •All building uses are dependent on parking and access through the site, which are primarily located on PAUSD property. This makes redevelopment of a City portion likely dependent on continued availability and use of PAUSD property. •In order to redevelop a new community center at Cubberley, a significant planning effort is required to determine which existing buildings should be replaced, as well as address parking, access, and sequencing. Such planning would need to be undertaken before an informed decision could be made on where to draw new boundaries between City and PAUSD- controlled properties. •There are significant unknowns affecting the City’s timing and ability to plan and implement improvement of the site, including decision-making, financing, and transitioning current uses. Given this, the City assuming primary responsibility for financial risks associated with such unknowns would relieve PAUSD from participating in these costs. These considerations lead to the conclusion that the best strategic path forward is for the City to pursue a long-term ground lease to gain primary responsibility for management of the property. Staff recommended proposal Staff recommends the City propose a ground lease for the maximum acreage PAUSD is willing to lease for a term of 55 years, while supporting PAUSD use of areas it determines it needs in the near term through a lease-back arrangement. This ground lease amount may be less than PAUSD’s 27 acres due to an approximately 1-acre area that provides access to the Greendell school site and any area with buildings that are considered part of the Greendell school campus, as well as other PAUSD needs over the next few years such as for campus renovations at other schools. Attachment C provides a visual depiction of responsibilities for managing the buildings, fields, and open areas at Cubberley under the current lease and with a long-term ground lease. It is assumed that PAUSD will want to lease-back buildings and parking lot areas it currently occupies for educational purposes, though these uses may be relatively short term. A ground lease allows the City to proceed quickly to assume primary responsibility to improve areas of the Cubberley site without first negotiating new ownership boundaries and land purchase, while also enabling PAUSD to retain its stated interest in retaining ownership. A ground lease is the most expedient way to begin the public planning process for improvements of greatest interest to the community. Additionally, a ground lease would not require the City to relinquish ownership of other properties within the City that provide community value. A ground lease would not preclude a subsequent land trade; a land trade could be pursued after a ground lease is agreed upon or independently. A ground lease could include terms to define how a land trade would affect the lease, such as simply reducing the amount of land leased. Conversely, a land trade alone would not be sufficient to enable the City to proceed with site planning independent of PAUSD, given the key site considerations noted above. FISCAL/RESOURCE IMPACT Staff recommends that should the City Council wish to proceed with the long-term ground lease approach, staff will work with the Cubberley Ad Hoc to develop a proposal and return to Council in an open session for review and discussion. A closed session could be scheduled as an intermediate or subsequent step to discuss the price and terms of payment. Alternatively, Council could choose to discuss proposed financial terms in open session. It should be noted that compensation to PAUSD for lease payments will not be available for investment in facilities nor programming at the site. To provide a context for this discussion, staff has prepared the following summary of Cubberley financial considerations. Cubberley Financials The table below contains information about the City funds budgeted for Cubberley in the current FY 2024 Fiscal Year. FY 2024 Adopted Budget $ in Thousands General Fund - Ops Cubberley Infrastructure Fund - Ops Cubberley Infrastructure Fund - Capital Total Revenue Transfer from General Fund $1,864 $1,864 PAUSD Reimbursement $1,553 $1,553 Rental Income (short & long-term tenants)$2,722 $2,722 Revenue Total $2,722 $- $3,417 $6,139 Expense Salaries & Benefits $1,427 $260 $47 $1,734 Contract Services $40 $4,866 $4,906 Other Expense $38 $39 $77 Utilities (& allocated charges)$788 $788 Expense Subtotal $2,293 $299 $4,913 $7,505 Cubberley Lease $3,489 $3,489 Transfer to Cubberley Infrastructure Fund $1,864 $1,864 Expense Total $7,646 $299 $4,913 $12,858 The following chart tracks expenses for the Lease (which includes the Covenant Not to Develop until 2015), Cubberley Infrastructure Operations and Maintenance, Capital Improvement Projects, and Programming from 2004 to 2023 with grand totals for each year. This summary does not include revenue nor recognize the amount that PAUSD pays back to the City for maintenance3 