BY BRADEN CARTWRIGHT
Daily Post Staff Writer
The city of Palo Alto declined yesterday to release the appraisal it got for the seven acres of the Cubberley Community Center it plans to buy, but said the $65.6 million purchase price reflects the 2024 appraisal if inflation is considered.
The city released a statement about the appraised price on the same day ballots were mailed for the November election, which includes a measure to increase the sales tax by a half-cent in Palo Alto to fund the Cubberley purchase.
The statement said the appraiser, who was not identified, said the seven acres were worth $43.6 to $60.2 million in 2024. With inflation, the $60.2 million would be equal to approximately $65.5 million in 2027, according to the city’s math.
For reasons the city didn’t reveal, it refused to release the actual appraisal. An appraisal typically includes more information about a purchase than just an estimate price, such as an assessment of renovations and upgrades necessary in order to justify the price.
An appraisal will usually contain information on comparable sales, known as “comps.” However, no comparable buildings have been sold in south Palo Alto in the past few years, making a comparison of comps impossible.
“Valuing the Cubberley property is imprecise due to a lack of comparable sites,” the city said in the statement.
In the statement, the city claimed the school district originally asked for $90 million for the seven acres.
That reflects the potential value of leasing the buildings to a private school longterm, the announcement said.
The property is zoned for public facilities, which limits what can get built there and gives priority to government buyers.
Council and the school board reached a long-awaited land deal in October 2024, contingent on the city raising the money to buy seven acres.
The Measure J ballot question doesn’t mention the land purchase, instead focusing on making the buildings safer. The half-cent sales tax increase has no end date, unlike a parcel tax or bond issue.
Only 34% of Palo Alto voters surveyed in January said buying the Cubberley land was very or extremely important, so the city focused the question on areas that had more voter support, like upgrading electrical and plumbing.
The half-cent sales tax is expected to bring in $15.6 million per year.
The city currently owns eight acres at the old high school and wants 15 acres for a rebuilt community center.
The city’s statement said the separate ownership has hindered long-term planning and investment in renovations.
“Consolidating ownership under the city ensures permanent public use and advances the plan to modernize the campus for wellness, arts, culture and outdoor programs,” the announcement said.
A closed-door meeting of council planned to discuss the appraisal was scrubbed yesterday, and instead the city released the statement about the appraisal. It was described as a “joint statement” of the city and Palo Alto school district. Previously, City Manager Ed Shikada said it would be up to the council to decide whether to release the appraisal to the public. Yesterday, it was unclear how council could have authorized the release of the statement without a vote either in a public or closed session beforehand.
The Fry’s site in Palo Alto sold for roughly $17 million/acre. In 2019 the Los Altos School District paid $155M ($13.3M/acre) for land on San Antonio to build a school. If my math is correct, PAUSD is selling the Cubberley land to Palo Alto for ~$9.3m/acre. This sales price doesn’t look like the city is paying top dollar for prime Palo Alto real estate, or that the school district is overcharging for this asset. Also noting the PAUSD/City of PA joint statement (found on PaloAlto.gov) notes the appraisal was $60.65M in 2024, which with 2% inflation brings it up to $65M in 2027 – “over appraisal” isn’t exactly accurate. I very much doubt there will be another opportunity for the city to acquire a 15 acre property in a burgeoning residential area, that offers so much potential to become a world class community treasure, where the public can enjoy arts, sports, green spaces, senior, youth, childcare services and more. I am voting Yes on J.
That appraisal actually seems low. If you look at the properties sold off of Middlefield in Menlo Park you probably need to add a one in front of those numbers.
The Post seems to be ignoring the many factors in the negotiation for the Cubberley sale. While PAUSD may have had the potential to lease the buildings to a private school, that action would have thrown out many of the existing community groups currently using the facilities. The City would still be left with 8 acres of distressed and failing buildings that require major reconstruction and, even if renovated, would not be able to accommodate all of the existing community users. The current plan to consolidate the facilities under the City’s ownership removes the restrictions that hampered the School district in finding a buyer, and insures that the site can become a long-term, vibrant community center serving all of Palo Alto. The property purchase will unlock additional funding sources from partnering non-profit organizations, increase the usable space available to a wide variety of community groups, and expand open space within the center. What’s not to like here? This agreement is overdue and too good fail.
Vote YES on Measure J – for the future.
Palo Alto council: “Let’s keep the appraisal secret and then overbid and let taxpayers pick up the tab.” What the hell, nobody will know the difference. Not so fast. Just say no to Measure J.
This is odd. Seems purposeful. The article names the 2024 valuation but the 2027 sale price. It says right in the press release that the 2024 agreed upon sale price was $60.65M. Seems like the Daily Post is trying to make it seem like an unreasonable number. Either use the $60.65M against the appraisal or escalate the appraisal values by 3 years, too. If we’re going to debate Measure J, let’s do it fairly. Come on.