San Rafael City Schools

District Surplus Properties

Sept. 24, 2025 Update
Board Approves Resolution Regarding Sale of MacPhail Site

Review of Surplus Properties and Recent Process
In early 2024, SRCS began the process to engage our community regarding four District-owned surplus properties. While the District does not have any current or anticipated future educational use or need for the sites, we understand the properties are an important part of our District and greater community. They are also considerable assets, and it is the District’s desire to make the highest and best use of these properties to benefit our students, our community and the financial health of the District.

It had been many years, decades for some, since the District has gone through a formal process to gauge interest from the community on these properties. Therefore, the District explored interest from nonprofits and public entities only, who might be interested in using or acquiring these sites and asked for written offers of intent to purchase, lease or lease with option to purchase.

As part of last year’s process, we were pleased that several groups submitted proposals for the various sites; responses were sent, and good-faith negotiations ensued. As a result, the SRCS Board of Education approved two leases for the Old Gallinas site: one with WildCare, an animal rescue organization, and the other with Gallinas Valley Little League. We are excited to continue these partnerships with two organizations that serve our community.

Regarding the MacPhail site, the District initially received two eligible offers. After months of extended good faith negotiations, the District was not able to come to what we believe is an acceptable purchase agreement for the site; it wasn’t until recently that negotiations concluded with a local private family foundation. We appreciate their interest and engagement, but we remain committed to our duty to our students to ensure that the property is only sold at fair market value.

As discussed through this process, funds from the sale or lease of a property must go towards capital improvements and / or ongoing facility maintenance in the District. We are grateful to have been able to significantly upgrade our schools in recent years, but rising costs have meant that unfortunately there are many projects that will not come to fruition without additional funding, especially for needed projects in our elementary schools.

Even with these rising costs, the District has still been able to accomplish significant capital improvements over the last few years to enhance the learning and education of our students. We’ve improved and modernized our schools through new buildings, classrooms, labs and equipment and extensively renovated schools and classrooms throughout the District. Some of the completed major infrastructure improvements include:

Completed: SRHS STEAM building (science, technology, engineering, arts and math); TLHS gym; TLHS career technical education (CTE) structure; wellness centers and student commons at both high schools; renovated sports fields and facilities; new or completely renovated classroom buildings at middle and elementary schools throughout the District; and more.
In progress: New or renovated transitional kindergarten classrooms and play spaces at several of our elementary schools; aquatic centers at both high schools; a new Davidson multi-purpose building; and more.

Resolution Regarding MacPhail Sale and Next Steps
After completing the initial steps through a thoughtful process, the SRCS Board of Education will now focus on the potential sale of the MacPhail property. The District has determined that concentrating efforts on a single property is an efficient way for staff and the Board to maximize its use and engage with the community.

At its meeting on Sept. 23, the Board discussed the next steps of the potential sale of the property. They approved a resolution declaring the intention to sell the MacPhail surplus property. The District plans to issue a public bid packet in mid-October 2025 to all interested bidders.

The resolution outlines these items and more in great detail, including that:

Written, sealed bids must be received to SRCS by 5 pm on January 23, 2026. Oral bids meeting the requirements may be made at the public meeting.
The minimum bid shall be no less than $6 million.
At the Board’s open meeting on January 27, 2026, the Board will receive, open, examine and consider, including accepting or rejecting, all received, sealed bids to purchase, and any eligible oral bids made at that time.
The Board shall make final acceptance of the highest and best bid or reject all bids.

The District will continue to share information and seek feedback from the community as the process advances, and we remain dedicated to transparent decision-making now and moving forward if the Board considers moving forward with a bid. To provide information to groups near the MacPhail property, the District has contacted the Santa Venetia Neighborhood Association, the Northbridge Homeowners Association and other local stakeholders. District leadership is open and available for discussions with the neighborhood groups and the District is committed to regularly posting updates on our website. Additionally, the District has also reviewed and is familiar with the Santa Venetia Community Plan.