or capital improvements; it is instead a summary of the City’s costs. Facility Assessment A Facility Condition Assessment was conducted for Cubberley Community Center in October 2022 by an independent firm to assess the current general physical condition of the developed portion of Cubberley. The area assessed encompasses 18.5 acres and consists of 22 buildings and over 500 parking spaces. The Facility Condition Assessment Report has not been finalized, but the 3 In the current lease agreement that commenced on July 1, 2020, PAUSD is responsible for maintenance and repair costs for buildings not leased to the City. Maintenance costs of common areas (parking lots and walkways) are shared between the City and PAUSD. draft findings describe Cubberley Community Center as being in poor condition, with over $45 million of maintenance work recommended over the next 10 years. The report compares the 10- year maintenance cost for each individual building to the building’s estimated replacement cost to develop what is called the Facility Condition Index. This analysis concludes that all but three of the Cubberley buildings have reached the end of their useful or serviceable lives. The resource impact involved with next steps is dependent on Council direction and the subsequent response by the School District. Cost and terms of payment could vary greatly depending on the method proposed to acquire land (purchase, land swap or ground lease). Staff expect that existing staffing will support this effort; however, timing is uncertain. STAKEHOLDER ENGAGEMENT Development of a long-term ground lease proposal and establishing an agreement with PAUSD should be considered foundational steps to reinitiating community engagement on opportunities to improve Cubberley for continued community use. ENVIRONMENTAL REVIEW Development The recommended action is not defined as a Project by the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A: Invitation for Cubberley Development Proposals Attachment B: History of Cubberley and Site Map Attachment C: Cubberley Property Responsibilities – Current and Proposed Ground Lease APPROVED BY: Kristen O'Kane, Community Services Director BOARD OF EDUCATION 25 Churchill Avenue Palo Alto, CA 94306 (650)329-3983 www.pausd.org 1 5 5 2 March 10, 2023 Palo Alto City Council 250 Hamilton Ave Palo Alto, CA 94301 Re: Invitation for Cubberley Development Proposals Dear Colleagues, What’s happening with Cubberley? Within the shared canon of our two governmental bodies, few questions evoke the same wearied engagement as this one. It’s a perennial topic at City/School Liaison Committee meetings (where it is given a light touch) and during election-season candidate forums (where the response is a touch heavy-handed). It has been the subject of meetings, workshops, listening sessions, town halls, and a master plan, all while the site has remained relatively unchanged since the school was closed on February 6, 1979. As the crumbling infrastructure belies the rich panoply of community- oriented programs that now inhabit the site, there is general agreement that Cubberley’s current use is unsustainable without significant capital improvements. We, the PAUSD Board of Education, shoulder some of the responsibility for the restrained pace of Cubberley’s redevelopment plan. But our caution is well-founded. As fiduciaries of the school district and trustees of students present and future, we have a fundamental duty to ensure we do not prejudice their interests by repeating the mistakes of our past selves—when we gave up land during a period of declining enrollment only to find ourselves in financial dire straits once the need for a new campus inevitably arose years later. Indeed, we found ourselves with a student-driven need for the site just this past year. Two of our elementary schools, Palo Verde and Hoover, are undergoing sitewide redevelopment. Accordingly, we designated a temporary school campus on the Cubberley site that will be in use through 2025 to serve those students for the duration of the construction. Nevertheless, we understand and fully support the City’s desire to move forward on development of a portion of the site to realize the vision of a fully-fledged Cubberley Community Center. The polished incarnation of this community gem will surely benefit our joint stakeholders and serve as a resource for the District’s students and families. Attachment A BOARD OF EDUCATION 25 Churchill Avenue Palo Alto, CA 94306 (650)329-3983 www.pausd.org 1 5 5 2 Our enthusiasm to support the City’s endeavor is caveated by two constraints: (1) we have a desire to retain ownership over roughly 20 of the 35 acres for future school use, the exact nature of which cannot be determined until the need for such a school arises; and (2) we cannot ask the voters to pass a school bond to fund a community center development, as such a bond may only be used to fund school construction as specifically enumerated