Comments on: Legislative Analyst: State building sale a bad idea

By: Jerry Brown nixes state buildings’ sale/leaseback | Political Blotter

Jerry Brown nixes state buildings’ sale/leaseback | Political Blotter — Wed, 09 Feb 2011 19:49:50 +0000

[...] The nonpartisan Legislative Analyst’s Office had panned the plan last April. [...]

By: John Kasich is thinking about balancing the budget with “one time” money

Fri, 24 Dec 2010 01:22:02 +0000

[...] undoubtedly a much worse budget crisis than Ohio considered the same idea, but it’s non-partisan Legislative Analysts’ Office concluded that such an idea was really, really, really dumb: We estimate that the sale of buildings [...]

By: flying4vino

flying4vino — Thu, 29 Apr 2010 15:00:32 +0000

One wonders how many of the bidders have really looked carefully at the package. The small clause in the lease designed to benefit the SEIU, the expense provisions, the maintenance obligations, the staffing obligations, the deferred maintenance, the casualty provisions or what code issues arise when the buildings shift from public to private ownership.

The foundational assumption that the state can transfer cost risks to the private sector runs contrary to virtually all major tenant , long term leases in office buildings, shopping centers and warehouses. The only way that this can be achieved is to pay a substantially over market yield or to have investors who have dumb lenders.

Perhaps some insiders have assurances that the lease terms will be rewritten after the other bidders have been eliminated.