AB 2797, as amended, Chiu. City and County of San Francisco: Mission Bay South Project: redevelopment plan.
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.
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.
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
begin delete date the port first issues a certificate ofend delete occupancy for the begin delete improvements on the site.end delete The bill would also prescribe the boundaries of a specified seawall lot for purposes of the
Mission Bay South redevelopment plan.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
For the purposes of this act the following terms
2have the following meanings:
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.
8(b) “Assembly Bill 2649” means Chapter 757 of the Statutes of
10(c) “Board of supervisors” means the Board of Supervisors of
11the City and County of San Francisco.
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, the
15state’s interest in certain tidelands, including filled lands.
16(e) “Burton Act lands” means the tidelands that the state granted
17to the city under the Burton Act, including the San Francisco
18waterfront from the Hyde Street pier to India Basin.
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.
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.
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.
16 “City” means the City and County of San Francisco, a charter
17city and county, and includes the port.
19 “Commission” means the State Lands Commission.
21 “Designated seawall lot” or “designated seawall lots” means
22any of those parcels of real property situated in the city that are
23defined as designated seawall lots in Senate Bill 815 or Assembly
24Bill 2649, as those parcels may be modified by Section 3 of this
8 “Mission Bay developer” means an “owner,” as defined in
9the Mission Bay South owner participation agreement.
11 “Mission Bay South owner participation agreement” means
12 the agreement between the redevelopment agency and Catellus
13Development Corporation, dated November 16, 1998, as amended.
15 “Mission Bay South redevelopment plan” means the
16Redevelopment Plan for the Mission Bay South Project adopted
17by the board of supervisors on October 26, 1998, as amended.
19 “Mission Bay South redevelopment project area” means the
20area in the city subject to the Mission Bay South redevelopment
32 “Oversight board” means the body that the board of
33supervisors created to oversee the fiscal management of the
34successor agency in accordance with Assembly Bill 26.
36 “Parcel P20” means a parcel owned by the port within the
37Mission Bay South redevelopment project area that lies partially
38within the southern portion of Seawall Lot 337.
8 “Port of San Francisco,” “port commission,” or “port” means
9the city acting by and through the San Francisco Port Commission.
19 “Public trust” or “trust” means the common law public
20trust for commerce, navigation, and fisheries.
22 “Redevelopment agency” means the San Francisco
23redevelopment agency, that the board of supervisors formed under
24the former California Community Redevelopment Law and that
25was dissolved on February 1, 2012, by operation of Assembly Bill
28 “San Francisco Bay” or “bay” means those areas defined
29by Section 66610 of the Government Code.
31 “San Francisco waterfront” means the portions of San
32Francisco Bay that the state transferred to the city under the Burton
35 “Seawall Lot 337” means that parcel of real property in the
36city known as Seawall Lot 337, as shown on that certain map
37entitled “revised map of designed seawall lots,” which is on file
begin delete port.end delete
P6 1 “Seawall Lot 337 developer” means the person
2by the port to negotiate exclusively with the port for the master
3development of Seawall Lot 337 and Pier 48, and its successors
4and authorized assigns.
13 “Senate Bill 815” means Chapter 660 of the Statutes of
begin delete in which certain provisions wereend delete amended by Chapter
15208 of the Statutes of
begin delete 2009 andend delete Assembly Bill begin delete 2649.end delete
18 “State” means the State of California.
20 “Successor agency” means the San Francisco Office of
21Community Investment and Infrastructure, which the board of
22supervisors created in accordance with Assembly Bill 26 to serve
23as the successor to the redevelopment agency.
25 “Successor agency commission” means the San Francisco
26Commission on Community Investment and Infrastructure.
31 “Tidelands” means the lands lying below
the elevation of
32ordinary high water, whether filled or unfilled, and includes
The Legislature finds and declares all of the following:
35(a) San Francisco Bay is a valuable public trust asset of the state
36that provides special maritime, navigational, recreational, cultural,
37and historical benefits to the people of the region and the state.
38Tidelands in California are held in trust for enjoyment and use by
39the people of the state under the common law public trust doctrine.
40Public trust lands may be used for water-related purposes, including
P7 1commerce, navigation, fishing, swimming, recreation, open space,
2and wildlife habitat.
