AB 2428, as amended, Ting. State highways: property leases.
Existing law provides that the Department of Transportation has full possession and control of the state highway system, including associated property. Existing law authorizes the department to lease certain property, including the area above or below a state highway, and certain property held for future highway purposes, to public agencies under specified terms and conditions, including specific provisions governing leases of airspace and other property in the City and County of San Francisco for purposes of an emergency shelter or feeding program, at a lease cost of $1 per month and payment of an administrative fee not to exceed $500 per year.
This bill would revise the provisions governing leases of department property in the City and County of San Francisco
begin delete under these financial termsend delete
to also authorize leases of property for park, recreational, or open-space purposes, subject to certain additional terms and conditions, including a requirement for the lessee to be responsible for all associated maintenance costs. The bill would provide for the lease to authorize the lessee to subsidize its maintenance costs through a limited revenue generation model, with any revenues generated above the maintenance costs to be shared with the state, as specified.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 104.16 of the Streets and Highways Code is
14amended to read:
(a) Any airspace under a freeway, or real property
16acquired for highway purposes, in the City and County of San
17Francisco, that is not excess property, may be leased by the
18department to the city and county or
begin delete anotherend delete political subdivision
19 or a state agency for purposes of an
20emergency shelter or feeding
begin delete program, or for park, recreational,
21or open-space purposes.end delete
28(b) The lease
29 shall be for one dollar ($1) per month. The lease amount may be paid in advance of the term
39covered in order to reduce the administrative costs associated with
40the payment of the monthly rental fee. The lease shall require the
P5 1payment of an administrative fee not to exceed five hundred dollars
2($500) per year, unless the department determines that a higher
3administrative fee is necessary, for the department’s cost of
4administering the lease.
5(c) In the case of a lease for park, recreational, or open-space
6purposes, the lease shall require the lessee to fund and construct
begin delete allend delete associated infrastructure, and to accept full responsibility for
begin delete relatedend delete to begin delete those uses.end delete The lease shall require the lessee
10to be responsible for all maintenance costs
11associated with those uses, except as otherwise provided in the
12lease. The lease shall authorize the
begin delete lesseeend delete
13 to subsidize its associated maintenance costs through generation
14of revenue under a limited revenue generation model, such as from
15limited parking facilities located on
16 the leased property, if any revenues generated that exceed the
17associated maintenance costs are shared with the state, at a rate
18not less than 50 percent of those excess revenues, with that amount
19to be deposited in the State Highway Account.
26 The Legislature finds and declares that the lease of real
27property pursuant to this section serves a public purpose.