CubberleyCommunityAdvisoryCommittee (CCAC) June13,2012 RoomG4 (SeeattachedmapGreferredtoasGAR) 6:00PM

1. 2. 3. Welcome Selfintroductions(12minuteseach)pleaseprovide: name,background areaofinterestthatyourepresent youprior/presentinvolvementwithCubberley yourbigpicturegoalsforthefutureofCubberley CubberleyHistoryandBackground UtilityUserTaxElection covenantnottodevelop...whatmighthavehappened withoutit leasedevelopment 8acresacquisitionbytheCity OverviewofMissionandGuidingPrinciples cooperativeeffortbetweenPAUSDandCity flexibilityfortheCommittee Staffsupport...overviewofavailablestaffsupportandrole DiscussionofMeetingLogistics Regularmeetingschedule...howoftenwillCommittee andSubcommitteesmeet...where? Howwillpublicbeinformedofmeetingsandtopicsof interest Tentativetimeline(allowanceforinterruptionsfrom vacationandholidayperiodsandforpreparingfinal report) WhatwillbetheinterimreportingtoCouncil,Trustees Subcommittees...howmany,whichones,hownarrow orbroad,howwillappointmentsbemade 7. Adjournment schedulenextmeeting actionitemsbeforenextmeeting actionitemsatnextmeeting

4. 5. 6.

CubberleyCommunityAdvisoryPanel
Group
Neighborhoods FairMeadow WalnutGrove GreenMeadow Greendell CharlestonGardens Midtown PAN CommercialRetail CharlestonPlazaTenant VillageProperties PTA's FairmeadowElementary JLSMiddleSchool GunnHighSchool PaloAltoHighSchool CubberleyTenants ChildCare Artist NonProfitCardiacTherapy FOPAL Community/Arts&Services ParkandRecCommission PT&C OtherCommunityMembers

FirstName
Tom Tom Lanie Michael Jean Sheri Ken

LastName
Vician Crystal Wheeler Bein Wilcox Furman Allen

Damian Claire John Tracy Susan

Cono Kirner Markevitch Stevens Bailey

AtLarge Acterra PABAC CitySchoolTrafficSafety RecreationandSportsLeague SoftBall Other

Rachel Lessa Jerry Jim Susie Jennifer Greg Diane Mandy Brian Bern Pam Anne William Penny Mike

Samoff Bouchard August Schmidt Thom Hetterly Tanaka Reklis Lowell Carilli Beecham Radin Wilson Robinson Ellson Cobb

City of Palo Alto

Cubberley Community Center Background Information September 1, 2011

Table of Contents 1. June 16, 2010 Cubberley Site Discussion Power Point Presentation 2. June 27, 2011 Cubberley Site Discussion Power Point Presentation 3. Foothill-De Anza College Letter of Interest 4. Cubberley Community Center Lease and Covenant Not To Develop

June 16, 2010 Cubberley Site Discussion Power Point Presentation

CUBBERLEYSITE DISCUSSION
June16,2010
1

CITY/PAUSD SchoolSiteChronology

CubberleySchoolSiteBuilt Cubberleysiteclosedduetodecliningenrollment PAUSDleasessitetovarioustenants,includingFoothillCollege CityacquiresTermanSchoolsitethrough 20yrleasetopurchaseagreement CityentersintointerimleaseforJordanSchool CityentersintoCovenantnottoDevelop andLeaseofCubberleySchool PAUSDrequeststopurchasebackremainingTermanSchoolSite fromCity FourPartyMOUapprovedbyCouncilforTerman (includingswapofCubberley/Terman7.93acres) FOOTHILLOFFERTOPURCHASE: Foothill/DeAnza: 1st Request 2nd Request letterofintent