3(b) The San Francisco waterfront consists
primarily of sovereign
4tidelands that the state granted to the city pursuant to the Burton
5Act. Under the Burton Act and the city’s charter, the port holds
6and manages the granted lands. The Burton Act authorizes the port
7to use, conduct, operate, maintain, manage, regulate, improve, and
8control the San Francisco waterfront consistent with the public
9trust and the Burton Act trust.
10(c) The San Francisco waterfront provides special maritime,
11navigational, recreational, cultural, and historical benefits to the
12entire San Francisco Bay area and serves as a unique destination
13for the public from throughout the region.
14(d) A unique feature of the San Francisco shoreline is the
15numerous historic maritime resources present on port property,
16many of which are in need of major structural repairs and are not
17currently available for the use and enjoyment of the public. The
18Legislature has previously found that rectifying the deteriorating
19conditions along the San Francisco waterfront, the preservation of
20the numerous historic piers and other historic structures on port
21land, and the construction of waterfront plazas and open space are
22matters of statewide importance that will further the purposes of
23the public trust and the Burton Act trust.
33 The seawall lots are tidelands that were filled and cut off
34from the waterfront by the construction of the great seawall, now
35occupied by the Embarcadero and other roadways, in the late 19th
36and early 20th centuries. Over time, some of the seawall lots,
37including the designated seawall lots, have ceased to be useful in
38whole or in part for the promotion of the public trust and the Burton
39Act trust, except for the production of revenue to support the
40purposes of the Burton Act trust. The designated seawall lots are
P8 1presently either vacant or leased on an interim basis, primarily for
4 (1) In Senate Bill 815, the Legislature found all of the
6(A) The designated seawall lots are, in whole or in part, no
7longer necessary for the purposes of the public trust or Burton Act
9(B) Costs to implement the port’s capital plan exceed projected
10revenues of the port available for these purposes, in part due to
11the port’s inability to make optimal use of the designated seawall
13(C) Future revenues from the development and leasing of the
14designated seawall lots are an essential source of funds to preserve
15the port’s numerous historic piers and historic structures, construct
16and maintain waterfront plazas and open space, and improve public
17access to the waterfront.
18(2) Senate Bill 815 lifted the use restrictions of the public trust
19and Burton Act trust from the designated seawall lots and
20authorized the port to enter into nontrust leases of the lands, subject
21to certain conditions and subject to the requirement that the nontrust
22lease revenues be used for specified trust purposes.
24 Seawall Lot 337, the largest of the designated seawall lots,
25is located just south of China Basin and is presently used as a
26surface parking lot. Senate Bill 815 depicts Seawall Lot 337 as
27bounded by Mission Rock Street, Terry A. Francois Boulevard,
28and Third Street. Following an extensive community process led
29by a citywide advisory panel and a solicitation process to identify
30qualified developers, the port commission entered into exclusive
31negotiations with the Seawall Lot 337 developer for the lease,
32construction, and operation of the proposed project at Seawall Lot
33337, a portion of Terry A. Francois Boulevard, Pier 48, and the
34marginal wharf between Pier 48 and Pier 50. The proposed project
35would include a mix of uses, such as commercial retail and office,
36market-rate and affordable residential, rehabilitation of Pier 48,
37new parks, expansion of the existing China Basin Park with a
38portion of Terry A. Francois Boulevard, and new and expanded
39shoreline access. The Legislature finds that the revitalization of
40Seawall Lot 337 and Pier 48 through mixed-use development is
P9 1of particular importance to the state for the reasons stated in Senate
4 The Mission Bay area surrounding Seawall Lot 337 is the
5site of a major mixed-use redevelopment project. As a result of
6Assembly Bill 26, the redevelopment agency was dissolved on
7February 1, 2012, and the successor agency assumed certain
8executory obligations of the redevelopment agency. The successor
9agency commission exercises land use, development, and design
10approval authority for the remaining projects of the former
11redevelopment agency, including Mission Bay.
