City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: October 7, 2024
Report #:2409-3500
TITLE
Authorize Execution of a Memorandum of Understanding with the Palo Alto Unified School District for the Purchase and Lease of Land at 4000 Middlefield Road, Informally Known as the Cubberley Site; CEQA Status– Not a Project
RECOMMENDATION
Staff recommends the City Council authorize the City Manager to execute a Memorandum of Understanding with the Palo Alto Unified School District (PAUSD or 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 master planning for the Cubberley site and undertaking the development of formal agreements including a new lease agreement and a purchase and sale agreement.
EXECUTIVE SUMMARY
City and PAUSD officials have successfully concluded negotiations with a joint plan that seeks to advance both school improvements and a vibrant community center at Cubberley for all Palo Alto residents. Adoption of staff’s recommendations contained in this report initiates the steps necessary for the purchase and lease of Cubberley, master planning and site development to accomplish the goals outlined by the City Council on behalf of the Palo Alto community.
Adoption of this Council item endorses key terms for the City of Palo Alto and Palo Alto Unified School District (District) to pursue the redevelopment and improvement of Cubberley and District schools and facilities, resulting in the purchase of seven (7) acres of land ($65.5 million), development of a community center, and improvement of schools through a ballot measure before voters in November 2026.
In the interim, the City will enter into a new five-year lease continuing current use of the property, including the playing fields and parking lots. The City will pay the District $2 million a year as long as the District uses a portion of the property, and $2.5 million a year when the District is no longer
using the property. The City will assume responsibility for maintenance and associated costs for all areas not used by the District.
This work reflects and acknowledges the dedication of many over the years to mark this milestone, demonstrating both City and School District alignment on the future of the Cubberley site. It also supports the Council’s 2024 Priority of Community Health, Safety, Wellness and Belonging and responds to community feedback requesting a plan for the future of Cubberley.
BACKGROUND
The 35-acre Cubberley site, located at 4000 Middlefield Road in Palo Alto, operated as a public high school from 1956 - 1979 – Cubberley High School. Beginning in the late 1980’s, the City began leasing portions of the facilities at the site and today, the City operates Cubberley as a community center, using some of the space for classes and activities in arts, culture and athletics, and sub-leasing additional space at City-subsidized rates to various non-profit and community- serving groups. The current lease agreement expires December 2024.
Today, the City owns eight (8) acres of the 35-acre site. PAUSD owns the remaining 27 acres, most of which are leased to the City. There are currently 23 tenants and 24 artists leasing space at Cubberley from the City, and dozens of groups renting 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 District uses space for educational purposes and staff offices and has leases with some third-party tenants. The parking lot in the southeast corner of the property houses portable trailers as a temporary site for the Hoover Elementary School during construction at Hoover.
ANALYSIS
In 2023, the PAUSD Board initiated discussions with a letter inviting the City to make an offer to purchase additional acres at Cubberley. Both parties proceeded by creating Ad Hoc committees.
The City’s Ad Hoc committee included Council Members Julie Lythcott-Haims (Chair), Pat Burt and Lydia Kou. Their counterparts from the PAUSD Board were Trustees Jennifer DiBrienza (Chair) and Shounak Dharap. The Ad Hoc committees met jointly over the course of 10 months including once with a mediator before agreeing on terms.
Both the City Council and District Board met separately in closed sessions in late September in advance of considering the recommended Memorandum of Understanding in public session. The Memorandum of Understanding (MOU) outlines key terms and conditions for the purchase and lease of property at the site and can be found in Attachment A. A site map of Cubberley property lines can be found in Attachment B.
Upon approval of the MOU, the City and District will develop formal agreements such as a purchase and sale agreement and lease agreement to implement the intentions described in the MOU. The Community Services Department will reinitiate master planning for the site, building on work completed in 2019 with Concordia. Making the 2026 ballot will require an expedient process to identify which elements of the Cubberley Concept Plan remain relevant while re- engaging the community to build on the previous work and complete the appropriate level of CEQA analysis.
FISCAL/RESOURCE IMPACT
Approval of this MOU commits the City to the purchase a 7-acre portion of District-owned land at 4000 Middlefield Road contingent on voter approval of a bond measure in 2026, and extend the lease of facilities. Funding will be needed to advance next steps including a master planning process for the site, needed reviews such as CEQA, drafting of formal agreements, and preparation for the November 2026 ballot measure. Funding has been reserved in the FY 2025 Adopted Budget for real property acquisition to support these next steps.
STAKEHOLDER ENGAGEMENT
The District and City have worked to reach agreement between parties both in open session meetings and in closed session meetings allowing for opportunities for public comment.
Engagement with the community will occur through development of a plan for the community center in preparation for the November 2026 ballot. A workplan reflecting an expedient process will be developed in order to successfully reach the November 2026 election.
ENVIRONMENTAL REVIEW
Entering a Memorandum of Understanding is not a Project as defined by the California Environmental Quality Act (CEQA). The City will need to complete the appropriate level of CEQA analysis and documentation prior to adopting a new concept plan expected to be complete prior to placement on the November 2026 ballot.
ATTACHMENTS
Attachment A: MOU with PAUSD for Cubberley Site Purchase and Lease Attachment B: Site Map of Cubberley Property Lines
APPROVED BY:
Ed Shikada, City Manager