Investigation reveals plan to patch budget shortfall by selling California buildings includes hidden deal-sweeteners that gouge taxpayers
But, according to the report:
The state would then rent space in the buildings from the new owners for 20 years. Over that period, it would pay $5.2 billion in rent, according to documents prepared for potential buyers.
The terms of the proposed leases also say the state would have to pay a monthly fee for nearly 3,500 parking spaces it now controls, adding $138 million to the state's costs over the next two decades. California taxpayers would even cover increases in property tax assessments once the buildings are sold.
The report examined the San Francisco end of the deal, coming up with details that suggest Casper was right all along:
Other properties up for sale include the San Francisco Civic Center, which houses the state Supreme Court, the Public Utilities Commission building in San Francisco and several buildings in downtown Sacramento, including those that house the attorney general's office and state Department of Education.
Estimates for the first year after the proposed sales are completed illustrate the cost to the state.
The Schwarzenegger administration projected the state will spend $192 million in bond payments, maintenance and repairs for its buildings in the fiscal year that begins in July. By comparison, CB Richard Ellis estimated the state would pay $238 million in rent and utilities alone during its first year as a renter -- a $46 million increase in costs to state taxpayers.