BILL ANALYSIS Ó
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 2428 Hearing Date: 6/28/2016
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|Author: |Ting |
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|Version: |6/21/2016 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Manny Leon |
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SUBJECT: State highways: property leases
DIGEST: This bill authorizes the California Department of
Transportation (Caltrans) to lease to the City and County of San
Francisco (San Francisco) airspace under or adjacent to a
freeway or other real property acquired for highway purposes at
below market value, as specified.
ANALYSIS:
Existing law:
1)Grants Caltrans broad authority to acquire by eminent domain
any property necessary for state highway purposes.
2)Authorizes Caltrans to lease to public agencies or private
entities the use of areas above or below state highways.
Leases to private entities must be made on the basis of
competitive bids.
3)Authorizes Caltrans to make land or airspace available, with
or without charge, to a public entity to accommodate needed
passenger, commuter, or high-speed rail, magnetic levitation
systems, and highway and non-highway mass transit facilities.
AB 2428 (Ting) Page 2 of ?
4)Specifically authorizes Caltrans to lease to a local agency
for park purposes all or any portion of land outside the
boundary of a highway system when such use will preserve its
view, appearance, light, air, and usefulness.
5)Authorizes Caltrans to lease to San Francisco, or a political
subdivision, any airspace under a freeway or property for an
emergency shelter or feeding program at a rate of $1 per
month.
6)Authorizes Caltrans to lease non-operating right-of-way areas
to municipalities or other local agencies for public purposes,
and allows Caltrans to contribute toward the cost of
developing local parks and other recreational facilities on
such areas. The lease may provide that the municipality or
other local agency can offset the cost of the lease by
providing maintenance or landscaping that would otherwise be
the responsibility of the state.
This bill:
1)Makes legislative findings and declarations regarding San
Francisco's priority development areas (PDAs) and efforts to
reduce greenhouse gas emissions.
2)Directs Caltrans to offer first right of refusal to lease air
space or other real property in a designated PDA to San
Francisco, a political subdivision of the city and county, or
a state agency for park, recreational, or open-space purposes,
as specified.
3)Specifies that up to 10 parcels that are leased for the
abovementioned purposes are to be leased at an amount that is
10% or less than the average fair-market value of the
applicable parcel.
4)Requires the lessee to fund associated infrastructure, to
accept full liability for non-highway uses of the
infrastructure, and to fund all non-highway-related
AB 2428 (Ting) Page 3 of ?
maintenance costs associated with the uses.
5)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.
6)Defines "priority development area" to mean a neighborhood
within walking distance of frequent transit service that
offers a wide variety of housing options and that features
various amenities, including grocery stores, community
centers, open space, and restaurants.
COMMENTS:
1)Purpose. The author notes, "As one of the nation's most
densely populated cities, San Francisco lacks the open space
needed to provide opportunities needed to implement its
Sustainable Communities Strategy (SCS), which is required by
the California Sustainable Communities and Climate Protection
Act of 2008 (SB 375). As part of its compliance efforts, the
City and County is looking to leveraged right-of-way and
airspace below and adjacent to state freeways in order to
develop green spaces, parks, and recreational facilities.
The City and County is asking the State to partner with
this effort by providing the ability to lease these
State-owned spaces at 10% of the current market rate. In
addition, San Francisco is asking for the right of first
refusal to these leases."
2)What are PDAs? PDAs are locally identified,
infill-development opportunity areas within existing
communities that are primed for a pedestrian- and
bicycle-friendly environment served by transit. Specifically
aimed for the development of new housing and job growth, PDAs
are the foundation for sustainable regional growth and the Bay
Area's SCS. To become a PDA, an area must be:
a) Within an existing community
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b) Within walking distance of frequent transit service
c) Designated for more housing in a locally adopted plan or
identified by a local government for future planning and
potential growth
d) Nominated through a resolution adopted by a city council
or county board of supervisors
1)What is an SCS? Senate Bill 375 (Steinberg, Chapter 728,
Statutes of 2007) was enacted to reduce greenhouse gas
emissions from automobiles and light trucks through integrated
transportation, land use, housing, and environmental planning.
Specifically, SB 375 requires regional transportation
agencies to develop an SCS for their respective regions. An
SCS is envisioned to combine transportation and land-use
elements in order to achieve emissions reduction targets. If
the emissions reduction targets cannot be met through the SCS,
an Alternative Planning Strategy (APS) may be developed that
shows how the targets would be achieved through alternative
development patterns, infrastructure, or additional
transportation measures or policies. SB 375 also offers local
governments regulatory and other incentives to encourage more
compact new development and transportation alternatives.
2)Existing practices. Existing law provides a number of
examples wherein Caltrans is directed to lease or sell
property within its possession at well below market rate. For
example:
a) For emergency shelters or feeding programs in San
Francisco, at a lease rate of $1 per month
b) For emergency shelters, feeding programs, or day care
centers in San Diego, for $1 per month
c) For feeding programs in San Joaquin County for $1 per
month
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This bill simply follows in these footsteps by providing San
Francisco with the opportunity to enter into lease agreements
with Caltrans, and additionally lease up to 10 parcels of
property under market-rate value that will help the
city/county achieve their SB375/SCS targets.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes
Local: No
Assembly Votes:
Floor: 52-26
Appr: 14-6
Trans: 10-5
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 22, 2016.)
SUPPORT:
City and County of San Francisco (Sponsor)
OPPOSITION:
California Transportation Commission
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