Bill Text: CA AB418 | 2011-2012 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Tidelands and submerged lands: City and County of San
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2011-10-06 - Chaptered by Secretary of State - Chapter 477, Statutes of 2011. [AB418 Detail]
Download: California-2011-AB418-Amended.html
Bill Title: Tidelands and submerged lands: City and County of San
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2011-10-06 - Chaptered by Secretary of State - Chapter 477, Statutes of 2011. [AB418 Detail]
Download: California-2011-AB418-Amended.html
BILL NUMBER: AB 418 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 30, 2011
AMENDED IN SENATE JULY 1, 2011
AMENDED IN SENATE JUNE 23, 2011
INTRODUCED BY Assembly Member Ammiano
FEBRUARY 14, 2011
An act relating to tidelands and submerged lands.
LEGISLATIVE COUNSEL'S DIGEST
AB 418, as amended, Ammiano. Tidelands and submerged lands: City
and County of San Francisco: Pier 70.
Existing law grants to the City and County of San Francisco the
right, title, and interest of the State of California in and to
certain tidelands and submerged lands in trust for certain purposes.
Under existing law, the Burton Act, and the Burton Act transfer
agreement, the interest of the state in and to the Harbor of San
Francisco was transferred in trust to the City and County of San
Francisco. The State Lands Commission has jurisdiction over tidelands
and submerged lands of the state.
This bill would authorize the State Lands Commission to approve an
exchange of trust lands within the Pier 70 area, as defined, subject
to specified conditions. The bill would provide that lands exchanged
out of the trust are free from the requirements of the public trust,
the Burton Act trust, and the Burton Act transfer agreement, and
lands to be exchanged are subject to the requirements of the public
trust, the Burton Act trust, and the Burton Act transfer agreement.
The bill would provide that the precise boundaries of the lands to
be taken out of the trust and the lands to be put into the trust
pursuant to the exchange shall be determined by the Port of San
Francisco, subject to the approval of the commission. All lands
exchanged into the public trust shall be held by the Port of San
Francisco.
This bill would authorize the use or lease of historic buildings
situated on trust lands for purposes not otherwise consistent with
the public trust or the Burton Act trust if specified requirements
are met.
This bill would make legislative findings and declarations as to
the necessity of a special statute for Pier 70 in the City and County
of San Francisco.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The following definitions apply for purposes of this
act:
(a) "AC34" means the 34th America's Cup.
(b) "AC34 events" means the AC34 sailing regatta and related
events described in the host agreement.
(c) "BCDC" means the San Francisco Bay Conservation and
Development Commission established under Section 66620 of the
Government Code.
(c) "AC34 match" means the final series of races between the team
representing the Golden Gate Yacht Club and the team representing the
challenger accepted by the Golden Gate Yacht Club, the winner of
which will hold the America's Cup, and is intended to have the same
meaning as the term "match" as defined in the host agreement.
(d) "Burton Act" means Chapter 1333 of the Statutes of 1968, as
amended.
(e) "Burton Act transfer agreement" means that certain agreement
dated January 24, 1969, between the state and the city, relating to
the transfer of the Port of San Francisco from the state to the city,
and any amendments to that agreement in accordance with its terms.
(f) "Burton Act trust" means the statutory trust imposed by the
Burton Act, and any additional restrictions on use and alienability
created by the Burton Act transfer agreement.
(g) "City" means the City and County of San Francisco, a charter
city and county, and includes the port.
(h) "Commission" means the State Lands Commission.
(i) "Event Authority" means the America's Cup Event Authority,
LLC.
(j) "Financial and land use plan" means a financial and land use
plan approved by the board of supervisors of the city under Section
B7.310 of the charter of the city after approval of any amendments to
the city's general plan necessary to ensure that the financial and
land use plan conforms to the city's general plan.
(j)
(k) "Harbor fund" means the separate fund in the
treasury of the city established and maintained in accordance with
Section B6.406 of the charter of the city and Section 4 of the Burton
Act.
(k)
(l) "Historic buildings" means those buildings that
have been designated as, or meet the standards for, resources
contributing to the historic significance of the Pier 70 Historic
District under federal law.
(l)
(m) "Host agreement" means the Host and Venue Agreement
between the Event Authority and the city setting forth certain
conditions, including completion of environmental review under the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code), under which the city
will act as host city for AC34 events.
(m)
(n) "Lease" means a ground lease or space lease of real
property, license agreement for use of real property, temporary
easement, right-of-way agreement, development agreement, or any other
agreement granting to any person any right to use, occupy, or
improve real property under the jurisdiction of the port.
(n)
(o) "Master plan" means the Pier 70 Preferred Master
Plan published by the port in April 2010.
(p) "Other nontrust sources" means sources of funds for the
development of the Pier 70 area other than trust land revenues and
trust termination revenues, such as tax increment financing and
proceeds from city general obligation bonds approved by the voters
for use in the Pier 70 area.
(q) "Other port revenues" means revenues to the port generated
from port lands other than trust termination lands.
(o)
(r) "Person" means any private person, corporation,
limited liability company, partnership, joint venture, business
entity, business trust, association or other private organization or
private entity, or any governmental entity or agency.
(p) "Pier 70 area" means the approximately 69-acre site owned by
the port commonly known as the Pier 70 area.
(s) "Pier 70 area" means that certain real property situated in
the City and County of San Francisco and consisting of the parcel
commonly known as seawall lot 349 (also known as the Alvord Grant), a
portion of the parcel commonly known as seawall lot 345, portions of
Assessor's Block 4110, and portions of Twentieth Street, and more
particularly described as follows:
Commencing at the point of intersection of the northerly line of
Twentieth Street (66.00 feet wide) with the easterly line of Illinois
Street (80.00 feet wide), as said point is described on that certain
San Francisco Department of Public Works Monument Map No. 326, a
copy of which is on file at the office of the Chief Harbor Engineer
of the San Francisco Port Commission; running thence easterly along
said northerly line at North 86 49' 20" East, 13.20 feet,
to its intersection with the Von Leicht Pueblo Line of 1883, the True
Point of Beginning; thence along said Pueblo Line at North 30
25' 08" West, 36.23 feet; thence continuing along said Pueblo
Line, North 07 25' 33" West, 106.09 feet; thence
continuing along said Pueblo Line, North 32 40' 12" West,
92.23 feet; thence continuing along said Pueblo Line, North 58
40' 13" West, 28.32 feet, to the westerly line of Illinois
Street; thence along said westerly line of Illinois Street North 3
10' 40" West, 990.59 feet; thence North 86 37'
29" East, 373.53 feet, to a point along the top edge of the existing
embankment along the Central Basin; thence running along said top
edge, through the following courses: South 1 20' 44" West,
7.76 feet; thence South 1 38' 35" East, 11.26 feet;
thence South 40 13' 42" East, 22.84 feet; thence North 84
09' 38" East, 9.64 feet; thence South 54 03' 28"
East, 4.40 feet; thence South 66 58' 42" East, 14.04
feet; thence South 3 58' 56" West, 8.87 feet; thence South
40 41' 13" West, 10.59 feet; thence South 48
18' 22" West, 112.56 feet; thence South 65 39' 37" West,
31.48 feet; thence South 77 53' 28" West, 12.33 feet;
thence South 83 28' 47" West, 30.12 feet; thence South 5
25' 41" East, 34.27 feet; thence North 83 49'
52" East, 69.07 feet; thence South 52 29' 10" East, 63.13
feet; thence leaving the said top edge of embankment and running
along the existing fence line, North 38 37' 07" East, 9.09
feet; thence South 65 12' 52" East, 23.30 feet; thence
South 17 35' 05" West, 4.22 feet; thence South 66
47' 12" East, 36.94 feet; thence South 54 34' 59"
East, 58.20 feet; thence North 86 49' 20" East, 345.07
feet; thence South 3 10' 40" East, 316.06 feet; thence
South 8 17' 47" East, 70.21 feet; thence South 16
44' 40" East, 13.46 feet; thence South 55 28' 50"
East, 119.49 feet; thence North 86 49' 20" East, 118.13
feet; thence South 3 10' 40" East, 35.72 feet; thence
North 86 49' 20" East, approximately 130 feet, to the Mean
High Water Line of San Francisco Bay; thence easterly,
southeasterly, and southerly along said Mean High Water Line, to its
intersection with a line drawn parallel with and distant 154.00 feet
southerly from the southerly line of Twenty-Second Street; thence
westerly, along said parallel line, South 86 49' 20" West,
approximately 1,080 feet, to a point distant 60.00 feet northerly of
the center line of Georgia Street, now closed; thence North 23
55' 19" West 56.47 feet, to a point on the easterly line of
said Georgia Street, said point lying distant 101.20 feet southerly
of the southerly line of Twenty-Second Street; thence North 41
30' 21" West, 129.27 feet, to the intersection of the southerly
line of Twenty-Second Street and the westerly line of said Georgia
Street; thence along said westerly line of Georgia Street, at North 3
10' 40" West, 66.00 feet, to the northerly line of
Twenty-Second Street; thence North 86 49' 20" East, along
the northerly line of Twenty-Second Street, 40.00 feet, to the center
line of said Georgia Street; thence North 3 10' 40" West,
along said center line of Georgia Street, 269.96 feet; thence South
86 49' 20" West, 240.00 feet, to the easterly line of
Michigan Street; thence North 3 10' 40" West, along the
easterly line of Michigan Street, 347.34 feet, to a point along the
Von Leicht Pueblo Line of 1883; thence along said Pueblo Line, at
North 68 29' 53" West, 52.52 feet; thence continuing at
North 44 01' 43" West, along said Pueblo Line, 49.32 feet,
to the westerly line of Michigan Street; thence South 3
10' 40" East, along said westerly line of Michigan Street, 347.95
feet; thence South 86 49' 20" West, 200.00 feet, to the
easterly line of Illinois Street; thence North 3 10' 40"
West, along the easterly line of Illinois Street, 537.00 feet to the
southerly line of Twentieth Street; thence North 86 49' 20"
East, 50.49 feet, to a point on the Von Leicht Pueblo Line of 1883;
thence along said Pueblo Line, at North 34 03' 04" West,
29.62 feet; thence continuing along said Pueblo Line, at North 31
45' 00" West, 46.20 feet, to the True Point of Beginning;
containing an area of 2,717,640 square feet (62.39 acres) of land,
more or less.
(q)
(t) "Port" means the Port of San Francisco, acting by
and through the San Francisco Port Commission.
(r)
(u) "Public trust" means the common law public trust
for commerce, navigation, and fisheries.
(s)
(v) "San Francisco waterfront" means those lands placed
by the city under the management, supervision, and control of the
port.
(t) "Seawall lot 330" means that certain parcel of real property
more particularly described as ____.