in Education Code section 15100. Within those constraints lies a viable path forward. We are open to a deal that transfers ownership or development control over at least 7 additional acres to the City, leaving the City with a total of 15 or more acres to freely develop without the constraints placed upon us. (For reference, the current indoor space at Cubberley amounts to roughly 1.5 acres.) While our preference is to retain 20 acres for future school development, we will not automatically foreclose a deal that might include a transfer of more than 7 acres. Furthermore, nothing in such a deal would preclude the City from continuing to lease the remaining acreage from the District until such a time as the need arises for a new school. Moreover, we are flexible about the exact location of the City’s acreage based on the needs of the City’s planned development, subject only to a few limited considerations for the future school site like street access and neighborhood proximity. We are also open to the form of the deal—whether it’s a land swap, ground lease, or some other vehicle for land transfer. As your neighbor and partner, we therefore formally invite you to submit one or more land transfer proposals for our consideration within the parameters discussed above. We acknowledge that your process for community feedback and Council consensus may take time, but we eagerly await the next step in Cubberley’s future. Proposals can be submitted directly to Superintendent Don Austin for placement by the Board’s Agenda Setting Committee on the Board’s agenda. Respectfully, Shounak Dharap Board Trustee On behalf of the Palo Alto Unified School District Board of Education* *Duly authorized under Board Bylaw 9010 to communicate this letter on behalf of the Board. ATTACHMENT B CUBBERLEY HISTORY AND PLANNING EFFORTS History of Cubberley The 35-acre Cubberley site, located at 4000 Middlefield Road in Palo Alto, opened as a public high school in 1956 in the Palo Alto Unified School District (PAUSD or School District). Due to budget constraints resulting from the passage of Proposition 13 in 1978 coupled with declining enrollment, PAUSD closed many of its schools, including Ellen Fletcher Middle School (formerly Terman Middle School) and in 1979, Cubberley High School. During the 1980s, the City of Palo Alto (City) purchased or leased portions of the closed school sites for community uses. In 1981, the City entered into a Lease to Purchase Agreement with PAUSD to lease the Terman Site (both the school and park) for 20 years with the right to acquire the Terman Site in the year 2000. During that time, the City operated it as the Terman Community Center. The City also purchased Ventura Elementary in 1981, now the Ventura Community Center site. In 1989, the City and PAUSD entered into a lease agreement in which the City would provide annual revenue to PAUSD in exchange for: 1) a lease of the entire 35-acre Cubberley site; 2) a Covenant Not to Develop five other neighborhood school sites; and 3) an agreement that PAUSD provide space for extended day care at each of the eleven remaining elementary school sites. The initial lease term was 15 years beginning in 1990, and the lease amount was $2.7 million per year. The Covenant Not to Develop required the City to pay PAUSD an additional $970k per year to not sell or develop the school sites that had been closed. By the early 2000s PAUSD had a need to establish a third middle school and identified Terman School as the best location to open the middle school. As a result, the City exchanged its right to acquire the Terman School site for fee title of an equivalent area of Cubberley. The City retained Terman Park, and it is currently dedicated parkland. Following this transaction, the Cubberley lease was reduced to 27 acres in consideration of the 8 acres now owned by the City. The lease of 27 acres of Cubberley to the City was extended two more times, and in 2015 the Lease was amended by replacing the Covenant Not to Develop with a Cubberley Property Infrastructure Fund of the same amount for long neglected and ongoing maintenance1,2. At the time of the lease’s expiration in 2019, the annual lease amount was $5.1M and the Covenant Not to Develop was $1.86M. Although that lease expired, the City continues to transfer $1.86 million into the Infrastructure Fund for repairs and maintenance of buildings, facilities, and outdoor spaces. 