SB 680, as amended, Wieckowski. State real property: surplus: City of Santa Clara.
Existing law provides that the Director of General Services may acquire and dispose of surplus state real property where that property is not needed by another state agency and the Legislature has authorized disposal of the property. Existing law also specifies the manner in which the Department of General Services is to dispose of surplus state real property. Existing law authorizes the director, subject to certain conditions, to sell, lease, or exchange a specified parcel of real property in the City of Santa Clara upon terms and conditions and subject to reservations and exceptions that the director determines are in the best interests of the state.
This bill would authorize the director to modify the existing terms and conditions of the transfer to the Housing Authority of the City of Santa Clara of a specified parcel of real property within the City of Santa Clara to allow for residential development of that parcel, as provided. The bill would, as a condition of modifying the terms and conditions of the transfer, require the City of Santa Clara to indemnify, defend, and hold harmless the state from any and all claims, damages, or liabilities arising out of, in connection with, or directly or indirectly resulting from the exercise of the rights authorized by these provisions by the City of Santa Clara, the Housing Authority of the City of Santa Clara, and any subsequent purchaser or transferee of the property. The bill would also require the state to select counsel in any action arising out of, in connection with, or directly or indirectly resulting from the exercise of these rights.
The California Constitution requires that the proceeds from the sale of surplus state property be used to pay the principal and interest on bonds issued pursuant to the Economic Recovery Bond Act until the principal and interest on those bonds are fully paid, after which these proceeds are required to be deposited into the Special Fund for Economic Uncertainties, a continuously appropriated fund.
This bill would, if the property described above is used for a residential development, require the department to determine the difference between the actual price paid by the local agency for the property and the fair market value of the property and require the Housing Authority of the City of Santa Clara to pay that difference to the department. By increasing the amount transferred into continuously appropriated funds, this bill would make an appropriation.
begin insertThis bill would declare that it is to take effect immediately as an urgency statute.
end insertVote: 2⁄3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
(a) The Director of General Services may modify
2the existing terms and conditions, including, but not limited to,
3the existing purchase and sale agreement, as amended, the grant
4deed,begin insert the commencement date for development,end insert and any other
5applicable transaction documents, of the transfer to the Housing
6Authority of the City of Santa Clara of an approximately six-acre
P3 1parcel of real property within the City of Santa Clara, Assessor’s
2Parcel Number 303-17-053, for the purposes set forth in
3subdivision (b). The director is authorized to make any
4modifications pursuant to this subdivision on terms and conditions
5
and subject to any reservations and exceptions that the director
6determines are in the best interests of the state.
7(b) (1) The property described in subdivision (a) may be used
8for a residential development including both residential units that
9are affordable to persons of extremely low, very low, or low or
10moderate income and residential units at market rate. As a result
11of any proposed modification to the original entitlements, the
12Department of General Services shall determine the difference
13between the actual price paid by the local agency for the property
14and the fair market value of the property, which shall be paid by
15the Housing Authority of the City of Santa Clara to the department.
16(2) The City of Santa Clara may, subject to the consent of the
17other
parties to the agreement, amend the development agreement
18applicable to the property described in subdivision (a) in order to
19remove that property from the agreement.
As a condition of modifying the terms and conditions
21as provided in subdivision (a) of Section 1 of this act, the City of
22Santa Clara shall indemnify, defend, and hold harmless the state
23from any and all claims, damages, or liabilities arising out of, in
24connection with, or directly or indirectly resulting from the exercise
25of the rights authorized by this act by the City of Santa Clara, the
26Housing Authority of the City of Santa Clara, and any subsequent
27purchaser or transferee. In any action arising out of, in connection
28with, or directly or indirectly resulting from the exercise of these
29rights, the state shall select counsel to defend the state.
This act is an urgency statute necessary for the
31immediate preservation of the public peace, health, or safety within
32the meaning of Article IV of the Constitution and shall go into
33immediate effect. The facts constituting the necessity are:
34
The San Francisco Bay area is experiencing an historic
35affordable housing crisis. Additional housing units are urgently
36needed to improve the quality of life for all San Francisco Bay
37area residents. A development project to build additional
38affordable housing units that will benefit the communities in the
P4 1City of
Santa Clara, especially low-income persons, senior citizens,
2veterans, and persons with disabilities, is urgently needed.
O
94