(w) "Seawall lot 330" means that certain parcel of real property
situated in the City and County of San Francisco and more
particularly described as follows:
Commencing at the point of intersection of the northeasterly line
of Beale Street and the southeasterly line of Bryant Street, as said
point is described on that certain San Francisco Department of Public
Works Monument Map Number 318, with a copy on file at the Office of
the Engineers of the San Francisco Port Commission; running thence
northeasterly, along the southeasterly line of Bryant Street, for a
distance of 158.00 feet to the true point of beginning; continuing
thence along the southeasterly line of Bryant Street, for a distance
of 218.69 feet; thence along a curve to the right, having a radius of
57.50 feet and a central angle of 48 28' 22", to the
realigned southeasterly line of Bryant Street; thence along the said
realigned southeasterly line of Bryant Street, for a distance of
64.90 feet, to the westerly line of the Embarcadero; thence at a
right angle southerly and running along the westerly line of the
Embarcadero, for a distance of 617.98 feet, to the northeasterly line
of Beale Street; thence at a deflection angle of 131 30'
38" to the right and running along the northeasterly line of Beale
Street, for a distance of 334.53 feet; thence at a right angle
northeasterly, running parallel to Bryant Street, for a distance of
158.00 feet; thence at a right angle northwesterly, parallel to Beale
Street, for a distance of 143.00 feet, to the true point of
beginning, containing an area of 101,487.1 square feet of land, more
or less.
(u)
(x) "Secretary's Standards" means the United States
Secretary of the Interior's Standards for the Treatment of Historic
Properties with Guidelines for Preserving, Rehabilitating, Restoring
and Reconstructing Historic Buildings.
(v)
(y) "Senate Bill 815" means Chapter 660 of the Statutes
of 2007, as amended.
(w)
(z) "State" means the State of California.
(x)
(aa) "Team" means the Oracle Racing Team, successor to
the BMW Oracle Team, and its successors.
(y)
(ab) "Tidelands" means tide and submerged lands.
(z)
(ac) "Trust" means the public trust or the Burton Act
trust, or both, as appropriate in the context of its use.
(ad) "Trust land revenues" means revenues to the port generated
from the use or lease of port-owned lands, whether within or outside
of the Pier 70 area, other than trust termination lands.
(aa)
(ae) "Trust lands" means all lands, including
tidelands, within the Pier 70 area that are presently subject to the
trust. Following a trust exchange, trust lands shall include all
lands within the Pier 70 area that have been impressed with the trust
by the exchange, and shall not include any lands that have been
removed from the trust by the exchange.
(ab)
(af) "Trust termination lands" means all lands within
the Pier 70 area that will not be subject to the trust following a
trust exchange.
(ag) "Trust termination revenues" means revenues to the port
generated from the use, lease, or sale of the trust termination lands
following a trust exchange.
(ac)
(ah) "Venue" means a site under port jurisdiction that
is subject to the public trust and that is proposed to be used for
AC34 events.
(ad)
(ai) "Waterfront land use plan" means the Port of San
Francisco Waterfront Land Use Plan, including the waterfront design
and access element, adopted by the port in 1997 under Resolution No.
97-50, as amended from time to time.
SEC. 2. The Legislature finds and declares all of the following:
(a) The A purpose of this act is to
facilitate the productive reuse of the lands within the Pier 70 area
of San Francisco in a manner that furthers the purposes of the trust.
To effectuate this purpose, this act approves and authorizes the
commission, subject to the requirements of this act, to carry out an
exchange of lands that will place or confirm the public trust or the
Burton Act trust on lands within the Pier 70 area with substantial
value for the trust, and terminate the public trust and the Burton
Act trust in Pier 70 area lands that no longer are useful for trust
purposes.
(b) The Pier 70 area is one of the most important intact maritime
industrial complexes west of the Mississippi. It is the oldest
continuously operating shipyard on the west coast. For over 150
years, some portion of the Pier 70 site has been in use for
shipbuilding and repair, steel production, and supporting heavy
industrial uses. With the arrival of the Union Iron Works in the
1880s, the site became a major national and international
shipbuilding center, launching, for example, the first steel-hulled
ship built on the Pacific Rim. The shipyard at Pier 70, later
acquired by the Bethlehem Steel Corporation, built both merchant
ships and warships, and was a major supplier for the United States
Navy during the Spanish-American War and both world wars. Its
development was a key step in the spread of industrialization to the
Pacific Coast.
(c) The Pier 70 area is within the jurisdiction of the port.
Preserving the Pier 70 area's historic resources is one of the port's
goals in its waterfront land use plan. In furtherance of that goal,
the port has prepared an application to list the Pier 70 area on the
National Register of Historic Places and is working with applicable
regulatory agencies to prepare a plan to remediate, if necessary, any
hazardous substances affecting the Pier 70 area. The master plan
incorporates historic preservation and remediating environmental
conditions as key objectives for development of the Pier 70 area.
(d) The Pier 70 area includes lands that were historically
tidelands subject to the public trust as well as historic uplands
that were not subject to the public trust. Beginning in 1868, certain
Pier 70 area tidelands were conveyed into private ownership by the
state pursuant to various state statutes. Portions of those tidelands
were subsequently filled and reclaimed. The public trust status of
portions of the reclaimed tidelands within the Pier 70 area, as well
as certain adjacent submerged lands, is uncertain. Due to various
historical circumstances, some of the reclaimed tidelands, including
lands located well inland from the current shoreline, may have
remained subject to the public trust, while other lands, including
reclaimed tidelands, lands along the shoreline, and adjacent
submerged lands, may have been freed from the trust.
(e) The port acquired portions of the Pier 70 area lands,
including portions of the historic uplands, as part of the state's
grant to the city under the Burton Act. The port acquired the
remainder of the Pier 70 area lands from private owners.
(f) Absent a trust exchange, substantial portions of the lands
within the Pier 70 area that are located along the waterfront or are
otherwise of high value to the trust could be sold into private
ownership, cut off from public access, and used for purposes
inconsistent with the trust. In addition, certain interior lands not
useful for trust purposes would be restricted by the trust and could
not be used for nontrust uses essential to the revitalization of the
Pier 70 area.
