BILL ANALYSIS Ó
AB 2428
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2428 (Ting) - As Amended April 7, 2016
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill directs Caltrans to lease any airspace under or
adjacent to a freeway or other specified property within in the
City and County of San Francisco to the City for park,
recreational, or open-space purposes. Specifically, this bill:
1)Directs Caltrans to offer first right of refusal to lease air
space or other real property acquired for highway purposes
that is within a priority development area, as defined, to San
Francisco, a political subdivision of the city and county, or
a state agency for park, recreational, or open-space purposes.
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2)Sets the lease amount for park, recreational, or open-space
purposes at 10% or less of the average fair market lease
value, and prescribes how this value is to be calculated.
3)Directs the lease to authorize the lessee, at its discretion,
to subsidize its associated maintenance costs by generating
revenue under a "limited revenue generation model" so long as
any excess revenue is shared 50/50 with Caltrans, with the
state's share to be deposited into the State Highway Account.
FISCAL EFFECT:
According to Caltrans, there are 77 airspace lots in SF that can
be leased, and 75 are currently leased (tenants also for pay
maintenance), including 66 to private entities at market rate
for parking or storage. These leases generate $9.25 million
annually in revenue to the General Fund, which would be an
average of $140,000 per lease. If 10 expiring leases were
instead leased for open space or park purposes at 10% of market
value, the annual revenue General Fund loss would be $1.25
million. It is unclear to what extent the limited revenue
generation model would provide additional, offsetting state
revenue.
COMMENTS:
Purpose. AB 2428, sponsored by San Francisco, is intended to
encourage the City to leverage existing Caltrans property so San
Francisco can implement its sustainable community strategies by
providing green spaces and recreational opportunities for its
people.
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While the authority to enter into these leases is already in
existing law, the challenge, apparently, is that Caltrans is
obligated to secure fair market value lease rates for these
parcels, based on the estimated highest and best use of the
property. Not only is this rate too expensive for new open
space development, it reportedly tends to attract commercial
activities not particularly conducive to San Francisco's plans
for its priority development areas, such as parking lots.
Current law provides a number of examples wherein Caltrans is
directed to lease or sell at well below market rate:
For emergency shelters or feeding program in San
Francisco, at a lease rate of $1 per month.
For emergency shelter, feeding program, or day care
center in San Diego, for $1 per month.
For feeding programs in San Joaquin County for $1 per
month
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081
AB 2428
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