001ES at 6 p.m. Um, we have four out of five trustees present today. One is absent. And now we are going to adjourn to close session to have a conference with real property negotiators. And we will be back soon. Hello, good evening everyone. It is 6:56 p.m. and we are resuming open session. There were no public comments on close session items this time and there are no public comments on agenda items. We have adoption of the agenda and now we need to adopt the agenda. Can I have a motion please? >> Move to adopt. >> Second that. >> Right. Moved and seconded. All those in favor? >> I. >> All right. So our main item today is review and discussion of district real property. >> Thank you. And so with that, I'd like to invite
002Dan Mar of 3D Strategies this evening. He'll be providing the board with a presentation of three available properties that we currently have. He'll be uh doing an overview of each properties um design as well as you know the current land use and existing zoning. And then we'll have an opportunity to talk about um potential marketing and clientele uh you know potential clientele outreach that we can do for uh leasing opportunities at all three of these locations. Welcome Dan. >> Good evening uh superintendent and members of the board. Thank you for having me. Um, as mentioned, uh, 3D Strategies was engaged to, uh, do a review and analysis of the, uh, the Birchwood, Cherrywood, and Pedmont properties. And today we'll be going over an analysis of each each property. Um, so with that said, we can
003go ahead and get into it. So, um, we'll first, uh, look at, uh, Birchwood Elementary School, uh, property and land use discussion, Cherrywood Elementary School, uh, property and land use discussion, and the Piedmont former uh, district office property and land use discussion. So, we can go ahead and switch. So, um, Birwood Elementary School, uh, it's an approximate, uh, 9.4 4 acre uh campus uh improved with 38 approximately 38,740 square feet of permanent structures and about 20,000 square foot of modular buildings or portable buildings. Um the current zoning for the property is R1 residential and the general plan for the property is public quasi public and it's on a single parcel and um it's a square uh property bordered by resident a single family residential. And so uh our next slide uh gets into the the
004land use and when we evaluate the properties uh we essentially first look at from very high level the the land use and what the allowable uses are with the property. So here uh at Birwood and also with Cherrywood, the current zoning designation is residential, but in the uh city of San Jose, the general plan designation for the property is public quasi public. And so in our analysis of the property, we looked at the zoning designation of public quasi public to understand uh what uses are allowed at the property either as a permitted use or a uh conditionally permitted use or would require would require would require a special use permit. And um we have a a list of those uses on the right hand side of the the slide. Um the more common uses would
005be private schools, uh faith-based organizations, permitted uh uses can be museums, um permanent supportive housing, uh residential service facility, uh for seven or more persons. Uh but essentially the uh the majority of the uses are uh similar to education or assembly um with the with the few exceptions of the permitted uses but offic uh uses such as housing or industrial uses or more standard commercial retail uses are prohibited in the uh public quasi public uh zone. So I think we can go um to the to the next slide. So essentially uh we we looked at the property and after walking its uh its improvements and understanding the potential uses for the property. Uh we believe that for for Birwood uh we believe the the likely pool of prospect or users for the facility uh with
006its current general plan would be uh would be a private school, non-public school or faith-based organization. And in our analysis and our background in specializing in uh educational facilities and district-owned properties, uh we anticipate uh a marketing time if we were to if the district were to lease the property. Uh would be anywhere from a year to uh to two years to find the right prospect given market conditions uh the demand for such a property. and that's to essentially uh go out to market to identify a potential tenant and to uh to come to terms with a potential tenant. We also think that it's important to when we're looking at this to understand or provide to the district the the general timeline that it would take to uh go from the day that the district
007says we'd like to proceed forward with a certain plan to the day that the district would potentially have a a prospect or a tenant at at the facility. And so we we went over that uh reasonably high level. Again, a one to twoyear uh marketing period. And then once we have a a tenant, then it would be essentially uh the tenant going through an entitlement process at the city, which would most likely be a conditional use permit or a uh special use permit. And uh going back a little bit to the current zoning of the property being uh it's a a residential zone, but the general plan is uh public quasi public. Essentially, there would be what's called a conforming reszone, which would run concurrent with any conditional use permit or special use permit process.
