BILL ANALYSIS AB 81 X3 Page 1 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. AB 81 X3 Page 2 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 AB 81 X3 Page 3 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 AB 81 X3 Page 4 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 : AB 81 X3 Page 5 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 AB 81 X3 Page 6 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, AB 81 X3 Page 7 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. AB 81 X3 Page 8 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 AB 81 X3 Page 9 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 AB 81 X3 Page 10 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