California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

This past week, governor Schwarzenegger called for the idea of selling state assets
such as Cal Expo, San Quentin Prison, Del Mar Race Track, the Cow Palace, and the
LA Memorial Coliseum to mention just a few properties in order to raise money to
offset the budget deficit.

The problem with that idea at this time is who wants to buy or can acquire the capital
to purchase the property and is it a good time to sell at the bottom of a market?

The governor’s proposal estimates the state could raise between $600 million and
$1 billion. Other properties on the list include the Orange County Fairgrounds, the
Ventura County Fairgrounds.

But the governor would have to get approval from the state Legislature to approve
the sale of any property, and they seem reluctant to do so.  Previous proposals to
sell San Quentin and the Coliseum haven’t moved forward in the legislature.

I am Tim Johnson and this has been the California Business Minute.