Consultant tells Newark Unified board district land could help attract staff through workforce housing

Brailsford & Dunlavy told the Newark Unified School District board it will evaluate the district’s full real-estate portfolio and explore options — including workforce housing and long-term ground leases — as a way to recruit and retain staff and generate strategic revenue.

“We want to make Newark the strongest owner and manager of their assets as possible,” Al Grazioli, vice president at Brailsford & Dunlavy (BND), said in the presentation. He described a four-step process: project definition and data assembly, partner selection, negotiation, and implementation.

Why it matters: trustees and staff said rising payroll costs and high local housing prices are making it harder to hire and keep employees. Grazioli used the common affordability benchmark — housing costs at 30 percent of gross income — to illustrate the gap between starting salaries and local one‑bedroom rents.

BND laid out three near-term phases for the engagement. Phase 1, already under way, is an inventory and high-level residential market study; BND plans to deliver a synthesized report to the board on June 17. Phases 2 and 3 would involve strategic visioning with district leadership and, if the board directs, RFQ/RFP work to solicit partners.

Grazioli stressed legal and fiscal constraints. He told the board that different transaction types carry different rules under the Education Code: proceeds from some long-term leases may be used at board discretion, leases-with-option-to-purchase can require restricted funds for routine repairs for up to five years, and sale proceeds are generally reserved for capital improvements.

BND offered a recent example in Santa Barbara where the firm conducted market-sounding and received multiple developer proposals; Grazioli said feasibility work and careful pro‑formas prevent issuing RFPs that attract no bidders. He also underscored that revenue from many affordable-housing structures typically accrues only after decades, when debt obligations roll off.

Trustees asked about continuity across a superintendent transition, local comparables, and whether staff and employee surveys would be used; Grazioli and trustees agreed the phased approach allows the district to stop or adjust the work if priorities shift. Trustee Aidan Hill, who served on the consultant selection committee, emphasized running the numbers before advancing development.

Next steps: BND will continue its portfolio review, complete the market study and return with a June 17 report. The board signaled interest in approving moving to later phases but reserved formal expansion of the contract for a future agenda vote.