BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 81 X3
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          Date of Hearing:   September 9, 2009


           ASSEMBLY COMMITTEE ON ARTS, ENTERTAINMENT, SPORTS, TOURISM, AND  
                                   INTERNET MEDIA
                                  Mike Davis, Chair

                 AB 81 X3 (Hall) - As Introduced:  September 9, 2009

           
          SUBJECT  :   Land use:  City of Industry:  stadium complex

           SUMMARY  :   Exempts from the California Environmental Quality Act  
          (CEQA) activities associated with development and operation of a  
          stadium complex in the City of Industry, as specified, and  
          further exempts actions taken by the City of Industry from any  
          legal requirements concerning a general plan, or consistency  
          with a general plan, as specified.    Specifically,  this bill  :    


          1)Exempts the City of Industry's actions regarding a stadium  
            complex and associated development which was submitted on or  
            before January 31, 2009, from any legal requirement concerning  
            the content of a general plan or consistency with a general  
            plan, and declares that those requirements shall not result in  
            the invalidation of those approvals and decisions.  Further  
            declares that a consistency determination is not required by  
            the City of Industry for any decision with respect to the  
            project.

          2)Exempts from CEQA a stadium complex and associated development  
            in the same project or approval which was submitted on or  
            before January 31, 2009 to City of Industry, as specified. 

          3)Requires, notwithstanding the CEQA exemption, that the stadium  
            complex and associated development must comply with those  
            mitigation measures that are contained in a mitigation  
            monitoring and reporting program adopted by the City of  
            Industry in connection with the stadium complex and associated  
            development.  (See Comment 7 below for discussion.) 

          4)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.









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          5)Provides that the provisions of the bill would apply  
            prospectively and retroactively to any litigation pending at  
            the effective date of this act.

          6)Makes various legislative findings and declarations.

           EXISTING LAW  : 

          1)CEQA requires lead agencies with the principal responsibility  
            for carrying out or approving a proposed project to prepare a  
            negative declaration, mitigated declaration, or environmental  
            impact report (EIR) for this action, unless the project is  
            exempt from CEQA (CEQA includes various statutory exemptions,  
            as well as categorical exemptions in the CEQA guidelines).   
            [AB 889 (Knox), Chapter 154, Statutes of 1972, as amended]

          2)Requires each planning agency to prepare and the legislative  
            body of each county and city adopt a comprehensive, long-term  
            general plan for the physical development of the county or  
            city, and of any land outside its boundaries which in the  
            planning agency's judgment bears relation to its planning.  

          3)Requires that the general plan consist of a statement of  
            development policies and shall include a diagram or diagrams  
            and text setting forth objectives, principles, standards, and  
            plan proposals, as specified. (See Comment below for greater  
            detail.)


          4)States that in construing the provisions of the article  
            regarding the authority for and scope of general plans, the  
            Legislature intends that the general plan and elements and  
            parts thereof comprise an integrated, internally consistent  
            and compatible statement of policies for the adopting agency. 

          5)States that the Legislature finds that the diversity of the  
            state's communities and their residents requires planning  
            agencies and legislative bodies to implement this article in  
            ways that accommodate local conditions and circumstances,  
            while meeting its minimum requirements. 


          6)States that the general plan shall address each of the  
            required elements to the extent that the subject of the  
            element exists in the planning area. The degree of specificity  








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            and level of detail of the discussion of each element shall  
            reflect local conditions and circumstances. 


           FISCAL EFFECT  :  Unknown

           COMMENTS  :   
           
          1)Proposed stadium project  :  Recent news reports have detailed  
            the effort to move a City of Industry National Football League  
            (NFL) stadium effort forward, select excerpts of which follow:  


            Billionaire developer and Majestic Realty Co. owner Edward  
            Roski, Jr. hopes to break ground next year on the $800 million  
            stadium and retail complex on 600 acres of hills northwest of  
            the 57 and 60 freeways.  Officials say the stadium would seat  
            75,000 people, have 175 suites and create 6,000 jobs.  ?  The  
            proposal is seen as the best hope to bring football back to  
            Southern California after bids from Anaheim, Los Angeles,  
            Carson, Pasadena and others have fizzled.

