Amended in Senate June 22, 2016

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.

LEGISLATIVE COUNSEL’S DIGEST

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 thatbegin insert the term ofend insert a nontrust lease shallbegin delete 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.end deletebegin insert not exceed 75 years from the initial occupancy date of the improvements developed on the leased site or development parcel, and in no event shall the term of a nontrust lease extend beyond December 31, 2120.end insert 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 commission has approved the port advances 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

SECTION 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
92012.

begin insert

10
(c) “Bay Plan” means the San Francisco Bay Plan as adopted
11and administered by the San Francisco Bay Conservation and
12Development Commission pursuant to the McAteer-Petris Act.

end insert
begin insert

13
(d) “BCDC” means the San Francisco Bay Conservation and
14Development Commission established pursuant to Section 66620
15of the Government Code.

end insert
begin delete

16(c)

end delete

P3    1begin insert(e)end insert “Board of supervisors” means the Board of Supervisors of
2the City and County of San Francisco.

begin delete

12 3(d)

end delete

4begin insert(f)end insert “Burton Act” means Chapter 1333 of the Statutes of 1968,
5as amended, which authorized the state to convey to the city, in
6trust and subject to certain terms, conditions, and reservations, the
7state’s interest in certain tidelands, including filled lands.

begin delete

16 8(e)

end delete

9begin insert(g)end insert “Burton Act lands” means the tidelands that the state granted
10to the city under the Burton Act, including the San Francisco
11waterfront from the Hyde Street pier to India Basin.

begin delete

19 12(f)

end delete

13begin insert(h)end insert “Burton Act transfer agreement” means the agreement dated
14January 24, 1969, between the state and the city, relating to the
15transfer of the Burton Act lands from the state to the city, and any
16amendments to that agreement in accordance with its terms.

begin delete

3 17(g)

end delete

18begin insert(i)end insert “Burton Act trust” means the statutory trust imposed by the
19Burton Act on Burton Act lands and lands dedicated to or acquired
20by the city as assets of the trust.

begin delete

21(h) “Capital plan” means the 10-year capital plan for port land
22prepared in accordance with Sections 2.30 and 2.31 of the San
23Francisco Administrative Code, adopted in 2007 by the board of
24supervisors, as amended.

end delete
begin delete

10 25(i)

end delete

26begin insert(j)end insert “CFD law” means the Mello-Roos Community Facilities
27Act of 1982 (Chapter 2.5 (commencing with Section 53311)) of
28Part 1 of Division 2 of Title 5 of the Government Code) or the San
29Francisco Special Tax Financing Law (San Francisco Admin. Code
30Ch. 43, Art. X), as applicable.

begin delete

15 31(j)

end delete

32begin insert(k)end insert “City” means the City and County of San Francisco, a charter
33city and county, and includes the port.

begin delete

17 34(k)

end delete

35begin insert(l)end insert “Commission” means the State Lands Commission.

begin delete

18 36(l)

end delete

37begin insert(m)end insert “Designated seawall lot” or “designated seawall lots” means
38any of those parcels of real property situated in the city that are
39defined as designated seawall lots in Senate Bill 815 or Assembly
P4    1Bill 2649,begin delete as those parcels may beend delete modified by Section 3 of this
2act.

begin delete

23 3(m)

end delete

4begin insert(n)end insert “Development parcel” means a portion of a designated
5seawall lot that is subdivided for construction begin insertof end insertimprovements,
6or rehabilitation of historic buildings for reuse, and that will be
7used for nontrust land uses.

begin insert

8
(o) “Embarcadero Historic District” means the portion of the
9Burton Act lands from Pier 45 to Pier 48, which was listed on the
10National Register of Historic Places in 2006.

end insert
begin delete

27 11(n)

end delete

12begin insert(p)end insert “IFD law” means the begin delete Infrastructure Financing Districts law
13set forth in Chapter 2.8 (commencing with Section 53395) of Part
141 of Division 2 of Title 5 of the Government Code, which
15authorizes the use ofend delete
begin insert provisions of the Government Code
16authorizing the formation of local financing districts authorized
17to useend insert
property tax increment to finance infrastructure.

begin delete

32 18(o)

end delete

19begin insert(q)end insert “Infrastructure costs” or “costs of infrastructure” means the
20cost of constructing the Seawall Lot 337 infrastructure, including
21related costs of planning and design work and a return on developer
22equity, as provided in a plan of finance in a disposition and
23development agreement.

begin delete

P4   1 24(p)

end delete

25begin insert(r)end insert “Initial occupancy date” means the date on which the port
26issues the first certificate of occupancy for a buildingbegin delete on the leased end delete
27begin insert under a nontrust lease of a designatedend insert seawall lot or begin insertof a end insert
28development parcel in Seawall Lot 337, as applicable.

begin insert

29
(s) “McAteer-Petris Act” means Title 7.2 (commencing with
30Section 66600) of the Government Code.

end insert
begin delete

4 31(q)

end delete

32begin insert(t)end insert “Mission Bay developer” means an “owner,” as defined in
33the Mission Bay South owner participation agreement.

begin delete

6 34(r)

end delete

35begin insert(u)end insert “Mission Bay South owner participation agreement” means
36 the agreement between the redevelopment agency and Catellus
37Development Corporation, dated November 16, 1998, as amended.

begin delete

9 38(s)

end delete

P5    1begin insert(v)end insert “Mission Bay South redevelopment plan” means the
2Redevelopment Plan for the Mission Bay South Project adopted
3by the board of supervisors on October 26, 1998, as amended.

begin delete

12 4(t)

end delete

5begin insert(w)end insert “Mission Bay South redevelopment project area” means
6the area in the city subject to the Mission Bay South redevelopment
7plan.

