Cal Expo for sale??

Bricklayer

Bricklayer

Don't Make Me Use The Bat
#3
#3
This strays into politics, but Calfiornia has got to get its finances straightened out and quick. Selling off property is a desperation move -- one time short term fix, and $1 billion is a drop in the bucket for all that debt.

But now, as far as the Kings, wasn't part of the arena proposal precidely to sell or lease some of Cal Expo off to a private developer to build that project on?
 
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rainmaker

rainmaker

Hall of Famer
#4
#4
Out of curiousity, who would he sell San Quentin to? And where would all the inmates go? Nothing to do with bball but I thought I would ask.
 
Widowmaker2k

Widowmaker2k

Bench
#5
#5
rainmaker said:
Out of curiousity, who would he sell San Quentin to? And where would all the inmates go? Nothing to do with bball but I thought I would ask.
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Interesting. San Quentin is actually one of the most valuable pieces of government owned land in the country. I'm sure that, even in this market, buyers would line up to purchase that land. It does however, as you stated, raise the question of "Where do those inmates go?" and "Where do we relocate Death Row?"

I'm most concerned with the Cow Palace, as that's one of the most historical pieces of land in the state. And Brick is right...the state absolutely has to figure out the budget ASAP. Our taxes are already the highest in the nation, so raising them doesn't seem like the best answer. Truthfully, we need to cut programs. The hard part is deciding which programs to cut (and, while political, I tried to make this post as least controversial as possible).

I'm not too worried about the Kings. They'd be exceptionally hard to move in this market anyway. In fact, this recession is probably the best possible time to be terrible. When economic times are good, and many cities are looking to get in on the NBA action, is when terrible teams should worry.
 
Warhawk

Warhawk

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#6
#6
There has been talk of building a new facility to replace SQ over the years, I believe. And you are right - that property could be worth some $$$ given the location......
 
kennadog

kennadog

Dog On It!
#7
#7
The idea for the Cal Expo deal was to lease the land I believe. The real key was that The Cal Expo Authority was created by the legislature not long ago to give it the ability to sell bonds to raise upfront financing. Without that, the deal is not likely to work. An arena will need some public financing where ever it goes.

More than the Cow Palace, I think it will be a shame if the LA Coliseum is sold. Talk about historic with two Olympics games held there. Its the only stadium in the world to have had two. However, that is jointly owed by the State with the City and County of LA.

It is desperation move and won't really make much difference, besides the fact that it would take years to sell any of the properties. I won't get too much into politics, but the mess California is in has enough blame to be spread around, including the voters themselves.
 
VF21

VF21

Super Moderator Emeritus
SME
#8
#8
I don't want to stray in a political discourse but Arnie is using the multiple shotgun approach to budget right now, hoping something will hit.

If he wants to sell property, he could do much better by selling off some of the unused office space, etc. The fact this is a "proposal" means he's desperate, which we all know. And California still isn't addressing the main problem -we're spending way too much freaking money!!!
 
B

BMiller52

All-Star
#9
#9
VF21 said:
I don't want to stray in a political discourse but Arnie is using the multiple shotgun approach to budget right now, hoping something will hit.

If he wants to sell property, he could do much better by selling off some of the unused office space, etc. The fact this is a "proposal" means he's desperate, which we all know. And California still isn't addressing the main problem -we're spending way too much freaking money!!!
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Yup. But instead of cutting back on useless programs and stuff like that Arnold is desperately trying to raise funds however he can.

I thought Arnold was going to try to help the kings stay in Sac? Right now he seems more like a snake than a potential friend. Guess he's a laker fan.
 
Bricklayer

Bricklayer

Don't Make Me Use The Bat
#10
#10
Well you guys still have the Proposition system in place -- that has got to create real havoc in trying to run a government with random laws flying in from special interests and political activists all the time telling you you can't touch this program, you can't raise this tax, you can't lay off this group of employess etc. etc. Direct democracy = chaos, but maybe somebody should take advantage of the mess and start up a "save Cal Expo/the state' historic buildings" Proposition.
 
Warhawk

Warhawk

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#11
#11
Bricklayer said:
Well you guys still have the Proposition system in place -- that has got to create real havoc in trying to run a government with random laws flying in from special interests and political activists all the time telling you you can't touch this program, you can't raise this tax, you can't lay off this group of employess etc. etc. Direct democracy = chaos, but maybe somebody should take advantage of the mess and start up a "save Cal Expo/the state' historic buildings" Proposition.
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That is the biggest problem right now - it is too easy to get things on the ballot, especially items that lock in spending for certain programs with no way to pay for them.
 
