BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
SB 968 (Hill) - Public lands: Martin's Beach property: access
road.
Amended: April 9, 2014 Policy Vote: NR&W 7-2, Jud. 5-2
Urgency: No Mandate: No
Hearing Date: May 5, 2014 Consultant: Marie Liu
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 968 would require the State Lands Commission
(SLC) to enter into negotiations with the owner of the property
known as Martin's Beach to acquire a right-of-way or easement
for a public access route to the beach. If negotiations are not
successful by January 1, 2016, the SLC would be required to
acquire the right-of-way or easement by eminent domain.
Fiscal Impact:
Unknown one-time costs, likely in the hundreds of thousands
to low millions from the General Fund for the purchase of a
right-of-way or easement for access to the public lands at
Martin's Beach.
Unknown ongoing costs from the General Fund for the
maintenance of the right-of-way or easement.
Background: Situated approximately ten miles south of Half Moon
Bay in unincorporated San Mateo County is a 200-acre
crescent-shaped beach known popularly as Martin's Beach.
Seventy-five foot cliffs are located on both the north and south
ends of the beach. Prior to the sale of two upland parcels in
2008, the beach was accessible via a road that connected to the
Cabrillo Highway and traversed across private land. The prior
owner of the upland parcels had allowed public access to the
beach by vehicle for a nominal parking and access fee of $5
according to documents filed during recent litigation.
Facilities included a general store, restaurant, and restrooms.
Following the sale of the upland parcels in 2008, the new owner
erected a barricade on Martin's Beach Road intended to prevent
public access to the beach.
The two upland parcels are approximately 89 acres and stretch
from Highway 1to the coast and encompass most of Martin's Beach
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and all of Martin's Beach Road. The property was purchased for
$37.5 million by Martins Beach 1, LLC and Martins Beach 2, LLC,
respectively. Vinod Khosla, a venture capitalist, and his family
are behind the two LLCs.
Following the closure of Martin's Beach Road to the public, the
Friends of Martin's Beach sued the landowners for public access
to the tidelands, beach parking area, and access along Martin's
Beach Road. The courts issued a judgement in favor of the
property owner on April 30, 2014, though this decision may be
appealed. Additionally, the Surfrider Foundation brought a
second lawsuit challenging the landowner's compliance with
various provisions of the California coastal Act. This lawsuit
is pending in the Superior Court for the County of San Mateo.
The SLC is responsible for administering California's sovereign
lands (navigable and tidal waterways) in the Public Trust.
Public Resources Code �6210.9 gives the SLC specific authority,
were there is no access available to public trust or similar
lands, to obtain a "right-of-way or easement across privately
owned land or other land that it deems necessary to provide
access to such public land" via condemnation. The SLC has never
exercised its eminent domain authority since receiving it in
1975.
Proposed Law: This bill would require the SLC to enter into
negotiations with the owners of Martin's Beach to acquire a
right-of-way or easement for the creation of a public access
route to and along the shoreline at Martin's Beach. If such
negotiations are unsuccessful by January 1, 2016, the SLC would
be required to acquire the right-of-way or easement by eminent
domain. The SLC would also be required to negotiate with local
stakeholders to address the ongoing management and operation of
any property acquired.
Staff Comments: The SLC has existing statutory authority to
acquire a right-of-way or easement for access to Martin's Beach
either by voluntary agreement or eminent domain. However, this
bill would require that they exercise this authority.
This bill would result in a right-of-way or easement being
purchased to the shoreline at Martin's Beach either through
negotiation or eminent domain. The cost of the right-of-way or
easement is unknown, though staff notes that the cost would be
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based on the underlying value of the land and the impacts of the
right-of-way or easement on the adjoining property to the
easement. If the purchase occurs through eminent domain, the SLC
would likely have additional legal costs.
Given the relevant parcels were purchased for $37.5 million in
2008, staff believes it is reasonable to assume costs could be
in the hundreds of thousands of dollars at a minimum. However
costs in the low millions of dollars could be possible.
The acquisition of a right-of-way or easement to the shoreline
would also involve maintenance and operation costs. Ongoing
costs would depend on the terms of the negotiation or eminent
domain and whether the SLC could establish an agreement with
another agency or private party (such as a non-profit) to assist
with the operation and maintenance of the right-of-way or
easement.
Staff notes that the bill does not specify a funding source for
the property purchase or operations and maintenance costs.
Unless otherwise specified, it is presumed that these costs
would come from the General Fund.