begin delete

15 8(u)

end delete

9begin insert(x)end insert “Nontrust lease revenues” means revenues that the port
10receives frombegin delete nontrustend delete leases of designated seawall lots or
11development parcels in Seawall Lot 337, asbegin delete applicable.end deletebegin insert applicable,
12where the trust use restrictions have been lifted by a prior
13legislative act for a designated period of time.end insert

begin delete

18 14(v)

end delete

15begin insert(y)end insert “Nontrust sources” means sources of consideration other
16than nontrust lease revenues or moneys in the port’s harbor fund.
17Nontrust sources include, without limitation, fee credits that may
18be applied to offset local impact fees or exactions, special taxes,
19tax increment, proceeds of general obligation bonds, proceeds of
20community facilities bonds, and proceeds of tax allocation bonds.

begin insert

21
(z) “Northeastern waterfront” means the area designated in
22the special area plan as the land and water areas within port
23jurisdiction from Pier 35 to China Basin.

end insert
begin delete

24 24(w)

end delete

25begin insert(aa)end insert “Oversight board” means the body that the board of
26supervisors created to oversee the fiscal management of the
27successor agency in accordance with Assembly Bill 26.

begin delete

27 28(x)

end delete

29begin insert(ab)end insert “Parcel P20” means a parcel owned by the port within the
30Mission Bay South redevelopment project area that lies partially
31within the southern portion of Seawall Lot 337.

begin delete

30 32(y)

end delete

33begin insert(ac)end insert “Port advances” means a loan ofbegin delete trust assets where the port
34usesend delete
nontrust lease revenuesbegin insert from Seawall Lot 337 to a district or
35other entity providing project-based public financingend insert
to pay directly
36or to reimburse the Seawall Lot 337 developerbegin delete or any district
37providing project-based public financingend delete
for costs of infrastructure
38in accordance with the terms and conditions of this act. Port
39advances do not include nontrust lease revenues that the port uses
P6    1to pay directly for the preservation of historic piers and historic
2structures or for purposes that are otherwise authorized by this act.

begin delete

38 3(z)

end delete

4begin insert(ad)end insert “Port of San Francisco,” “port commission,” or “port”
5means the city acting by and through the San Francisco Port
6Commission.

begin delete

P5   1 7(aa)

end delete

8begin insert(ae)end insert “Project-based public financing” means special taxes from
9development parcels in community facilities district project areas
10formed under CFD law, property tax increment from development
11parcels in infrastructure financing district project areas established
12underbegin delete theend delete IFD law, bond proceeds secured by special taxes, tax
13increment, or both, and any other mechanisms available to finance
14infrastructure and public facilities that rely on revenues produced
15by the area to be improved.

begin delete

9 16(ab)

end delete

17begin insert(af)end insert “Public trust”begin delete or “trust”end delete means the common law public trust
18for commerce, navigation, and fisheries.

begin delete

11 19(ac)

end delete

20begin insert(ag)end insert “Redevelopment agency” means the San Francisco
21redevelopment agency, that the board of supervisors formed under
22the former California Community Redevelopment Law and that
23was dissolved on February 1, 2012, by operation of Assembly Bill
2426.

begin delete

16 25(ad)

end delete

26begin insert(ah)end insert “San Francisco Bay” or “bay” means those areas defined
27by Section 66610 of the Government Code.

begin delete

18 28(ae)

end delete

29begin insert(ai)end insert “San Francisco waterfront” means the portions of San
30Francisco Bay that the state transferred to the city under the Burton
31Act.

begin insert

32
(aj) “Seaport plan” means the San Francisco Bay Area Seaport
33Plan adopted by BCDC and the Metropolitan Transportation
34Commission, as amended in 2003.

end insert
begin delete

21 35(af)

end delete

36begin insert(ak)end insert “Seawall Lot 337” means that parcel of real property in the
37citybegin delete knownend deletebegin insert designatedend insert as Seawall Lot 337, as shown on that certain
38map entitled “revised map ofbegin delete designedend deletebegin insert designatedend insert seawall lots,”
39which is on file with the port, as those boundaries may be modified
40by Section 3 of this act.

begin delete

26 P7    1(ag)

end delete

2begin insert(al)end insert “Seawall Lot 337 developer” means the person selected by
3the port to negotiate exclusively with the port for the master
4development of Seawall Lot 337 and Pier 48, and its successors
5and authorized assigns.

begin delete

30 6(ah)

end delete

7begin insert(am)end insert “Seawall Lot 337 infrastructure” means infrastructure and
8other public facilities that serve Seawall Lot 337 and are located
9on Seawall Lot 337 or on lands immediately adjacent to the seawall
10lot area, such as water, sewer, stormwater management, and other
11utility installations, streets, roadways, sidewalks, parks, public
12access and open space areas, shoreline improvements, and other
13public facilities.

begin delete

37 14(ai)

end delete

15begin insert(an)end insert “Senate Bill 815” means Chapter 660 of the Statutes of
162007, as amended by Chapter 208 of the Statutes ofbegin delete 2009,
17Assembly Bill 2649, and this act.end delete
begin insert 2009.end insert

begin insert

18
(ao) “Southern waterfront” means the area designated in the
19special area plan as the land and water areas within port
20jurisdiction from China Basin to and including India Basin.

end insert
begin insert

21
(ap) “Special area plan” means BCDC’s San Francisco
22Waterfront Special Area Plan, adopted in 1975 as an amendment
23to the Bay Plan, as amended.

end insert
begin insert end insertbegin delete

40 24(aj)

end delete

25begin insert(aq)end insert “State” means the State of California.

begin delete

P6   1 26(ak)

end delete

27begin insert(ar)end insert “Successor agency” means the San Francisco Office of
28Community Investment and Infrastructure, which the board of
29supervisors created in accordance with Assembly Bill 26 to serve
30as the successor to the redevelopment agency.

begin delete

5 31(al)

end delete

32begin insert(as)end insert “Successor agency commission” means the San Francisco
33Commission on Community Investment and Infrastructure.

