BILL ANALYSIS �
SB 829
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Date of Hearing: June 4, 2014
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
K.H. "Katcho" Achadjian, Chair
SB 829 (Galgiani) - As Amended: February 13, 2014
SENATE VOTE : 34-0
SUBJECT : Local government: City of Escalon: sale of property.
SUMMARY : Allows the City of Escalon to sell specified parcels
of land, which were acquired with state bond funds, under
certain conditions. Specifically, this bill :
1)Allows the City of Escalon (City) to sell parcels 247-130-34
and 247-130-35 located at 19401 Dahlin Road, in the County of
San Joaquin, if all of the following conditions are met:
a) The City complies with provisions of the Safe
Neighborhood Parks, Clean Water, Clean Air, and Coastal
Protection Bond Act of 2000 (the Villaraigosa-Keeley Act)
that specify maintenance, use, transfer, and disposition
restrictions on the property, and submits to the Department
of Parks and Recreation (DPR) a proposal demonstrating
compliance with those provisions;
b) The City submits to DPR a proposal that contains all of
the following:
i) The sale price and acquisition price of the original
grant-funded property and the replacement property,
respectively, 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;
ii) A commitment by the City to file a deed restriction
on the replacement property,
if the proposal is approved by DPR;
iii) Current appraisals of both properties, along with a
third-party review of the appraisals;
iv) A willing seller letter for the replacement property
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to be acquired;
v) A parcel map of the replacement property to be
acquired and the proposed new site;
vi) A conceptual site plan for the replacement property,
if the property requires development for public use; and,
vii) A commitment by the City to develop the replacement
property for recreational purposes.
2)Prohibits the sale of the original property and purchase of
the replacement property pursuant to 1), above, from occurring
until DPR determines that all of the conditions set forth in
1), above, have been met.
3)Finds and declares that a special law is necessary and that a
general law cannot be made applicable within the meaning of
Section 16 of Article IV of the California Constitution
because of the unique circumstances of the purchase of the
original property by the City and the limits placed on the
use, including the sale of that property, by the
Villaraigosa-Keeley Act.
4)Declares that this bill is an urgency statute necessary for
the immediate preservation of the public peace, health, or
safety within the meaning of Article IV of the Constitution
and shall go into effect immediately. The facts constituting
the necessity are: To facilitate the timely use of grant
funds and the development of parkland in the City, it is
necessary that this act take effect immediately.
EXISTING LAW :
1)Authorizes, under the Villaraigosa-Keeley Act, a financing
program for the acquisition, development, improvement,
rehabilitation, restoration, enhancement, and protection of
park, recreational, cultural, historical, fish and wildlife,
lake, riparian, reservoir, river, and coastal resources,
through the issuance of general obligation bonds.
2)Requires that the proceeds from the Villaraigosa-Keeley Act be
used only for the purpose for which the grant was made.
3)Prohibits a property that was purchased with grant funds from
changing to a use that is not permitted under the
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Villaraigosa-Keeley Act unless such a change is authorized by
the Legislature.
4)Requires, if the use of the property changes or the property
is sold, the grantee to receive or purchase property of equal
value and create new parkland, or return the funds back to the
state, as specified.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS :
1)Purpose of this bill . This bill allows the City to sell
specified parcels of land, that were originally acquired with
Villaraigosa-Keeley Act bond funds, as long as the City meets
specified conditions and DPR determines that those conditions
have been met. This bill is author-sponsored.
2)Author's statement . According to the author, "The City of
Escalon obtained grant funds from the (Villaraigosa-Keeley)
Act to acquire property outside the City limits for a creation
of a new park adjacent to a planned housing development. The
developer canceled its development plans, which left the City
with undeveloped parkland outside City limits where no
residents would reside. This parkland is remote, and without
housing to support utility infrastructure, park development
became unnecessary."
3)Background . The Villaraigosa-Keeley Act requires grant
recipients to 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.
4)Previous legislation . The Legislature has allowed several
cities to transfer park property acquired or developed with
state bond funds to other public entities on the condition
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that the cities or entities provide replacement property:
AB 1732 (Hall), Chapter 191, Statutes of 2010, allowed the
City of Los Angeles to transfer to the Los Angeles Unified
School District (LAUSD) parkland acquired with park bond funds
and, in exchange, LAUSD provided replacement parkland
facilities.
AB 1457 (Baca), Chapter 852, Statutes of 2006, allowed the
City of San Bernardino (San Bernardino) to transfer Seccombe
Lake Park to the Redevelopment Agency of San Bernardino in
exchange for replacement park land within reasonable proximity
of Seccombe Lake Park.
AB 1864 (Matthews), Chapter 558, Statutes of 2006, allowed the
City of Merced to transfer up to three acres of land in
Fahrens Creek Park to the Merced City School District to
construct a new school, subject to the provisions of the
Public Park Preservation Act of 1971.
AB 730 (Diaz), Chapter 28, Statutes of 2001, allowed the City
of San Jose to exchange 3.82 acres of parkland at Coyote Creek
Park, acquired with state funds, for a parcel of 13 acres to
be used in the Coyote Creek Park.
5)Urgency clause . This bill contains an urgency clause.
6)Arguments in support . The City of Escalon, in support,
writes, "This bill will allow the City of Escalon to sell 31
acres that was acquired under public resources code. By this
bill, the City will dispose of the land and reinvest in a more
feasible park acquisition pursuant to this grant program."
7)Arguments in opposition . None on file.
REGISTERED SUPPORT / OPPOSITION :
Support
City of Escalon
Opposition
None on file
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Analysis Prepared by : Angela Mapp / L. GOV. / (916) 319-3958