Court Blocks Sale Of California State Buildings

SAN JOSE, Calif. (CBS13) -- Taxpayer advocates trying to stop the sale of 11 state properties scored a surprise victory in court Monday afternoon.

The California Court of Appeals in San Jose issued a stay that immediately halts the sale of the state buildings, which was scheduled to close escrow on Wednesday.

The sale of the buildings, including the Attorney General's building and roughly half a dozen other state properties in Sacramento, were expected to generate $1.3 billion for the state's general fund and had already been accounted for in the current budget.

The lawsuit claimed the sale was a waste of public funds (.pdf; 2MB) because it would cost the state over $1 billion more in the long run to sell the buildings and then lease them back. The opponents to the plan are trying to get a permanent injunction to stop the sale of those buildings.

More details on the decision will be released when both sides file legal briefs with the court December 29.

Past Stories:
- Mayor To Get $500K From Building Sale
- State Building Sale Postponed Until Hearing
- Report: Sale To Cost Taxpayers Extra $800M
- Company Cries Foul Over State Bidding Process