Gov. Bobby Jindal has proposed selling some publicly owned property in an effort to generate $35 million for the state operating budget and $40 million that would be saved for uses determined at a later date. The additional $40 million would be deposited into the Budget Stabilization Fund, known as the state rainy day fund, which is currently underfunded. With the proposal submitted, it is now up to state lawmakers to consider the pros and cons of the idea.
While the land may be opened up for sale as commercial real estate, there may be limitations to who can purchase the land or what construction can occur. Potential restrictions may be put in place to ensure that the areas are used appropriately and in accordance with all zoning laws by their future owners. As of yet, no final agreements have been made regarding their sale and no buyers have been identified.
Among the real estate chosen for possible sale are a parking complex, a mental hospital, a prison system, and at least one currently undeveloped plot of land. One of the more controversial elements of the proposal, the sale of the prison system to a private company, needs to be legislatively approved.
For companies or individuals looking into the prospect of acquiring commercial real estate such as those the governor proposes to sell, the process can seem daunting given many of the complexities of such transactions. The nature of commercial real estate transactions, which can involve multiple parties such as construction companies, owners, property managers and lessees, may make it necessary to seek legal counsel to help address the multitude of potential situations to ensure a positive outcome for all involved.
Source: The Daily Reveille, “Gov. Jindal proposes selling property to generate $75 million,” March 16, 2012