BILL NUMBER: SB 792 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 6, 2009
AMENDED IN SENATE APRIL 23, 2009
INTRODUCED BY Senator Leno
FEBRUARY 27, 2009
An act to repeal Section 5006.8 of the Public Resources Code, to
repeal Section 3 of Chapter 2 of the Statutes of 1958 of the First
Extraordinary Session, to repeal Chapter 1046 of the Statutes of
1998, to repeal Chapter 464 of the Statutes of 2002, and to repeal
Chapter 435 of the Statutes of 2003, relating to tidelands and
submerged lands.
LEGISLATIVE COUNSEL'S DIGEST
SB 792, as amended, Leno. Tidelands and submerged lands: City and
County of San Francisco: Candlestick Point and Hunters Point Naval
Shipyard.
(1) Existing law grants to the City and County of San Francisco
the right, title, and interest of the State of California in and to
certain tidelands and submerged lands in trust for certain purposes.
The State Lands Commission has jurisdiction over tidelands and
submerged lands of the state.
The Hunters Point Shipyard Conversion Act of 2002 granted to, and
vested in, the San Francisco Redevelopment Agency, all of the state's
right, title, and interest in the Hunters Point trust lands, and,
upon conveyance by the federal government to the agency, in
appurtenances located on Hunters Point submerged lands, subject to
the public trust and the terms and conditions of the act. The Hunters
Point Shipyard Public Trust Exchange Act approved an exchange of
public trust lands within the Hunters Point Shipyard, whereby certain
trust lands that meet specified criteria and are not useful for
public trust purposes are freed from the public trust and may be
conveyed into private ownership, and certain other lands that are not
public trust lands and that are useful for public trust purposes are
made subject to the public trust. Existing law authorizes the
Director of Parks and Recreation to enter into agreements concerning
the development of a project in the City and County of San Francisco
and partly within the Candlestick Point State Recreation Area.
This bill would repeal the Hunters Point Conversion Act of 2002
and the Hunters Point Shipyard Public Trust Exchange Act. The bill
would also repeal the provision authorizing the Director of Parks and
Recreation to enter into agreements concerning that project in the
City and County of San Francisco.
This bill instead would grant to, and vest in, the San Francisco
Redevelopment Agency, all of the state's right, title, and interest
in Candlestick Point and the former Hunters Point Naval Shipyard
trust lands, as revised, and, upon conveyance by the federal
government to the agency, in appurtenances located on Hunters Point
submerged lands, subject to the public trust, and the terms and
conditions of this bill.
This bill would also approve an exchange of public trust lands
within the lands conveyed, whereby certain trust lands or interests
in lands that meet specified criteria and are not now useful for
public trust purposes will be freed from the public trust and may be
conveyed into private ownership, and certain other lands or interests
in lands that are not now public trust lands and that are useful for
public trust purposes will be made subject to the public trust.
The bill would require the agency to deposit all moneys collected
by the agency arising out of the use or operation of any of the trust
lands into a special fund maintained by the agency. The bill would
require the agency to prepare an annual statement of financial
conditions and operations and to submit the statement to the State
Lands Commission each year on or before October 1, thereby imposing a
state-mandated local program.
The bill would authorize the Director of Parks and Recreation to
enter in an agreement to transfer to the agency or the City and
County of San Francisco an interest in state property held by the
department within the Candlestick Point State Recreation Area upon
the director making certain findings.
(2) The bill would state findings and declarations of the
Legislature regarding the need for special legislation.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The following definitions apply for purposes of this
act:
(a) "1958 Act" means Chapter 2 of the Statutes of 1958 of the
First Extraordinary Session.
(b) "Agency" means the San Francisco Redevelopment Agency, or any
successor redevelopment agency with jurisdiction over the project
area.
(c) "Applicable statutory trust" means either of the following:
(1) Where the agency is the trustee, the terms and conditions of
the state's trust grant to the agency under this act.
(2) Where the city is the trustee, the Burton Act trust.
(d) "Burton Act" means Chapter 1333 of the Statutes of 1968, as
amended.
(e) "Burton Act lands" means all those lands within the project
area owned in fee by the city and held subject to the Burton Act.
(f) "Burton Act trust" means the statutory trust imposed by the
Burton Act, by which the state conveyed to the city, in trust and
subject to certain terms, conditions, and reservations, the state's
interest in certain tidelands, including filled lands, and lands
dedicated or acquired by the city as assets of the trust.
(g) "Candlestick Point" means all that real property situated in
the City and County of San Francisco commonly known as Candlestick
Point.
(h) "City" means the City and County of San Francisco, a charter
city and county, and includes the City and County of San Francisco
acting by and through its Port Commission.
(i) "City reversionary interest" means the reversionary interest
retained by the city in the lands transferred to the state pursuant
to the quitclaim deed from the city to the State of California,
recorded January 24, 1984, at Reel D633, Image 1952 in the office of
the San Francisco City and County Recorder, under which the
transferred lands would revert to the city upon certain conditions
specified in the deed.
(j) "Commission" means the State Lands Commission.
(k) "Community Redevelopment Law" means Part 1 (commencing with
Section 33000) of Division 24 of the Health and Safety Code.
(l) "Department" means the Department of Parks and Recreation.
(m) "Director" means the Director of Parks and Recreation.
(n) "Hillside open space" means that area of land so designated as
depicted in the diagram in Section 25 of this act.
(o) "Hunters Point submerged lands" means all that real property
situated in the City and County of San Francisco that is presently
submerged and is outside the boundaries of the shipyard, but within
the boundaries of the Hunters Point Shipyard Redevelopment Area as
shown in the redevelopment plan.
(p) "Project" means the integrated development of a combination of
uses on Candlestick Point and the shipyard, including, but not
limited to, residential, commercial, and recreational uses, in
accordance with the redevelopment plan.
(q) "Project area" means the shipyard and Candlestick Point.
(r) "Proposition G" means Proposition G, also known as the "Mixed
Use Development Project for Candlestick Point and Hunters Point
Shipyard," approved by the voters of the city in June 2008.
(s) "Public trust" or "trust" means the common law public trust
for commerce, navigation, and fisheries.
