Time to gussy up those offices, state justices. You might be getting a new landlord.
As part of his effort to drum up some much-needed budget cash, Gov. Arnold Schwarzenegger is proposing to sell a number of state-owned buildings (.pdf) and then lease them back from private owners — hopefully at a reasonable price.
The Supreme Court’s crash pad, and other properties Schwarzenegger is eying for sale, after the jump.
The Earl Warren / Hiram Johnson San Francisco Civic Center Complex. With 1.13 million square feet, the state’s largest office building is home to the state Supreme Court, the First District Court of Appeal, the Judicial Council, the Administrative Office of the Courts and the Commission on Judicial Performance. The Department of General Services estimates the state could snag $357 million for the building. But California would only net $69 million from the deal because so much of the original bond financing is still outstanding, DGS says.
The Attorney General building in Sacramento. This 17-story gem is chock full of parking on the ground floors — and lots of deputy attorneys general above — and can be yours for a cool $132 million, according to the DGS.
The Ronald Reagan building in Los Angeles. The Second District Court of Appeal is housed here, and the Supreme Court sets up shop here four times a year. Estimated price tag: $181.9 million.
Estimated proceeds from the sale of these buildings and eight others around the state is $662 million, not quite enough to put a dent in the state’s $22 billion deficit, but as Schwarzenegger told reporters yesterday, “Every dollar helps.”
Of course, the state still has to answer a lot of questions before putting out the “for sale” signs. Like, is there really a market for giant office buildings in today’s economy? And what happens if the buyer would rather house, say, a Super Wal-Mart, on Golden Gate Avenue instead of the Supreme Court?
“We acknowledge and fully understand there are hurdles to overcome,” said DGS spokeswoman Amanda Fulkerson.
— Cheryl Miller
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