Bill Text: CA AB806 | 2015-2016 | Regular Session | Chaptered
Bill Title: Community development: economic opportunity.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2016-09-23 - Chaptered by Secretary of State - Chapter 503, Statutes of 2016. [AB806 Detail]
Download: California-2015-AB806-Chaptered.html
BILL NUMBER: AB 806 CHAPTERED
BILL TEXT
CHAPTER 503
FILED WITH SECRETARY OF STATE SEPTEMBER 23, 2016
APPROVED BY GOVERNOR SEPTEMBER 23, 2016
PASSED THE SENATE AUGUST 15, 2016
PASSED THE ASSEMBLY AUGUST 30, 2016
AMENDED IN SENATE AUGUST 8, 2016
AMENDED IN SENATE AUGUST 1, 2016
AMENDED IN SENATE JUNE 21, 2016
AMENDED IN SENATE JUNE 6, 2016
AMENDED IN SENATE APRIL 14, 2016
AMENDED IN SENATE JULY 13, 2015
AMENDED IN ASSEMBLY MAY 28, 2015
AMENDED IN ASSEMBLY APRIL 6, 2015
INTRODUCED BY Assembly Members Dodd and Frazier
FEBRUARY 26, 2015
An act to amend Sections 52200.2, 52200.6, 52201, and 52202 of the
Government Code, relating to local government.
LEGISLATIVE COUNSEL'S DIGEST
AB 806, Dodd. Community development: economic opportunity.
Under existing law, before certain city, county, or city and
county property is sold or leased for economic development purposes,
approval of the sale or lease by the legislative body by resolution,
after a public hearing, is required. Existing law requires that
resolution to contain a finding that the sale or lease of the
property will assist in the creation of economic opportunity, as
defined.
This bill would recast these provisions to instead authorize a
city, county, or city and county, with the approval of its
legislative body by resolution after a public hearing, to acquire,
sell, or lease property in furtherance of the creation of an economic
opportunity, as defined. The bill would require the resolution to
contain a finding that the acquisition, sale, or lease of the
property will assist in the creation of economic opportunity and
would require the creation of an economic opportunity to be subject
to specified public notice and hearing provisions.
Existing law prohibits the use of eminent domain for economic
development purposes.
This bill would prohibit a city, county, or city and county from
selling, leasing, or otherwise transferring, at a price that is less
than the fair market value, for economic development purposes, any
real property that was acquired through eminent domain, except as
specified.
Existing law authorizes a city, county, or city and county to
establish a program under which it loans funds to owners or tenants
for the purpose of rehabilitating commercial buildings or structures.
This bill would revise that authorization by requiring the loan to
be in the form of a written loan agreement that includes a payment
schedule, the terms for interest calculation, the rights and remedies
of the parties in case of default, and any other material terms of
the loan. The bill would require, prior to entering into that loan
agreement, the city, county, or city and county to find, after a
public hearing, that the assistance is necessary for the economic
feasibility of the development and that the assistance cannot be
obtained on economically feasible terms in the private market.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 52200.2 of the Government Code is amended to
read:
52200.2. As used in this part, "economic opportunity" means any
of the following:
(a) Development agreements, loan agreements, sale agreements,
lease agreements, or other agreements that create, retain, or expand
new jobs, in which the legislative body finds that the agreement will
create or retain at least one full-time equivalent, permanent job
for every thirty-five thousand dollars ($35,000) of city, county, or
city and county investment in the project after full capacity and
implementation.
(b) Development agreements, loan agreements, sale agreements,
lease agreements, or other agreements that increase property tax
revenues to all property tax collecting entities, in which the
legislative body finds that the agreement will result in an increase
of at least 15 percent of total property tax resulting from the
project at full implementation when compared to the year prior to the
property being acquired by the government entity.
(c) Creation of affordable housing, if a demonstrated affordable
housing need exists in the community, as defined in the approved
housing element or regional housing needs assessment.
(d) Projects that meet the goals set forth in Chapter 728 of the
Statutes of 2008 and have been included in an adopted sustainable
communities strategy or alternative planning strategy or a project
that specifically implements the goals of those adopted plans.
(e) Transit priority projects, as defined in Section 21155 of the
Public Resources Code.
