BILL ANALYSIS
AB 113
Page 1
Date of Hearing: April 27, 2009
ASSEMBLY COMMITTEE ON TRANSPORTATION
Mike Eng, Chair
AB 113 (Portantino) - As Introduced: January 13, 2009
SUBJECT : Department of Transportation: surplus property:
State Route 710
SUMMARY : Requires the California Department of Transportation
(Caltrans) to sell real property it owns in the unconstructed
portion of the State Route (SR) 710 corridor in Los Angeles
County. Specifically, this bill :
1)Makes legislative findings and declarations, including the
following:
a) Caltrans owns over 500 residential properties in the
unconstructed portion of the SR 710 corridor, some of which
it bought as early as the 1950's;
b) Media reports and legislative hearings have indicated
that Caltrans has been negligent in its maintenance of the
properties;
c) A 2006 legislative audit found that Caltrans had been
negligent in its maintenance of the properties and lacked a
comprehensive and accurate surplus property inventory; and
d) An estimate by the Southern California Association of
Governments (SCAG) suggests that the sale of the properties
in the SR 710 corridor could generate $500 million and
could fund vital state programs.
2)Requires Caltrans, notwithstanding any other provision of law,
to sell real property that it owns within the unconstructed
portion of the SR 710 corridor, north of SR 10.
3)Requires Caltrans, when selling residential properties, to do
so according to existing law, commonly referred to as the
"Roberti bill," with one exception.
4)Provides an exception from this requirement for property
occupied prior to January 1, 2004, by a school or a nonprofit
organization. For this property, Caltrans is required to
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offer the occupant the right of first refusal to purchase the
property.
5)Directs the proceeds from the sale of each parcel as follows:
a) An amount equal to Caltrans' acquisition price to be
deposited into the State Highway Account; and
b) Remaining proceeds to be deposited into the General Fund
and are to be available upon appropriation for higher
education in California.
This bill is an urgency measure.
EXISTING LAW :
6)Allows Caltrans to acquire any real property that it considers
necessary for state highway purposes.
7)Allows Caltrans, whenever it determines that any real property
acquired by the state for highway purposes is no longer
necessary for those purposes, to sell or exchange it in the
manner and upon terms, standards, and conditions established
by the California Transportation Commission (CTC).
8)Requires Caltrans, to the greatest extent possible, to offer
to sell or exchange excess real property within one year from
the date that it determines the property to be excess.
9)Generally requires state and local agencies, prior to
disposing of surplus lands, first to offer property for sale
or lease to local public agencies, housing authorities, or
redevelopment agencies within whose jurisdiction the property
is located. Requires Caltrans to give priority first to
entities agreeing to use the land for low- or moderate-income
housing, then to entities for open-space purposes, school
facilities construction, enterprise zone purposes, and infill
opportunities, in that order.
10)Provides an exception from these provisions for the disposal
of surplus residential properties in the unconstructed portion
of the SR 710 corridor. According to this exception, referred
to as the "Roberti bill," surplus properties in this corridor
are to be sold as follows:
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a) First, homes presently occupied by their former owners
must be offered for sale to the occupant at fair market
value. (Caltrans reports that there are no longer any
properties in the SR 710 corridor occupied by previous
owners.);
b) Second, homes are to be offered to present occupants
that have lived in the property for at least two years and
who are persons and families of low or moderate income;
c) Third, homes must be offered for sale to present
occupants that have lived in the home for more than five
years and whose household income does not exceed 150% of
the area median income;
d) Homes are not to be offered to present occupants if the
present occupant has had an ownership interest in real
property in the last three years;
e) Homes offered pursuant to b) and c) above are to be
offered at an affordable price, but not less than the
acquisition price or more than fair market value. Homes
sold at less than fair market value must have deed
restrictions to assure that the house remains available to
families and households of low or moderate income;
f) Prior to selling these properties, Caltrans must provide
repairs required by lenders and government housing
assistance programs;
g) Homes not sold under these terms must then be offered to
housing-related private and public entities for a price
which is best suited economically to using the property for
low- or moderate-income housing; and
h) Any surplus homes not sold pursuant these provisions are
then to be sold at fair market value with first priority
given to purchasers who are present occupants and then to
purchasers who will be owner occupants.
11)Proceeds from the sale of surplus property are deposited
first to the State Highway Account (SHA) and then transferred
to the Public Transportation Account, with few exceptions.