            Since both the Raiders and the Rams left the region after the  
            1994 season, communities across the Southland have tried to  
            rally support for NFL stadiums within their boundaries, to  
            little avail.  Anaheim and Carson considered but ultimately  
            abandoned the idea of building stadiums.  Pasadena's Rose Bowl  
            and the Los Angeles Memorial Coliseum both were ultimately  
            rejected as potential sites, either because they were  
            civically unpopular (Pasadena) or structurally unsuitable (the  
            Coliseum).

            The NFL is not planning on expanding.  However, the developers  
            of the new stadium have claimed on their website that their  
            tenant will be an existing team that needs to move because  
            they cannot build a new stadium or financially they are not  
            successful in their current market.  The two former Los  
            Angeles teams, the St. Louis Rams and Oakland Raiders, have  
            both been rumored to be considering a return to Southern  
            California.  Other teams mentioned include the San Francisco  
            49ers, San Diego Chargers (which also once played in Los  
            Angeles, in 1960), Minnesota Vikings, Jacksonville Jaguars and  
            Buffalo Bills.

           2)Sponsors statement of support for legislation  :  According to  








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            information provided by the bill's sponsor, Majestic Reality,  
            the proposed stadium developer, "(I)n 2004, the City of  
            Industry approved the Industry Business Center project, a 4.8  
            million square-foot industrial, office, and, retail  
            development.  The City prepared and certified a full EIR for  
            the 2004 project.  There were no legal challenges to the 2004  
            EIR or the City of Industry's approval of the 2004 Industry  
            Business Center project.

            "As approved by the City of Industry, use of the NFL stadium  
            is restricted to no more than 40 events a year.  The project  
            is environmentally state-of-the-art.  It includes extensive  
            onsite use of photovoltaics, a requirement to meet LEED  
            standards, and a transit plan including shuttles to encourage  
            alternative transportation.  With the reduction in intensity  
            at the site, from the previously approved 4.8 million square  
            feet to 2.9 million square feet (not including the NFL  
            stadium), average daily traffic generated from the site will  
            be far less.  Parking for the NFL stadium is provided fully on  
            site. 

            "The project has widespread support from labor, business, and  
            local government leaders - many of whom wrote letters or  
            testified in favor of the project.  The 2008 Industry Business  
            Center will create 12,000 construction jobs and 6,700  
            permanent jobs. Construction of the NFL stadium will be  
            through a project labor agreement.  The 2008 Industry Business  
            Center will create over $760 million annually in economic  
            activity."
           
            Finally, the author adds, "(U)nlike most CEQA exemptions that  
            allow no environmental review to be conducted and no  
            mitigation to be adopted, this proposed legislation requires  
            Industry to continue to impose the mitigation it already  
            adopted through the CEQA process.  In other words, if the  
            proposed legislation is adopted, the project will still be a  
            LEED project, will still include extensive onsite use of  
            photovoltaics, and will be subject to the other mitigation the  
            City of Industry approved.  But it also provides that the City  
            of Industry's CEQA review for the project cannot be challenged  
            and that the project approvals are not subject to further CEQA  
            review."  

          3)Pending lawsuit is impetus for legislation  :









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            Walnut City filed suit against the City of Industry stadium  
            project, challenging the validity of the CEQA EIR, along with  
            twelve additional causes of action, including the adequacy of  
            the City of Industry's state mandated master plan, in part  
            saying, 
           
               The City of Walnut filed a lawsuit this morning against  
               the City of Industry, challenging its February 26  
               approval of the NFL Stadium complex without an adequate  
               EIR.  As approved, the project will exacerbate  
               unhealthful air quality and traffic congestion in the  
               region while diminishing the quality of life in Walnut.  
                ?  As indicated in Walnut's many comment letters to  
               the City of Industry, the project as approved would  
               result in significant environmental and economic  
               consequences to the City of Walnut.  While the project  
               proponent suggests economic growth in the region,  
               although debatable based on published literature,  
               neighboring cities such as Walnut and Diamond Bar would  
               realize significant traffic impacts, noise, air and  
               light pollution, and other impacts that would  
               jeopardize the health, safety and welfare of its  
               residents.

            In response, the City of Industry has asserted, "In 2008,  
            Majestic Realty proposed to revise the 2004 Industry Business  
            Center project by reducing the intensity from 4.8 million  
            square feet to 2.9 million square feet and an NFL stadium.   
            The 2008 revised plan of development for the Industry Business  
            Center includes an NFL stadium and office, retail, restaurant,  
            and medical office uses along with team offices and a practice  
            facility.  The City of Industry prepared a supplemental EIR -  
            a nearly foot-thick document (not counting the lengthy  
            technical appendices) - for the 2008 revised plan of  
            development.