The MacPhail surplus property is owned by the SRCS Elementary School District. It covers about 9.76 acres and is located on Vendola Drive in the Santa Venetia area of San Rafael. MacPhail was declared surplus in 1979 by the Board following the recommendation of a 7-11 Committee. It was reaffirmed as a surplus property three times after that, including most recently in March 2024.

For questions, please contact business-services@srcs.org.

Previous Updates

Review of Surplus Properties and Recent Process
In early 2024, San Rafael City Schools began the process to engage our community regarding four District-owned surplus properties. While not being used for SRCS school purposes now or for the foreseeable future, these properties are an important part of our District and greater community. They are also considerable assets, and it is the District’s desire to make the highest and best use of these properties to benefit our students, our community, and the financial health of the District.
It had been many years, decades for some, since the District had gone through a formal process to gauge interest from the community on these properties. Therefore, the District explored interest from nonprofits and public entities only, who might be interested in using or acquiring these sites, and asked for written offers of intent to purchase, lease, or lease with option to purchase.

As part of this process last year, we were pleased that several groups submitted proposals for the various sites; responses were sent, and good-faith negotiations ensued. As a result, the SRCS Board of Education approved two leases for the Old Gallinas site: one with WildCare, an animal rescue organization, and the other with Gallinas Valley Little League. We are excited to continue these partnerships with two organizations that serve our community.

Another offer was submitted from Pazala, a local private family foundation, to purchase the MacPhail site. After months of extended good-faith negotiations, the District was not able to come to what we believe is an acceptable purchase agreement. We appreciate their interest and engagement, but we remain committed to our duty to our students to ensure that the property is only sold at fair market value.

As discussed through this process, funds from the sale or lease of a property must go towards capital improvements and/or ongoing facility maintenance in the District. We are grateful to have been able to significantly upgrade our schools in recent years, but rising costs have meant that, unfortunately, there are many projects that will not come to fruition without additional funding, especially for needed projects in our elementary schools.

Even with these rising costs, the District has still been able to accomplish significant capital improvements over the last few years to enhance the learning and education of our students. We’ve improved and modernized our schools through new buildings, classrooms, labs, and equipment, and extensively renovated schools and classrooms throughout the District. Some of the completed major infrastructure improvements include:
- Completed: SRHS STEAM building (science, technology, engineering, arts, and math); TLHS gym; TLHS career technical education (CTE) structure; wellness centers and student commons at both high schools; renovated sports fields and facilities; new or completely renovated classroom buildings at middle and elementary schools throughout the District; and more.
- In progress: New or renovated transitional kindergarten classrooms and play spaces at several of our elementary schools; aquatic centers at both high schools; a new Davidson multi-purpose building; and more.
Next Steps
After completing the initial steps through a thoughtful process, the SRCS Board of Education will now focus on the potential sale of the MacPhail property. The District has determined that concentrating efforts on a single property is an efficient way for staff and the Board to maximize its use and engage with the community.

The Board is scheduled to discuss the next steps of the potential sale of the MacPhail property at its meeting in Open Session on Tuesday, September 23, at 6 pm at the District Office (310 Nova Albion Way).

The District will continue to share information and seek feedback from the community as the process advances, and we remain dedicated to transparent decision-making now and moving forward if the Board considers moving forward with a bid. To provide information to groups near the MacPhail property, the District has contacted the Santa Venetia Neighborhood Association (SVNA), the Northbridge Homeowners Association and other local stakeholders. District leadership is open and available for discussions with the neighborhood groups and the District is committed to regularly posting updates on our website. Additionally, the District has also reviewed and is familiar with the Santa Venetia Community Plan.

If you have any questions, please email Business-Services@srcs.org. Thank you!
On behalf of the San Rafael City Schools District (SRCS), we are providing an update to this group of interested community members on the status of the district’s surplus properties.

The SRCS board held a closed session discussion with district staff and legal counsel during the October 28, 2024 board meeting related to the negotiations process for the following surplus properties: (1) 1565 Vendola Drive; (2) 251 N. San Pedro Road; (3) Approx. 16.87-acre southern portion of 25 W. Castlewood Drive; and (4) Approx. 1.1-acre northwest portion of 35 Union Street, regarding potential negotiations with the following parties: (1) Pazala; (2) North Bay Aquatics; (3) Gallinas Valley Little League; and (4) Wildcare.