begin delete

34(am) “Termination date” means the date determined in
35accordance with subdivision (a) of Section 4 of Senate Bill 815
36for the termination of a nontrust lease.

end delete
begin delete

10 37(an)

end delete

38begin insert(at)end insert “Tidelands” means the lands lying below the elevation of
39ordinary high water, whether filled or unfilled, and includes
40submerged lands.

begin insert

P8    1
(au) “Waterfront land use plan” means the Port of San
2Francisco Waterfront Land Use Plan, including its waterfront
3design and access element, adopted by the port commission in
41997, as amended.

end insert
5begin insert

begin insertSEC. 1.5.end insert  

end insert

begin insert As used in Senate Bill 815 and Assembly Bill 2649,
6each term set forth in Section 1 of this act shall have the meaning
7ascribed to it in that section and, in the event of any conflict
8between this act and Senate Bill 815 or Assembly Bill 2649, this
9act shall prevail.end insert

10

SEC. 2.  

The Legislature finds and declares all of the following:

begin delete

11(a) San Francisco Bay is a valuable public trust asset of the state
12that provides special maritime, navigational, recreational, cultural,
13and historical benefits to the people of the region and the state.
14Tidelands in California are held in trust for enjoyment and use by
15the people of the state under the common law public trust doctrine.
16Public trust lands may be used for water-related purposes, including
17commerce, navigation, fishing, swimming, recreation, open space,
18and wildlife habitat.

19(b) The San Francisco waterfront consists primarily of sovereign
20tidelands that the state granted to the city pursuant to the Burton
21Act. Under the Burton Act and the city’s charter, the port holds
22and manages the granted lands. The Burton Act authorizes the port
23to use, conduct, operate, maintain, manage, regulate, improve, and
24control the San Francisco waterfront consistent with the public
25trust and the Burton Act trust.

26(c) The San Francisco waterfront provides special maritime,
27navigational, recreational, cultural, and historical benefits to the
28entire San Francisco Bay area and serves as a unique destination
29for the public from throughout the region.

30(d) A unique feature of the San Francisco shoreline is the
31numerous historic maritime resources present on port property,
32many of which are in need of major structural repairs and are not
33currently available for the use and enjoyment of the public. The
34Legislature has previously found that rectifying the deteriorating
35conditions along the San Francisco waterfront, the preservation of
36the numerous historic piers and other historic structures on port
37land, and the construction of waterfront plazas and open space are
38matters of statewide importance that will further the purposes of
39the public trust and the Burton Act trust.

P9    1(e) The San Francisco shoreline is a valuable public trust asset,
2a vibrant and world-renowned tourist destination, and a vital
3component of the regional, state, and national economies. The
4success of the port’s efforts to revitalize the waterfront depends,
5in part, on strategies for optimizing uses of and increasing revenues
6and other public trust benefits from port lands in addition to using
7funding sources other than the port harbor fund to finance
8development on port lands.

end delete
begin insert end insertbegin delete

11 9(f)

end delete

10begin insert(a)end insert The seawall lots are tidelands that were filled and cut off
11from the waterfront by the construction of the greatbegin delete seawall, now
12occupied by the Embarcadero and other roadways,end delete
begin insert seawallend insert in the
13late 19th and early 20thbegin delete centuries.end deletebegin insert centuries, and by the
14construction of the Embarcadero roadway which lies, in part, over
15a portion of the great seawall.end insert
Over time, somebegin delete of theend delete seawall lots,
16including the designated seawall lots, have ceased to be useful in
17whole or in part for the promotion of the public trust and the Burton
18Act trust, except for the production of revenue to support the
19begin delete purposes of theend delete Burton Act trust. The designated seawall lots are
20begin delete presentlyend delete either vacant or leased on an interim basis, primarily for
21begin delete commuterend delete parking.

begin delete

P8   1 22(g)

end delete

23begin insert(b)end insert Seawall Lot 337, the largest of the designated seawall lots,
24is located just south of China Basin andbegin delete is presentlyend delete used as a
25surface parking lot. Senate Bill 815 depicts Seawall Lot 337 as
26bounded by Mission Rock Street, Terry A. Francois Boulevard,
27and Third Street.begin delete Following an extensive community process led
28by a citywide advisory panel and a solicitation process to identify
29qualified developers, theend delete
begin insert Theend insert port commission entered into
30exclusive negotiations with the Seawall Lot 337 developer for the
31lease, construction, and operation ofbegin delete theend deletebegin insert aend insert proposed project at
32Seawall Lot 337, a portion of Terry A. Francois Boulevard, Pier
3348, and the marginal wharf between Pier 48 and Pier 50. begin delete The
34proposed project would include a mix of uses, such as commercial
35retail and office, market-rate and affordable residential,
36rehabilitation of Pier 48, new parks, expansion of the existing
37China Basin Park with a portion of Terry A. Francois Boulevard,
38and new and expanded shoreline access.end delete
The Legislature finds that
39the revitalization of Seawall Lot 337 and Pier 48begin delete through mixed-use
P10   1developmentend delete
is of particular importance to thebegin delete state for the reasons
2stated in Senate Bill 815.end delete
begin insert state.end insert

begin delete

3(h) The Mission Bay area surrounding Seawall Lot 337 is the
4site of a major mixed-use redevelopment project. As a result of
5Assembly Bill 26, the redevelopment agency was dissolved on
6February 1, 2012, and the successor agency assumed certain
7executory obligations of the redevelopment agency. The successor
8agency commission exercises land use, development, and design
9approval authority for the remaining projects of the former
10redevelopment agency, including Mission Bay.