(t) "Redevelopment plan" means the Hunters Point Shipyard
Redevelopment Plan, and those portions of the Bayview-Hunters Point
Redevelopment Plan pertaining to the redevelopment of Candlestick
Point, adopted by the agency pursuant to Chapter 4.5 (commencing with
Section 33492) of the Community Redevelopment Law, as those plans
may be amended from time to time.
(u) "Shipyard" means all that real property situated in the City
and County of San Francisco commonly referred to as the Hunters Point
Naval Shipyard.
(v) "State" means the State of California, or any political
subdivision or instrumentality of the state.
(w) "State property" means the property or interests in property
owned by the state located within the project area, and includes both
proprietary land and sovereign land.
(x) "State recreation area" means the Candlestick Point State
Recreation Area.
(y) "Tidelands" means the lands lying below the elevation of
ordinary high water, whether filled or unfilled, and includes
submerged lands, unless specified otherwise.
(z) "Trustee" means the owner and trust administrator of trust
lands granted pursuant to this act or the Burton Act, and is either
the agency, with respect to lands owned by the agency, or the city,
with respect to lands owned by the city.
(aa) "Trust lands" means all lands, including tide and submerged
lands, within the project area that are presently, or upon conveyance
out of federal ownership will be, subject to the public trust.
Following a trust exchange, trust lands shall include all lands
within the project area that have been impressed with the trust
pursuant to the exchange, and shall not include any lands that have
been removed from the trust pursuant to the exchange.
SEC. 2. The Legislature finds and declares all of the following:
(a) The purpose of this act is to facilitate the productive reuse
of the lands within the areas of San Francisco known as Candlestick
Point and the former Hunters Point Naval Shipyard in a manner that
furthers the purposes of the public trust and the Community
Redevelopment Law. To effectuate this purpose, this act grants the
state's sovereign interest in the lands comprising the shipyard to
the agency upon the transfer of those lands out of federal ownership,
and approves and authorizes the commission, provided that it makes
the necessary findings supporting the exchange, to carry out an
exchange of lands that will place or confirm the public trust on
lands within the project area with substantial value for the public
trust, and terminate the public trust in project area lands that are
no longer useful for trust purposes. This act also authorizes the
department to enter into an agreement to transfer certain lands
within the Candlestick Point State Recreation Area to the agency or
the city, provided that the agreement provides an overall benefit to
the state recreation area and meets certain other conditions set
forth in this act.
(b) The project area, including both the shipyard and Candlestick
Point, encompasses lands that were historically tidelands subject to
the public trust, as well as historic uplands that were not subject
to the trust. Beginning in 1861, certain of the area's tidelands were
conveyed into private ownership by the state pursuant to various
state statutes. Portions of those tidelands were subsequently filled
and reclaimed. The trust status of the reclaimed tidelands is
uncertain. Due to differences in the various statutes authorizing the
conveyance of the tidelands into private ownership, as well as other
historical circumstances, some of the reclaimed tidelands, including
lands located well inland from the current shoreline, have remained
subject to the public trust, while other reclaimed tidelands,
including most of the lands adjacent to the shoreline, may have been
freed from the trust. In addition, a portion of the lands that are
subject to the trust consist of "paper streets" that were mapped but
never built, forming a grid pattern that is not consistent with the
existing or planned street system for the lands, and most of these
lands are no longer useful for trust purposes.
(c) In 1939, the United States began acquiring lands for purposes
of constructing and operating what came to be known as the Hunters
Point Naval Shipyard. The shipyard was used primarily as a United
States Navy industrial operation for the modification, maintenance,
and repair of ships. The shipyard was closed in 1974, resulting in
adverse economic impacts on the economic base of the surrounding
Bayview Hunters Point neighborhood. Pursuant to Section 2824(a) of
the National Defense Authorization Act for fiscal year 1991, as
amended by Section 2834 of the National Defense Authorization Act for
fiscal year 1994, the United States Navy is authorized to convey the
shipyard, or portions of the shipyard, to the city or to a local
reuse authority approved by the city. The agency is the approved
local reuse authority for the shipyard. Pursuant to a 2004 conveyance
agreement with the agency, the United States Navy has conveyed a
portion of the shipyard to the agency and has agreed to transfer the
remainder to the agency following hazardous materials remediation.
(d) The state's sovereign interest in the filled tidelands at
Candlestick Point consists primarily of paper streets and portions of
a former railroad right-of-way. In 1958, the state, through the 1958
Act, authorized the sale of a portion of these lands to the city for
the purpose of developing a sports stadium. The 1958 Act terminated
the public trust on the transferred lands, but required that they be
used only for purposes of general statewide interest. Pursuant to the
1958 Act, the city acquired the lands free of the trust and
constructed the stadium commonly referred to as Candlestick Park,
which is now nearing the end of its useful life.
(e) In 1968, the Legislature enacted the Burton Act, which granted
the state's remaining interest in tidelands within the city,
including the state's sovereign interests in the portion of
Candlestick Point outside of the stadium site, to the city, subject
to the public trust and the Burton Act trust. In 1973, the
Legislature authorized the department to acquire and develop real
property at Candlestick Point for the state park system. The state
subsequently acquired private lands along the shoreline of
Candlestick Point to create the Candlestick Point State Recreation
Area. In 1984, the city conveyed back to the state those lands within
the state recreation area boundaries that the city had acquired
under the 1958 Act and the Burton Act, subject to the city's
reversionary interest. The state recreation area was the first
California state park unit developed in an urban environment and is a
critical component of the state park system. At present, however,
much of the state recreation area is underutilized and in need of
substantial restoration and improvement.
(f) The shipyard and Candlestick Point are in close proximity to
one another, separated only by Yosemite Slough and South Basin.
Together, they comprise approximately 760 acres and make up the
largest area of underused land in the city. The shipyard, once a
source of economic opportunity for the surrounding Bayview Hunters
Point community, has stood dilapidated and abandoned for over 30
years and now stands as a barrier to public health, open space, and
the waterfront, and a blight on one of San Francisco's poorest
communities. The revitalization of Candlestick Point has been
contemplated for over 10 years to create much needed economic and
public benefits, affordable housing for Bayview Hunters Point
residents, and other tangible benefits to the Bayview Hunters Point
community. The stadium at Candlestick Point is nearing the end of its
useful life and is in need of replacement, the nearby public housing
development at Alice Griffith requires a complete rebuilding, and
the restoration and improvement of the adjoining state recreation
area has been a long-time goal of the state, the city, and the
Bayview Hunters Point community.
