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AB-246 State highways: property leases.(2019-2020)

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Date Published: 01/22/2019 09:00 PM
AB246:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 246

Introduced by Assembly Members Mathis, Bonta, and Gipson

January 22, 2019

An act to add Section 104.23 to the Streets and Highways Code, relating to state highways.


LEGISLATIVE COUNSEL'S DIGEST


AB 246, as introduced, Mathis. State highways: property leases.
Existing law provides that the Department of Transportation has full possession and control of the state highway system, including associated property. Existing law authorizes the department to lease certain property, including the area above or below a state highway, and certain property held for future highway purposes to public agencies under specified terms and conditions, including specific provisions governing leases of airspace and other property in the City and County of San Francisco for purposes of an emergency shelter or feeding program, at a lease cost of $1 per month and payment of an administrative fee not to exceed $500 per year.
Existing law also requires that a lease be offered on a right of first refusal by the department to the city and county or a political subdivision of the city and county and authorizes leases of property for park, recreational, or open-space purposes, subject to certain additional terms and conditions, including a requirement for the department to lease property located within a priority development area to the city and county for up to 10 parcels, at a specified below market value lease amount, and a requirement, applicable to all leases, for the lessee to be responsible for all associated maintenance costs. Existing law also requires that a lease authorize the lessee to subsidize its maintenance costs through a limited revenue generation model, with any revenues generated above the maintenance costs to be shared with the state, and requires the City and County of San Francisco or a political subdivision of the city and county, in consultation with the department, to follow all applicable health, environmental, safety, design, and engineering standards.
This bill would similarly authorize the department to offer a lease on a right of first refusal basis of any airspace under a freeway, or real property acquired for highway purposes, located in a disadvantaged community, that is not excess property to the city or county in which the disadvantaged community is located for purposes of an emergency shelter or feeding program, or for park, recreational, or open-space purposes for a rental amount of $1 per month, subject to certain conditions. The bill would also authorize the department to lease up to 10 parcels in any city, or in the unincorporated area of any county, in which the disadvantaged community is located for park, recreational, or open-space purposes at an amount equal to 30% of the fair market lease value of the applicable parcel.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 104.23 is added to the Streets and Highways Code, to read:

104.23.
 (a) Any airspace under a freeway, or real property acquired for highway purposes, in a disadvantaged community as defined in Section 79505.5 of the Water Code, that is not excess property, may be offered for lease on a right of first refusal by the department to the city or county in which the disadvantaged community is located for purposes of an emergency shelter or feeding program, or for park, recreational, or open-space purposes.
(b) (1) The lease amount for emergency shelter or feeding programs shall be for one dollar ($1) per month.
(2) For up to 10 parcels in any city, or in the unincorporated area of any county, the lease amount for park, recreational, or open-space purposes shall be 30 percent of the fair market lease value of the applicable parcel.
(3) The lease amount may be paid in advance of the term covered in order to reduce the administrative costs associated with the payment of the monthly rental fee. The lease shall require the payment of an administrative fee not to exceed five hundred dollars ($500) per year, unless the department determines that a higher administrative fee is necessary, for the department’s cost of administering the lease.
(c) In the case of a lease for park, recreational, or open-space purposes, in order to offset any potential loss of revenue, the department may include parcels leased pursuant to this section in a mitigation bank to be used to advance future development projects or highway projects within the disadvantaged community.
(d) The city or county in which the disadvantaged community is located, in consultation with the department, shall follow all applicable health, environmental, safety, design, and engineering standards.
(e) Any lease of real property pursuant to this section shall require the lessee to fund and construct all associated infrastructure and to accept full responsibility for liability related to those uses. The lease shall require the lessee to be responsible for all maintenance costs associated with those uses, except as otherwise provided in the lease. The lease shall authorize the lessee to subsidize its associated maintenance costs through generation of revenue under a limited revenue generation model, such as from limited parking facilities located on the leased property, if any revenues generated that exceed the associated maintenance costs are shared with the state, at a rate not less than 50 percent of those excess revenues, with that amount to be deposited in the State Highway Account.
(f) The Legislature finds and declares that the lease of real property pursuant to this section serves a public purpose.