1955 1979 1981 1988 1989 1999 2001

2007 11/3/09
2

Charleston Shopping Center

Charleston Terrace Neighborhood

8 Acres

Green Meadow Neighborhood

CITY/PAUSD LeaseHistory
Terman Middle School
Jordan Middle School Cubberley High School 1981- Leased by City with Option to Purchase 1988- Interim Lease by City 1989- City Leased all 35 Acres from PAUSD 2001- City Swaps Terman for Ownership of 8 Acres at Cubberley

Owned Cubberley 8 High School Acres 27 Acres Leased Cubb Leased

CubberleyStatistics

35TotalAcres 27AcresSchoolDistrict 8 AcresCity 175,540sq.ft.Building 94,402SchoolDistrict 76,138City 750ParkingSpaces 620 SchoolDistrict 130 City
5

CommunityGroupsandTenants Notincludinghourlyrenters

Foothill Artist Studios (23)

L. Anderson, L. Bouchard, U. Delarios, K. Edwards, M. Fletcher, P. Foley, L. Gass, M. Gavish, B. Gunther, P. Hannawy, A. Hibbs, I. Infante, S. Ingle, M. Lettieri, S. Kiser, M. Lobo, A. McMillan, J. Nelson-Gal, M. Paulker, N. Raggio, C. Sullivan, N. White, C. Velazquez

Dance Studios (3)

Dance Action, Dance Connection, Zohar

Schools (2)

Acme Education, Palo Alto Preparatory

Childcare (2)

Childrens Preschool Center, Good Neighbor Montessori

Nonprofit Community Organizations (4)

Hua Kuang Reading Room, Adolescent Counseling Services, Wildlife Rescue, Friends of the Palo Alto Library

LeaseTermsandOptions
15Years(19892004) 10Years(20042014)* 5Years(20142019) 5Years(20192024)

InitialTerm 1st Option 2nd Option 3rd Option

*NoticetoExtendduetoDistrictby 12/31/2013
7

City Financial Constraints

Multi-year budget gaps Restricted revenue growth Challenge on city raising new revenues (Business License tax ballot measure

defeated in 2009)

Rising expenditures Significant infrastructure funding deficit

Cubberley Capital Improvement and Investment Requirements

FY 1996-2009 $6,750,000

Minimum Maintenance: FY 2010 2015

$8,000,000

(Since 1989, City has paid $113 million in Lease & Covenant payments)

June 27, 2011 Cubberley Site Discussion Power Point Presentation

CUBBERLEYSITE DISCUSSION
June27,2011
1

Charleston Shopping Center

Charleston Terrace Neighborhood

8 Acres

Green Meadow Neighborhood

CITY/PAUSD SchoolSiteChronology

CubberleySchoolSiteBuilt CubberleysiteclosedleasedincludingFHDA CityacquiresTermanSchool(20yrleasetopurchase) CovenantnottoDevelopandCubberleylease PAUSDrequeststopurchaseTermanfromCity CouncilApprovesCubberleyswap(7.93acres) FoothillOffertoPurchase 1st Request 2nd Request RequestforOffers

1955 1979 1981 1989 1999 2001

2007 2009 2011

3

CITY/PAUSD LeaseHistory
Terman Middle School
Jordan Middle School Cubberley High School 1981- Leased by City with Option to Purchase 1988- Interim Lease by City 1989- City Leased all 35 Acres from PAUSD 2001- City Swaps Terman for Ownership of 8 Acres at Cubberley

Owned Cubberley 8 High School Acres 27 Acres Leased Cubb Leased

TENANTS AND USER GROUPS

CITY OWNED 8 ACRES - TENANTS

FOPAL K6, K7 Dance Connection K5 Good Neighbor Montessori K4, K3 Acme Education Center L1 Foothill D5, D6, D7 Foothill C Artists E Foothill P Chinese Reading H4 Dance Connection L5 Zohar Dance L4

