BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1119| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 1119 Author: Wolk (D), et al. Amended: 3/28/16 Vote: 27 SENATE GOVERNMENTAL ORG. COMMITTEE: 9-3, 4/12/16 AYES: Hall, Block, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire NOES: Berryhill, Gaines, Vidak NO VOTE RECORDED: Runner SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/27/16 AYES: Lara, Beall, Hill, McGuire, Mendoza NOES: Bates, Nielsen SUBJECT: Surplus state property: Napa County Regional Park and Open Space District SOURCE: County of Napa DIGEST: This bill extends the sunset date, which expired on January 1, 2015, to January 1, 2021, for the state to sell the area known as the Skyline Park in the County of Napa. This bill also revises the current authorization for the state to sell the Skyline Park from the County of Napa to the Napa County Regional Park and Open Space District. ANALYSIS: Existing law: SB 1119 Page 2 1)Authorizes the Director of the Department of General Services (DGS) to sell or exchange, at fair market value based upon an appraisal approved by DGS, all or part of a specified parcel of state property only to the County of Napa upon those terms, conditions, reservations, and exceptions the director determines are in the best interest of the state, by January 1, 2015, and subject to other requirements. 2)Requires reimbursement of DGS for any cost or expense incurred in the disposition of the property from the proceeds of the disposition of the property. 3)Requires the proceeds from this sale to be deposited in the Deficit Recovery Bond Retirement Sinking Fund Subaccount until the bonds associated with this subaccount are finally paid. This bill: 1)Extends the current sunset date, which expired on January 1, 2015, to January 1, 2021, for the state to sell, at fair market value, the area known as the Skyline Park in the County of Napa. 2)Revises the current authorization for the state to sell the Skyline Park from the County of Napa to the Napa County Regional Park and Open Space District. 3)Revises the reference to the Deficit Recovery Bond Retirement Sinking Fund Subaccount, given that the principal and interest on the bonds has been provided and no more bonds are outstanding. 4)Directs, consistent with the California Constitution, that proceeds be paid into the Special Fund for Economic Uncertainties, which is continuously appropriated. SB 1119 Page 3 Background Purpose of the bill. According to the author, the bill "seeks to extend the sunset date for the state to sell or exchange, at fair market value, the area known as the Skyline Park to the Napa County Regional Park and Open Space District. Skyline Wilderness Park has been operated as a public park for more than three decades. Several years ago, state law authorized the sale of Skyline Park to Napa County so the land would be used as a public park in perpetuity. The three year authorization period expired on January 1, 2015." The author further argues that, "an earlier effort by the County of Napa to purchase the property did not succeed because the County and the State could not agree to the fair market value for the property in time. This bill seeks to give the County of Napa more time to continue negotiations for the sale of the Park." The Skyline Wilderness Park. The Skyline Wilderness Park is an 850-acre parcel public park located on the grounds of Napa State Hospital in Napa County. The Park includes 12 miles of hiking, riding, and bicycling trails, a native plant garden, horse arena, and an archery range. According to the author, "the Skyline Wilderness Park is a highly valuable public amenity, not only for recreation but also to protect a pristine watershed and preserve a rich wildlife habitat. Additionally, this property was placed on the surplus property list by the Department of Mental Health. The Department retains sufficient property near the present hospital for any foreseeable expansion." Currently, the Napa County leases the Park from the State of SB 1119 Page 4 California at $100 per year. However, the park has in the past been placed on a list of state surplus property. The lease has a term of 50 years, which expires in 2030. Napa County has placed a cent local tax on the November ballot to raise funds for the purchase of the Park. The sunset extension allows time for a local vote and time to raise the needed revenue. Prior Legislation AB 2279 (Evans, Chapter 595, Statutes of 2010) authorized DGS to sell or exchange, at no less than current fair market value, the Skyline Park to the County of Napa by January 1, 2015, upon terms and conditions DGS deems are in the best interest of the state. AB 600 (Hall, 2009) would have authorized DGS to lease state-owned property (the Compton Armory, to the City of Compton) at fair market value for a period not to exceed five years, with an option to extend the least to 25 years. (Vetoed by Governor Schwarzenegger) SB 678 (Wiggins, 2007) would have authorized DGS to sell or exchange at current fair market value, by January 1, 2010, to the County of Napa, certain property located in the County of Napa under specified conditions. (Vetoed by Governor Schwarzenegger) FISCAL EFFECT: Appropriation: Yes Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee, one-time General Fund revenue gains, likely in the millions, related to the sale of Napa State Hospital property at fair market value. SB 1119 Page 5 (Special Fund for Economic Uncertainties) In addition, 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. Also, potential foregone revenues, to the extent this bill limits the sale to one entity for park or wilderness purposes, thereby potentially depressing the appraised fair market value. Finally, 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. SUPPORT: (Verified5/27/16) County of Napa (source) Napa County Regional Park and Open Space District OPPOSITION: (Verified5/27/16) None received ARGUMENTS IN SUPPORT: According to the Napa County Regional Park and Open Space District, "the importance of the park to the residents of Napa County cannot be overstated. It is within a SB 1119 Page 6 few minutes' drive for over 80 percent of the residents of Napa County. It provides an exceptional experience for hikers, equestrians, mountain bicyclists and campers, and accommodates an archery range, a disc golf course, a small horse arena, and a native plant garden. Our District and our community are committed to raising the funds needed to acquire the park." Prepared by:Felipe Lopez / G.O. / (916) 651-1530 5/28/16 16:57:31 **** END ****