innovative strategies in tough economic times

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