BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 649
                                                                  Page  1

          Date of Hearing:   July 1, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                     SB 649 (Ashburn) - As Amended:  May 4, 2009 

          Policy Committee:                               
          TransportationVote:13-0 (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires Caltrans to transfer ownership, by June 30,  
          2010 and at fair market value, of 577 acres, known as Site A of  
          the Mohave Bypass property in Kern County, to the East Kern  
          Airport District (EKAD).  The bill exempts from the transfer the  
          portion of the property constituting the right-of-way for State  
          Route 14, thus the net acreage is about 500.

           FISCAL EFFECT  

          Based on an estimated value of $2,500 to $3,000 per acre,  
          one-time special fund revenue to Caltrans of $1.25 million to  
          $1.5 million for the property transfer.  [State Highway  
          Account.]

           COMMENTS  

           Background and Purpose  .  EKAD operates the Mojave Air and Space  
          Port, the nation's first inland spaceport.  EKAD is seeking  
          ownership of property owned by Caltrans, and located at the end  
          of EKAD's primary runway, in order to reduce encroachment near  
          the runway and to curb dust events that have forced runway  
          closure.  Caltrans owns three properties in the area (referred  
          to as Sites A, B, and C) and has reportedly used them for  
          construction of the Mojave Bypass project.  

          Negotiations between EKAD and Caltrans over property around the  
          airport have been going on for years but have stalled.   
          According to Caltrans, its efforts to re-vegetate Site A were  
          generally successful and little additional work needs to be  
          completed before its obligations to stabilize the property are  








                                                                  SB 649
                                                                  Page  2

          met.  Simultaneously, Caltrans is currently proceeding to  
          declare Site A surplus so that it can be offered for sale to  
          EKAD.  The author contends this bill is nevertheless necessary  
          to keep both parties on track to complete final transfer of the  
          property in a timely manner.

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