BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 680|
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UNFINISHED BUSINESS
Bill No: SB 680
Author: Wieckowski (D), et al.
Amended: 8/19/16
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 8/26/16 (pursuant to
Senate Rule 29.10)
AYES: Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer,
Hill, Hueso, Lara, McGuire, Vidak
NO VOTE RECORDED: Hernandez
ASSEMBLY FLOOR: 78-0, 8/24/16 - See last page for vote
SUBJECT: State real property: surplus: City of Santa Clara
SOURCE: Author
DIGEST: This bill authorizes the Department of General Services
(DGS) to modify the existing terms and conditions governing the
sale and transfer of a parcel of state surplus property within
the City of Santa Clara to the Santa Clara Housing Authority
(SCHA).
Assembly Amendments (1) gut and amend the bill, (2) authorize
DGS to modify the existing terms and conditions governing the
sale and transfer of a parcel of state surplus property within
the City of Santa Clara to the SCHA, as specified.
ANALYSIS:
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Existing law:
1)Requires DGS to perform various functions with respect to
state property and provides for the sale, lease, or transfer
of surplus state property.
2)Requires each state agency to annually review and determine if
any lands under their jurisdiction are in excess of
programmatic need and report that information to DGS.
3)Requires DGS to annually report state surplus lands to the
Legislature, and request legislative authorization to dispose
of the land by sale or otherwise, subject to specified
conditions.
4)Authorizes DGS 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 DGS
determines are in the best interest of the state.
This bill:
1)Authorizes DGS to modify the existing terms and conditions
governing the sale and transfer of a parcel of state surplus
property within the City of Santa Clara to the SCHA.
2)Specifies that the parcel may be used for a residential
development that includes both affordable and market rate
units.
3)Requires DGS to determine, as a result of any modification to
the terms and conditions, the difference between the actual
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price paid by the local agency for the property and the fair
market value of the parcel and directs the SCHA to pay the
difference to DGS.
4)Permits the City of Santa Clara to amend the development
agreements, as specified, with the consent of DGS and the
SCHA.
5)Makes the City of Santa Clara solely responsible for
compliance with the California Environmental Quality Act for
purposes of this bill.
6)Holds harmless and indemnifies the state from any legal action
resulting from the residential development proposed for the
property.
7)Contains an urgency clause.
Background
Previous authorization. This bill seeks to modify the terms and
conditions of part of a 17-acre property in Santa Clara that was
declared surplus by the state by SB 2099 (Vasconcellos, Chapter
631, Statutes of 2002). The author states that this bill is
needed to allow the sale and purchase agreement of an estimated
six-acre parcel to be revised so that the City of Santa Clara
can move forward with a new residential development plan for the
parcel.
Originally, the entire 17-acre site was proposed for development
of a mixture of single family, senior, and affordable housing.
In July 2005, the City of Santa Clara's Redevelopment Agency
(RDA) agreed to purchase the parcel from the state to develop up
to 165 affordable senior housing units. When RDAs were
dissolved as part of the 2011 State Budget Act, ownership of the
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parcel was transferred to the SCHA, the RDA successor agency, in
January 2012.
According to the author, the City of Santa Clara wishes to move
forward with a new development plan for the parcel. This bill
allows the sale and purchase agreement of the parcel to be
amended to accommodate the new plan. DGS indicates that it
currently lacks the authority to modify the terms of the
agreement to reflect the changes that the City of Santa Clara is
requesting. The original agreement only allows up to 165 units
of affordable senior housing to be developed.
The current developer of the parcel, The Core Companies,
proposes a plan that would consist of 359 total units on the
parcel, with 181 units of affordable housing. Of those, 165
would be designated for seniors and senior veterans and the
remaining 16 would be designated for low to moderate-income
families. The other 178 units would be offered at market rate.
The author states that this bill is intended to facilitate
development of a critically important housing project by
authorizing the state to revise the terms of the agreement and
include a provision that protects the state from any liability
in the event of any legal action that could result from the
project.
Prior Legislation
SB 2099 (Vasconcellos, Chapter 631, Statutes of 2002) authorized
DGS 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 DGS determines
are in the best interest of the state.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
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According to the Assembly Appropriations Committee, costs to DGS
will be minor and absorbable. Modifying the terms of the lease,
which will allow development of the property to include market
rate housing, will result in one-time General Fund revenues of
up to several million dollars as the sale price of the property
is adjusted to market rate.
SUPPORT: (Verified8/24/16)
City of Santa Clara
OPPOSITION: (Verified8/24/16)
None received
ARGUMENTS IN SUPPORT: According to the City of Santa Clara,
"the Silicon Valley is in the midst of a housing crisis. The
lack of supply, robust demand and high area median income
drastically inflates the market rates of homes and rental units
in the region. While many members of the community can absorb
these high housing costs, others are not so fortunate. In
particular, seniors remain extremely vulnerable to the volatile
housing market as a population with relatively low median
incomes and higher medical expenses on average. SB 680 will
provide authority to amend the January 5, 2017 deadline and
allow the City of Santa Clara to negotiate with DGS to include
market rate units on site, increase the City's housing supply,
create a funding mechanism to finance the project and
potentially reduce the income eligibility threshold for seniors
seeking housing."
ASSEMBLY FLOOR: 78-0, 8/24/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,
Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,
Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper,
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Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Gallagher,
Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez,
Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger
Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,
Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,
McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,
Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,
Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NO VOTE RECORDED: Brough, Beth Gaines
Prepared by:Felipe Lopez / G.O. / (916) 651-1530
8/26/16 14:26:49
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