Philip J. Henderson, Orbach Huff & Suarez
Jerry Matranga, Dutra Cerro Graden
Dominic Dutra, Dutra Cerro Graden
Innovative Strategies in Tough Economic Times
Practical Considerations:
Cuts in California
"The financial emergency facing our schools remains both wide and deep. The deep cuts made to school funding — and looming uncertainties about the future — are driving school districts to the brink of insolvency. Plain and simple, our schools need new revenues to get back on solid financial ground."
— Tom Torlakson, State Superintendent of Public
InstructionFebruary 23, 2012
Strategic Property Solutions for Underutilized or Surplus Property
Benefits for Students and Community
Barriers to Success
“Let’s optimize facilities to better meet student needs.”
You say…
They hear…
The Solution:Communication & Support
Communicate, communicate, communicate!
Presented by Philip J. HendersonAttorney at Law, Orbach Huff & Suarez LLP
Legal Considerations
Legal Steps to Surplus Property
Legal Steps to Surplus Property:
7-11 Process
Legal Steps to Surplus Property:
Pre-Bid Statutory Requirements
Legal Steps to Surplus Property:
Formal Bidding
Do not do this alone. Hire legal counsel or property consultant with school district property experience.
Legal Steps to Surplus Property:
Use of Proceeds
Presented by Dominic Dutra, Principal of Dutra Cerro Graden
Case StudiesHayward Unified School District
Case Study: Community Partnership
Total Campus Size35.75 AC
Building Area170,000 SF (approx.)
Field Area17.02 AC (approx.)
Program – 20.5 AC•80,000 SF – Adult Ed (Exist. 1-Story Bldgs.)•80,000 SF – (Exist. 1-Story Bldgs.)•70,000 SF – ROP (New 2-Story Bldg.)
Community Use – 15.25 AC•20,000 SF Community Center (New 1-Story Bldg.)•Recreational Pools (2)•Baseball Field (1)•Softball Field (1)•Soccer Fields (2)•Basketball Courts (8)
Parking (shared between public & district programs)
Case Study: School Site Land Lease
Selection CriteriaSoon to be Vacated, Proximity to University
Land Use StrategyLand Lease for Faculty-Student Housing
ConsiderationsDemand for Faculty Housing, Neighbor Concerns
Income Generated$300,000 to $375,000 Annually
Expected Timeline36 to 48 Months
112 Units – Faculty/Student Housing182 Units – Faculty/Student Housing
Case Study: Joint Venture Opportunity
Retail CenterConceptual Site Plan
Presented by Jerry Matranga, former Chief Business Officer of Cupertino Union School District
Case StudiesCupertino Union School District
Cupertino Union School District
The Cupertino Union School District Located In Six Cities and in Unincorporated Area of Santa Clara County:
– Cupertino– Sunnyvale– San Jose– Santa Clara– Los Altos– Saratoga
Cupertino Union School District
CUSD Partnership With the City of Sunnyvale
CUSD Partnership With the City of Sunnyvale
CUSD Partnership With the City of Sunnyvale
Keys to Success:•Collaborative planning with theCity of Sunnyvale staff. •Careful crafting of contract language on sale of lots at Inverness.•In-depth legal examination of certificate of participation financing with bond counsel.
– Seller financing yielded over 3% more than cost of certificate of participation financing.
CUSD Partnership With the City of Sunnyvale
Unintended Outcome:
•The San Jose Mercury News published a glowing editorial about the innovative agreement between the Cupertino Union School District and the City of Sunnyvale on behalf of the community. •This served as a catalyst for a very comprehensive agreement with the City of Cupertino.
CUSD Partnership With the City of Cupertino
CUSD Partnership With the City of Cupertino
CUSD Partnership With the City of Cupertino
Keys to Success:•Collaborative planning with the City of Cupertino staff. •Gained support of the plan by all interested parties
– City Council, School Board, athletic groups, citizens desiring community center, parents in Fremont Older attendance area, and 7-11 Committee members.
•Placed a city utility tax measure on the ballot that required only a 50% “Yes” vote.
– The utility tax has since been extended by the voters.
Question & Answer