BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 536 (Roth) - Armories
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|Version: May 5, 2015 |Policy Vote: V.A. 5 - 0, G.O. 8 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 18, 2015 |Consultant: Maureen Ortiz |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 536 authorizes the Director of the Department of
General Services (DGS), with the approval of the Adjutant
General, to sell eight specified armories and outlines the
process for DGS reimbursements for the costs associated with the
sales.
Fiscal
Impact:
Administrative costs of up to $160,000 (General Fund)
The Department of General Services estimates the selling
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expenses for each of the eight armories at about $20,000. The
funds will come from the Property Acquisition Law Money (PAL)
Account which will be reimbursed from the sale of each property.
Generally, money is loaned from the General Fund to the PAL and
is then reimbursed upon the sale of the property. The excess
revenue from the sale is deposited into the Armory Fund.
Background: The Military Department operates approximately 100 active
armory sites throughout the state which are used for unit
training, to mobilize and house troops when the National Guard
responds to wildfires, and serve as emergency operations centers
for other first-responder agencies. Armories are sometimes used
to shelter displaced civilians who have been evacuated from
their homes dues to fires, floods, or other state emergencies,
and some serve as homeless shelters during winter months.
The federal government pays for 75 percent of an armory's
construction costs; while the state pays the remaining 25
percent and donates the land. Upon completion of construction,
the state manages the armory and pays for all operational and
maintenance costs. After 25 years, the federal government fully
transfers all ownership rights to the state. Only in instances
where the armory sits on federal land does the state lack the
authority to sell the armory.
Existing law requires each state agency to annually review all
proprietary state lands under its jurisdiction to determine if
any properties are in excess of the agency's foreseeable needs,
and to report such properties to DGS. DGS is then authorized to
sell, lease or exchange surplus properties in the best interests
of the state. DGS uses the Property Acquisition Law account to
pay the upfront costs such as appraisal fees, advertising
expenses, title searches, etc. that are required to sell the
property. Once a property is sold, the PAL account is
reimbursed from the proceeds.
Proposed Law:
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SB 536 authorizes DGS to sell the following state armory
properties:
Azusa-Orange Armory
60-person armory property located on 1.53 acres at 340 North
Orange Avenue in the city of Azusa, within the county of Los
Angeles. Constructed in 1949.
Brawley Armory
60-person armory located on 1.78 acres at 650 North Second
Avenue in the city of Brawley, within the county of
Imperial. Constructed in 1955.
Compton-Alameda Armory
60-person armory located on 2.12 acres at 200 N. Alameda
Street in the city of Compton, within the county of Los
Angeles. Constructed in 1949.
Indio Armory
60-person armory located on 3.35 acres at 43-143 N. Jackson
Street in the city of Indio, within the county of Riverside.
Constructed in 1957.
Lynwood Armory
60-person armory located on 1.03 acres at 11398 Bullis Road
in the city of Lynwood, within the county of Los Angeles.
Constructed in 1949.
Pomona Park Armory
150-person armory located on .50 acres at 600 South Park
Avenue in the city of Pomona, within the county of Los
Angeles. Constructed in 1933.
Santa Barbara Armory
600-person armory located on 3.03 acres at 700 E. Canon
Perdido Street in the city of Santa Barbara, within the
county of Santa Barbara. Constructed in 1936.
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Yreka Armory
60-person armory located on 1.34 acres at Route 1, Box 120
in the city of Yreka, within the county of Siskiyou.
Constructed in 1956.
Additionally, SB 536 does the following:
1) Provides that all net proceeds from the sale of an armory
shall be deposited into the Armory Fund.
2) Provides that DGS shall, upon appropriation by the
Legislature, use funds from the Property Acquisition Law Money
Account for the purposes of selling the armory.
3) Authorizes the Director of Finance to approve loans from the
General Fund to the PAL Account.
4) Clarifies that "net proceeds" are the gross proceeds from the
sale less outstanding reimbursements that are due to the
Property Acquisition Law Money Account for costs incurred by DGS
in selling an armory.
5) Provides that the sale of the armories shall be on an "as
is" basis and shall be exempt from CEQA, but requires the
purchaser or transferee to comply with any local governmental
land use entitlement requirements and to CEQA.
Staff
Comments: The eight armories being authorized for sale have
reached the end of their service life with the cost of ongoing
maintenance outweighing their utility. The average age of these
armories is 50 years and they are no longer practical or safe
for California National Guard soldiers to assemble in or use for
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training purposes.
Proceeds from the sale of these armories will be deposited into
the Armory Fund and can be used later for the acquisition of new
armories, or to modernize existing armories.
When DGS undertakes the sale of surplus state property it uses
the PAL Account to pay the upfront costs associated with
marketing the property, appraisals, and title searches. Once
the property is sold, the PAL Account is reimbursed from the
proceeds of the sale. SB 536 will enable DGS to use the PAL
Account for upfront selling expenses of these armories.
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