Asset Management Posters

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Asset Management Posters

  1. 1. Asset Management Plan
  2. 2. <ul><li>The State’s assets fall into three categories </li></ul><ul><ul><li>Surplus property </li></ul></ul><ul><ul><li>Underutilized property </li></ul></ul><ul><ul><li>Assets </li></ul></ul>Asset Management Efficiencies and Opportunities
  3. 3. Category #1: Disposal of Surplus Property <ul><li>Surplus Properties </li></ul><ul><ul><li>Not utilized – serves no current purpose </li></ul></ul><ul><ul><li>Not needed for the State’s future plans </li></ul></ul>
  4. 4. Current Surplus Property Fred C. Nelles School for Boys <ul><li>Location: Whittier, CA </li></ul><ul><li>Acreage: 74 </li></ul><ul><li>Estimated Value: $70 million </li></ul>
  5. 5. Proposed Surplus Property Agnews Developmental Center <ul><li>Location: San Jose, CA </li></ul><ul><li>Acreage: 86 </li></ul><ul><li>Estimated Value: $60 million </li></ul>
  6. 6. Category #2: Better Utilization of Existing State Property <ul><li>Properties are currently in use but underutilized </li></ul><ul><li>Potential exists to maximize usage of the property to achieve its highest and best use </li></ul><ul><li>Potential exists for long-term ground leases </li></ul>
  7. 7. Long-Term Ground Lease Example California Institution for Men, Chino <ul><li>Location: Chino, CA </li></ul><ul><li>Acreage: 1,700 (60 acres identified as underutilized) </li></ul><ul><li>Estimated Land-Lease Value: $1 million annually (beginning FY 2015-16) </li></ul>
  8. 8. Category #3: State Assets <ul><li>Applies to properties that are utilized but retain significant equity that may be attained by the State through refinance or sale </li></ul><ul><li>Includes office buildings and high-value properties </li></ul>
  9. 9. Refinancing of State-Owned Buildings <ul><li>Potential exists to refinance bond-financed buildings that have increased in value </li></ul><ul><li>Potential revenue: $500 - $600 million </li></ul>
  10. 10. Sale/Leaseback of State Buildings <ul><li>Allows the State to capture a property’s equity and eliminate debt tied to the property </li></ul><ul><li>State would continue to occupy the property per the leaseback agreement </li></ul><ul><li>Eleven buildings identified for potential sale/leaseback </li></ul><ul><li>Potential Revenue: $600 million </li></ul>
  11. 11. Sale/Leaseback Example Ronald Reagan Building <ul><li>Location: Los Angeles, CA </li></ul><ul><li>Estimated Market Value: $182 million </li></ul>
  12. 12. Sale of High-Value Properties <ul><li>Allows for the disposition of existing State assets to free up needed equity </li></ul><ul><li>Functions of property do not necessarily change, only ownership </li></ul><ul><ul><li>Opportunities exist for local fairs, community events, and racetracks to continue operation </li></ul></ul>
  13. 13. High-Value Property Example #1 Cow Palace <ul><li>Location: Daly City, CA </li></ul><ul><li>Acreage: 70 </li></ul><ul><li>Estimated Value: $40 – $75 million </li></ul>
  14. 14. High-Value Property Example #2 Orange County Fairgrounds <ul><li>Location: Costa Mesa, CA </li></ul><ul><li>Acreage: 190 </li></ul><ul><li>Estimated Value: $96 – $180 million </li></ul>
  15. 15. Summary <ul><li>The Asset Management Plan </li></ul><ul><ul><li>Presents an opportunity to fundamentally change the way we conduct our business and manage our assets </li></ul></ul><ul><ul><li>Requires multi-year implementation that must begin now </li></ul></ul><ul><ul><li>Could generate billions in General Fund income and savings </li></ul></ul>

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