Tuesday, May 13, 2008

Lawmakers see potential, untapped gold mine in surplus land

By Steve Geissinger

SACRAMENTO — Legislators plan to grill state officials today about failure to sell surplus land, call for a full accounting of unneeded property, and question the University of California about retaining a donated parcel in the South Pacific.

Spurred by MediaNews reports last month, lawmakers want to explore whether longtime but ignored recommendations for streamlining sales of surplus property in high-value markets, such as the Bay Area, could finally be implemented to reduce a budget deficit of perhaps $20 billion.

"Many legislators are pointing to the millions of acres of land and thousands of buildings, some in high-end real estate markets such as the San Francisco Bay Area, as an overlooked and vital resource," according to a statement by the Senate Governmental Organization Committee.

Watchdog organizations that have urged reform in the past — the State Auditor's Office and the Legislative Analyst's Office — will update their suggestions.

Among lawmakers greatest concerns is whether the state has a full accounting of its surplus and underused property.

The two agencies that together control the most property — the departments of General Services and Transportation — will send officials to testify.

Sen. Dean Florez, the Fresno-area Democrat who chairs the committee, said that "in light of the state's budget situation, I think it's appropriate Advertisementthat we take ... a good look at under-performing assets, like surplus property, to help alleviate the state's budget crunch."

Gov. Arnold Schwarzenegger's administration has estimated the value of state surplus property at $5 billion. Proceeds from the sale of unneeded property, under a voter approved measure, must be used to pay down deficit bonds.

Surpluses could be pared from California's holdings, which have grown to 22,000 structures and parcels that, together, would be more than double the size of Los Angeles County.

The Governmental Organization Committee also will question officials with the UC system, which makes it own land use decisions, about retaining a donated parcel on the South Pacific island.

Last month, MediaNews reported that the UC system is operating a little-known research facility, called Gump Station, on 35 acres of prime, resort-quality property on Moorea Island next to Tahiti.

Florez said he wants to encourage UC, "which manages what can be characterized as a resort research destination in Tahiti, to join every aspect of state government in searching for deficit solutions."

"Every property, every asset has to be on the table," Florez said.



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