13 The Mission Bay South redevelopment project area,
14established in 1998 by the board of supervisors’ adoption of the
15Mission Bay South redevelopment plan, lies to the west and south
16of Seawall Lot 337. Parcel P20 is a narrow, undeveloped strip of
17land within the Mission Bay South redevelopment project area
18that is bounded on the north by the northern line of Mission Rock
19Street in its former location, and overlaps a portion of Seawall Lot
20337, as depicted in Senate Bill 815. In accordance with the Mission
21Bay South redevelopment plan, the Mission Bay developer has
22since realigned Mission Rock Street from its northeasterly
23orientation to an east-west orientation, such that a portion of Parcel
24P20 and the former Mission Rock Street right of way now lie north
25of the northerly line of Mission Rock Street. The development
26proposal for Seawall Lot 337 includes this portion of Parcel P20
27and former Mission Rock Street.
29 Under its development proposal, the Seawall Lot 337
30developer would realign Terry A. Francois Boulevard and use part
31of the northern section of the street to expand China Basin Park.
32The remaining portion of the realigned Terry A. Francois
33Boulevard would be a working waterfront street that would support
34active maritime, industrial, and production uses at the waterfront.
35Terry A. Francois Boulevard would include areas for social spaces
36and loading zones serving proposed buildings, a pedestrian
37throughway, a shared zone, and the Blue Greenway adjacent to
38the Bay and Piers 48 and 50, contributing to uninterrupted public
39access along San Francisco’s eastern waterfront.
29 This act clarifies that the boundaries of Seawall Lot 337
30extend to the line of Mission Rock Street and to the line of Terry
31A. Francois Boulevard, as those streets have been or may be
32realigned, and to the boundary of China Basin Park as finally
33established, such that Seawall Lot 337 includes those portions of
34Parcel P20 and the former Mission Rock Street right of way
35embraced within those boundaries. This act also allows the
36successor agency to remove Parcel P20 from the Mission Bay
37South redevelopment plan and related documents and agreements
38without the need for Department of Finance or Controller approval.
For purposes of Senate Bill 815 and Assembly Bill
52649, the boundaries of Seawall Lot 337 extend to the line of, but
6do not include, Third Street on the west, Mission Rock Street on
7the south, and Terry A. Francois Boulevard on the east, as those
8streets are ultimately constructed, realigned, or reconfigured in
9connection with the Mission Bay South redevelopment plan and
10the development of Seawall Lot 337. If there is any conflict
11between this section and the diagram in Section 15 of Senate Bill
12815 or Section 9 of Assembly Bill 2649, this section shall control.
Subdivisions (c), (d), and (f) of Section 34163 of the
14Health and Safety Code, and subdivisions (a) and (b) of Section
1534164 of the Health and Safety Code, shall not apply to, and no
16action of the Department of Finance or the Controller shall be
17required for, any action taken by the oversight board, the successor
18agency commission, the board of supervisors, or any other
19governmental body required to act to amend the Mission Bay South
20redevelopment plan to remove Parcel P20 from the Mission Bay
21South redevelopment project area, or to amend any related
22documents or agreements to delete regulatory requirements, zoning
23controls, and the Mission Bay developer’s obligations with respect
24to Parcel P20.
Section 4 of Chapter 660 of the Statutes of 2007 is
26amended to read:
begin deleteSubject to the applicable terms and conditions in Section Seawall Lot 337, the port may enter into
286 pertaining to end delete
29a lease of all or any portion of the designated seawall lots free from
30the use requirements established by the public trust, the Burton
31Act trust, and the Burton Act transfer agreement
begin delete (nontrust lease),
32provided all of the following conditions are met:end delete
38(a) Notwithstanding the Burton Act, Section 718 of the Civil
39Code, Section 37384 of the Government Code, or any other
40provision of law to the contrary, the term of any individual nontrust
P12 1lease, including any extension of the term allowed by right of
2renewal, shall not exceed 75
begin delete years.end delete Each
4shall terminate no later than January 1,
52094, or the date that is 75 years after the date that the port first
6issues a certificate of occupancy for the improvements on the
begin delete site.end delete Nothing in this section
8shall be construed as limiting the term of any lease, or portion
9thereof, that is for uses consistent with the public trust and the
11(b) (1) Except as provided in this subdivision, all revenues received by the port
begin delete from the nontrust lease willend delete
13 be deposited in a separate account in the harbor fund to be
14expended for the preservation of historic piers and historic
15structures, or for the construction and maintenance of waterfront
16plazas and open
begin delete space required by the special area plan. Revenuesend delete
24 shall not be expended under this subdivision for
25historic piers or historic structures on land subject to public trust
26use restrictions unless the executive officer of the commission has
27approved the proposed uses of the pier or
begin delete structure.end delete
32(2) The port may annually transfer from the separate account
33and deposit in the general account of the harbor fund, to be used
34for any purpose consistent with the public trust and the Burton
35Act, an amount equal to the sum of the baseline revenue streams
36for each designated seawall lot subject to
begin delete aend delete nontrust
begin delete lease (hereafter leasedend delete seawall begin delete lot),end delete less any
38revenues received by the port, for the year preceding the transfer
39of funds, from any portion or portions of the leased seawall lots
40that were not subject to a nontrust lease. For purposes of this
P13 1subdivision, the baseline revenue stream for a designated seawall
2lot is the average annual revenue received by the port from that
3seawall lot over the five years prior to January 1, 2008, adjusted
5(3) For purposes of this subdivision, the term “revenue” shall
6exclude any costs incurred by the port to administer the lease and
7to operate and maintain the leased property and any improvements
9(4) For each nontrust lease of a designated seawall lot, the port
10shall maintain a separate accounting of all revenues transferred
11pursuant to paragraph (2), all costs excluded pursuant to paragraph
12(3), and all revenues deposited into the separate account.
13(5) If the funds in the separate account exceed the amount
14needed for the preservation of historic piers and historic structures
15and for construction of waterfront plazas and open space, the excess
16funds shall be deposited in the harbor fund to be used for purposes
17consistent with the public trust and the Burton Act.
begin deleteThe end deletenontrust lease begin delete isend delete for fair market value and on
19terms consistent with prudent land management practices as
20determined by the port and subject to approval by the commission
21as provided in paragraph (1).
22(1) Prior to executing
begin delete theend delete nontrust lease, the port shall submit
23the proposed lease to the commission for its consideration, and
24the commission shall grant its approval or disapproval in writing
25within 90 days of receipt of the lease and supporting
26documentation, including documentation related to value. In
27approving a nontrust lease, the commission shall find that the lease
28meets all of the following:
29(A) Is for fair market value.
30(B) Is consistent with the terms of the public trust and the Burton
31Act trust, other than their restrictions on uses.
32(C) Is otherwise in the best interest of the state.
33(2) Whenever a nontrust lease is submitted to the
34for its consideration, the costs of any study or investigation
35undertaken by or at the request of the commission, including
36reasonable reimbursement for time incurred by commission staff
37in processing, investigating, and analyzing such submittal, shall
38be borne by the port; however, the port may seek payment or
39reimbursement for these costs from the proposed lessee.
Section 7 of Chapter 660 of the Statutes of 2007 is
27amended to read:
begin delete 3 andend delete 6 of this act shall be
31January 1, 2094, after which date the use of the designated
begin delete lotsend delete shall be consistent with the public trust, the Burton
33Act trust, and the Burton Act transfer agreement. No later than
34January 1, 2094, all structures, buildings, and
begin delete theend delete designated seawall begin delete lotsend delete not consistent
37with the purposes of the public trust, the Burton Act trust, and
38Burton Act transfer agreement,
begin delete except those subject to a lease as shall be repurposed or
39provided in subdivision (a) of Section 4,end delete
P17 1modified, including any necessary restoration or remediation of
begin delete lots,end delete to facilitate public trust uses.
If any provision of this act, or its application to any
5person, property, or circumstance, is held invalid by any court, the
6invalidity or inapplicability of that provision shall not affect any
7other provision of this act or the application of that provision to
8any other person, property, or circumstance, and the remaining
9portions of this act shall continue in full force and effect, unless
10enforcement of this act as so modified by and in response to that
11invalidation would be grossly inequitable under all of the
12circumstances, or would frustrate the fundamental purposes of this
The Legislature finds and declares that, because of the
16unique circumstances applicable only to the lands described in this
17act in the City and County of San Francisco, a statute of general
18applicability cannot be enacted within the meaning of subdivision
19(b) of Section 16 of Article IV of the California Constitution.