We would like to share that during the October 28th, 2024 board meeting, the SRCS board approved lease agreements with both Wildcare and the Gallinas Valley Little League at the Old Gallinas property. We are excited to continue these partnerships with two organizations that serve our community.

Additionally, as reported out at the October 28, 2024 board meeting, the SRCS board directed staff to extend the “good faith negotiations” period until the end of the calendar year (December 30, 2024) at both the MacPhail and Glenwood properties with Pazala and North Bay Aquatics. No decisions other than to continue these discussions have been made by the board at this time.
San Rafael City Schools and its Board of Education (the “District”) wish to thank those who submitted written offers during the priority offering period for the sale, lease, and/or lease with option to purchase one or more of the District’s four surplus sites (MacPhail, Old Gallinas, undeveloped Glenwood, and Corp Yard Sites). Once the priority offering period closed on May 31, 2024, it was necessary for the District to confirm whether the offers received were eligible for consideration (from public entities or non-profit charitable/public benefit corporations) and responsive (whether the requisite criteria set forth in the priority offering notice was met). We appreciate the community’s patience during this process.

The Board was presented with the written offers on June 10, 2024, and after careful consideration, gave direction to District staff on June 17, 2024. On June 21, 2024, the District issued responses to those who submitted an offer(s). For the MacPhail Site, the District issued two non-binding counter-offers, and one notice of ineligibility. For the Old
Gallinas Site, the District issued two non-binding counter-offers and three rejections. For the Glenwood Site, the District issued two non-binding counter-offers, one rejection, and one notice of ineligibility. For the Corp Yard Site, no compliant offers were received, however the District is engaged in discussions with a local government entity regarding this Site. The negotiation period for all four Sites runs until September 15, 2024.

Please be advised that no decisions regarding next steps in the surplus property disposition process for the Surplus Sites have been made beyond the priority offering negotiation process. Nor does the District’s issuance of a counter-offer bind the District into completing any transaction. Likewise, if the priority offering negotiation process is unsuccessful for one or more of the Sites, it does not necessarily mean the District will be commencing the public
bidding process for any or all of the Sites. The District values community input and transparency, and will continue to provide regular updates on the District’s Surplus Property webpage and via email to those who have requested notice.

Again, thank you for your continued interest in this process.
Dear San Rafael City Schools Community,

Our District’s school campuses and other staff sites are bustling daily with student, teacher and staff activity. Additionally, the District owns other properties that are either currently under short-term leases or are not being used by the District or its schools: McPhail, Undeveloped Glenwood Site, Old Gallinas and the North Corporation Yard. While not being used for SRCS school purposes for the foreseeable future, we understand these properties are an important part of our District and greater community.

It has been many years, decades for some, since the District has gone through a formal process to gauge interest from the community on these properties. We recognize the sites are assets to the District, and they also hold value and use to many of our respected partners, community groups and other users, whether through formal agreements or otherwise. It is crucial to us to renew our engagement with the community, as input is vital in shaping the future of these sites.

As an initial step, the SRCS Board of Education reaffirmed the surplus designation of the four properties at its meeting on March 11. Board action declaring a property surplus, or reaffirming that a property continues to remain surplus, does not mean that it necessarily will be leased or sold; the Board must take subsequent action declaring its intent to lease or sell a surplus property if it determines it wishes to do so. The Board has not taken such action, and at this time, the Board is simply reaffirming that these properties remain surplus.

This action did open the door for the District to do due diligence and solicit interest in the properties, but we must follow a statutory process. This process outlines various ways the District could move forward (lease, sale, lease with option to purchase) to potentially provide the Board with numerous options to consider if they choose. This will allow the Board to make an informed decision about if and how to move forward with one or more of the sites.