008So, it wouldn't necessarily add on a timeline uh for uh the entitlement process. They would run concurrent with any special use permit or conditional use permit uh to for the tenant to uh obtain their approvals. And then uh after approvals were done, we anticipate a tenant would most likely want to improve the facility and they'd have to go and come up with a plan. They'd have to take that plan to the city, get approvals for that uh building permit, and then process their construction. And we're anticipating a 6 to month 12 months uh timeline for that process depending on if they run their they process their permits uh concurrently with their entitlement process or not. Um so again we uh we talked about uh this property uh the potential users private schools, non-public schools, faith-based
009organizations. Uh we believe that it would be best operated as a single user campus as opposed to multiple different users uh for a number of reasons. Um one of them being the entitlement process would likely um be hard to manage if it was multiple users rather than a single user. and also too from a management perspective, the property is not set up as a you know an office building with certain common areas and uh very clear delineation of of areas. And so uh we've seen other districts uh pursue multiple tenants on site and it winds up usually um having some challenges uh come with it. Um, but we do also, uh, want to recognize that it's, you know, a very rare opportunity that a a complete school district uh, school facility uh, would potentially be
010available. Uh, it's a it's a large piece of land with a um, it's a large piece of land, so a big building on it uh, that could go for a number of different uses. And again with the general plan zoning designation of PQP uh both schools and faith-based organizations uh would have interest just given the limited opportunity in the market for other such uh assets and uh and also to wi with that to recreate something like that is also too uh it would be extremely expensive for a prospect to recreate something like that if they were looking to lease it. buying land, building the improvements, getting the approvals. Uh, this is this could be a a great semi-turn key opportunity for the right prospect. >> Just a quick question to clarify, um, with the PQP
011designation by the city, if they do need, um, the additional permits that are going to be required depending on the type of service they're going to deliver. um if it falls under that PQP capacity. From your experience, is the city of San Jose moving those through readily? Um so long as it's not something different from the list? >> Yeah. So in our experience, as long as you're adhering to the general plan of the PQP and you're not looking to do something outside of the uh the the PQP, uh we feel that that is a a process that has been mapped out and that's why they why they have have it. Um there is when you do your conforming reasonzoning, it does go to council, city council, even though but the at this point you are
012going to council not asking for a general plan amendment but to uh to conform with the general plan that they have adopted. So there should be some uh you're essentially proceeding in the path that that the council has mapped out for you. So another question you mentioned that you know where u the the properties um is is uh rare it's it's you know it's it's not many of this kind is available. So are you referring specifically to the beressa area because you know you have neighboring neighboring school districts that have closed multiple schools. San Jose Unifi is closing five of their schools as well. Mhm. >> Um so in in your assessment is are those because I'm trying to find out you know how quickly we need to move on these things because we have
013those properties are will come online. San Jose unified it will come online next year. >> Sure. >> Alam Rock is already there is available. They're right next door. >> Sure. >> Uh as far as being competitive uh what would be the best way to >> Sure. So if you look at Yeah. if you looked at the market today and to say what is on the market in terms of another asset like this and I'm not speaking specifically about San Jose. I'm talking about the probably the greater you know Silicon Valley uh maybe from Fremont you know and then up the peninsula I can probably you know there's probably just a handful of potential sites that are um on the market coming to market in the near term. Um so I would say it's rare in
014that aspect >> but in you know there is obviously a lot of you know uh news about school closures and potential opportunities coming up. Um there's I think there's operators who are tracking those opportunities but I think that you know depending on a whole different you know array of items uh it would be hard to say someone's holding out for X Y or Z. We can talk I think about just really what's made it to market because a lot of times the schools close but school districts don't necessarily put them out on the market. Correct. Yeah. It's a board prerogative at the end of the day. >> That's right. Uh but yeah, I mean I yeah it'll be it'll be good to be that first market, you know, just to get ourselves out there and
