Senator Dave Cogdill - State Lands Commission Shortchanges Taxpayers

The State Lands Commission, effectively the state's landlord for publicly-owned properties, may have been shortchanging California taxpayers for decades by charging tenants rock-bottom rent for prime properties, even during the height of the real estate boom.

Recently, the Joint Legislative Audit Committee approved an investigation, which I requested, into how the State Lands Commission manages leases and if they have collected fair market value in rent for publicly-owned lands held in trust.

One example of mismanagement includes USS-POSCO, a steel company which continued to occupy 490 acres of state-owned land in Pittsburg for 12 years after the lease expired. The property was originally leased at $235,137 annually, but the Commission only collected a total of $66,784 in back rent during the 12 year period, which included the peak of California's real estate market.

The State Auditor's report should be completed by next spring.

Click here to watch an investigative news story done by KOVR Channel 13 on this issue.