Saratoga News

Cover Story

Photograph by George Sakkestad

The city purchased what is now known as the North Campus property for $4.5 million in 2002 from the Grace Methodist Church. Three council members, including Kathleen King (pictured), Nick Streit and Norman Kline, have voted to sell the property for $6.75 million to a developer who will build nine homes on the site.

'J' Day

Voters will go to the polls June 6 to determine the fate of the North Campus property

By Jason Sweeney

Each side has argued its case. A spirited campaign has been fought with accusations of unethical behavior made by both sides. As the election draws near, the fate of Saratoga's North Campus now lies in the hands of Saratoga voters. On June 6, if a majority of Saratogans vote "yes" on Measure J, the 2.5-acre former church property on Prospect Road will be sold to developer Majid "Mike" Masoumi for $6.75 million. Masoumi intends to build nine homes on the parcel. The city would bank the money, making a $2.25 million profit on the $4.5 million purchase made in 2002.

If the "no" votes win, the sale of the property to Masoumi would be nullified and the city would not be allowed to sell the North Campus for one year. The city council and the citizens of Saratoga would then have to decide what to do with property.

Ester Chen, who lives on Sculley Avenue a few houses away from the North Campus, has a "No on Measure J" sign in her front yard. The green and blue "no" signs are in every other yard in this part of town. "I think we should keep some facilities for community use," Chen said. "Another concern is there would be too much traffic if more houses are built."

Dave Wyandt lives on Colby Court down the street from Chen. Wyandt's back fence abuts the North Campus property. "I have mixed emotions," he said. "I can see a lot of benefit keeping it a public property. But I also see the merits of selling it. If the houses go in, it will be good for real estate values in the neighborhood. The negative side is I'll have two new neighbors right on my property line. And if the 'no' votes win and they just turn around and sell it one year from now, what's the point of doing all this?"

Roger Piazza lives on Colby Court next to Wyandt. Piazza's fence also abuts the North Campus. "My vote would be to sell the thing because it's less chancy," he said. "They've had it for three years, and they haven't done anything with it.

"I don't think the city knows what they want to do with the property. They could do something stupid with it."

The story of the North Campus has seen its share of twists and turns since Grace United Methodist Church decided to pull up stakes in 2002 and merge with the United Methodist Church in Los Gatos. Grace United made the city an offer it couldn't refuse. It offered property that housed a worship hall, classrooms, administration offices, a multi-purpose room, a parking lot and landscaped lawns for below-market value with an understanding the property would be retained for community use.

The city council jumped at the opportunity, completing the deal in just a few months. council members intended to relocate senior center programs to the North Campus and move the sheriff's office to the senior center at the civic center that also houses city hall. At the time, the sheriff's office was seeking to upgrade from its facility in Saratoga. Keeping the sheriff in Saratoga was viewed as a priority as it provided an increased police presence in town, and the lease was a source of revenue for the city.

But costs to move the senior center were higher than first anticipated. The seniors decided they did not want to move. The sheriff's office then moved to Cupertino.

Deteriorating city finances, appreciating real estate prices and a change in council membership led to the North Campus being viewed in a different light.

On June 2, the council voted 3-2 to sell the North Campus for $7 million to Masoumi, who was the highest bidder. Revenue from the sale would go to city infrastructure, such as gutters, sidewalks, roads and upgrades to existing buildings at the civic center.

But before Masoumi could sign the deal, a group called Save Saratoga's North Campus organized a petition drive to hold a referendum on the sale. With little doubt the requisite number of signatures could be gathered for a referendum, the city council decided to push things forward to the upcoming June 6 elections and let the voters decide what to do with property. Masoumi was given a discount of $250,000 along with other incentives if he agreed not to walk away from the deal before June 6.

The council reasoned if the sale of the North Campus were decided in June, the property would not become a contentious campaign issue in the November elections when three council seats are up for grabs.

The campaign

When the city council decided last year to look for buyers for the North Campus, ex-council member Jack Mallory organized the Citizens Committee to Save Saratoga's North Campus. Mallory's goal was to raise the estimated $6.5 million asking price for the property. Mallory wanted to ensure no houses were built on the land and that it would be preserved for community use.

However, shortly before the city opened the property to bidding last November, Mallory's committee had raised only $350,000. The committee threw in the towel and it seemed inevitable that the property would be sold.

Right before the deal with Masoumi was finalized, a last-minute resurgent effort by a new and well-organized group, Save Saratoga's North Campus, put the sale on hold.

The Save Saratoga's North Campus committee has been holding meetings with high turnouts. It has built a website, handed out fliers at the post office and at supermarkets, and lined city streets and lawns with its signs.

The group is determined to convince Saratogans to vote "no" on J so the church property is not developed into more homes.

