Amended in Assembly March 29, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2797


Introduced by Assembly Member Chiu

February 19, 2016


An act to amendbegin delete Section 10200 of the Public Resources Code, relating to agricultural land.end deletebegin insert Sections 4 and 7 of Chapter 660 of the Statutes of 2007, relating to tidelands and submerged lands.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2797, as amended, Chiu. begin deleteThe California Farmland Conservancy Program Act. end deletebegin insertCity and County of San Francisco: Mission Bay South Project: redevelopment plan.end insert

begin insert

Existing law grants to the City and County of San Francisco the right, title, and interest of the state 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.

end insert
begin insert

Existing law declares that, until January 1, 2094, certain parcels of real property denominated as the designated seawall lots are free from the use requirements of the public trust, the Burton Act trust, and the Burton Act transfer agreement, and authorizes the San Francisco Port Commission to lease all or a portion of the designated seawall lots for nontrust uses if specified conditions are met, including that the lease shall terminate no later than January 1, 2094.

end insert
begin insert

This bill would revise those conditions to specify that a nontrust lease shall terminate no later than January 1, 2094, or the date that is 75 years after the date the port first issues a certificate of occupancy for the improvements on the site. The bill would also prescribe the boundaries of a specified seawall lot for purposes of the Mission Bay South redevelopment plan.

end insert
begin insert

This bill would make legislative findings and declarations as to the necessity of a special statute for the waterfront property at the Mission Bay South redevelopment area in the City and County of San Francisco.

end insert
begin delete

Existing law prescribes procedures for the establishment of agricultural conservation easements intended to preserve and protect certain agricultural lands in the state. Existing law provides that this law shall be known, and may be cited, as the California Farmland Conservancy Program Act.

end delete
begin delete

This bill would make technical, nonsubstantive changes to this latter provision.

end delete

Vote: majority. Appropriation: no. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert
begin insert

For the purposes of this act the following terms
2have the following meanings:

end insert
begin insert

3
(a) “Assembly Bill 26” means Chapter 5 of the First
4Extraordinary Session of the Statutes of 2011, in which certain
5provisions were amended by Chapter 26 of the Statutes of 2012,
6effective as provided in California Redevelopment Assn. v.
7Matosantos (2011) 53 Cal.4th 231.

end insert
begin insert

8
(b) “Assembly Bill 2649” means Chapter 757 of the Statutes of
92012.

end insert
begin insert

10
(c) “Board of supervisors” means the Board of Supervisors of
11the City and County of San Francisco.

end insert
begin insert

12
(d) “Burton Act” means Chapter 1333 of the Statutes of 1968,
13as amended, which authorized the state to convey to the city, in
14trust and subject to certain terms, conditions, and reservations,
15the state’s interest in certain tidelands, including filled lands.

end insert
begin insert

16
(e) “Burton Act lands” means the tidelands that the state
17granted to the city under the Burton Act, including the San
18Francisco waterfront from the Hyde Street pier to India Basin.

end insert
begin insert

19
(f) “Burton Act transfer agreement” means the agreement dated
20January 24, 1969, between the state and the city, relating to the
P3    1transfer of the Burton Act lands from the state to the city, and any
2amendments to that agreement in accordance with its terms.

end insert
begin insert

3
(g) “Burton Act trust” means the statutory trust imposed by the
4Burton Act on Burton Act lands and lands dedicated to or acquired
5by the city as assets of the trust.

end insert
begin insert

6
(h) “Capital plan” means the 10-year capital plan for port land
7prepared in accordance with Sections 2.30 and 2.31 of the San
8Francisco Administrative Code, adopted in 2007 by the board of
9supervisors, as amended.

end insert
begin insert

10
(i) “City” means the City and County of San Francisco, a
11charter city and county, and includes the port.

end insert
begin insert

12
(j) “Commission” means the State Lands Commission.

end insert
begin insert

13
(k) “Designated seawall lot” or “designated seawall lots”
14means any of those parcels of real property situated in the city
15that are defined as designated seawall lots in Senate Bill 815 or
16Assembly Bill 2649, as those parcels may be modified by Section
173 of this act.

end insert
begin insert

18
(l) “Mission Bay developer” means an “owner,” as defined in
19the Mission Bay South owner participation agreement.

