District, city discuss 526 B Street options, enrollment declines and workforce housing ideas; decision on 526 B Street expected in months

City and school staff updated the committee on development and enrollment, saying officials expect to decide on 526 B Street within the next six months and are exploring workforce housing options on district land, existing housing purchases and other financing tools.

Why it matters: the school district faces declining enrollment at several elementary schools and is exploring ways to house staff and preserve operations while balancing facility needs and financial constraints.

Staff outlined three broad paths for 526 B Street: find a new location for district office operations and a separate home for DSIS (independent studies), partner with a developer to redevelop the site, or have the district develop the site itself for workforce housing. Staff said those options represent the spectrum of possibilities and that the board will likely make a decision in about six months.

The district said administrative space needs are roughly 30,000 square feet if an administrative central location is chosen. Officials discussed field‑map compliance rules for school buildings: buildings with more than 25 students must meet particular seismic and safety standards, which can make conversions economically challenging. Staff said a charter or a non‑seat‑based conversion has legal constraints and that current moratoria on some charter conversions could affect options.

On enrollment and boundaries, the district reported several elementary schools with low enrollment. Staff named Pelon (about 380 students), Birch Lane and Montgomery among the schools with the most pronounced declines; Korematsu was noted as likely to see a significant decline in incoming kindergarten cohorts. The district described how nonresident students typically fill under‑subscribed seats until cohort declines propagate through subsequent grades.

District staff also summarized their workforce housing research: they visited two jurisdictions where districts built staff housing on school land—one elementary district created a 52‑unit complex with preferences for teachers and classified staff, and a high school district created a 20‑unit development on a closed high‑school site. The district said such projects can offer rent at 50–60% of market when the district finances construction and avoids property tax on district‑owned land.

A district staff survey reported substantial interest in workforce housing: about 77% of survey respondents (roughly half of district staff took the survey) indicated some interest in district‑provided rental or purchase options. Staff said financing options under consideration include Certificates of Participation (COPs), bonds and stacking multiple funding sources, and that other districts have used capital funds, bonds or a mix of federal and state sources to support housing.

What’s next: staff will continue to assess site feasibility and financing, and the board expects to take a decision on 526 B Street in roughly six months. The district and city stressed coordination on design and compliance issues if district land is used for housing.