015uh move quickly because these processes take a long time. We don't want potential u tenants to change their minds that >> Yeah, sure. And I think another thing I would add um from what I've seen, especially with our um ability to get some new tenants recently, is I I think besides looking for available facilities, I think potential tenants are also just looking for a good stable partner. And so that's where I think your uh your district reputation and how you've worked with previous you know tenants um uh your community engagement uh you know just that general stability and and having uh a good relationship. I have found those things also significantly matter. >> Great. Um we can move on to uh Cherrywood Elementary. So the similarities between uh I should say Cherrywood is is very
016similar to Birwood uh from a a zoning uh and general plan um perspective. Uh the property is a little bit different in size. We've got uh 9.6 6 acres on uncherry wood and uh 44,000 square ft of improvements, 35,000 being permanent and about 8600 being uh portables. And so uh we can go to the next slide. the uh the general plan as I mentioned and the current zoning designation is the exact same as Birchwood uh in terms of and that again relates to uh uh the uses or potential uses for for the property. Uh we can go to the next slide. Uh we do anticipate uh if this property were brought to market uh a shorter um marketing time. We feel that the um location of uh of Cherrywood may yield um a larger pool
017of prospects. Uh we also feel that the uh existing improvements seem to be uh more up-to-date and conducive for uh both faith-based organizations as well as other educational institutions uh that are that would fall under the permitted uh conditionally permitted or with the special use permit uh under the general plan. We also too here uh you know obviously uh believe that a single user for for Cherrywood is is optimal for a multitude of reasons. Um I think also too on Cherrywood with um pickup and and drop off uh circulation in the parking lot. the single parking lot would probably also another reason just for a single single user at this this campus. So I were there any questions on on cherrywood? >> No. Okay, great. Uh so then we can move on to uh Pedmont
018Road, the former district uh facility. So this um property, this is about 22,000 square feet of of building improvements uh built out as as office uh located on 3.37 acres. Uh here the zoning designation is a for agricultural and the general plan for this property is neighborhood community commercial. So similar to birchwood and cherrywood we have a situation in which the current zoning designation uh does not match the general plan and uh any change of use on this property would require the conforming reszone process. Uh but that again that process is uh not a general plan amendment. It can be processed concurrent with any entitlements uh a conditional use permit or a special use permit. So the unlike the PQP zoning, the general plan uh neighborhood community commercial allows for a few different uses. uh
019we uh under the zoning the uh CP uh which is a commercial pedestrian commercial neighborhood or just general commercial zoning designation which is the matrix on the right. Um you can see that there was a a handful of other uses that weren't in the PQP. Um more commercial office and medical is a permitted use. Veterary connect uh veterary clinic is a permitted use. uh financial services permitted, office, general office permitted, retail bank permitted. So it's a little bit more geared towards uh commercial uses and uh since the property has been you know we've been marketing this property 3D strategies has been marketing this property for a period of time um wi with the understanding uh that we can have these you know multitude of different uses uh separate than a PQP zone uh still we
020haven't been able to identify a uh a tenant for for the facility Um we do also too see some of the constraints with this building as it was uh built as an office building and most of the usage there doesn't seem to be an office demand there. Uh we have had um demand from you know or I should say inquiries uh from uh early child early uh education users. Um I think we had a residential care user but the cost to convert the property to a different use is quite substantial. And on a lease basis, it's much more challenging for a tenant or a user to take on those costs in addition to paying paying rent. So, um the property has been exposed uh to the market for a significant amount of time with no
021viable or user uh viable uh user or prospects. Um we also find that the property for um the more commercial uses the feedback that we've been getting is it's a little bit too far east for them and away from away from the freeways. >> A question just um going back to the NCC designation. Um I'm assuming that the city provided that zone because it wasn't an existing school. was an existing district facility versus a school site. So, have you seen any other designations that the city has given other than NCC to properties? >> Uh, yes. Uh, the property uh does uh they have kind of the whole gamut of of zoning designations. Um the NCC essentially uh is a I think it's if it wasn't res if it was residential already they'd probably put a
