BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 944
                                                                  Page  1

          Date of Hearing:   August 6, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 944 (Torres) - As Amended:  June 18, 2014 

          Policy Committee:                              
          AccountabilityVote:12-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill prohibits the Lanterman Developmental Center, which  
          has been declared surplus state property, from being prezoned,  
          zoned, or rezoned by any local government without approval of  
          the Department of General Services (DGS), and makes several  
          other changes to state surplus property law. Specifically, this  
          bill:   

          1)Prohibits any local government from prezoning, zoning, or  
            rezoning the state real property known as Lanterman  
            Developmental Center, located in Pomona (LA County), which has  
            been declared surplus pursuant to existing law, unless DGS  
            requests that the property be rezoned or approves the  
            rezoning.

          2)Expands the type of uses for state surplus property, for which  
            a local agency or affordable housing developer may be  
            considered a potential priority buyer for the property, to  
            include development of projects that create sustainable jobs  
            of benefit to the area and region where the property is  
            located.

          3)Specifies, if more than one local agency expresses interest in  
            the surplus property, that priority must be given to the  
            agency intending to use the property either for affordable  
            housing, pursuant to current law, or for development of  
            projects that create sustainable jobs.

          4)Adds to an existing legislative declaration-the provision of  
            decent housing for all Californians as a state goal of the  
            highest priority when the state disposes of surplus  








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            property-the creation of sustainable jobs as a similar state  
            goal.

          5)Adds development of projects that create sustainable  
            employment opportunities to the existing declaration of  
            legislative intent that DGS should give priority to housing  
            for persons and families of low- or moderate- income when  
            disposing of surplus state real property.

           FISCAL EFFECT  

          1)Potential loss of state revenue. This would occur when a local  
            agency, using its right of first refusal to obtain surplus  
            state property under current law, purchases property for  
            another party to then purchase, at a higher price, and develop  
            for "sustainable employment" in lieu of the state being able  
            to subsequently solicit bids for the property on the open  
            market. The potential revenue loss is unknown, but could  
            easily exceed $150,000 for certain state properties.

          2)Providing DGS authority to approve any rezoning of the  
            Lanterman property should preserve the state's ability to  
            dispose of that property in the state's best interest.  
            According to DGS, based on discussions to date with City of  
            Pomona, the issuing of rezoning does not appear to be a  
            concern for the department as it has been with other state  
            properties.

           COMMENTS 

              1)   Purpose  . According to the author, "There are three  
               examples of local agencies initiating action to re-zone or  
               actually accomplishing re-zoning of excess real estate to  
               reduce or attempt to reduce the value.  They are:  the  
               County of Napa's rezoning of the Department of Mental  
               Health's Napa State Hospital, the City of Los Angeles'  
               rezoning of the Los Angeles Civic Center, and the City of  
               Whittier's proposed rezoning of the Fred C. Nelles Youth  
               Correctional Facility.

            "In light of these examples, the issues have become of  
            particular importance to the constituents of the 32nd Senate  
            District.  This is because on January 29, 2010, the California  
            Department of Developmental Services announced its intent to  
            close the 302-acre Lanterman Developmental Center in Pomona,  








                                                                  SB 944
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            California.  Upon closure, the property will be surplused.  If  
            the property is re-zoned it will likely result in a decrease  
            in market value, and potentially be re-zoned in a manner that  
            is inconsistent with the long term interests of the  
            surrounding area and region.  In particular, the need to  
            ensure sustainable job creation in an area of the state that  
            has an unemployment rate of 9.5%.

              2)   Precedent  .  While this bill applies only to one  
               property, it does creates a precedent of allowing DGS to  
               trump the authority of a local government to enact zoning  
               ordinances.

              3)   Opposition . The Sonoma County Board of Supervisors and  
               the Sonoma County Preservation and Open Space District are  
               concerned that the bill's provisions granting statewide  
               priority for development of sustainable employment could  
               impact the county's plans, should the Sonoma Development  
               Center be declared surplus, for other priority uses of this  
               property such as open space. Opponents seek amendments  
               limiting the sustainable development provisions to the  
               Lanterman Property.

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