BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 418| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 418 Author: Ammiano (D) Amended: 8/30/11 in Senate Vote: 21 SENATE NATURAL RESOURCES AND WATER COMM : 8-0, 06/28/11 AYES: Pavley, La Malfa, Cannella, Evans, Fuller, Kehoe, Padilla, Wolk NO VOTE RECORDED: Simitian SENATE APPROPRIATIONS COMMITTEE : 9-0, 08/25/11 AYES: Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, Price, Runner, Steinberg ASSEMBLY FLOOR : 78-0, 05/19/11 - See last page for vote SUBJECT : Tidelands and submerged lands: City and County of San Francisco: Pier 70 SOURCE : Author DIGEST : This bill authorizes two exchanges of public trust lands in San Francisco and places a variety of conditions on the exchanges and the uses of the current public trust lands. ANALYSIS : 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 CONTINUED AB 418 Page 2 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. Regarding Pier 70, this bill: 1.Authorizes the State Lands Commission to approve an exchange of trust lands within Pier 70 to allow for the development of the area, subject to multiple conditions, including: The lands being exchanged out of the public trust and Burton Act trusts are filled so that they are no longer tidelands or navigable waterways; The lands being impressed with the trust have a monetary value equal to or greater than the monetary value of the lands being exchanged out of the trust; The lands being impressed with the trust will provide a significant benefit to the trust; There is public access to the trust lands and streets, and other transportation facilities will provide access to shoreline improvements; and The exchange is in the best interests of the statewide public. 1.Allows the Port to continue to hold title to lands that are released from the public trust (e.g. trust termination lands) so long as they are managed as assets of the public trust. Any revenues generated from these trust termination lands must be deposited into the Harbor Fund. The Harbor Fund may be used by the Port for the management of the trust termination lands subject to certain conditions. 2.Allows historic buildings on the trust lands to be leased for non-trust purposes so long as the buildings are rehabilitated to federal restoration standards, the leases allow for public access to view the historic architectural amenities of the buildings, and the Executive Officer of the Commission finds that the leases are part of an overall program that furthers trust CONTINUED AB 418 Page 3 purposes. 3.Makes numerous findings and declarations regarding the history of Pier 70, the future plans for the area, and the need for a trust exchange. Regarding Seawall Lot 330, this bill: 1.Terminates the public trust on Seawall Lot 330 in perpetuity. 2.Allows the Port to convey the title and interest of Seawall Lot 330 to any person so long as the Port receives at least fair market value. Revenues or considerations from the sale must be used for trust purposes. Considerations may be in the form of improvements to other trust lands within the Port's jurisdiction. 3.Requires the Commission to review the appraisals used to determine the fair market value of the lot. 4.Requires the Port, as a condition of selling the fee title to Seawall Lot 330, to impress new lands with the public trust. The new lands must be within or adjacent to the San Francisco Bay, have a total area equal to or greater than the area of Seawall Lot 330, and be useful for trust purposes as determined by the Commission. 5.Makes numerous findings and declarations regarding extensive needed capital improvements along the waterfront, the insufficient revenues from the trust lands to fund such improvements, the host agreement for the 34th America's Cup, the economic impacts of hosting the 34th America's Cup, and the current underutilization of Seawall Lot 330. 6.Delineates definitions, including the exact delineations of the properties to be exchanged, require additional reporting by the Port to the Commission on the proposed development of Pier 70 and Seawall Lot 330, conditions the exchange of Seawall Lot 330 on the America's Cup race actually occurring in San Francisco, require full reimbursement of State Land's Commission costs by the CONTINUED AB 418 Page 4 Port, and make other technical changes. Note: The purpose of the proposed land exchanges is to facilitate development on lands that, while they are under the public trust, are isolated from the San Francisco Bay or have limited benefit to the public in their current location and configuration. In part, the development of these parcels will allow for improvements necessary for San Francisco to host the America's Cup in 2013. Background Section 3 of Article X of the California Constitution prohibits all tidelands within two miles of any incorporated city, city and county, or town from being granted or sold to private parties unless the Legislature finds that these tidelands are not used or necessary for navigation. The Legislature may impose conditions on these sales and grants to protect the public interest. Chapter 1333 of the Statutes of 1968, otherwise known as the Burton Act, allowed the granting of the Port of San Francisco from the state to the City and County of San Francisco. The Act allows San Francisco to operate, manage, regulate, and improve the granted lands in a manner consistent with the public trust. Allowable activities include: activities for the promotion and accommodation of commerce and navigation; and the construction, maintenance, and operation of public buildings, parks, and public educational and recreational facilities. The Burton Act also allows San Francisco to lease portions of the granted lands for periods up to 66 years for uses that are consistent with the public trust and the state's commerce and navigation needs. Revenues from the leases and other uses of the granted lands are deposited into the Harbor Trust Fund (Harbor Fund) and may only be used for the management of San Francisco's granted trust lands. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: CONTINUED AB 418 Page 5 Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Implementation of the Unknown costs, likely in the hundreds General exchanges of thousands. Fully reimbursed. SUPPORT : (Verified 8/29/11) City and County of San Francisco Dogpatch Neighborhood Association GreenTrustSF- Central Waterfront Neighborhood Parks Council Northern California District Council of the International Longshore and Warehouse Union Port of San Francisco Potrero Boosters Neighborhood Association San Francisco Architectural Heritage San Francisco Building and Construction Trades Council San Francisco Chamber of Commerce San Francisco Planning and Urban Research Association ARGUMENTS IN SUPPORT : According to the Port of San Francisco, in support of the bill, "A trust realignment will make both trust and non-trust parcels more valuable by enabling major economic development and waterfront restoration and providing for the preservation of ongoing ship repair and historic resources, while creating a vibrant and authentic historic district that will activate new waterfront open spaces and development? Market potential and community consensus suggest that cultural, institutional, office, biotech, other commercial, and perhaps a limited amount of residential uses, most of which are not consistent with the public trust, should be developed at Pier 70 in areas that are least suitable for public trust uses, as reflected in the Master Plan. Higher land value uses are essential to generating the revenues needed to realize Pier 70's potential and the Port's overarching goals. Realigning the land use regulations is imperative to realizing the vision of a revitalized Pier 70." CONTINUED AB 418 Page 6 ASSEMBLY FLOOR : 78-0, 05/19/11 AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Alejo, Gorell CTW:nl 8/30/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED