Amended in Assembly April 13, 2016

Amended in Assembly April 5, 2016

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 amend Sections 4 and 7 of, and to add Section 4.5 to, Chapter 660 of the Statutes of 2007, relating to tidelands and submerged lands.


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 initial occupancy date for the leased site or development parcel. The bill would also prescribe the boundaries of a specified seawall lot for purposes of the Mission Bay South redevelopment plan. The bill would authorize the port to use its nontrust lease revenues from specified development parcels in a specified seawall lot to make port advances, as defined, to fund specified infrastructure if the commissionbegin delete makes specified findings related to the use of the development parcelsend deletebegin insert has approved the port advancesend insert and complies with certain procedures for the disposition of those parcels, as prescribed.

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:

P2    1


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.

10(i) “CFD law” means the Mello-Roos Community Facilities
11Act of 1982 (Chapter 2.5 (commencing with Section 53311)) of
12Part 1 of Division 2 of Title 5 of the Government Code) or the San
13Francisco Special Tax Financing Law (San Francisco Admin. Code
14Ch. 43, Art. X), as applicable.

15(j) “City” means the City and County of San Francisco, a charter
16city and county, and includes the port.

17(k) “Commission” means the State Lands Commission.

18(l) “Designated seawall lot” or “designated seawall lots” means
19any of those parcels of real property situated in the city that are
20defined as designated seawall lots in Senate Bill 815 or Assembly
21Bill 2649, as those parcels may be modified by Section 3 of this

23(m) “Development parcel” means a portion of a designated
24seawall lot that is subdivided for construction improvements, or
25rehabilitation of historic buildings for reuse, and that will be used
26for nontrust land uses.

27(n) “IFD law” means the Infrastructure Financing Districts law
28set forth in Chapter 2.8 (commencing with Section 53395) of Part
291 of Division 2 of Title 5 of the Government Code, which
30authorizes the use of property tax increment to finance

32(o) “Infrastructure costs” or “costs of infrastructure” means the
33cost of constructing the Seawall Lot 337 infrastructure, including
34related costs of planning and design work and a return on developer
35equity, as provided in a plan of finance in a disposition and
36developmentbegin delete agreement for which the commission has made
37findings in accordance with paragraph (3) of subdivision (a) of
38Section 4.5 of Senate Bill 815.end delete
begin insert agreement.end insert

P4    1(p) “Initial occupancy date” means the date on which the port
2issues the first certificate of occupancy for a building on the leased
3seawall lot or development parcel in Seawall Lot 337, as applicable.

4(q) “Mission Bay developer” means an “owner,” as defined in
5the Mission Bay South owner participation agreement.

6(r) “Mission Bay South owner participation agreement” means
7 the agreement between the redevelopment agency and Catellus
8Development Corporation, dated November 16, 1998, as amended.

9(s) “Mission Bay South redevelopment plan” means the
10Redevelopment Plan for the Mission Bay South Project adopted
11by the board of supervisors on October 26, 1998, as amended.

12(t) “Mission Bay South redevelopment project area” means the
13area in the city subject to the Mission Bay South redevelopment

15(u) “Nontrust lease revenues” means revenues that the port
16receives from nontrust leases of designated seawall lots or
17development parcels in Seawall Lot 337, as applicable.

18(v) “Nontrust sources” means sources of consideration other
19than nontrust lease revenues or moneys in the port’s harbor fund.
20Nontrust sources include, without limitation, fee credits that may
21be applied to offset local impact fees or exactions, special taxes,
22tax increment, proceeds of general obligation bonds, proceeds of
23community facilities bonds, and proceeds of tax allocation bonds.

24(w) “Oversight board” means the body that the board of
25supervisors created to oversee the fiscal management of the
26successor agency in accordance with Assembly Bill 26.

27(x) “Parcel P20” means a parcel owned by the port within the
28Mission Bay South redevelopment project area that lies partially
29within the southern portion of Seawall Lot 337.

