Existing law authorizes the Director of General Services, with the approval of the Adjutant General, to lease and sell real property held for armory purposes, subject to legislative approval. Existing law establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

This bill would require the Director of General Services, with the approval of the Adjutant General, to offer an option to purchase a portion of the Military Departments San Diego Armory, as specified, to the San Diego Center for Children, a nonprofit organization. The bill would, if the Department of General Services and the San Diego Center for Children do not reach and complete an agreement, as specified, authorize the sale of the armory pursuant to the above-referenced procedures.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

Existing law authorizes the Director of General Services, with the approval of the Adjutant General, to lease and sell real property held for armory purposes, subject to legislative approval. Existing law establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

This bill would require the Director of General Services, with the approval of the Adjutant General, to offer an option to purchase a portion of the Military Departments San Diego Armory, as specified, to the San Diego Center for Children, a nonprofit organization. The bill would, if the Department of General Services and the San Diego Center for Children do not reach and complete an agreement, as specified, authorize the sale of the armory pursuant to the above-referenced procedures.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

Existing law authorizes the Director of General Services, with the approval of the Adjutant General, to lease and sell real property held for armory purposes, subject to legislative approval. Existing law establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

This bill would authorize require the Director of General Services, with the approval of the Adjutant General, to sell offer an option to purchase a portion of the Military Departments San Diego Armory, as specified, to the San Diego Center for Children, a nonprofit organization. The bill would, if the Department of General Services and the San Diego Center for Children do not agree on terms of a sale prior to June 30, 2018, require the armory to be sold in a public bidding process, as specified. reach and complete an agreement, as specified, authorize the sale of the armory pursuant to the above-referenced procedures.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

Existing law authorizes the Director of General Services, with the approval of the Adjutant General, to lease and sell real property held for armory purposes, subject to legislative approval. Existing law establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

This bill would authorize the Director of General Services, with the approval of the Adjutant General, to sell a portion of the Military Departments San Diego Armory, as specified, to the San Diego Center for Children, a nonprofit organization. The bill would, if the Department of General Services and the San Diego Center for Children do not agree on terms of a sale prior to June 30, 2018, require the armory to be sold in a public bidding process, as specified.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

 CONSENT  

Bill No: AB 1057

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 12-0, 6/13/17

AYES: Dodd, Bradford, Cannella, Gaines, Galgiani, Glazer, Hill, Hueso, Lara, Mendoza, Portantino, Vidak

NO VOTE RECORDED: Berryhill

SENATE VETERANS AFFAIRS COMMITTEE: 7-0, 6/27/17

AYES: Newman, Nielsen, Dodd, Hueso, Nguyen, Roth, Wilk

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 76-0, 5/4/17 (Consent) - See last page for vote

SUBJECT:

SOURCE: San Diego Center for Children

DIGEST: This bill requires the Director of the Department of General Services (DGS), with the approval of the Adjutant General, to offer an option to purchase a portion of the California Military Department’s (CMD) San Diego Armory, as specified, to the San Diego Center for Children (SDCC), a nonprofit organization.

ANALYSIS:

Existing law:

1. Authorizes the Director of DGS, with the approval of the Adjutant General, to lease and sell real property held for armory purposes, subject to legislative approval.
2. Establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

This bill:

1. Requires the Director of DGS, with the approval of the Adjutant General, to grant to the SDCC, an option to purchase approximately three-acres of the CMD’s San Diego Armory, as specified.
2. Requires any purchase agreement to include terms and conditions determined by the Director of DGS to be in the best interest of the state based on the fair market value of the property as determined by an appraisal undertaken and approved by the Director of DGS.
3. Requires the sale of the property to be completed and title transferred, within 60 days of the date DGS executes the sales agreement, as specified.
4. Specifies that if the agreement is not completed with the 60 days, the Director of DGS, with the approval of the Adjutant General, is authorized to sell the property to an entity other than the SDCC, as specified.
5. Reserves from the transfer certain mineral rights, as specified.
6. Makes legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

Comments

Purpose of the bill. According to the author’s office, “the SDCC is a private nonprofit organization providing behavioral health and educational services to more than 1200 youth and families annually. Established in 1887, the SDCC is the oldest nonprofit organization in San Diego County serving the needs of vulnerable children youth and families.”

