Schwarzenegger: Now is a bad time to sell California’s assets
SACRAMENTO, Calif. (AP) – Gov. Arnold Schwarzenegger says it’s the wrong time to consider putting California landmarks up for sale – less than a month after he proposed doing just that.
He acknowledged Friday it was not “the best time right now” to sell state assets such as the San Quentin State Prison, the Los Angeles Memorial Coliseum and the California State Fairgrounds.
Schwarzenegger originally announced the proposal in May as part of his revised plan to address a $24.3 billion budget deficit.
The Republican governor said California could generate $3 billion from selling seven landmarks and 11 office buildings scattered around the state.
The real estate market is just one part of California’s economy that has been pummeled by the recession.
Real estate experts told The Associated Press last week that many of the properties would be undervalued if placed on the market now because the commercial real estate market is so poor. Many potential buyers also might have trouble obtaining credit.
Even if the properties were put up for sale this year, California would not realize proceeds for perhaps two to five years – and in some cases even longer. That would do nothing for the current budget crisis.