BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 339|
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THIRD READING
Bill No: SB 339
Author: Cannella (R)
Amended: 5/14/13
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 5/8/13
AYES: Wolk, Knight, Beall, DeSaulnier, Emmerson, Hernandez, Liu
SUBJECT : Counties: disposition of real property
SOURCE : County of Merced
DIGEST : This bill authorizes a county, by a 4/5-vote of the
board of supervisors, to sell, or enter into a lease,
concession, or managerial contract involving specified county
property that the county has acquired from the federal
government due to the closure of a military base, without
complying with the state laws that govern the sale of
county-owned real property.
ANALYSIS : State law generally requires a county to sell or
lease property using a competitive sealed-bid process. A county
board of supervisors must, by a two-thirds vote, adopt a
resolution in a regular open meeting declaring its intention to
sell or lease the property. The resolution must describe the
property and the terms upon which it will be sold or leased. At
least three weeks after adopting the resolution, the board must
hold a public meeting at which sealed proposals to purchase or
lease the property must be considered. State law exempts a
county from these requirements, and allows it to sell real
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property at less than fair market value, to provide housing that
is affordable to low and moderate income residents.
This bill authorizes a county, by a 4/5-vote of the board of
supervisors, to sell, or enter into a lease, concession, or
managerial contract involving specified county property that the
county has acquired from the federal government due to the
closure of a military base, without complying with the state
laws that govern the sale of county-owned real property.
This bill prohibits a board from taking a vote to sell, or enter
into a lease, concession, or managerial contract involving
specified property unless the following conditions are met, or
unless the board makes a finding in a noticed public hearing
that the following conditions were met at the time the property
was acquired from the federal government:
1.The county solely governs the property's reuse.
2.The county has prepared and adopted a general or specific plan
according to state law and has adopted a zoning ordinance for
the area, and the proposed use is consistent with the general
or specific plan and the zoning ordinance.
3.The airport land use commission has prepared and adopted a
comprehensive airport land use compatibility plan (ALUCP) for
the area, according to state law, and the proposed use is
consistent with the ALUCP.
4.The county has complied with state laws regarding the disposal
of surplus land and general plan compliance.
5.The county has published notice for ten days in a newspaper
published at least weekly, and posted the notice in the county
clerk's office. The notice must specify the date that the
board determines that any of the affected property is subject
to the bill's requirements, and must include all of the
following:
A. A description of the proposed property to be sold,
leased, or subject to a concession or managerial contract.
B. The proposed terms of the sale, lease, concession, or
managerial contract.
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C. The location where offers will be accepted and executed.
D. The county officer's telephone number and address.
Background
As part of the Base Realignment and Closure process that
followed the end of the Cold War, Castle Air Force Base in
Merced County closed in 1995. To help local officials convert
the former bomber base into productive civilian uses, the
Legislature created the Castle Joint Powers Redevelopment Agency
with special powers (AB 69, Canella, Chapter 943 Statutes of
1993). In 1994, the Legislature named the Agency as the
official "single local reuse entity" to cooperate with state and
federal officials (AB 3755, Honeycutt, Chapter 126, Statutes of
1994). In 1996, the Legislature set up a generic statute to
expedite the redevelopment of military bases (AB 2736,
Weggeland, Chapter 221, Statutes of 1996). Because many of the
assumptions underlying the 1993 special statute didn't
materialize, local officials asked the Legislature to repeal the
special law (AB 774, Cardoza, Chapter 290, Statutes of 2000).
Instead, Merced County formed its own redevelopment project area
to develop county property on the former Castle Air Force Base.
Until 2011, the Community Redevelopment Law (CRL) allowed local
officials to set up redevelopment agencies (RDAs), prepare and
adopt redevelopment plans, and finance redevelopment activities.
The CRL authorized RDAs to sell or lease property without
public bidding as long as the RDA provided public notice and
held a public hearing. Merced County officials sold real
property on the former Castle Air Force Base by transferring the
property to the county's RDA, which then sold the property to
selected developers without any bidding or other competitive
process.
Citing a significant State General Fund deficit, Governor
Brown's 2011-12 budget proposed eliminating RDAs and returning
billions of dollars of property tax revenues to schools, cities,
and counties to fund core services. Among the statutory changes
that the Legislature adopted to implement the 2011-12 budget, AB
X1 26 (Blumenfield, Chapter 5, Statutes of 2011) dissolved all
RDAs.
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Merced County officials worry that redevelopment agencies'
elimination will force the county to sell property on the former
Castle Air Force Base through a sealed-bid process rather than
through direct negotiation, complicating the county's efforts to
revitalize lands on the former base.
Related/ Prior Legislation
AB 121 (Dickinson) authorizes the Sacramento County Board of
Supervisors, by 4/5-vote, to sell, or enter into a lease,
concession, or managerial contract involving a specified area of
county property that the county has acquired from the federal
government due to the closure of Mather Air Force Base or
McClellan Air Force Base, without otherwise complying with state
laws.
SB 1546 (Cannella, 2012) would have authorized a county that
owns real property on a converted military base to sell that
real property, or any interest in the property, in a manner
approved by the board of supervisors, without complying with the
state laws that govern the sale of county-owned real property.
The bill was not heard and died in the Senate Governance and
Finance Committee.
Comments
According to the author's office, this bill gives counties the
authority to conduct negotiated sales of property at a former
military base. This will not impair the Governor's financial
purpose in eliminating RDAs but will restore a critical tool in
disposing of properties that require significant financial
investment. The negotiated sale of properties will furthermore
be the subject of public review at a Board of Supervisors
meeting, thus protecting the public's interest and transparency
in government dealings. This bill still provides surety and
assurances for prospective buyers requiring a more certain sales
process when making investments in parcels such as those located
at the former base.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 5/15/13)
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County of Merced (source)
AB:ejd 5/15/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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