Sale Of State Properties Goes To Trial
A lawsuit that argues California should be required to sell 11 state properties is going to trial.
As a way to reduce the deficit, former Governor Arnold Schwarzengger pushed for the sale of the properties, for $2.3 billion, with plans for the state to lease them back. However, Governor Jerry Brown stopped the plan, when an independent analyst said it could actually end up costing the state around $1.5 billion over the next several years. Brown referred to it as a “giant loan” and kicking the can down the road.
The Associated Press reports that the state says it cancelled the sale, after the group of investors purchasing the properties failed to make a payment. The consortium argues that it is not the case, and a binding agreement was in place, and the properties should be sold.
A trial in San Francisco Superior Court starts today, and it is expected to last around seven days. Notable properties involved include the Attorney General Building in Sacramento and the Ronald Reagan State Building in Los Angeles.