BILL ANALYSIS �
SENATE GOVERNANCE & FINANCE COMMITTEE
Senator Lois Wolk, Chair
BILL NO: SB 829 HEARING: 3/19/14
AUTHOR: Galgiani FISCAL: Yes
VERSION: 2/13/14 TAX LEVY: No
CONSULTANT: Urquiza
CITY OF ESCALON PROPERTY SALE (URGENCY)
Allows the City of Escalon to sell property previously
acquired with state bond funds.
Background and Existing Law
In the March 2000 statewide primary election, voters
approved Proposition 12, the Safe Neighborhood Parks, Clean
Water, Clean Air, and Coastal Protection Bond Act of 2000
(the Villaraigosa-Keeley Act). In March 2002, voters
approved Proposition 40, The California Clean Water, Clean
Air, Safe Neighborhood Parks, and Coastal Protection Act of
2002. Both Acts allocated bond proceeds to the California
Department of Parks and Recreation for the Per Capita Grant
Program. The program awards grants to local governments for
the acquisition, development, improvements, rehabilitation,
restorations, enhancement, and interpretation of local
parks and recreational lands and facilities.
The Villaraigosa-Keeley Act requires that grant recipients
must agree to use the property only for the purposes for
which the grant was made. The grantee cannot make any
other use or sale or other disposition of the property,
except as authorized by a specific act of the Legislature.
If the use of the property changes or the property is sold
upon approval by the Legislature, the grantee must either
return the funds to the state or use replacement funds for
a purpose that is consistent with the original grant. The
replacement funds can equal the amount of the grant, the
fair market value of the real property, or the proceeds
from the sale of the property, whichever is greater. The
Per Capita Grant Program incorporated these requirements to
its grant contract.
The Legislature has allowed several cities to transfer park
property acquired or developed with state bond funds to
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other public entities on the condition that the cities or
entities provide replacement property:
The City of Merced was allowed to transfer of up to
3 acres of park land to the Merced City School
District (AB 1864, Matthews, 2006).
The City of San Bernardino was allowed to transfer
up to 12.5 acres of park land to the city's
redevelopment agency (AB 1457, Baca, 2006).
The City of Los Angeles was allowed to transfer
parkland and facilities to the Los Angeles Unified
School District (AB 1732, Hall, 2010).
The Legislature also authorized the City of San Jose to
convert to a different use a parcel of parkland acquired
with state bond funds on the condition that the city
acquire another parcel of land adjacent to the park (AB
730, Diaz, 2001).
Changing economic conditions and development patterns have
made it unfeasible for the City of Escalon to use land that
it acquired with state bond funds for a planned park. City
officials want the Legislature's permission to sell the
land and use the proceeds to acquire a new park site.
Proposed Law
Senate Bill 829 allows the City of Escalon to sell
specified parcels of land acquired with state bond funds if
the city complies with the provisions of the
Villaraigosa-Keeley Act, and submits to the California
Department of Parks and Recreation a proposal demonstrating
compliance with the Act and a proposal that contains the
following:
The sale price and acquisition price of the
original grant-funded property and the replacement
property, along with a finding that the replacement
property has a value that equals the amount of the
grant used to acquire the original property, the fair
market value of that real property, or the proceeds
from the sale, whichever is greater.
A commitment by the city to file a deed restriction
on the replacement property, if the proposal is
approved by the department.
Current appraisals of both properties, along with a
third-party review of the appraisals.
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A willing seller letter for the replacement
property to be acquired.
A parcel map of the replacement property to be
acquired and the proposed new site.
A conceptual site plan for the replacement
property, if the property requires development for
public use.
A commitment by the city to develop the replacement
property for recreational purposes.
Senate Bill 829 prohibits the sale of the property until
the California Department of Parks and Recreation
determines that all required conditions have been met.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill . In 2004, the City of Escalon used
funds from the Per Capita Grant Program to purchase 31
acres outside of city limits for a regional park. Funds to
build the park were to come from a planned housing
development adjacent to the park property. As a result of
the economic downturn and housing crisis, the housing was
not built, leaving the City Escalon with remote undeveloped
parkland. The City of Escalon plans to purchase alternate
property for a park near or within city limits. SB 829
allows the City of Escalon to sell the property and
reinvest in a more feasible park site.
2. Urgency . Regular statutes take effect on January 1st
following their enactment; bills passed in 2014 take effect
on January 1, 2015. The California Constitution allows
bills with urgency clauses to take effect immediately if
they're needed for the public peace, health, and safety.
SB 829 contains an urgency clause declaring that it is
necessary for its provisions to go into effect immediately
to facilitate the timely use of grant funds and the
development of parkland in the City of Escalon.
3. Special legislation . The California Constitution
prohibits special legislation when a general law can apply
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(Article IV, Sec. 16). SB 829 contains findings and
declarations explaining the need for legislation that
applies only to the City of Escalon.
Support and Opposition (3/13/14)
Support : City of Escalon.
Opposition : Unknown.