30(y) “Port advances” meansbegin insert a loan of trust assets where the port
31usesend insert
nontrust lease revenuesbegin delete that the port usesend delete to pay directly or
32to reimburse the Seawall Lot 337 developer or any district
33providing project-based public financing for costs of infrastructure
34in accordance with the terms and conditions of this act. Port
35advances do not include nontrust lease revenues that the port uses
36to pay directly for the preservation of historic piers and historic
37structures or for purposes that are otherwise authorized by this act.

38(z) “Port of San Francisco,” “port commission,” or “port” means
39the city acting by and through the San Francisco Port Commission.

P5    1(aa) “Project-based public financing” means special taxes from
2development parcels in community facilities district project areas
3formed under CFD law, property tax increment from development
4parcels in infrastructure financing district project areas established
5under the IFD law, bond proceeds secured by special taxes, tax
6increment, or both, and any other mechanisms available to finance
7infrastructure and public facilities that rely on revenues produced
8by the area to be improved.

9(ab) “Public trust” or “trust” means the common law public
10trust for commerce, navigation, and fisheries.

11(ac) “Redevelopment agency” means the San Francisco
12redevelopment agency, that the board of supervisors formed under
13the former California Community Redevelopment Law and that
14was dissolved on February 1, 2012, by operation of Assembly Bill

16(ad) “San Francisco Bay” or “bay” means those areas defined
17by Section 66610 of the Government Code.

18(ae) “San Francisco waterfront” means the portions of San
19Francisco Bay that the state transferred to the city under the Burton

21(af) “Seawall Lot 337” means that parcel of real property in the
22city known as Seawall Lot 337, as shown on that certain map
23entitled “revised map of designed seawall lots,” which is on file
24with the port, as those boundaries may be modified by Section 3
25of this act.

26(ag) “Seawall Lot 337 developer” means the person selected by
27the port to negotiate exclusively with the port for the master
28development of Seawall Lot 337 and Pier 48, and its successors
29and authorized assigns.

30(ah) “Seawall Lot 337 infrastructure” means infrastructure and
31other public facilities that serve Seawall Lot 337 and are located
32on Seawall Lot 337 or on lands immediately adjacent to the seawall
33lot area, such as water, sewer, stormwater management, and other
34utility installations, streets, roadways, sidewalks, parks, public
35access and open space areas, shoreline improvements, and other
36public facilities.

37(ai) “Senate Bill 815” means Chapter 660 of the Statutes of
382007, as amended by Chapter 208 of the Statutes of 2009,
39Assembly Bill 2649, and this act.

40(aj) “State” means the State of California.

P6    1(ak) “Successor agency” means the San Francisco Office of
2Community Investment and Infrastructure, which the board of
3supervisors created in accordance with Assembly Bill 26 to serve
4as the successor to the redevelopment agency.

5(al) “Successor agency commission” means the San Francisco
6Commission on Community Investment and Infrastructure.

7(am) “Termination date” means the date determined in
8accordance with subdivision (a) of Section 4 of Senate Bill 815
9for the termination of a nontrust lease.

10(an) “Tidelands” means the lands lying below the elevation of
11ordinary high water, whether filled or unfilled, and includes
12submerged lands.


SEC. 2.  

The Legislature finds and declares all of the following:

14(a) San Francisco Bay is a valuable public trust asset of the state
15that provides special maritime, navigational, recreational, cultural,
16and historical benefits to the people of the region and the state.
17Tidelands in California are held in trust for enjoyment and use by
18the people of the state under the common law public trust doctrine.
19Public trust lands may be used for water-related purposes, including
20commerce, navigation, fishing, swimming, recreation, open space,
21and wildlife habitat.

22(b) The San Francisco waterfront consists primarily of sovereign
23tidelands that the state granted to the city pursuant to the Burton
24Act. Under the Burton Act and the city’s charter, the port holds
25and manages the granted lands. The Burton Act authorizes the port
26to use, conduct, operate, maintain, manage, regulate, improve, and
27control the San Francisco waterfront consistent with the public
28trust and the Burton Act trust.

29(c) The San Francisco waterfront provides special maritime,
30navigational, recreational, cultural, and historical benefits to the
31entire San Francisco Bay area and serves as a unique destination
32for the public from throughout the region.