1 City Council, February 24, 2014, Agenda Item #10, SR#4506, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2014/id-4506-cubberley.pdf 2 City Council, February 24, 2014, Meeting Minutes, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/00-archive/2014/02-24-14-ccm-final.pdf On July 1, 2020, in response to the City’s financial constraints due to the COVID-19 pandemic, a new 54-month lease (expires December 2024) began that reduced the amount of building space leased by the City at Cubberley. The leased premises consists of approximately 52,000 square feet of building space including the theater, pavilion, Gyms A and B, and some additional rooms; and about 16 acres of outdoor recreation area (athletic fields and track). The new lease amount is $2.5 million per year (for approximately 17 acres). The School District occupies or has tenants in rooms and buildings no longer leased by the City. Costs to maintain and repair common areas (walkways and parking lots) are shared between the City and PAUSD. Current Uses There are currently 23 tenants and 24 artists who lease space at Cubberley from the City, and dozens of individual groups who rent the theater, pavilion, classrooms, and athletic fields from the City. Combined, these groups provide the community with programs that support health and wellness, childcare, education, and visual and performing arts. The School District uses their spaces for educational purposes, staff offices and has leases with some tenants that were previously leasing space from the City. The parking lot in the southeast corner of the property houses several portable trailers which function as a temporary site for Hoover Elementary School during reconstruction of the school. Hoover Elementary School will be at Cubberley for two years beginning in the 2023-2024 academic year (unless construction timeframes shift). A site map of Cubberley property lines and uses is on the following page. Master Plans There have been several master planning efforts over the years to provide a roadmap and framework for redevelopment of the Cubberley site. In 1991, A Cubberley Conceptual Master Plan was completed with community input. In 2013, a Cubberley Community Advisory Committee, consisting of four subcommittees – School Needs, Community Needs, Facilities and Finance – issued their report after working together for nine months and developing recommendations for the future of the Cubberley site. In 2016, the City Manager and PAUSD Superintendent signed the Cubberley Compact to demonstrate a commitment to working together to develop a vision for Cubberley. A Cubberley community co-design process began in 2018. The year-long effort resulted in publication of a Cubberley Concept Plan3 in November 2019 developed with input from over 400 community participants. Since the completion of the 2019 Cubberley Concept Plan there has been limited movement on advancing a plan for Cubberley due to several reasons. These include a shift in priorities during the COVID-19 pandemic and the understanding that PAUSD would not be able to support the Concept Plan due to limitations in funding projects that are not strictly for education purposes. 3 Cubberley Concept Plan, 2019, https://www.pausd.org/about-us/committees-task- forces/archivedcommittees/cubberley-master-plan Cubberley Current Land Ownership and Facility Uses City leases the following from PAUSD: Fields, gyms, G5, G8, Pavilion, theatre, S Building, FOPAL (near track). Atachment C Current Cubberley Property Responsibilites City-owned and operated City lease from PAUSD PAUSD-owned and operated PAUSD portables for Hoover Elementary School Common areas Note: Shaded areas are for illustra�ve purposes only, and do not represent actual property lines. Atachment C Proposed Cubberley Property Responsibili�es Under Long-Term Ground Lease City-owned and operated City long-term ground lease from PAUSD PAUSD leases back from City PAUSD portables for Hoover Elementary School Note: Shaded areas are for illustra�ve purposes only, and do not represent actual property lines. From:Ken Horowitz To:Clerk, City; Council, City Subject:Menlo Park Community Campus City of Menlo Park Date:Monday, October 16, 2023 9:27:11 AM [Some people who received this message don't often get email from klhorowitz67@gmail.com. Learn why this is important at https://aka.ms/LearnAboutSenderIdentification ] CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. ________________________________ Please share with tonight’s meeting I will be attending the agenda discussion on Cubberley Thank you Ken Horowitz https://menlopark.gov/Government/Departments/Community-Development/Projects/Under-construction/Menlo- Park-Community-Campus Sent from my iPad From:Bryan Chan To:Council, City Cc:kou.pacc@gmail.com; Kou, Lydia; Burt, Patrick; Lauing, Ed; greg@gregtanaka.org; Tanaka, Greg; Stone, Greer; Lythcott-Haims, Julie Subject:New Master Plan for Cubberley Date:Sunday, October 15, 2023 8:49:45 PM Attachments:Cubberley Project - 2023.pdf Some people who received this message don't often get email from chan_bk@yahoo.com. Learn why this isimportant CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. Hello, I would like to encourage the City to engage the School District so that this property can be developed together using a unified plan such that we can avoid complex land swaps or other costly arrangements that would only lead to additional delays and a fragmented development. Instead, we need to come together on a cohesive plan