San Ramon Valley Unified board approves purchase of Crow Canyon office building to generate general-fund revenue

The San Ramon Valley Unified School District Board of Education on a 5-0 vote approved a purchase-sale agreement to buy 3130 Crow Canyon Place in San Ramon for $18 million, directing staff to enter due diligence and pursue financing to complete the transaction.

Superintendent CJ Kamik told trustees the plan is intended to convert restricted assets into ongoing general-fund revenue without using general-fund dollars for the purchase. "The finances used to purchase this building pending approval and completion, none of them come from the general fund," Kamik said, adding that rental income from the property would be unrestricted and could be used for district priorities directed by the board.

Assistant Superintendent of Business Services Danny Hillman described the structure: a 60-day purchase close (with a 30-day due-diligence window extendable to 45 days), an $8 million deposit drawn from restricted facilities/RDA funds, and a seller-held $10 million note while the district markets a certificate of participation (COP) to raise the remaining financing. Hillman said the district would occupy roughly 20,000 square feet (about 25% of the building) and rent the remainder; the staff estimate of net rental revenue is approximately $1.2–$1.3 million per year based on current tenants and after annual expenses.

Why it matters: Trustees framed the move as a response to sustained budget pressure — the district previously made tens of millions in reductions — and a way to generate flexible revenue when most local funding streams are legally restricted to facilities or other uses. Kamik and staff said the district presently holds about $13 million in restricted RDA funds and expects ongoing RDA pass-throughs; those restricted receipts, combined with a COP, would enable the purchase while keeping general-fund cash separate from the acquisition itself.

Public commenters split over the plan. Ken Anderson, a local CPA and nearby resident, thanked staff for exploring options but warned of traffic and construction impacts from nearby housing projects and urged careful tenant management and vacancy planning. "Our biggest concern is traffic," Anderson said. Hank Schwarz, introduced by the board as the second commenter, urged trustees not to approve the purchase, calling commercial real estate "great until it is not" and arguing that current vacancy rates and potential renovation and capital costs could outweigh the projected revenue.

Trustees pressed staff on specifics: whether the $1.3 million figure was net of expenses (staff said it was), the availability and terms of the rent roll (staff said copies were available and that lease terms and renewal options are known), anticipated renovation work (several suites were described as move‑in ready while one larger suite may need carpeting and paint), and oversight/property-management arrangements (staff said property‑management costs are factored into the expense assumptions and that the district would engage experienced advisers and property managers).

Staff named outside advisers the district is using for analysis and implementation: ISM Advisors (financial adviser), Public Economics Incorporated (RDA expertise), DWK (legal counsel), and Cushman & Wakefield (broker Mike Copeland). Hillman noted the COP would be marketed in the municipal (MUN) market and that the district still must seek board authorization of COP terms at a later meeting; a COP is a market investment vehicle typically secured by property, not a personal bank loan.

Board member discussion also addressed the long-term handling of the district's current administrative campus at 699 Old Orchard: staff described the legal surplus process (community committee review, required offers to other public agencies, possible Naylor Act steps if adjacent to parks) and estimated that declaring and selling surplus property could take 12–24 months. Staff emphasized that proceeds from any future sale would be deposited to a restricted facilities fund by law.

The board's action directs staff to finalize the purchase-sale agreement, complete due diligence (with the contract allowing a single 15-day extension of the initial due-diligence period), and return with COP authorization and related documents at a future meeting. The motion to approve agenda item 4.1 carried 5-0. After the vote the board moved into closed session to address a personnel matter under Government Code §54957.

What remains: staff will complete the contracted inspections and phase-one environmental testing during the due-diligence period, finalize COP sizing and terms for board approval (staff cited a target to take the COP to market in early December), and work through the surplus and disposition process for the current service-center property if the board elects to pursue sale and redevelopment. The district emphasized that, under current law, proceeds from future sales would remain restricted to facilities uses unless laws change.