BILL ANALYSIS                                                                                                                                                                                                    

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          Date of Hearing:  May 1, 2013

                           K.H. "Katcho" Achadjian, Chair
                     AB 1273 (Ting) - As Amended:  April 24, 2013
          SUBJECT  :  Tidelands and submerged lands:  City and County of San  
          Francisco: Pier 30-32: multipurpose venue.

           SUMMARY  :  Authorizes the Port of San Francisco to approve a  
          mixed-use development on the San Francisco waterfront at Pier  
          30-32 that includes a multipurpose venue for events and public  
          assembly, if certain conditions are met.  Specifically,  this  
          bill  :  

          1)Establishes the Pier 30-32 Revitalization Act.

          2)Amends Section 5 of Chapter 489 of Statutes of 2001, as  
            amended by Section 2 of Chapter 68 of the Statutes of 2003, as  

             a)   States that the Legislature, in the exercise of its  
               retained power as trustee of the public trust, and in view  
               of the unique circumstances existing at Pier 30-32 on the  
               San Francisco waterfront and the considerable statewide  
               public benefit and promotion of  the public trust that will  
               be brought about by the preservation, improvement, and  
               modernization of the pier related to the construction of a  
               new multipurpose venue for events and public assembly,  
               establishment of maritime uses, improved public access,  
               public use and enjoyment of the site, establishment of  
               venue-supporting or trust retail uses on the side, and  
               additional public trust benefits, hereby authorizes the  
               Port to approve a mixed-use development on the San  
               Francisco waterfront at Pier 30-32 that includes a  
               multipurpose venue for events and public assembly if the  
               Port finds that all of the following conditions are met:

               i)     The mixed-use development is designed to attract  
                 people to the waterfront, increase public enjoyment of  
                 the San Francisco Bay, encourage public trust activities,  
                 and enhance public use of trust assets and resources on  
                 the waterfront;

               ii)    The mixed-use development is designed to provide  


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                 multiple significant views of the Bay Bridge and the San  
                 Francisco Bay from a variety of elevations and vantage  
                 points, including significant views of the Bay Bridge and  
                 the San Francisco Bay from the interior concourses of the  
                 multipurpose venue and views of the Bay Bridge from  
                 certain seating areas within the multipurpose venue;

               iii)   The multipurpose venue facility is located to  
                 minimize interference with public views of San Francisco  
                 Bay to the extent feasible;

               iv)    The multipurpose venue facility provides free public  
                 access to patrons and nonpatrons alike to exterior  
                 portions of the building from which the public can view  
                 the San Francisco Bay, subject to reasonable limitations  
                 based on security.  In addition, to encourage the public  
                 to come to the bay's edge, the design of the multipurpose  
                 venue shall provide significant free public views of the  
                 inside of the multipurpose venue from the outside, and  
                 the operator of the multipurpose venue shall be required  
                 to allow the public to view the inside of the  
                 multipurpose venue from the outside during events  
                 whenever feasible;

               v)     The mixed-use development is designed to achieve and  
                 enhance maximum feasible public access to and minimum  
                 fill in the bay in a manner that is consistent, as  
                 determined by Bay Conservation and Development Commission  
                 in its separate permit process, with the Special Area  
                 Plan, the McAteer-Petris Act, and the Bay Plan;

               vi)    The mixed-use development includes significant  
                 public plazas open to the public on a substantially  
                 permanent basis that can be accessed via public  
                 pedestrian promenades at the site that encourage public  
                 use of the site and provide a variety of views of the San  
                 Francisco Bay and the San Francisco cityscape; 

               vii)   The mixed-use development includes continuous public  
                 access around the perimeter of Pier 30-32 open to the  
                 public year round, with limited exceptions for temporary  
                 safety-, security- and maritime-based interruptions, and  
                 includes an interpretive program to enhance the public's  
                 enjoyment of the site;


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               viii)  The mixed-use development includes a significant and  
                 appropriate maritime program, which shall be consistent  
                 with the Special Area Plan and shall include, but is not  
                 limited to:

                  (1)       A city fire station and berthing facilities  
                    for city fire boats, or in lieu thereof, one or more  
                    other maritime uses on the north side of Pier 30-32;

                  (2)       Facilities for berthing at the east end of  
                    Pier 30-32, including facilities that can accommodate  
                    periodic use by cruise or other deep draft vessels, or  
                    other facilities that promote the deep water berth at  
                    Pier 30-32

