Timberland Acquisition. Bond Act.

TIMBERLAND ACQUISITION. BOND ACT. INITIATIVE STATUTE. Requires state acquisition of property of Pacific Lumber Company (193,000 acres of timberlands, mills, milltown) and resale to current employees, organized pursuant to employee stock ownership plan, subject to sustained yield harvesting practices. Reserves 2,000 acres for redwood wilderness preserve for nature, wildlife purposes; 1770 acres for resale within twenty years to private foundations or conservation groups, for inclusion in preserve. Provides state financed loans, repayable over 40 years, to employee corporation to fund purchase, improvements, operating capital. Authorizes general obligation bond issue of $940,000,000 to fund acquisition, other provisions, payable from General Fund. Summary of estimate of Legislative Analyst and Director of Finance of fiscal impact on state and local governments: State costs of $940 million in bond principal, $890 million in projected bond interest for acquisition of Pacific Lumber Company property. Potential unknown General Fund cost for interest payments on bond program loans made before bonds sold. Unknown costs attributable to administering bond funds, for acquisition, management of acquired property, and for managing wilderness preserve. Indeterminate portion of acquisition cost could be reimbursed by proceeds of property sale to employee stock ownership plan. Possible additional cost to state if employee corporation defaults on all or portion of mandated $100 million unsecured loan from state. Unknown reductions in local property tax revenues due to tax-exempt status of property while in state ownership