BILL ANALYSIS AB 2279 Page 1 ASSEMBLY THIRD READING AB 2279 (Evans) As Introduced February 18, 2010 Majority vote BUSINESS & PROFESSIONS 7-4 APPROPRIATIONS 10-5 ----------------------------------------------------------------- |Ayes:|Hayashi, Eng, Hernandez, |Ayes:|Fuentes, Ammiano, Coto, | | |Hill, Ma, | |Davis, Bonnie Lowenthal, | | |Nava, Ruskin | |Hall, Skinner, Solorio, | | | | |Torlakson, Hill | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Emmerson, Conway, Niello, |Nays:|Conway, Harkey, Miller, | | |Smyth | |Nielsen, Norby | | | | | | ----------------------------------------------------------------- SUMMARY : Authorizes the Department of General Services (DGS) to sell or exchange specified property to the County of Napa (County). Specifically, this bill : 1)Authorizes DGS to sell or exchange at no less than current fair market value, by January 1, 2015, all or part of approximately 850 acres of property located at the Napa State Hospital, 2100 Napa Vallejo Highway, Napa to the County, upon terms and conditions DGS deems are in the best interest of the state. 2)States that if the property is not sold or exchanged by January 1, 2015, it is no longer surplus. 3)Requires the County to retain title to the entire property sold or exchanged for use as a park or wildlife preserve, or in the event of the future sale or exchange of that property by the County, the County shall, by recorded easement, restrict future uses of the property to those same uses. 4)Requires the net proceeds of any moneys received from the disposition of the property to be paid into the Deficit Recovery Bond Retirement Sinking Fund Subaccount. Reimburses DGS for any cost or expense incurred in the disposition from these proceeds. AB 2279 Page 2 5)Permits the County to enter into an agreement with a nonprofit land trust or nonprofit conservation entity for the purpose of sharing the costs associated with the sale or exchange. 6)Makes legislative findings and declarations. EXISTING LAW : 1)Authorizes DGS to dispose of surplus state real property by sale, lease, exchange, a sale combined with an exchange, or other manner of disposition of property, as authorized by the Legislature, upon any terms and conditions and subject to any reservations and exceptions that DGS deems to be in the best interests of the state. 2)Requires state agencies 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 such to DGS. These lands include, but are not limited to: a) Land not currently being utilized, or currently being underutilized, for any existing or ongoing program; b) Land for which the agency has not identified any specific utilization relative to future needs; and, c) Land not identified by the agency within its master plan for facility development. 3)Requires state agencies, when purchasing real property, to review the Surplus Property Inventory of state properties and purchase, lease, or trade property on that list, if possible, prior to purchasing property not on the inventory. 4)Provides that a local agency that expresses interest in acquiring a parcel of surplus property shall demonstrate, to the satisfaction of DGS that the real property is to be used by the local agency for open space, public parks, affordable housing projects, or development of local government-owned facilities. 5)Requires that the proceeds from the sale of surplus state property, with specified exceptions, be used to pay the AB 2279 Page 3 principal and interest on the Economic Recovery Bond Act of 2004, Proposition 60A, adopted by the voters in November 2004. FISCAL EFFECT : According to the Assembly Appropriations Committee, based on an almost identical legislative proposal in 2007, DGS estimated the value of the property at about $4 million. Pursuant to Proposition 60A, which was passed by the voters in November 2004, the proceeds of this sale, less DGS transaction costs, will be used to pay off the state's Economic Recovery Bonds. In the event those bonds are already paid off at the time of sale, the proceeds will go to the General Fund. COMMENTS : The 850-acre parcel, known as Skyline Park, is located on the grounds of Napa State Hospital in Napa County and includes more than 12 miles of hiking, riding and bicycling trails, a native plant garden, horse arena, archery range and a "disc" golf course. Since 1979, Napa County has leased the property from the state for $100 per year, with the current lease expiring in 2030. This property was placed on the surplus property list by the Department of Mental Health (DMH). According to the author's office, even after the sale, DMH would retain sufficient property near the present hospital for any foreseeable expansion. Napa County has a Transient Occupancy Tax ordinance which sets aside money to fund county parks, and, thus, has a dedicated revenue stream to afford this property. According to the sponsor, the Napa County Board of Supervisors, "The intent of AB 2279 is to preserve the property as a public park in perpetuity. The Park is used extensively by hikers, mountain bikers, and equestrians. Keeping this parcel open to citizens as a public park for future generations is enormously important to the Board as well as Napa County citizens." Analysis Prepared by : Sarah Weaver / B., P. & C. P. / (916) 319-3301 FN: 0004074