(g) Until 2007, efforts to redevelop the shipyard and Candlestick
Point proceeded separately from one another. In 1997, the agency and
the city adopted the Hunters Point Shipyard Redevelopment Plan to
provide for the economic revitalization of the shipyard upon its
transfer out of federal ownership. In anticipation of the transfer of
the shipyard to the agency, the Hunters Point Shipyard Conversion
Act of 2002 (Chapter 464 of the Statutes of 2002), and the Hunters
Point Shipyard Public Trust Exchange Act (Chapter 435 of the Statutes
of 2003), which together granted in trust to the agency all of the
state's sovereign interest in certain lands within and adjacent to
the shipyard and authorized a shipyard-wide public trust exchange,
subject to certain terms and conditions.
(h) Chapter 1046 of the Statutes of 1998, which repealed and added
Section 5006.8 of the Public Resources Code, was enacted for the
purpose of facilitating the redevelopment of Candlestick Point in
accordance with Propositions D and F, which were approved by voters
of the city on June 3, 1997. Those measures authorized development of
a stadium, retail and entertainment center, and associated support
uses on the site. In 2006, the city and the agency adopted the
Bayview Hunters Point Redevelopment Plan, which included provision
for a stadium project consistent with Propositions D and F.
Subsequently, the primary tenants of the stadium, the San Francisco
Forty Niners, announced their intention to build a new stadium in a
location other than Candlestick Point.
(i) In 2007, the city and the agency undertook a new, integrated
planning effort for the shipyard and Candlestick Point, which
resulted in the adoption of a conceptual framework for development.
The conceptual framework calls for a mixed use project on the project
area that will provide, among other things, much needed parks and
open space, including a major renovation of the state recreation area
to enhance access by residents and visitors to the waterfront; new
business and employment opportunities; new housing opportunities
affordable for residents of the neighboring Bayview Hunters Point
community; a site for a new sports stadium on the shipyard, with
alternative uses if the San Francisco Forty Niners elect to build a
new stadium elsewhere; and other economic and public benefits for the
community and the city as a whole and the statewide public.
(j) In June 2008, the voters of the city approved Proposition G,
the "Mixed Use Development Project for Candlestick Point and Hunters
Point Shipyard." Proposition G repealed Propositions D and F and
promulgated city policy encouraging the timely development of the
project area with a mixed-use project including: over 300 acres of
public park and open space; between 8,500 and 10,000 homes; about
700,000 square feet of retail space; about 2,150,000 square feet of
green office, science and technology, research and development, and
industrial space; a possible arena or other public performance site;
a site in the shipyard for a new stadium for the San Francisco Forty
Niners; and additional green office, science and technology, research
and development, and industrial space, or additional housing, if a
new stadium is not built. Proposition G specifically contemplated a
mix of stacked flats, attached town homes and, in appropriately
selected locations, low-rise, mid-rise, and high-rise towers, to help
ensure the economic feasibility of the development and provide a
varied urban design. Proposition G also made it city policy that the
project be consistent with the following objectives: producing
tangible community benefits for residents of the Bayview Hunters
Point neighborhood and the city; reconnecting the shipyard and
Candlestick Point with the Bayview Hunters Point neighborhood and
protecting the Bayview Hunters Point neighborhood character for
existing residents; producing substantial new housing, both
affordable and market-rate, and encouraging the rebuilding of the
Alice Griffith Housing Development; incorporating environmental
sustainability; encouraging the San Francisco Forty Niners to remain
in San Francisco; and requiring the project to be financially sound,
with or without a new stadium.
(k) This legislation is necessary for the successful redevelopment
of the project area and to realize the resulting public benefits,
including, but not limited to, the elimination of blight, the
provision of affordable housing, the creation of new public open
space, and increased public access to the waterfront. This
legislation is also needed to improve the configuration of the public
trust lands in furtherance of trust purposes.
(l) The existing configuration of trust and nontrust lands within
the project area is such that the purposes of the public trust cannot
be fully realized. A substantial portion of the reclaimed trust
lands are interior lands that have been cut off from access to
navigable waters, or are paper streets laid out in a grid pattern
that is not useful to the trust. Most of these lands are no longer
needed or required for the promotion of the public trust. Other lands
within the project area adjacent to the waterfront or otherwise of
high value to the public trust are currently not subject to the
public trust. Absent a trust exchange, substantial portions of the
lands within the shipyard that are located along the waterfront or
are otherwise of high value to the public trust would be free of the
public trust, would not be required to be put to uses consistent with
the public trust, and could be cut off from public access. In
addition, certain interior lands not useful for trust purposes would
be restricted and could not be used for residential or other nontrust
uses essential to the redevelopment of the project area.
(m) A trust exchange resulting in the configuration of trust lands
substantially similar to that depicted on the diagram in Section 25
of this act maximizes the overall benefits to the trust, without
interfering with trust uses or purposes. Following the exchange, the
entire waterfront within the project area, as well as certain
interior lands that have high trust values, will be subject to the
public trust. The lands that will be removed from the trust pursuant
to the exchange have been cut off from navigable waters, are no
longer needed or required for the promotion of the public trust, and
constitute a relatively small portion of the granted lands within the
city. This act requires the commission to ensure that the lands
added to the trust pursuant to the exchange have a monetary value
equal to or greater than the monetary value of the lands taken out of
the trust.
(n) Several historic buildings in the shipyard have been
identified by the State Historic Preservation Officer as contributors
to the Hunters Point Commercial Drydock Historic District. These
contributor buildings convey a sense of the shipyard's early maritime
history, enhance the open-space experience along the waterfront, and
should be preserved and restored. Uses of the contributor buildings
that support their preservation and restoration, but which are not
otherwise consistent with the trust, may be authorized under certain
conditions set forth in this act.