022residential on it zoning designation but this one I think that they are looking at uh and again I didn't do the general plan but uh you know it's an office building near the neighborhood and I think the likely candidate was neighborhood community commercial and underneath under that general plan zoning designation they have the ability to classify it through the entitlement process as certain kind of levels of that neighborhood community commercial and that's the more walkable and more just general commercial but in general just >> and I I was curious about that simply because in that particular location there are town homes next to it you know they're they're residential living and so I was curious why that wasn't a selection >> sure I couldn't Yep couldn't tell you exactly You may not know the answer
023to this because I know you focus on um public schools and and that type of real estate, but around the corner was Oliver a Ranch and I'm sure they were zoned a and then now they're they sold and they're building homes. Do you know it just seems like that area is ripe for more home develop like you were saying like and do you know what that process but like did they do the parallel zoning change? Do you know? >> I I'm not I'm familiar with the property. I know the property um but I'm not sure familiar if it was uh in the general plan already as residential or they went and pursued a general plan amendment and we can find that out for you. >> Okay. I'm just curious from when we're kind of doing
024use cases of time and how long something takes or how many hurdles to go through. I know that took a long time though that was a long time coming because we were hearing about it for a very long time but I wasn't sure from a permitting and uh zoning. So, uh, anecdotally, um, it is significantly, uh, more challenging to get a a general plan amendment, uh, on a PQP zone property than potentially other properties. Um, and the city has a process, um, and they take applications, I believe, uh, twice a year for general plan amendments, uh, and those types of things to, um, entertain, uh, property owners intentions for changing the general plan of their property. >> That's a good point because from the time the the ranch closed to the time they decided to
025build single family homes, they're correct. you know, building >> uh multiple dwellings. It it didn't seem like a lot of time had passed. I mean, based on I'm I'm basing that on the the time estimates that you've shared with us, some marketing it for 2 years or a year plus. It didn't look like um the ranch conversion to a single family home took that long or or has it been I I thought it closed like in just about a year or something ago and then >> so no it's it's actually been about 3 years. >> Wow. Time flies. Oh my gosh. >> Yeah. And I think they're also building town homes. I know the city of San Jose um is no longer allowing really for single family homes to be built. So it's probably going
026to be town homes there. >> Oh yeah. Or >> I heard it was single family. It was interesting. Okay. Yeah. Which is why I was surprised because it's how how do they get the approval to build single family homes is what it is. But on on the list for the uh for the Pedmont property there. Uh so a couple of things are interesting. Financial services no retail bank. Um it's permitted to be there. Um I was thinking office medical was was something exciting. can have multiple uh you know medical offices or dental offices within a within a shared space. Uh there are many many such um properties or or buildings that have uh shared medical dental facilities within them. Um are there any anything in your is there anything in your database or anyone you
027know through your contacts? >> Sure. >> Or anyone here that knows >> any dentist that is interested? Sure. No, we we uh we work uh very closely with the commercial real estate brokerage market and we definitely did bring uh the the opportunity to a firm that specializes in medical office specifically. Um, and at a very high level, the cost to convert the building to a medical office building is quite substantial and the rents would not uh the math wouldn't work out essentially for the amount of rent that a medical office tenant could pay versus the amount of money it would cost to improve the space. Medical office uh tenant improvements are extremely costly just given all the plumbing and the the different rooms. It's it's very expensive. And so it was essentially looked at as
028cost prohibitive. >> Oh, interesting. That that's a good point because they do have those uh uh what is it called? Um you know medical when you dispose medical supplies they need to have a separate room, separate storage for that. It cannot be uh part of that. Uh so Oh yeah, that that makes sense. That that'll that'll be that'll discourage them from pursuing this uh this property. uh retail bank. We don't have a bank in that area, >> you know. >> And unfortunately, they're closing more banks than they are opening. I think that's >> Chase just opened something uh somewhere in this area. Some I was just reading about it. >> Yeah. Unfortunately, it feels like every that is the the most common thing we actually see is is banks closing nowadays. Yeah. The retail banks