Friends of the Library LIB

Foothill J

Dance Vision L3

Foothill D3 Artists F California Law Revision D1, D2 Artists U

Palo Alto Prep. H2, H3

Childrens Preschool T1

Wildlife V

Total Annual Rental Revenue ( Foothill $933K) $423,402.00

FOOTHILL SQUARE FOOTAGE USE

21,170 SQ.FT./PAUSD OWNED

18,493 SQ.FT/CITY OWNED

CubberleyStatistics

35TotalAcres 27AcresPAUSD 8 AcresCity 175,540sq.ft.Building 94,402(FHoccupies21,170)27ac 76,138(FHoccupies18,493)8ac 750ParkingSpaces 620 SchoolDistrict 130 City
8

CommunityGroupsandTenants Notincludinghourlyrenters

Foothill Artist Studios (22)

L. Anderson, L. Bouchard, U. Delarios, K. Edwards, M. Fletcher, P. Foley, L. Gass, M. Gavish, B. Gunther, P. Hannawy, A. Hibbs, I. Infante, S. Ingle, M. Lettieri, S. Kiser, A. McMillan, J. Nelson-Gal, M. Paulker, N. Raggio, C. Sullivan, N. White, C. Velazquez

Dance Studios (3)

Dance Action, Dance Connection, Zohar

Schools (2)
Acme Education, Palo Alto Preparatory

Childcare (2)
Childrens Preschool Center, Good Neighbor Montessori

Nonprofit Community Organizations (4)

Hua Kuang Reading Room, Wildlife Rescue, Friends of the Palo Alto Library
9

Cubberley Tenants
USE
Foothill

SQ. FT
39,672

RENT/SQ
$1.96

RENT ANNUAL
$933 K

Non Profit
FOPAL Hua Kuang PA Prep Wildlife Rescue Preschool Dance Visions Zohar 1,700 672 2,496 1,565 8,772 3,130 3,740 $0.65 $1.11 $1.79 0 $0.24 $1.11 $1.16 $13K $8,900 $54K 0 $26K $41K $52K

10

Cubberley Tenants (cont)

USE For Profit
ACME Ed. Cal Law Rev. Dance Connection Montessori Artists 3,910 800 3,060 3,010 12,395 $1.72 $2.08 $1.69 $1.78 PA Resident $0.67 Non Res $0.72 $81K $20K $62K $64K $94K

SQ. FT

RENT/SQ

RENT ANNUAL

11

Revenue Summary
Foothill- DeAnza Property Rental (Artists/ Non Profits, etc) Hourly Rental (Events, etc) City Office Rental Total Revenue $0.93M $0.52M ($0.42M from Citys 8ac excluding FH) $1.02M $0.07M $2.54M

12

Expense Summary
Lease Management and Maintenance Non Maintenance Operating Expenses Total City Annual Expenses $0.44M

$1.77M

$2.21M

13

Cubberley Capital Improvements and Annual Maintenance

Planned CIPs and Deferred Maintenance $10,200,000 $6,500,000 $16,700,000 $332,000

2012-2016 2017-2036 Total Annual Routine Maintenance

14

LeaseTermsandOptions
15Years(19892004) 10Years(20042014)* 5Years(20142019) 5Years(20192024)

InitialTerm 1st Option 2nd Option 3rd Option

*NoticetoExtendduetoDistrictby 12/31/2013
15

2011 Projected Payments to PAUSD

Cubberley Lease Covenant Child Care Sites Utilities Total $4.48M $1.73M $0.60M $0.52M $7.33M

16

Key Issues

Sell or Lease? Maintain maximum flexibility Relocation Issues Parkingon-site Phase 1/shared Phase 2 Foothill as a service provider and synergy with other educational and community services Loss in Foothill revenue and substantial infrastructure obligations Status of community uses if Lease is not extended Foothill Schedule including construction Zoningagreement to City land use oversight

17

Questions/ Comments

18

Foothill-De Anza College Letter of Interest

Cubberley Community Center Lease and Covenant Not To Develop