end delete
begin delete

30 11(i)

end delete

12begin insert(c)end insert The Mission Bay South redevelopment projectbegin delete area,
13established in 1998 by the board of supervisors’ adoption of the
14Mission Bay South redevelopment plan,end delete
begin insert areaend insert lies to the west and
15south of Seawall Lot 337. Parcelbegin delete P20end deletebegin insert P20, based on the Mission
16Bay South redevelopment plan,end insert
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
20begin delete 337, as depicted in Senate Bill 815.end deletebegin insert 337.end insert In accordance with the
21Mission Bay South redevelopment plan, the Mission Bay developer
22has since realigned Mission Rock Street from its northeasterly
23 orientation 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
27andbegin insert theend insert former Mission Rock Street.

begin delete

6 28(j)

end delete

29begin insert(d)end insert Underbegin delete itsend deletebegin insert theend insert 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 servingbegin delete proposedend delete buildings, a pedestrian
37throughway, a shared zone, and the Blue Greenway adjacent to
38thebegin delete Bayend deletebegin insert end insertbegin insertbayend insert and Piers 48 and 50,begin delete contributing toend deletebegin insert facilitatingend insert
39 uninterrupted public access along San Francisco’s eastern
40waterfront.

begin delete

P11   1(k) In connection with the project, a

end delete

2begin insert(e)end insertbegin insertend insertbegin insertAend insert substantial investment in new infrastructure and public
3facilities is necessary for the port to fully realize the public benefits
4ofbegin delete thoseend deletebegin insert theend insert portions of Seawall Lot 337 that will be used forbegin insert publicend insert
5 trust purposes, and to maximize the value of development parcels
6that will be subject to nontrust leases. The infrastructure costs for
7Seawall Lot 337 are expected to exceed one hundred fifty million
8dollarsbegin delete ($150,000,000).end deletebegin insert ($150,000,000) based on estimates
9presented to the port commission when it endorsed a term sheet
10for the project in 2013.end insert
The development proposalbegin delete for Seawall Lot
11337end delete
provides for the Seawall Lot 337 developer to construct the
12begin delete neededend deletebegin insert necessaryend insert infrastructure and public facilities, which would
13be funded by developer equity to the extent that portbegin delete advances and
14project-based public financing are not then available.end delete
begin insert land value
15is unavailable.end insert
Project-based public financing would be used to
16pay directly or to reimburse the Seawall Lot 337 developer for its
17equity advancesbegin delete and the port for port advancesend delete for infrastructure
18costs underbegin delete theend delete CFD law, IFD law, and other applicable laws.

begin delete

19(l) Because special taxes, property tax increment, and other
20nontrust funding sources arising from the project may not become
21available until well after the port receives nontrust lease revenues
22from development parcels in Seawall Lot 337, it is critical that the
23port be able to loan those revenues to pay Seawall Lot 337
24infrastructure costs to minimize the cost of development capital
25and maximize the land value that the port is able to realize for
26preservation of its historic piers and historic structures, and for
27other public trust uses. This act authorizes the port to make port
28advances of nontrust lease revenues from Seawall Lot 337 to pay
29Seawall Lot 337 infrastructure costs, subject to the requirements
30of this act.

31(m) This act clarifies that the boundaries of Seawall Lot 337
32extend to the line of Mission Rock Street and to the line of Terry
33A. Francois Boulevard, as those streets have been or may be
34realigned, and to the boundary of China Basin Park as finally
35established, such that Seawall Lot 337 includes those portions of
36Parcel P20 and the former Mission Rock Street right of way
37embraced within those boundaries. This act also allows the
38successor agency to remove Parcel P20 from the Mission Bay
39South redevelopment plan and related documents and agreements
40without the need for Department of Finance or Controller approval.

P12   1(n) This act also amends Senate Bill 815 to provide that the
275-year limitation on the term of authorized nontrust leases for
3designated seawall lots and development parcels at Seawall Lot
4337, as applicable, begins to run on the initial occupancy date for
5the leased site.

end delete
begin insert

6
(f) Project-based public financing, which includes special taxes,
7property tax increment, and other nontrust funding sources arising
8from the project may not become available until after the port
9receives nontrust lease revenues from development parcels in
10Seawall Lot 337. The port may have the opportunity to loan
11nontrust lease revenues for Seawall Lot 337 infrastructure costs
12for the purpose of reducing financing costs and maximizing the
13land value to the port to generate additional revenue that can be
14used for preservation of the port’s historic piers and structures
15and for other public trust uses.

end insert
begin insert

16
(g) In 1965, the Legislature adopted the McAteer-Petris Act to
17protect and enhance San Francisco Bay and its natural resources.
18Among other things, the McAteer-Petris Act grants BCDC
19regulatory authority over further filling in San Francisco Bay and
20limits that activity to: (1) water-oriented uses that meet specified
21criteria; (2) minor fill that improves shoreline appearance or
22public access; and (3) activities necessary for the health, safety,
23and welfare of the public in the entire bay area. The McAteer-Petris
24Act also directs BCDC to require the provision of maximum
25feasible public access to the bay and its shoreline consistent with
26a project.

end insert
begin insert

27
(h) In 1969, the Legislature received and acted upon BCDC’s
28report and recommendations from a three-year study of San
29Francisco Bay. The resulting Bay Plan includes BCDC’s policies
30to guide use and protection of all areas within BCDC’s jurisdiction
31and ensures that proposed projects minimize bay fill and provide
32maximum feasible public access to the bay.

end insert
begin insert

33
(i) Bay Plan policy concerning filling for bay-oriented
34commercial recreation and bay-oriented public assembly on
35privately owned or publicly owned property, also known as the
36replacement fill policy, provides in part that BCDC may permit
37fill on publicly owned land for bay-oriented commercial recreation
38and bay-oriented public assembly if certain conditions are met,
39including all of the following:

end insert
begin insert

P13   1
(1) The fill is a replacement pier that covers less of the bay than
2the area that is being uncovered.

end insert
begin insert

3
(2) The amount of bay-oriented commercial recreation or
4bay-oriented public assembly use covers no more than 50 percent
5of the area of the bay uncovered.