(o) The hillside open space provides substantial value to the
trust as an open space and recreational resource affording
exceptional views of San Francisco Bay and the waterfront. To protect
the trust value of the hillside open-space area, it is important
that significant view corridors to the waterfront be protected and
adequate public access be provided in the manner set forth in this
act.
(p) The state recreation area is presently in need of substantial
improvement, restoration, and reconfiguration. A substantial portion
of the park currently serves as a parking area for stadium events. In
other areas, the park does not contain enough land adjacent to the
shoreline to provide the desired level of public access. The park
lacks needed improvements, and many of the improvements that do exist
are in a state of disrepair. Proposition G calls for improving and
restoring the state recreation area, including enhancing access to
the waterfront for public use, providing views of San Francisco Bay,
and extending the Bay Trail system through the park. This act
approves a reconfiguration of the state recreation area and to that
end authorizes the department to enter into an agreement for the
transfer of state recreation area lands to the agency or the city in
exchange for other lands, park improvements, or other consideration,
provided the agreement will result in an overall benefit to the park
and meets the other requirements of this act regarding the transfer
of state recreation area lands.
(q) This legislation advances the statewide purposes of the
Community Redevelopment Law and the public trust, and is in the best
interests of the people of this state.
SEC. 3. Section 5006.8 of the Public Resources Code is repealed.
SEC. 4. Chapter 464 of the Statutes of 2002, The Hunters Point
Shipyard Conversion Act of 2002, as amended by Chapter 435 of the
Statutes of 2003, is repealed.
SEC. 5. Chapter 435 of the Statutes of 2003, The Hunters Point
Shipyard Public Trust Exchange Act, is repealed.
SEC. 6. (a) All of the state's right, title, and interest,
acquired by virtue of its sovereignty, in any trust lands in which
the agency holds or acquires fee title, is hereby granted to and
vested in the agency, subject to the public trust and the terms and
conditions of this act.
(b) Upon conveyance by the federal government to the agency of any
piers or other appurtenances located in part on Hunters Point
submerged lands, the grant of the state's right, title, and interest
in the Hunters Point submerged lands to the city pursuant to the
Burton Act shall be revoked, and all of the state's right, title, and
interest in those lands shall be granted to and vested in the
agency, subject to the public trust and the terms and conditions of
this act.
(c) The agency shall hold the trust lands in trust for the benefit
of all the people of the state for purposes of commerce, navigation,
and fisheries, and for other public trust purposes, subject to the
terms and conditions of this act. Any trust lands held by the agency
pursuant to this act shall not be subject to the Burton Act trust.
SEC. 7. Notwithstanding Section 6359 of the Public Resources Code
or any other provision of law, the grant of trust lands to the agency
pursuant to this act shall be deemed effective as follows:
(a) On January 1, 2010, with respect to trust lands owned by the
agency on that date.
(b) With respect to trust lands acquired by the agency after
January 1, 2010, upon the agency's acquisition of those lands.
(c) With respect to the Hunters Point submerged lands, upon
conveyance by the federal government to the agency of any piers or
other appurtenances located in part on the Hunters Point submerged
lands.
SEC. 8. (a) The agency may use, conduct, operate, maintain,
manage, administer, regulate, improve, lease, and control
(collectively referred to as "use") the trust lands and do all things
necessary in connection with that authority that conform with the
terms of this act and the public trust. Except as provided in this
act, the agency shall use the trust lands only in a manner that is
consistent with, necessary and convenient for, or incidental or
ancillary to, the purposes of the public trust.
(b) In the management, conduct, operation, and control of the
trust lands, or any improvements, betterments, or structures on the
trust lands, the agency shall make no discrimination in rates, tolls,
or charges for a use or service in connection with that management.
SEC. 9. The agency shall not grant, convey, give, or alienate the
trust lands, or any part of the lands, to an individual, firm,
corporation, or governmental agency (not including the commission)
for any purpose, except as provided in this act or as otherwise
provided by statute.
SEC. 10. There is reserved in the people of the state the right to
hunt and fish in and over the waters on the trust lands, together
with the right of convenient access to the waters over the trust
lands for those purposes.
SEC. 11. The state shall reserve from the grant made in Section 6
of this act, and from any other conveyance pursuant to this act of
the state's interest, or any portion of the state's interest, in any
lands, all minerals and all mineral rights in the lands of every kind
and character now known to exist or hereafter discovered, including,
but not limited to, oil and gas and rights, together with the sole,
exclusive, and perpetual right to explore for, remove, and dispose of
those minerals by any means or methods suitable to the state or to
its successors and assignees, except that, notwithstanding the Burton
Act or Section 6401 of the Public Resources Code, this reservation
shall not include the right of the state or its successors or
assignees in connection with any mineral exploration, removal, or
disposal activity, to do either of the following:
(a) Enter upon, use, or damage the surface of the lands or
interfere with the use of the surface by a grantee or by the grantee'
s successors or assignees. However, a lease, franchise, permit, or
license of the property shall contain a provision specifying at least
one point from which, and the manner in which, the right of ingress
or egress to the subsurface deposits may be exercised, which point or
points may be outside the area of the leasehold, franchise, permit,
or license, as long as the point or points are adequate to permit the
rights reserved to the state to be exercised.
(b) Conduct any mining activities of any nature whatsoever above a
plane located 500 feet below the surface of the lands without the
prior written permission of a grantee of the lands or the grantee's
successors or assignees.
SEC. 12. The state has the right to use, without charge, any
transportation, land or storage improvements, wharves, docks, piers,
slips, quays, or other improvements constructed upon the trust lands,
for a vessel or other watercraft, aircraft, or railroad owned or
operated by the state.
SEC. 13. (a) The state reserves the right to amend, modify, or
revoke any and all rights in the trust lands granted to the agency
under this act.
(b) No amendment or revocation, in whole or in part, of the
granted rights in the trust lands shall impair or affect the rights
or obligations of third parties, including debt, security, or bond
holders, lessees, lenders for value, and holders of contracts
conferring the right to the use or occupation of, or the right to
conduct operations upon or within, the trust lands, arising from
leases, contracts, or other instruments lawfully entered into prior
to the effective date of the amendment or revocation. For purposes of
this section, the term "bonds" includes, without limitation, tax
increment bonds, revenue bonds, certificates of participation, and
any other bonds or forms of indebtedness secured by or payable from,
in whole or in part, revenues derived from trust lands.
