BILL ANALYSIS
AB 815
Page 1
Date of Hearing: August 24, 2010
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 815 (Caballero) - As Amended: June 14, 2010
SUBJECT : State property.
SUMMARY : Revises a previous surplus property bill to allow the
property to be used as a local government facility rather than a
police station. Authorizes the Department of General Services
(DGS) to convey the Salinas Armory located at 100 Howard Street,
Salinas, Monterey County, for no less than 50% of fair market
value to the City of Salinas (City) for the development of a
local government-owned facility rather than a police station.
EXISTING LAW :
1)Authorizes DGS, with the approval of the Adjutant General, to
convey the Salinas Armory, for no less than 50% of the fair
market value, to the City for the development of a police
station, as specified.
2)Requires DGS to perform various functions with respect to
state property, and provides for the sale, lease, or transfer
of surplus state property, upon authorization by the
Legislature. Each state agency is required to annually review
proprietary state lands under its jurisdiction to determine
what lands are in excess of the agency's foreseeable needs and
to report their findings to DGS.
3)Provides criteria for state agencies to use in determining and
reporting to DGS lands in excess of the agency's foreseeable
needs. Under existing law, DGS is responsible for determining
if surplus land is needed by any other state agency. The law
also provides that if the land is not needed by another state
agency, the property shall be offered to local governments for
local government facilities, parks and recreation, open-space,
low or moderate income housing, and local schools.
4)Requires, among other things, that the proceeds from the sale
of surplus state property, with specified exceptions, be used
to pay the principal and interest on the Recovery Bond Act of
2004.
AB 815
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FISCAL EFFECT : Unknown
COMMENTS :
Purpose of this bill . According to the author's office, "This
bill seeks to make a technical change of use regarding a piece
of property known as the Salinas Armory, which was originally
conveyed to the city at half of market value with the condition
that it must be built into a police station. Since 2003, when
the property was first conveyed, the City has not had the funds
to move forward with construction. Instead, the City would like
to change the code to a 'local government-owned facility' to
permit a community center to be built in its place."
Background . SB 856 (Committee on Governmental Organization),
Chapter 258, Statutes of 2003, authorized DGS, with the approval
of the Adjutant General, to convey the Salinas Armory, for no
less than 50% of the fair market value, to Salinas for the
development of a police station, as specified. In August 2005,
the City purchased this property from the State.
While the author's intent is to repurpose the Salinas Armory
property for use as by the Salinas Police Activities League
(PAL), a non-profit organization offering free educational and
recreational opportunities to youth, this bill is written to
offer sell the property for development of a local
government-owned facility. This bill would allow for the City
to utilize the property as it sees fit. This language appears
to be in conflict with SB 856 and would require the City to
revert the property to the State because the sale of the Salinas
Armory was contingent upon its use as a police station.
Although the Salinas PAL clearly provides a community benefit,
generally non-profits (other than affordable housing
corporations) lease or purchase facilities based on fair market
value and do not receive below fair market value rates.
Existing law (Government Code Section 11011.1) requires DGS to
determine if surplus land is needed by any other state agency.
The law also provides that if the land is not needed by another
state agency, the property shall be offered to local governments
for local government facilities, parks and recreation,
open-space, low or moderate income housing, and local schools,
and to be sold below fair market value to a local agency,
affordable housing sponsor, or for parks or public recreation.
AB 815
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This bill's intent would set a precedent on offering non-profits
the opportunity to purchase surplus state property at no less
than 50% of fair market value. This bill would revise the
provisions of previous legislation requiring the Salinas Armory
property to be used as a police station.
Previous Legislation . SB 856 (Committee on Governmental
Organization), Chapter 258, Statutes of 2003, authorized DGS,
with the approval of the Adjutant General, to convey the Salinas
Armory, for no less than 50% of the fair market value, to the
City for the development of a police station, as specified.
Support . According to the City, "The City has encountered
numerous obstacles to the development of the Salinas Armory as a
police station, including but not limited to the presence of
asbestos, mold, and other potential environmental hazards. The
structure, because of its architecture and history, may also
qualify as a historic resource which may require special
treatment. Further, an alternative and superior location for a
police facility has been identified?
"In the interim, the City has been approached by the local
Salinas PAL, which would like to utilize the facility for the
home of their Salinas program. PAL proposes to renovate the
facility for use as a center for youth activities, including
after school and extended hours programs."
REGISTERED SUPPORT / OPPOSITION :
Support
City of Salinas
Harden Foundation
Salinas Police Activities League
Opposition
None on file.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916)
319-3301