BILL NUMBER: AB 1740 INTRODUCED
BILL TEXT
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 may deem deems
to be 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) (1) 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.
The
(2) The director may
shall 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.
In
(3) In addition, the director
may shall 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 assure ensure 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 may shall 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 which that 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. A The director shall provide a
copy of the notice shall be provided 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.