Warhawk

Warhawk

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#12
#12
Proposed Cal Expo sale catches fair, NBA officials by surprise

http://www.sacbee.com/topstories/story/1861569.html

Cal Expo and National Basketball Association officials said today they are surprised by Gov. Arnold Schwarzenegger's proposal to sell the Expo grounds, and say they don't know what affect it would have on their plans to redevelop the site with a Sacramento Kings basketball arena as a centerpiece.
Faced with a state budget crisis, the governor is expected today to propose selling several state-owned fairgrounds to raise money, including the 300-acre Sacramento site for the state fair.
Cal Expo General Manager Norb Bartosik said he and other fair executives will plead their case for keeping fairgrounds under state control.
"We understand everybody's concerns about the budget," Bartosik said this morning. "But once the fairs have an opportunity to make their position clear, I think they will see the fairgrounds are more of an asset than a liability."
NBA representative John Moag said he intends to contact the governor's office to learn what the sale proposal would mean for the arena plan.
"I have absolutely zero clue what any of this means," Moag said. "We have to see how this plays out."
Moag said the Expo project will continue forward in the meantime. "It is incumbent on us to keep moving forward."
The Expo plan, still in early stages, involves construction of a new arena and new fairgrounds, to be financed by a private developer. That developer would then lease a large chunk of the remaining Expo land to build, over time, a community of houses, condos, offices and stores
 
VF21

VF21

Super Moderator Emeritus
SME
#13
#13
I'm not sure but I don't think the Governor alone has the power to do any of the things he's been talking about and since his approval rating has plummeted to about 30% I doubt if he's going to get much support from anyone anywhere...
 
Trueblood

Trueblood

Bench
#14
#14
The Maloofs, the league and Cal Expo are looking for a private developer to redevelop the fair grounds. Is it not financially feasible for said developer to buy the grounds now that they are for sale? If it is feasible, couldn't this possibly be GOOD news for Kings fans?

I know that I'm probably missing the obvious but land issues aren't my strong point. Enlighten me.
 
kennadog

kennadog

Dog On It!
#15
#15
Trueblood said:
The Maloofs, the league and Cal Expo are looking for a private developer to redevelop the fair grounds. Is it not financially feasible for said developer to buy the grounds now that they are for sale? If it is feasible, couldn't this possibly be GOOD news for Kings fans?

I know that I'm probably missing the obvious but land issues aren't my strong point. Enlighten me.
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1) No, it would be bad for a deal. The whole point of the Cal Expo location is that the Cal Expo Authority has the authority to sell bonds to raise upfront capital. That is more favorable financing than any private, commercial lender can provide. That type of fonancong possiblity goes away, if the Cal Expo Authority (a government entity) goes away.

2) It would take a long time to sell that property ot likely any of the properties. The governor can just sell then propoerties all by himeself. Their are specific procedures and approvals to follow to sell off governement assets and the legislature approving it is one.

3) There is little budget benefit to sell these properties. In the case of Cal Expo, it is required to be self-supporting. No State budget funds are provided to Cal Expo. The benefit is a one time injection of some funds to the State. And as much as they might raise, the sale of these properties is a drop in the bucket of the real budget problems.

4) Brick is right. The voters bear as much responsibility for the mess as the politicos. Propositions are written by groups with specific axes to grind and their own agenda/self-interest. They don't care how it affects anything or anybody else.
 
Trueblood

Trueblood

Bench
#16
#16
kennadog said:
1) No, it would be bad for a deal. The whole point of the Cal Expo location is that the Cal Expo Authority has the authority to sell bonds to raise upfront capital. That is more favorable financing than any private, commercial lender can provide. That type of fonancong possiblity goes away, if the Cal Expo Authority (a government entity) goes away.

2) It would take a long time to sell that property ot likely any of the properties. The governor can just sell then propoerties all by himeself. Their are specific procedures and approvals to follow to sell off governement assets and the legislature approving it is one.

3) There is little budget benefit to sell these properties. In the case of Cal Expo, it is required to be self-supporting. No State budget funds are provided to Cal Expo. The benefit is a one time injection of some funds to the State. And as much as they might raise, the sale of these properties is a drop in the bucket of the real budget problems.

4) Brick is right. The voters bear as much responsibility for the mess as the politicos. Propositions are written by groups with specific axes to grind and their own agenda/self-interest. They don't care how it affects anything or anybody else.
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Thanks for the info. Like I said, I'm pretty much in the dark. However, John Moag seems pretty confused as well as he was quoted as saying he has no idea what any of it means. That scares me. If he finds out what you outlined to me and Arnie is serious, KJ is gonna need to step it up in a big way.
 
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