In addition, the author’s office states that, “this bill will allow the SDCC to finally acquire this land. Selling a majority of the three-plus acre parcel to the SDCC, which has leased the land for nearly 20 years, is the appropriate course of action and is in the best interest of the state.”

The SDCC. The SDCC was established in 1887 and is the oldest nonprofit serving the needs of children throughout San Diego County. The SDCC provides behavioral health and educational services to vulnerable and at risk children, youth, and family members via a nationally accredited outpatient, in-home, school-based and residential therapeutic programs, including a K-12 education accredited school.

In November 1998, the three-plus acres located in the southwest corner of the San Diego Armory property was leased to the SDCC for a 10-year period with the option to extend the lease for an additional 10 years, which the SDCC decided to do. The SDCC continues to lease this land and uses a portion of it as a parking lot for its main facility.

Related/Prior Legislation

SB 814 (Senate Governmental Organization Committee, 2017) authorizes DGS to dispose of a specified parcel of state property, consisting of approximately 65 acres, known as portion of the Department of Corrections and Rehabilitation’s Preston Youth Correctional Facility in Amador County. (Pending in Assembly Appropriations Committee)

AB 2247 (Williams, Chapter 382, Statutes of 2016) required the Director of DGS, with the approval of the Adjutant General of the CMD, to grant specified cities and school districts an option to purchase the Santa Barbara Armory, Brawley Armory, Indio Armory, Lynwood Armory, and Ponoma Armory, as defined.

SB 273 (Hueso, Chapter 233, Statutes of 2015) authorized DGS to dispose of two surplus state properties, a Department of Conservation field office in Fresno County and a Department of Forestry conservation camp in Shasta County.

SB 536 (Roth, Chapter 355, Statutes of 2015) authorized DGS, with the approval of the Adjutant General, to sell seven specified state armory properties that are no longer considered needed by the California Military Department.

AB 2174 (Committee on Accountability and Administrative Review, Chapter 337, Statutes of 2014) authorized DGS to dispose of certain state surplus property, subject to specified conditions.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 7/10/17)

San Diego Center for Children (source)

California Alliance

Councilmember Lorie Zapf, City of San Diego

San Diego Nonprofit Association

San Diego Regional Chamber of Commerce

OPPOSITION: (Verified 7/10/17)

None received

ARGUMENTS IN SUPPORT: The SDCC states that, “we have been hoping to acquire the three acre parcel of land adjacent to our main campus in Kearny Mesa referenced in AB 1057, which we have been leasing for parking from the CMD since 1998. We understand that the CMD supports the direct sale of this parcel to the SDCC at fair market value, and if completed, will allow the SDCC to expand the scope of services we provide.”

The San Diego Regional Chamber of Commerce argues that, “the sale of the referenced portion of the San Diego Armory is critical to the long-term mission of the SDCC, and is being taken up in good faith by all parties and the various stakeholders in our region. These three acres in question can help the SDCC operations grow, thereby serving more families and further securing the safety net that has been so vital to hundreds of thousands of children.”

ASSEMBLY FLOOR: 76-0, 5/4/17

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gallagher, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Travis Allen, Bigelow, Cristina Garcia, Patterson

Prepared by:

7/12/17 9:34:35

**** END ****

SENATE COMMITTEE ON

Senator Josh Newman, Chair

2017 - 2018 Regular

Bill No: Hearing Date: 6/27/17

Subject:

DESCRIPTION

Summary:

This bill requires the Director of General Services (DGS), with the approval of the Adjutant General (TAG), to offer an option to purchase a portion of the California Military Department’s (CMD) San Diego Armory, as specified, to the San Diego Center for Children (the Center), a nonprofit organization.

