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San Rafael school board votes to pursue public sale of McPhail surplus property; neighbors urge community center instead

September 24, 2025 | San Rafael City High, School Districts, California


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San Rafael school board votes to pursue public sale of McPhail surplus property; neighbors urge community center instead
The San Rafael City Schools Board of Education voted Sept. 23 to declare its intention to sell the district's surplus McPhail property and to open the site to public competitive bidding. Deputy Superintendent Bob Marcucci told the board the parcel covers about 9.76 acres on Mendola Drive in the Santa Venetia area and that Education Code procedures require the board to set the minimum sale price and the schedule for receiving sealed and oral bids.

The board's action follows years of outreach and prior offers: the district declared McPhail surplus in 1979 and reaffirmed that status subsequently, most recently in March 2024. Marcucci said staff received two eligible, compliant written offers and one ineligible offer, engaged in extended good‑faith negotiations, and was unable to reach an acceptable purchase agreement. He said staff recommends public competitive bidding so the district can ensure the property is sold at fair market value and that any sale proceeds are used only for capital improvements or ongoing facility maintenance in the elementary district.

Why it matters: the McPhail site is adjacent to a residential neighborhood, wetland areas and active community organizations. Neighbors told trustees the property has been a local blight for decades but urged them to preserve it as a low‑impact community resource rather than sell to private developers.

At the meeting Marcucci outlined the formal timetable set in the draft resolution: sealed written bids must be received by San Rafael City Schools by 5 p.m. on Jan. 23, 2026; eligible oral bids may be made at the public board meeting on Jan. 27, 2026; and the board will open and consider all sealed and oral bids at that Jan. 27 meeting. "The minimum bid shall be no less than $6,000,000," Marcucci said. He also reiterated the statutory requirement that sale proceeds be used for capital projects or facility maintenance, not the district's general fund.

Public comment: about a dozen residents and nonprofit representatives spoke during the allotted public‑comment period, urging the board to slow the sale, prioritize community uses or negotiate restrictions on future buyers. Giselle Block, a long‑time Santa Venetia resident, said, "So this is not the highest and best use for the community," and asked the board to reconcile that view with the district's stated goal of serving students and neighbors. Gina Hagen, president of the neighborhood association, said the site has been "a magnet for ... blight" and that the community has pursued low‑impact uses for decades. Speakers cited concerns about wetlands, traffic and loss of a potential community center; several asked the district to continue negotiations with local nonprofits such as Santa Venetia Commons rather than immediately accept the highest monetary offer.

Board discussion and vote: Trustee Lau acknowledged the community's input and said the board must balance neighborhood preferences with its fiduciary responsibility to sustain district finances and facilities. "Our primary focus ... is to educate our students and protect the best interests of those in our school district," Lau said, noting the district's structural budget pressures and the legal process the board must follow. After discussion, Trustee Lau moved to adopt the resolution declaring the board's intention to sell the McPhail site and to set the terms described in the resolution; Trustee DeNammar Marsh seconded the motion. The chair called for the ayes and announced the motion passed.

Next steps: with the resolution adopted, staff will proceed to publish the bid notice, continue neighborhood outreach and post updates on the district website as the bid and review process proceeds toward the Jan. 2026 deadline. Any final sale will require the board to accept the highest and best bid after the Jan. 27, 2026 public meeting; the district emphasized that funds from any sale must be committed to facilities work in the elementary district.

Context and constraints: Marcucci noted the district previously offered priority notice to certain public entities and eligible nonprofit organizations before pursuing other sale channels; the board previously approved two leases for the old Galena site, with WildCare and Galena Valley Little League, showing staff's willingness to pursue nonprofit partnerships. Marcucci also said the district is committed to transparency and additional outreach to neighborhood stakeholders during the sale process.

What the board did not decide: the vote declared the board's intent to sell and set the competitive‑bid process; it did not accept a specific purchase offer or change the statutory requirement that sale proceeds be used for capital projects.

Ending note: neighbors and nonprofit advocates left the hearing urging continued dialogue and alternatives to a standard highest‑bid sale; trustees said they would continue outreach while complying with Education Code sale procedures.

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