City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Community Services
Meeting Date: October 5, 2026
Report #:2608-6603
TITLE
Approval of Letters of Intent with Avenidas and HeartFit for Life for collaboration on a longterm public-private partnership for expanded services for aging adults at the Cubberley site; CEQA status – Mitigated Negative Declaration Approved on May 19, 2026.
RECOMMENDATION
Staff recommend the City Council approve and authorize the City Manager to execute Letters of Intent (LOIs) with Avenidas (Attachment A) and Cardiac Therapy Foundation / HeartFit for Life (Attachment B) for collaboration on long-term public-private partnerships for expanded services for aging adults at the Cubberley site.
EXECUTIVE SUMMARY
City staff and the Cubberley Ad Hoc committee are coordinating with community partners to advance elements of the Cubberley project using a public private partnership model. A proposed partnership with Avenidas would expand programming and services for aging adults, including the Avenidas Chinese Community Center currently located at Cubberley. A partnership with Cardiac Therapy Foundation, known as HeartFit for Life or HeartFit in the community, would continue cardiac therapy and rehabilitation programs for adults. Staff recommend Council approve Letters of Intent with Avenidas (Attachment A) and HeartFit for Life (Attachment B) to formalize a joint commitment to advance these project components.
BACKGROUND
The City is advancing a plan to redevelop a 15-acre portion of Cubberley, guided by the Cubberley Conceptual Master Plan and associated CEQA environmental document adopted by the City Council on May 18, 20261. The City and the Palo Alto Unified School District (PAUSD) 1 City Council, May 18, 2026; Agenda Item #13; SR #2512-5750, https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=2a17e949-762d-4b3e-8ba5- f92086da72b0
have a memorandum of understanding that would enable the City to purchase seven acres to support a reimagined community center and fund school improvements. The City currently owns eight acres at Cubberley; acquiring an additional seven acres would create an opportunity to update the aging facility for the benefit of the community. Funding the land purchase and site improvements could be possible through a combination of funding sources including a ballot measure, nonprofit partnerships, philanthropy, grants, and fees from new development.
On June 8, 20263, the City Council voted to place a ½ cent (0.50%) Sales Tax (Transactions and Use Tax) measure on the November 3, 2026 ballot. A simple majority (50% plus 1) vote is required to pass. The Council also adopted advisory spending guidelines for proceeds of the Transactions and Use Tax. Resolution No. 102964 states the Council plans to allocate the proceeds to purchase the seven acres and implement part of the first phase of the Cubberley Conceptual Master Plan to modernize aging buildings, expand the amount of green space, and invest in spaces that provide recreation and culture. The City plans to leverage other funding sources, including investments from community partnerships and fees from new development along with this new revenue to advance the project. It is likely that the City will issue certificates of participation (COPs) or similar financing mechanisms to advance funds for land acquisition and to enable construction to proceed within the first few years after passage of the measure.
More information on Measure J is available at https://www.paloalto.gov/Departments/CityClerk/Municipal-Elections/November-3-2026-Ballot-Measure-J.
City staff and the Cubberley Ad Hoc committee are coordinating with community partners to advance elements of the Cubberley project using a public private partnership model. Letters of Intent (LOI) have been approved by the City Council with the Friends of the Recreation Wellness Center, December 2, 20245 and with TheatreWorks Silicon Valley for a performing arts complex, February 9, 20266. Staff has recommended that the City Council approve a Letter of Intent with Maker Nexus on September 28, 20267 for development of a community focused maker space for all ages at the Cubberley site, and a further defined term sheet with the Friends of the Recreation Wellness Center. A Letter of Intent with Palo Alto Community Child 3 City Council, June 8, 2026; Agenda Item #14; SR #2603-6081, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887096&dbid=0&repo=PaloAlto&cr=1 4 City Council Resolution No. 10296,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=887259&dbid=0&repo=PaloAlto 5 City Council, December 2, 2024; Agenda Item #18; SR #2410-3634, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83117&dbid=0&repo=PaloAlto 6 City Council, February 9, 2026; Agenda item #11; SR #2512-5774, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=85859&dbid=0&repo=PaloAlto 7 City Council, September 28, 2026; Agenda Item #5; SR#2607-6546, https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=f6d6e0aa-ee64-46d5-bd50- 0c01c18d2011
Care is also being discussed and anticipated to be presented for City Council approval in late October. These LOIs are intended to demonstrate the City’s intent to advance certain elements of the Cubberley project through partnering with organizations that provide a community benefit and share in project costs. Additional agreements will be necessary to establish the City’s and partners’ commitments as plans develop.