(g) This act is necessary for the successful revitalization of the
Pier 70 area and to realize the resulting public benefits, including
continued operation of the existing ship repair yard on
approximately 15 acres of the Pier 70 area, the elimination of
blight, the remediation of hazardous substances, the establishment of
a Pier 70 National Register Historic District and adaptive reuse of
approximately 700,000 square feet of historic buildings, the
construction of approximately 3,000,000 square feet of new infill
development compatible with the historic district predominantly for
job-creating uses such as office and technology space, providing some
6,000 to 8,000 new jobs, the creation of approximately 11 acres of
waterfront open space and an additional nine acres of internal open
space, and increased public access to the waterfront. This
legislation is also needed to improve the configuration of the trust
lands in furtherance of trust purposes.
(h) A trust exchange pursuant to this act would result in the
configuration of trust lands that maximizes the overall benefits to
the trust, without interfering with trust uses or purposes by
impressing the entire waterfront within the Pier 70 area, as well as
certain interior lands that have high trust values, with the trust
and removing from the trust lands that have been cut off from
navigable waters, are no longer needed or required for the promotion
of the trust, and constitute a relatively small portion of the
granted lands within the city. This act requires the commission to
ensure that the lands added to the trust by the exchange have a
monetary value equal to or greater than the monetary value of the
lands taken out of the trust. This act also requires that the
commission ensure that the lands to be impressed with the trust will
provide a significant benefit to the trust compared to the lands to
be removed from the trust.
(i) The State Office of Historic Preservation has reviewed the
port's draft application for listing the Pier 70 area on the National
Register of Historic Places and the establishment of the Pier 70
Historic District, and has preliminarily concurred with the port's
conclusion that several buildings in the Pier 70 area are
contributors to the proposed historic district. These historic
buildings are located throughout the Pier 70 area. They convey a
sense of the Pier 70 area's early maritime industrial history and
enhance the open-space experience in the corridor leading to the
waterfront, but are in seriously dilapidated condition. These
maritime-related historic buildings are resources of statewide
importance, and their preservation and restoration benefits the
statewide public and furthers trust purposes by providing
maritime-related education about the historic resources and their
contribution to the maritime industry, and providing public access to
view the historic architectural amenities. This act authorizes uses
of historic buildings located on trust lands that support
preservation and restoration of the buildings, maritime-related
education, and public access to view these historic resources,
including uses that would not otherwise be consistent with the trust,
subject to the requirements of this act. This act also provides that
historic buildings situated on trust termination lands, for so long
as the buildings remain in port ownership and retain their integrity
as historic resources, should continue to be managed by the port as
trust assets and historic resources of statewide importance providing
maritime-related education and public access.
(j) The successful development and revitalization of the Pier 70
area requires that land use planning, infrastructure development, and
management and control of the site as a whole be integrated. Both
the trust lands and trust termination lands within the Pier 70 area
will be served by common streets, utilities, and other infrastructure
and public facilities that will need to be constructed or improved
as part of the development of the Pier 70 area. Preserving the
historic district will similarly require investment in buildings on
both trust lands and trust termination lands. In addition, the port
anticipates substantial investment in the trust lands from nontrust
sources, including lease revenues from the trust termination lands,
infrastructure financing district tax increment funds, and park
improvements funded by city general obligation bonds. In light of
these unique circumstances, it is in the best interest of the state
and the trust to allow the port to continue to hold and manage the
trust termination lands as an asset of the trust, free of public
trust and Burton Act trust use restrictions; to require that all
revenues or other proceeds generated by the port from the trust
termination lands be deposited in the harbor fund; and to permit the
use of harbor fund moneys on the trust termination lands to enhance
the value to the trust of the trust asset, subject to the limitations
set forth in this act.
(k) The port has provided commission staff with a preliminary
forecast of the projected costs and revenues associated with the
development of the Pier 70 area, which shows that the projected trust
termination revenues and funds from other nontrust sources are
expected to exceed by over $300 million the projected costs of
rehabilitating the historic buildings and constructing infrastructure
and other public facilities located on the trust termination lands,
thereby providing a substantial benefit to the trust.
SEC. 3. (a) The commission is authorized to approve an exchange of
trust lands within the Pier 70 area that meets the requirements of
this act.
(b) The commission may not approve the exchange of the trust lands
unless it finds all of the following:
(1) The portions of the trust lands or interests in lands to be
exchanged out of the trust have been filled and reclaimed, are cut
off from access to the waters of the San Francisco Bay,
and are no longer in fact tidelands or navigable waterways, are
relatively useless for public trust purposes, and constitute a
relatively small portion of the granted lands within the city.
(2) The lands or interests in land lands
to be impressed with the trust have a monetary value equal to
or greater than the monetary value of the lands or interests in lands
to be exchanged out of the trust. If the lands or interests in lands
to be exchanged into the trust are insufficient to meet the
requirement of equal or greater monetary value, the commission may
consider a deposit of funds into the Land Bank Fund established
pursuant to Section 8610 of the Public Resources Code to be held
solely for acquisition of property, in an amount at least equal to
the difference in value, of for
purposes of making the funding finding
required by this paragraph. If the lands or interests in
lands to be exchanged into the trust exceed what is necessary to meet
the requirement of equal or greater monetary value, the lands not
needed to meet the requirement may be used to satisfy, in whole or in
part, the requirement of subdivision (e) of Section 9 of this act.
(3) No substantial interference with trust uses and purposes,
including public rights of navigation and fishing, will ensue by
virtue of the exchange.
(4) The lands or interests in lands impressed with the trust will
provide a significant benefit to the trust and are useful for the
particular trust purposes authorized by this act.
(5) The configuration of trust lands within the Pier 70 area, upon
completion of the exchange, consists solely of lands suitable to be
impressed with the trust.