end insert
begin insert

6
(3) The remainder of the replaced pier (50 percent) shall be
7used for public recreation, public access, or open space, including
8open water.

end insert
begin insert

9
(j) The application of the replacement fill policy to the piers
10along the northeastern waterfront created substantial challenges
11to port and BCDC efforts to improve the waterfront. In part to
12address this issue, BCDC and the port, together with the Save San
13Francisco Bay Association and numerous community groups and
14individuals, undertook a planning process that resulted in
15amendments to the port’s waterfront land use plan and BCDC’s
16special area plan. Those amendments focused on the northeastern
17waterfront with the goal of achieving the following objectives:

end insert
begin insert

18
(1) Reconnecting the city to its waterfront.

end insert
begin insert

19
(2) Increasing open water, public access, and opportunities to
20enjoy the San Francisco waterfront in a manner that completes
21the open space and public access network in the northeastern
22waterfront.

end insert
begin insert

23
(3) Providing for new development that attracts people to the
24bay and increases revenue to the port and the city.

end insert
begin insert

25
(4) Preserving historic resources and waterfront urban form.

end insert
begin insert

26
(k) The special area plan amendments focused primarily on the
27northeastern waterfront and prescribed certain actions to
28implement the plan, including all of the following:

end insert
begin insert

29
(1) Establishing a joint design review process for projects on
30the northeastern waterfront, leading to the creation of the
31 Waterfront Design Advisory Committee.

end insert
begin insert

32
(2) Requiring the port to prepare a nomination of the
33northeastern waterfront from Pier 35 to China Basin as an historic
34district listed in the National Register of Historic Places.

end insert
begin insert

35
(3) Authorizing BCDC, through its permitting authority, to set
36aside otherwise applicable use limitations on new bay fill, including
37the replacement fill policy, as a means to provide an integrated
38package of public benefits that prescribed removal of specified
39piers, restoration of significant open water areas, completion of
40the waterfront-wide, integrated public access network, preservation
P14   1of significant historic resources, and development of new uses in
2the interests of the health, safety, or welfare of the public
3throughout the bay area.

end insert
begin insert

4
(l) The special area plan amendments did not affect the
5 application of the replacement fill policy to piers north of Pier 35
6or south of China Basin. BCDC, the port, and other participants
7assumed that then-dominant industrial and maritime activities
8south of China Basin would continue and grow. The entire southern
9waterfront, including Pier 48 and about six acres of Seawall Lot
10337 adjacent to the piers, remained designated as a port priority
11use area in the seaport plan to accommodate growth in neo-bulk
12and break bulk cargo activities.

end insert
begin insert

13
(m) At the time the special area plan amendments were being
14drafted, it was not known that Pier 48 would be eligible for listing
15on the National Register of Historic Places. In the course of
16preparing the nomination report for the Embarcadero Historic
17District, the port discovered that Pier 48 is a contributing resource
18to the district. As a result, the district, which was listed in the
19National Register of Historic Places in 2006, extends south of
20China Basin to include Pier 48.

end insert
begin insert

21
(n) The historic use of Pier 48 for break bulk cargo operations
22is no longer viable due to a number of factors, including the
23construction of the Embarcadero roadway and Terry A. Francois
24Boulevard, elimination of rail service to the piers, and the inability
25of finger piers to accommodate modern containerized cargo
26operations. The port operates a break bulk facility at Pier 80,
27which has unused capacity for break bulk cargo. Pier 48 maritime
28berths are currently used for maritime industrial purposes.

end insert
begin insert

29
(o) Pier 48 is ideally situated to provide public access to and
30enjoyment of the waterfront and bay. It is within walking distance
31of the Ferry Building, AT&T Park, and regional transit hubs,
32including the Transbay Transit Center, which is under construction,
33and has views of the bay, the San Francisco-Oakland Bay Bridge,
34and the Brannan Street Wharf. The proposed reuse of Pier 48
35includes visitor-serving uses, public access, historic rehabilitation
36of the pier consistent with the United States Interior Secretary’s
37Standards for Rehabilitation, berthing facilities, and other uses.
38This act amends the seaport plan and the special area plan to
39allow Pier 48 to be treated similarly to the other finger piers in
P15   1the Embarcadero Historic District and to remove the port priority
2use area designation from Pier 48.

end insert
begin delete
3

SEC. 3.  

For purposes of Senate Bill 815 and Assembly Bill
42649, the boundaries of Seawall Lot 337 extend to the line of, but
5do not include, Third Street on the west, Mission Rock Street on
6the south, and Terry A. Francois Boulevard on the east, as those
7streets are ultimately constructed, realigned, or reconfigured in
8connection with the Mission Bay South redevelopment plan and
9the development of Seawall Lot 337. If there is any conflict
10between this section and the diagram in Section 15 of Senate Bill
11815 or Section 9 of Assembly Bill 2649, this section shall control.

end delete
12begin insert

begin insertSEC. 3.end insert  

end insert

begin insertIf the adjacent streets and park areas are realigned
13or reconfigured in connection with the development of Seawall
14Lot 337, end insert
begin insertthe boundaries of Seawall Lot 337 shall be revised to
15conform to the realigned or reconfigured park or street boundaries,
16if the new boundaries are approved by the executive officer of the
17commission. The executive officer of the commission may require
18that a legal description and record of survey be approved by the
19commission in conjunction with the approvals required in
20paragraph (3) of subdivision (a) of Section 4.5 of Senate Bill 815,
21as added by this act.end insert

22

SEC. 4.  

Subdivisions (c), (d), and (f) of Section 34163 of the
23Health and Safety Code, and subdivisions (a) and (b) of Section
2434164 of the Health and Safety Code, shall not apply to, and no
25action of the Department of Finance or the Controller shall be
26required for, any action taken by the oversight board, the successor
27agency commission, the board of supervisors, or any other
28governmental body required to act to amend the Mission Bay South
29redevelopment plan to remove Parcel P20 from the Mission Bay
30South redevelopment project area, or to amend any related
31documents or agreements to delete regulatory requirements, zoning
32controls, and the Mission Bay developer’s obligations with respect
33to Parcel P20.

34begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

Notwithstanding anything to the contrary in Assembly
35Bill 2649, (a) a nontrust lease of Seawall Lot 322-1 may be entered
36into for the same duration as permitted for other designated
37seawall lots, as provided in subdivision (a) of Section 4 of Senate
38Bill 815, as amended by this act, (b) the operative date of Sections
393 to 5, inclusive, of Assembly Bill 2649 shall be coterminous with
40the operative date of Sections 3, 4, 4.5, and 6 of Senate Bill 815,
P16   1as provided in Section 7 of Senate Bill 815, as amended by this
2act, and (c) the requirements pertaining to structures, buildings,
3and appurtenances on Seawall Lot 322-1 shall be the same as for
4other designated seawall lots as provided in Section 7 of Senate
5Bill 815, as amended by this act.

end insert
6begin insert

begin insertSEC. 6.end insert  

end insert
begin insert

The Legislature, in the exercise of its retained power
7as trustee of the public trust, and in view of the unique
8circumstances existing at Seawall Lot 337 and Pier 48 on the San
9Francisco waterfront, hereby authorizes the following:

end insert
begin insert

10
(a) Pier 48, the wharf between Pier 48 and Pier 50, and the
11portion of Seawall Lot 337 currently designated for port priority
12use are no longer required for port priority use and shall be
13deemed free of the port priority use area designation as of January
141, 2017. BCDC and the Metropolitan Transportation Commission
15 shall reprint the seaport plan to reflect the removal of the port
16priority use designation from these areas, but this subdivision shall
17apply regardless of whether the conforming changes have been
18made.

end insert
begin insert

19
(b) As of January 1, 2017, the special area plan is amended to
20include Pier 48 in the northeastern waterfront, which shall be
21deemed to serve the health, safety, and welfare of the entire bay
22area, and BCDC is authorized to issue a major permit for a project
23at Pier 48 applying the special area plan policies and other criteria
24applicable to finger piers in the northeastern waterfront, including
25that the replacement fill policy shall not apply to that project, if
26the project will rehabilitate Pier 48 consistent with the United
27States Interior Secretary’s Standards for Rehabilitation. BCDC
28shall reprint the special area plan to reflect the inclusion of Pier
2948 in the northeastern waterfront, but this subdivision shall apply
30to the Pier 48 project regardless of whether the conforming
31changes have been made.

end insert
begin insert

32
(c) Nothing in this act is intended to limit the authority and
33discretion of BCDC to approve or deny permits for the mixed-use
34development on Pier 48 and the marginal wharf between Pier 48
35and Pier 50 generally described in this act in a manner consistent
36with the McAteer-Petris Act or the policies of the Bay Plan and
37the special area plan, as those policies are modified by subdivisions
38(a) and (b), including the authority and discretion of BCDC to
39impose conditions on the permits for the project. This act shall not
P17   1limit the authority and discretion of BCDC to enforce permits
2issued for the projects described in this act.

end insert
3

begin deleteSEC. 5.end delete
4
begin insertSEC. 7.end insert  

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

6

Sec. 4.  

begin deleteExcept for Seawall Lot 337, the port may enter into end delete
7begin insert(a)end insertbegin insertend insertbegin insertAs used in this act, “nontrust lease” means end inserta lease of all or
8any portion of the designated seawall lots free from the use
9requirements established by the public trust, the Burton Act trust,
10and the Burton Act transferbegin delete agreement (nontrust lease)end deletebegin insert agreement.end insert

11begin insert(b)end insertbegin insertend insertbegin insertExcept for Seawall Lot 337, the port may enter into a
12nontrust leaseend insert
subject to the requirements of this section. For
13Seawall Lot 337, the port may enter intobegin insert aend insert nontrustbegin delete leases of
14development parcels,end delete
begin insert leaseend insert subject to the requirements of this
15section, if the commission hasbegin delete approved port advances pursuant
16toend delete
begin insert made all approvals required inend insert paragraph (3) of subdivision (a)
17of Section 4.5, andbegin delete ifend delete all of the conditionsbegin delete of this section andend deletebegin insert inend insert
18 Section 6 are met.

begin delete

19(a)

end delete

20begin insert(c)end insert Notwithstanding the Burton Act, Section 718 of the Civil
21Code, Section 37384 of the Government Code, or any other
22provision of law to the contrary, the term of any individual nontrust
23lease, including any extension of the term allowed by right of
24renewal, shall not exceed 75 years from the initial occupancy date
25begin delete for theend deletebegin insert of the improvements developed on theend insert leased site or
26developmentbegin delete parcel. Eachend deletebegin insert parcel, and in no event shall the term
27of aend insert
nontrust leasebegin delete shall terminate no later than the date that is the
28later of January 1, 2094, or the date that is 75 years after the date
29that the port first issues a certificate of occupancy for the
30improvements on theend delete
begin insert extend beyond December 31, 2120. The port
31shall provide the commission notice of the initial occupancy date
32of the improvements developed on anyend insert
leased site or development
33parcel. Nothing in this section shall be construed as limiting the
34term of any lease, or portion thereof, that is for uses consistent
35with the public trust and the Burton Act.

begin delete

36(b)

end delete

37begin insert(d)end insert (1) (A) Except as provided in this subdivision, all nontrust
38lease revenues received by the port shall be deposited in a separate
39account in the harbor fund to be expended for the preservation of
P18   1historic piers and historic structures, or for the construction and
2maintenance of waterfront plazas and open space.

3(B) The port may use its nontrust lease revenues from
4development parcels in Seawall Lot 337 to make port advances to
5fund Seawall Lot 337begin delete infrastructure, except for facilities for which
6expenditures are authorized under subparagraph (A),end delete
begin insert infrastructureend insert
7 if the commission has approvedbegin insert theend insert port advances under paragraph
8(3) of subdivision (a) of Section 4.5.begin insert This subparagraph shall not
9limit the port’s authority to use nontrust lease revenues for facilities
10for which expenditures are authorized under subparagraph (A).end insert

11 (C) Revenues shall not be expended under this subdivision for
12historic piers or historic structures on land subject to public trust
13use restrictions unless the executive officer of the commission has
14approved the proposed uses of the pier or structure.

15(2) The port may annually transfer from the separate account
16and deposit in the general account of the harbor fund, to be used
17for any purpose consistent with the public trust and the Burton
18Act, an amount equal to the sum of the baseline revenue streams
19for each designated seawall lot subject to one or more nontrust
20leases (leased seawall lots), less any revenues received by the port,
21for the year preceding the transfer of funds, from any portion or
22portions of the leased seawall lots that were not subject to a
23nontrust lease. For purposes of this subdivision, the baseline
24revenue stream for a designated seawall lot is the average annual
25revenue received by the port from that seawall lot over the five
26years prior to January 1, 2008, adjusted for inflation.

27(3) For purposes of this subdivision, the term “revenue” shall
28exclude any costs incurred by the port to administer the lease and
29to operate and maintain the leased property and any improvements
30thereon.

31(4) For each nontrust lease of a designated seawall lot, the port
32shall maintain a separate accounting of all revenues transferred
33pursuant to paragraph (2), all costs excluded pursuant to paragraph
34(3), and all revenues deposited into the separate account.begin insert Upon
35request, the port shall submit to the commission a copy of the
36accountings described in this paragraph.end insert

37(5) If the funds in the separate account exceed the amount
38needed for the preservation of historic piers and historic structures
39and for construction of waterfront plazas and open space, the excess
P19   1funds shall be deposited in the harbor fund to be used for purposes
2consistent with the public trust and the Burton Act.

begin delete

3(c)

end delete

4begin insert(e)end insert A nontrust lease shall be for fair market value and on terms
5consistent with prudent land management practices as determined
6by the port and subject to approval by the commission as provided
7in paragraphbegin delete (1).end deletebegin insert (1) or as provided in Section 4.5 for a nontrust
8lease for Seawall Lot 337.end insert

9(1) Prior to executing a nontrust lease, the port shall submit the
10proposed lease to the commission for its consideration, and the
11commission shall grant its approval or disapproval in writing within
1290 days of receipt of the lease and supporting documentation,
13including documentation related to value. In approving a nontrust
14lease, the commission shall find that the lease meets all of the
15following:

16(A) Is for fair market value.

17(B) Is consistent with the terms of the public trust and the Burton
18Act trust, other than their restrictions on uses.

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

20(2) Whenever a nontrust lease is submitted to the commission
21for its consideration, the costs of any study or investigation
22undertaken by or at the request of the commission, including
23reasonable reimbursement for time incurred by commission staff
24in processing, investigating, and analyzing such submittal, shall
25be borne by the port; however, the port may seek payment or
26reimbursement for these costs from the proposed lessee.

27

begin deleteSEC. 6.end delete
28
begin insertSEC. 8.end insert  

Section 4.5 is added to Chapter 660 of the Statutes of
292007, to read:

30

Sec. 4.5.  

(a) For nontrust leasesbegin delete of Seawall Lot 337 that are
31entered into in accordance with the terms of a disposition and
32development agreement for the master developmentend delete
of Seawall
33Lot 337, the commission shall consider whether the port will
34receive consideration equal to the fair market valuebegin delete on terms
35consistent with prudent land management practicesend delete
based on, and
36in accordance with, all of the following procedures:

37(1) At least 30 days prior to approval by the board of supervisors
38of the development project for Seawall Lot 337, the port shall
39submit the proposed disposition and development agreement
40between the master developer and the port governing the master
P20   1development of Seawall Lot 337 and the following information,
2to the extent not contained in the agreement, to the commission
3for its consideration:

4(A) The proposed procedures for the disposition of nontrust
5development parcels and including the proposed plan of finance
6for the development project that describes the proposed port
7advances for Seawall Lot 337 infrastructure costs.

8(B) The proposed procedures for establishing the fair market
9value of each nontrust lease of a development parcel,begin delete consistent
10with the land uses permitted under the disposition and development
11agreement,end delete
including the appraisal instructions.

12(C) A description of the nontrust sources that the port expects
13to receive for the project and how theses nontrust sources will be
14applied to the project.

15(D) A description of the manner by which the port will select
16the developer of each development parcel, including the form of
17groundbegin delete lease.end deletebegin insert lease, subject to minor modifications for each
18development parcel lease permitted by the transaction documents.end insert

19(2) Following approval of the development project for Seawall
20Lot 337 by the board of supervisors, the port shall submit to the
21commission the project documents described in paragraph (1) as
22finally approved by the board of supervisors.

23(3) Within 75 days after approval of the project by the board of
24supervisors and receipt of all required documentation from the
25port, the commission shall either approve orbegin delete deny the port advances
26from nontrust lease revenues for Seawall Lot 337 infrastructure
27based on the information it is required to consider by this section
28and whether port advances are consistent with the goals of Senate
29Bill 815.end delete
begin insert disapprove the procedures for establishing the fair market
30value of the development parcels, the form of ground lease, and
31the port’s use of port advances to pay for Seawall Lot 337
32infrastructure costs. The commission may request additional
33information or documentation from the port. The commission shall
34not approve the port’s use of port advances for the duration of the
35project unless the commission determines that such use of port
36advances as described in the documentation submitted by the port
37is in the best interests of the state, will benefit the public trust, and
38is on terms and conditions consistent with the port’s fiduciary
39duties as trustee. The commission may take into account
40information required to be submitted pursuant to this section, the
P21   1benefits of the development to the state and to the public trust, the
2substantial infrastructure investment required in Seawall Lot 337
3infrastructure, and the contribution of nontrust sources to Seawall
4Lot 337 infrastructure.end insert

begin insert

5
(4) Following the commission’s approval in accordance with
6paragraph (3), and prior to entering into a nontrust lease for
7Seawall Lot 337, the port shall submit to the executive officer of
8the commission a copy of the proposed nontrust lease. The port
9may enter into the nontrust lease unless, within 30 days after the
10submittal, the executive officer has provided the port with a written
11 determination that the nontrust lease is inconsistent with the
12commission’s original approval.