029closing. >> Oh, great. Good to know. So, everybody's closing. >> Yes, I guess. I guess. Okay. But this is this property has seems to have more things allowable than our other two properties that >> that's right. Absolutely. >> Okay. >> For the the option that says live work live work uses is that um similar to what we see where retail on the bottom, apartments on top. >> Yeah, >> that's right. Um the other thing that kind of came to mind for me is what about what is your thoughts around the use case around like co-work space for startups? Yeah, we actually uh we actually have talked to a co-working uh group that uh essentially their their models now are there are these groups that go in similar to like a wei work and they go
030and uh they don't want to essentially uh they they like to do like a profit sharing model in which they have uh the landlord put up a decent amount of money and they kind of put their branding on it. Um, but again, we looked at the economics of that at a very high level and it just didn't seem to the rents that they would achieve there would not equate to a good financial deal for the district. Essentially, the amount of money that the district would have to put in or anyone would have to put in to change it to, let's say, class A very fancy offices that people want to come in and do co-working. Uh, there's other office buildings that are, let's say, a B-class or C-class buildings that are already office buildings. they
031can kind of throw a little bit of money at it and those would be more, you know, the math will work out a lot better there than taking maybe a less conducive office building and trying to create a an office building that would you know kind of warrant the co-working type space and attract um you know the new fancy you know office building for folks to come in. >> Okay. H have you seen districts convert rather than try to sell or rent? Have you have you I guess maybe it's early because everyone's in this same phase of consolidation in the state of California like it's kind of this ripple effect but converting it into something that the district would use whether it's a resource center community center build something completely different that is in you
032know in need visual I saw you know Malpus has their new visual performing arts center. >> Yes. like are you seeing either not happening yet but directionally that happening? >> Yeah, I think there's a coming up with a you know it's part of the process of you know once there's kind of we see a lot of consolidations happening and then an assessment of the facilities in general and maybe there's uh you know certain assets that are surplus and other assets that continue to be used at the district for for district services. >> That's a good good point trusty raised. I think we uh I I don't remember it might have been me and someone else uh maybe Trusty Gimenez prior might have raised this point about having a performing arts center >> in our district
033because we don't have we don't have one and that's a great idea to have one >> and we could potentially also rent it out to to people. It doesn't have to be >> leased out. So it's it's for us for our students to go there, perform, learn uh different things. It can be it could be built as a multi-use uh facility. And I'm talking specifically about uh Pedmont property. It seems like, you know, it's manageable to do that. >> Um and and use that for our you know like um strings performances, orchestra performances and things like that. and at the same time also also rent it out to um >> to to groups that want to come there, want a facility where they can gather and perform orchestra or or something uh coral performances and
034so on. Uh so, you know, thanks for bringing that up. That's an exciting thing. >> Correct. And as we get ready for the next future bond, >> that would be a significant bond project. >> Yeah. Yeah. But I mean as far as building it out I mean I mean not I wouldn't say building it because when I say building it's going to refer to cost as far as utilizing that space as similar to what we have uh at our school sites f space. Right. Right. Utilizing that as a fist space. Uh is there anything um you I maybe I'm just spitballing but I'm just trying to understand whether uh whether we can build it out we can we can make it in such a way that it could benefit our students uh to to be
035in there and and experience some of those things similar to what we have in f spaces and our >> Yeah. And again um those would be bond projects. Okay. And so our just to give you a cost analysis um all of our existing fizz spaces were um roughly half a million out of our bond program for each site. >> Right? >> So that's where that's where um all of the that's where the resources came to build that. So similarly whether we created it as a use it used the existing structure and then worked on the interior or >> yes >> knocked it down and created something new >> either one would be a bond a bond priority project. So question is uh we do have the $10 million um for that we didn't use for
036Petemont uh gym is that >> the 10 million is used >> expended. Okay. >> Yes. It was dedicated to two projects and it was the gym as well as all of their new windows. >> Got it. >> But it's been it's been exhausted. >> It's been exhausted already. So, so the only way to achieve that would be a targeted bond bond project just for this purpose >> or or another type of state facilities grant which is how we um funded the Pedmont gym. >> Oh, gotcha. >> That was not originally it was in our bond program as part of the the bond one of the bond priorities. >> Then we received the state facilities grant and so we were able to use that fund those funds instead. >> Got it. currently. >> Okay. So, we
