Bill Text: CA AB1898 | 2017-2018 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State highways: property leases.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2018-05-25 - In committee: Held under submission. [AB1898 Detail]

Download: California-2017-AB1898-Introduced.html

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CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill

No. 1898

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Introduced by Assembly Member Mathis

January 22, 2018

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An act to amend Section 104.16 of the Streets and Highways Code, relating to state highways.

LEGISLATIVE COUNSEL'S DIGEST

AB 1898, 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, and 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 make these provisions applicable to any airspace under a freeway or real property acquired for highway purposes located in a disadvantaged community, as specified.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

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

SECTION 1.

 Section 104.16 of the Streets and Highways Code is amended to read:

104.16.

 (a) Any airspace under a freeway, or real property acquired for highway purposes, in the City and County of San Francisco, Francisco or in a disadvantaged community as defined in Section 79505.5 of the Water Code, that is not excess property, shall be offered for lease on a right of first refusal by the department to the city and county City and County of San Francisco or to the city or county in which the disadvantaged community is located or a political subdivision of the city and county, 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, 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) Any property leased pursuant to paragraph (2) shall be located within a priority development area.

(4) 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 city and county. City and County of San Francisco or the disadvantaged community.

(d) The city and county City and County of San Francisco or a political subdivision of the city and county, county or the disadvantaged community, in consultation with the department, shall follow all applicable health, environmental, safety, design, and engineering standards.

(e) Any lease 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) As used in this section, “priority development area” means an area identified in a sustainable communities strategy developed pursuant to Section 65080 of the Government Code.

(g) The Legislature finds and declares that the lease of real property pursuant to this section serves a public purpose.