(c) If a lease, contract, or other instrument described in
subdivision (b) is in effect on the effective date of an amendment or
revocation, the state, at its option exercised by and through the
commission, may succeed to the agency's interest in the lease,
contract, or instrument. Otherwise, the agency's interest in the
instrument, property, and revenue shall continue during the term or
other period during
which the instrument shall remain in effect. An action taken by the
state shall not cause the agency to breach or default under a lease,
contract, or instrument in effect on the effective date of an
amendment or a revocation. All bonds or securities issued by the
agency and payable out of revenues from the trust lands shall
continue to be so payable, directly or indirectly, and secured in all
respects as provided in the proceedings for their issuance, and the
revenues of the trust lands shall be pledged and applied to the
payment of the bonds or securities in all respects as though no
amendment or revocation had taken place.
SEC. 14. The agency may grant franchises, permits, privileges,
licenses, easements, or leasehold interests (leases) in connection
with the trust lands, or any part of the trust lands, each for a term
not exceeding 66 years. A lease of the trust lands shall be solely
for uses that are consistent with, necessary and convenient for, or
incidental or ancillary to, the purposes of the public trust, except
that a lease may be entered into for other uses if the agency has
made all of the following determinations:
(a) There is no immediate trust-related need for the property
proposed to be leased.
(b) The proposed lease is of a duration of no more than five years
and can be terminated in favor of trust uses as trust needs arise.
(c) The proposed lease prohibits the construction of new
structures or improvements on the subject property that, as a
practical matter, could prevent or inhibit the property from being
converted to a permissible trust use if necessary.
(d) The proposed use of the leased property would not interfere
with commerce, navigation, fisheries, or any other existing trust use
or purpose.
SEC. 15. (a) Notwithstanding any other provision of this act or
the Burton Act, the buildings, or any portion of a building,
identified by the State Historic Preservation Officer as contributors
to the Hunters Point Commercial Drydock Historic District, commonly
known as the Gatehouse (Building 204), Pumphouse 2 (Building 205),
Pumphouse 3 (Building 140), and the Tool and Paint Building (Building
207), may be used or leased for purposes not otherwise consistent
with the public trust, provided the trustee makes a finding that
there are no trust uses available that would allow for the
restoration and preservation of the space. A lease renewal,
extension, or granting of a new lease for a nontrust purpose shall
require a new finding that no trust uses are then available that
would allow for the restoration and preservation of the building, or
a part of it.
(b) If a building described in subdivision (a) is used for a
nontrust purpose, and is remodeled, renovated, or used in a manner
that is inconsistent with the Secretary of the Interior's Standards
for the Treatment of Historic Properties with Guidelines for
Preserving, Rehabilitating, Restoring and Reconstructing Historic
Buildings, the building shall be put to a public trust use from the
commencement of the inconsistent remodel, renovation, or use, unless
the continued nontrust use is authorized to continue under Section 14
of this act, if the agency is the trustee, or under the Burton Act,
if the city is the trustee.
(c) If a building described in subdivision (a) is demolished,
subsequent use of the land and a replacement structure shall be
consistent with the public trust and the applicable statutory trust.
SEC. 16. (a) The agency shall deposit all moneys collected by the
agency arising out of the use or operation of any of the trust lands,
including all revenues derived from leases or other rights to use or
occupy the lands, into a special fund maintained by the agency. The
agency shall use the money in or belonging to the fund only for uses
and purposes consistent with the public trust and the requirements of
this act.
(b) The agency shall prepare an annual statement of financial
conditions and operations and submit it to the commission each year
on or before October 1. The statement shall include a statement of
all revenues and expenditures related to trust lands and trust
assets, including obligations incurred, but not yet paid.
(c) The requirements of this section implement and do not
supersede the requirements of Section 6306 of the Public Resources
Code.
SEC. 17. (a) The agency may exchange portions of the trust lands
with a state agency, political subdivision, person, entity, or
corporation, or the United States or a political subdivision of the
United States, for other lands, if the agency determines, and the
commission adopts a resolution finding and declaring, all of the
following:
(1) The portions of the trust lands or interests in lands to be
exchanged out of the trust have been filled and reclaimed, are cut
off from access to the waters of San Francisco Bay and are no longer
in fact tidelands or submerged lands or navigable waterways, are
relatively useless for trust purposes, and constitute a relatively
small portion of the granted lands within the city.
(2) The lands or interests in lands to be acquired by the agency
have a monetary value equal to or greater than the value of the lands
for which they are to be exchanged and are useful for the particular
trust purposes authorized by this act.
(3) No substantial interference with trust uses and purposes,
including public rights of navigation and fishing, will ensue by
virtue of the exchange.
(4) The lands or interests in lands to be acquired by the agency
in the exchange will provide a significant benefit to the public
trust.
(5) The exchange is otherwise in the best interest of the state.
(b) Upon adoption of the resolution by the commission, the lands
conveyed by the agency shall be free from the public trust, and the
lands received by the agency in exchange shall be held subject to the
public trust and to the terms of this act.
(c) The exchange authority granted by this section shall be in
addition to, and shall not operate as a limitation on, the exchange
authority granted by Sections 20 to 25, inclusive, of this act.
SEC. 18. Upon written agreement between the agency and the city,
acting by and through its Port Commission, the agency may transfer to
the city some or all of the trust lands in which the agency holds
fee title, provided that the commission has approved the transfer, or
the transfer is solely for purposes of street, utility, or public
right-of-way dedication and is approved by the executive officer of
the commission. All of the right, title, and interest granted to the
agency under this act in any lands transferred to the city under this
section shall, upon transfer, be granted to and vest in the city.
The city shall hold the transferred lands subject to the public trust
and shall assume authority as trustee over those lands. Lands
transferred to the city pursuant to this section shall be subject to
the Burton Act trust and shall cease to be subject to the terms and
conditions of this act, except that Section 15 of this act shall
remain applicable to those lands. Nothing in this section shall
preclude the city from including trust lands held by the city as part
of an exchange authorized by this act.