037know who to reach out. >> Yes. >> All right. >> Okay. Yeah. I mean, that's Thank you for bringing that up. Uh, you know, Trish, it was it has been discussed in the past. I think it was vented to the back burner, but you know, having a performing arts kind of a thing similar to what Militus has built a beautiful one uh over there. So, >> yeah. And we've talked about it because our students are incredibly talented and uh when they have their showcases, everyone's crammed into the gyms or you know their multi-purpose room. So absolutely even just within our district, we've got the talent um to utilize a space like that. >> And just as a off note, please bear with me. The um I I went to the Pmon Middle musical. They had
038a pirate. >> Yes. On Friday. Yes, >> that was amazing. So something like that you having it for the larger community for everybody to enjoy >> uh would be would be great and you know yeah it's something to definitely think about uh as well but in the meantime uh let's continue this process of figuring out figuring what to do with the with the properties. >> Great. Well, that uh concludes kind of the overview and analysis uh portion of our uh of our report. Uh we also have a recommendation page which is the next steps. And uh for both uh Birchwood and Cherrywood, our recommendation is essentially to take the properties um to market for lease. doesn't necessarily uh mean that the district would be committed to leasing, but essentially uh go out to the market
039and and understand and explore what the options uh may be. in our uh recommendation for for Piedmont 1376 Piedmont is to explore options related to zoning and and non-commercial uses and uh more or less essentially have the board um provide direction in terms of what what may be possible. >> Thank you so much for the presentation. Um I have a question about the recommendations for birchwood and cherrywood. So, um, we're taking the properties out for lease, but in your process, would you be just kind of gleaning from the greater community like what the demand is or do you want direction from us to say, "Okay, for Cherrywood, like maybe look at these types of things or what does that process look like for you?" >> Yeah. So, I think the recommendation is to keep as
040broad of a net as you can. um because it would be I think that that it would be in the board's best interest to understand what all the options are and then to make decisions from there rather than to have a narrow kind of uh specific outreach to groups. I think that um it's easier to make the decisions when you know the full story. >> Any other comments questions? So as far as cert as as far as the zoning uh goes, I mean the the u the the zoning and things is is there would it with the current zoning uh from the city would would it potentially discourage um prospective tenants from pursuing this or is that doesn't matter? So I think for birchwood and cherrywood um this would essentially be geared towards uses that
041would be uh conditionally allowed or permitted or with a special use permit in the general plan zoning. Uh so um I guess the question about should we market to a certain specific I guess in that case yes we it would be geared towards uses that are allowed conditionally or uh or permitted by right it wouldn't be you geared towards uses that would not be um allowed there wouldn't be it just wouldn't be fruitful to to market the property that way but in terms of the zoning no I don't think it would discourage the users that I think it actually would be looked at as positive thing that look there is a pathway to put a a faith-based organization here or there is a pathway to put a a non-public school here whatever it may be
042I that falls in that bucket I think those are essentially those zoning designations or general plan designations throughout the city are rare um and so we we would like to showcase that as actually a positive thing for >> to know okay good to know okay thank the Birwood campus down the street is a community pool. And so I'm just curious about your thoughts on maybe some unique synergies that could be in play there as to what types of tenants might want that. Like I know the community pool is separate from the property, but just like I was just thinking about like our other properties are just smack in the middle these residential zones and you know the community is only going to accept certain kinds of use cases. They're not going to want, you know,
043uh I know this isn't part of the zoning, but like they don't want an auto like mechanic in there, right? >> Sure. Um, but I was just thinking about that because there are already like community elements in that in that area, >> recreational services, things like that. >> Yeah. So, that's something that comes to mind. And then, uh, the other question I had was um, a lot of our leases that we're looking at are like 15 years. Is that driven by us or is that what tenants want for like the stability and knowing they have a long-term home for their business? Yeah. Well, great questions on both of them. Uh for the pool use down the street or the aquatic center. Um I think that it um it could be essentially an amenity for a
