Redwood City campus lease deal reached

The contract stands to generate between $12 million and $14 million over the 10-year initial term for the district, which agreed in 2019 to shutter the site due to the financial challenges that have long hamstrung operations.

Terms of the deal are similar to those that were previously offered by Menlo Church, which in 2019 had tentatively agreed to pay the district $1.4 million annually over a 10-year span for use of the 5.7-acre site.

But the agreement fell apart, so officials pivoted to discussing renting the space to the Stratford School. When an initial lease with the private schools also dissolved, officials reopened the bidding process for similar uses.

School board President Alisa MacAvoy lauded the most recent agreement in an email.

“The school board decided to lease the property in order to bring in much needed funds into the school district for our students,” she said. “This is a win-win situation in that the school will be occupied and cared for by a private school that meets the requirement of the conditional use permit and is similar in use to the former school site.”

She added the district opted to lease rather than sell in case enrollment trends shift and the district needs more room for students in the future.

Though some other potential occupants such as a vocational school, high school and preschool had expressed interest in the site, Harper School was ultimately selected because the terms of use were similar to those in a permit previously approved by city officials.

When Menlo Church expressed interest in the site, some community members expressed reservations because they felt introducing a new use would interrupt the existing neighborhood.

The new occupant, Harper School, is founded by Joe Wagner, who co-founded Stratford School and helped develop the company into California’s largest private preschool and elementary school program.

Wagner started his first Harper School in St. Louis, and expressed his enthusiasm about expanding his new venture locally.

“We’re excited to open Harper School in Redwood City and look forward to being a part of the community and a good neighbor,” he said in an email.

Wagner said he expects to launch the new school in the 2021-22 school year, and said enrollment in the first year is capped at 110 students, per an agreement with Redwood City.

Ultimately, he anticipates the school will grow to its maximum capacity accommodating as many as 546 students by the fifth year.

Some terms of the lease are determined by enrollment, and rent starts low and grows over the first three years as the school population builds, according to a school district report.

Harper School will offer full- and half-day programs for toddlers, preschoolers and prekindergarten students, along with after school care. And the elementary program will start in the fall, beginning with kindergarten and expanding in subsequent years.

“There will be lots of learning by doing — solving math problems, reading and writing, playing musical instruments, coding and building robots,” Wagner said in a prepared statement. “The school day will be fun and challenging for Harper students.”

Assuming the lease agreement with the Harper School is not interrupted, the deal stands to culminate a facilities overhaul many years in the making by school district officials.

At the former Hawes site, officials agreed in 2019 to another 10-year lease with early education providers Kidz Konnect, Building Kidz and L’Academy. The assumed annual revenue is $1.2 million collectively, which could generate $12 million over the term of the deal.

Officials also agreed to allow Creative Learning Center, a preschool for students with autism and developmental disorders, to lease the former Orion campus, which stands to generate about $4 million over the course of a seven-year agreement.

Trustees have also agreed to consolidate charter schools Kipp Excelencia and Connect on the former site of Fair Oaks school, which was merged with Taft Elementary School during the district reconfiguration in 2018. The district does not stand to gain financially from the agreement though, because charters pay a lower rent amount set by the state of approximately 10% market value.

Looking ahead, Wagner said Harper School is ready to begin serving Redwood City.

“We’re excited to open Harper School and offer parents and students a forward-thinking approach to learning in a safe and nurturing environment,” he said.

And MacAvoy appreciated the opportunity to generate resources for district students.

“The money saved on additional facilities’ expenses and revenue from the rent can be used for educational programs for our own local, public school students,” she said. “And, the school district maintains ownership of the school site in case the community needs it in the future.”

austin@smdailyjournal.com