OCTOBER 7, 2024 www.cityofpaloalto.org
MEMORANDUM OF
UNDERSTANDING
City of Palo Alto and PAUSD
4000 Middlefield Rd.
"Cubberley site"
2 • City to purchase 7 acres for $65.5 million
• Based on a valuation of $60.65 million escalated by 2.6% per year over 3 years for purchase in 2027
• Concept plans for a community center and the District’s planned use of sale proceeds for improvements to Palo Alto schools to be completed by 2026 • Execute a 5-year lease:
• Rent of $2.0 million/year to $2.5 million/year depending on the District’s use of its property at the site
• City responsible for maintenance for both leased and common areas • District to credit City $1 million in rent for past maintenance costs • Sale contingent on voter approval of a bond measure in November 2026 MEMORANDUM OF UNDERSTANDING – KEY TERMS
3 PROPOSED PURCHASE AREA (ORANGE)
4 Authorize the City Manager to execute a Memorandum of Understanding with Palo Alto Unified School District for the purchase and lease of land at 4000 Middlefield Road, informally known as the Cubberley site, and direct staff to proceed with next steps including but not limited to:
• Resumption of a compressed master planning for the Cubberley site including CEQA analysis
• Development of formal agreements including a new lease agreement and a purchase and sale agreement
• Preparation for a November 2026 ballot measure
STAFF RECOMMENDATION
KRISTEN O’KANE
Community Services Director
Kristen.O’[email protected]
650-463-4908