BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 418 (Ammiano)
Hearing Date: 08/25/2011 Amended: 07/01/2011
Consultant: Brendan McCarthy Policy Vote: NR&W 8-0
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BILL SUMMARY: AB 418 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.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Implementation of the Unknown costs, likely in the
hundredsGeneral
exchanges of thousands. Fully reimbursed.
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Under current law, the State Lands Commission is responsible for
the preservation of public trust lands for the public benefit.
Public trust lands are typically tide lands and submerged lands
and are held for the benefit of the public, for uses such as
navigation or recreation. The Commission may grant public trust
lands to local governments with legislative permission. Local
grantees are required to manage such public trust lands for the
public benefit. Current law also allows the Commission to
exchange public trust lands with local governments or private
entities, provided that certain conditions are met. For example,
statute requires that the exchange be in the best interests of
the state and that the exchange result in an equal value of new
public trust lands to be received in return for rights to the
existing public trust lands.
AB 418 authorizes exchanges of public trust lands in two areas
of San Francisco.
With regard to Pier 70, the bill authorizes the Commission to
enter into an exchange with the Port of San Francisco to
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facilitate development of the area. The exchange must meet the
following conditions: the lands are filled and so no longer fill
public trust uses, the new public trust lands will have a value
greater than or equal to the value of the existing public trust
lands (referred to as "trust termination lands"), there is
public access to the public trust lands, and the exchange is in
the best interest of the state. The Port would be allowed to
hold title to the trust termination lands and is required to
manage them as assets of the public trust. Any revenues
generated from those trust termination lands will be deposited
into a special fund managed by the Port for the benefit of the
public trust by the Port.
With regard to Seawall Lot 330, the bill terminates the public
trust obligations on the property. The bill requires an exchange
of public trust lands, such that other lands of equal acreage to
Seawall Lot 330 are impressed with the public trust. The bill
authorizes the Port to convey title of Seawall Lot 330 to any
entity, as long as the Port receives fair market value for the
property and the revenues from any land sale are used for trust
purposes.
Staff notes that SB 815 (Migden, 2007) found that Seawall Lot
330 is no longer useful to the public trust and authorized the
Port to use the property for non-public trust purposes through
2094. The Port has since signed a short-term lease to use the
property as a parking lot.
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.
Staff estimates that the Commission will incur costs in the
hundreds of thousands of dollars to negotiate and execute the
authorized land exchanges. The Commission has an agreement with
the Port to reimburse up to $30,000 in Commission costs for the
transfer of Pier 70. The Commission is currently in discussions
with the Port on an agreement to provide reimbursements for
Commission costs related to the Seawall Lot 330 transfer.
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The proposed transfer of Seawall Lot 330 is different from most
past exchanges of public trust lands. Unlike previous transfers,
the proposed transfer requires an equal acreage of replacement
lands to be placed under the public trust, rather than an equal
value of land. Seawall Lot 330 has an estimated development
value of about $25 million, but covers only two acres. If the
exchange required an equal value of land to be placed under the
public trust, it is likely that a much larger acreage would
ultimately be placed under the public trust. However, the bill
requires the Port to use all revenues derived from the sale of
Seawall Lot 330 for public trust purposes. According to the
Port, those funds will be used to facilitate further development
of Port lands, with the intention of combining development with
improved public use of the waterfront area of San Francisco.
Thus, committee staff believes that the unique provisions of the
proposed Seawall Lot 330 exchange should not reduce the total
public trust benefit to the public.
The proposed author's amendments add 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 Port, and make other
technical changes.