California Gov. Jerry Brown on Wednesday said that he is dropping a plan to sell at least 11 state government buildings to private investors.
Under a proposal by former Gov. Arnold Schwarzenegger, the state had been in negotiations to sell the properties, including the Junipero Serra State Building and Ronald Reagan State Building in downtown Los Angeles, which would have netted an estimated $1.2 billion to help balance the state budget. The state would continue using the buildings under long-term leases with the new owners.
The nonpartisan Legislative Analyst’s Office determined that the deal would end up costing the state $5.2 billion in rent over 20 years, perhaps saddling taxpayers with costs beyond whatever the state would net from the sale. “The sale of buildings didn’t really make much sense,” Brown said. “It amounted to a gigantic loan.”
• CLICK HERE to read the Sacramento Bee story.
• CLICK HERE to read the Associated Press story via the San Jose Mercury News.
