California Senate Bill SB792 Introduced / Bill

 BILL NUMBER: SB 792INTRODUCED BILL TEXT 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 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 introduced, 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 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 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 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 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 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 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 of 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. 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) In 1998, 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. (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 are of equal or greater value than 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 dual-use 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 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.  5006.8. (a) For purposes of this section, the following definitions shall apply: (1) "City" means the City and County of San Francisco. (2) "Project" means the development of a combination of uses, such as a stadium, retail and entertainment center, and associated support uses, including parking, approved by the voters of the city by Propositions D and F at the June 3, 1997, special election. (3) "Project area" means the total area necessary for the project as shown on the site diagram. (4) "Recreation area" means the Candlestick State Recreation Area. (5) "Site diagram" means that certain preliminary conceptual site drawing, dated July 22, 1998, on file with the Department of City Planning of the city, showing, for reference purposes only, the project area, including the proposed location of the new ring road, the area within the inner circumference of the new ring road for permanent public parking use, and the area outside the outer circumference of the new ring road for temporary or intermittent public parking use on state property. For purposes of this section, the final site diagram for the project area, which shall supersede any preliminary site diagrams, shall be subject to the approval of the department and the State Lands Commission. (6) "State property" means the property or interests in property owned by the state located within the project area. A portion of the state property is proprietary land under the jurisdiction of the Department of Parks and Recreation and the remainder of the state property is sovereign land under the jurisdiction of the State Lands Commission. (b) Notwithstanding any other provision of law, the director may enter into agreements, on those terms and conditions that the director determines to be in the best interests of the state, concerning the development and operation of the project. The agreements may provide for, without limitation, easements, exchanges, quit claims, leases, operating agreements, special use permits, or agreements for the conveyance of fee title of any property interests of the department within the recreation area. The department shall receive at least fair market value for the property interests conveyed by the department. The department may execute leases, operating agreements, and special use permits regarding proprietary lands within the state property for terms not exceeding 66 years. The director may change the boundaries of the recreation area as necessary to reflect the agreements contemplated by this section. (c) Notwithstanding any other provision of law, the State Lands Commission may enter into agreements regarding any sovereign lands within the state property, on those terms and conditions that the State Lands Commission determines to be in the best interests of the state, concerning the development and operation of the project. Subject to applicable requirements of the public trust for commerce, navigation, and fisheries, the agreements may provide, without limitation, for leases, operating agreements, and, to the extent permitted under paragraph (1) or (2), sale or exchange agreements of all or any portion of state property. Those leases shall be for a term not exceeding 66 years. Any land or interest in land received in an exchange shall have a value that is equal to or greater than the value of the property interest conveyed by the State Lands Commission. In furtherance of the foregoing: (1) The State Lands Commission may enter into agreements, including agreements providing for termination of the public trust or the termination of any trust imposed by Chapter 1333 of the Statutes of 1968, as amended, or both, for the exchange of trust land within the project area whereby any of the lands that are subject to the trust may be exchanged for other land inside or outside the project area that is at least equal or greater in value, which is useful for trust purposes, and that is in a location approved by the State Lands Commission, if the findings set forth in Section 5 of Chapter 310 of the Statutes of 1987 are made, or, for those lands that are not included in Chapter 1333 of the Statutes of 1968, as amended, if the requirements of Section 6307 are satisfied. (2) For purposes of Section 3 of Article X of the California Constitution, the Legislature hereby finds and declares that tidelands within the project area that were reserved to the state solely for street purposes and that, as found by the State Lands Commission, meet each of the criteria set forth in subparagraphs (A) to (E), inclusive, are no longer useful for navigation purposes and are not necessary for those purposes, and may be sold by the State Lands Commission, to the city, free of the public trust or any trust imposed by Chapter 1333 of the Statutes of 1968, as amended, or both. Before any reserved street areas within the project area may be sold, the State Lands Commission shall make all of the following findings regarding reserved street areas proposed for sale: (A) The area has been filled and reclaimed. (B) The area is located within the outer circumference of the ring road for the project, as shown on the site diagram. (C) The area is no longer needed or required for promotion of the public trust for commerce, navigation, and fisheries. (D) The state will receive consideration for the sale of the street area that is equal to or greater in value than the value of the street areas sold. (3) In any case in which the state, pursuant to this section, conveys filled tidelands or submerged lands to the city, the state shall reserve 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 thereto, 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 Chapter 1333 of the Statutes of 1968, as amended, or Section 6401, 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 