The Ravenswood City School District governing board voted to approve exclusive negotiating agreements with developers interested in long-term leases of two of its properties, staff said during a Thursday meeting. The leases could help to bring in millions of dollars to help cover a recent increase in teacher pay and fund initiatives like early learning programs.
The district is negotiating a 90-year lease with developer Alliant Strategic for a shuttered school to build a three- to four-story affordable rental housing development — with preference given to district teachers and staff — on the 2-acre site at Sheridan Drive in Menlo Park, which used to house James Flood Magnet School, according to a staff report. The housing would cost the developer around $50 to $60 million to build.
The district is also in talks with Madison Capital for a 99-year lease to build a seven- to eight-story life science lab and office space at the district office, which is on a 4.15-acre site at 2120 Euclid Ave. in East Palo Alto. By 2023 or 2024, the district plans to move out of its office, which will be demolished, according to the district's Chief Business Officer Will Eger.
"If developed, the frameworks for these agreements will bring in millions of dollars in annual revenue while also creating affordable housing and new commercial space," according to a district press release. The staff report does note that these revenues will not come in for three to six years. "This new revenue would bring Ravenswood in line with the rest of San Mateo County, up from being one of the lowest funded districts in the county when accounting for student need."
Board President Mele Latu was the one person to vote against the agreement for the district office land, noting during the meeting that the length of the lease terms, 90-plus years for each, is a "bit worrisome." She also had concerns about how East Palo Alto residents would react to a new seven- or eight-story building in their community.
Trustee Ana Maria Pulido agreed, but noted that the district does need ways to be able to stay solvent.
"I want to have safeguards in place so that we're not in a 70-year marriage that nobody can get out of," she said during the meeting.
Alliant Strategic is proposing paying the district an annual base rent of $525,000 for the first lease year, with increases in subsequent years. Alliant Strategic would like to pay the first 15 years in rent up front, according to the district. The Flood site is not currently zoned for multifamily housing, although the city of Menlo Park has indicated support for housing there, according to the staff report.
Madison Capital is developing projects in San Francisco, including a project at 50 Post Street in the Financial District, according to its website, and is proposing to pre-pay the first three years of rent (before development) as deposit, but other terms of the deal are still being worked out.
Next steps
Staff plans to present full contracts to the governing board in March for approval, according to the staff report. The contract would then go into effect in the late spring. The district anticipates construction would start at both sites in 2023 or 2024.
In October, the district began to solicit bids for the properties. The district worked with commercial real estate firm JLL to market the properties. Over a six-month period, JLL had conversations with over 40 developers for each site, the district said.
There were four offers for the district office site and six for the Flood site, according to the district's Chief Business Officer Will Eger, in an email. "This is a fairly robust level of interest for a project of this scope," he noted.
The district currently leases nearly half of all its overall space to local community groups, according to the staff report.
Watch a video of the board meeting here.
Find out more about the projects, and community meetings regarding the development, here.
Comments
Registered user
Menlo Park: The Willows
on Jan 24, 2022 at 10:50 am
Registered user
on Jan 24, 2022 at 10:50 am
The story does not mention that the Sheridan Drive property is adjacent to San Mateo County's Flood Park. The County's "Reimagining Flood Park" plan has proposed to remove a large number of healthy trees, many heritage oaks, to construct a soccer field in the park. An alternative would be for the County to arrange a land transfer with the Ravenswood School district, add this property to the park, and use it to construct athletic fields.
Registered user
another community
on Jan 24, 2022 at 11:17 am
Registered user
on Jan 24, 2022 at 11:17 am
Chuckling a lot at the idea of adding someone else’s land for sports use instead of housing.
Registered user
Menlo Park: Suburban Park/Lorelei Manor/Flood Park Triangle
on Jan 24, 2022 at 12:53 pm
Registered user
on Jan 24, 2022 at 12:53 pm
I think a 90 year lease is irresponsible. No mention of number of units, but for a developer to get a return on a $50M to $60M investment, they are typically looking at a high rate of return: $150M, $200M or higher. That does not equate to ‘affordable housing’ rents, which for a median household income of $57k, a max monthly rent of $1,400. Doing just raw math, that means if 50 affordable housing units were built on this parcel for families in that median income, a total property annual income of only $855K ; in other words, it would take over 60 years to even get close to a break even. That raw calculation does not include all of the annual costs associated with the property - maintenance, cost of money, major repairs, and the life expectancy of the buildings. Doesn't add up!
This location is not a good location for affordable housing nor homeless shelter: It is not close to retail, no public transit, and next to the pollution of Hwy 101. What will be the impact of all the hundreds of traffic trips per day from the new residents, delivery trucks, service vehicles, etc on the Suburban Park neighborhood?
It seems that it would be much better for the school district to have school property be used for the betterment of the district youth. The district’s service area is already deprived of green space, trees, and outdoor sports fields for family and students. Making this a sports field keeps with the district’s fiduciary responsibility of servicing youth. Thousands of youth would benefit from this property being green space with a sports field over the coming decades. And, in 10 or 20 years, having this property as green space retains the option and flexibility for the district to then make decisions that best benefit the school district at that point in time.
Yes we need affordable housing and yes, we also need more green space and available outdoor sports for the future population served by the District.
See FloodPark.org/school
Registered user
another community
on Jan 24, 2022 at 2:24 pm
Registered user
on Jan 24, 2022 at 2:24 pm
Use of the Flood School site should include consideration of its adjacency to Flood Park (which is undergoing planning for improvements). Current discussions concern removal of many trees, including in native oak woodlands, for replacement with a playing field. Is adding housing while at the same time reducing beneficial green space available to those residents as well as other neighbors, such a good thing?
Registered user
Menlo Park: Suburban Park/Lorelei Manor/Flood Park Triangle
on Jan 31, 2022 at 6:45 pm
Registered user
on Jan 31, 2022 at 6:45 pm
Dear Almanac: Your links in this article to more information on this project do not work. Can you let me know how to find out more information on the Flood Park plan for the 3-4 story apartment building? Thank you.