33(d) A unique feature of the San Francisco shoreline is the
34numerous historic maritime resources present on port property,
35many of which are in need of major structural repairs and are not
36currently available for the use and enjoyment of the public. The
37Legislature has previously found that rectifying the deteriorating
38conditions along the San Francisco waterfront, the preservation of
39the numerous historic piers and other historic structures on port
40land, and the construction of waterfront plazas and open space are
P7    1matters of statewide importance that will further the purposes of
2the public trust and the Burton Act trust.

3(e) The San Francisco shoreline is a valuable public trust asset,
4a vibrant and world-renowned tourist destination, and a vital
5component of the regional, state, and national economies. The
6success of the port’s efforts to revitalize the waterfront depends,
7in part, on strategies for optimizing uses of and increasing revenues
8and other public trust benefits from port lands in addition to using
9funding sources other than the port harbor fund to finance
10development on port lands.

11(f) The seawall lots are tidelands that were filled and cut off
12from the waterfront by the construction of the great seawall, now
13occupied by the Embarcadero and other roadways, in the late 19th
14and early 20th centuries. Over time, some of the seawall lots,
15including the designated seawall lots, have ceased to be useful in
16whole or in part for the promotion of the public trust and the Burton
17Act trust, except for the production of revenue to support the
18purposes of the Burton Act trust. The designated seawall lots are
19presently either vacant or leased on an interim basis, primarily for
20commuter parking.

begin delete

21(g) (1) In Senate Bill 815, the Legislature found all of the

23(A) The designated seawall lots are, in whole or in part, no
24longer necessary for the purposes of the public trust or Burton Act

26(B) Costs to implement the port’s capital plan exceed projected
27revenues of the port available for these purposes, in part due to
28the port’s inability to make optimal use of the designated seawall

30(C) Future revenues from the development and leasing of the
31designated seawall lots are an essential source of funds to preserve
32the port’s numerous historic piers and historic structures, construct
33and maintain waterfront plazas and open space, and improve public
34access to the waterfront.

35(2) Senate Bill 815 lifted the use restrictions of the public trust
36and Burton Act trust from the designated seawall lots and
37authorized the port to enter into nontrust leases of the lands, subject
38to certain conditions and subject to the requirement that the nontrust
39lease revenues be used for specified trust purposes.

end delete
begin delete

24 40(h)

end delete

P8    1begin insert(g)end insert Seawall Lot 337, the largest of the designated seawall lots,
2is located just south of China Basin and is presently used as a
3surface parking lot. Senate Bill 815 depicts Seawall Lot 337 as
4bounded by Mission Rock Street, Terry A. Francois Boulevard,
5and Third Street. Following an extensive community process led
6by a citywide advisory panel and a solicitation process to identify
7qualified developers, the port commission entered into exclusive
8negotiations with the Seawall Lot 337 developer for the lease,
9construction, and operation of the proposed project at Seawall Lot
10337, a portion of Terry A. Francois Boulevard, Pier 48, and the
11marginal wharf between Pier 48 and Pier 50. The proposed project
12would include a mix of uses, such as commercial retail and office,
13market-rate and affordable residential, rehabilitation of Pier 48,
14new parks, expansion of the existing China Basin Park with a
15portion of Terry A. Francois Boulevard, and new and expanded
16shoreline access. The Legislature finds that the revitalization of
17Seawall Lot 337 and Pier 48 through mixed-use development is
18of particular importance to the state for the reasons stated in Senate
19Bill 815.

begin delete

4 20(i)

end delete

21begin insert(h)end insert The Mission Bay area surrounding Seawall Lot 337 is the
22site of a major mixed-use redevelopment project. As a result of
23Assembly Bill 26, the redevelopment agency was dissolved on
24February 1, 2012, and the successor agency assumed certain
25executory obligations of the redevelopment agency. The successor
26agency commission exercises land use, development, and design
27approval authority for the remaining projects of the former
28redevelopment agency, including Mission Bay.