SEC. 19. Notwithstanding the Burton Act or any other provision of
law, upon approval by the commission, the city may transfer to the
agency some or all of the Burton Act lands. All of the right, title,
and interest granted to the city under the Burton Act in any lands
transferred to the agency under this section shall, upon transfer, be
granted to and vest in the agency. The agency shall hold the
transferred lands subject to the public trust and the requirements of
this act, and shall assume authority as trust administrator over
those lands. Lands transferred to the agency under this section shall
cease to be subject to the Burton Act trust.
SEC. 20. The Legislature hereby approves an exchange of public
trust lands within the project area, whereby certain trust lands that
meet the criteria set forth in this act and therefore are not now
useful for public trust purposes will be freed from the public trust
and of the associated restrictions on use and alienation, and certain
other lands that are not now public trust lands and that are useful
for public trust purposes will be made subject to the public trust,
provided that the commission determines that the exchange furthers
the public trust and approves the exchange and that all of the
following conditions are met:
(a) The exchange results in a configuration of trust lands
substantially similar to that shown on the diagram in Section 25 of
this act.
(b) The lands to be subject to the public trust are configured so
as to be accessible from the streets as finally configured in the
project area.
(c) The exchange otherwise complies with the requirements of this
act.
(d) The exchange is consistent with and furthers the purposes of
the public trust and this act.
SEC. 21. All lands exchanged into the trust under this act shall
be held by the trustee subject to the public trust and the applicable
statutory trust, and all lands exchanged out of the trust under this
section shall be free of the public trust and the applicable
statutory trust.
SEC. 22. The precise boundaries of the lands to be taken out of
the trust and the lands to be put into the trust pursuant to the
exchange shall be determined by the trustee or trustees with
authority over the lands to be exchanged, subject to the approval of
the commission. The commission is authorized to settle by agreement
with the trustees any disputes as to the location of the mean high
tide line in its last natural state, the boundaries of tidelands
conveyed into private ownership pursuant to various statutes, and any
other boundary lines which the commission deems necessary to
effectuate the exchange.
SEC. 23. (a) The commission is authorized to approve an exchange
of public trust lands within the project area that meets the
requirements of this act. Pursuant to this authority, the commission
shall establish appropriate procedures for effectuating the exchange.
The procedures shall include provisions for ensuring that lands or
interests in lands are not exchanged into the trust until either of
the following has occurred:
(1) All remedial action necessary to protect human health and the
environment with respect to the hazardous substances on the land has
been completed as determined by the United States Environmental
Protection Agency, the California Department of Toxics Substances
Control, and the regional water quality control board, pursuant to
the Federal Facilities Agreement for the shipyard dated January 22,
1992, as amended, and the United States has provided a warranty in
accordance with Section 9620(h)(3)(A) of Title 42 of the United
States Code.
(2) The United States has obtained a warranty deferral, approved
by the Governor in accordance with Section 9620(h)(3)(C) of Title 42
of the United States Code, involving land for which the commission
has determined to execute a certificate of acceptance of title, and
the commission finds that sufficient liability measures and
implementation measures will be in place upon the completion of the
exchange.
(b) The commission may not approve the exchange of any trust lands
unless it finds all of the following:
(1) The portions of the trust lands or interests in lands to be
exchanged have been filled and reclaimed, are cut off from access to
the waters of San Francisco Bay and are no longer in fact tidelands
or submerged lands or navigable waterways, are relatively useless for
public trust purposes, and constitute a relatively small portion of
the granted lands within the city.
(2) The lands or interests in lands to be impressed with the
public trust have a monetary value equal to or greater than the
monetary value of the lands or interests in lands to be exchanged out
of the trust. In the event that the monetary value of the lands or
interests in lands to be exchanged out of the trust is greater than
the monetary value of the lands or interests in lands to be exchanged
into the trust, the commission may consider a deposit of funds into
the Land Bank Fund established pursuant to Section 8610 of the Public
Resources Code to be held solely for acquisition of property, in an
amount equal to the difference in value.
(3) No substantial interference with trust uses and purposes,
including public rights of navigation and fishing, will ensue by
virtue of the exchange.
(4) The lands or interests in lands impressed with the public
trust will provide a significant benefit to the public trust and are
useful for the particular trust purposes authorized by this act.
(5) The configuration of trust lands within the project area upon
completion of the exchange is substantially similar to the
configuration shown on the diagram in Section 25 of this act,
includes all lands within the project area that are presently below
mean high tide, and consists of lands suitable to be impressed with
the public trust.
(6) The final layout of streets in the project area will provide
access to the public trust lands and be consistent with the
beneficial use of the public trust lands.
(7) Streets and other transportation facilities located on public
trust lands shall be designed to be compatible with the public trust
and to serve primarily public trust purposes of access to shoreline
improvements and shoreline circulation rather than serving nontrust
purposes.
(8) Any surveys or legal descriptions required for the parcels in
conjunction with the exchange shall be approved by the commission.
(9) Each trustee who owns or will own fee title in any of the
lands to be exchanged has approved the exchange.
(10) The exchange otherwise complies with the requirements of this
act.
(11) The exchange is consistent with and furthers the purpose of
the public land trust and this act.
(12) The exchange is otherwise in the best interest of the
statewide public.
(c) The commission may impose additional conditions on the
exchange authorized by this act if the commission determines that
these conditions are necessary to protect the public trust. At a
minimum, the commission shall ensure all of the following:
(1) The streets and other transportation facilities located on
trust lands are designed to be compatible with the public trust.
(2) The trust values of the hillside open space are preserved. To
this end, the commission shall ensure all of the following:
(A) The final trust configuration maintains reasonable public
pedestrian and vehicular access between the hillside open space and
the waterfront, and in addition, between the top of the hillside open
space and other areas of the city.
(B) View corridors are maintained and protected so that visitors
to the hillside open space can enjoy substantial vistas of San
Francisco Bay.
(C) Direct vehicular and pedestrian access from the lower portions
of the shipyard to the top of the hillside open space area is
provided.