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FISCAL EFFECT : Unknown
COMMENTS : According to the author, "AB 113 will improve the
neighborhoods of my constituents, generate millions of dollars
annually in property tax revenue, and give many long-term
residents of the City and County of Los Angeles their long
awaited opportunity for home-ownership." The author contends
that this bill will accomplish this without eliminating any
future transportation options (such as a tunnel) that are
currently under consideration by the Los Angeles County
Metropolitan Transportation Authority (Metro).
SR 710 serves as a major north-south link in the Los Angeles
County transportation network. It is heavily traveled and
congestion is increasing within the corridor. Additional
congestion is created on surface streets by a 4.5 mile gap that
begins where the SR 710 ends on Valley Boulevard near the Los
Angeles/Alhambra border. Motorists who wish to continue
traveling north must drive on local streets through the cities
of Alhambra, Los Angeles, South Pasadena, and Pasadena. SR 710
resumes at Del Mar Boulevard in the City of Pasadena and
continues 0.6 miles north where it meets the Foothill Freeway
(Interstate 210).
In 1953, the California Highway Commission, the predecessor to
the CTC, adopted the location for the freeway gap closure
project, and Caltrans began using both standard and advance
acquisition procedures to acquire properties for the
right-of-way. During the 20-year period that followed adoption
of the route, Caltrans acquired more than 400 properties with
the intent to raze them to make way for a freeway.
The proposed extension project, however, engendered considerable
controversy, evoking strong opposition and equally strong
support. Embroiled in one lawsuit after another for decades,
Caltrans, with its hundreds of parcels of property in the
corridor, become a reluctant long-term property manager.
Proponents of AB 113 argue that, after decades of waiting, it is
time to sell these properties and use the proceeds to resolve
some of California's revenue problems. Moreover, many of the
supporters AB 113 urge an end to problems they have reportedly
encountered with Caltrans' property management policies and
practices.
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Opponents to this bill, however, assert that AB 113 is an
attempt to thwart completion of the SR 710 freeway gap closure
project by requiring that long-held properties purchased to
build the freeway be sold. They cite regional traffic
congestion and resultant hazardous health issues as reasons why
the project should be completed. Furthermore, opponents argue
that proceeds from the sale of surplus property should not be
diverted away from transportation to pay for higher education
costs.
Writing in opposition to this bill, the City of Monterey Park
states that AB 113 is a "blatant attempt to stop the completion
of the 710 freeway." The city further asserts that "closing the
710 freeway gap is an indispensable component of any effort to
expand and efficiently move national goods through the I-710
corridor and address the transportation needs of the region."
Committee concerns:
12)Currently, Caltrans and Metro have commissioned a technical
study to examine the possibility of extending the SR 710 using
a tunnel. Information gathered throughout the study will
describe soil and sub-surface conditions and will determine
the feasibility of building a tunnel to complete SR 710.
Should the study findings suggest construction of a tunnel is
viable, the next step for project proponents will be to
initiate environmental review studies.
Also, in November 2008, Los Angeles County voters approved
Measure R, a half-cent county-wide sales tax to fund
transportation. The expenditure plan that accompanied that
measure included $780 million in funding for the SR 710 gap
closure tunnel.
The SR 710 project is not dead--far from it, in fact.
Consequently, forcing Caltrans to sell properties that, after
all these years, might actually be needed for the purpose for
which they were bought, would be imprudent.
13)As the project continues to move forward, and if the tunnel
option continues to prevail, Caltrans should be urged to
declare as surplus as many of the properties as possible,
without jeopardizing the project in any way or without putting
itself in inexcusable position of having to purchase
properties back. Until the initial environmental studies are
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complete, however, and at least preliminary alignments sited,
Caltrans should hold on to the properties.
14)When it is time to sell the properties, Caltrans already has
the authority it needs to declare the properties surplus and
to dispose of them. Legislation is not necessary.
15)Any proceeds realized from the sale of surplus property
should be returned to the SHA and used for
transportation-related purposes.
REGISTERED SUPPORT / OPPOSITION :
Support
Caltrans Tenants of the 710 Corridor
City of La Canada Flintridge
City of South Pasadena
Los Angeles Conservancy
South Pasadena Preservation Foundation, Board of Directors
The Waverly School
77 Individuals
Opposition
710 Freeway Coalition
Alhambra Chamber of Commerce
Alhambra Unified School District
Caltrans
City of Alhambra
City of Monterey Park
City of Rosemead
Eugene Sun, Mayor, City of San Marino
Mary Cammarano, Director, San Gabriel County Water District
Southern California Association of Governments
2 Individuals
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093