Existing law:

1. Authorizes the Director of DGS, with the approval of the TAG, to lease and sell real property held for armory purposes, subject to legislative approval.
2. Establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

This bill:

1. Requires the Director of DGS, with the approval of the TAG, to grant to the Center, an option to purchase approximately three acres of the San Diego Armory campus, as specified.
2. Requires any purchase agreement to include terms and conditions determined by the Director of DGS to be in the best interest of the state based on the fair market value of the property as determined by an appraisal undertaken and approved by the Director of DGS.
3. Requires the sale of the property to be completed and title transferred, within 60 days of the date DGS executes the sales agreement, as specified.
4. Specifies that if the agreement is not completed with the 60 days, the Director of DGS, with the approval of the TAG, is authorized to sell the property to an entity other than the Center, as specified.
5. Reserves from the transfer certain mineral rights as specified.
6. Makes legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

BACKGROUND

California Military Department

The CMD comprises several organizations, the largest being the approximately 22,000-member California National Guard (CNG), which includes official components of the United States Army and Air Force, as well as purely state entities, such as the State Military Reserve and State Active Duty force. The Adjutant General (TAG) is “dual-hatted” and has both federal and state authorities and responsibilities; therefore, the TAG serves as commander of the federally trained and paid CNG and also as “state director” of the CMD.

Armories. The CMD operates approximately 99 active armory sites throughout the state. Armories (or “readiness centers”) are the primary sites for unit training and are integral to the readiness and responsiveness of CNG personnel for both federal and state missions and non-Guard personnel for state purposes.

Armories are routinely used to mobilize and house troops when the CNG responds to wildfires, while also serving as emergency operations centers for other first-responder agencies. Armories also are used to shelter displaced civilians, who have been evacuated from their homes due to fires, floods or other state emergencies. Several armories throughout the state serve as homeless shelters in the winter months.

Under the traditional model, the federal government (through the U.S. National Guard Bureau) pays for 75% of an armory’s construction costs; the state pays the remaining 25% and contributes the land. After construction, the state manages the armory and pays for all operational and maintenance repair costs. After 25 years, the federal government fully transfers all ownership rights to the state.

In relatively rare cases, where an armory is located on federally owned land, title to the armory building may be shared between the federal and state governments or even be held solely by the federal government. In such cases, the state has no unilateral authority to sell the armory.

Sale of unused armories. Military and Veterans Code Section 435(a) allows for the sale of any real property used for armory purposes, when such a sale is “determined to be in the best interest of the state.” Because California’s armories are critical to the mission success of Guard troops, the state created the Armory Fund to assist in “recycling” the value of sold armories. MVC Section 435(b) provides that the proceeds from the sale, lease, or exchange of armories are to be deposited into the Armory Fund. These deposits are available, upon appropriation by the Legislature, for the acquisition and construction of replacement armories and renovation of operational armories.

Every state agency is required to review annually all proprietary state lands under its jurisdiction to determine if any are in excess of the agency’s foreseeable needs, and to report such properties to DGS. The state employs DGS as its real estate agent, authorizing DGS to sell, lease or exchange surplus properties in the best interests of the state.

Existing law treats the CMD differently from other state agencies, granting it separate authority to manage, sell and lease its property. Legally and functionally, an unused armory is not a surplus property and should not be considered surplus. The facility has not been deemed surplus, but unusable, perhaps even unsafe, and, therefore, inadequate to meet its intended purpose.

A legislative enactment is required to authorize sale of an armory. Historically, legislation is run as the occasion arises and is not uniform. In several recent armory sales, the authorization bills provided specific local governmental entities with first rights of refusal. However, the conditions were inconsistent and the process for the decisions was unclear.

Local agencies, understandably, are interested in the use and disposition of armory properties within their jurisdictions. Local agencies may have owned the property in the past, leased the property or facilities from the CMD, and/or already own property nearby. In some cases, during the Cold War era, local agencies/municipalities donated or sold armory property to the state for a nominal amount, and the armories were developed for civil defense purposes. The armories, while belonging to the State, are part of the fabric of the communities in which they are located.

