District staff presented on CUSD property matters at the board advance meeting on January 23, 2025. The presentation can be found here.
Current Property Conditions
Below is the screenshot for property current conditions.
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Options for Meyerholz and Finch
Meyerholz Elementary School:
Meyerholz Elementary School, which was closed (see
here for more detail), currently houses Cuperdoodle, a district-run preschool, utilizing the portable structures of Meyerholz. For more details, see
here.
Finch Property:
The
Finch property is a 1.48-acre vacant lot purchased by the district around 2017. The house on the property was removed, and the contaminated soil was cleaned up. It is currently zoned
R1-6, indicating single-family homes with a minimum 6,000-square-foot lot.
Finch Property Options
During the meeting, several options for the Finch property were discussed:
Central Kitchen
District Educational or Recreation needs
City needs
Revenue generation
The first two options were briefly mentioned with high cost/maintenance. The option for city needs remains undecided due to a lack of formal communication with the City of Cupertino.
Potential revenue options: The consultant presented three potential revenue generation options.
Senior Project:. Estimated value range is $5.5M - $6.5M, but this option was ruled out due to the site's unsuitability for a senior project.
Single Family Project: Estimated value range is $9M - $10M.
Townhome Project. Estimated value range is $10M - 11M. Please notice it would be up to developer to change the zoning.
The consultant advised that the district should not act as the developer. The recommended approach involves:
Selling the property to a developer with a plan
Purchasing another commercial property to generate rental revenue.
These steps can be combined to appear as an "exchange" to the district.
However, several questions require further exploration:
Do we need to sell the Finch property? Keeping it vacant incurs maintenance costs, and the government might begin charging property taxes.
If we sell the Finch property, should we exchange it for a commercial property?
(Disclaimer: this article is NOT investment advice.) According to investopedia, the S&P 500 index has significantly outperformed real estate over the last 50 years. Also,
The index comprises 500 top companies, offering more diversification and lower risk than specific real estate investments.
The index ETF also provides quarterly dividends, offering the district a cash flow as well.
Additionally, the index ETF is a "buy and hold" investment, eliminating the need for property management, tenant acquisition, and concerns about natural disasters.
Meyerholz Options
Currently, Cuperdoodle occupies the portables at Meyerholz. There are two rental options for Meyerholz: with or without the portables. Renting all buildings would generate more rental income, but the district would need to find a new site for Cuperdoodle if all buildings are rended out.
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