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Brown Snuffs Out California Fire Sale, Has Another Idea

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Remember, the great Schwarzenegger-induced fire sale of government edifices, like downtown’s Ronald Reagan State Building (pictured)? Jerry Brown has canceled it, reports the Los Angeles Times, saying it amounted to a gigantic loan that would end up costing more money in the long-term since the state still needs the office space and would be forced to pay rent to another owner—the Associated Press reported in April that “after 20 years, the deal would end up costing the state about $1.1 billion more than it would gain in the transaction” (some state officials voiced some opposition to Schwarzenegger’s plan and found themselves out of a job, whether coincidentally or not). Brown, who also pointed out that it’s not the best time to sell real estate, says he has an idea to offset the money not made on the fire sale—conducting internal borrowing from state funds that could be obtained at a lower rate than the rent payments from the buildings sale. The governor is still mulling selling state land like the OC Fairgrounds, a site that saw offers come in at less than half the asking price last year.
· Brown Cancels Sale of 11 Government Buildings [LA Times]
· Turns Out a Fiscal Analysis of the Fire Sale Would Be Good [Curbed LA]