BILL ANALYSIS
AB 240
Page 1
ASSEMBLY THIRD READING
AB 240 (Monning)
As Introduced February 10, 2009
Majority vote
BUSINESS & PROFESSIONS 10-0 APPROPRIATIONS 16-0
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|Ayes:|Hayashi, Cook, Conway, |Ayes:|De Leon, Nielsen, |
| |Eng, Hernandez, Nava, | |Ammiano, Davis, Duvall, |
| |Niello, | |Fuentes, Hall, Harkey, |
| |John A. Perez, Ruskin, | |Jones, |
| |Smyth | |Miller, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Revises the terms of a previously authorized exchange
of state-owned surplus real property located in the City of
Santa Cruz (City). Specifically, this bill :
1)Authorizes the Department of General Services (DGS) to convey
its interest in the DeLaveaga Golf Course property to the City
in return for eliminating the requirement to transfer surplus
state property owned by the National Guard (Armory site) to
the City.
2)Authorizes DGS to give the City the right of refusal to
purchase, lease, or exchange the Armory site, subject to the
condition that it will be used for public recreational
purposes in perpetuity.
3)Authorizes DGS to sell, lease, or exchange the Armory site to
any entity if the City declines to purchase the property,
subject to the condition that it will be used for public
recreational purposes in perpetuity.
EXISTING LAW :
1)Requires DGS to exchange with the City, state-owned property
that is currently leased to the City, and which is being used
as a portion of the DeLaveaga Golf Course, for City owned
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property leased to the National Guard for training purposes.
2)Requires DGS to convey the Armory site to the City if it is
deemed to be surplus to the needs of the state and will be
used in perpetuity for recreational purposes.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, negligible fiscal impact. The bill only
changes the mechanism of a previously authorized disposition.
COMMENTS : According to the author's office, "AB 240 would
restructure a law dictating ownership and use of park and
military land located at DeLaveaga Park (Park) within the City
of Santa Cruz (City), preserving ongoing use of the armory site
for military purposes, providing directions for future uses of
the land, and providing for the immediate transfer of
recreational land to the City.
"The City and the state each own portions of Park property. The
Park was bequeathed to the City and the County of Santa Cruz
(County) by Jose Vicente DeLaveaga in the late 1800s. A few
years later the City and the County jointly conveyed a portion
of the Park to the state for a National Guard training camp.
"In 1966, the County transferred its rights in the property to
the city, subject to the condition that the property always be
used for park and recreational purposes.
"In 1967, when the City was adding a municipally owned golf
course to the property, the state and City signed a lease
exchange agreement that proposed an exchange of land, allowing
the City to place several holes of the course on state-owned
property. Under the terms of that agreement, in June 1967 the
City leased 83 acres of the state-owned Park property for use as
a part of the golf course and the State leased 98 acres of
City-owned Park property for military use. The lease exchange
agreement, which is a contract that remains in effect, obligates
the parties to effectuate an "in fee" exchange.
"Today, the original Park property is divided into several
parcels. The state owns two parcels. First, it owns a 40 acre
parcel containing the road to the golf course, Armory
structures, and open space. Second, it owns an 83 acre parcel,
which is leased to the City for six holes of the golf course.
Likewise, the City owns two parcels. First, it owns the 98
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acres parcel adjacent to the golf course, but not contiguous to
the state land, which is leased to state for military purposes.
Second, the City owns the parcel containing the other twelve
holes of the golf course.
"In 1999, the City approached then-Senator McPherson with a
legislative proposal to effectuate a land swap. That bill was
SB 770 (Chapter 188, Statutes of 1999). Under SB 770, the state
was obligated to transfer to the City the 83 acre golf course
site immediately. Additionally, when the armory site is no
longer needed as a camp of instruction by the Military
Department, it would return to the City. The transfer was
contingent on the land being used by the City in perpetuity for
either a municipal golf or public recreation purposes. As
compensation for the 83 acres, the City would transfer to the
state the 98 acre parcel currently leased to the state.