One flier the group bulk-mailed to eligible voters caused controversy and allegations of unethical conduct. The flier depicted supporters of the "no" vote with corresponding quotes. However, Councilman Nick Streit was depicted in the flier beside quotes from a 2002 issue of the Saratoga News in which he defended the purchase of the property. A picture of City Manager Dave Anderson appears beside a quote from a 2002 issue of the Saratoga News in which Anderson stated the North Campus could be used to free up much needed community meeting space. Mayor Norman Kline and others called the flier misleading because it gave the perception that Streit and Anderson were supporters of a "no" vote.

In fact, Streit voted to sell the property and wrote the argument for a "yes" vote that will appear on the June 6 ballot. As a member of the city staff, Anderson is bound to remain neutral in political matters.

Not to be outdone, a "Yes on J" committee released a flier that Jeff Schwartz, a Save Saratoga's North Campus committee member, said was "blatantly illegal." Nowhere on the flier is a Fair Political Practice Number evident, required by state law. The only identification of who was responsible for sending out the fliers was a return address on Cox Avenue and website with the same information on it as the flier. The Saratoga News learned one of the backers of the "Yes on J" flier was Masoumi, the developer whose purchase of the property can go forward if the "yes" votes win.

Other than the "Yes on J" flier, citizen campaigns on Measure J have been almost exclusively a Save North Campus affair.

On May 25, backers of both sides of the issue came to the Saratoga News office to voice their views on the North Campus before Saratoga voters make their choice.

Yes on Measure J

Kline voted to sell the North Campus. Kline said when the property was purchased the clear intent was to put the senior center there and move the sheriff's office to the civic center. "The plan was actually a pretty good plan. But it didn't work."

Of the $4.5 million used to purchase the property, $3 million came from the city's General Fund while $1.5 million was taken out of the Hillside Reserves Fund. Kline explained the city had extra cash at that time, but then city finances took a turn for the worse. The state began taking money from the city. A utility tax measure in 2004, meant to raise money for the city, was overwhelmingly defeated by voters. This led to the city council making drastic cuts in services to make up for a shortfall in revenue.

"The utility tax sent a message: Live within your means and do with what you have," Kline said. He said the city is $17 million in the hole in infrastructure funding. "I think the city cannot afford two campuses."

Councilwoman Kathleen King also voted to sell the North Campus. She said the defeat of the utility tax sent a strong message. "My impression is that people want to pay for the services they use." She said the North Campus is not configured for city uses. If the "no" votes win, she said the city would have to come up with the capital to upgrade the buildings and bring them into compliance with the Americans With Disabilities Act.

Councilman Nick Streit was mayor when the North Campus was purchased in 2002. He said it was not a mistake to purchase it. "The city of Saratoga could not lose in the deal." Streit said the plan from the start was to keep the sheriff in town and move the seniors to the North Campus. He said the council knew "if things didn't work out, we could always sell."

"The economics today are totally different than when we bought that property," Streit said. He said the current civic center could use some upgrades but is sufficient to supply the city's needs. "The land there is a great facility."

Streit, Kline and King said if the "yes" votes win, the money from the sale of the North Campus would go to city infrastructure. The council had tentatively agreed at its annual retreat last February that $3.5 million of the revenue would go to pavement management, $750,000 to Village sidewalks, $750,000 to community center and senior center improvements, and $2 million to new city space at the civic center.

And if the "no" votes win?

"It's not a disaster," Kline said. He said the council would then have to decide what to do with the property, and it could still be sold further down the road. "The risk is not in the cost of maintaining it. The risk is in the lost opportunity."

Streit said if the "no" votes win, he sees a possibility of renting out the North Campus to different user groups as the council re-looks at how to make the property usable. "I think it will be something future councils will have to deal with."

No on Measure J

Councilwoman Ann Waltonsmith was on the city council when the city purchased the property in 2002. Waltonsmith and Vice Mayor Aileen Kao voted not to sell the property March 1.

Waltonsmith has been active with the Save Saratoga's North Campus committee during its campaign. She said the city did not buy the property only to move the senior center there and keep the sheriff in town. "We bought it for broader reasons," she said. "We didn't have enough space, and we don't have enough space. It was bought for social services and recreation."

Waltonsmith said it would be "penny-wise and pound-foolish" to "cannibalize city assets" by selling off the property. "The city has more money now." She said the property could be developed in pieces. "Money can be found. We need to have a discussion. Then we can go forward."

Jeff Schwartz said the property could be used for multiple purposes. "This is affordable," he said. "If 'no' wins, there will be a vigorous debate about uses." And, "It isn't a necessity to do something instantly." He said the North Campus is an appreciating property without rising costs to maintain it.

"Politicians do not take a long-run view of things," Mallory said. "It's what's on the agenda today.

"A city is not just comprised of houses. Future people will thank us for saving it and not putting nine houses there."

Although it was never in writing in the purchase contract, Schwartz voiced concern about not following through with a verbal agreement with the church to keep the property for community use.

Waltonsmith, Schwartz and Mallory have no set plans for what should be done with the North Campus if their side wins on June 6. But all agree it should be saved for community use. If their side wins, then they hope the city can come together to decide what to do with the North Campus property they are fighting to save.