BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 600
                                                                  Page  1

          Date of Hearing:   April 29, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     AB 600 (Hall) - As Amended:  April 2, 2009 

          Policy Committee:                              Business and  
          Professions  Vote:                            8-3

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes the leasing of state-owned armory property  
          in the City of Compton.  Specifically, this bill:

          1)Authorizes the Department of General Services (DGS), until  
            January 1, 2012 and with the approval of the Adjutant General  
            of the Military Department, to lease the state-owned Compton  
            Armory property to the City of Compton for five years at fair  
            market value.

          2)Authorizes DGS, with the approval of the Adjutant General, to  
            renew the lease after completion of the term in (1) for a term  
            or terms not to exceed 25 years.

          3)Requires the City to submit any proposals to modify or  
            refurbish the armory to DGS and the Adjutant General for  
            review and approval.

          4)Requires the City to reimburse DGS for the state's cost of  
            executing the lease documents.

           FISCAL EFFECT  

          Probably minor annual revenue to the Armory Fund.  DGS has not  
          yet determined a fair market lease value for the property.

           COMMENTS  


           Purpose  .  According to the author's office, the California  
          National Guard vacated the 60-year-old armory in Compton in  








                                                                  AB 600
                                                                  Page  2

          November 2006.  The 4.5-acre site has remained underutilized and  
          in a state of disrepair for nearly three years. The City is  
          interested in using the property to further serve its residents  
          and would thus like the option of leasing the site for a longer  
          term than the five year limit under current law.  The City  
          believes that without a longer lease period it would be unlikely  
          that the City could realize a return on the investment needed to  
          renovate the armory.


          The Military Department indicates that it does not intend to  
          declare the property surplus, which would begin the process  
          potentially leading to state disposition of the site.   
          Therefore, a lease as envisioned in this bill is a feasible  
          alternative to make use of the site until such time as the  
          department either decides to either reuse or dispose of the  
          property.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081