As part of this process, the District voluntarily sent priority offering notices to nonprofit charitable / public benefit corporations and public entities, including City and County park and recreation departments. It is important to emphasize that the Board is solely seeking interest from public entities and eligible nonprofit entities at this time to determine current interest and facilitate informed decision-making in line with previously expressed community input regarding future use of the sites.

The District also understands that there may be many outcomes per individual property, including maintaining status quo; enhancing existing partnerships in new ways through leases; entering into a new agreement with a public entity or nonprofit; or other. We look forward to receiving written responses from public entities and nonprofits who are interested in using or acquiring these sites, and engaging in further conversations with them about how these properties might potentially be used to benefit our students, our community and the financial health of the District.

We are committed to keeping our community informed through this process. You can visit our website to learn more, which contains more background; a frequently asked question document; details for each property; recordings from public Q&A sessions; and more. This webpage is frequently updated. Moreover, we are dedicated to transparent decision-making and community input and participation if we come to a point where we are considering any significant changes or new uses for these important sites.

Sincerely,

Carmen Diaz Ghysels
Superintendent

Letter also linked here
Click here for Frequently Asked Questions (FAQs) regarding the surplus properties.
Recent Declaration of Surplus
At its March 11 meeting, the SRCS Board of Education reaffirmed the surplus designation of four district properties - McPhail, Glenwood Marsh, Old Gallinas, and the North Corporation Yard.

Board action declaring a property surplus, or reaffirming that a property continues to remain surplus, does not mean that it necessarily will be leased or sold. The Board must take subsequent action declaring its intent to lease or sell a surplus property if it determines it wishes to do so. The Board has not taken such action, and at this time, the Board is simply reaffirming that these properties remain surplus.

Authorizing District staff to solicit interest in various disposition mechanisms (lease, sale, lease with option to purchase) provides the Board with numerous options to consider. This will allow the Board to make an informed decision about whether to retain or dispose of one or more of the sites in the future.

Priority Offerings
In order to get a better idea as to how our community feels about these current sites; to gauge interest in the properties; and to be diligent in the process, the District voluntarily sent priority offering notices to nonprofit charitable/public benefit corporations and public entities, including City and County park and recreation departments.

Written Offer Content
- Written offers of intent must:
  - Identify the surplus site that is the subject of the offer;
  - Notify the District of its intent to purchase, lease, or lease with the option to purchase the site or portion thereof;
  - Include price or lease payment offer; and
  - Include any other information relevant to the offer
- Only nonprofit charitable/public benefit corporations and public entities, including City and County park and recreation departments no later than May 31, 2024, 5pm.
- Mail to San Rafael City School 310 Nova Albion Way, San Rafael, CA. 94903 or business-services@srcs.org
Public Q&A Sessions
We are hosting public informational meetings for questions and answers for each property. All meetings take place at the SRCS District Office, 310 Nova Albion Way, in the Board room on the second floor.
- McPhail Site: Monday, April 29, 5 – 6 pm
- Glenwood Site: Monday, April 29, 6 – 7 pm
- Old Gallinas Site: Tuesday, April 30, 5 - 6 pm
- Corp Yard Site: Tuesday, April 30, 6 - 7 pm
The sessions will be recorded for those unable to attend.

Background
All four sites have previously gone through the 7-11 Committee process, in some instances numerous times. Reconvening a 7-11 Committee again for each site is not required. Moreover, the actions under consideration are consistent with the 7-11 Committee recommendations previously made, thus any additional benefits that might be gained from repeating this process, again, would be minimal, if any.

Summary
While the District is not required to reissue priority offering notices for these sites that previously went through 7-11 process, the District’s Board believes that soliciting current interest in all four sites simultaneously from public entities and nonprofits is the best way to determine current interest and facilitate informed decision making.

It is the District’s desire to make the highest and best use of these properties, which could include many outcomes per individual property, including maintaining status quo; enhancing existing partnerships in new ways through leases; etc. We look forward to receiving written responses from public entities and nonprofits who are interested in using or acquiring these sites, and engaging in further conversations with them about how these properties might potentially be used to benefit our students, our community and the financial health of the District.