BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1273|
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THIRD READING
Bill No: AB 1273
Author: Ting (D)
Amended: 8/28/13 in Senate
Vote: 21
SENATE NATURAL RESOURCES AND WATER COMMITTEE : 7-0, 6/25/13
AYES: Pavley, Cannella, Evans, Fuller, Hueso, Monning, Wolk
NO VOTE RECORDED: Jackson, Lara
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/26/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 59-10, 5/30/13 - See last page for vote
SUBJECT : Tidelands and submerged lands: City and County of
San Francisco
Pier 30-32
SOURCE : City and County of San Francisco
DIGEST : This bill seeks a determination from the Legislature
that a proposed multi-purpose venue at Piers 30-32 in San
Francisco Bay furthers the purposes of the common law public
trust for commerce, navigation, and fisheries. The building on
Piers 30-32 would include an arena for the Golden State
Warriors, an NBA basketball franchise, which could also serve as
a convention facility. There will be limited retail and parking
associated with this venue.
ANALYSIS :
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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.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.
3.Grants to the Port of San Francisco (Port), pursuant to the
Burton Act (Act) (Chapter 1333, Statutes of 1968) 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.
This bill:
1.Authorizes the State Lands Commission (SLC) to approve a
mixed-use development on the San Francisco waterfront at Pier
30-32, that includes a multipurpose venue if it finds
specified conditions are met.
2.Provides for what is essentially a monitoring program which is
called a "trust program report" by which the Port would assure
the SLC at five year intervals that the conditions for public
uses at the site are maintained as described above. Those
five year reports are to include:
A. 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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B. 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;
C. 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;
D. A description of the tenants and use of the non-maritime
office space and the use of the public community room on
Pier 30-32; and,
E. Any other information specifically requested by the SLC
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.
1.Provides that the Executive Officer of the SLC may require an
implementation plan in case he/she determines that the trust
program is not being fully implemented. The implementation
plan may extend to all the terms and conditions set forth in
the governmental approvals of the project, the leases and
other contracts affecting use of the site. Those enforcement
provisions are triggered by the following two findings that
would have to be made by the Executive Officer:
A. That Pier 30-32 is not being used for at least 15
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,
B. That the Port, or the City, has not taken effective
action to achieve the objectives specified in this bill.
1.Amends previous legislation regarding Piers 30-32 and contains
the Legislature's authorization of this project as the trustee
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of the public trust. That authorization is dependent upon the
SLC making the findings described above.
2.Contains a finding and declaration that Bay Conservation and
Development Commission's (BCDC) regulatory authority is
preserved in its Bay Plan and in the Special Area Plan that
covers the area in which Piers 30-32 are located.
3.Specifies that, in addition to the findings that the SLC makes
pursuant to this bill, that the SLC review of the project is
limited to confirming the BCDC actions. This does not confer
public trust consistency determination to the SLC because, as
drafted, that determination would be made by the Legislature.
4.Contains numerous amendments negotiated between BCDC and the
sponsors related to parking, conditions on retail, and a
public benefits package that would be developed separately and
through a public process.
5.Contains numerous findings and declarations that contain the
legislative history and its prior actions with these two
piers, the planning processes that have occurred by the Port,
by San Francisco, and by BCDC, among other items.
6.Contains numerous findings and declarations in specific to the
history, current condition, and estimated expense of
preserving Piers 30-32.
7. Allows the conditions for the sale of Seawall Lot (SWL) 330
under AB 418 (Ammiano, Chapter 477, Statutes of 2011) to be
satisfied by a public trust easement over, or a fee interest
in, a portion of the Baylands Parcel. If the easement or fee
interest covers an area greater than that required by the
sale of SWL 330, the Port may treat the surplus area as a
credit for future trust exchanges.
Background
The Act allowed the granting of the Port 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
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operation of public buildings, parks, and public educational and
recreational facilities. 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. The Act grants the
tidelands and submerged lands along the San Francisco waterfront
to the city and county of San Francisco to be managed and
controlled by the San Francisco Port Commission (Commission) in
the public's trust.
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.
