BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 829|
|Office of Senate Floor Analyses | |
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CONSENT
Bill No: SB 829
Author: Galgiani (D), et al.
Amended: 2/13/14
Vote: 27 - Urgency
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 3/19/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Vidak
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Local government: City of Escalon: sale of
property
SOURCE : Author
DIGEST : This bill allows the City of Escalon to sell
specified parcels of land acquired with state bond funds if the
City complies with the provisions of the Villaraigosa-Keeley Act
(Act), and submits to the Department of Parks and Recreation
(DPR) a proposal demonstrating compliance with the Act and DPR
determines that all required conditions are met.
ANALYSIS : In the March 2000 statewide primary election,
voters approved Proposition 12, the Safe Neighborhood Parks,
Clean Water, Clean Air, and Coastal Protection Bond Act of 2000
(the Villaraigosa-Keeley Act). In March 2002, voters approved
Proposition 40, the California Clean Water, Clean Air, Safe
Neighborhood Parks, and Coastal Protection Act of 2002. Both
Acts allocated bond proceeds to the DPR for the Per Capita Grant
Program (Program). The Program awards grants to local
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governments for the acquisition, development, improvements,
rehabilitation, restorations, enhancement, and interpretation of
local parks and recreational lands and facilities.
The Act requires that grant recipients must agree to use the
property only for the purposes for which the grant was made.
The grantee cannot make any other use or sale or other
disposition of the property, except as authorized by a specific
act of the Legislature. If the use of the property changes or
the property is sold upon approval by the Legislature, the
grantee must either return the funds to the state or use
replacement funds for a purpose that is consistent with the
original grant. The replacement funds can equal the amount of
the grant, the fair market value of the real property, or the
proceeds from the sale of the property, whichever is greater.
The Program incorporated these requirements to its grant
contract.
This bill allows the City of Escalon to sell specified parcels
of land acquired with state bond funds if the city complies with
the provisions of the Act, and submits to the DPR a proposal
demonstrating compliance with the Act and a proposal that
contains the following:
The sale price and acquisition price of the original
grant-funded property and the replacement property, along with
a finding that the replacement property has a value that
equals the amount of the grant used to acquire the original
property, the fair market value of that real property, or the
proceeds from the sale, whichever is greater.
A commitment by the City to file a deed restriction on the
replacement property, if the proposal is approved by DPR.
Current appraisals of both properties, along with a
third-party review of the appraisals.
A willing seller letter for the replacement property to be
acquired.
A parcel map of the replacement property to be acquired and
the proposed new site.
A conceptual site plan for the replacement property, if the
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property requires development for public use.
A commitment by the City to develop the replacement property
for recreational purposes.
This bill prohibits the sale of the property until the DPR
determines that all required conditions have been met.
Background
The Legislature has allowed several cities to transfer park
property acquired or developed with state bond funds to other
public entities on the condition that the cities or entities
provide replacement property:
The City of Merced was allowed to transfer of up to three
acres of park land to the Merced City School District (AB 1864
(Matthews), Chapter 558, Statutes of 2006).
The City of San Bernardino was allowed to transfer up to 12.5
acres of park land to the city's redevelopment agency (AB 1457
(Baca), Chapter 852, Statutes of 2006).
The City of Los Angeles was allowed to transfer parkland and
facilities to the Los Angeles Unified School District (AB 1732
(Hall), Chapter 191, Statutes of 2010).
The Legislature also authorized the City of San Jose to convert
to a different use a parcel of parkland acquired with state bond
funds on the condition that the city acquire another parcel of
land adjacent to the park (AB 730 (Diaz), Chapter 28, Statutes
of 2001).
Changing economic conditions and development patterns have made
it unfeasible for the City of Escalon to use land that it
acquired with state bond funds for a planned park. City
officials want the Legislature's permission to sell the land and
use the proceeds to acquire a new park site.
Comments
In 2004, the City of Escalon used funds from the Program to
purchase 31 acres outside of city limits for a regional park.
Funds to build the park were to come from a planned housing
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development adjacent to the park property. As a result of the
economic downturn and housing crisis, the housing was not built,
leaving the City of Escalon with remote undeveloped parkland.
The City of Escalon plans to purchase alternate property for a
park near or within city limits. This bill allows the City of
Escalon to sell the property and reinvest in a more feasible
park site.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 4/7/14)
City of Escalon
AB:k 4/7/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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