Mountain View Whisman School District

Agenda Item for Board Meeting of 7/10/2025

Agenda Category:  REVIEW AND ACTION

Agenda Item Title:  (Action) Approval and Adoption of Resolution No. 02-071025 Approving the Exercise of the Option to Purchase Real Property and the Acquisition of the Real Property Commonly Referred to as 699 N. Shoreline Blvd., Mountain View CA 94043 with Assessor Parcel Number 153-24-027

Estimated Time: 

Person Responsible: 

Jeffrey Baier, Superintendent

Rebecca Westover, Ed.D., Chief Business Officer

Background: 

Background

As part of this action, the Board will review and consider whether to approve exercising the Option to Purchase Real Property (“Option”) and enter into the Purchase and Sale Agreement for Real Property with Joint Escrow Instructions (“PSA”) between the District and Mountain View Owner, LLC (“MVO”) owns that certain real property consisting of 9.84 acres located at 777 West Middlefield Road, in the City of Mountain View (“City”), County of Santa Clara, State of California (“Master Property”). The Master Property is divided into two (2) parcels: (i) approximately 8 acres (“Lot A”); and (ii) approximately 1.8 acres, commonly referred to as 699 N. Shoreline Blvd., Mountain View, CA 94043 with an Assessor’s Parcel Number of 153-24-027 (“Lot B”). MVO and District (“Parties”) entered into a Ground Lease on January 27, 2025, for Lot B (“Ground Lease”) upon which One (1) building with 144 rental residential units is located for below market employee housing.

On January 23, 2025, the District’s Governing Board (“Board”) approved entering into a Ground Lease with MVO for Lot B for below market employee housing (“Ground Lease”).  On January 23, 2025, the Board also approved entering into the Option to Purchase Real Property with MVO (“Option”), which contemplates that during the Option term, which would last until July 31, 2025, the Parties would work towards agreeing on a purchase price for Lot B and the District would perform its due diligence and determine if it would be financially prudent to exercise the Option versus continuing with the Ground Lease. On January 23, 2025, as part of its approval of the Option, the Board also approved the Form of the Purchase and Sale Agreement for Real Property with Joint Escrow Instructions (“PSA”), which, subject to further Board approval, the District and MVO would enter into if MVO and District were to come to an agreement on the purchase price for Lot B, and all other terms and conditions in the Option were satisfied by the Parties.  The updated PSA is being presented for the Board’s consideration and approval.

On April 24, 2025, the District complied with the California Environmental Quality Act (“CEQA”) by approving Resolution No. 03-042425 which determined that the acquisition of Lot B is exempt from the CEQA under the Common-Sense Exemption (CEQA Guidelines, § 15061(b)(3)) and approved the filing of the Notice of Exemption (NOE) with Santa Clara County and the State Clearinghouse.

MVO has offered to terminate the Ground Lease and sell Lot B to the District for Fifty-Three Million Five Hundred Thousand ($53,500,000; “Purchase Price”).  In order to avoid paying Ground Lease rental payments that escalate each year, to facilitate the opportunity for the District to lower its rental rates to its tenants, and to give the District greater control over the property and the EH Building, the District finds it financially prudent and in the District’s best interest to terminate the Ground Lease, to exercise the Option, to approve the District entering into the PSA, and to purchase Lot B for the Purchase Price.  Also, the District will not need to make any lease payments under the Ground Lease.  

The acquisition of real property requires acceptance by the Board and Government Code section 27281 requires that deeds conveying any interest of real estate to a public entity for public purposes shall not be accepted for recordation without the consent of the public entity evidenced by its certificate or resolution of acceptance attached to or printed on the deed.  The form of the grant deed for Lot B and the certificate of acceptance is also being presented for the Board’s consideration and approval.  The grant deed may be subject to additional revisions recommended by District’s legal counsel that will not change the intent of the deed or this Resolution and Government Code section 27281 also states that a public entity, by a general resolution, may authorize one or more officers or agents to accept and consent to such deeds.

Fifty-Three Million Five Hundred Thousand Dollars ($53,500,000).

It is recommended that the Board of Trustees approve Resolution No. 02-071025 allowing the Superintendent or designee to exercise the Option to Purchase Real Property, enter into the Purchase and Sale Agreement for Real Property with Joint Escrow Instructions with a purchase price of Fifty-Three Million Five Hundred Thousand Dollars ($53,500,000), execute the certificate of acceptance, and to take all such future actions and execute additional documents, as necessary, to complete the acquisition of Lot B.