BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 495
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          Date of Hearing:   May 27, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                      AB 495 (Logue) - As Amended:  May 5, 2011 

          Policy Committee:                              Business and 
          Professions  Vote:                            8-0

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes the Director of General Services (DGS) to 
          transfer to Butte County a 2.29-acre state property previously 
          declared surplus to the state's needs and authorized for sale or 
          transfer pursuant to current law. Specifically, this bill:

          1)Authorizes DGS to transfer the Harts Mill Forest Fire Station 
            (HMFFS), located in Berry Creek, to Butte County.

          2)Requires the county to reimburse DGS for reasonable 
            administrative costs of the transfer.

          3)Requires the county to maintain the property in perpetuity for 
            parks or open space purposes.

           FISCAL EFFECT  

          Transferring the property to the county in lieu of selling the 
          property could result in a one-time General Fund revenue loss of 
          around $130,000, based on a DGS 2010 appraisal of the property.

          (The county's April 2011 appraisal estimates a value of 
          $100,000.  The state put the property up for sale by competitive 
          bidding in April and received no bids. The DGS website currently 
          shows that the department is offering the property for $135,000 
          or best offer.)

          COMMENTS  

           1)Background  . SB 136 (Huff)/Chapter 166 of 2009, authorized DGS 
            to dispose all or any portion of the HMFFS. Current law 








                                                                  AB 495
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            requires DGS, if surplus property is not needed by any other 
            state, and prior to being offered for sale to private entities 
            or individuals, to offer the property to the appropriate local 
            government(s) for local government facilities, parks and 
            recreation, open-space, or low- or moderate-income housing. 
            This right-of-first refusal period to local government extends 
            for only 60 days. 

            A local recreation district notified DGS of its interest in 
            HMFFS and entered into negotiations, but eventually declined 
            to purchase the property. Butte County then became interested 
            in the property, but could not negotiate with the state as the 
            60-day period for right-of-first refusal had expired. The 
            state put the property up for sale by competitive bidding last 
            month and received no bids, except for a bid from the county 
            that offered a land swap for a 1.3-acre parcel of county 
            property along Highway 162 near the Gold County Casino. The 
            department indicates that it is not interested in the land 
            swap.

           2)Purpose  . According to the author's office, the HMFFS is 
            blighted, including a contaminated well and asbestos on site. 
            The author believes it is highly unlikely that the state could 
            make a profit on a private sale. Despite its detriments, the 
            site is a historical landmark for the community of Berry 
            Creek, and residents have actively advocated for a multi-use 
            community center and park on its location.
            
           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081