end insert
begin delete

P15 7 13(4)

end delete

14begin insert(5)end insert The port shall bear the costs of any study or investigation
15that the commission undertakes or requests, including reasonable
16reimbursement for commission staff time in processing,
17investigating, and analyzing the port’s submittal. The port’s
18reimbursement obligation does not affect its ability to seek payment
19or reimbursement for these costs from the master developer.

20(b) In addition to any statement of expenditures and revenues
21that the port is required by law to submit to the commission
22annually, the port shall provide a separate accounting ofbegin delete allend deletebegin insert all of
23the following:end insert

24begin insert(1)end insertbegin insertend insertbegin insertAllend insert consideration from nontrust sources and otherbegin delete portend delete
25 revenuesbegin insert the port has received in connection with Seawall Lot 337.end insert

26begin insert(2)end insertbegin insertend insertbegin insertAll other revenues that the port hasend insert spent on Seawall Lot
27337, including any portbegin delete advances and anyend deletebegin insert advances.end insert

28begin insert(3)end insertbegin insertend insertbegin insertAnyend insert revenues from nontrust sources received by the port to
29repay begin deletethoseend deletebegin insert portend insert advances.

30(c) The port shall provide the commission with copies of the
31final audit report for each phase of the project and the final audit
32report for the project within 90 days after the port receives each
33audit report.

34(d) begin insertThe port shall periodically, and upon request of the
35commission, submit to the commission a report detailing the
36issuance and repayment of any port advances, or notify the
37commission where the reports, including staff reports, may be
38accessed electronically. end insert
If, within 20 years after the first port
39advance, the port has not submitted an audit report to the
40commission indicating that all of the port advances have been
P22   1repaid, the port shall report to the commission the total amount of
2revenues from nontrust leases that the port used to fund port
3advances, the amount that the port has received to repay port
4advances, the projected sources to repay any balance still owing
5on account of port advances, and the expected timing of repayment
6of the balance still owing. Thereafter, the port shall provide
7supplemental reports containing updates to this information to the
8commission every five years.

9(e) The port shall ensure repayment, with interest, of each port
10advance within 50 years after the port advance is made. The port
11may extend the repayment period beyond 50 years subject to
12commission approval. The commission shall base itsbegin delete approvalend delete
13begin insert approval, in part,end insert on whether the port is taking actionsbegin delete to remedy
14any shortfall in repayment.end delete
begin insert that ensure the trust is made whole,
15consistent with its fiduciary duties as a trustee of the public trust.end insert

16

begin deleteSEC. 7.end delete
17
begin insertSEC. 9.end insert  

Section 7 of Chapter 660 of the Statutes of 2007 is
18amended to read:

begin delete
19

Sec. 7.  

Sections 3, 4, 4.5, and 6 of this act shall be inoperative
20as to a designated seawall lot on the later of (a) the last termination
21date of any nontrust lease on the site, or (b) on January 1, 2094,
22after which later date the use of the designated seawall lot shall

end delete
23begin insert

begin insertSec. 7.end insert  

end insert

begin insertUpon the termination of the 75-year term for a
24development parcel, the use of the development parcel shallend insert
be
25consistent with the public trust, the Burton Act trust, and the Burton
26Act transferbegin delete agreement. No later than January 1, 2094, or the last
27termination date of any nontrust lease on the site, whichever is
28later,end delete
begin insert agreement andend insert all structures, buildings, and appurtenances
29onbegin delete a designated seawall lotend deletebegin insert the development parcelend insert not consistent
30withbegin delete the purposes ofend delete the public trust, the Burton Act trust, and
31Burton Act transfer agreement, shall be repurposed or modified,
32including any necessary restoration or remediation of the seawall
33lot to facilitate public trust uses.begin insert No subsequent nontrust lease
34shall be granted for any development parcel.end insert

35

begin deleteSEC. 8.end delete
36
begin insertSEC. 10.end insert  

If any provision of this act, or its application to any
37person, property, or circumstance, is held invalid by any court, the
38invalidity or inapplicability of that provision shall not affect any
39other provision of this act or the application of that provision to
40any other person, property, or circumstance, and the remaining
P23   1portions of this act shall continue in full force and effect, unless
2enforcement of this act as so modified by and in response to that
3invalidation would be grossly inequitable under all of the
4circumstances, or would frustrate the fundamental purposes of this
5act.

6

begin deleteSEC. 9.end delete
7
begin insertSEC. 11.end insert  

begin insert(a)end insertbegin insertend insert The Legislature finds and declares that, because
8of the unique circumstances applicable only to the lands described
9in this act in the City and County of San Francisco, a statute of
10general applicability cannot be enacted within the meaning of
11subdivision (b) of Section 16 of Article IV of the California
12Constitution.

begin insert

13
(b) The Legislature also finds and declares that the exemption
14under Section 4 of this act from the laws governing the dissolution
15of former redevelopment agencies is necessary to address the
16unique circumstances relating to the development of Parcel P20,
17including the fact that the parcel was never owned by a former
18redevelopment agency and the fact that the transfer and use of
19Parcel P20 for the Mission Bay South redevelopment project will
20benefit the state by generating revenues from the various nontrust
21leases of land within the parcel.

end insert


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