SENATE COMMITTEE ON TRANSPORTATION

Senator Jim Beall, Chair

2019 - 2020 Regular

Bill No: SB 447 Hearing Date: 4/23/2019

SUBJECT: Department of Transportation: transfer of property: City of Orange.

DIGEST: This bill requires the Department of Transportation (Caltrans) to transfer two parcels of leased property to the City of Orange upon request by the City, as specified.

ANALYSIS:

Existing law:

1. Provides Caltrans with full possession and control of all state highways and all property and rights on property acquired for state highway purposes.
2. Provides for the acquisition, transfer, and use of property owned by Caltrans, as specified.
3. Requires Caltrans to offer to sell or exchange excess real property within one year from the date that the property is determined excess. Further requires excess property that consists of lands of notable environmental value, as defined, to be first offered for sale or exchange to public agencies, as specified.

This bill:

1. Provides findings and declarations that the property transfer specified in this bill serves a public purpose.
2. Requires Caltrans to transfer over two parcels of property that are currently leased to the City of Orange for park purposes upon request by the City.
3. Requires the City of Orange to assume ownership of the property upon transfer.
4. Requires Caltrans to provide the City of Orange with the deed to both parcels and limiting the use of the parcels to only recreation and open-space purposes.
5. Prohibits the City of Orange from transferring or assigning the property to any other entity.
6. Requires the property deeds of the transferred property to be filed with the County of Orange Recorder’s office.

COMMENTS:

1. Author statement. According to the author, “SB 447 will keep popular parks available to the community of Orange County. We are working with the City of Orange to provide them the means to retain Handy and Hart Parks, both central to the identity of the city. There is no telling what may become of these parks if the city cannot guarantee their future.”
2. Parks. According to the City of Orange’s website, Hart Park was acquired in 1933 and consists of 41.76 acres in total. The park encompasses a number of softball fields, community pool, and “acres of passive and open space.” The City is currently in a lease agreement with Caltrans for 9.1 acres of that parkland which expires in 2023.

Handy Park was acquired in 1976 and consists of 7.31 acres. Handy Park consists of a soccer field, volleyball courts, and a number of picnic tables. The City is currently in a lease agreement with Caltrans for 5.69 acres of that parkland which expires in 2024. Caltrans has notified the City that the department will not be renewing these two lease agreements.

1. Existing process. Existing law presently allows for Caltrans to sell or exchange property it no longer deems as necessary for state highway purposes and/or is determined to be excess. Furthermore, existing law requires Caltrans to sell or exchange real property deemed as excess within one year from the date it is determined to be excess and right of first refusal is granted to cities and counties when parkland is involved. Currently, the leases between Caltrans and the City of Orange for parcels at Hart and Handy Park expire in 2023 and 2024 respectively. Thus, it is unclear why this bill is necessary if a process already exists for Caltrans to sell or exchange the abovementioned parcels, leases do not expire for another four to five years, and the City will have the right of first refusal.

Furthermore, the bill, in its current form, requires Caltrans to transfer the property upon request by the City of Orange. It is unclear why, under this measure, these particular parcels should be exempted from the existing selling or exchange process. The state fiscal impacts associated with a proposed “transfer” are currently unknown however could be significant.

Lastly, it is unclear as to why the City of Orange should be exempted from the existing contractual process that occurs when Caltrans sells or exchanges real property. The bill, in its current form, authorizes the City of Orange to simply “request” the property; which in turn would require Caltrans to transfer over the two leased parcels. It is unclear in what form the “request” is to be made by the City of Orange to Caltrans and is also silent on when the request is to be made (i.e. before or upon the leases expiring.) The author may wish to provide the committee with details as to why these parcels should be exempted from the existing process of selling or exchanging Caltrans property and why the City of Orange should be exempted from providing the state any compensation for these leased parcels of property.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

April 17, 2019.)

SUPPORT:

City of Orange (sponsor)

North Sunrise Little League

Orange Junior Soccer Club

Orange Youth Football

OPPOSITION:

None received.

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