California Legislature—2015–16 Regular Session

Assembly Bill No. 1740

Introduced by Assembly Member Alejo

February 1, 2016

An act to amend Section 8169 of the Government Code, relating to state property.

LEGISLATIVE COUNSEL’S DIGEST

AB 1740, as introduced, Alejo. State property: Capitol Area Plan.

Existing law designates the Capitol Area Plan approved by the Director of General Services as the official state master plan for development in the City of Sacramento’s central city area. Existing law requires the plan to be used as a guide for the location of state buildings and other facilities in the metropolitan area. Existing law governs the lease or sale of real property covered by the plan that is owned by the state and not under the jurisdiction of any other state agency.

This bill would make nonsubstantive changes to those lease and sale provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 8169 of the Government Code is amended
to read:

8169.  

(a) The director may lease the real property owned by
the state within the core area, and not under the jurisdiction of any
other state agency, for purposes consistent with the Capitol Area
Plan and the management thereof, for the term and upon terms and
conditions that the director begin delete may deem end delete begin insert deems to be end insert appropriate. A
lease shall provide that any property subsequently leased by a joint
powers authority for which a lease or rental for a period of five
years or more is contemplated, shall be advertised and awarded
utilizing for the purpose the same procedure followed by the
director for other state properties. The director’s authority to lease
real property under this section shall include, but not be limited
to, the authority to lease portions of buildings and facilities
occupied or to be occupied in part by state agencies, to private
parties, and other public agencies for office, residential, parking,
and commercial uses consistent with the Capitol Area Plan.

(b)  begin insert (1) end insert begin insert   end insert The director may sell real property that is owned by
the state within the Capitol Area Plan area that is not under the
jurisdiction of any other state agency and that is designated for
residential and commercial purposes in the 1997 update of the
plan. If the director sells property under this section, that property
shall be sold at its fair market value to the joint powers authority
created pursuant to Section 8169.4 for resale and use in the
development of residential and commercial properties consistent
with the Capitol Area Plan. In addition, any property sold under
this section shall not diminish the number of existing dwelling
units or subsequently developed units that are required to be made
available to low-income households pursuant to Section 8193. For
the purposes of Section 8193, an existing residential dwelling unit
or a subsequently developed unit located on land sold pursuant to
this section shall continue to be included in the determination of
the total number of dwelling units located on property leased by
the joint powers authority created pursuant to Section 8169.4.

begin delete

The

end delete

begin insert (2) end insert begin insert   end insert begin insert The end insert director begin delete may end delete begin insert shall end insert not sell any existing residential
properties pursuant to this subdivision that are under the
management of the joint powers authority created pursuant to
Section 8169.4 unless that sale is part of an overall development
plan that will lead to a net increase in residential units on the
affected site or sites.

begin delete

In

end delete

begin insert (3) end insert begin insert   end insert begin insert In end insert addition, the director begin delete may end delete begin insert shall end insert not sell any existing
residential properties pursuant to this subdivision that are under
the management of the joint powers authority created pursuant to
Section 8169.4 unless a deed restriction is recorded against the
properties that contains an express condition and covenant that the
real property conveyed shall be used only for residential purposes
for a period of at least 45 years. “Residential purposes” means the
same or substantially similar multifamily, single-family, or
condominium use, or a mixed use, with the same or greater number
of residential units on the affected site. The terms of the restriction
are for the benefit of the public at large and for the benefit of all
parcels of land located within the boundaries of the Capitol Area
Plan. The residential use required by this subdivision shall bind
all successive owners of the property for a period of 45 years from
the date the property is conveyed by the joint powers authority.

(c) With respect to residential leases, the director’s authority
included in this section shall not extend beyond the Capitol area.
The director shall begin delete assure end delete begin insert ensure end insert that tenants residing within the
Capitol area are not involuntarily displaced as a result of leases
executed after January 1, 1978. The director’s authority shall also
include the authority to enter into long-term leases not to exceed
60 years and to pledge, subordinate, hypothecate, or to permit the
assignment of these leases in connection with financing to be
obtained by any lessee or sublessee.

(d) The director begin delete may end delete begin insert shall end insert not execute a sales agreement or
lease agreement for a term lease of more than five years between
the state and another entity, enter into a joint powers agreement,
or issue revenue bonds or notes of evidences of indebtedness
offered by the joint powers authority, if the agreement concerns
state-owned property in the County of Sacramento or the County
of Yolo, unless not less than 30 days prior to its execution he or
she notifies and provides an economic analysis of the proposed
sale to the Members of the Legislature who represent the Capitol
area and the chairman of the committee in each house of the
Legislature begin delete which end delete begin insert that end insert considers appropriations, the chairman of
the appropriate policy committee in each house, and the Chairman
of the Joint Legislative Budget Committee, or his or her designee,
in writing of his or her intention to execute such an agreement.
The chairman of the committee or his or her designee may
determine a lesser notification period prior to execution. begin delete A end delete begin insert The
director shall provide a end insert copy of the notice begin delete shall be provided end delete to
any person who requests the director in writing for the notice.

(e) The Legislature hereby finds that it will be of broad public
benefit to stimulate development of residential and commercial
components of the Capitol Area Plan. Therefore, the director may
sell property to the joint powers authority created pursuant to
Section 8169.4 at a price that is determined to be its fair market
value and terms that have been determined to be appropriate to
stimulate timely development to meet the goals set forth by the
Legislature in the 1997 update of the Capitol Area Plan. The
Capitol Area Development Authority may request these sales after
providing the director with appropriate economic analysis in
support of the value at which property is to be conveyed. The
director may approve the sale of the property if he or she concurs
with the economic analysis.

(f) The Legislature hereby finds that it will be of broad public
benefit to lease some residential units in the Capitol area to persons
and families of low or moderate income, as defined by Section
50093 of the Health and Safety Code, for less than prevailing
market rental rates. Therefore, the director may rent or provide for
the rental of residential facilities to persons and families of low or
moderate income for less than market rental rates and enter into
long-term ground leases at nominal or below market rental rates
when the director deems it will benefit these persons and families.

(g) All leases of state-owned property in the core area to any
private person for other than parking shall be subject to possessory
interest taxes in accordance with Chapter 1 (commencing with
Section 101) of Part 1 of Division 1 of the Revenue and Taxation
Code.

(h) The net proceeds of any moneys received from the
disposition of any state parcels sold pursuant to subdivision (b)
shall be deposited into the General Fund. The department shall be
reimbursed for any cost or expense incurred in the disposition of
any parcels.