San Mateo rejects property donation

Thelma Lilienthal, who owns the property, initially offered to donate it to San Mateo only along with an $8 million endowment for upkeep of the property, which would become publically accessible. Councilmembers welcomed that offer.

But Lilienthal has since changed her mind and is now proposing both San Mateo and Hillsborough own and manage the property. Lilienthal is also now proposing a reduced $5 million endowment that wouldn’t go directly to either city, but to the trustee for the estate in perpetuity to be used for capital improvements and not operations. The proposed endowment has dropped as a result of changes in the economy as well as recent capital investments made to the property, according to city staff.

While potential programming for the property was never decided, staff is estimating it would cost the city $100,000 a year to manage the property even if it was used for revenue generating events.

San Mateo councilmembers are not interested in the new offer.

“The way it was originally proposed is very different. I was pretty comfortable with it being donated to just [San Mateo] and for us to maintain it with that money and not have a trustee, but this is a whole other thing. … It’s not going to work with these current terms,” said Mayor Joe Goethals.

Councilman Rick Bonilla agreed.

“I think 3.24 acres is not big enough for both San Mateo and Hillsborough to be involved in trying to work all these issues out,” he said. Bonilla also said the property has insufficient parking and he anticipates disagreements with Hillsborough on how the property should be used. “We’re two different places and at this point I just don’t think we can afford to take it on. Unless they want to change the way they’re doing it, it’s no good for us.”

San Mateo officials have been interested in using the property primarily for events, including conferences and weddings, while Hillsborough wants to use it as a daytime park as there is little common open space elsewhere in the town.

Vice Mayor Eric Rodriguez said meetings last year about San Mateo taking on the property made him ecstatic, but was saddened by the new proposal.

“It would prevent us from fulfilling Ms. Lilienthal’s vision for that property and it doesn’t make sense for San Mateo,” he said. “It’s an amazing home, amazing tea garden, amazing grounds. I just hope it remains open to the public.”

Councilwoman Diane Papan said the new terms concern her because she feels the cities couldn’t reconcile their different visions for programming and because San Mateo might in the future be asked to contribute more money to it.

“Where it got tricky for us was a different need in programming and also a different size in city coffers,” she said. “I got concerned if down the line more money was needed and the size of our coffers might be called upon and not in equal fashion.”

Goethals suggested Hillsborough will likely move forward with the proposed property donation.

“In the current form it sounds like Hillsborough is excited to move forward and if they want to take this on I wish them well and that’s good for them,” he said.

The Hillsborough Town Council will discuss the future of the property in June.

zachary@smdailyjournal.com

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