                  (3)       Facilities that enable direct public access to  
                    the water by human-powered vessels or swimmers, if  
                    feasible, on the south side of Pier 30-32, or  
                    water-oriented recreational uses facing the Brannan  
                    Street Wharf open water basin; and,

                  (4)       Water-transit docking or berthing facilities  
                    for water taxis, ferries, or both.

               ix)    Any nonmaritime office space on Pier 30-32 is  
                 limited to 70,000 square feet, and any nonmaritime office  
                 space provided on Pier 30-32 is for use only by the  
                 primary tenants of the multipurpose venue for events and  
                 public assembly, the venue, supporting or trust retail  
                 uses on Pier 30-32, and the operation and management of  
                 the open space and other public facilities on Pier 30-32;

               x)     All retail venues on Pier 30-32 are limited to  
                 venue-supporting or trust-retail uses;

               xi)    Any parking included on Pier 30-32 is limited to 500  
                 spaces, located under actives uses on Pier 30-32,  
                 substantially screened from public view, and designed so  
                 that ingress and egress avoids material interference with  
                 pedestrian, wheelchair, and bicycle traffic along Herb  
                 Caen Way and material interference with the public's  
                 access to and use of the open space on the surface of the  
                 pier.  Parking shall be designed to accommodate visitors  
                 to the site and shall not be reserved for residential  


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               xii)   Public trust-consistent events, uses, and  
                 programming are offered regularly at the site of the  
                 mixed-use development.  The site shall be made available  
                 to the Port or its designee for those events on at least  
                 15 days per year, including at least three days on which  
                 the multipurpose venue shall be made available to the  
                 Port or its designee for those events.  These events  
                 shall include free and low-cost visitor-serving events

               xiii)  A public community room is available at the site for  
                 free or low-cost use by members of the public statewide,  
                 without preference to local residents or organizations;

               xiv)   The development of the site is required to be  
                 consistent with a plan to address anticipated sea-level  
                 rise through year 2050, which shall include enforceable  
                 strategies incorporating an adaptive management approach  
                 to sea-level rise for the duration of the ground lease  

               xv)    The development approved for Seawall Lot 330  
                 includes a hotel or other visitor-serving uses that the  
                 Port finds will materially enhance public trust uses on  
                 Pier 30-32 and the San Francisco waterfront;

               xvi)   If a multipurpose venue for events and public  
                 assembly is approved and constructed on Pier 30-32, the  
                 Port shall submit and present at a properly noticed  
                 public State Lands Commission meeting a trust program  
                 report to the State Lands Commission, no later than five  
                 years from the date of the opening of the multipurpose  
                 venue, and every five years thereafter through the term  
                 of the ground lease for the multipurpose venue, that  
                 contains all of the following information:

                  (1)       A list and description of the trust-related  
                    events and programming that have occurred at the site  
                    of the mixed-use development and in the multipurpose  
                    venue over the preceding five-year period, including  
                    the dates on which the events occurred or the  
                    multipurpose venue was made available for those  
                    events, and identifying any free and low-cost  
                    visitor-serving events;


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                  (2)       A description of the efforts made by the Port,  
                    its tenants, and subtenants to publicize the  
                    availability of Pier 30-32, including the multipurpose  
                    venue, for trust-related events and other efforts  
                    undertaken to solicit such events;

                  (3)       A description of the maritime program on those  
                    portions of Pier 30-32 within the purview of the Port  
                    or the City, including a list of the facilities  
                    constructed, identification of any tenants, licensees,  
                    or other operators of the maritime facilities, and a  
                    description of the nature and frequency of the  
                    maritime use;

                  (4)       A description of the tenants and use of the  
                    nonmaritime office space and the use of the public  
                    community room on Pier 30-32; and,

                  (5)       Any other information specifically requested  
                    by the State Lands Commission that pertains to the  
                    City or Port program of trust uses for Pier 30-32 and  
                    that is reasonable obtainable by the City or Port.

               xvii)  The Port, and the City, if applicable, shall work  
                 cooperatively with the executive officer of the State  
                 Lands Commission to develop an implementation plan if the  
                 executive officer, upon review of the trust program  
                 report, determines both of the following:

