BILL ANALYSIS �
AB 495
Page 1
Date of Hearing: January 19, 2012
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
If the director decides that a transfer of the property to the
county is in the best interest of the state in lieu of selling
the property to the highest bidder, based on DGS's most recent
appraisal of the property (2010), there could be a one-time
General Fund revenue loss of around $130,000. However, the state
advertised this property for sale by competitive bidding from
April through October of last year and received no responsive
bids. The department has recently contracted with a private
broker to sell the property for a commission. In addition, the
county is in the process of rezoning the property, with a
designation of "public/quasi-public." This process should be
completed by the spring or summer. Given the apparent lack of
demand for this property and the pending new zoning designation,
the property is unlikely to sell at the appraised value, even if
AB 495
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a willing buyer were to come forth. Rather than incurring the
expense of holding the property indefinitely, this bill gives
the director the option to transfer the property to the county
if the director determines this is the least costly approach in
the long run.
With respect to any environmental contamination on the site
related to water or asbestos, the state's responsibility for any
required remediation is without regard to whether the
disposition is by sale or transfer.
COMMENTS
1)Background . SB 136 (Huff)/Chapter 166 of 2009, authorized DGS
to dispose all or any portion of the HMFFS. Current law
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.
2)Purpose . 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 Berry Creek,
a community of 1,700, and its residents have actively
advocated for a multi-use community center and park on its
location.
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081