BILL NUMBER: AB 418 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 8, 2011
PASSED THE ASSEMBLY SEPTEMBER 8, 2011
AMENDED IN SENATE SEPTEMBER 2, 2011
AMENDED IN SENATE SEPTEMBER 1, 2011
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, 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.
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) "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.
(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.
(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.
(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.
(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.
(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 any of the following:
(1) Tax increment.
(2) General obligation bonds.
(3) Federal and state tax credits.
(4) The city's general fund.
(5) Special taxes.
(6) Concessions granted by the city in accordance with city
ordinances.
(7) Grants.
(8) Other sources of funds.
(q) "Other port revenues" means revenues to the port generated
from port lands other than trust termination lands.
(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.
(s) "Pier 70 area" means that certain real property situated in
the City and County of San Francisco and consisting of Assessor's
Block 4111, portions of Assessor's Blocks 3941, 4046, 4052, 4110 and
9900, portions of Twentieth Street, Michigan Street, and Illinois
Street, and portions of San Francisco Bay, 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 Mean High Tide Line of San
Francisco Bay in the Central Basin; thence running along said Mean
High Tide Line, 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 Mean High Tide Line 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 Tide Line
of San Francisco Bay; thence easterly, southeasterly, and southerly
along said Mean High Tide 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, said point being on the northeasterly boundary of Lot 7,
as said lot is shown and so designated on that certain Record of
Survey filed April 23, 2002, as Map T-74-94, Official Records of said
City and County; thence along said northeasterly boundary North 23
55' 19" West 56.47 feet, more or less, 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
continuing along said northeasterly boundary North 41 30' 21" West,
129.27 feet, more or less, 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 said 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 said
Illinois Street; thence North 3 10' 40" West, along said 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 said 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 62.39 acres of
land, more or less.
(t) "Port" means the Port of San Francisco, acting by and through
the San Francisco Port Commission.
(u) "Public trust" means the common law public trust for commerce,
navigation, and fisheries.
(v) "San Francisco waterfront" means those lands placed by the
city under the management, supervision, and control of the port.
(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 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 2.33
acres of land, more or less.
(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.
(y) "Senate Bill 815" means Chapter 660 of the Statutes of 2007,
as amended.
(z) "State" means the State of California.
(aa) "Team" means the Oracle Racing Team, successor to the BMW
Oracle Team, and its successors.
(ab) "Tidelands" means tide and submerged lands.
(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.
(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.
(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.
(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.
(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) 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, such as
tax increment, general obligation bonds, tax credits, the city's
general fund, and special taxes, 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 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, for purposes of
making the finding required by this paragraph.
(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;
the port has provided adequate financial assurances to ensure
performance of any affirmative remedial actions required by any such
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 the
conditions are necessary to protect the public trust. The conditions
may include a requirement that, following the completion of
remediation of submerged lands immediately adjacent to the Pier 70
area, or at a time that the commission determines 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 on those submerged lands or
portions of the 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 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 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, in addition 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
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
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) Another purpose of this act is 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,
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, 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) Subject to the conditions of subdivision (d) 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 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 findings in Section 8 of this act and
subject to subdivision (d) of this section, 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.
(b) Subject to subdivision (d), 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,
Burton Act trust, or Senate Bill 815 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.
(c) (1) The port may, on behalf of the state, convey the fee
interest in seawall lot 330 to any person free of the public trust,
the Burton Act trust, and the restrictions of Senate Bill 815, if the
consideration received by the port is equal to or greater than the
fair market value of the fee interest conveyed and is used by the
port for trust purposes.
(2) The consideration received by the port, or any portion of the
consideration, for the conveyance of the fee interest in seawall lot
330 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 conveyance, the commission has found that either the
improvement work has been completed or the conveyee 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.
(3) A conveyance 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 pursuant to the host agreement, if made
prior to September 30, 2012, shall be deemed to satisfy the
requirements of this section, provided that prior to any conveyance
of the fee interest in seawall lot 330, the commission shall review
the appraisals used by the port in determining the fair market value
of the fee interest in seawall lot 330 for conformance with the
Uniform Standards of Professional Appraisal Practice and approve the
valuation methodologies used in the appraisals. If the conveyance of
the fee interest in seawall lot 330 does not occur by September 30,
2012, the port's appraisal and determination of the fair market value
of the fee interest in seawall lot 330 shall be subject to further
review and approval by the commission.
(4) If the port elects to convey the fee interest in seawall lot
330, the port shall cause the trust to be impressed upon other 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 conveyance of the
fee interest in 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.
(d) (1) If 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 under this section shall
be rescinded, and seawall lot 330 shall be subject to the public
trust, the Burton Act trust, and Senate Bill 815.
(2) In any agreement authorized by this section for the conveyance
of the fee interest in seawall lot 330, and in any deed effectuating
such conveyance, the port shall reserve the power to terminate the
right, title, and interest of the fee owner in the property, and to
reenter and repossess seawall lot 330, as trustee, if the trust
termination on seawall lot 330 is rescinded pursuant to this
subdivision.
(3) If the port exercises its reserved power to terminate the
conveyance of the fee interest in seawall lot 330 under this
subdivision, and the port has agreed to reimburse the holder of the
fee interest in such event, the port may provide such reimbursement
in any form the port deems appropriate, which may include rent
credits for a lease of seawall lot 330 consistent with subdivision
(e); but in no event shall such reimbursement exceed the value of the
consideration that the port received for the conveyance of the fee
interest in seawall lot 330 in accordance with subdivision (c).
(e) (1) Notwithstanding anything to the contrary in this section,
the port may lease seawall lot 330 to any person, free of the public
trust, the Burton Act trust, and the restrictions of Senate Bill 815
if all of the following conditions are met:
(A) The term of the lease does not exceed 75 years.
(B) The consideration received by the port is equal to or greater
than the fair market value of the fee interest conveyed as determined
by the port.
(C) The consideration is used by the port for trust purposes.
(D) The lease provides that, at the sole discretion of the port,
any improvements on seawall lot 330 made by the lessee shall become
the property of the port upon termination of the lease without any
additional consideration to the lessee.
(2) Consideration to the port for the lease may be in the form of
improvements to a venue or to other property within the port's
jurisdiction in accordance with the host agreement. If the trust
termination on seawall lot 330 is rescinded pursuant to subdivision
(d), any lease that the port grants for seawall lot 330 after the
date of rescission shall be consistent with Senate Bill 815, except
that paragraph (1) of subdivision (b) of Section 4 of Senate Bill 815
shall be deemed satisfied if the consideration for the lease is in
the form of improvements to port property in accordance with the host
agreement. If the trust rescission occurs after the port has entered
into a lease for seawall lot 330, the port shall have no obligation
under Section 7 of Senate Bill 815 to remove structures, buildings,
or appurtenances made to seawall lot 330 in accordance with such
lease.
(f) Except as specifically provided in subdivisions (d) and (e),
this section supersedes the requirements of the Burton Act and Senate
Bill 815 to the extent that those requirements apply to seawall lot
330.
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 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. 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. 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. 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.