end insert
begin insert

20
(m) “Mission Bay South owner participation agreement” means
21 the agreement between the redevelopment agency and Catellus
22Development Corporation, dated November 16, 1998, as amended.

end insert
begin insert

23
(n) “Mission Bay South redevelopment plan” means the
24Redevelopment Plan for the Mission Bay South Project adopted
25by the board of supervisors on October 26, 1998, as amended.

end insert
begin insert

26
(o) “Mission Bay South redevelopment project area” means
27the area in the city subject to the Mission Bay South redevelopment
28plan.

end insert
begin insert

29
(p) “Oversight board” means the body that the board of
30supervisors created to oversee the fiscal management of the
31successor agency in accordance with Assembly Bill 26.

end insert
begin insert

32
(q) “Parcel P20” means a parcel owned by the port within the
33Mission Bay South redevelopment project area that lies partially
34within the southern portion of Seawall Lot 337.

end insert
begin insert

35
(r) “Port of San Francisco,” “port commission,” or “port”
36means the city acting by and through the San Francisco Port
37Commission.

end insert
begin insert

38
(s) “Public trust” or “trust” means the common law public
39trust for commerce, navigation, and fisheries.

end insert
begin insert

P4    1
(t) “Redevelopment agency” means the San Francisco
2redevelopment agency, that the board of supervisors formed under
3the former California Community Redevelopment Law and that
4was dissolved on February 1, 2012, by operation of Assembly Bill
526.

end insert
begin insert

6
(u) “San Francisco Bay” or “bay” means those areas defined
7by Section 66610 of the Government Code.

end insert
begin insert

8
(v)  “San Francisco waterfront” means the portions of San
9Francisco Bay that the state transferred to the city under the
10Burton Act.

end insert
begin insert

11
(w) “Seawall Lot 337” means that parcel of real property in
12the city known as Seawall Lot 337, as shown on that certain map
13entitled “revised map of designed seawall lots,” which is on file
14with the port.

end insert
begin insert

15
(x) “Seawall Lot 337 developer” means the person selected by
16the port to negotiate exclusively with the port for the master
17development of Seawall Lot 337 and Pier 48, and its successors
18and authorized assigns.

end insert
begin insert

19
(y) “Senate Bill 815” means Chapter 660 of the Statutes of
202007, in which certain provisions were amended by Chapter 208
21of the Statutes of 2009 and Assembly Bill 2649.

end insert
begin insert

22
(z) “State” means the State of California.

end insert
begin insert

23
(aa) “Successor agency” means the San Francisco Office of
24Community Investment and Infrastructure, which the board of
25supervisors created in accordance with Assembly Bill 26 to serve
26as the successor to the redevelopment agency.

end insert
begin insert

27
(ab) “Successor agency commission” means the San Francisco
28Commission on Community Investment and Infrastructure.

end insert
begin insert

29
(ac) “Tidelands” means the lands lying below the elevation of
30ordinary high water, whether filled or unfilled, and includes
31submerged lands.

end insert
32begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

The Legislature finds and declares all of the following:

end insert
begin insert

33
(a) San Francisco Bay is a valuable public trust asset of the
34state that provides special maritime, navigational, recreational,
35cultural, and historical benefits to the people of the region and
36the state. Tidelands in California are held in trust for enjoyment
37and use by the people of the state under the common law public
38trust doctrine. Public trust lands may be used for water-related
39purposes, including commerce, navigation, fishing, swimming,
40recreation, open space, and wildlife habitat.

end insert
begin insert

P5    1
(b) The San Francisco waterfront consists primarily of sovereign
2tidelands that the state granted to the city pursuant to the Burton
3Act. Under the Burton Act and the city’s charter, the port holds
4and manages the granted lands. The Burton Act authorizes the
5port to use, conduct, operate, maintain, manage, regulate, improve,
6and control the San Francisco waterfront consistent with the public
7trust and the Burton Act trust.

end insert
begin insert

8
(c) The San Francisco waterfront provides special maritime,
9navigational, recreational, cultural, and historical benefits to the
10entire San Francisco Bay area and serves as a unique destination
11for the public from throughout the region.

end insert
begin insert

12
(d) A unique feature of the San Francisco shoreline is the
13numerous historic maritime resources present on port property,
14many of which are in need of major structural repairs and are not
15currently available for the use and enjoyment of the public. The
16Legislature has previously found that rectifying the deteriorating
17conditions along the San Francisco waterfront, the preservation
18of the numerous historic piers and other historic structures on
19port land, and the construction of waterfront plazas and open
20space are matters of statewide importance that will further the
21purposes of the public trust and the Burton Act trust.