044user who's potentially looking at this. I'm not sure uh how conducive the two uses could be, but it could I think maybe be looked at as an amenity. Maybe there's um if they're located here, there's the aquatics that are down the street and kind of looked at as just another positive for the location. Um the other question about the lease term, uh the lease term is uh mostly driven by the a tenant and given the fact that the amount of capital that they'd have to put into the property, uh it would be challenging for a prospect to put in a certain amount of, you know, money if they didn't have the ability or the right to stay at the facility for a longer period of time. So, uh, typically the lease term goes handinhand with
045the condition of the property. If it was already built out for a specific use, um, and, um, the tenant did not have to do any improvements. I think that the district would have the ability to have a shorter, uh, lease term if that's what the district would like, but mostly it's driven by the the tenants given the amount of capital that they would have to invest in the property. >> And I also have one last question for I know you have to leave soon, but I wanted to ask specifically about workforce housing. I've been a real big advocate for housing, workforce housing, land leasing, and so I wanted to ask about your expertise in that area and what your recommendation could be for, um, potential site for workforce housing as well. >> Sure. So, um,
046we are not experts in in in workforce housing. Um, so I'll start with saying that. But, uh, given the these three sites, if the question is is look, if there's these three sites here, which one could potentially look look for for workforce housing? Um, I think my opinion would probably be uh from a perspective of your other two campuses being uh general plan amendment uh general plan being PQP. Um, and probably not having the ability to do an amendment there to that general plan would lead me to then say those are school district campuses that could be leased out and we're having trouble with leasing Pedmont. Maybe that would be, you know, shifting the conversation. If you are evaluating a workforce housing site, maybe that should be Piedmont given the inability to lease the property.
047>> Thank you so much. Are there any other last questions as well? No. Okay. And then we can continue the conversation too up here. Thank you, Dan. We know you've got to go. We appreciate you. Follow up if we have additional questions. Great. Thank you again. >> And so just for the board then um if there's more discussion that's fine. Um but we do also just want to get clarification property by property uh what you'd like for us to do in terms of moving forward based on the information we heard tonight. So I think looking at the first two since they're similar both of the Birchwood campus and the Cherrywood campus, we have not put those out to market. So we, you know, are looking for uh board direction to say go ahead. Let's let's
048see what comes and we'll we're certainly ready to do that. Um so if there are any thoughts or feedback on those first two properties? >> Yeah, I I'll say you know, let's be first. market. Like I said, there are a lot of properties, potential properties that might be coming up. So, um let's get a feel for what's out there and then u uh you know, hopefully land on a good good uh tenant that is acceptable not just to us again. Uh you know, we want to be mindful about uh our neighborhood neighbors as well like uh Trusty Brewer mentioned here is we don't want uh any uh tenant there. it needs to be uh it needs to gel >> well with the area uh around that those those properties. So, I would say yes, please.
049Let's let's look for let's start exploring um get get the word out there that >> we have board consensus on that for those two properties. >> I I I support that too. But I through this process, I also want us to be mindful that um the Birchwood, the Cherrywood property, um they're they're considered kind of like the centerpiece of the neighborhood. Like I guess you call them parks because those areas they don't have parks. So, a lot of the children that's where they would go. So I think we need to take that into consideration with whatever we lease those property as. And uh Trusty Brewer had brought up and trusty stream brought up the performing arts center. I was thinking maybe perhaps like athletic fields too because uh I know a lot of uh organizations
050they rent out um our hour hour our hour our hour our hour our hour our our fields but maybe we could consider if we can't get potential tennis maybe just uh build out like maybe turf fields or even like pickle ball courts >> or something of that and lease those those areas out as uh for the community like soccer fields even um that's is a thought I know that there's a high demand for um sports uh fields and centers in this area. >> Mhm. >> Yeah, I I agree that those those two properties are ripe for just seeing what the market is interested in. Um, sports centers has also been kind of like in my mind for future, which is why, you know, we talk about what the future could hold. Is it performing arts?