AB 418 freed the public trust restrictions from SWL 330 as a
package of items aimed at allowing the Port to make developments
and investments related to the hosting of America's Cup Yacht
Race. As a condition of the sale of SWL 330, the Commission
would be required to impress the public trust on other lands on
or adjacent to the San Francisco Bay that has an area equal to
or greater than the area of SWL 330 and is useful for trust
purposes, as determined by the SLC. This approval was a
departure from the historic practice of requiring replacement
land equal in value.
In 2012, San Francisco entered into an agreement with the Golden
State Warriors to build a new, LEED Gold, multi-purpose facility
at Piers 30-32 capable of being used to host Warriors' home
games, other events including conventions, and expanding public
access to the waterfront, among other things. The approval for
this project involves permitting from BCDC, the Board of
Supervisors of the City and County of San Francisco, and the
State Lands Commission. The project is also subject to the
California Environmental Quality Act (CEQA) and the project is
currently in the early stages of preparing a draft environmental
impact report. No approvals or reviews have yet been completed.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, no
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unreimbursed costs. The SLC is likely to incur one-time costs
in the high tens of thousands to low hundreds of thousands of
dollars over several years to consider the development and
related land swaps. There will be some minor costs ongoing to
monitor trust-consistent uses of the multipurpose venue. All
reasonable costs will be borne by the Port or the City according
to a budget which will be agreed upon before the SLC's work
begins.
SUPPORT : (Verified 9/3/13)
City and County of San Francisco (source)
A. Philip Randolph Institute San Francisco
A. Philip Randolph Institute Western Region
Alliance for Jobs and Sustainable Growth
Asbestos, Lead and Mold Laborers Local Union 67
Bay Area Council
Boys and Girls Club of San Francisco
Bricklayers and Allied Craftworkers Local 3
Brightline Defense Project
Building Owners and Managers Association of San Francisco
CAL Insurance and Associates, Inc.
California Labor Federation
California Sate Pipe Trades Council
California State Association of Electrical Workers
California State Council of Laborers
Charity Cultural Services Center
Golden State Warriors
Hotel Council of San Francisco
International Brotherhood of Electrical Workers Local Union 6
Laborers' International Union of North American Local Union No.
261
Mission Hiring Hall
Operating Engineers Local Union No. 3
San Francisco Chamber of Commerce
San Francisco Citizens Initiative for Technology and Innovation
San Francisco Deputy Sherriff's Foundation
San Francisco Fire Department
San Francisco Travel Association
Sign Display & Allied Crafts Local Union No. 510
Silicon Valley Leadership Group
South Market Business Association
Sprinkler Fitters and Apprentices Local 483
State Building and Construction Trades Council
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Sustainable Futures
United Association of Journeymen and Apprentices of the Plumbing
and Pipe
Fitting Industry
United Brotherhood of Carpenters and Joiners of American Local
Union No. 22
Western States Council of Sheet Metal Workers
Young Community Developers, Inc.
OPPOSITION : (Verified 9/3/13)
Airport Area Business Association
Alameda County Board of Supervisors
City of Oakland
Mayor of Berkeley
Mayor of Oakland
Mayor of Richmond
Mayor of San Leandro
Oakland African American Chamber of Commerce
Pacific Merchant Shipping Association
Safe Storage
San Francisco Baykeeper
San Francisco Tomorrow
San Francisco Waterfront Alliance
Save Oakland Sports
Save The Bay
Shred Works
The Art Sign Company
The Sierra Club California
The Ultimate Sports Guide
ARGUMENTS IN SUPPORT : The author, the City of San Francisco,
the Port, and other key supporters of this bill believe that the
proposal from the Golden State Warriors for a multi-purpose
venue at Piers 30-32 with associated commercial development
across the Embarcadero at SWL 330 represents the best
opportunity for revitalizing the piers and maximizing public use
and enjoyment of the site. The estimate is that this site could
host 43 basketball games a year plus 160 or so other events
including concerts, conventions, and the like.
The Golden State Warriors proposal was made in May 2012, and
negotiations between all the affected parties began in the fall
of 2012.
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These two piers occupy 13 acres at one of the most desirable
locations in San Francisco. Moreover, there is no dispute that
these two piers are in disrepair. Currently, they are used a
parking lot. The estimate to repair the substructure to make
the piers useable for the proposed project is $68 million which
the Port cannot afford. That cost would be paid by the major
tenant, the Golden State Warriors, in part through revenues
generated by the components of the project that would occur on
SWL 330. The useful life of the piers is estimated at 10 years.