(6) The appropriate state agencies have approved an environmental
site investigation and risk assessment of the Pier 70 area, and agree
on subsequent actions and development standards needed to ensure
appropriate management of potential risks through development of a
risk management plan, a remedial action plan, or comparable
regulatory documents specific to the conditions at the Pier 70 area,
and the port has provided adequate financial
assurances to ensure performance of any affirmative remedial actions
required by any such a plan or comparable
regulatory document; and sufficient liability measures that protect
the state will be in place upon completion of the exchange.
(7) The final layout of streets in the Pier 70 area shall provide
access to the trust lands and be consistent with the beneficial use
of the trust lands.
(8) Streets and other transportation facilities located on trust
lands shall be designed to be compatible with the trust and to serve
primarily trust purposes of access to shoreline improvements and
shoreline circulation rather than serving nontrust purposes.
(9) The San Francisco Port Commission and the city's board of
supervisors have approved the exchange after at least one public
hearing and have found, based on supporting documentation, that the
lands or interests in lands impressed with the trust will provide a
significant benefit to the trust and are useful for the trust
purposes authorized by this act .
(10) Any surveys or legal descriptions required for the parcels in
conjunction with the exchange shall be approved by the commission or
its executive officer.
(11) The exchange otherwise complies with the requirements of this
act.
(12) The exchange is consistent with and furthers the purpose of
the public trust, the Burton Act trust, and this act.
(13) The exchange is otherwise in the best interest of the
statewide public.
(c) The commission may impose additional conditions on the
exchange authorized by this act if the commission determines that
these the conditions are necessary to
protect the public trust. Those The
conditions may include a requirement that, following the completion
of remediation of submerged lands immediately adjacent to the Pier 70
area, or at any other a time that the
commission determines it is in the best interest
of the state, the port and commission shall reasonably cooperate in
taking all necessary actions to impress or confirm the public trust
and the Burton Act Trust trust on those
submerged lands or portions of these lands.
(d) For purposes of effectuating the exchange authorized by this
section, the commission is authorized to do all of the following:
(1) Receive and accept on behalf of the state any lands or
interest in lands conveyed to the state by the parties to the
exchange agreement, including lands that are now and will remain
subject to the public trust and the Burton Act trust.
(2) Convey by patent all of the right, title, and interest of the
state in lands that are to be free of the public trust upon
completion of an exchange of lands as authorized by this act and as
approved by the commission.
(3) Convey to the city by patent all of the right, title, and
interest of the state in lands that are to be subject to the public
trust and the Burton Act trust upon completion of an exchange of
lands as authorized by this act and as approved by the commission,
subject to the terms, conditions, and reservations as the commission
may determine are necessary to meet the requirements of this act.
(e) The exchange authorized by this section may include lands
outside of the Pier 70 area to the extent consistent with the
purposes of this act and approved by the commission. Lands outside
the Pier 70 area that are impressed with the public trust and the
Burton Act trust as part of an exchange authorized by this act shall
be deemed trust lands for purposes of this act.
(f) This act does not condition or otherwise limit the authority
of the state or the city to undertake a trust exchange or other
conveyance authorized by any other law.
SEC. 4. The precise boundaries of the lands to be taken out of the
trust and the lands to be put into the trust pursuant to the
exchange shall be determined by the port at a duly noticed
public hearing , subject to the approval of the commission. The
commission is authorized to settle by agreement with the port any
disputes as to the location of the mean high tide line in its last
natural state, the boundaries of tidelands conveyed into private
ownership pursuant to various statutes, and any other boundary lines
that the commission deems necessary to effectuate the exchange.
SEC. 5. All lands exchanged into the trust under this act shall be
held by the port subject to the public trust and the Burton Act
trust, and all lands exchanged out of the trust under this section
shall be free of the public trust and the Burton Act trust.
SEC. 6. (a) For so long as the port holds title to the trust
termination lands, those lands shall be held as assets of the public
trust, free of any public trust or Burton Act trust use or alienation
restrictions, but subject to the requirements of this section.
(b) The port may hold, use, conduct, operate, maintain, manage,
administer, regulate, improve, sell, lease, encumber, and control the
trust termination lands and any buildings and improvements on the
lands, for any purpose, whether or not consistent with the trust,
subject to the requirements of this section.
(c) Any revenues or other proceeds received by the port
from the trust termination lands trust termination
revenues shall be deposited in the harbor fund.
(d) The port shall receive fair market value for the lease or sale
of any trust termination lands or interest in the lands.
(e) The port may expend moneys in the harbor fund in connection
with the trust termination lands for the following limited purposes:
(1) The operation, maintenance, management, and administration of
those trust termination lands under port ownership and any buildings,
structures, or improvements on those lands if
the lands, provided, however, that any lease by
the port of trust termination lands with a term of 30 or more years
requires the port's lessee to undertake the operation, maintenance,
management, and administration of the lease premises.
(2) The preservation, rehabilitation, restoration, or
reconstruction of any historic building on trust termination lands in
a manner consistent with the Secretary's Standards, for so long as
the building remains in port ownership.
(3) Securing or servicing bond or other indebtedness incurred for
the improvement or construction of streets, utilities, or other
infrastructure or public facilities that serve the Pier 70 area and
are located on trust termination lands or on lands immediately
adjacent to the Pier 70 area. To pay any such indebtedness,
the port shall use all available trust termination
revenues and funds from other nontrust sources before using trust
land revenues.
(4) Planning, investigation, design, administrative review, and
entitlement work associated with the development of the Pier 70 area.
(f) The port shall provide, as a supplement to any statement of
expenditures and revenues that it is required by law to submit to the
commission, a separate accounting of all trust termination revenues
and other port revenues spent on the trust termination lands.