San Diego Armory. In 1952, the City of San Diego gave the State 17.74 acres of land in order to construct a National Guard armory. Construction of the San Diego armory was completed in 1955.

In early 1998, approximately 2 acres were transferred to the Department of Corrections and Rehabilitation (CDCR) via an Agreement for the Transfer of Control and Possession of State-Owned Real Property for their use regarding a women’s facility.

In November 1998, the remaining 3± acres located in the southwest corner of the property were leased to the San Diego Center for Children for a ten-year period with the option to extend the lease for an additional 10 years. The Center exercised the option and continues to lease the land, using a portion of it as a parking lot for its main facility.

In 2001, Senate Bill 951 “State property” was chaptered into law and among other things, authorized approximately 5 acres of vacant land adjacent to the San Diego Armory, located at 7401 Mesa College Drive in San Diego, to be sold or transferred. Unfortunately, the section of SB 951 that addressed the vacant San Diego Armory land appeared to be a legislative error, as the 2 acres (of the 5 acres deemed excess) had already been transferred to CDCR in 1998.

In 2002, SB 1607 was chaptered and among other things, corrected this error and rescinded the previous year’s authorization (SB 951) to sell 5 acres of excess land at the San Diego Armory site.

When the 2 acres of land was transferred to, it essentially split the remaining land into two pieces. The 12.74-acre, on which the CNG armory is located, and 3± acres located in the southwest corner are completely separated by a 2-acre middle portion controlled by CDCR.

This bill will allow the Children’s Center to finally acquire this land. A majority of the 3± acre parcel is on a steep grade and is not suitable for commercial or private use. Conveying this parcel to the Center, who has leased the land for nearly 20 years, is the appropriate course of action and is in the best interest of the State.

San Diego Center for Children. In 1887, the Women’s Home Association was founded to provide housing and services for struggling and sometimes abandoned women of San Diego. In 1898, the name changed to the Women and Children’s Home of San Diego, and in 1904, it was renamed the San Diego Children’s Home Association. In 1975, the organization changed its name one last time to the San Diego Center for Children. Today, the Center serves vulnerable San Diego, children who are suffering from behavioral health issues, some that have been placed into foster care. The Center also offers counseling, coaching, individual and group therapy, and parenting skills for families.

COMMENT

Committee Comments: Senate Governmental Organization Committee approved this bill, 12-0. It was a Consent Calendar item on the Assembly Floor.

Related Legislation:

AB 1709 (Committee on Veterans Affairs, 2017) revises the armory sale process to provide priority buyer status to local agencies. (Pending in Senate Governmental Organization Committee)

POSITIONS

Sponsor: San Diego Center for Children

Support: California Alliance; San Diego Non-Profit Association; San Diego Regional Chamber of Commerce

Oppose: None received.

-- END --

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Bill Dodd

Chair

2017 - 2018 Regular

Bill No: 1057 Hearing Date: 6/13/2017

SUBJECT: Armories: sales: San Diego Armory

DIGEST: This bill requires the Director of General Services (DGS), with the approval of the Adjutant General, to offer an option to purchase a portion of the California Military Department’s (CMD) San Diego Armory, as specified, to the San Diego Center for Children (SDCC), a nonprofit organization.

ANALYSIS:

Existing law:

1. Authorizes the Director of DGS, with the approval of the Adjutant General, to lease and sell real property held for armory purposes, subject to legislative approval.
2. Establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

This bill:

1. Requires the Director of DGS, with the approval of the Adjutant General, to grant to the SDCC, an option to purchase approximately three-acres of the CMD’s San Diego Armory, as specified.
2. Requires any purchase agreement to include terms and conditions determined by the Director of DGS to be in the best interest of the state based on the fair market value of the property as determined by an appraisal undertaken and approved by the Director of DGS.
3. Requires the sale of the property to be completed and title transferred, within 60 days of the date DGS executes the sales agreement, as specified.
4. Specifies that if the agreement is not completed with the 60 days, the Director of DGS, with the approval of the Adjutant General, is authorized to sell the property to an entity other than the SDCC, as specified.
5. Reserves from the transfer certain mineral rights as specified.
6. Makes legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

Background

Purpose of the bill. According to the author’s office, “the SDCC is a private nonprofit organization providing behavioral health and educational services to more than 1200 youth and families annually. Established in 1887, the SDCC is the oldest nonprofit organization in San Diego County serving the needs of vulnerable children youth and families.”

