Board reviews financing scenarios for staff‑housing land purchase as parents urge keeping Measure T greening funds

District staff and outside financial advisors presented multiple options on Feb. 13 for financing a potential purchase of the land under the staff (workforce) housing development. The presentation outlined hypothetical COP (certificate of participation) structures and how the district might reallocate Measure T funds, developer fees and other capital resources to cover between $10 million and $30 million in potential purchase costs.

Doctor Westover, director of facilities, told the board the conversation was informational and that no single option had been selected. She explained the district is currently paying a ground lease of roughly $1.9 million per year (with annual CPI escalation of 2–4%), and that owning the land would reduce exposure to future lease escalations and give the district flexibility to set rents or use the property differently. Financial advisor Chet (Keegan) showed financing illustrations: a smaller $10 million COP would require a shorter repayment term and lower interest costs, while larger amounts (e.g., $30 million) extend terms and raise the all‑in cost.

Staff also identified potential non‑COP sources: roughly $9 million in developer fee/capital outlay funds could be reallocated to reduce the amount of Measure T proceeds needed; some largely completed Measure T project contingencies and project close‑outs could also yield savings. Staff cautioned, however, that some Measure T line items (projects already awarded or under contract) cannot be reclaimed.

Public comment was extensive and largely opposed using Measure T greening funding for the land purchase. Parents and community partners from Vargas and other sites urged the board to preserve funds for planned greening and outdoor‑learning projects, citing health and learning benefits and strong community backing for the Vargas phase‑2 design that the board recently approved.

Board members said they want more analysis and recommended separate, agendized discussions about any Measure T reallocation. Several trustees emphasized the need for outside real estate and financial experts to advise the district if it moves forward; others noted the district already has some outside advisors in place. Trustees asked staff for firmer timelines and cautioned that exercising the district’s existing option to purchase would create very narrow commercial timelines for financing decisions.

Why it matters: The decision about whether to buy the land under staff housing — and how to pay for it — affects district capital planning, the Measure T bond program and funding for school‑site projects (including outdoor learning and greening). The board has not taken a purchase vote; the meeting provided a first public review of financing scenarios and community feedback.