                  (1)       That Pier 30-32 is not being used for at least  
                    13 trust-related events annually at the site as a  
                    whole or is not being used for at least three  
                    trust-related events annually at the multipurpose  
                    venue, as specified; or that the City or the Port has  
                    not implemented the maritime program for Pier 30-32  
                    for its intended purpose; and,

                  (2)       That the Port, or the City, as applicable has  
                    not taken effective action to achieve the objectives  
                    specified in (1) above.

               xviii) The executive officer of the State Lands Commission  
                 shall provide written notice to the Port and the City of  
                 a determination requiring the development of an  
                 implementation plan, including the bases for that  


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                 determination.  An implementation plan shall ensure that  
                 the objectives are met for the next five-year reporting  
                 period and shall be consistent with the terms and  
                 conditions set forth in governmental approvals for  
                 development of the project and in then-existing leases  
                 and other contracts affecting use of the site, including  
                 rights of leasehold mortgagees under those contracts.  

               xix)   In conjunction with the Port's report, the tenant of  
                 the multipurpose venue shall submit and, if requested by  
                 the executive officer of the State Lands Commission,  
                 present at a property noticed Commission meeting, an  
                 informational report to the Commission describing how the  
                 event program at the multipurpose venue is meeting the  
                 objectives for use of that venue, as specified.

             b)   Deletes requirements relating to the cruise ship  
               terminal and the Brannan Street Wharf.

          3)Amends Section 4 of Chapter 489 of the Statutes of 2001, as  

             a)   Adds findings and declarations to this section that  
               declares unique circumstances at Pier 30-32 on the San  
               Francisco waterfront and that the act sets no precedent for  
               any other location or project in the state, including on  
               the San Francisco waterfront or in San Francisco Bay, as  

               i)     The pier is an approximately 13-acre facility  
                 centrally located along the waterfront and with a natural  
                 deep water berth along its east face.  However the poor  
                 structural condition of Pier 30-32 currently limits the  
                 use of the pier to automobile parking and occasional,  
                 temporary use as a tertiary berth for cruise ships and  
                 other deep draft vessels.  The pier has a limited  
                 remaining useful life.  The Port estimates that the cost  
                 of removing the pier would exceed $45 million.

               ii)    Preserving Pier 30-32 requires a substantial capital  
                 investment to improve the piles and decking to modern  
                 seismic standards.  The Port estimates that the cost of  
                 rehabilitating the pier substantially exceeds the Port's  
                 estimates of the pier's fair market value.  The Port does  
                 not have adequate funding in its 10-year capital plan for  


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                 the costs to improve or to remove the pier due to limited  
                 Port resources and competing Port priorities, including  
                 the completion of a new international cruise terminal at  
                 Pier 27 and the preservation of historic maritime  
                 resources in the Port's jurisdiction. The Port must  
                 conserve Port revenue to support those maritime uses and  
                 public improvement for which private investment is not  

               iii)   Over the past decade, the Port has sought to  
                 preserve and develop Pier 30-32 through public-private  
                 partnerships.  In 2001, the Legislature authorized the  
                 development of Pier 30-32 with a new cruise ship  
                 terminal, office space, and retail space.  The Port's  
                 1998 assessment evaluated alternative locations for a new  
                 cruise ship terminal and concluded that Pier 30-32 was  
                 the most viable site for a new cruise terminal in San  
                 Francisco because of its position adjacent to deep water,  
                 site configuration, and development considerations.  The  
                 Port solicited proposals and selected a developer for a  
                 cruise ship terminal at Pier 30-32.   The developer  
                 subsequently abandoned that project after determining  
                 that the financial investment required to improve the  
                 substructure of Pier 30-32 was cost prohibitive, and no  
                 other developer could be found who was willing to accept  
                 assignment of the development rights for the project.   
                 The Port has since identified Pier 27 as the preferred  
                 location for its new cruise ship terminal in San  
                 Francisco, and construction of the terminal building is  
                 currently underway.

               iv)    In 2011, the America's Cup Event Authority proposed  
                 to improve Pier 30-32 to host racing teams and  
                 hospitality facilities during the America's Cup in 2013,  
                 and to acquire long-term development rights to Pier  
                 30-32.  Those planned facilities were ultimately  
                 relocated to other piers due primarily to the cost of  
                 rehabilitation the substructure of Pier 30-32.

