State highways: property leases.
The new provisions enable leases at a nominal fee of $1 per month for emergency shelters or feeding programs, which is significantly lower than market rates. Furthermore, for recreational or open-space purposes, the bill stipulates leasing for up to 10 parcels at 30% of the fair market value. This legislative change could lead to better utilization of underused state property, offering local governments opportunities to address pressing community concerns and enhance public amenities in economically challenged areas.
Assembly Bill 246, introduced by Assembly Members Mathis, Bonta, and Gipson on January 22, 2019, aims to amend the Streets and Highways Code by adding Section 104.23. This legislation focuses on the leasing of property under or adjacent to state highways located in disadvantaged communities. The bill allows the Department of Transportation to lease airspace under freeways or real property acquired for highway purposes, enabling local governments to develop emergency shelters or recreational spaces response to community needs at minimal costs.
While the bill is primarily seen as a means to support underprivileged communities, some stakeholders express concerns regarding maintenance and funding oversight. The requirements for lessees to cover all associated infrastructure and maintenance costs may pose financial burdens on local entities. Additionally, critics question if the provision for generating revenue offsetting maintenance costs could create complexities for local governments, particularly in accountability and transparency regarding public resources.