end insert
begin insert

22
(e) The seawall lots are tidelands that were filled and cut off
23from the waterfront by the construction of the great seawall, now
24occupied by the Embarcadero and other roadways, in the late 19th
25and early 20th centuries. Over time, some of the seawall lots,
26including the designated seawall lots, have ceased to be useful in
27whole or in part for the promotion of the public trust and the
28Burton Act trust, except for the production of revenue to support
29the purposes of the Burton Act trust. The designated seawall lots
30are presently either vacant or leased on an interim basis, primarily
31for commuter parking.

end insert
begin insert

32
(f) (1) In Senate Bill 815, the Legislature found all of the
33following:

end insert
begin insert

34
(A) The designated seawall lots are, in whole or in part, no
35longer necessary for the purposes of the public trust or Burton Act
36trust.

end insert
begin insert

37
(B) Costs to implement the port’s capital plan exceed projected
38revenues of the port available for these purposes, in part due to
39the port’s inability to make optimal use of the designated seawall
40lots.

end insert
begin insert

P6    1
(C) Future revenues from the development and leasing of the
2designated seawall lots are an essential source of funds to preserve
3the port’s numerous historic piers and historic structures, construct
4and maintain waterfront plazas and open space, and improve
5public access to the waterfront.

end insert
begin insert

6
(2) Senate Bill 815 lifted the use restrictions of the public trust
7and Burton Act trust from the designated seawall lots and
8authorized the port to enter into nontrust leases of the lands,
9subject to certain conditions and subject to the requirement that
10the nontrust lease revenues be used for specified trust purposes.

end insert
begin insert

11
(g) Seawall Lot 337, the largest of the designated seawall lots,
12is located just south of China Basin and is presently used as a
13surface parking lot. Senate Bill 815 depicts Seawall Lot 337 as
14bounded by Mission Rock Street, Terry A. Francois Boulevard,
15and Third Street. Following an extensive community process led
16by a citywide advisory panel and a solicitation process to identify
17qualified developers, the port commission entered into exclusive
18negotiations with the Seawall Lot 337 developer for the lease,
19construction, and operation of the proposed project at Seawall
20Lot 337, a portion of Terry A. Francois Boulevard, Pier 48, and
21the marginal wharf between Pier 48 and Pier 50. The proposed
22project would include a mix of uses, such as commercial retail
23and office, market-rate and affordable residential, rehabilitation
24of Pier 48, new parks, expansion of the existing China Basin Park
25with a portion of Terry A. Francois Boulevard, and new and
26expanded shoreline access. The Legislature finds that the
27revitalization of Seawall Lot 337 and Pier 48 through mixed-use
28development is of particular importance to the state for the reasons
29stated in Senate Bill 815.

end insert
begin insert

30
(h) The Mission Bay area surrounding Seawall Lot 337 is the
31site of a major mixed-use redevelopment project. As a result of
32Assembly Bill 26, the redevelopment agency was dissolved on
33February 1, 2012, and the successor agency assumed certain
34executory obligations of the redevelopment agency. The successor
35agency commission exercises land use, development, and design
36approval authority for the remaining projects of the former
37redevelopment agency, including Mission Bay.

end insert
begin insert

38
(i) The Mission Bay South redevelopment project area,
39established in 1998 by the board of supervisors’ adoption of the
40Mission Bay South redevelopment plan, lies to the west and south
P7    1of Seawall Lot 337. Parcel P20 is a narrow, undeveloped strip of
2land within the Mission Bay South redevelopment project area
3that is bounded on the north by the northern line of Mission Rock
4Street in its former location, and overlaps a portion of Seawall
5Lot 337, as depicted in Senate Bill 815. In accordance with the
6Mission Bay South redevelopment plan, the Mission Bay developer
7has since realigned Mission Rock Street from its northeasterly
8orientation to an east-west orientation, such that a portion of
9Parcel P20 and the former Mission Rock Street right of way now
10lie north of the northerly line of Mission Rock Street. The
11development proposal for Seawall Lot 337 includes this portion
12of Parcel P20 and former Mission Rock Street.