               v)     The Port now proposes a mixed-use development at  
                 Pier 30-32, which will further public use, access, and  
                 enjoyment of the tidelands and surrounding water at this  
                 location by providing a multipurpose venue for events and  
                 public assembly, coupled with public access, open space,  
                 and venue-supporting or trust retail uses; significant  


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                 maritime facilities, including an occasional berthing  
                 area for large vessels; bay-oriented recreational  
                 activities; and limited ancillary parking as reasonable  
                 necessary to meet the visitor-serving needs of the  
                 mixed-use development, including the multipurpose venue,  
                 all of which are designed to preserve and improve public  
                 and visual access to the bay and its shoreline.

               vi)    Pier 30-32 is ideally situated to provide public  
                 access to and enjoyment of the waterfront and bay.  It is  
                 within walking distance of the Ferry Building, the San  
                 Francisco Giants baseball stadium, and regional transit  
                 hubs, including the Transbay Transit Center, which is  
                 under construction, has unmatched views of the Bay and  
                 the Bay Bridge, and is immediately adjacent to the  
                 Brannan Street Wharf project, which will provide a 58,700  
                 square foot pile supported park over the bay, consistent  
                 with the Special Area Plan.  The Brannan Street Wharf  
                 project is currently under construction and is  
                 anticipated to be completed by June 2013.  The value of  
                 the Brannan Street Wharf as a recreational resource is  
                 diminished by the current condition and use of Pier  
                 30-32, which cannot support dedicated public access on  
                 the pier and full realization of the Brannan Street Wharf  
                 Open Water Basin.

               vii)   The inclusion of significant public access  
                 improvements, maritime facilities, and venue-supporting  
                 or trust retail uses, together with a multipurpose venue  
                 for events that bring people from around the state to the  
                 waterfront to use and enjoy the public trust assets of  
                 San Francisco, enhances and promotes the trust uses of  
                 the tidelands location.

               viii)  The Port estimates the cost of the construction of  
                 the substructure and related improvements required to  
                 make Pier 30-32 useable for the proposed mixed-use  
                 development is in excess of $120 million, which  
                 significantly exceeds the Port's appraised fair market  
                 value of the pier.  The Port plans to finance the  
                 substructure costs with private capital and the following  
                 public revenue sources:  the proceeds from the sale or  
                 lease of Seawall Lot 330 pursuant to AB 418, rent credits  
                 for the lease of Pier 30-32 to the developer of the  
                 venue, property tax increment from an infrastructure  


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                 financing district, and possibly special taxes from a  
                 community facilities district.  Construction of the  
                 multipurpose venue structure will be entirely privately  
                 financed and will not require any expenditure of money  
                 from the city's general fund, or from other city or Port  

               ix)    There are presently few visitor-serving amenities in  
                 the vicinity of Pier 30-32.  The Port's efforts to  
                 develop its property for hotel use have been  
                 unsuccessful. The development of the multipurpose venue  
                 at Pier 30-32 and the termination of the trust use  
                 restrictions at Seawall Lot 330 would create substantial  
                 new demand for visitor-serving uses at that location and  
                 would make those uses financially feasible as part of an  
                 overall residential and mixed-use development at Seawall  
                 Lot 330.  Also, Seawall Lot 330 presents an opportunity  
                 to enhance the trust value of the project on Pier-32 by  
                 attracting more people to the waterfront and providing  
                 accommodations to the people from both the San Francisco  
                 region and other areas of the state through  
                 visitor-serving uses, which may include visitor-serving  
                 retail, restaurants or hotel use, or any combination of  

             b)   Deletes findings and declarations related to Pier  
               30-32's use as a cruise ship terminal.

          4)Amends Section 7 of Chapter 489 of the Statutes of 2001, as  
            amended by Section 3 of Chapter 68 of the Statutes of 2003, to  

             a)   Any legislative or regulatory requirement for findings  
               of consistency with the public trust doctrine or the Burton  
               Act trust under the Special Area Plan, the Bay Plan, or any  
               other applicable statute, regulation, or plan shall be  
               deemed satisfied if the Port has made a finding that the  
               Pier 30-32 development is consistent with the requirements  
               of Section 5 of this act.  Except with respect to a finding  
               of consistency with the public trust doctrine, nothing in  
               this act is intended to limit the authority and discretion  
               of BCDC to approve or deny permits for the multiuse  
               development plan on Pier 30-32, as specified, including the  
               authority and discretion of BCDC to impose conditions on  
               the permits for the project.  This act shall not limit the  