            "The project did not amend the general plan and the City of  
            Industry found that that the project is consistent with its  
            existing general plan.  But Walnut is citing an obscure line  
            of cases that could be read to allow it to challenge the  
            adequacy of the City of Industry's general plan - even though  
            the project did not require a general plan amendment - to try  
            to force the City of Industry to amend its general plan for  
            the entire city before it can approve this project.  The  
            second part of the proposed legislation would exempt the  








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            project from the requirement that the City of Industry's  
            entire general plan be adequate before it can approve this  
            project."
           
          4)Background - CEQA  :  CEQA provides a process for evaluating the  
            environmental effects of applicable projects undertaken or  
            approved by public agencies.  If a project is not exempt from  
            CEQA, an initial study is prepared to determine whether the  
            project may have a significant effect on the environment.  If  
            the initial study shows that there would not be a significant  
            effect on the environment, the lead agency must prepare a  
            negative declaration.  If the initial study shows that the  
            project may have a significant effect on the environment, the  
            lead agency must prepare an EIR.

            Generally, an EIR must accurately describe the proposed  
            project, identify and analyze each significant environmental  
            impact expected to result from the proposed project, identify  
            mitigation measures to reduce those impacts to the extent  
            feasible, and evaluate a range of reasonable alternatives to  
            the proposed project.  Prior to approving any project that has  
            received environmental review; an agency must make certain  
            findings.  If mitigation measures are required or incorporated  
            into a project, the agency must adopt a reporting or  
            monitoring program to ensure compliance with those measures.

            If a mitigation measure would cause one or more significant  
            effects in addition to those that would be caused by the  
            proposed project, the effects of the mitigation measure must  
            be discussed but in less detail than the significant effects  
            of the proposed project.

           5)Background - City and County General Plans  :  The Legislature  
            first authorized counties and cities to adopt master plans in  
            1927.  Since 1937, state law has mandated every county and  
            city to adopt a master plan.  Starting in 1955, the  
            Legislature began requiring the local plans to contain  
            mandatory elements.  Now called general plans, these  
            long-range comprehensive documents must contain seven  
            mandatory elements: land use, circulation, housing,  
            conservation, open space, noise, and safety.

            Existing law requires that the general plan consist of a  
            statement of development policies and shall include a diagram  
            or diagrams and text setting forth objectives, principles,  








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            standards, and plan proposals. The plan shall include the  
            following elements:  
           
             a)   A land use element that designates the proposed general  
               distribution and general location and extent of the uses of  
               the land for housing, business, industry, open space,  
               including agriculture, natural resources, recreation, and  
               enjoyment of scenic beauty, education, public buildings and  
               grounds, solid and liquid waste disposal facilities, and  
               other categories of public and private uses of land. The  
               location and designation of the extent of the uses of the  
               land for public and private uses shall consider the  
               identification of land and natural resources.  The land use  
               element shall include a statement of the standards of  
               population density and building intensity recommended for  
               the various districts and other territory covered by the  
               plan. The land use element shall identify and annually  
               review those areas covered by the plan that are subject to  
               flooding identified by flood plain mapping prepared by the  
               Federal Emergency Management Agency (FEMA) or the  
               Department of Water Resources.

             b)   A circulation element consisting of the general location  
               and extent of existing and proposed major thoroughfares,  
               transportation routes, terminals, and military airports and  
               ports, and other local public utilities and facilities, all  
               correlated with the land use element of the plan.

             c)   A conservation element for the conservation,  
               development, and utilization of natural resources including  
               water and its hydraulic force, forests, soils, rivers and  
               other waters, harbors, fisheries, wildlife, minerals, and  
               other natural resources.

             d)   A safety element for the protection of the community  
               from any unreasonable risks associated with the effects of  
               seismic and geological hazards, flooding, and wild land and  
               urban fires.

             e)   A housing element as prescribed in statute.

             f)   An open-space element as prescribed in statute.

             g)   A noise element that shall identify and appraise noise  
               problems in the community. 