In addition, the author’s office states that, “this bill will allow the SDCC to finally acquire this land. Selling a majority of the three-plus acre parcel to the SDCC, which has leased the land for nearly 20 years, is the appropriate course of action and is in the best interest of the state.”

The San Diego Center for Children. The SDCC was established in 1887 and is the oldest nonprofit serving the needs of children throughout San Diego County. The SDCC provides behavioral health and educational services to vulnerable and at risk children, youth, and family members via a nationally accredited outpatient, in-home, school-based and residential therapeutic programs, including a K-12 education accredited school.

In November 1998, the three-plus acres located in the southwest corner of the San Diego Armory property was leased to the SDCC for a 10-year period with the option to extend the lease for an additional 10 years, which the SDCC decided to do. The SDCC continues to lease this land and uses a portion of it as a parking lot for its main facility.

California’s armories. According to the CMD, California has approximately 100 active armory sites throughout the state. Armories are the primary place for unit training and are integral to the readiness and responsiveness of National Guard personnel.

The use of armories for emergency operations is common. Armories are routinely used to mobilize and house soldiers when the National Guard responds to wildfires, while also serving as emergency operations centers for other first-responder agencies. Armories are also commonly used as shelters for displaced civilians who have been evacuated from their homes due to fires, floods or other state emergencies. Several armories throughout the state routinely serve as homeless shelters during the winter months.

Under the traditional model, the Federal Government (through the U.S. National Guard Bureau) pays for 75% of an armory’s construction costs and the state pays the remaining 25% and contributes the land. After construction, the state manages the armory and pays for all operational and maintenance repairs. After 25 years, the Federal Government fully transfers all ownership rights to the state.

Prior/Related Legislation

SB 814 (Governmental Organization, 2017) would authorize DGS to dispose of a specified parcel of state property, consisting of approximately 65 acres, known as portion of the Department of Corrections and Rehabilitation’s Preston Youth Correctional Facility in Amador County. (Pending in Assembly Committee on Accountability and Administrative Review)

AB 2247 (Williams, Chapter 382, Statutes of 2016) required the Director of DGS, with the approval of the Adjutant General of the CMD, to grant specified cities and school districts an option to purchase the Santa Barbara Armory, Brawley Armory, Indio Armory, Lynwood Armory, and Ponoma Armory, as defined.

SB 273 (Hueso, Chapter 233, Statutes of 2015) authorized DGS to dispose of two surplus state properties, a Department of Conservation field office in Fresno County and a Department of Forestry conservation camp in Shasta County.

SB 536 (Roth, Chapter 355, Statutes of 2015) authorized DGS, with the approval of the Adjutant General, to sell seven specified state armory properties that are no longer considered needed by the California Military Department.

AB 2174 (Committee on Accountability and Administrative Review, Chapter 337, Statutes of 2014) authorized DGS to dispose of certain state surplus property, subject to specified conditions.

SB 1167 (Cogdill, Chapter 324, Statutes of 2010) authorized DGS to dispose of all or any portion of two specified properties.

SB 1481 (Governmental Organization, Chapter 528, Statutes of 2010) required that the proceeds from the sale of armories must be deposited in the Armory Fund and are not required to be used to retire bond debt resulting from the 2004 Economic Recovery Bond Act.

SB 136 (Huff, Chapter 166, Statutes of 2009) authorized DGS to dispose of all or any portion of three parcels of real property.