that inspires all parties to work towards a common goal. Please find attached a proposal for the Cubberley complex. Thank you. Cubberley Project A new perspective Creating a new plan with purpose Inspire everyone to create something special at the Cubberley site for both the School district and City. Plan for the future needs of the school district and school age families Provide state-of-the-art facilities for both the School district and City Unlock new programming to address unmet needs for both the School district and City If City and School District can work together on a unified plan, we can avoid land swaps or other costly transactions which may further delay development What are the needs of the School district and City? School district Afterschool activities are suboptimal Need flexibility for uncertain plans Need a potential site for new school Continue to monetize property by generating rental income from programming Access to new facilities and programming may be a benefit offered to School district employees and teachers City Aging infrastructure limits programming and services Community center in high demand Aging athletic facilities around the city are limited and do not meet the needs of residents What can we do at Cubberley to address these issues? Needs of the School district and those of the City are not mutually exclusive New plan will be centered around the School district’s needs, yet also provide for the community A new concept is necessary to optimize the Cubberley site Focus on dual use facilities that will benefit both the School district and City Increasing utilization of the property will unlock enormous benefit for both the School district and community Need a new concept that is cohesive Flexible “quad” concept with four main buildings surround an outdoor courtyard with amphitheater Academic building Community center Two additional buildings for dual use facilities Plan is flexible and various configurations are possible Concept: Academic building Designed to meet the needs of afterschool academic programming Flexibility allows a site for a future school such as a high school Provide afterschool academic support and onsite tutoring Can be staffed by existing pool of substitute teachers Open floor plan Direct access to athletic facilities Secure access between the school facility and other buildings on site Dedicated gym/basketball courts for a potential future school Can be used for school administration or other programming before a school is needed Concept: Community center Designed to support much of the existing programming on site today Includes a dedicated Music & Arts Center Enables afterschool program to include music, dance and performance art lessons Provide affordable programing to residents Provide a progressive pathway to excellence in the Arts Direct access to dual-use athletic facilities Concept: Dual use programs to provide state-of-the-art programming (Aquatics) Indoor aquatic center Olympic sized pool for competitive swimming for school and community Indoor water park with 2-3 stories waterslides and lazy river Wading pool for toddlers, babies, new swimmers with interactive water features Will be an amazing site for birthday parties and events Indoor facilities allows for year round usage from morning till night Addresses a significant unmet need Did you know that there are currently 700+ kids in swimming in clubs in Palo Alto? Yet, there is not a single competitive facility designed to support this demand? Rinconada pool is aging and under utilized due to its outdoor location (too hot in the summer and too cold in the winter). JLS and Fletcher pools also under utilized. High demand for swimming lessons from novice to advanced swimmers is unmet in the City Concept: Dual use programs to provide state-of-the-art programming (Tennis) Tennis center State-of-the-art facility for existing students and future school 11 lighted courts, separated in banks to enhance programming Provide affordable high-level tennis programming from novice to national level players which is not current available Provide a facility to support recreational and tournament level players Address a significant unmet need Did you know that the City of Palo Alto is currently host to one of the most popular monthly USTA junior tournaments in Northern California at Cubberley? Hundreds of kids apply each month to participate, but due to the limitations of Cubberley, only 60 can be selected each month. City of Mountain View and Sunnyvale have award winning facilities that provide extensive services and host popular events such as Arthur Ashe Day inspiring the next generation Concept: Dual use programs to provide state-of-the-art programming (Gym) Double gymnasium Supports recreational and competitive basketball programming Supports recreational and competitive volleyball programming Weight training facility Secure separation between the two gyms in the event a future school is needed