BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           815 (Caballero)
          
          Hearing Date:  8/2/2010         Amended: 6/14/2010
          Consultant:  Bob Franzoia       Policy Vote: G O 8-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 815 would authorize the conveyance of a  
          specific property within the City of Salinas for no less than 50  
          percent of fair market value to the city for a local government  
          facility.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           Conveyance             Potential one time loss of savings  
          ($430)General
                                 in 2015
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  This bill meets the criteria for referral to  
          the Suspense File.

          Government Code 11011.1 (g) permitted the transfer of surplus  
          state property under certain conditions at a sales price not  
          less than 50 percent of fair market value.  The transfer shall  
          provide that if the land is not used for the contemplated  
          purpose during the period of 25 years following the sale, the  
          land shall revert back to the state.

          SB 856 (Governmental Organization) Chapter 258/2003, an annual  
          surplus property bill, authorized the Department of General  
          Services (DGS) to surplus property located at 100 Howard Street  
          in the City of Salinas and sell it to the city for not less than  
          50 percent of fair market value in order for the city to use the  
          property for a police station.  The property was appraised at  
          $860,000 and the city purchased it for $430,000 with the  
          condition that construction start within ten years of recording  
          the deed to the city.  The state retained the right to terminate  
          the city's right, title, and interest in the property if  
          construction of the police station had not commenced within ten  
          years of deed recording.











          The city has encountered obstacles in the development of the  
          property and an alternative location for a police station has  
          been identified in an area in need of increased public safety  
          services and facilities.  The Salinas Police Activities League  
          would like to utilize the armory facility for the home of its  
          programs and indicated it has secured a $100,000 grant to  
          upgrade the facility.

          Absent this bill, the city would return ownership of the  
          building to the state if, by approximately mid 2015, it has not  
          developed the property as a police station and the state would  
          retain the $430,000 as DGS is not required to repay the city if  
          the deed is violated.