There has been extensive foundational work completed to support the advancement of the Cubberley Project, including several actions by the City Council. Attachment C shares a summary of actions to date and the history of the Cubberley site.
ANALYSIS
Public Private Partnerships provide an opportunity to advance elements of the Cubberley project through a combination of City and private investment while offering valuable programs and services to the community. Several community nonprofit organizations have expressed interest and both staff and members of the Ad Hoc are engaging in conversations with potential partners. A Letter of Intent establishes a framework for future actions and outlines mutually cooperative strategies to guide ongoing discussions on key terms and conditions of future agreements.
Both Avenidas and HeartFit for Life (HeartFit) are current tenants at Cubberley and lease space from the City, while HeartFit also leases space at Cubberley from PAUSD. Both organizations are interested in continuing their tenancy through a long-term partnership with the City. While each organization operates its own programs, their shared mission to improve the lives of adults, particularly older adults, provides opportunities to share spaces and coordinate programing. In consideration of their shared values of supporting healthy lives of aging adults, Avenidas and HeartFit are exploring ways in which the two organizations could collaborate on future shared space and other resources.
Avenidas
Avenidas provides essential programs and services that support the well-being of older adults through a longstanding agreement with the City of Palo Alto. Its offerings include social services, health and wellness programs, caregiver support, enrichment activities, volunteer opportunities, and community engagement. Avenidas has long operated from its location at 450 Bryant Street in Palo Alto and, since 2018, has operated the Avenidas Chinese Community Center at Cubberley. Expanding Avenidas’ presence at Cubberley would support not only the Chinese Community Center but also increase access to programs and services currently available only at the Bryant Street location. As Palo Alto’s older adult population continues to grow, there is an increasing need for accessible, appropriately designed, and geographically distributed space that supports healthy aging.
HeartFit For Life
HeartFit for Life has operated cardiac therapy and rehabilitation programs at Cubberley since 2003, helping adults live longer, healthier lives. The organization serves more than 300 participants annually, with an average participant age of 76. Most participants are age 60 or older, and more than half are Palo Alto residents. A partnership with HeartFit would provide dedicated space for HeartFit’s programs while allowing shared spaces to support additional City and community-based programs and services that promote health and well-being.
Following approval of the LOIs, the City will establish terms for a future agreement with each organization to include cost sharing, fundraising goals, timelines, management structures, and other terms.
FISCAL/RESOURCE IMPACT
There is no fiscal impact associated with approval of this LOI, as it is not a legally binding agreement. Future agreements to further refine commitments could include fundraising goals, cost sharing, and operating agreements and would be brought forward to Council for review and consideration.
STAKEHOLDER ENGAGEMENT
Community outreach and stakeholder engagement efforts for the project have been extensive and remain a central component of the overall process. Engagement with community partners has been ongoing and is intended to understand which community organizations may have an interest in contributing financially to development of the site while bringing exciting community programs and events to Cubberley. Providing space for people of all ages and abilities where everyone belongs and feels welcome is part of the vision for a new community center at the Cubberley site.
ENVIRONMENTAL REVIEW
The Council adopted an Initial Study/Mitigated Negative Declaration for the Cubberley Conceptual Master Plan on May 19, 2026 (SCH Number 2026030129).
ATTACHMENTS
Attachment A: Letter of Intent between the City of Palo Alto and Avenidas Attachment B: Letter of Intent between the City of Palo Alto and HeartFit for Life Attachment C: Background on Cubberley Project
APPROVED BY:
Kristen O'Kane, Community Services Director