FOSTER CITY -- The City Council has finalized the sale of an 11-acre property next to City Hall for $20 million plus $8.7 million in interest, most of which will be placed in a new, closely guarded capital fund.
The North Peninsula Jewish Campus, which operates the Peninsula Jewish Community Center and Ronald C. Wornick Jewish Day School on the site off Foster City Boulevard, had leased the property from the city, but in April the two parties reached agreement on the terms of a sale. On Monday night the council approved the sale 4-1.
The city is financing the sale at an interest rate of 3.25 percent and will receive a $1 million down payment this month followed by annual payments of roughly $1.1 million for the next 25 years. The principal and virtually all the interest will go into a new Capital Asset Preservation Fund. About $600,000 of the interest will be transferred to the general fund over the next three years to compensate for the loss of rent the campus had been paying the city for using the land.
The new fund will be reserved for property acquisition and major capital improvements. A supermajority of four out of five council members will be required to approve any changes to the governance of the fund.
Mayor Art Kiesel provided the lone vote against the sale Monday, arguing the interest rate is too low.
Contact Aaron Kinney at 650-348-4357. Follow him at Twitter/kinneytimes.