(g) At least 30 days before submitting a financial and land use
plan to the board of supervisors of the city for approval, the port
shall consult with commission staff and provide staff with an updated
analysis of the projected costs and revenues associated with the
development of the Pier 70 area. The updated analysis shall include
an estimate of the historic rehabilitation, infrastructure, or other
costs associated with trust termination lands that could be financed
with trust land revenues under subdivision (e), and a projection of
the trust termination revenues and funds from other nontrust sources
that will be generated by the project, together with supporting
documentation. If the projected trust termination revenues and funds
from other nontrust sources do not exceed the projected expenditure
of trust land revenues on trust termination lands, the port may not
use trust land revenues to secure any indebtedness as otherwise
authorized in paragraph (3) of subdivision (e).
(h) No later than the earlier of 35 years from the date of the
first expenditure of other port revenues on trust termination lands,
or final payment of the initial issuance of debt pursuant to
paragraph (3) of subdivision (e), the port shall report to the
commission the amount of other port revenues spent on the trust
termination lands and the benefit to the trust derived from trust
termination revenues and other nontrust sources. If the amount of
other port revenues spent on trust termination lands exceeds the
benefit to the trust from trust termination revenues and other
nontrust sources, the commission, following consultation with the
port, may require the port to take actions to remedy the shortfall as
may be in the best interest of the state, which actions may include,
without limitation, sale of some or all of the trust termination
lands and pursuit of refinancing options to reduce or eliminate
potential liabilities to the harbor fund.
(i) At the commission's request, the port shall submit to the
commission a report containing a general description of the uses to
which the trust lands have been placed or are proposed to be placed
during the period covered by the report.
SEC. 7. (a) Historic buildings situated on trust lands may be used
or leased for purposes that are not otherwise consistent with the
public trust or the Burton Act trust if all of the following
requirements conditions are met:
(1) The buildings are rehabilitated consistent with the Secretary'
s Standards.
(2) The uses or leases provide for public access to view the
interior and exterior historic architectural amenities and other
amenities that educate the public about the historic buildings and
their contribution to the maritime history of Pier 70.
(3) The executive officer of the commission makes a written
finding that trust uses available could not feasibly provide
sufficient funds for the restoration and preservation of the building
and that the uses or leases are part of an overall program that
further furthers trust purposes.
(b) If a building described in subdivision (a) is used for a
nontrust purpose, and is remodeled, renovated, or used in a manner
that is inconsistent with the Secretary's Standards, the building
shall be put to a trust use from the commencement of the inconsistent
remodel, renovation, or use, unless the continued nontrust use is
otherwise authorized under the Burton Act.
(c) If a building described in subdivision (a) is demolished,
subsequent use of the land and any replacement structure shall be
consistent with the public trust and the Burton Act trust.
(d) Notwithstanding subdivisions (a), (b), and (c), this section
does not limit the port's authority under Section 3 of the Burton
Act.
SEC. 8. The Legislature further finds and declares all of the
following:
(a) The Another purpose of this act
is also to facilitate the port's implementation of
its waterfront land use plan, its capital plan, and the host
agreement, subject to required environmental review.
(b) The San Francisco waterfront is a valuable public trust asset
of the state that provides special maritime, navigational,
recreational water-related recreational, habitat,
open-space , cultural, and historical benefits to the people of
the region and the state. Deferred maintenance since 1969 has caused
deteriorating conditions along the San Francisco waterfront, which
has limited the port's ability to fully implement its waterfront land
use plan.
(c) Pursuant to the San Francisco Administrative Code, the port
has developed a capital plan identifying projects necessary and
convenient to the improvement, operation, and conduct of the city's
waterfront. Projects in the capital plan include the following:
(1) Seismic and life-safety improvements to existing buildings and
other structures.
(2) Rehabilitation, restoration, and preservation of certain
historic piers and other historic structures.
(3) Structural repairs and improvements to piers, seawalls, and
wharves.
(4) Remediation of hazardous materials.
(5) Stormwater management facilities.
(6) Other utility infrastructure.
(7) Public access improvements, including improvements within and
around the pier sheds and the construction of waterfront plazas and
open space.
(d) The estimated cost to implement the port's capital plan is
approximately $2.17 billion in 2011 dollars. This amount
substantially exceeds the projected revenues of the port available
for these purposes.
(e) Providing additional mechanisms to finance capital
improvements to the port's facilities in furtherance of the capital
plan and waterfront land use plan is a matter of statewide importance
that will further the purposes of both the public trust and the
Burton Act trust.
(f) In February 2010, the BMW Oracle racing team, sailing under
the burgee of the Golden Gate Yacht Club, won the 33rd America's Cup
off the coast of Valencia, Spain. The America's Cup, which was first
awarded in 1851, is the oldest sporting trophy in sailing history. On
December 31, 2010, the team designated the city to host the AC34
events. The team has designated as the potential venue for AC34 the
San Francisco waterfront area generally between the Golden Gate
Bridge to the north and Pier 80 to the south. The team anticipates
holding the AC34 match in the San Francisco Bay in 2013, with
preliminary races worldwide beginning in 2011 and in the San
Francisco Bay in 2012. The city is conducting environmental review of
the AC34 match, preregattas pre-regattas
, and related activities.
(g) An economic impact study by the Bay Area Council's Economic
Institute and Beacon Economics released in July 2010 concludes that
hosting AC34 on the San Francisco Bay would generate nearly 9,000
jobs and $1.4 billion in direct spending in the San Francisco Bay
area and California, and nearly $1.9 billion nationwide. The study
reports that the America's Cup is the world's third largest sporting
competition after the Olympics and soccer's World Cup.
