On The Money: In The Rough

By Mike Luery

OAKLAND HILLS, Calif. (CBS13) -- California is drowning in debt, could generate millions of dollars by selling some very valuable properties, including one CBS 13 found that could be an "ace in the hole" for taxpayers.

It's the Montclair Golf Course, a 9-hole pitch and putt located in the Oakland Hills. And guess who owns a portion of this public course? The answer is you do.

"There's no reason for the State of California to own a golf course," said Tony Strickland, a Republican Senator from Thousand Oaks.

As it turns out, the state of California owns 1.5 acres of the ten acre property that includes a driving range, club house and pro shop. The surrounding houses sit on hilly terrain, while the golf course lies on land originally purchased in 1955 for a nearby freeway. But plans to widen that freeway hit a bunker years ago.

Selling the state's share of the property could generate up to $1.5 million for the state, according to a report on California's high value urban properties from 2004 (see page 29 of 130).

Caltrans is renting its share of the property to the city of Oakland for just $840 a year. Golfer Tom Roberts was surprised by that.

"$840 a year?" he said in the parking lot of the Montclair Golf Course. Roberts added, "Wow that's a bargain."

It used to be even less money: just $693. That's what Caltrans collected each year from the city of Oakland from 1959 – 2000, before the rent jumped to $840 annually. Add it up and you'll discover the state has collected less than $37,000 in rent since first leasing the property 52 years ago, when it first opened as a golf course.

The greens fees are also a bargain -- costing On The Money just $7 a person to tee off -- on a course with no other golfers on the links when we came to play.

Golfer Victor Robles noted, "You cannot beat the price. It's an excellent price."

But is it a good deal for taxpayers? Golfer Tom Roberts told us, "You know with the public parks being in dire straights, this is nice to have for the public."

But with California so deep in the hole, Senator Tony Strickland wants the state to sell its share of the golf property to raise revenue.

"I think it becomes a win win," the Senator from Thousand Oaks said. "And we need to put everything on the table to solve the budget problem."

And when Strickland says everything, he means other prominent state properties, identified in that same report including the Los Angeles Memorial Coliseum, home of the USC Trojans. The state owns a portion of a property that some say could sell for up to $400 million. (See page 107 of 130)

Also on the list, the Cow Palace, just south of San Francisco, home to the rodeo and horse shows, worth an estimated $45 to $77 million. (See page 123 of 130)

And Sacramento's Cal Expo is worth up to $130 million, according to the report (see page 119 of 130).

Altogether the state's share in those three properties could add up to about $600 million in potential revenues for the state. And while the real estate deals may be complicated – the golf course is in play. Caltrans now says there's a tentative deal to sell its portion of the property to the city of Oakland.

Caltrans says it has generated $150 million for California over the years, through the sale of nearly 1,700 properties.

But what does Governor Brown think about the golf course in the Oakland hills? On The Money will have his reaction Thursday on the CBS 13 News at 6.

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