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               authority and discretion of BCDC to enforce permits issued  
               for the projects in this act.
          5)Amends Section 14 of Chapter 489 of the Statutes of 2001 to  
            specify that this act does not alter the obligations of the  
            city or the Port under the California Environmental Quality  
            Act (CEQA), including any obligation to consider alternatives  
            to a project proposed for Pier 30-32 or Seawall Lot 330.
          6)Provides that if a mixed-use development at Pier 30-32 that  
            includes a multipurpose venue for events and public assembly  
            has not been approved within 10 years of the effective date of  
            this act, the provisions of specified sections of this act  
            shall become inoperative as of the date that is 10 years from  
            the effective date of this act.

          7)Makes the following changes to definitions section contained  
            in the bill:

             a)   Defines "AB 418" to mean Chapter 477 of the Statutes of  

             b)   Defines "America's Cup" to mean the 34th America's Cup;

             c)   Deletes the definition of "boundary of the Port of San  

             d)   Revises "McAteer-Petris Act" to mean Title 7.2 of the  
               Government Code, as that act may be amended from time to  

             e)   Revises "public trust" or "trust" to mean the common law  
               public trust for commerce, navigation, and fisheries;

             f)   Revises the definition of "Seawall Lot 330" to mean any  
               portion of the parcel, as specified; and,

             g)   Defines "trust retail uses" to mean visitor-serving  
               retail and restaurant establishments and similar retail  
               uses that facilitate and encourage public use of the  

          8)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  


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            because of the unique circumstances applicable only to the  
            trust lands described in this act.

           EXISTING LAW  :

          1)Protects, pursuant to the common law doctrine of the public  
            trust (Public Trust Doctrine), the public's right to use  
            California's waterways for commerce, navigation, fishing,  
            boating, natural habitat protection, and other water oriented  
            activities.  The public trust doctrine provides that filled  
            and unfilled tide and submerged lands and the beds of lakes,  
            streams, and other navigable waterways (i.e. public trust  
            lands) are to be held in trust by the state for the benefit of  
            the people of California.  

          2)Requires the State Lands Commission (Commission) to be the  
            steward and manager of the state's public trust lands.  The  
            Commission has direct administrative control over the state's  
            public trust lands and oversight authority over public trust  
            lands granted by the Legislature to local public agencies. 

          3)Grants, in trust, state public trust lands to over 80 local  
            public agencies to be managed for the benefit of all the  
            people of the state and pursuant to the Public Trust Doctrine  
            and terms of the applicable granting statutes. 

          4)Pursuant to the Burton Act, grants to the Port, in trust, the  
            public trust lands in the harbor of San Francisco for purposes  
            of commerce, navigation, and fisheries and subject to other  
            terms and conditions specified in the act.

          5)Pursuant to Chapter 489 of the Statutes of 2001 (AB 1389,  
            Shelley) and Chapter 68 of the Statutes of 2003 (AB 605, Yee),  
            authorizes the Port to approve a cruise ship terminal  
            development on the San Francisco waterfront at Pier 30-32,  
            which would include general office and retail use.

          6)Pursuant to Chapter 477 of the Statutes of 2011(AB 418,  
            Ammiano), frees the public trust restrictions from Seawall Lot  
            330 (which is across the Embarcadero from Pier 30-32) and  
            authorizes the transfer of the property to a private party  
            subject to specified conditions.

          7)Pursuant to the McAteer-Petris Act, establishes the  
            jurisdiction of the San Francisco Bay Conservation and  


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            Development Commission (BCDC) to include, among other things,  
            the San Francisco Bay and a shoreline band consisting of all  
            territory located between the shoreline of San Francisco Bay  
            and a line 100 feet landward of and parallel with that line.

           FISCAL EFFECT  :  Unknown

           COMMENTS  :   

          1)The primary purpose of this bill is to have the Legislature  
            authorize a mixed-use development project, which, among other  
            things, includes a multipurpose venue (the Golden State  
            Warriors' basketball arena) and on a pier built on tide and  
            submerged lands (public trust lands) located in San Francisco.  
             The project proposed in this bill includes two related  
            components on separate Port parcels:  Piers 30-32 and Seawall  
            Lot 330.  These parcels are located along the San Francisco  
            waterfront between the Bay Bridge and AT&T Park.

