*NOT YET APPROVED*
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Resolution No. _____
Resolution of the Council of the City of Palo Alto Adopting Advisory Spending Guidelines for Proceeds of a Transactions and Use Tax to be Submitted to the Voters for Approval in November 2026
R E C I T A L S
A. The City owns eight acres of the 35 -acre Cubberley site, located at 4000 Middlefield Road, and currently operates the areas it controls as a community center, using some of the spaces for classes and activities in arts and culture, athletics, and leases additional space to various non-profit and community serving groups. PAUSD owns the remaining 27 acres, most of which are leased to the City. The areas that remain under PAUSD ownership and that are not leased to the City are used for PAUSD’s education purpo ses, staff offices, or third- party tenants.
B. On October 7, 2024 the City Council and Palo Alto Unified School District (PAUSD or District) Board of Education approved a Memorandum of Understanding (MOU) outlining key terms and conditions for the City’s purchase of seven additional acres of land from PAUSD, contingent on voter approval of a bond measure in November 2026. The addition of the seven acres, plus the eight acres already owned by the City of Palo Alto provides an opportunity to develop a new community center and other improvements on a combi ned 15 acres at the Cubberley site to provide a range of programs, including health, wellness, and recreational opportunities for residents.
C. On May 18, 2026, the City Council approved the Cubberley Conceptual Master Plan. This plan guides the next generation of development and use of the Cubberley site. The Conceptual Master Plan assumes the City’s purchase of the seven acres contemplated to be purchased by the City from PAUSD. The City Council also approved a mitigated negative declaration under CEQA.
D. On May 18, 2026, the City Council directed City staff to return with legislation to place a ballot measure proposing a local ½-cent (0.5%) transactions and use tax (commonly known as a sales tax) before the voters on the November 3, 2026 election.
E. If approved by voters, proceeds from the transactions and use tax will be placed in the City’s general fund for use on general government services. The City Council will determine the uses of those proceeds that best serve the public interest.
F. With this Resolution, the City Council informs voters of its intentions regarding the uses that would be supported by these proceeds.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS:
SECTION 1. The Council hereby adopts the above Recitals as findings of the Council. *NOT YET APPROVED*
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SECTION 2. It is the City Council’s intention to use the proceeds of the transactions and use tax – a general tax for general government uses – to invest in the community’s vision to create a vibrant, beloved, and adaptable destination that promotes learning, interconnectivity, joy and wellbeing where all cultures and generations belong.
To that end, the City of Palo Alto is ready to revitalize the Cubberley Community Center, beginning with the purchase of the seven acres of real property currently owned by PAUSD. With ownership of the developed area under the full control of the City, the City would be able to begin implementing the community’s vision for the site detailed in the Cubberley Conceptual Master Plan. The Council plans to allocate the proceeds from the transactions and use tax to purchase the seven acres and implement part of P hase 1 of the Cubberley Conceptual Master Plan to modernize the aging buildings, grow the amount of green space for outdoor enjoyment, invest in local public spaces that provide recreation and culture, and prevent Cubberley from becoming even further obsolete. The City plans to also use other funding sources, including investments from community partnerships and fees from new development, to leverage this new revenue. The Cubberley Community Center will realize its potential as space that serves the entire City in conjunction with the City’s constellation of other community spaces at Mi tchell Park, Lucie Stern, and the Bryant Street Community Center.
SECTION 3. The Council finds that adoption of this Resolution is not a project under CEQA , and therefore no environmental impact assessment is necessary.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
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City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
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City Attorney City Manager