BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 1095 (Evans) - State highway route 12: property transfer.
Amended: As Introduced Policy Vote: T&H 11-0
Urgency: No Mandate: No
Hearing Date: May 12, 2014 Consultant: Mark McKenzie
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 1095 would delete a portion of State Highway
Route (SR) 12 from the state highway system and state
legislative intent to enact legislation to declare the deleted
portion of SR 12 as surplus and transfer that property to local
agencies for parks and recreation purposes.
Fiscal Impact: Potential loss of revenues, estimated to exceed
$15 million, to the extent the SR 12 property is transferred to
local agencies for parks and recreation purposes rather than
being sold at fair market value following an appraisal. (State
Highway Account)
Background: Existing law authorizes the Department of
Transportation (Caltrans) to sell property that is no longer
needed for state highway purposes, upon the terms and conditions
established by the California Transportation Commission (CTC).
Pursuant to CTC regulations, excess property is generally
offered for sale by competitive bid at public auction to the
highest bidder. Specified exceptions to the auction process
include an authorization for sale of excess property directly to
public agencies for public use at fair market price. Existing
law requires the proceeds from the sale of surplus state highway
property to be deposited into the State Highway Account for use
on state highway projects.
Caltrans purchased 65 parcels of land covering 55 acres for a SR
12 bypass that would connect to a proposed bridge over Spring
Lake in the City of Santa Rosa. After local voters defeated a
plan for the bridge, however, the planned bypass project was no
longer feasible. Caltrans is in the process of rescinding the
unconstructed segment of SR 12 from the state highway system and
declaring the property as excess. The CTC will consider the
route rescission at the upcoming meeting on May 21-22. Assuming
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there is favorable consideration for the rescission, it is
likely that the property will not be deemed excess and available
for sale until early 2015.
Caltrans indicates that the 65 parcels of property were
purchased with gas tax revenues over multiple years from 1955 to
1972, and the cumulative purchase price was approximately
$740,000. The current estimated market value of the properties
is $17-$25 million at its highest and best use. Staff notes
that this estimated value is based on comparative property
values in the area, which is fully developed, and not an
appraisal.
Proposed Law: SB 1095 would delete a segment of SR 12 in the
City of Santa Rosa. The bill would also state legislative
intent to enact legislation to declare as surplus property
approximately 55 acres of right-of-way acquired by Caltrans for
an abandoned SR 12 freeway alignment, and to transfer the
property to local agencies for park and recreation purposes, to
be known as the Southeast Greenway.
Staff Comments: If this bill results in the sale of surplus
property originally purchased for state highway purchases at a
value based upon its use for parks and recreation, there would
be a substantial loss of revenue to the State Highway Account,
likely exceeding $15 million.
As noted above, Caltrans is currently expediting the process of
rescinding this property from the state highway system and
declaring the property as surplus, at which time a local agency
would have the first right of refusal to purchase the property
at fair market value. Typically, the statutory route
designations of the state highway system are not amended to
delete a segment of a state highway route until after property
is deemed excess and sold. This bill reverses existing
processes by deleting a segment from SR 12 prior to that
property being declared as excess.
Recommended Amendments: If the author's intent is to require the
property to be declared surplus and to transfer it to local
agencies for park and recreation purposes, the bill should be
amended to delete the intent language and to insert the
prescriptive requirements into statute.
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