AB 600 (Hall, 2009) would have authorized DGS to lease the Compton Armory to the City of Compton at fair market value for a period not to exceed five years, with an option to extend the lease to 25 years. (Vetoed by Governor Schwarzenegger)

SB 901 (Governmental Organization, Chapter 610, Statues of 2001) added various parcels, including approximately five acres of the San Diego Armory, to the list of surplus properties included for sale, exchange, or lease by the Director of DGS, as specified.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT:

San Diego Center for Children (Source)

California Alliance

Lorie Zapf, Councilmember, City of San Diego

San Diego Nonprofit Association

San Diego Regional Chamber

OPPOSITION:

None received

ARGUMENTS IN SUPPORT: The SDCC states that, “we have been hoping to acquire the three acre parcel of land adjacent to our main campus in Kearny Mesa referenced in AB 1057, which we have been leasing for parking from the CMD since 1998. We understand that the CMD supports the direct sale of this parcel to the SDCC at fair market value, and if completed, will allow the SDCC to expand the scope of services we provide.”

The San Diego Regional Chamber of Commerce argues that, “the sale of the referenced portion of the San Diego Armory is critical to the long-term mission of the SDCC, and is being taken up in good faith by all parties and the various stakeholders in our region. These three acres in question can help the SDCC operations grow, thereby serving more families and further securing the safety net that has been so vital to hundreds of thousands of children.”

DUAL REFERRAL: Senate Veterans Affairs Committee

Date of Hearing: April 26, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 1057

Author:(Weber) – As Amended Ver:March 20, 2017

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY: This bill requires the Director of the Department of General Services (DGS), with the approval of the Adjutant General, to provide the option to the San Diego Center for Children (SDCC), a nonprofit organization, to purchase a portion of the Military Department’s San Diego Armory. Specifically, this bill:

1. Allows for the SDCC to purchase a three-acre section of the Armory, located in San Diego County, at the southwest corner of the property.
2. Requires the sale to be in the best interest of the state and at fair market value, as specified.
3. Sets timeframes for the sale, as specified.
4. Provides for the possible sale or lease of the property to an entity other than the SDCC if the option is not pursued.

FISCAL EFFECT:

No negative fiscal impact. The sale will benefit the California Military Department (CMD) and the state by authorizing the sale of a small parcel of land that used to be part of the original San Diego Armory property footprint.  The state will receive fair market value for the property, which will be based on an appraisal approved by DGS. The net proceeds generated by the sale will be deposited into the Armory Fund.

COMMENTS:

1. Purpose. According to the author, "This bill will allow the Children’s Center to finally acquire this land. Selling a majority of the three-plus acre parcel to the Center, which has leased the land for nearly 20 years, is the appropriate course of action and is in the best interest of the State."
2. Background. The SDCC is a nonprofit organization that provides behavioral health and educational services to more than 1,200 youth and families annually. The organization has been leasing approximately three acres of the San Diego Armory's land, which is adjacent to the SDCC's main campus, since 1998. The property is used for parking and to provide a safety buffer between a facility and a canyon that surrounds the campus.

The parcel is in the southwest corner of the San Diego Armory property and is cut off from the other portion of the San Diego Armory property by approximately 2 acres of land that was transferred to the California Department of Corrections in January 1998. A majority of the three acre parcel is on a steep grade and consequently unsuitable for commercial or private use. According to the Military Department, the property is no longer of use to the existing armory.

Existing law permits the sale or lease of armory property. However, the process for selling or transferring armory property is not uniform and each transaction requires approval by the Legislature.

SB 951 (Committee on Governmental Organization), Chapter 610, Statutes of 2001, authorized the sale or transfer of a number of excess armory parcels, including the 3 acres leased by the San Diego Center for Children at the San Diego Armory. However, the following year SB 1607 (Committee on Governmental Organization), Chapter 974, Statutes of 2002, rescinded the previous year’s authorization to sell the San Diego Armory’s excess acreage due to a technical error authorizing the sale or transfer of an incorrect portion of the land.

