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STAFF ANALYSIS ITEM – 10

Department of General Services

Department of Health Services

Animal Laboratory, 6250 Lambie Road


Action requested

The requested action will authorize the sale of state surplus property consistent with the staff analysis.

Scope Description


This project is within scope. Chapter 770, Statutes of 2000, authorizes the Director of General Services (DGS), with the approval of the State Public Works Board, to sell, exchange, lease, or transfer, for current market value or for any lesser consideration authorized by law and upon those terms and conditions and subject to those reservations and exceptions as the Director of General Services determines are in the best interest of the state, all or any part of the following real property: Real property known as the Lambie Road Animal Laboratory, consisting of approximately 49 acres of irregularly shaped property, that is a portion of assessor’s Parcel No. 048-010-210, located at 6250 Lambie Road in Solano County. The Department of Health Services has determined that the property is no longer needed for its program purposes, and declared it surplus to the agency’s needs.

Funding and Cost Verification

The costs associated with the sale of the state surplus property are administrative staff costs of $12,000 and environmental review costs of $30,000 which will be paid from the gross proceeds of the sale. No future costs have been identified with the approval of this sale.

Project Schedule

The project schedule is as follows:

The anticipated close of escrow is July 2005.



Other

  • Pursuant to Government Code Section 11011.1 the property was offered to state and local governmental agencies and the Department of Forestry and Fire Protection expressed an interest, but ultimately declined acquiring the property at fair market value when Forestry determined that it would not be essential to the operation of their conservation camp.

  • The approved market value of the property is $380,000 dated September 2004. Factors reducing the value of the property include voter approved (1995 Proposition A) county restrictions on the use of the land, lack of a potable water source, and rural location adjacent to an inmate conservation camp. Property use would be limited to cattle and sheep rangeland.

  • The property was offered at a seal bidding auction on February 23, 2005. There were multiple offers and the bid was awarded to the highest net offer to the state of $651,000.

  • Pursuant to Article III, Section 9 of the California Constitution, the net proceeds of any monies received from the disposition are to be used to pay principal and interest on bonds issued pursuant to the Economic Recovery Bond Act.

  • The sale is subject to 100 percent mineral rights reservation owned of the United States Federal government. These rights were retained through a reservation in the Quit Claim deed when the property was conveyed to the State of California in June of 1964.


Staff Recommendation: Authorize the sale of state surplus property.


CONSENT ITEM



CONSENT ITEM – 11
DEPARTMENT OF GENERAL SERVICES (1760)

EMPLOYMENT DEVELOPMENT DEPARTMENT (7100)

OFFICE BUILDING, 660 TULE STREET, MENDOTA, FRESNO COUNTY

Surplus Parcel Number SSL 488



Authority: Chapter 391/94

a. Authorize the sale of state surplus property

APPROVED:

3/0


CONSENT ITEM



STAFF ANALYSIS ITEM – 11

Department of General Services

Employment Development Department

Employment Development Department, 660 Tule Street, Mendota


Action requested

The requested action will authorize the sale of state surplus property consistent with the staff analysis.

Scope Description

This project is within scope. Pursuant to Government Code Section 11011.1 and as authorized by Chapter 391 Statutes of 1994, the Director of the Department of General Services (DGS) with the approval of the State Public Works Board may sell or lease for current market value only, all or part of approximately 0.43 acre, with a 3,600 square foot modular structure used as office space by the Employment Development Department at 660 Tule Street,

Mendota, Fresno County. The Employment Development Department has determined that the property is no longer needed for its program purposes, and declared it surplus to the agency’s needs in 1994.


Funding and Cost Verification

The costs associated with the sale of the state surplus property are administrative staff costs of $61,200 which will be paid from the gross proceeds of this sale. No future costs have been identified with the approval of this sale.
Project Schedule

The project schedule is as follows:
The anticipated close of escrow is July 2005.
Other

  • Pursuant to Government Code Section 11011.1 the property was offered to state and local governmental agencies with no expressed interest.

  • The approved appraised value of the property is $179,000 with the U.S. Department of Labor maintaining a 77 percent equity interest position in the property.

  • The property was purchased by a private party at the appraised value of $179,000.

  • Pursuant to Unemployment Insurance Code Section 1591, the net proceeds of any monies received from the disposition are to be deposited in the Employment Development Department Building Fund, because this property was amortized with federal funds paid out of the Unemployment Fund.

  • The state shall retain all mineral deposits below a depth of 500 feet and without surface rights of entry as required by Public Resources Code Section 6407.

  • DGS indicates that the administration cost are much higher than usual because there had been several prior unsuccessful attempts to sale this property since it was declared surplus in 1994. Each attempt costs several thousand dollars in advertising costs and staff time.


Staff Recommendation: Authorize the sale of state surplus property.





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