            Pier 30-32 consists of an approximately 553,778-square foot  
            (about 13 acres) pile-supported structure along The  
            Embarcadero roadway.  The Pier 30-32 platform consists of  
            obsolete, pile-supported pier structures that are physically  
            no longer capable of serving most trust-related purposes  
            without substantial modification and repair.  Preserving the  
            pier requires a substantial capital investment to improve the  
            piles and decking to modern seismic standards.  

            According to a feasibility study prepared for the City and  
            County of San Francisco, the proposed project will involve the  
            Golden State Warriors rehabilitating Piers 30-32 and  
            constructing a new privately financed, state-of-the art  
            multi-purpose venue with seating for 17,000 to 19,000 persons,  
            capable of being used as an event venue and for other public  
            assembly uses, including conventions, Warriors' home games,  
            performing arts, and other purposes, along with public open  
            space (at least 50 percent of Piers 30-32), waterfront access  
            improvements, parking facilities (630 parking spaces),  
            visitor-serving retail and restaurants (105,000 square feet),  
            maritime access, and other related uses.  The Golden State  
            Warriors also plan to build a team practice facility (21,000  
            square feet), plus a community room (10,000 square feet) and  
            event management and team operations space (40,000 square  
            feet) on Piers 30-32.  The Warriors will finance and build  
            these improvements under a fair market rent ground lease from  


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            the Port, and complete them by the fall 2017.

            Seawall Lot 330, which is across the Embarcadero roadway from  
            Piers 30-32, is approximately 101,330 square feet (about 2.3  
            acres) of filled tidelands.  In 2011, AB 418 (Ammiano)  
            terminated the public trust use restrictions from Seawall Lot  
            330, declaring that the parcel is not necessary for public  
            trust purposes. 

            As part of the project, the Golden State Warriors will  
            construct improvements on the undeveloped portion of Seawall  
            Lot 330.  The Port will convey fee title to Seawall Lot 330 to  
            the Warriors for fair market value consideration if certain  
            conditions are met; otherwise, the Port will enter into a 75  
            year ground lease with the Warriors for the appraised fair  
            market rent consideration for that site.   The Warriors'  
            preliminary plans for this parcel include retail (33,000 to  
            34,000 square feet), parking (200 to 300 spaces), residential  
            units (100 to 130 units), and a hotel (200 to 250 rooms).  

          2)The bill asserts that the project is consistent with the  
            common law public trust.  The challenge with this assertion is  
            that the common law Public Trust Doctrine, as interpreted by  
            the U.S. Supreme Court, places limitations on the  
            Legislature's authority to use trust lands for nontrust  
            purposes.  A basketball arena, which is a major feature of the  
            project, is not a traditional public trust use-it does not  
            involve water related commerce, navigation, or fishing.   
            However, there are examples of nontrust uses on public trust  
            lands that have been deemed legitimate by the courts because  
            they are incidental to and accommodate other trust uses.   
            Additionally, the courts have recognized that the public trust  
            doctrine is flexible to address changing public needs related  
            to public trust lands.  

            Please see the Assembly Natural Resources Committee analysis  
            for the full discussion on common law public trust issues.   
            Significant amendments were taken in that Committee in order  
            to make the project consistent with the Public Trust Doctrine  
            and to maximize public access to and public views of the San  
            Francisco waterfront and the Bay.

          3)According to the author, "The Port of San Francisco, through  
            the City and County of San Francisco, holds 7.5 miles of the  
            San Francisco Bay waterfront, including the Piers 30-32 site,  


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            in trust for the people of the State of California.  As a  
            local trust grantee, the Port ensures that uses of trust lands  
            are consistent with commerce, navigation, and recreation, or  
            incidental uses that directly promote trust uses and public  
            enjoyment of waterfront areas, such as restaurants, hotels,  
            and visitor-serving retail.

            "The Port has made several attempts over the past decade to  
            utilize public-private partnerships for preservation and  
            economic development of Piers 30-32.  In 2001, the legislature  
            enacted AB 1389 to facilitate the development of a cruise ship  
            terminal and large mixed use office space at the site.   
            However, the project never began construction due to the  
            site's poor structural condition and higher than projected  
            substructure improvement costs.  The cruise ship terminal  
            project has since been relocated to Pier 27.  In 2011, the  
            America's Cup Event Authority proposed to rehabilitate Piers  
            30-32 to host its racing teams, but similarly relocated  
            construction to other piers due to the site's high  
            substructure improvement costs.