1. Prior Legislation.

AB 2247 (Williams), Chapter 382, Statutes of 2016, grants specified local agencies the option to purchase specified armory properties within the agencies' jurisdictions.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 5, 2017

ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW

Susan Talamantes Eggman, Chair

ABPCA Bill Id:AB 1057 (

Author:Weber) – As Amended Ver:March 20, 2017

SUBJECT: Armories: sales: San Diego Armory

SUMMARY: Provides the option for the nonprofit San Diego Center for Children (SDCC) to purchase a section of the San Diego Armory (Armory) at fair market value. Specifically, this bill:

1. Allows for the SDCC to purchase a three-acre section of the Armory, located in San Diego County, at the southwest corner of the property.
2. Requires the sale to be in the best interest of the state and at fair market value, as specified.
3. Sets timeframes for the sale, as specified.
4. Provides for the possible sale or lease of the property to an entity other than the SDCC if the option is not pursued.

EXISTING LAW:

1. Authorizes the Director of the Department of General Services (DGS), with the approval of the Adjutant General of the Military Department, to lease and sell real property held for armory purposes, subject to legislative approval.
2. Establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

FISCAL EFFECT: Unknown

COMMENTS: This bill would authorize, with the approval of DGS and the Military Department, the sale of an approximately three-acre portion of the Armory property to the SDCC at fair market value. DGS will conduct and approve an appraisal to determine the fair market value of this property, located at 7401 Mesa College Drive in San Diego.

This bill sets specified timeframes for executing the agreement and completing the sale and title transfer of the property. If an agreement is not reached with SDCC or the timelines are not met, DGS would be authorized to sell this property at fair market value pursuant to requirements in existing law.

While existing law allows for the sale of armory properties, the process for selling them is not uniform and legislative approval is required for each sale.

The SDCC is a nonprofit organization that provides behavioral health and educational services to more than 1,200 youth and families annually. The organization has been leasing the subject property, which is adjacent to the SDCC's main campus, since 1998. The property is used for parking and to provide a safety buffer between a facility and a canyon that surrounds the campus.

According to the Military Department, the subject property, which includes sloping land, is no longer of use to the existing armory.

According to the author, "This bill will allow the Children’s Center to finally acquire this land. Selling a majority of the three-plus acre parcel to the Center, which has leased the land for nearly 20 years, is the appropriate course of action and is in the best interest of the State."

PRIOR LEGISLATION:

AB 2247 (Williams), Chapter 382, Statutes of 2016 grants specified local agencies the option to purchase specified armory properties within the agencies' jurisdictions.

DOUBLE REFERRAL: This bill was heard in the Assembly Veterans Affairs Committee on March 21, 2017, with a vote of 10-0.

REGISTERED SUPPORT / OPPOSITION:

Support

San Diego Center for Children (sponsor)

Board of Trustees, San Diego Center for Children
California Alliance of Child and Family Services
Councilmember Lorie Zapf, Second District, City of San Diego
San Diego Nonprofit Association
San Diego Regional Chamber of Commerce

Opposition

None on file.

Analysis Prepared by: Scott Herbstman / A. & A.R. /

Date of Hearing: March 21, 2017

ASSEMBLY COMMITTEE ON VETERANS AFFAIRS

Jacqui Irwin, Chair

ABPCA Bill Id:AB 1057 (

Author:Weber) – As Introduced Ver:February 16, 2017

SUBJECT: Armories: sales: San Diego Armory

SUMMARY:

1. Authorizes the Director of General Services, with the approval of the Adjutant General, to sell a portion of the Military Department’s San Diego Armory to the San Diego Center for Children, a nonprofit organization for fair market value as determined by appraisal and as otherwise specified.
2. The purchase agreement shall be signed by the organization within 60 days after the Director of General Services decides the organization is to receive the property.
3. Mandates that the sale of the property to the organization pursuant to this section shall be completed, and title transferred, within 60 days of the date the Department of General Services executes the sales agreement, or, if required by law, no later than 60 days after the State Public Works Board has authorized the sale.
4. Specifies that the sale to the organization is not completed within the timeframe specified, then the Director of General Services, with the approval of the Adjutant General, may sell the property pursuant to Section 435 of the Military and Veterans Code.
5. Reserves from the transfer certain mineral rights as specified.
6. Makes legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