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           6)Opposition: respect CEQA and judicial process  :  On September  
            8, 2009, the Los Angeles County Board of Supervisors voted to  
            oppose any legislation that would grant the proposed City of  
            Industry Football Stadium and Entertainment complex an  
            exemption from the  requirements of CEQA, saying, "(W)hile  
            there are many reasons to support the development of a new NFL  
            Football stadium in Los Angeles County, there are just as many  
            reasons to ensure that the project complies with the same  
            environmental regulations that govern virtually all projects  
            in California.   Hospitals, police stations, freeways and all  
            sorts of valuable projects manage to be built without the  
            necessity of CEQA exemptions. 

            "CEQA, enacted by the Legislature in 1970, is the primary  
            state law that exists both to inform the public about  
            significant environmental effects of proposed projects and to  
            identify ways that environmental impacts can be mitigated once  
            identified.  The Legislature has historically been very  
            reluctant to grant any project an exemption.  If such an  
            exemption were warranted, it should have the benefit of  
            thorough public review and analysis.  Clearly, such a tough  
            standard cannot be achieved in the waning few days of the  
            legislative session."

            According to the bill's sponsors, all CEQA requirements have  
            been complied with, citing both the 2004 EIR and subsequent  
            revision submitted in 2008.  The Los Angeles County Federation  
            of Labor adds in support of this measure, "There are those who  
            characterize our efforts as undermining California's  
            environmental standards.  We firmly disagree.  This project -  
            one that has undergone and completed 2 EIRs and has sought to  
            mitigate all known environmental impacts - will provide for  
            the first ever "Green" Stadium in the nation.  Such a project  
            is a far cry from other more controversial and troubling  
            projects and to characterize it as such is simply incorrect.   
            We have and will continue the fight for a clean environment in  
            our communities."

            Walnut City also opposes the CEQA exemption.  In addition,  
            Walnut opposes, "circumventing the courts for the sake of  
            building a stadium and entertainment complex, because it  
            eliminates faith in the judicial branch's ability to reliably  
            rule on environmental laws as Majestic/City of Industry have  
            needlessly sought delays in hearings while appealing to the  








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            legislature to subsidize/approve the stadium and entertainment  
            complex project."

           7)CEQA EIR mitigation measures must be complied with under  
            legislation  :

            This bill would exempt from CEQA any activity incidental to  
            the development, operation, or maintenance of a stadium  
            complex and associated development if specified requirements  
            are met.  However, the bill would require the city to require  
            the stadium complex and associated development to comply with  
            those mitigation measures that are contained in a mitigation  
            monitoring and reporting program that is adopted by the City  
            of Industry in connection with the stadium complex and  
            associated development.

            These mitigation requirements are as follows:

             a)   The supplemental environmental impact report for the  
               stadium complex and associated development was prepared and  
               certified by the City of Industry within five years before  
               the effective date of the act adding this section.

             b)   A Metrolink station is located, as of the effective date  
               of the act adding this section, within one-half mile from  
               the project site for the stadium complex and associated  
               development.

             c)   The supplemental environmental impact report for the  
               stadium complex and associated development included an  
               analysis of greenhouse gas emissions.

             d)   The conditions of approval approved by the City of  
               Industry, or the mitigation measures in the supplemental  
               environmental impact report for the stadium complex and  
               associated development, restricts the number of events that  
               may be held in the stadium complex to not more than 45  
               events in each calendar year.

           1)Special law justification  :  This bill 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 the stadium complex and  
            associated development will provide unique and urgently needed  
            economic stimulus to the Los Angeles, Orange, Riverside, and  








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            San Bernardino Counties, and including an estimated 18,700  
            jobs, seven hundred sixty million dollars ($760,000,000) in  
            annual economic activity, and twenty-one million dollars  
            ($21,000,000) in estimated annual tax revenues.
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Majestic Realty (Sponsor)
          Association for Los Angeles Deputy Sheriffs 
          California State Association of Electrical Workers
          California State Pipe Trades Council
          Los Angeles Chamber of Commerce
          Los Angeles County Federation of Labor
          Los Angeles County Firefighters, Local 1014
          Western States Council of Sheet Metal Workers

          Opposition 
           
          American Planning Association
          County of Los Angeles
          Walnut City


           Analysis Prepared by  :    Dana Mitchell / A.,E.,S.,T. & I.M. /  
          (916) 319-3450