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State Building Sale Put On Hold

SAN FRANCISCO (AP) -- An attorney representing the Schwarzenegger administration has pledged that 11 state government office complexes will not be sold before a December court hearing.

Sacramento attorney Andrew Stroud made the promise Monday before a scheduled hearing for a preliminary injunction against the sale. The hearing was postponed until sometime before the Dec. 15 closing date.

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A lawsuit filed last week in San Francisco County Superior Court alleges the sale process illegally bypassed the state Judicial Council and that the deal amounts to an improper gift of public funds.

The state plans to sell the buildings as a way to help address this year's budget deficit and will lease them back for at least 20 years. The nonpartisan Legislative Analyst's Office says the deal will cost taxpayers at least $1.4 billion over the long run.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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