SEC. 2. Section 52200.6 of the Government Code is amended to read:
52200.6. (a) (1) This part shall not be interpreted to authorize
the use of eminent domain for economic development purposes.
(2) For the purposes of this part, a city, county, or city and
county shall not sell, lease, or otherwise transfer, at a price that
is less than the fair market value, any real property that was
acquired through eminent domain. This prohibition shall not apply to
either of the following:
(A) Any real property governed by a long-range property management
plan pursuant to Section 34191.5 of the Health and Safety Code.
(B) Any housing asset transferred to a city, county, or city and
county pursuant to paragraph (1) of subdivision (a) of Section 34176
of the Health and Safety Code or subdivision (c) of Section 34181 of
the Health and Safety Code, provided that the successor agency or the
designated local authority in the affected jurisdiction has received
a finding of completion from the Department of Finance pursuant to
Section 34179.7 of the Health and Safety Code.
(b) The creation of an economic opportunity pursuant to this part
shall be subject to the provisions of Section 53083.
(c) The provisions of this part shall be an alternative to any
authority of a city, county, or city and county to create an economic
opportunity or to acquire, sell, or lease property for economic
development, found in the Constitution, state law, local ordinance,
or charter. This part does not limit, or in any way affect, the
application of any other such laws.
SEC. 3. Section 52201 of the Government Code is amended to read:
52201. (a) (1) A city, county, or city and county may acquire
property in furtherance of the creation of an economic opportunity. A
city, county, or city and county may sell or lease property to
create an economic opportunity. The acquisition, sale, or lease shall
first be approved by the legislative body by resolution after a
public hearing. Notice of the time and place of the hearing shall be
published in a newspaper of general circulation in the community at
least once per week for at least two successive weeks, as specified
in Section 6066, prior to the hearing.
(2) The city, county, or city and county shall make available, for
public inspection and copying at a cost not to exceed the cost of
duplication, a report no later than the time of publication of the
first notice of the hearing mandated by this section. This report
shall contain both of the following:
(A) A copy of the proposed acquisition, sale, or lease.
(B) A summary that describes and specifies all of the following:
(i) The cost of the agreement to the city, county, or city and
county, including land acquisition costs, clearance costs, relocation
costs, the costs of any improvements to be provided by the city,
county, or city and county, plus the expected interest on any loans
or bonds to finance the agreements.
(ii) For the sale or lease of property, the estimated value of the
interest to be conveyed or leased, determined at the highest and
best uses permitted under the general plan or zoning.
(iii) For the sale or lease of property, the estimated value of
the interest to be conveyed or leased, determined at the use and with
the conditions, covenants, and development costs required by the
sale or lease. The purchase price or present value of the lease
payments which the lessor will be required to make during the term of
the lease. If the sale price or total rental amount is less than the
fair market value of the interest to be conveyed or leased,
determined at the highest and best use, then the city, county, or
city and county shall provide as part of the summary an explanation
of the reasons for the difference.
(iv) An explanation of why the acquisition, sale, or lease of the
property will assist in the creation of economic opportunity, with
reference to all supporting facts and materials relied upon in making
this explanation.
(b) The resolution approving the acquisition, sale, or lease shall
be adopted by a majority vote unless the legislative body has
provided by ordinance for a two-thirds vote for that purpose and
shall contain a finding that the acquisition, sale, or lease of the
property will assist in the creation of economic opportunity. For the
sale or lease of property, the resolution shall also contain one of
the following findings:
(1) The consideration is not less than the fair market value at
its highest and best use.
(2) The consideration is not less than the fair reuse value at the
use and with the covenants and conditions and development costs
authorized by the sale or lease.
(c) The provisions of this section are an alternative to any other
authority granted by law to cities to dispose of city-owned
property.
SEC. 4. Section 52202 of the Government Code is amended to read:
52202. (a) A city, county, or city and county may loan funds to
owners or tenants for the purpose of rehabilitating commercial
buildings or structures. The loan shall be in the form of a written
loan agreement that includes a payment schedule, the terms for
interest calculation, the rights and remedies of the parties in case
of default, and any other material terms of the loan.
(b) Prior to entering into a loan agreement pursuant to this
section, the city, county, or city and county shall find, after a
public hearing, that the assistance is necessary for the economic
feasibility of the development and that the assistance cannot be
obtained on economically feasible terms in the private market.
