Education

SACRAMENTO (CBS) ― The University of California is more than one billion dollars in debt, but owns properties worth millions of dollars around the globe – in fact the list is more than one hundred pages long.

Critics wonder why the University isn't putting some of those properties up for sale to help offset student fee hikes. One of the properties on the list is a hidden jewel in the South Pacific – a 35 acre research facility known as Gump Station, located on a Tahitian island called Moorea.

The remote lab in French Polynesia is more than 4,000 miles from San Francisco.

The UC property is worth an estimated $3.6 million – and it's now creating controversy at the Capitol.

State Senator Leland Yee (D-San Francisco) said, "They are living in fantasy land. They have no sense of what is going on in the State of California."

The University also owns this stately Casa de California – a home away from home for UC faculty and graduate students doing research in Mexico City. The University calls it UC Mexus – a hub for UC activities in Mexico. The estimated value of this property is $4 million, according to UC.

Closer to home is a UC property known as Tanglewood Estate. It's home to a beautiful botanical garden with more than 75 rare species of plants, sitting on land that overlooks San Francisco Bay in Sausalito. UC records show the property is worth an estimated $1.1 million. While the property is currently restricted from sale until 2012, Tanglewood could be put on the market in two years time to help provide scholarships to architecture students.

"In 2012, we may look at that and find the market may have recovered," said Patrick Lenz, a Budget Vice President with the University of California's Office of the President. "And there may be a benefit to making that sale and for using that money for scholarship purposes."

At the State Capitol, there's a bipartisan push for the University to generate capital from its million dollar properties.

"I know it's tough times right now, said Jeff Denham. The Republican State Senator from Merced told CBS: "They should be selling off a lot of these properties."

That's also the sentiment from a number of students – who have seen their fees skyrocket 32% in just two years – many of those we talked to say it's time to sell.

"I think it's a good idea," said Kevin Yung, a UC Davis freshman." I mean students are struggling already so anything that would lower the fees is anything good. That's how I see it," Yung said.

But University officials say the ocean research at Moorea island laboratory has a far greater value than selling the property for a one-time cash pay-out. And they say - in a depressed real estate market – now is not the time to be selling any of its properties.

Doing so now, Lenz said, would not solve the University's long term, billion dollar problems. Instead, he told CBS, UC needs "revenue that's got to be sustainable to the University. It's got to be predictable. It's got to allow us to plan for long term budgets."

But Gregory Clark, an economics professor at UC Davis, said the University should be taking a critical look at its entire real estate portfolio.

"Absolutely," stated Clark. "The University at the current time needs to go through every piece of property it owns and say - does this make sense for us."

That's the kind of economic lesson that makes sense for students, who are looking for a break.

"Give out more financial aid," said Ariana Hosseini. The UC Davis junior added, "Give out more scholarships, help us."

The University of California also owns a property in Washington D.C. that serves as a center for students and faculty. UC says it has a value of more than $27 million dollars for the land and building.

While some state lawmakers want UC to take action by selling some of the properties, in reality there's very little elected officials can do. Under California's constitution, the University of California is independent of the legislature and governed by the UC Board of Regents.

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