051Like what would attract people? What does our district need to have? And what does learning look like in 10 years? I feel like we need that anchor to help make some of those bigger decisions because some districts have decided to take some of their land and convert it into highquality sports facilities so they get the revenue but also their district has what they need to to do the things they do well. Um and so kind of looking ahead and kind of seeing our land as a portfolio that versus just piece by piece and what can we do with this right now um while we have time and there's the abilities I think super important but I agree I don't think there's anything wrong with seeing what tenants and and we might find you know similar
052to Toyon in the early learning center we just might find the perfect match and it's a it's a win-win for 20 years you know you never Okay, great. I echo all those sentiments, too, but I also add a steer of, you know, I'm always a fan of, you know, early learning centers, something that'll benefit our community. And so, similar like the sports facilities, I know that at um Birwood, we also have the soccer fields available, too. And so, you know, it's something that I'm I really would like us to look into, something that's very much so oriented for community. So, those are the things I was thinking about as well. Okay. Oh, >> and of course the residential care facilities are also always great to have. I think community would be grateful if we add
053something like that too. >> Okay. >> But I know that it's a challenge for the conversion of these two sites physically as well. >> Yeah. >> Okay. So, we'll we'll move forward with that. And then with the last property, which is our uh 1376 Pedmont Road. So with that, there's more exploration, but I think that's where we could have deeper conversation, too, because in our upcoming um board meeting on the 24th, we're going to be hearing more about workforce housing during that meeting. It was good to hear from Dan that this might be a potential identified site. Could also be a potential site for some of the um community service type facilities that we're talking about that we would decide to just do ourselves. So um I think those are both deeper conversations. What was
054the other piece? Did he want us to explore any potential zoning changes here >> in this last recommendation? No, if we wanted to go that direction, >> microphone, >> uh, if you wanted to go into that direction, then we would have to look into the reszoning. So, the residential. >> Yeah, it it sounded like for Birchwood and Cherrywood that would be an uphill battle to have it reszoned as residential, right? So, >> correct. So land lease development is probably not worth pursuing. Is that is that the analysis? >> I think not that it's not worth pursuing, just that it may be a longer process because that is not how the city of San Jose has designated that property use and uh in their larger general plan. So we would be looking at requesting from them
055to amend their plan for us to make a change. Um, that's why he was recommending we work within the PQP qualifiers. >> Okay. >> Now, with the district office property, as you see on the listing and the chart, there's a lot more variety. >> It's just a matter of market timing, I think, and, you know, the the clientele being ready for that. Um what we keep hearing um from those that have come through the facility and we heard it again from Dan tonight is just the complications of retrofitting that building for whatever service the tenant would want to deliver. So given those obstacles, I think um it does warrant us to be more creative about usage of that property andor land in terms of thinking about um other uh ways we would use it as
056a district potentially. >> Yeah, I agree. I mean, I'm supportive of exploring what it would take to update this to have it be available for like the performing arts center or for housing specifically. I think in that area, it's a lot of housing and you know, a lot of people need housing right now. And so that's why I'm most interested in that. And I also just wanted to add a caveat too. Um, for the other two sites, if we're not able to find a tenant within a year, I really think that we should go back and pivot and see what other things we can do and maybe even change designation on those, especially if it's not working, right? Like we don't want the property sitting for like >> right >> so many years and we're
057not doing anything. So, wanted to just add that too. And since this property specifically has been sitting for a very long time, I think now is the time to look at um changing that designation to make it something different. >> Building on Qua's comment about sports facilities, can you guys educate me on So Birchwood I know has the soccer field and has that large playground and grass. Cherrywood I'm not as familiar with. Is there an opportunity to do both where like we might find a tenant but then we could also put things in place that would be of service to the community, a source of revenue and and carve that out? >> Yes. So that's up to us in terms of how we design the lease agreement and we definitely have that prerogative. We just
058need to find a tenant who's willing to allow for that. So, for example, um you know, we have an existing tenant who wanted full use of the property um based on the service they're providing. Uh they felt that was very important and had concern with public having access to the fields. >> Okay. Is that >> So, so it just varies >> for our exist like the Toyon and the Lane View campuses >> for current. >> Okay. So, because usually when we do our lease agreements, we do it for entire property, not just facilities. But that's to our discretion, as I said, and um I heard the priority that that would be our preference. We just have to find a tenant who's willing to still have those grounds be accessible in that way because they're also
059investing even on that land. So, for example, you've seen at Toyon, they they redid the playgrounds. That that's th that was their funds that they utilized to redo that work. Any other comments, thoughts? Okay. Okay. I feel we have what we need. >> Okay. All right. Thank you so much. And it is now 7:48 p.m. and our meeting is adjourned.