BILL ANALYSIS Ó
SB 536
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Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 536
(Roth) - As Amended July 8, 2015
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| |Veterans Affairs | |9 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill authorizes the Department of General Services (DGS) to
sell seven California National Guard armories. Specifically,
this bill:
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1)Authorizes DGS, with approval of the Adjutant General of the
Military Department, to sell the following armory properties
on an as-is basis.
a) Azusa-Orange Armory (1.53 acres).
b) Brawley Armory (1.78 acres).
c) Indio Armory (3.35 acres).
d) Lynwood Armory (1.03 acres).
e) Pomona Park Armory (.50 acres).
f) Santa Barbara Armory (3.03 acres).
g) Yreka Armory (1.34 acres).
1)Directs that, with respect to the Azusa-Orange Armory, DGS
shall grant to the City of Azusa an option to purchase the
Azusa-Orange Armory, as specified, which shall expire on July
1, 2016, after which the armory shall be offered for sale at
fair market value.
2)Stipulates that DGS's transaction costs shall be reimbursed
from the proceeds of sales and that the net proceeds.
FISCAL EFFECT:
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Based on DGS's estimated average cost of $25,000 per site to
sell other armory properties, total estimated costs are
$175,000. These costs will be borne by the Property Acquisition
Law Account and subsequently reimbursed from armory sale
proceeds. Per current law, the net proceeds from the sale will
be deposited into the Armory Fund and, upon appropriation by the
Legislature, must be used for the maintenance of existing
armories and the acquisition and construction of new armories.
COMMENTS:
1)Background. The Military Department operates 110 armory sites
throughout the state that are used for unit training, to
mobilize and house troops when the National Guard responds to
wildfires, and to serve as emergency operations centers for
other first-responder agencies. Armories are also 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% of an armory's
construction costs, while the state pays the remaining 25%
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.
2)Purpose. The seven 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
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practical or safe for assembly or training purposes.
With respect to the Azusa-Orange Armory, the National Guard
indicates the following:
The Azusa-Orange Armory is the subject of a long-term lease
(approximately five years remain on the term) on the
property. The City of Azusa uses the leased property for a
community center and related functions. The City has made
a substantial capital investment in the property to support
the functions of the community center.
The law and terms of the lease permit the National Guard to
terminate the lease at any time. However, while the need
for sale of the armories impacted by this bill is great, it
was not deemed so urgent as to merit the immediate eviction
of a valuable community asset like a community center. The
provisions of this bill unique to the Azusa-Orange Armory
are an effort to balance the equities and to guarantee that
the state will receive fair market value for the property
when it is sold.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081
SB 536
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