(D) No liability to owners of adjacent upslope property, for
subjacent support or otherwise, is created by virtue of the trustee's
taking title to the hillside open space.
(E) No moneys from the trust fund described in Section 16 of this
act may be used to provide direct benefit to the residential
development or to other uses of the nontrust portion of the hilltop
area adjacent to the hillside open space, or to offset or mitigate
impacts caused by those uses.
(F) Street parking on the parkway adjacent to the top of the
hillside open space may not be restricted for residential parking and
shall remain accessible to the public for regional and statewide
use. In addition, adequate parking areas accessible to the public to
support regional and statewide use of the hillside open space shall
be dedicated in an area adjacent to the lower portion of the hillside
open space. Public access to the hillside open space and the
availability of parking accessible to the public shall be publicized
with appropriate signage.
(d) For purposes of effectuating the exchange authorized by this
section, the commission is authorized to do all of the following:
(1) Receive and accept on behalf of the state any lands or
interest in lands conveyed to the state by the parties to the
exchange agreement, including lands that are now and that will remain
subject to the public trust.
(2) Convey by patent all of the right, title, and interest of the
state in lands that are to be free of the public trust upon
completion of an exchange of lands as authorized by this act and as
approved by the commission.
(3) Convey to the trustee or trustees by patent all of the right,
title, and interest of the state in lands that are to be subject to
the public trust and the terms of this act or the Burton Act trust
upon completion of an exchange of lands as authorized by this act and
as approved by the commission, subject to the terms, conditions, and
reservations as the commission may determine are necessary to meet
the requirements of this act.
(e) Nothing in this act shall be construed as conditioning or
otherwise limiting the authority of the state, the city, or the
agency from undertaking a public trust exchange or other conveyance
authorized by any other provision of law, including, but not limited
to, Section 17 of this act.
SEC. 24. An exchange of public trust land pursuant to Section 23
of this act may proceed in multiple phases, provided that with
respect to each phase, the commission, in addition to the findings
required by Section 23 of this act, finds both of the following:
(a) The cumulative monetary value of all of the lands or interests
in lands exchanged into the trust in the current and previous phases
is equal to or greater than the cumulative monetary value of all of
the lands or interests in lands exchanged out of the trust in the
current and previous phases. For purposes of calculating the value of
any lands added to or removed from the trust in an earlier phase of
the exchange, the commission shall utilize the value of those lands
as determined by the commission at the time of the commission's
approval of the earlier phase, adjusted for inflation in a manner
approved by the commission.
(b) The lands or interests in lands exchanged into the trust at
each phase are configured in a way that furthers the purposes of the
overall exchange, including, but not limited to, having access to
streets as finally configured in the project area.
SEC. 25. The following diagram is a part of this act: [GRAPHIC
INSERT HERE: SEE PRINTED VERSION OF THE BILL]
SEC. 26. (a) The Legislature hereby approves a reconfiguration of
the state recreation area in substantial conformance with the diagram
included as Section 27 of this act, provided that the requirements
of this section are met. Notwithstanding any other provision of law,
the director may enter into an agreement to transfer to the agency or
the city an interest in a state property held by the department
within the state recreation area, provided that the director makes in
writing all of the following findings:
(1) The department shall receive consideration equivalent to the
fair market value of any property interests it conveys, as provided
in subdivision (c).
(2) The agreement shall provide an overall benefit to the state
recreation area.
(3) (A) The reconfiguration of the state recreation area shall
substantially conform to the configuration shown on the diagram
included as Section 27 of this act; provided, however, that the
director may agree to additional modifications of the park
configuration if the modifications are consistent with the overall
financial feasibility of the project and the director determines that
the modifications are necessary to fulfill the state recreational
purposes of the state recreation area, taking into account public
access, circulation and parking needs, wildlife habitat values,
future sea level rise and the proposed responses thereto, and other
relevant factors.
(B) If, at the time an agreement authorized by this section is
entered into, the agency has not acquired title to any portion of the
lands within the shipyard that are to be added to the state
recreation area, the director may find that the requirements of this
paragraph are met with respect to those lands if the agreement
obligates the agency to transfer the lands to the department
following the agency's acquisition of the lands, and the other
consideration received by the department meets the requirements of
paragraph (1) and subdivision (c).
(b) The director shall modify the boundaries of the state
recreation area as necessary to reflect any conveyances made pursuant
to this section.
(c) The consideration for state property transferred pursuant to
subdivision (a) may consist of any of the following, or any
combination thereof:
(1) Monetary consideration, which shall be dedicated and used for
planning, improvement, maintenance, or operation of the state
recreation area.
(2) The cost of planning and constructing improvements to the
state recreation area that enhance its use as a public park.
(3) Provisions for future revenue to fund the operation and
maintenance for all or part of the state recreation area.
(4) Other nonmonetary consideration, including, but not limited
to, relinquishment of the city reversionary interest.
(5) Land within the project area to be added to the state
recreation area.
(6) The cost of any reimbursement paid to the state for its legal,
transactional, planning, or other costs associated with actions
carried out pursuant to this section.
(d) Notwithstanding any other provision of law, the director may
acquire or transfer on behalf of the department real property
pursuant to the agreement authorized by this section, provided that
the other requirements of this section are met, and the fair market
value of any real property acquired or transferred has been
determined by an appraisal prepared by the commission, the Real
Estate Services Division of the Department of General Services, or an
independent appraiser certified by the Office of Real Estate
Appraisers pursuant to Part 3 (commencing with Section 11300) of
Division 4 of the Business and Professions Code.
(e) The agreement authorized by this section may be combined with
a trust exchange agreement authorized by this act. For purposes of
compliance with subdivision (d), the department may rely on an
appraisal prepared in connection with a trust exchange authorized by
this act.
(f) The requirements of this section shall govern an agreement
entered into, or conveyance made pursuant to the agreement, and shall
supersede any other provision of law pertaining to the department's
authority to acquire or transfer real property, or to enter into an
agreement to acquire or transfer real property, including, but not
limited to, Article 1 (commencing with Section 11000) of Chapter 1 of
Part 1 of Division 3 of Title 2 of the Government Code, Part 11
(commencing with Section 15850) of Division 3 of Title 2 of the
Government Code, and Chapter 1.695 (commencing with Section 5096.500)
of Division 5 of the Public Resources Code.
