City Council Statement with the Release of the Cubberley Appraisals

City Council Statement with the Release of the Cubberley Appraisals

Published on October 14, 2026

City Council Statement with the Release of the Cubberley Appraisals

As noted in the Council's October 5 statement, in 2024 the City and PAUSD entered negotiations to agree upon a fair price for the 7 acres of Cubberley buildings owned by PAUSD.

The City based its offer on 2024 property appraisals of $43.6-$60.2 million that it commissioned. The District countered with a valuation of $90 million based on the site's potential value to interested third-parties under long-term leases, including legally permitted uses for private schools. Following protracted negotiations, the City and the District ultimately agreed on a purchase price of $60.65 million (2024 dollars), equivalent to $65.5 million for a 2027 purchase date.

The City's appraisals evaluated the value of its adjacent city-owned 8-acre Cubberley parcel and scaled that figure to estimate the value for the District's 7-acre portion. The initial appraised value was $60.2 million. Because the wide range of comparable property valuations made this figure imprecise, City staff provided the appraiser with additional information, resulting in a second appraisal with a value of $43.6 million that aided in the City's negotiating position.

Concurrently, PAUSD conveyed to the City representatives that two private schools contacted PAUSD expressing interest in the 7-acre property long term. Based on their existing lease rate for a smaller private school on the 7 acres, the District estimated that a long-term private school lease could generate up to $90 million over the next decade which was the valuation basis for their asking price.

Ultimately, the City and District agreed on a purchase price of $60.65 million in 2024 dollars, which escalates with inflation to a 2027 purchase price of $65.5 million.

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