            "As it now stands, Piers 30-32 has a remaining useful life of  
            less than 10 years and would require either $68 million in  
            preservation and seismic upgrades to maintain public safety,  
            or $45 million to remove the decaying piers entirely.  In  
            light of these circumstances, the City and County of San  
            Francisco has determined that a recent proposal to locate a  
            multi-purpose venue at Piers 30-32 is the best option to  
            promote public enjoyment of the waterfront and provides the  
            needed revenue to preserve the site in furtherance of the  
            public trust.  The design of the proposed multi-purpose venue  
            is guided by public trust principles in consultation with the  
            State Lands Commission and the San Francisco Bay Conservation  
            and Development Commission, as well as by examples of  
            successful public assembly uses built on tidelands and piers  
            over water throughout the state.  The proposed multi-purpose  
            venue would rehabilitate the pier, modernize maritime  
            facilities, and create new opportunities for open space and  
            public access to the waterfront, all while generating  
            approximately 8,000 new jobs and $500 million in annual  
            economic output for the region."

          4)In May of 2012, the Golden State Warriors, NBA Commissioner  
            David Stern and San Francisco Mayor Ed Lee officially  
            announced that the Bay Area's only NBA team is trying to move  


                                                                  AB 1273
                                                                  Page  15

            back to San Francisco.  According to news reports, the  
            earliest the team could leave Oakland would be 2017, when the  
            lease at Oracle Arena is up.

          5)A joint opposition letter from the Mayors of several East Bay  
            Cities (Berkeley, Oakland, Richmond, and San Leandro) notes  
            that this bill diminishes the authority of both the State  
            Lands Commission and the Bay Conservation and Development  
            Commission in the project approval process. The letter states  
            that "removing from BCDC or the State Lands Commission any  
            real role in scrutinizing a massive commercial development on  
            the Bay would run directly contrary to the very purposes of  
            these two bodies, each of which has decades of experience  
            balancing the sometimes competing interests of developing and  
            preserving the waters, tidelands and submerged lands under  
            their jurisdictions."

          6)State Lands Commission issued a letter on April 26, 2013 to  
            the author of this bill in relation to several statements made  
            about the State Lands Commission's role in the proposed mixed  
            use development project at Piers 30-32. The letter from the  
            Executive Officer of the Commission states:

            While the Commission has not taken a formal position on AB  
            1273 at this time and staff remains neutral on the bill, the  
            purpose of this letter is to provide context concerning the  
            Commission's jurisdiction relating to sovereign land granted  
            in trust to local jurisdictions, and in particular, the  
            proposed development at Piers 30-32 addressed on AB 1273?

            Under the Burton Act, the Port of San Francisco is not  
            generally statutorily required to obtain Commission approval  
            for a project proposed on granted public trust lands under the  
            Port's jurisdiction, including the proposed development at  
            Piers 30-32 addressed in AB 1273.  Only on rare occasions has  
            specific Commission approval been required for activities  
            undertaken by the Port.  However, the City and Port of San  
            Francisco and Commission staff have a long history of working  
            together in a cooperative and collaborative manner to further  
            and enhance public trust purposes along the San Francisco  
            waterfront.  Examples include the Giants Ballpark, the Ferry  
            Building, Pier 1, Piers 1 , 3 & 5, the Exploratorium at Piers  
            15-17, and the development at Candlestick/Hunters Point and  
            Treasure Island.


                                                                  AB 1273
                                                                  Page  16

            Consistent with this past history, City and Port staff  
            initiated discussions with Commission staff early on in the  
            development of the proposed project addressed in AB 1273.   
            Given the Legislature's previous involvement on Piers 30-32  
            through Chapter 489, Statutes of 2001, as amended in 2003, as  
            well as its involvement in Seawall Lot 330 across the  
            Embarcadero from Piers 30-32, and the significant complexities  
            of the proposed mixed use development, Commission staff  
            believes it is appropriate for the City to seek legislative  
            authorization for the development of Piers 30-32, which  
            includes a multipurpose public assembly venue.  Your office  
            and City and Port staff have worked closely with Commission  
            staff on drafting language for AB 1273 to ensure that the bill  
            promotes public trust purposes.  While there are still some  
            outstanding issues to be resolved, given our past history with  
            the City and Port, as well as assurances by your office and  
            City and Port staff, I am confident that we will continue to  
            work closely on future amendments to AB 1273 to ensure that  
            the bill furthers public trust needs and purposes at Piers  
            30-32 and is in the best interests of the people of  