begin delete

13 29(j)

end delete

30begin insert(i)end insert The Mission Bay South redevelopment project area,
31established in 1998 by the board of supervisors’ adoption of the
32Mission Bay South redevelopment plan, lies to the west and south
33of Seawall Lot 337. Parcel P20 is a narrow, undeveloped strip of
34land within the Mission Bay South redevelopment project area
35that is bounded on the north by the northern line of Mission Rock
36Street in its former location, and overlaps a portion of Seawall Lot
37337, as depicted in Senate Bill 815. In accordance with the Mission
38Bay South redevelopment plan, the Mission Bay developer has
39since realigned Mission Rock Street from its northeasterly
40orientation to an east-west orientation, such that a portion of Parcel
P9    1P20 and the former Mission Rock Street right of way now lie north
2of the northerly line of Mission Rock Street. The development
3proposal for Seawall Lot 337 includes this portion of Parcel P20
4and former Mission Rock Street.

begin delete

29 5(k)

end delete

6begin insert(j)end insert Under its development proposal, the Seawall Lot 337
7developer would realign Terry A. Francois Boulevard and use part
8of the northern section of the street to expand China Basin Park.
9The remaining portion of the realigned Terry A. Francois
10Boulevard would be a working waterfront street that would support
11active maritime, industrial, and production uses at the waterfront.
12Terry A. Francois Boulevard would include areas for social spaces
13and loading zones serving proposed buildings, a pedestrian
14throughway, a shared zone, and the Blue Greenway adjacent to
15the Bay and Piers 48 and 50, contributing to uninterrupted public
16access along San Francisco’s eastern waterfront.

begin delete

P10 1 17(l)

end delete

18begin insert(k)end insert In connection with the project, a substantial investment in
19new infrastructure and public facilities is necessary for the port to
20fully realize the public benefits of those portions of Seawall Lot
21337 that will be used for trust purposes, and to maximize the value
22of development parcels that will be subject to nontrust leases. The
23infrastructure costs for Seawall Lot 337 are expected to exceed
24one hundred fifty million dollars ($150,000,000). The development
25proposal for Seawall Lot 337 provides for the Seawall Lot 337
26developer to construct the needed infrastructure and public
27facilities, which would be funded by developer equity to the extent
28that port advances and project-based public financing are not then
29available. Project-based public financing would be used to pay
30directly or to reimburse the Seawall Lot 337 developer for its equity
31advances and the port for port advances for infrastructure costs
32under the CFD law, IFD law, and other applicable laws.

begin delete

16 33(m)

end delete

34begin insert(l)end insert Because special taxes, property tax increment, and other
35nontrust funding sources arising from the project may not become
36available until well after the port receives nontrust lease revenues
37from development parcels in Seawall Lot 337, it is critical that the
38port be able tobegin delete useend deletebegin insert loanend insert those revenues to pay Seawall Lot 337
39infrastructure costs to minimize the cost of development capital
40and maximize the land value that the port is able to realize for
P10   1preservation of its historic piers and historic structures, and for
2other public trust uses. This act authorizes the port to makebegin insert portend insert
3 advances of nontrust lease revenues from Seawall Lot 337 to pay
4Seawall Lot 337 infrastructure costs, subject to the requirements
5of this act.

begin delete

29 6(n)

end delete

7begin insert(m)end insert This act clarifies that the boundaries of Seawall Lot 337
8extend to the line of Mission Rock Street and to the line of Terry
9A. Francois Boulevard, as those streets have been or may be
10realigned, and to the boundary of China Basin Park as finally
11established, such that Seawall Lot 337 includes those portions of
12Parcel P20 and the former Mission Rock Street right of way
13embraced within those boundaries. This act also allows the
14successor agency to remove Parcel P20 from the Mission Bay
15South redevelopment plan and related documents and agreements
16without the need for Department of Finance or Controller approval.

begin delete

39 17(o)

end delete

18begin insert(n)end insert This act also amends Senate Bill 815 to provide that the
1975-year limitation on the term of authorized nontrust leases for
20designated seawall lots and development parcels at Seawall Lot
21337, as applicable, begins to run on the initial occupancy date for
22the leased site.


SEC. 3.  

For purposes of Senate Bill 815 and Assembly Bill
242649, the boundaries of Seawall Lot 337 extend to the line of, but
25do not include, Third Street on the west, Mission Rock Street on
26the south, and Terry A. Francois Boulevard on the east, as those
27streets are ultimately constructed, realigned, or reconfigured in
28connection with the Mission Bay South redevelopment plan and
29the development of Seawall Lot 337. If there is any conflict
30between this section and the diagram in Section 15 of Senate Bill
31815 or Section 9 of Assembly Bill 2649, this section shall control.