The arena itself would be privately financed.
Supporters point out that this project, including the arena,
unlike other recent stadium proposals that have been before the
Legislature, does not short-circuit environmental review of CEQA
or the regulatory approval processes by any affected agency
pursuant to existing law. Approvals would be required by the
Port, the Board of Supervisors, the SLC, BCDC, and the San
Francisco Regional Water Quality Control Board, among others.
The heart of the request of the supporters is that the
Legislature determine, at this admittedly early stage of project
development, that the project is consistent with the public
trust doctrine. The supporters believe such a determination is
essential to the confidence of the investors and the public
agencies involved in the project that the project could
ultimately be approved.
The sponsors have been engaged in active negotiations with BCDC
and the SLC for months, and they strongly believe that all
remaining details and regulatory approvals can be successfully
completed, even in light of the recent decision of BCDC to
oppose the project unless the author agrees to make the bill
into a two-year bill. Part of the reason for the optimism is
that the bill now reflects agreements between BCDC and the SLC
on several key points.
The supporters contend that this project is directly analogous
to other waterfront projects in California such as the Long
Beach Municipal Auditorium, Long Beach Convention Center, AT&T
Park in San Francisco, and the San Diego Convention Center.
Many other supporters from the San Francisco business and labor
community point to the non-public trust economic benefits of the
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project including an estimated 5000 construction jobs and 3000
direct and ongoing jobs. The annual economic output of the
project provided by supporters is $500 million across the entire
Bay region.
ARGUMENTS IN OPPOSITION : The San Francisco Baykeeper states
in opposition that, "San Francisco's Port Lands constitute an
invaluable and irreplaceable public trust for the people of
California. Ultimately, any project designed for Pier 30-32
must be consistent with water-dependent public trust uses, the
San Francisco Bay Plan (Bay Plan), and the San Francisco
Waterfront Special Area Plan, which have long governed
development along the San Francisco shoreline within BCDC's
jurisdiction. Baykeeper believes this proposed use is
fundamentally inconsistent with the public trust - a
determination that ultimately is the Court's to decide.
"AB1273 also circumvents BCDC long-delegated authority to make a
determination of public trust consistency. Approval of AB 1273
would undermine the existing local control over projects capable
of permanently altering the shoreline and ecology of San
Francisco Bay.
"Since its formation upon passage of the McAteer-Petris Act of
1965, BCDC has played an essential role in managing these lands
consistent with the public trust doctrine. AB1273 and the
associated stadium project are in violation of the spirit and
intent of the public trust, and of several waterfront policies
and plans.
"Failure of AB1273 does not constitute a denial of the Warriors
stadium project, as the project proponents would retain the
right to propose a project that could be judged by the
appropriate regional authorities on its merits. Regardless, San
Francisco Baykeeper believes a stadium should not be built over
San Francisco Bay waters or on the Bay shoreline."
ASSEMBLY FLOOR : 59-10, 5/30/13
AYES: Achadjian, Alejo, Allen, Atkins, Bigelow, Bloom,
Bocanegra, Bradford, Brown, Buchanan, Ian Calderon, Campos,
Chávez, Chesbro, Conway, Dahle, Daly, Dickinson, Donnelly,
Eggman, Fox, Frazier, Beth Gaines, Gatto, Gomez, Gonzalez,
Gordon, Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger
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Hernández, Jones, Levine, Linder, Maienschein, Mansoor,
Medina, Melendez, Mitchell, Morrell, Mullin, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, Quirk-Silva, Salas,
Ting, Wagner, Waldron, Weber, Wilk, Williams, John A. Pérez
NOES: Ammiano, Blumenfield, Bonilla, Bonta, Cooley, Logue, V.
Manuel Pérez, Quirk, Skinner, Wieckowski
NO VOTE RECORDED: Chau, Fong, Garcia, Holden, Jones-Sawyer,
Lowenthal, Muratsuchi, Rendon, Stone, Yamada, Vacancy
RM:nl 9/4/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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