(h) Under the host agreement, the city has agreed to provide the
team with venues for regattas, team and competitor facilities,
sponsorship activities, spectator viewing, and ancillary activities,
subject to completion of environmental review and review and approval
of the planned facilities for the event. The venues are likely to be
located on water areas, piers and wharves, and waterfront and
landside property under port jurisdiction, generally from the Golden
Gate Bridge to Pier 80. If the AC34 project is approved
by the city , the Event Authority will make capital
improvements to certain venues, subject to the port's approval
and permits issued by various local and state agencies
, which will correct deteriorated facility conditions and
increase public access to, and use and enjoyment of, trust lands.
(i) In Senate Bill 815, the Legislature found that certain lands
within port jurisdiction, including seawall lot 330, have become
separated from the San Francisco Bay by the Embarcadero roadway, were
further cut off from the water by light rail tracks that were
constructed in the median of the roadway, have ceased to be useful
for the promotion of the public trust and the Burton Act trust except
for the production of revenue to support the purposes of the Burton
Act trust, are leased on an interim basis for commuter parking or are
vacant land, and constitute in the aggregate approximately 4 percent
of the lands granted to the city under the Burton Act, not including
lands currently subject to tidal action.
(j) Based on those findings, the Legislature concluded, inter
alia, that seawall lot 330 was filled and reclaimed as part of a
highly beneficial plan of harbor development, has ceased to be
tidelands, constitutes a relatively small portion of the tidelands
granted to the city, and is not necessary for public trust or Burton
Act trust purposes. Accordingly, the Legislature freed seawall lot
330 from the use requirements of the public trust and the Burton Act
trust through the year 2094. The Legislature further authorized the
port to enter into nontrust leases for seawall lot 330 for periods of
up to 75 years.
(k) The host agreement provides that if the AC34
project is approved, in consideration of the Event Authority's
capital investment in port facilities, the port will offer the Event
Authority certain long-term development rights on port lands equal in
value to the Event Authority's investment in the venues. The
long-term development rights include the sale of seawall lot 330,
following the removal of that parcel from the public trust. The host
agreement further provides that the sale of seawall lot 330 be for
fair market value, to be determined based on a prescribed appraisal
process and indexed annually at 3 percent until title is transferred.
(l) The Subject to the conditions of
subdivision (h) of Section 9 of this act, the Legislature
hereby finds and declares that, based on the findings made in this
act and the findings previously made in Senate Bill 815, all of the
conditions for terminating the public trust as set forth by the
California Supreme Court in City of Long Beach v. Mansell (1970) 3
Cal.3d 462 have been met as to seawall lot 330. The Legislature
further finds and declares that seawall lot 330 is not needed for any
trust use for the foreseeable future, that the residual value to the
trust of reserving seawall lot 330 for trust uses after the year
2094 is minimal, and that allowing the port to obtain a major
investment in waterfront improvements to address its critical capital
needs through the sale of seawall lot 330 would provide
substantially greater benefit to the trust. The Legislature further
finds and declares that placing the trust on lands not currently
subject to the trust that are situated on or adjacent to the San
Francisco Bay in the manner required by this act would provide
substantially greater benefit to the trust than would reserving
the seawall lot 330 for trust uses after the year
2094 , provided that the conditions in Section 9 of
this act are met .
SEC. 9. (a) Based on the foregoing findings
findings in Section 8 of this act , the Legislature hereby
declares seawall lot 330 to be free of the public trust and the
Burton Act trust in perpetuity, and further declares that seawall lot
330 has ceased to be tidelands for purposes of Section 3 of Article
X of the California Constitution , subject to the conditions of
subdivision (h) .
(b) All Subject to the
conditions described in subdivision (h), all of the state's
right, title , and interest in seawall lot 330 is hereby
granted, free of the public trust and the Burton Act trust, to the
port. The port shall hold seawall lot 330 as an asset of the trust,
free of any public trust or Burton Act trust use or alienation
restrictions, but subject to the requirement that all revenues or
other proceeds generated on seawall lot 330 be deposited in the
harbor fund and used for trust purposes. The port may, on behalf of
the state, convey seawall lot 330 , or any interest in
seawall lot 330 , to any person, free of the public trust
and the Burton Act trust, if the consideration received by the port
is equal to or greater than the fair market value of the land or
interest conveyed and is used by the port for trust purposes.
(c) The consideration received by the port, or any portion of the
consideration, may be in the form of improvements to a venue or to
other property within the port's jurisdiction and subject to the
trust, if, prior to the transfer of title, the commission has found
that either the improvement work has been completed or the purchaser
has secured the cost of completing the work by a performance bond,
cash deposit, letter of credit, promissory note secured by a deed of
trust on the property, or comparable security.
(d) Transfer of the fee interest in seawall lot 330 in accordance
with the terms of the host agreement as it existed on its effective
date, and based on the fair market value of seawall lot 330 as
determined by the port, shall be deemed to satisfy the requirements
of this section. However, as a condition of any transfer of the fee
interest, the commission shall review the appraisals used by the port
in determining the fair market value of seawall lot 330 for
conformance with the Uniform Standards of Professional Appraisal
Practice and approve the valuation methodologies used in the
appraisals. If the transfer of the fee interest in seawall lot 330
does not occur by June September 30,
2012, the port's determination of the fair market value of seawall
lot 330 shall be subject to further review and approval by the
commission.
(e) As a condition of any transfer of the fee interest in seawall
lot 330, the port shall be obligated to cause the trust to be
impressed upon lands situated on or adjacent to the San Francisco Bay
that have a total area equal to or greater than the area of seawall
lot 330 and have been determined by the commission to be useful for
trust purposes. The lands to be impressed with the trust shall be
identified by the port and approved by the commission prior to the
transfer of title the fee interest to
seawall lot 330, and the port shall cause the trust to be impressed
upon those lands within a reasonable period of time thereafter, as
determined by the commission. Prior to consideration by the
commission, the port shall hold at least one public hearing and shall
make a finding, based on supporting documentation, that the lands to
be impressed with the trust have a total area equal to or
greater than the area of seawall lot 330, and that the lands to be
impressed with the trust are useful for trust purposes.
