BILL ANALYSIS
Bill No: AB
1517
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Dean Florez, Chair
2007-2008 Regular Session
Staff Analysis
AB 1517 Author: Jones
As Proposed to be Amended: February 26, 2008
Hearing Date: February 26, 2008
Consultant: Art Terzakis
SUBJECT
Surplus State Property: 58th Street Armory in Sacramento
DESCRIPTION
AB 1517 authorizes a long-term lease of National Guard
Armory property in Sacramento to St. Francis High School
and the Diocese of Sacramento. Specifically, this measure:
1. Authorizes the Department of General Services (DGS),
with the consent of the California National Guard, to
lease at fair market value for up to 50 years
approximately six acres of state property in Sacramento,
known as the 58th Street Armory, to St. Francis High
School and the Diocese of Sacramento.
2. Makes it explicit that net proceeds received from the
lease of the property must be deposited into the Armory
Fund and be available for appropriation by the
Legislature pursuant to specified provisions of law.
EXISTING LAW
Existing law generally requires the Director of General
Services (DGS) to perform various functions with respect to
state property and provides for the sale, lease, or
transfer of surplus state property.
Existing law requires legislative approval for the sale of
state property or leases of state property that exceed five
AB 1517 (Jones) continued
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years duration.
Existing law authorizes DGS, with approval of the Military
Department, to exchange for a replacement facility, state
property known as the 58th Street Armory located in the
City of Sacramento, to the Roman Catholic Bishop,
Sacramento (St. Francis High School).
Existing law also permits DGS to lease to the Diocese of
Sacramento, for a period not to exceed seven years,
approximately 1.4 acres of real property located at 1013
58th Street in the City of Sacramento (known as the
Sacramento Armory) for purposes of constructing a parking
lot, upon terms and conditions deemed to be in the best
interest of the state.
Existing law authorizes DGS, with the approval of the
Adjutant General, to lease for fair market value (up to 99
years) any real property held for armory purposes, subject
to approval in statute by the Legislature. Existing law
also requires that the proceeds from the sale or lease of
armories be used for maintenance of existing armories and
acquisition or construction of new armories.
BACKGROUND
Summary: The author's office notes that St. Francis High
School and the Diocese of Sacramento have been working with
the California National Guard for nearly a decade to
achieve two goals common to both organizations: (1) to
obtain funding in the federal military budget for a new
Sacramento Readiness Center and (2) to provide St. Francis
High School with the opportunity to acquire the 58th Street
Armory property in Sacramento to accommodate remodeling and
expansion of its existing campus located adjacent to the
Armory.
The author's office points out that as a result of these
efforts, the National Guard secured approximately $23
million in federal money to construct a new Sacramento
Readiness Center which is scheduled to be completed in the
last quarter of this year. The proposed lease of the 58th
Street Armory to St. Francis is intended to ensure
long-term use of the property and allow the School to
continue with an expansion of their campus as soon as the
National Guard moves to their new facility which is located
in the area formerly known as the Sacramento Army Depot.
AB 1517 (Jones) continued
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Comments: Conveyance of the Armory property to St. Francis
High School by alternative means was included in recent
bills that were unsuccessful (see "related legislation"
listed below) due to issues pertaining to an exemption from
the California Environmental Quality Act (CEQA).
Up until a few years ago, surplus property bills have
contained "boiler plate" CEQA exemption language as a
safeguard against frivolous CEQA actions related to
property transactions that do not require CEQA review under
existing law. In recent years, the CEQA exemptions have
been removed or not included in various surplus property
bills and the Governor has vetoed these measures because of
his concern that not including a CEQA exemption would
result in significant CEQA-related compliance costs.
Technical Amendment: The author will offer the following
technical amendment in committee on February 26th: On page
2, line 6, strike the word "Archdiocese" and insert the
word "Diocese."
PRIOR/RELATED LEGISLATION
SB 567 (Aanestad) 2007-08 Session. The annual surplus
property bill sponsored by the Department of General
Services. (Placed on Senate Inactive File by Author)
AB 1219 (Jones) 2007-08 Session. Contained three elements
pertaining to state property transactions as follows: (1)
granted authority for an exchange of state-owned property
and property owned by the City of Sacramento, located in
Old Sacramento, for the purpose of consolidating the
state's holdings; (2) granted authority for an operating
agreement between the state and a non-profit entity for
construction and operation of a children's museum on the
1849 scene site in Old Sacramento; and, (3) revised two
previously authorized transactions between the state (58th
Street Armory in Sacramento) and the Diocese of Sacramento
(St. Francis High School). (Vetoed by Governor on the
basis that it did not contain a CEQA exemption. The
Governor stated that "there is no reason to apply CEQA to
properties that are being sold; CEQA is properly applied
when the use and zoning of real property is changed not
when it is simply sold.")
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AB 1123 (Berg) Chapter 625, Statutes of 2007. Granted the
Director of DGS the authority to lease the Healdsburg
Armory to the City of Healdsburg for up to 30 years at fair
market value.
SB 276 (Denham) 2005-06 Session. Among other things,
authorized the sale, lease or exchange of three state-owned
parcels of real property including 33.5 acres of an unused
wastewater treatment facility located at the correctional
facility in Soledad to the City of Soledad; and, a lease
extension provision at the 58th Street Armory between the
state and the Diocese of Sacramento. (Vetoed by Governor on
the basis that the measure should have been included in the
DGS annual omnibus surplus property bill.)
AB 53 (Negrete McLeod) 2005-06 Session. The annual DGS
surplus property bill containing approximately 30 parcels
for disposal. (Died on Senate Inactive File)
AB 54 (Negrete McLeod) 2005-06 Session. The annual DGS
surplus property bill. (Vetoed by Governor because of
concerns over requiring DGS to initiate a CEQA process on
the properties identified prior to any sale, lease, or
exchange. The Governor stated that "such a provision could
potentially cost California taxpayers millions of
dollars.")
SB 1645 (Mountjoy) Chapter 731, Statutes of 1998. The
annual surplus property bill that authorized DGS to, among
other things, dispose of specified parcels of property.
This measure also included provisions authorizing
conveyance of the 58th Street Armory to St. Francis High
School predicated on the school first funding a replacement
armory building of comparable size of land that the
Military Department had obtained at the former Sacramento
Army Depot.
SUPPORT: As of February 22, 2008:
Diocese of Sacramento/St. Francis High School
City of Sacramento
OPPOSE: None on file as of February 22, 2008.
FISCAL COMMITTEE: Senate Appropriations Committee
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