Santa Rosa committee recommends phased surplus, long-term leases and a 20% reserve rule

An ad hoc committee of the Santa Rosa City Schools recommended that several district properties be designated for phased surplus and that the district prioritize pursuing community-use agreements with the city before disposing of sites.

The recommendation, moved by a committee member and seconded by another member during the meeting, asks staff to pursue community use on all or part of sites where "financially and programmatically possible," explore long-term leases without purchase options (commonly cited as up to 99 years) as a disposition tool, and direct a portion of any long-term lease revenue into district reserves and capital accounts.

Why it matters: committee members said district facilities that sit vacant may suffer vandalism and operating costs, while a long-term revenue stream could help cover deferred maintenance and capital needs. The committee framed a three-phase approach — immediate priorities, a 3–5 year phase, and later disposition — designed to avoid oversaturating the market and to preserve options for middle-school athletics and other uses.

What the committee recommended and who pressed it
- A committee member moved that, after surplus is declared, the district first pursue community use through the city on all or part of a site when feasible; that motion was seconded and discussed as the committee’s primary priority. Committee members said this approach would give the city a first chance to develop community benefits such as park or recreation uses before the district pursues revenue leases or sales.

- Members discussed long-term leases as a holding-and-revenue strategy. One member summarized the legal and financial trade-offs and said a 99-year lease "could go to the general fund" where the lease is structured without an option to purchase; staff confirmed leases without purchase options are treated differently than outright sale and that lease revenue can, under certain circumstances, be used to support district funds.

- The committee also debated property-by-property priorities. For example, members discussed designating Brookhill and Biella as immediate priorities for community-use protection; Comstock was recommended as the first property to receive phased treatment (community-use exploration, then lease options, then market disposal), while other properties would fit different phases depending on size, location and likely market interest.

Historic preservation and specific properties
Committee members raised preservation concerns for the Lewis School building, noting its age and local historic value. One member recounted the building’s history and urged preservation; another suggested using long-term leases that preserve the historic structure and make the site eligible for historic rehabilitation tax credits as a compromise between preservation and revenue generation.

Budget and reserve amendment
A facilities director on the committee proposed — and members supported in principle — an amendment that would allocate 20% of proceeds from any secured long-term leases toward establishing a district reserve and capital outlay. The suggested language calls for the district to use 20% of lease revenue to meet a 10% reserve target within five years and then direct those funds to capital outlay and deferred maintenance thereafter. Committee members debated the precise split, timing and oversight but largely endorsed the concept as a way to protect ongoing facility needs while enabling longer-term revenue strategies.

Process and limits
Committee members and staff repeatedly noted the committee’s recommendation itself does not change legal title or effect final disposition; the committee’s report is advisory and any formal surplus, lease or sale will require subsequent board action and compliance with applicable statutes and procedures. Staff said the committee’s report and recommended language will be folded into a rough draft to circulate to members for review before the committee’s next meeting.

Key quotes
"I'm a facilities director. My whole life has been dedicated to facilities," said the facilities director, describing concern about funding shortfalls and deferred maintenance.

On leasing, a committee member summarized the disposition approach: "Property would be disposed through a long term lease of up to 99 years without an option to purchase for revenue production," while emphasizing the priority of trying city partnerships first.

What happens next
Staff will incorporate the motions and friendly amendments into a draft recommendation for the committee to review; members discussed scheduling follow-up meetings in late May or June. Final action on surplus, lease or sale requires the governing board’s consideration and any required legal or regulatory approvals.

Reporting note: The committee referenced the Naylor Act and state funding constraints in their discussion and cited examples of recent third-party leases (including the El Molino example) as part of their reasoning. The recommendation includes multiple property-specific phasing instructions and a proposed financial allocation formula for lease revenue.