?As Gov. Arnold Schwarzenegger prepares to decamp from Sacramento on Jan. 3,
he has displayed zealous determination to complete what critics say will be
among the worst deals the state has ever made: the sale of 11 premier state
office complexes to a group of politically connected private investors.

The buyer is a consortium of investment firms that refuses to disclose where
the money is coming from or even who is involved.

The 2009 bill authorizing the Department of General Services to sell the
buildings (which, at 7.3 million square feet, amount to 43 percent of all
the state's office space) was hurriedly passed as part of an emergency
budget measure.

After the bill's passage, D.G.S. hired CB Richard Ellis (whose chairman,
Richard C. Blum, is married to United States Senator Dianne Feinstein) to
broker the sale. Its commission if the deal goes through will be $1.9
million.

More troubling are suggestions the transaction was handled secretively and
rewarded people with pull in the administration.

In a Dec. 3 deposition, Mr. Lockyer testified that it was his understanding
that the mayor of Santa Ana, Miguel Pulido, would receive a $500,000 payment
if the transaction closed.

Michael Bustamante, former deputy chief of staff to Gov. Gray Davis who was
hired as a spokesman by California First in September, said he did not know
who California First's partners were, and he declined a request that he
attempt to find out.
The group has put $55 million into an escrow account and will commit about
$940 million more at closing - though it is not clear where that money will
come from. The balance is debt to be provided by JPMorgan Chase.

The lawyers working for the governor have a sense of urgency to close the
deal, even though Mr. Bustamante said he was unaware of any expiration date
on California First's offer. "Every day counts," said Andrew Stroud, one of
the lawyers. "If the deal falls apart, the state loses $1.3 billion."

Mr. Stroud tried, and failed, to have the appellate court force those suing
to block the deal to post a $23 million bond to compensate the state should
the transaction fall apart. Because Mr. Casper and his allies are acting as
taxpayers of the State of California, it seemed an "unusually aggressive"
move, Mr. Casper said. It "displayed the cutthroat determination of the
governor and D.G.S. to get this deal done before Jan. 3."

In a twist, all seven California Supreme Court justices recused themselves
Tuesday when lawyers for the state appealed to that court for permission to
lift the stay so the deal can be closed.

Although the justices gave no reason for their mass recusal, it might have
arisen from the fact that their court, in the Earl Warren Building in the
San Francisco Civic Center complex, is among the properties that would be
sold.

http://www.nytimes.com/2010/12/26/us..._r=1&src=twrhp

Seems like republicans an democrats can play nice if the price is right.

Best Regards

Tom.

On Sun, 26 Dec 2010 17:41:38 -0800, "azotic"
wrote:

?As Gov. Arnold Schwarzenegger prepares to decamp from Sacramento on Jan. 3,
he has displayed zealous determination to complete what critics say will be
among the worst deals the state has ever made: the sale of 11 premier state
office complexes to a group of politically connected private investors.

http://www.nytimes.com/2010/12/26/us..._r=1&src=twrhp

Seems like republicans an democrats can play nice if the price is right.

Here's the other side of the story and a whole lot more info on it.
NYT's liberals don't work at the Orange County (CA) Register.
http://taxdollars.ocregister.com/201...e-later/70246/
And what if the state doesn't need all that extra office space because
it comes to the realization that they don't need all those
bureaucrats? It can stop leasing those buildings and be free and
clear. I think Arnie nailed it on this one.

--
Remember, in an emergency, dial 1911.