CITY MANAGER'S OFFICE
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3120
CUPERTINO.GOV
CITY COUNCIL STAFF REPORT
Meeting: October 6, 2026
Subject
Approval of Exchange Agreement for the Finch Property at a Negotiated Purchase Price of $11.8 Million
Recommended Action
1. Adopt Resolution 26-XXX to approve the Exchange Agreement between the City of Cupertino (“City”) and the Cupertino Union School District (“CUSD”) for the acquisition of the Finch Property (“Property”) at a negotiated purchase price of $11.8 million from the Parkland Dedication Fund authorizing the City Manager to execute the Exchange Agreement and related documents necessary to complete the acquisition;
2. Find that the acquisition is exempt from the California Environmental Quality Act (“CEQA”).
Background
The Finch Property is an approximately 1.5-acre vacant parcel currently owned by the Cupertino Union School District (“CUSD”). The Property is adjacent to Sedgwick Elementary School and is located in the eastern portion of the City in the Rancho Rinconada neighborhood.
On July 1, 2025, the City Council appointed the City Manager and Interim City Attorney as negotiators to negotiate a potential acquisition of the Finch Property for purposes of creating a new City park in a neighborhood that is currently underserved by parkland.
Since that time, City representatives and CUSD have negotiated the terms of a potential acquisition. The parties have reached agreement on the material terms of the transaction and have negotiated a purchase price of $11.8 million for the Property.
The proposed acquisition would provide the City with approximately 1.5 acres of property for potential future park purposes. Any future development, programming, or use of the Property as a park would be considered through a separate planning and community engagement process and would be subject to any applicable environmental review.
Reasons for Recommendation and Available Options
City Council previously directed the City Manager and Interim City Attorney to negotiate a potential acquisition of the Finch Property from CUSD.
The City and CUSD have completed negotiations and reached agreement on the terms of the proposed Exchange Agreement, including a negotiated purchase price of $11.8 million.
Approval of the Exchange Agreement would allow the City to acquire the approximately 1.5-acre Property for potential future park purposes in an area of the City identified as underserved by parkland.
The proposed acquisition would preserve the City's ability to plan for the future use of the Property through a separate planning and community engagement process.
In addition, during the negotiations CUSD advised the City's negotiators that it does not see a need for SROs at its schools and would not expect or request City funding for SROs. As a result, City Council may elect to reduce one SRO coverage for CUSD schools from the law enforcement contract that the City has with the County of Santa Clara, resulting in estimated ongoing annual savings of approximately $336,731.
This reduction in ongoing operating costs is separate from the negotiated purchase price for the Finch Property but is relevant to the City's consideration of the overall fiscal implications associated with the proposed transaction.
Alternative Options
The City Council may decline to approve the Exchange Agreement. Council may also direct staff to return with additional information or revised terms.
Declining to approve the agreement would mean the City would not proceed with the acquisition under the negotiated terms currently presented to Council.
Sustainability Impact
No sustainability impact.
Fiscal Impact
The purchase price for the Finch Property is $11.8 million, plus customary closing costs, including title and escrow fees, due diligence costs, and any other related transactional expenses. Funding would come from the Parkland Dedication Fund. At the time of this report the fund balance is approximately $15.6 million. Upon approval, staff will process the necessary budget allocation in the amount of $11.8 million plus closing costs.
City Work Program (CWP) Item/Description
None
Council Goal:
Quality of Life
TBD Item:
No
California Environmental Quality Act
The proposed acquisition is categorically exempt from CEQA pursuant to CEQA Guidelines Section 15316 and 14 CCR Section 15316, because it consists of the acquisition of land in a natural condition in order to establish a park and no management plan for the park has been prepared.
The proposed acquisition is also categorically exempt from CEQA pursuant to CEQA Guidelines Section 15325 and 14 CCR Section 15325, because the project consists of the acquisition of interests in land in order to preserve open space or lands for park purposes.
The proposed acquisition is also categorically exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) and 14 CCR Section 15061(b)(3), because it can be seen with certainty that there is no possibility that the acquisition of the Property, as proposed, may have a significant effect on the environment.
The City is not approving a development project at this time. Any future development or use of the Property will be subject to separate review and environmental analysis, as applicable. _____________________________________
Prepared by: Kirsten Squarcia, Deputy City Manager
Reviewed by: Floy Andrews, Interim City Attorney
Approved for Submission by: Tina Kapoor, City Manager
Attachments:
A – Draft Exchange Agreement
B – Draft Resolution