State Thinks It Can Sell Buildings for $1.2B

Thursday, Oct 7, 2010  |  Updated 3:25 PM PDT
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State Thinks It Can Sell Buildings for $1.2B

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California lawmakers and Gov. Arnold Schwarzenegger are betting the state can generate $1.2 billion from the sale of state office buildings to help fill the $19 billion budget deficit.

That's despite earlier warnings that the deal doesn't pencil out for California taxpayers over the long run.

Lawmakers and the Republican governor were moving ahead Thursday with the plan to sell and lease back 24 state office buildings even though the administration has not revealed the winning bid or the sale price.

At least two reports have said taxpayers will pay more over the long run than the state will net.

While the legislature will have 30 days to review the sale, lawmakers will not get the final say because proposed oversight legislation was killed in committee earlier this year.

The state's real estate dealings don't appear to end with office buildings, either. The Del Mar Fairgrounds may have a new owner soon. The city of Del Mar has reportedly struck a deal with the state to make the multi-million dollar purchase. Wednesday night, behind closed doors, a preliminary deal was reached to sell part of the property for $120 million, according to the San Diego Union-Tribune. That would buy about 400 acres.
 

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