on site Benefits of dual use facilities at Cubberley Provides onsite, high quality afterschool activities Seamless integration between athletic programming and academics Students can study in the café or lounge or have onsite tutoring while waiting for their swimming or tennis clinic Safe environment for kids to study after their music or sports lessons Tennis Center and Indoor Aquatic Center will become new landmark facilities that Palo Alto will be known for and offer a new level of programming that is unmatched Support the highest level of coaching Students at the school and community members will benefit from top level coaches for swimming and tennis Why should the school district work and the City work together? New Cubberley complex will also serve as a state-of-the-art afterschool campus for PAUSD students Offer cohesive and coordinated programming in the Arts, Athletics, and Academics Existing afterschool activities are limited in space, quality and instruction A modern central campus can support higher quality programming Provides a “one-stop” shop for afterschool and/or summer programming Working together allows for a cohesive final product Benefits of a new afterschool facility High quality afterschool programming compliments existing high quality academic instruction at PAUSD Afterschool site is run as a cohesive program for kids enrolled Kids can sign up for one or more programs (arts, athletics, academics) Curriculums for each program should meet highest standards On site tutoring for kids available before and after their programs Relives burden of afterschool programming from individual schools Existing afterschool coaches are generally low-level instructors Afterschool facility solves issues related to shortened school schedules and minimum days Including transportation to and from schools allows parents to stay at work and simplify schedules, especially with kids in different schools Afterschool enrichment activities High quality athletics Tennis Swimming Volleyball Basketball High quality arts Music lessons (e.g., piano, violin, youth orchestra) Dance lessons (e.g., ballet, modern) Martial Arts Art classes Academics Afterschool language programming (e.g., Mandarin) Onsite tutoring Debate/Speech programs Mathematics New facility will enhance afterschool programming A state-of-the-art facility will augment and bolster afterschool and extracurricular activities for the school district Address significant demand for quality afterschool activities from K-12 Too few spots for too many students, signups filled within 1 minute of registration opening Existing afterschool activities are of questionable value Existing programs such as tennis are an afterthought, contracted out to low-end instructors No systematic path for child to advance Provide a real facility to train in For example, the tennis courts at JLS is an uneven blacktop, overgrown with weeds. Greene tennis courts are also just blacktops recycled from old basketball courts. Dedicated facility allows for high quality level athletic programming Tennis, swimming, volleyball, basketball New afterschool facility enables high quality programming Provide high quality afterschool activities Attract and support top-level instructors Existing afterschool coaches are generally low-level instructors Low teacher to student ratio For example, JLS afterschool tennis currently has 1 low-level coach for 24 students! Meanwhile, outside tennis programs in Mountain View or Sunnyvale have 1 experienced coach for 8 students. Step-by-step curriculum that allows for advancement Kids start at the recreational level and motivated students will have a step-by-step pathway to advanced to higher levels Existing programs are designed for the lowest level with no systematic curriculum Cubberley complex layout to be based on programming and exiting boundaries Layout based on existing property boundaries Programming to generally correspond with property boundaries Community center related services to be sited within the City boundary School resides on the School district’s property Dual use facilities reside on the School district’s property Layout is flexible and modular Buildout can be performed in stages following the master plan yielding a cohesive final product No need for land swaps between City and School District! Site Overview Property boundaries City School district Program distribution City School district Program connectors Program connectors •Tennis center (1) •Amphitheater (2) •Aquatic center •Park/Pedestrian paths (3) Master Plan Main Buildings •Academic Building •Community center •Indoor aquatic center •Tennis center •Modular design allows for flexibility and interchangeable layouts for the complex Cubberley Project Architectural Renderings of the campus, community center, academic building, and gym \ \ N\\\\X\\\ •Basement level: classrooms, offices, dining hall •First floor: classrooms, library, main hall •Second floor: classrooms, mezzanine