Section § 185040

Explanation

This law gives the authority the power to sell or exchange state-owned real estate initially acquired for high-speed rail projects if it's no longer needed. They must notify previous owners by mail and wait 30 days before selling. Sales can be made to neighboring property owners under specific conditions, like preventing improper land use or granting necessary access to highways. These sales can involve contracts with terms up to 10 years and require a 30% downpayment. Authorities can also directly sell to municipalities for public use. Former owners and long-term tenants have a chance to purchase if they've met rent obligations. The state can exchange property as long as the trades are even in value or with only minor differences. Most sales should be through bidding or auctions to get the best price, unless exceptions apply. Revenue from sales goes into the High-Speed Rail Property Fund for future use.

(a)CA Public Utilities Code § 185040(a) If the authority determines that real property or an interest therein, previously or hereafter acquired by the state for high-speed rail purposes, is no longer necessary for those purposes, the authority may sell or exchange the real property or interest therein at fair market value in the manner set forth in this section.
(b)CA Public Utilities Code § 185040(b) Before selling the real property or interest therein in any manner authorized under this section, the authority shall send notification by certified mail to the last known owner of the real property or interest therein at his or her last known address, advising him or her that the real property or interest therein will be offered for sale. The authority shall not sell the real property or interest therein until at least 30 days after the notification has been sent.
(c)CA Public Utilities Code § 185040(c) The authority may sell the property to an adjoining landowner if it makes either of the following findings:
(1)Copy CA Public Utilities Code § 185040(c)(1)
(A)Copy CA Public Utilities Code § 185040(c)(1)(A) That the property is of a size or shape that it is below the average normal standard size and shape of other privately owned properties in the immediate neighborhood, and that if the property were sold to other than the adjoining owner, it would give rise to a land use development thereof that would be below and not consistent with the normal land use of other properties in that neighborhood, (B) that the sale of the property to a party other than the adjoining owner may cause an undue or unfair hardship to the adjoining owner in the normal land use development or operation of his or her property, (C) that the property considered as part of the adjoining property would have a higher and better use than under separate ownership, and (D) that the fair market value of the property considered as part of the adjoining property would be higher than under separate ownership.
(2)Copy CA Public Utilities Code § 185040(c)(2)
(A)Copy CA Public Utilities Code § 185040(c)(2)(A) That the sale of the excess parcel to other than the adjoining owner would deprive the adjoining owner of an existing vested right of access to a public highway and thereby create a possible cause of action against the authority or the state.
(B)CA Public Utilities Code § 185040(c)(2)(A)(B) A sale to an adjoining landowner pursuant to this subdivision may be by contract to sell or trust deed. The payment period in a contract of sale or sale by trust deed shall not extend longer than 10 years from the time the contract of sale or trust deed is executed, and a transaction involving a contract of sale or sale by trust deed to private parties shall require a downpayment of at least 30 percent of the purchase price.
(d)CA Public Utilities Code § 185040(d) The authority may sell the property to municipalities or other local agencies at their request, without calling for competitive bids, at a price representing the fair market value thereof, and upon a determination that the intended use is for a public purpose.
(e)CA Public Utilities Code § 185040(e) If it is improved property, the property may be sold to a former owner who has remained in occupancy or to a residential tenant of a tenure of five years or more with all rent obligations current or paid in full.
(f)CA Public Utilities Code § 185040(f) Any real property or interest therein may in like manner be exchanged, either as whole or part consideration, for any other real property or interest therein as needed for high-speed rail purposes. This provision does not authorize exchanges where the value of the state-owned property exceeds the value of the property the authority seeks to acquire, unless the excess value is incidental and subdivision of the state-owned property, in order to produce a smaller parcel of equal value to the value of the property the authority seeks to acquire, would reduce the total value of the state-owned property.
(g)CA Public Utilities Code § 185040(g) Except as otherwise provided in this section, property shall be sold either by receipt of competitive sealed bids or at public auction, whichever method is determined by the authority to be more likely to achieve the higher sales price.
(h)CA Public Utilities Code § 185040(h) Any payments received under this section for the sale of real property no longer necessary for high-speed rail purposes shall be deposited in the High-Speed Rail Property Fund created pursuant to Section 185045 and shall be available to the authority upon appropriation as provided in that section.

Section § 185041

Explanation

This law allows the authority to sell or lease extra land, called right-of-way parcels, to cities or local government agencies for public use. In return, instead of just money, the authority can accept significant benefits, like the city taking care of maintenance or landscaping, which the state would usually have to pay for.

The authority may sell or lease excess right-of-way parcels to municipalities or other local agencies for public purposes, and may accept as all or part of the consideration for the sale or lease any substantial benefits the state will derive from the municipality or other local agency’s undertaking maintenance or landscaping costs that would otherwise be the obligation of the state.

Section § 185042

Explanation

This law allows the authority to lease unused railway land to cities or local agencies for public projects like parks, and can help pay for these projects. In return, the state can consider the savings on maintenance or landscaping as payment. However, if the land is needed later for high-speed rail, the lease will end. The authority can decide which sections of rail land are nonoperating and available for lease.

The authority may lease nonoperating right-of-way areas to municipalities or other local agencies for public purposes, and may contribute toward the cost of developing local parks and other recreational facilities on those areas. The authority may accept as all or part of the consideration for the lease or for the state contribution any substantial benefits the state will derive from the municipality or other local agency’s undertaking maintenance or landscaping costs that would otherwise be the obligation of the state. Those leases shall contain a provision that whenever the leased land is needed for high-speed rail operating purposes the lease shall terminate. The authority is authorized to classify portions of high-speed rail rights-of-way as nonoperating.

Section § 185044

Explanation

This law allows the authority to lease areas above or below, and portions of property not used by, high-speed railways to public or private entities, as long as the lease does not exceed 99 years. The authority must ensure that these leases are safe and do not conflict with local zoning laws. Private leases must go through competitive bidding. Any revenue from these leases is placed into a fund for high-speed rail property improvements.

The authority may lease to public agencies or private entities or individuals for any term not to exceed 99 years the use of areas above or below operating rights-of-way and portions of property not currently being used as operating rights-of-way, subject to any reservations, restrictions, and conditions that it deems necessary to ensure adequate protection of the safety and adequacy of high-speed rail facilities and of abutting or adjacent land uses. Prior to entering into any lease, the authority shall determine that the proposed use is not in conflict with the zoning regulations of the local government concerned. The leases shall be made in accordance with procedures to be prescribed by the authority, except that, in the cases of leases with private entities or individuals, the leases shall be made only after competitive bidding. The possibilities of entering into the leases, and the consequent benefits to be derived therefrom, may be considered by the authority in designing and constructing the high-speed rail system. Revenues from the leases shall be deposited in the High-Speed Rail Property Fund created pursuant to Section 185045.

Section § 185045

Explanation

This law establishes the High-Speed Rail Property Fund in California's State Treasury. It collects money from the sale, lease, or other use of real estate owned by the High-Speed Rail Authority. This money can be used, once approved by the Legislature, for developing and maintaining the high-speed rail system in line with the rules for each funding source.

The High-Speed Rail Property Fund is hereby created in the State Treasury for the deposit of revenue received from the sale, lease, or grant of any interest in or use of real property owned or managed by the High-Speed Rail Authority. Revenues in the fund shall be available to the authority, upon appropriation by the Legislature, for use in the development, improvement, and maintenance of the high-speed rail system, consistent with appropriate uses for each funding source.