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(Jerry) Brown drops controversial plan to sell state buildings [View All]

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Newsjock Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Feb-09-11 12:55 PM
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(Jerry) Brown drops controversial plan to sell state buildings
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Source: San Francisco Chronicle

California will not go through with its controversial plan to sell state buildings then lease them back to help plug the budget deficit, Gov. Jerry Brown announced this morning.

The proposed sale of the California Supreme Court headquarters in San Francisco and ten other buildings would have raised $1.2 billion for the state. But Brown said the plan was short-sighted and would have cost taxpayers billions lease back those buildings over a 35 year period.

... The deal was arranged by former Gov. Arnold Schwarzenegger and had been approved by the Legislature, but got caught up in the courts after three former state Building Authority members sued the state to block the sale. They claimed the state would illegally waste taxpayer dollars.

... The sale agreement includes a $50 million penalty against the state if it backs out of the deal. (Joseph Cotchett, lawyer for two of the plaintiffs) said the buyers, an investment group called California First, might go to court to try to force the state to proceed with the sale. But he said he and his clients would argue that the contract "was an unconstitutional act and therefore was void, and there should be no penalty."

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/0...
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