end insert
begin insert

13
(j) Under its development proposal, the Seawall Lot 337
14developer would realign Terry A. Francois Boulevard and use
15part of the northern section of the street to expand China Basin
16Park. The remaining portion of the realigned Terry A. Francois
17Boulevard would be a working waterfront street that would support
18active maritime, industrial, and production uses at the waterfront.
19Terry A. Francois Boulevard would include areas for social spaces
20and loading zones serving proposed buildings, a pedestrian
21throughway, a shared zone, and the Blue Greenway adjacent to
22the Bay and Piers 48 and 50, contributing to uninterrupted public
23access along San Francisco’s eastern waterfront.

end insert
begin insert

24
(k) This act clarifies that the boundaries of Seawall Lot 337
25extend to the line of Mission Rock Street and to the line of Terry
26A. Francois Boulevard, as those streets have been or may be
27realigned, and to the boundary of China Basin Park as finally
28established, such that Seawall Lot 337 includes those portions of
29Parcel P20 and the former Mission Rock Street right of way
30embraced within those boundaries. This act also allows the
31successor agency to remove Parcel P20 from the Mission Bay
32South redevelopment plan and related documents and agreements
33without the need for Department of Finance or Controller
34approval.

end insert
35begin insert

begin insertSEC. 3.end insert  

end insert
begin insert

For purposes of Senate Bill 815 and Assembly Bill
362649, the boundaries of Seawall Lot 337 extend to the line of, but
37do not include, Third Street on the west, Mission Rock Street on
38the south, and Terry A. Francois Boulevard on the east, as those
39streets are ultimately constructed, realigned, or reconfigured in
40connection with the Mission Bay South redevelopment plan and
P8    1the development of Seawall Lot 337. If there is any conflict between
2this section and the diagram in Section 15 of Senate Bill 815 or
3Section 9 of Assembly Bill 2649, this section shall control.

end insert
4begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

Subdivisions (c), (d), and (f) of Section 34163 of the
5Health and Safety Code, and subdivisions (a) and (b) of Section
634164 of the Health and Safety Code, shall not apply to, and no
7action of the Department of Finance or the Controller shall be
8required for, any action taken by the oversight board, the successor
9agency commission, the board of supervisors, or any other
10governmental body required to act to amend the Mission Bay South
11redevelopment plan to remove Parcel P20 from the Mission Bay
12South redevelopment project area, or to amend any related
13documents or agreements to delete regulatory requirements, zoning
14controls, and the Mission Bay developer’s obligations with respect
15to Parcel P20.

end insert
16begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 4 of Chapter 660 of the Statutes of 2007 is
17amended to read:end insert

18

Sec. 4.  

Subject to the applicable terms and conditions in Section
196 pertaining tobegin delete seawall lotend deletebegin insert Seawall Lotend insert 337, the port may enter into
20a lease of all or any portion of the designated seawall lots free from
21the use requirements established by the public trust, the Burton
22Act trust, and the Burton Act transfer agreement (nontrust lease),
23provided all of the following conditions are met:

24(a) Notwithstanding the Burton Act, Section 718 of the Civil
25Code, Section 37384 of the Government Code, or any other
26provision of law to the contrary, the term of any individual nontrust
27lease, including any extension of the term allowed by right of
28renewal,begin delete doesend deletebegin insert shallend insert not exceed 75begin delete years, and theend deletebegin insert years. Eachend insert
29 nontrust leasebegin delete willend deletebegin insert shallend insert terminate no later than January 1,begin delete 2094.end delete
30begin insert 2094, or the date that is 75 years after the date that the port first
31issues a certificate of occupancy for the improvements on the leased
32site.end insert
Nothing in this section shall be construed as limiting the term
33of any lease, or portion thereof, that is for uses consistent with the
34public trust and the Burton Act.

35(b) (1) Except as provided in this subdivision, all revenues
36received by the port from the nontrust lease will be deposited in a
37separate account in the harbor fund to be expended for the
38preservation of historic piers and historic structures, or for the
39construction and maintenance of waterfront plazas and open space
40required by the special area plan. Revenues shall not be expended
P9    1under this subdivision for historic piers or historic structures on
2land subject to public trust use restrictions unless the executive
3officer of the commission has approved the proposed uses of the
4pier or structure.