(g) Notwithstanding anything to the contrary in Section 5002.2 of
the Public Resources Code, the department is not required to revise
the general plan for the state recreation area prior to taking any
action pursuant to this section, including, but not limited to, the
approval of an agreement authorized by this section, the acquisition,
conveyance or transfer of interests in real property pursuant to
such agreement, or the modification of the state recreation area
boundary. Nothing in this subdivision shall be construed as creating
an exemption from the requirements of the California Environmental
Quality Act (Division 13 (commencing with Section 21000) of the
Public Resources Code), or as exempting the development of new
facilities within the state recreation area from compliance with the
general plan revision requirements of Section 5002.2 of the Public
Resources Code.
SEC. 27. The following diagram is a part of this act: [GRAPHIC
INSERT HERE: SEE PRINTED VERSION OF THE BILL]
SEC. 28. (a) The Legislature finds and declares that the project
will further the important statewide interests in redevelopment, the
elimination of blight, the provision of affordable housing
opportunities, the generation of new sales tax revenues, property
taxes and other tax revenues to the state and state agencies, the
creation of thousands of new jobs, and enhanced access of the public
to use and enjoy the state recreation area, and that the development
of the project will further the statewide purposes contemplated in
Section 3 of the 1958 Act. The Legislature further finds and declares
that it is necessary and in furtherance of important statewide
interests for any restrictions or other encumbrances on title arising
from Section 3 of the 1958 Act to be eliminated so as to facilitate
disposition of property within the project area in furtherance of
development of the project.
(b) At the request of the city or the agency, the executive
officer of the commission shall, on behalf of the state, reasonably
cooperate with the requesting parties to cause to be prepared and
recorded any necessary deeds, patents, agreements, or other
instruments for the purpose of removing any deed restrictions or
other encumbrances on title arising from Section 3 of the 1958 Act.
SEC. 29. Section 3 of Chapter 2 of the Statutes of 1958 of the
First Extraordinary Session is repealed.
SEC. 30. Chapter 1046 of the Statutes of 1998 is repealed.
SEC. 30.5. It is the intent of the Legislature to
approve and authorize an exchange of lands made pursuant to this act
provided that the final diagram for the exchange is included in this
act.
SEC. 31. An exchange or other agreement made pursuant to this act
is hereby found to be of statewide significance and importance.
Therefore, no ordinance, charter provision, or other provision of
local law inconsistent with this act applies to that exchange or
agreement.
SEC. 32. Nothing in this act may be construed to nullify the city
or the agency's obligations for increasing, improving, and preserving
the community's supply of low- and moderate-income housing imposed
by the Community Redevelopment Law, including, but not limited to,
the requirements of Sections 33334.2 and 33413 of the Health and
Safety Code.
SEC. 33. Nothing in this act may be construed to authorize the
residential use or other nontrust uses on public trust land except as
provided in Sections 14 and 15.
SEC. 34. A deed, patent, agreement, or other
instrument executed in furtherance of this act, or an action of the
city, state, or agency, to approve the use, lease, or conveyance of a
city, state, or agency property subject to this act, or any portion
thereof, or to approve project agreements, grant entitlements or
permits, or issue bonds or other indebtedness in connection with the
use and development of that property, shall be conclusively presumed
to be valid unless held to be invalid in an appropriate proceeding in
a court of competent jurisdiction to determine the validity of the
agreement commenced within 60 days after the recording of the
agreement.
SEC. 35. (a) An action may be brought under Chapter 4 (commencing
with Section 760.010) of Title 10 of Part 2 of the Code of Civil
Procedure to establish title to any lands conveyed pursuant to this
act, or by the parties to any agreement entered into pursuant to this
act to confirm the validity of the agreement. Notwithstanding
Section 764.080 of the Code of Civil Procedure, the statement of
decision in the action shall include a recitation of the underlying
facts and a determination as to whether the conveyance or agreement
meets the requirements of this act, Sections 3 and 4 of Article X of
the California Constitution, if applicable, and any other law
applicable to the validity of the agreement.
(b) For purposes of Section 764.080 of the Code of Civil Procedure
and unless otherwise agreed in writing, an agreement entered into
pursuant to this act shall be deemed to be entered into on the date
it is executed by the executive officer of the commission, or, if the
commission is not a party, by the director, who shall be the last of
the parties to sign prior to the signature of the Governor. The
effective date of the agreement shall be deemed to be the date on
which it is executed by the Governor pursuant to Section 6107 of the
Public Resources Code.
(c) An action may be brought under Chapter 9 (commencing with
Section 860) of Title 10 of Part 2 of the Code of Civil Procedure to
determine the legality and validity of a deed, patent, agreement, or
other instrument executed in furtherance of or authorized by this
act, or an action of the city or agency to use, lease, or convey any
property, or to approve project agreements, grant entitlements or
permits, or issue bonds or other indebtedness in connection with the
use and development of that property. Before the filing of an action,
the Attorney General, the director, and the executive officer of the
commission shall be provided written notice of the action and a copy
of the complaint. An action authorized by this subdivision may be
combined with an action authorized by subdivision (a).
SEC. 36. If a provision of this act, or its application to a
person, property, or circumstance, is held invalid by a court, the
invalidity or inapplicability of that provision shall not affect any
other provision of this act or the application of that provision to
any other person, property, or circumstance, and the remaining
portions of this act shall continue in full force and effect, unless
enforcement of this act as so modified by and in response to that
invalidation would be grossly inequitable under all of the
circumstances, or would frustrate the fundamental purposes of this
act.
SEC. 37. The Legislature finds and declares that, because of the
unique circumstances applicable only to the lands described in this
act, a statute of general applicability cannot be enacted within the
meaning of subdivision (b) of Section 16 of Article IV of the
California Constitution. Therefore, this special statute is
necessary.
SEC. 38. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district are the result of a program for which legislative authority
was requested by that local agency or school district, within the
meaning of Section 17556 of the Government Code and Section 6 of
Article XIII B of the California Constitution.