SEC. 4.  

Subdivisions (c), (d), and (f) of Section 34163 of the
33Health and Safety Code, and subdivisions (a) and (b) of Section
3434164 of the Health and Safety Code, shall not apply to, and no
35action of the Department of Finance or the Controller shall be
36required for, any action taken by the oversight board, the successor
37agency commission, the board of supervisors, or any other
38governmental body required to act to amend the Mission Bay South
39redevelopment plan to remove Parcel P20 from the Mission Bay
40South redevelopment project area, or to amend any related
P11   1documents or agreements to delete regulatory requirements, zoning
2controls, and the Mission Bay developer’s obligations with respect
3to Parcel P20.


SEC. 5.  

Section 4 of Chapter 660 of the Statutes of 2007 is
5amended to read:


Sec. 4.  

Except for Seawall Lot 337, the port may enter into a
7lease of all or any portion of the designated seawall lots free from
8the use requirements established by the public trust, the Burton
9Act trust, and the Burton Act transfer agreement (nontrust lease)
10subject to the requirements of this section. For Seawall Lot 337,
11the port may enter into nontrust leases of development parcels,
12subject to the requirements of this section, if the commission has
13begin delete made all of the findings inend deletebegin insert approved port advances pursuant toend insert
14 paragraph (3) of subdivision (a) of Section 4.5, and if all of the
15 conditions ofbegin insert this section andend insert Section 6 are met.

16(a) Notwithstanding the Burton Act, Section 718 of the Civil
17Code, Section 37384 of the Government Code, or any other
18provision of law to the contrary, the term of any individual nontrust
19lease, including any extension of the term allowed by right of
20renewal, shall not exceed 75 years from the initial occupancy date
21for the leased site or development parcel. Each nontrust lease shall
22terminate no later than the date that is the later of January 1, 2094,
23or the date that is 75 years after the date that the port first issues
24a certificate of occupancy for the improvements on the leased site
25or development parcel. Nothing in this section shall be construed
26as limiting the term of any lease, or portion thereof, that is for uses
27consistent with the public trust and the Burton Act.

28(b) (1) (A) Except as provided in this subdivision, all nontrust
29lease revenues received by the port shall be deposited in a separate
30account in the harbor fund to be expended for the preservation of
31historic piers and historic structures, or for the construction and
32maintenance of waterfront plazas and open space.

33(B) The port may use its nontrust lease revenues from
34development parcels in Seawall Lot 337 to make port advances to
35fund Seawall Lot 337 infrastructure, except for facilities for which
36expenditures are authorized under subparagraph (A), if the
37commission hasbegin delete made the findings underend deletebegin insert approved port advances
38underend insert
paragraph (3) of subdivision (a) of Section 4.5.

39 (C) Revenues shall not be expended under this subdivision for
40historic piers or historic structures on land subject to public trust
P12   1use restrictions unless the executive officer of the commission has
2approved the proposed uses of the pier orbegin delete structure or, for Pier 48
3and related historic structures, the executive officer of the
4commission has made the findings under paragraph (3) of
5subdivision (a) of Section 4.5 and has otherwise complied with
6this act.end delete
begin insert structure.end insert

7(2) The port may annually transfer from the separate account
8and deposit in the general account of the harbor fund, to be used
9for any purpose consistent with the public trust and the Burton
10Act, an amount equal to the sum of the baseline revenue streams
11for each designated seawall lot subject to one or more nontrust
12leases (leased seawall lots), less any revenues received by the port,
13for the year preceding the transfer of funds, from any portion or
14portions of the leased seawall lots that were not subject to a
15nontrust lease. For purposes of this subdivision, the baseline
16revenue stream for a designated seawall lot is the average annual
17revenue received by the port from that seawall lot over the five
18years prior to January 1, 2008, adjusted for inflation.

