BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1119 (Wolk) - Surplus state property: Napa County Regional
Park and Open Space District
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|Version: March 28, 2016 |Policy Vote: G.O. 9 - 3 |
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|Urgency: No |Mandate: No |
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|Hearing Date: April 25, 2016 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 1119 would authorize the Director of General
Services (DGS) to sell or exchange all or part of a specified
parcel of state property only to the Napa County Regional Park
and Open Space District for park or wilderness preserve purposes
by January 1, 2021, at fair market value and upon conditions DGS
deems to be in the state's best interests.
Fiscal
Impact:
One-time General Fund revenue gains, likely in the millions,
related to the sale of Napa State Hospital property at fair
market value. (Special Fund for Economic Uncertainties)
SB 1119 (Wolk) Page 1 of
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DGS administrative costs, potentially over $100,000, related
to the sale of the property. All DGS costs would be recovered
from the proceeds of the property sale.
Potential foregone revenues, to the extent the bill limits the
sale to one entity for park or wilderness purposes, thereby
potentially depressing the appraised fair market value. (see
staff comments)
Potential future costs to purchase additional property to
accommodate the expansion needs of the Napa State Hospital,
which will not be known until after the completion of the
Department of State Hospitals facilities master planning
process. (see staff comments)
Background: Each year, state departments review their property inventory
to identify for the DGS those holdings that can be declared
surplus. Before the DGS can transfer these properties, however,
the Legislature must provide specific authorization. Existing
law requires that property declared surplus by the state first
be offered for local governments or nonprofit housing sponsors
intending to use the property for low and moderate income
housing, second priority for local governments that will use the
property for parks or open space, third priority for use as
local government-owned facilities, followed in priority by
private entities and individuals. When surplus land is to be
for park and recreation purposes and operated for those purposes
by local agencies at no expense to the state, the director may
transfer the land to local governmental agencies at less than
the fair market value of the land, if the transfer is in the
public interest, and specified conditions are met.
The property referenced in this bill, known as the Skyline
Wilderness Park, is an 850-acre parcel of state land located on
the grounds of the Napa State Hospital on the eastern boundary
of the City of Napa. Most of the property is wilderness, and it
includes 12 miles of hiking, equestrian, and bicycling trails, a
native plant garden, a horse arena, and an archery range. In
1979, the property was declared surplus. The state has leased
the property to the County of Napa since 1980 for $100 per year,
and the lease expires in 2030.
Proposed Law:
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SB 1119 would authorize DGS to sell or exchange, at fair
market value, all or part of a specified parcel of state
property to the Napa County Regional Park and Open Space
District (District), upon the terms and conditions DGS
determines are in the best interest of the state, by January 1,
2021.
This bill would require any agreement for the sale or exchange
of the property to include a provision that requires the
District to retain title to the property for use as a park or
wilderness preserve, or in the event of a future sale of that
property, require the District to record an easement that limits
future uses of the property to a park or wilderness preserve.
This bill would require that any agreement for the sale or
exchange of the property preserve Napa State Hospital's
ownership and use of a specified area known as Camp Coombs.
This bill would require DGS to be reimbursed for costs incurred
in the disposition of the property from proceeds of the sale,
and require the remaining net proceeds from the sale to be paid
into the Special Fund for Economic Uncertainties, a continuously
appropriated fund, thereby making an appropriation.
SB 1119 would permit the District to enter into an agreement
with a nonprofit land trust or nonprofit conservation entity for
the purpose of sharing the cost associated with the sale or
exchange authorized by this bill, as specified.
Related
Legislation: AB 2279 (Evans), Chap. 595/2010, authorized DGS to
sell or exchange this parcel to Napa County under similar
conditions until January 1, 2015.
Staff
Comments: Absent the bill, the state would continue to receive
$100 in annual lease revenues until 2030, at which time the
property could be declared surplus, upon legislative
authorization. This bill seeks a direct sale option to the
District, rather than potentially declaring the property surplus
and disposing of the property in the future. As noted above,
surplus property must first be offered to local agencies or
nonprofits that would use the property for low/moderate income
SB 1119 (Wolk) Page 3 of
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housing purposes, prior to making it available to other local
agencies for park and recreation purposes (potentially at less
than fair market value). This bill would require that the state
realize the fair market value of the Napa State Hospital
property, but eliminate the option to sell it to other entities.
Limiting the sale to a specific entity for the singular purpose
of parks and wilderness may have an impact on the fair market
valuation, but it is not clear that there would be a strong
interest in most of the property for other purposes. To the
extent the restrictions in the bill impact fair market value,
and to the extent the property could be offered to other
interested parties for other purposes, this bill could result in
foregone revenues, the magnitude of which is unknown. Staff
notes that under the previous authorization to sell the property
to Napa County, the county and DGS could not agree on the fair
market value.
The Department of State Hospitals is currently developing a
system-wide facilities master plan, assessing the condition of
all state hospital facilities and capital improvement needs.
This process is not likely to be completed for several years, so
any potential property needs to accommodate expansion or
reconstruction of Napa State Hospital facilities may not be
clear until well after the enactment of the bill. The bill does
provide the director of DGS with the authority to specify terms
and conditions of the sale and to subject the sale to
"reservations and exceptions" that are in the best interests of
the state. However, the Committee may wish to consider whether
to authorize DGS to sell the property until the State Hospital's
facilities master planning process is complete. To the extent
the property is sold to the District prior to knowing the full
needs of the Department of State Hospitals, and there is
insufficient property to accommodate future expansion or
reconstruction of the Napa State Hospital, this bill may
ultimately result in future state expenditures for property
acquisition.
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