"Unfortunately, due to a number of circumstances, SB 770 has not
been implemented.
"AB 240 restructures the 1999 statute by ensuring that the state
may continue using the armory site for Military purposes and
would make two changes. First, instead of the City giving the
98 acres of essentially vacant land to the state, the City would
quitclaim its rights to the armory building and lands and
authorize the transfer, exchange or lease at a later date if it
is no longer needed as a camp of instruction by the Military
Department. Any subsequent use would be "public recreation" as
provided in current law. Second, the City would get first right
for any lease or sale of the armory property. If the City does
not exercise this right, then the existing law procedures would
operate."
This bill revises the terms of a previously authorized exchange
of state-owned surplus real property located in the City and
reflects efforts by all parties - the City, DGS, and the
National Guard - to consummate the details of this transaction
within the context and restrictions of historical agreements and
uses.
The property comprising DeLaveaga Park was originally owned by
Jose DeLaveaga. Upon his death in the late 1800s, the property
was willed to the City and the County of Santa Cruz. On May 27,
1898, the San Francisco Superior Court settled the resulting
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litigation, determining that the City and County jointly owned
the DeLaveaga property.
In 1899, the Legislature authorized a National Guard "camp of
instruction" and authorized the state to accept donations of
land. On March 4, 1899, the City and County donated a portion
of the DeLaveaga property to the state for the military's camp
of instruction.
On August 2, 1966, the County transferred its rights in the
property to the City, subject to the condition that the property
shall always be used for park and recreational purposes.
In 1967, when the City wanted to construct a municipally owned
golf course on the DeLaveaga property, the State and City signed
a lease exchange agreement. Under the terms of that agreement,
on June 29, 1967, the City leased 83 acres of the state-owned
DeLaveaga property for use as a part of the golf course and the
state leased 98 acres of city-owned DeLaveaga property for
military use. The lease exchange agreement, which remains in
effect, obligates the parties to effectuate an "in fee"
exchange.
In 1999, the City approached Senator McPherson with a
legislative proposal to effectuate the "in fee" swap. That
bill, SB 770, passed the Legislature and was signed by the
Governor (Chapter 188, Statutes of 1999). Under SB 770, the
state was obligated to transfer to the City the 83 acre golf
course site. When it is no longer needed as a camp of
instruction by the Military Department, the armory site would
also return to the City. The transfer was contingent on the
land being used by the City in perpetuity for either municipal
golf or public recreation purposes. As compensation for the 83
acres, the City would transfer to the state the 98 acre parcel
currently leased to the state. Due to a number of
circumstances, that bill was not implemented. More than 40
years have passed since the State and City executed the original
lease-exchange agreement.
As discussed below, this bill is identical to AB 1438 (Laird) of
2007, and AB 2472 (Laird) of 2008, which were vetoed by the
Governor because it did not contain a provision that would
exempt the sale, lease, or other conveyance of the property from
the California Environmental Quality Act (CEQA). Until the last
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few years, surplus property bills have contained CEQA exemptions
as a safeguard against frivolous CEQA actions related to
property transactions that do not require CEQA review under
existing law. In recent years, the CEQA exemptions have been
removed from surplus property bills and the Governor has vetoed
these bills because of his concern that not including a CEQA
exemption would result in significant CEQA-related compliance
costs. However, the enactment of AB 8 X2 (Evans) Chapter 6,
Statutes of 2009-10 Second Extraordinary Session, established a
permanent CEQA exemption for state surplus property sales in a
manner that will presumably eliminate the cause of the
Governor's previous vetoes of surplus property bills that did
not contain individual CEQA exemptions.
SB 770 (McPherson) Chapter 188, Statutes of 1999, authorized the
City and the state to swap ownership of two comparable parcels
presently lease to the each party without monetary
consideration, and specified a procedure by which the State may
reconvey its property interest to the City.
Analysis Prepared by : Ross Warren / B. & P. / (916) 319-3301
FN: 0000248