Board reviews options for surplus Peralta site; counsel outlines waiver and RFP paths, trustees ask for zoning and master plan details

District legal counsel and staff on Feb. 26 presented the history and legal options for the surplus Peralta site and discussed two main routes for disposing of or leasing the property: the Education Code statutory public-offering/formal-bid process and a waiver process to obtain State Board of Education approval that would allow the district to issue an RFP and evaluate proposals on multiple criteria (including "community good"). Counsel noted the property had been deemed surplus previously and that waiver authority had been granted in 2011 and 2020 for prior efforts but that those waiver periods have expired.

Serena Abrahamian, counsel with Orbachuff and Henderson, outlined the statutory steps that follow a surplus determination: public notice to specified public agencies (with 40–60 day response windows), opportunity for negotiations with public agencies, and, if no suitable public offer is received, formal bidding procedures where the district may accept the highest responsible bidder or reject all bids. Abrahamian described the waiver pathway as an alternative that would let the district issue an RFP to all proposers at once and evaluate proposals based on board-defined criteria beyond price.

Public commenters urged the district to emphasize community benefits in any future process. Corley Newman, president of Government Solutions, Inc., speaking on behalf of Orange Lutheran High School, urged the waiver route and told the board the City of Orange changed the property zoning to "public institution" on July 23, 2024, which he said would prohibit residential development. "This is a very strong and recent directive from the city of Orange that says that residential development is prohibited on the Peralta site," Newman said. Darren Kempkes, a nearby resident, told trustees his neighborhood opposes housing and would support Orange Lutheran's proposed athletic facility.

Trustees asked detailed procedural questions: whether the district needs to re-declare surplus (staff said that step is already complete), how long a 99-year lease could be and whether lease terms can require development within set timeframes, what the State Board of Education typically requires for waiver applications, and how to define and score "community good" in an RFP. Counsel said RFPs and leases can include performance milestones, minimum payments, development timelines and evaluation criteria tailored to district priorities, and that sale proceeds have more statutory restrictions than lease revenues.

Trustees also requested additional materials before making a decision to pursue a waiver at the next board meeting: an up-to-date zoning summary showing permitted public-institution uses, the district's master facilities plan context for Peralta, and the potential costs of engaging real-estate consultants to advise on highest-and-best-use analysis. Staff said they will prepare a waiver application for consideration at a board meeting in mid-March (target March 12–13, 2025), including the required public hearing and consultation steps, but emphasized the board has discretion at every step and has not committed to any final sale or lease.

Next steps: staff will draft the waiver resolution and supporting materials for the March board meeting, provide requested zoning and master-plan documentation, and outline options for RFP evaluation criteria and consultant engagement.