5(2) The port may annually transfer from the separate account
6and deposit in the general account of the harbor fund, to be used
7for any purpose consistent with the public trust and the Burton
8Act, an amount equal to the sum of the baseline revenue streams
9for each designated seawall lot subject to a nontrust lease (hereafter
10leased seawall lot), less any revenues received by the port, for the
11year preceding the transfer of funds, from any portion or portions
12of the leased seawall lots that were not subject to a nontrust lease.
13For purposes of this subdivision, the baseline revenue stream for
14a designated seawall lot is the average annual revenue received by
15the port from that seawall lot over the five years prior to January
161, 2008, adjusted for inflation.

17(3) For purposes of this subdivision, the term “revenue” shall
18exclude any costs incurred by the port to administer the lease and
19to operate and maintain the leased property and any improvements
20thereon.

21(4) For each nontrust lease of a designated seawall lot, the port
22shall maintain a separate accounting of all revenues transferred
23pursuant to paragraph (2), all costs excluded pursuant to paragraph
24(3), and all revenues deposited into the separate account.

25(5) If the funds in the separate account exceed the amount
26needed for the preservation of historic piers and historic structures
27and for construction of waterfront plazas and open space, the excess
28funds shall be deposited in the harbor fund to be used for purposes
29consistent with the public trust and the Burton Act.

30(c) The nontrust lease is for fair market value and on terms
31consistent with prudent land management practices as determined
32by the port and subject to approval by the commission as provided
33in paragraph (1).

34(1) Prior to executing the nontrust lease, the port shall submit
35the proposed lease to the commission for its consideration, and
36the commission shall grant its approval or disapproval in writing
37within 90 days of receipt of the lease and supporting
38documentation, including documentation related to value. In
39approving a nontrust lease, the commission shall find that the lease
40meets all of the following:

P10   1(A) Is for fair market value.

2(B) Is consistent with the terms of the public trust and the Burton
3Act trust, other than their restrictions on uses.

4(C) Is otherwise in the best interest of the state.

5(2) Whenever a nontrust lease is submitted to the commission
6for its consideration, the costs of any study or investigation
7undertaken by or at the request of the commission, including
8reasonable reimbursement for time incurred by commission staff
9in processing, investigating, and analyzing such submittal, shall
10be borne by the port; however, the port may seek payment or
11reimbursement for these costs from the proposed lessee.

12begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 7 of Chapter 660 of the Statutes of 2007 is
13amended to read:end insert

14

Sec. 7.  

Sectionsbegin delete 3, 4,end deletebegin insert 3end insert and 6 of this act shall be inoperative
15on January 1, 2094, after which date the use of the designated
16seawall lots shall be consistent with the public trust, the Burton
17Act trust, and the Burton Act transfer agreement. No later than
18January 1, 2094, all structures, buildings, and appurtenances on
19the designated seawall lots not consistent with the purposes of the
20public trust, the Burton Act trust, and Burton Act transfer
21begin delete agreementend deletebegin insert agreement, except those subject to a lease as provided
22in subdivision (a) of Section 4,end insert
shall bebegin delete removedend deletebegin insert repurposedend insert or
23modified, including any necessary restoration or remediation of
24the seawall lots, to facilitate public trust uses.

25begin insert

begin insertSEC. 7.end insert  

end insert
begin insert

If any provision of this act, or its application to any
26person, property, or circumstance, is held invalid by any court,
27the invalidity or inapplicability of that provision shall not affect
28any other provision of this act or the application of that provision
29to any other person, property, or circumstance, and the remaining
30portions of this act shall continue in full force and effect, unless
31enforcement of this act as so modified by and in response to that
32invalidation would be grossly inequitable under all of the
33circumstances, or would frustrate the fundamental purposes of
34this act.

end insert
35begin insert

begin insertSEC. 8.end insert  

end insert
begin insert

The Legislature finds and declares that, because of
36the unique circumstances applicable only to the lands described
37in this act in the City and County of San Francisco, a statute of
38general applicability cannot be enacted within the meaning of
39subdivision (b) of Section 16 of Article IV of the California
40Constitution.

end insert
begin deleteP11   1

SECTION 1.  

Section 10200 of the Public Resources Code is
2amended to read:

3

10200.  

This division shall be known, and may be cited, as the
4California Farmland Conservancy Program Act. Any reference in
5this division to the Agricultural Land Stewardship Program Act
6of 1995 shall mean the California Farmland Conservancy Program
7Act.

end delete


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