EXISTING LAW:

1. Authorizes the Director of General Services, with the approval of the Adjutant General, to lease and sell real property held for armory purposes, subject to legislative approval.
2. Establishes the Armory Fund and requires that all proceeds from the sale or lease of armories be deposited into the fund, for use, upon appropriation by the Legislature, for specified purposes related to armories.

FISCAL EFFECT: Unknown at this time.

COMMENTS:

This bill would authorize the sale of approximately 3 acres of the San Diego Armory property to the San Diego Center for Children, which has been leasing this portion of the San Diego Armory’s land since November 1998. Existing law permits the sale or lease of armory property. The process for selling or transferring armory property is not uniform and each transaction requires approval by the Legislature.

In 2001, SB 951 (Committee on Governmental Organization) authorized the sale or transfer of a number of excess armory parcels, including the 3 acres leased by the San Diego Center for Children at the San Diego Armory. However, the following year SB 1607 rescinded the previous year’s authorization to sell the San Diego Armory’s excess acreage due to a technical error authorizing the sale or transfer of an incorrect portion of the land.

Currently, the parcel of land leased by the San Diego Center for Children is in the southwest corner of the San Diego Armory property and is cut off from the other portion of the San Diego Armory property by approximately 2 acres of land that was transferred to the California Department of Corrections in January 1998. A majority of the 3 acre parcel is on a steep grade and consequently unsuitable for commercial or private use.

According to the author:

In 1955, the construction of the San Diego armory was completed, and the City of San Diego gave the State 17.74 acres to construct a National Guard armory.

In January 1998, approximately two acres of this land was transferred to the California Department of Corrections, via an Agreement for the Transfer of Control and Possession of State Owned Real Property, for its use in regard to a women’s facility. In November 1998, the remaining three-plus acres located in the southwest corner of the San Diego Armory property was leased to the San Diego Center for Children for a ten-year period with the option to extend the lease for an additional 10 years, which the Center elected to do. The Center continues to lease this land and uses a portion of it as a parking lot for its main facility.

In 2001, Senate Bill 951 “State property” was chaptered into law and, among other things, authorized approximately five acres of vacant land adjacent to the San Diego Armory, located at 7401 Mesa College Drive in San Diego, to be sold or transferred. Unfortunately, the section of SB 951 that addressed the vacant San Diego Armory land appeared to be a legislative error, as the two acres (of the five acres deemed excess) had already been transferred to the Department of Corrections in 1998.

This bill will allow the Children’s Center to finally acquire this land. Selling a majority of the three-plus acre parcel to the Center, which has leased the land for nearly 20 years, is the appropriate course of action and is in the best interest of the State.

This Committee is carrying a committee bill, AB 1709, to commence a more uniform process for the sale of armories than currently is in place, however that process would not take effect unless and until the bill passes, is signed by the Governor and takes effect, etc. This bill is a direct sale to the Children’s Center and the process as such is not what would be contemplated under the Committee legislation.

Nevertheless, the parties to the proposed transaction have brought this matter before the Legislature for a decision now rather than a year from now and this transaction requires the state receive FMV payment for the property. DGS and the CMD are in support. Moreover, the positive and beneficial use of the property for nearly 20 years by the Children’s Center and the unique circumstances of this parcel in terms of its physical properties and relationship to adjacent parcels support the proposed transfer. Finally, no party has come forward to oppose this bill.

REGISTERED SUPPORT / OPPOSITION:

Support

San Diego Center for Children (sponsor)

California Alliance

San Diego Non-Profit Association

San Diego Regional Chamber of Commerce

Opposition

None on File

Analysis Prepared by: John Spangler and Jessica Jin / V.A. / 916-319-3550