Governor wants list of properties to put on market.

Scores of parcels of state-owned land and buildings in L.A. County might soon he sold or leased under a proposal by Gov. Arnold Schwarzenegger.

Among the high-profile local properties that could be sold, leased or have their leases renegotiated: the land underneath the L.A. Memorial Coliseum, an old state office building in downtown L.A. and 41 acres at the sprawling Lanterman Developmental Center in Pomona.

Earlier this month, Schwarzenegger issued an executive order to all state agencies to compile lists of "high value" urban properties. The California Performance Review team--formed by Schwarzenegger after he took office with the goal of identifying savings in state government--is spearheading the effort and is to report its findings to the governor by June 30.

"California has built up a very massive portfolio of properties, including more than 2.5 million acres of land, 194 million square feet of structural space and some 22,000 buildings. There clearly are assets that many people look at and wonder why they are in that portfolio," said George Passantino, executive director of the California Performance Review unit. Passantino is also director of government services for the Reason Foundation, the Libertarian think tank that has been advising Schwarzenegger.

Passantino said that the sale of surplus assets could generate "hundreds of millions of dollars" in revenues for the state as it struggles to close a $15 billion shortfall. Other proponents, including state Sen. Jim Battin, R-La Quinta, estimate the revenues at well over $1 billion.

Battin is also carrying legislation that attempts to streamline the process of identifying and disposing of surplus state properties. "Even if we find a handful of properties being underutilized, then it will have been worth our while," Battin said.

Many agencies may be loath to part with some of their holdings--in part because of staff reassignments or existing expansion plans. And even if there is consensus on properties to be sold or leased, environmental and land-use regulations could easily turn the process into a nightmare.

Local state properties

Of more immediate concern is the lack of a comprehensive listing of properties and assets the state owns.

"There is not a single list anywhere of the state's entire inventory," Passantino said. "If you even don't know what you own, how can you decide what assets you want to dispose of?"

While no comprehensive list is available, the state owns thousands of parcels of land in Los Angeles County. "Just entering the word 'state' into our database turned up 2,253 parcels," said Robert Knowles, spokesman for the L.A. County Assessor's office.

That number is a bare minimum, since many parcels owned by the state don't include the word "state" in their titles.

Of all the California holdings in L.A. County, only a few have been identified as surplus properties. The largest of these is a portion of the Lanterman Developmental Center, a sprawling facility in Pomona that houses and treats the mentally disabled. A 2001 report to the state Legislature indicated that 41 acres of the site is considered surplus.

One downtown site has been declared surplus property: the old Junipero Serra state office building at 107 South Broadway, near L.A. City Hall.

In the late 1990s, the 107 Broadway site was considered as part of a possible land swap that would help clear the way for a new federal courthouse. That courthouse deal has since been put on hold.

The property has potential, said Mark Tarczynski, senior vice president with CB Richard Ellis Inc. "The only problem is the state's arcane, almost Byzantine approach to real estate disposition," he said.

The other county sites to be declared surplus in that 2001 report were a couple of four-acre parcels owned by the California Coastal Conservancy in Malibu and several small parcels in the Santa Monica Mountains owned by the Santa Monica Mountains Conservancy.

Coliseum land

Among the highest profile state holdings in L.A. County is the land underneath the Coliseum.

Theoretically, that property is very valuable. But since the stadium is a historical monument that cannot be torn down or relocated, and the adjacent parking lots are under different ownership, it might be difficult to sell to a private party.

And any investment group interested in spending a few hundred million dollars to renovate the storied venue for a National Football League team might not be willing to spend additional money for the land underneath.

In the 1950s, the state agreed to lease out the site to the Coliseum operators for 99 years. Currently, the L.A. Coliseum Commission is paying the state $80,000 a year for that lease, and those terms are set to expire on Dec. 31, 2005. Coliseum Commission General Manager Pat Lynch said new terms are currently being negotiated. "I would expect under the new terms we will be paying more," Lynch said.

Three of the biggest state landholders in the county are the California Department of Transportation, the University of California Board of Regents and the California State University system. Each owns thousands of acres of property, but it's unclear how much of that property can be considered surplus.

At Caltrans, Los Angeles District Office spokeswoman Judy Gish said the agency's holdings include single-family and multifamily homes acquired in advance of a Long Beach (710) Freeway expansion project, as well as numerous maintenance yards and several commercial and industrial buildings. The agency also leases out land underneath freeways, mostly to industrial tenants.

Gish said the agency is currently reviewing all these holdings to determine which, if any, can be classified as surplus.

As for the state university holdings, many extend beyond formal campus boundaries. At UCLA, the university owns several properties that are used for student housing or activity centers on the east side of Hilgard Avenue.

Tarczinski said there is tremendous demand from developers who would build student housing near the campuses.

However, officials at both the UC and Cal State systems said they don't expect to find much surplus property.

For Sale?

L.A. County properties owned, by state agency.

California Department of Transportation: Maintenance yards; commercial and industrial properties near freeways; residential properties along the 710 Freeway corridor

University of California Regents: Property adjacent to UCLA campus; other satellite holdings

California State University: Properties adjacent to Cal State campuses in Northridge, East L.A., Los Angeles, Carson and Long Beach

Developmental Services: 41 surplus acres at Lanterman Developmental Center in Pomona

General Services: Junipero Serra State Offices Building in downtown L.A.

Coastal Commission: Various small parcels near the coastline

Mountains Recreation and Conservation Authority: Various parcels, many in the Santa Monica Mountains range

Other: Land underneath the L.A. Memorial Coliseum; properties at 107 S. Broadway and along Grand Avenue in downtown L.A.

Sources: Bureau of State Audits; California Department of Transportation; Business Journal research