any grantee or by the grantee's successors or assignees. (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 any grantee of the lands or the grantee's successors or assignees. (4) With respect to any filled tidelands or submerged lands conveyed to the city pursuant to Chapter 2 of the Statutes of 1958, First Extraordinary Session, the state shall comply with the limitations on any mineral rights reservations provided for in paragraph (3), and shall modify the instruments reserving those mineral rights reservations, as appropriate, to memorialize those limitations. (d) The property interests in the state property to be conveyed to the city pursuant to the authorizations contained in subdivisions (b) and (c) shall be subject to the following additional limitations: (1) No more than 20 acres of the state property may be paved or otherwise used as permanent parking for the project. (2) No more than 60 acres of state property may be used for intermittent public parking for football games and a limited number of other special events related to the project, and for all other days of the year, that state property shall be available to the public for recreation purposes. Any agreements related to parking for the project on state property north of Yosemite Slough shall terminate no later than January 31, 2004. (3) The consideration for those property interests may consist of any of the following: (A) Monetary consideration. (B) Improvements to the recreation area that support its use as a public park. (C) Replacement of any portion of the recreation area conveyed to the city with recreation benefits or facilities of equal or greater value within the recreation area. (D) Other nonmonetary consideration, including, but not limited to, relinquishment by the city of its reversionary rights over parcels conveyed to the state in 1983 for formation of the recreation area. (E) Any combination of the foregoing. (e) All state agencies shall take any necessary or appropriate action to implement this section in a timely manner.  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 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, or corporation 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 they 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. 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 to be exchanged have been filled and reclaimed, are cut off from access to the waters of San Francisco Bay, are no longer needed or required for the promotion of the public trust for commerce, navigation, and fisheries, and constitute a relatively small portion of the granted lands within the city. (2) The lands to be acquired by the agency have a 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 will ensue by virtue of the exchange. (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. 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 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 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. (b) The commission may not approve the exchange of any trust lands unless it finds all of the following: (1) 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. (2) 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. (3) The value of the lands to be exchanged into the trust is equal to or greater than the value of the lands to be exchanged out of the trust. In determining the value of these lands, the commission may take into consideration the degree of uncertainty, if any, as to whether the lands remain subject to the trust or have been freed from the trust. (4) The lands to be taken out of the trust have been filled and reclaimed, are cut off from access to navigable waters, are no longer needed or required for the promotion of the public trust, and constitute a relatively small portion of the lands granted by the state within the city, and the exchange will not result in substantial interference with trust uses and purposes. (5) Each trustee and a state agency, which owns or will own fee title in any of the lands to be exchanged, has approved the exchange. (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 use. In addition, adequate parking areas accessible to the public to support regional use of the hillside open space shall be dedicated in an area adjacent to the lower portion of the hillside open space. (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 21 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 value of all of the lands exchanged into the trust in the current and previous phases is equal to or greater than the cumulative value of all of the 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 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) 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 benefits to the state recreation area. (3) Any lands in which the state's sovereign interests are to be conveyed shall be freed of the public trust, or shall be held by the agency or the city subject to the public trust, pursuant to an exchange agreement approved by the commission in accordance with this act. (4) The configuration of park lands following the exchange shall be substantially similar to that shown on the diagram included as Section 27 of this act. If, at the time the exchange agreement is entered into, the agency has not acquired title to any portion of the lands within the shipyard that are to be exchanged into 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 improvement, maintenance, or operation of the state recreation area. (2) The cost of 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. (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. 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, in the elimination of blight, and in the provision of affordable housing opportunities, and that the development of the project will further the statewide purposes reflected 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. 3. The City and County of San Francisco, its successors, and assigns, may use such streets and railway right-of-way for any purpose of general statewide interest, including but not limited to public parking, and may, for such purposes, reclaim or fill such streets and railway right-of-way.  SEC. 30. 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. 31. 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. 32. Nothing in this act may be construed to authorize the development of housing on public trust land. SEC. 33. 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. 34. 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 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. SEC. 35. 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. 36. 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. 37. 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.