19(3) For purposes of this subdivision, the term “revenue” shall
20exclude any costs incurred by the port to administer the lease and
21to operate and maintain the leased property and any improvements

23(4) For each nontrust lease of a designated seawall lot, the port
24shall maintain a separate accounting of all revenues transferred
25pursuant to paragraph (2), all costs excluded pursuant to paragraph
26(3), and all revenues deposited into the separate account.

27(5) If the funds in the separate account exceed the amount
28needed for the preservation of historic piers and historic structures
29and for construction of waterfront plazas and open space, the excess
30funds shall be deposited in the harbor fund to be used for purposes
31consistent with the public trust and the Burton Act.

32(c) A nontrust lease shall be for fair market value and on terms
33consistent with prudent land management practices as determined
34by the port and subject to approval by the commission as provided
35in paragraph (1).

36(1) Prior to executing a nontrust lease, the port shall submit the
37proposed lease to the commission for its consideration, and the
38commission shall grant its approval or disapproval in writing within
3990 days of receipt of the lease and supporting documentation,
40including documentation related to value. In approving a nontrust
P13   1lease, the commission shall find that the lease meets all of the

3(A) Is for fair market value.

4(B) Is consistent with the terms of the public trust and the Burton
5Act trust, other than their restrictions on uses.

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

7(2) Whenever a nontrust lease is submitted to the commission
8for its consideration, the costs of any study or investigation
9undertaken by or at the request of the commission, including
10reasonable reimbursement for time incurred by commission staff
11in processing, investigating, and analyzing such submittal, shall
12be borne by the port; however, the port may seek payment or
13reimbursement for these costs from the proposed lessee.


SEC. 6.  

Section 4.5 is added to Chapter 660 of the Statutes of
152007, to read:


Sec. 4.5.  

(a) For nontrust leases of Seawall Lot 337 that are
17entered into in accordance with the terms of a disposition and
18development agreement for the master development of Seawall
19Lot 337, the commission shall consider whether the port will
20receive consideration equal to the fair market value on terms
21consistent with prudent land management practices based on, and
22in accordance with, all of the following procedures:

23(1) At least 30 days prior to approval by the board of supervisors
24of the development project for Seawall Lot 337, the port shall
25submit the proposed disposition and development agreement
26between the master developer and the port governing the master
27development of Seawall Lot 337 and the following information,
28to the extent not contained in the agreement, to the commission
29for its consideration:

30(A) The proposed procedures for the disposition of nontrust
31development parcels and including the proposed plan of finance
32for the development project that describes the proposed port
33advances for Seawall Lot 337 infrastructure costs.

34(B) The proposed procedures for establishing the fair market
35value of each nontrust lease of a development parcel, consistent
36with the land uses permitted under the disposition and development
37agreement, including the appraisal instructions.

38(C) A description of the nontrust sources that the port expects
39to receive for the project and how theses nontrust sources will be
40applied to the project.

P14   1(D) A description of the manner by which the port will select
2the developer of each development parcel, including the form of
3ground lease.

4(2) Following approval of the development project for Seawall
5Lot 337 by the board of supervisors, the port shall submit to the
6commission the project documents described in paragraph (1) as
7finally approved by the board of supervisors.

8(3) Within 75 days after approval of the project by the board of
9supervisors and receipt of all required documentation from the
10port, the commission shallbegin delete consider whether to make all of the
11following findings:end delete
begin insert either approve or deny the port advances from
12nontrust lease revenues for Seawall Lot 337 infrastructure based
13on the information it is required to consider by this section and
14whether port advances are consistent with the goals of Senate Bill
15815.end insert

begin delete

16(A) The disposition and development agreement, including the
17plan of finance and use of port advances, the procedures for
18establishing rent for future nontrust leases of individual
19development parcels, including appraisal instructions, and other
20consideration to the port will provide the port with fair market

22(B) The submitted documentation identifies the projected
23amount of port advances and the nontrust sources projected to
24repay port advances with interest. If port advances are not projected
25to be repaid with interest within 40 years after the port makes its
26first port advance, the projections and other evidence shall
27demonstrate the availability and viability of those sources for full
28repayment within an additional period that the commission finds
29reasonable and consistent with subparagraph (E).

30(C) The master development on the whole is consistent with
31the port study required by Section 6.