Sample cross section of the academic building •Basement level: dedicated gym/basketball court for the school •First floor: basketball court, lockers, tennis proshop •Second floor: bleachers, gym, cafe Sample cross section of the sports complex From:Friends of Cubberley To:Council, City Subject:Cubberley Date:Sunday, October 15, 2023 6:05:52 PM [Some people who received this message don't often get email from friendsofcubberley94303@gmail.com. Learn why this is important at https://aka.ms/LearnAboutSenderIdentification ] CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. ________________________________ Hello City Council, I am unable to attend tomorrow night’s meeting because I’ll be rehearsing with my orchestra. As the chairperson of Friends of Cubberley, I wanted to share my thoughts with you all. Cubberley is a disgrace to our lovely and special city. After years YEARS of delays for many different reasons, there is an opportunity now to take a step in the right direction. Please do the right thing and support Palo Alto in moving forward with Cubberley’s redevelopment. Deborah Simon Chair, Friends of Cubberley From:herb To:Council, City; Clerk, City Subject:October 16, 2023 Council Meeting Item #13: Cubberley Date:Sunday, October 15, 2023 3:03:01 PM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. OCTOBER 16, 2023 CITY COUNCIL MEETING, AGENDA ITEM #13 PROPOSALS TO TRANSFER CUBBERLEY TO CITY OF PALO ALTO I urge you to reject the staff's alternate proposals foracquiring Cubberley and instead to direct staff to place on afuture agenda an item with a broader agenda item descriptionthat does not constrain the Council from making recommendationsto staff about Cubberley. The only choices in the agenda item description are to acquireCubberley when there are many other alternatives that wouldpermit the City and the School District to both approve amutually agreeable solution that would serve the needs of boththe City and the School District. For example, state law permits the School District to use itsbonds to build housing for both teachers and classified staffon its property, which would be a better solution for theCity's need for affordable housing than the City subsidizingprivate developers who claim they need excessively largeprojects that are justified by providing housing for teachersand other school employees. Perhaps a majority of the Council can set an example forwhoever prepares agenda item desciptions for City Councilmeetings that nobody should prevent the Council from exercisingits decision-making authority by arbitrarily preventing theCouncil from making decisions that are different from thosedesired by whoever prepared the agenda. Herb Borock CUBBERLEY- DIRECTION ON A PROPOSAL TO PAUSD OCTOBER 16, 2023 www.cityofpaloalto.org 2 STAFF RECOMMENDATION Direct staff to develop a proposal to lease the Cubberley site from the Palo Alto Unified School District for 55 years. City’s 8 acres 3 INVITATION FOR PROPOSALS Direction on responding to March PAUSD Letter titled, “Invitation for Cubberley Development Proposals” PAUSD Key Components within the Letter: PAUSD has a need to retain 20 acres for future school use (total acreage needed is negotiable) PAUSD is open to: o Transfer of at least 7 acres to the City o The exact location at Cubberley o Form of the deal (ground lease, land swap, etc.) 4 LAND TRANSFER OPTIONS PURCHASE LAND TRADE GROUND LEASE BENEFITS City has full control Lease costs reduced City has full control Lease costs reduced No acquisition costs City can develop land without purchase costs Planning can begin after lease executed Utility infrastructure CONSTRAINTS Utility infrastructure constraints Lengthy public process No funding source Utility infrastructure constraints Lengthiest public process Time and costs to undedicate / loss of parkland Relinquish land when PAUSD need arises 5 INTERCONNECTED SYSTEM 6 INTERCONNECTED SYSTEM 7 CURRENT TO GROUND LEASE 8 STAFF RECOMMENDATION Ground Lease 55-year term Full site less access area for Greendell Lease back buildings to PAUSD Considerations Interconnected utility systems can be improved for the full site Provides maximum area to plan for a new community space Relieves PAUSD of obligations to manage and maintain Cubberley 9 Lease $2.5M per year for lease term 2020-2024 $5.1M per year for prior lease in 2019, plus $700k for childcare sites Cubberley Infrastructure Fund $1.8M transferred from General Fund to Cubberley Infrastructure Fund to be used for investment in the Cubberley facilities for long neglected and ongoing maintenance (2015-present). Formerly was the "Covenant not to Develop" (1990-2014) CUBBERLEY TODAY 10 EXPENSES 11 STAFF RECOMMENDED MOTION Direct staff to develop a proposal for a 55-year ground lease of the portion of the Cubberley site owned by the Palo Alto Unified School District, work with the Cubberley Ad Hoc to develop the proposal, and return to Council in an Open Session. CITY OF PALO ALTO