(f) This Except as provided in subdivision
(g), this section supersedes the requirements of the Burton
Act and Senate Bill 815 to the extent that they apply to seawall lot
330.
(g) In the event that the AC34 match has not been held in the
city, as contemplated by the host agreement, by December 31, 2013, or
such later date as may be approved in writing by the commission, the
termination of the trust in seawall lot 330 as provided for in this
section shall be rescinded, and seawall lot 330 shall be subject to
the public trust, the Burton Act trust, and the terms and conditions
of Senate Bill 815. Any agreement authorized by this section for the
transfer of the fee interest in seawall lot 330 or any portion of
that interest, and any deed or other instrument effectuating such
transfer, shall provide that the port has the power to terminate the
interest of the transferee or of any subsequent transferee in the
property, and to reenter and repossess the property, as trustee, in
the event the trust termination is rescinded on the property pursuant
to this section. In the event the interest of the transferee in the
property is terminated, the port shall not be obligated to repay the
transferee in excess of the value of the consideration obtained by
the port for the transfer of the property. Subject to the foregoing
limitation, the port may repay the transferee in the form of rent
credits for a long-term lease of the property consistent with the
terms and conditions of Senate Bill 815.
SEC. 10. This act advances the statewide purpose of the public
trust and is in the best interests of the people of this state. An
agreement for the sale, lease, or exchange of port property or other
agreement made under this act is hereby found to be of statewide
significance and importance. Therefore, an ordinance, charter
provision, or other provision of local law that is inconsistent with
this act does not apply to that sale, lease, exchange, or other
agreement.
SEC. 11. (a) Notwithstanding any other law, the
requirements of subdivision (f) of Section 10310 of Title 14 of the
California Code of Regulations shall be deemed satisfied for any Pier
70 development project requiring a BCDC permit if the city submits
in a form acceptable to BCDC an approved development and disposition
agreement for the project and final city approval of all necessary
amendments to the city's general plan, planning code, and zoning
maps.
(b) This section does not affect BCDC's jurisdiction and authority
or its discretion to approve, disapprove, or condition a permit
application subject to this section in accordance with applicable
law.
SEC. 12. SEC. 11. A deed, patent,
agreement, or other instrument executed in furtherance of this act,
or an action of the state or port to approve the use, lease, or
conveyance of a state or port property subject to this act, or any
portion of that property, or to approve project agreements, grant
entitlements, or permits, or issue bonds or other indebtedness in
connection with the use and development of that property, shall be
conclusively presumed to be valid unless held to be invalid in an
appropriate proceeding in a court of competent jurisdiction to
determine the validity of the agreement commenced within 60 days
after the recording of the agreement.
SEC. 13. SEC. 12. (a) An action may
be brought under Chapter 4 (commencing with Section 760.010) of Title
10 of Part 2 of the Code of Civil Procedure to establish title to
any lands conveyed pursuant to this act or by the parties to any
agreement entered into pursuant to this act to confirm the validity
of the agreement. Notwithstanding Section 764.080 of the Code of
Civil Procedure, the statement of decision in the action shall
include a recitation of the underlying facts and a determination as
to whether the conveyance or agreement meets the requirements of this
act, Sections 3 and 4 of Article X of the California Constitution,
if applicable, and any other law applicable to the validity of the
agreement.
(b) For purposes of Section 764.080 of the Code of Civil Procedure
and unless otherwise agreed in writing, an agreement entered into
pursuant to this act shall be deemed to be entered into on the date
it is executed by the executive officer of the commission, who shall
be the last of the parties to sign prior to the signature of the
Governor. The effective date of the agreement shall be deemed to
be the date on which it is
executed by the Governor pursuant to Section 6107 of the Public
Resources Code.
(c) An action may be brought under Chapter 9 (commencing with
Section 860) of Title 10 of Part 2 of the Code of Civil Procedure to
determine the legality and validity of a deed, patent, agreement, or
other instrument executed in furtherance of or authorized by this
act, or an action of the port to use, lease, or convey any property,
or to approve project agreements, grant entitlements or permits, or
issue bonds or other indebtedness in connection with the use and
development of that property. Prior to the filing of an action, the
Attorney General and the executive officer of the commission shall be
provided written notice of the action and a copy of the complaint.
An action authorized by this subdivision may be combined with an
action authorized by subdivision (a).
SEC. 14. SEC. 13. If a provision of
this act, or its application to a person, property, or circumstance,
is held invalid by a court, the invalidity or inapplicability of that
provision shall not affect any other provision of this act or the
application of that provision to any other person, property, or
circumstance, and the remaining portions of this act shall continue
in full force and effect, unless enforcement of this act as so
modified by and in response to that invalidation would be grossly
inequitable under all of the circumstances, or would frustrate the
fundamental purposes of this act.
SEC. 15. SEC. 14. Except as
expressly provided herein, this act prevails over any inconsistent
provisions of the Burton Act or the Burton Act transfer agreement.
SEC. 15. The reasonable costs of any study or
investigation undertaken by or at the direction of the commission or
commission staff that is necessary to implement this act, including
reasonable reimbursement for time incurred by commission staff in
processing, investigating, and analyzing any information submitted
pursuant to this act, shall be borne by the port or the city
according to a budget to be agreed upon by commission staff and the
port or the city before any such study or investigation is begun.
SEC. 16. The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances applicable only to the lands
described in this act.