32(D) The use of port advances will not substantially interfere
33with trust uses and purposes and will reduce Seawall Lot 337
34infrastructure financing costs.

35(E) The port advances will generate increased revenues for the
36trust, including revenues available for historic pier and historic
37structure preservation.

38(F) The master development is consistent with the terms of the
39public trust and the Burton Act trust, other than their restrictions
40on uses.

P15   1(G) The development is otherwise in the best interest of the

3(4) If the commission does not make the findings under
4paragraph (3), the port advances from nontrust lease revenues for
5Seawall Lot 337 infrastructure shall not be allowed.

end delete
begin delete

29 6(5)

end delete

7begin insert(4)end insert The port shall bear the costs of any study or investigation
8that the commission undertakes or requests, including reasonable
9reimbursement for commission staff time in processing,
10investigating, and analyzing the port’s submittal. The port’s
11reimbursement obligation does not affect its ability to seek payment
12or reimbursement for these costs from the master developer.

13(b) In addition to any statement of expenditures and revenues
14that the port is required by law to submit to the commission
15annually, the port shall provide a separate accounting of all
16consideration from nontrust sources and other port revenues spent
17on Seawall Lot 337, including any port advances and any revenues
18from nontrust sources received by the port to repay those advances.

19(c) The port shall provide the commission with copies of the
20final audit report for each phase of the project and the final audit
21report for the project within 90 days after the port receives each
22audit report.

23(d) If, within 20 years after the first port advance, the port has
24not submitted an audit report to the commission indicating that all
25of the port advances have been repaid, the port shall report to the
26commission the total amount of revenues from nontrust leases that
27the port used to fund port advances, the amount that the port has
28received to repay port advances, the projected sources to repay
29any balance still owing on account of port advances, and the
30expected timing of repayment of the balance still owing. Thereafter,
31the port shall provide supplemental reports containing updates to
32this information to the commission every five years.

begin delete

33(e) If, by the date 40 years after the first port advance, the
34amount of port advances still exceeds the repayments and other
35consideration from nontrust sources received by the port for its
36advances, then the commission, following consultation with the
37port, may require the port to take actions to remedy any shortfall
38as may be in the best interest of the state. In determining the
39amount of repayments that the port has received under this
40subdivision, the commission may consider all forms of
P16   1consideration from nontrust sources received by the port after the
2first port advance has been made.

end delete
begin insert

(e) The port shall ensure repayment, with interest, of each port
4advance within 50 years after the port advance is made. The port
5may extend the repayment period beyond 50 years subject to
6commission approval. The commission shall base its approval on
7whether the port is taking actions to remedy any shortfall in

end insert

SEC. 7.  

Section 7 of Chapter 660 of the Statutes of 2007 is
10amended to read:


Sec. 7.  

Sections 3, 4, 4.5, and 6 of this act shall be inoperative
12as to a designated seawall lot on the later of (a) the last termination
13date of any nontrust lease on the site, or (b) on January 1, 2094,
14after which later date the use of the designated seawall lot shall
15be consistent with the public trust, the Burton Act trust, and the
16Burton Act transfer agreement. No later than January 1, 2094, or
17the last termination date of any nontrust lease on the site, whichever
18is later, all structures, buildings, and appurtenances on a designated
19seawall lot not consistent with the purposes of the public trust, the
20Burton Act trust, and Burton Act transfer agreement, shall be
21repurposed or modified, including any necessary restoration or
22remediation of the seawall lot to facilitate public trust uses.


SEC. 8.  

If any provision of this act, or its application to any
24person, property, or circumstance, is held invalid by any court, the
25invalidity or inapplicability of that provision shall not affect any
26other provision of this act or the application of that provision to
27any other person, property, or circumstance, and the remaining
28portions of this act shall continue in full force and effect, unless
29enforcement of this act as so modified by and in response to that
30invalidation would be grossly inequitable under all of the
31circumstances, or would frustrate the fundamental purposes of this


SEC. 9.  

The Legislature finds and declares that, because of the
34unique circumstances applicable only to the lands described in this
35act in the City and County of San Francisco, a statute of general
36applicability cannot be enacted within the meaning of subdivision
37(b) of Section 16 of Article IV of the California Constitution.