          1)The San Francisco Water Alliance, in opposition, writes that  
            "This legislation enables an entertainment complex to be built  
            over San Francisco Bay waters.  Yet, San Francisco Bay waters  
            are not the exclusive toy of any one City or County that  
            touches its shores.  Some nine counties, dozens of cities, and  
            their millions of citizens have an interest in, and the right  
            to be heard and substantively consulted about, what happens in  
            or on our Bay waters.  That regional right is enshrined in the  
            McAteer-Petris Act which declares "the bay operates as a  
            delicate physical mechanism in which changes that affect one  
            part of the bay may also affect all other parts."   With  
            regard to tidelands, the regional nature of bay-related  
            decisions is demonstrated by the control given to the State  
            Lands Commission to ensure consistency with the public trust  
            doctrine that governs shoreline development.

            "Under AB 1273, members of County Boards of Supervisors,  
            interested Mayors, and local officials are deprived of the  
            opportunity to fully participate in the evidentiary and  
            routine processes of the State Lands Commission, the state  
            agency specifically established to deal with important  
            regional shoreline issues.  The proponents of this bill seek  
            to avoid the need to obtain a finding of "Public Trust  


                                                                  AB 1273
                                                                 Page  17

            Consistency" from the State Lands Commission.  Instead, they  
            ask the legislature to intervene in a local land use decision  
            and empower the local project sponsor to make a public trust  
            consistency finding -- but do not constrain the project  
            sponsor to adhere to a process that is even substantially  
            similar to what would be required in a proceeding before the  
            State Lands Commission.  This would set bad precedent."

           1)Support arguments  :  Supporters argue that the construction and  
            ongoing maintenance of this new state-of-the-art sports and  
            entertainment facility will be a major contributor for the Bay  
            Area economy, as it is expected to create a large number of  
            construction related jobs and the many ongoing related service  
            Opposition arguments  :  Opponents argue that the bill does not  
            protect public access on Piers 30-32 and public enjoyment of  
            the Bay and that the bill is premature given that no detailed  
            project or rationale has yet been examined and vetted through  
            any public process.

          1)This bill was heard in the Assembly Natural Resources  
            Committee on April 15, 2013, and passed on a 7-2 vote.

          City and County of San Francisco [SPONSOR]
          A Philip Randolph Institute, San Francisco and Western Region
          Asbestos, Lead and Old Laborers, Local Union No. 67
          Bay Area Council
          Boys and Girls Clubs of San Francisco
          Bricklayers and Allied Craftworkers Local 3, California
          Brightline Defense Project
          Building Owners and Managers Association of San Francisco
          California Labor Federation
          California State Association of Electrical Workers
          California State Council of Laborers
          California State Pipe Trades Council
          CAL Insurance & Associates, Inc.
          Charity Cultural Services Center
          Golden State Warriors
          Hotel Council of San Francisco


                                                                  AB 1273
                                                                  Page  18

          International Brotherhood of Electrical Workers, Local Union 6
          International Union of Operating Engineers, Local Union No. 3
          Laborers' International Union of North America, Local Union No.  
          Mission Hiring Hall
          San Francisco Chamber of Commerce
          San Francisco Citizens Initiative for Technology & Innovation  
          San Francisco Deputy Sheriff's Foundation
          San Francisco Fire Department
          San Francisco Travel Association
          Sign Display and Allied Crafts, Local Union No, 510
          State Building and Construction Trades Council of California 
          Sustainable Futures
          United Association of Plumbers, Pipefitters, and Sprinkler  
          Fitters, Local Union No. 483
          United Association of Journeymen and Apprentices of the Plumbing  
          and Pipe Fitting Industry
          United Brotherhood of Carpenters and Joiners of America, Local  
          Union 22
          Western States Council of Sheet Metal Workers
          Young Community Developers, Inc.
          Individual letters (7)
          Mayors of the Cities of Berkeley, Oakland, Richmond and San  
          San Francisco BayKeeper
          San Francisco Tomorrow
          San Francisco Waterfront Alliance
          Save the Bay
          Sierra Club California
          Analysis Prepared by  :    Debbie Michel / L. GOV. / (916)