California Assembly Bill AB664 Amended / Bill

 BILL NUMBER: AB 664AMENDED BILL TEXT AMENDED IN SENATE AUGUST 31, 2011 AMENDED IN SENATE AUGUST 17, 2011 AMENDED IN SENATE JULY 12, 2011 AMENDED IN SENATE JUNE 29, 2011 AMENDED IN SENATE JUNE 6, 2011 AMENDED IN ASSEMBLY APRIL 25, 2011 AMENDED IN ASSEMBLY APRIL 13, 2011 INTRODUCED BY Assembly Member Ammiano (Coauthors: Assembly Members Gordon, Hill, and Ma) (Coauthor: Senator Leno) FEBRUARY 17, 2011 An act to amend Section 53395.8 of, and to add Sections 53395.81 and 53397.71 to, the Government Code,  and to amend Sections 3 and 5 of Chapter 898 of the Statutes of 1997,  relating to infrastructure financing districts. LEGISLATIVE COUNSEL'S DIGEST AB 664, as amended, Ammiano. Infrastructure financing districts: America's Cup  and Treasure Island   venues  . Existing law authorizes the City and County of San Francisco to create infrastructure financing districts, including districts that include specified waterfront property, adopt infrastructure financing plans for those districts, and issue bonds financed by projected increases in ad valorem property taxes to fund certain public facilities, pursuant to a specified procedure. Existing property tax law establishes various procedures and requirements with respect to the annual apportionment and allocation of ad valorem property tax revenues, including increased revenues from these infrastructure financing districts. This bill would authorize the adoption under these provisions of financing plans for special waterfront districts that include the waterfront area in the City and County of San Francisco designated as the America's Cup venues  and certain lands on Treasure Island  , and the use of specified tax revenues produced in the districts for the construction of the Port of San Francisco's maritime facilities at Pier 27, improvement of publicly held waterfront lands used as viewing sites,  affordable housing,  and other matters, subject to specified allocation procedures. It would require the county board of supervisors to submit a fiscal analysis to the California Infrastructure and Economic Development Bank for review and approval before adopting the resolution authorizing the issuance of debt pursuant to these provisions. The bill would exempt the issuance of tax increment bonds in a waterfront district from local voter approval requirements and would authorize those bonds to be sold at a negotiated sale. The bill would enact other related provisions. This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) Areas of San Francisco, including portions of the San Francisco waterfront, are characterized by deteriorating conditions that cannot be remedied by private investment alone, and require the use of public financing mechanisms to finance the rectification of deteriorating conditions. (b) In February 2010, the BMW ORACLE Racing Team (and its successors, the "team"), sailing under the burgee of the Golden Gate Yacht Club, won the 33rd America's Cup, off the coast of Valencia, Spain. The America's Cup, which was first awarded in 1851, is the oldest sporting trophy in sailing history. On December 31, 2010, the team designated the City and County of San Francisco to host the 34th America's Cup sailing regatta. The team has designated as the potential venue for the 34th America's Cup the San Francisco waterfront area generally between the Golden Gate Bridge to the north and Pier 80 to the south. The team anticipates holding the 34th America's Cup match in San Francisco Bay in 2013, with preliminary races worldwide beginning in 2011 and in San Francisco Bay in 2012. The City and County of San Francisco is conducting environmental review of the 34th America's Cup match and preregattas. (c) An economic impact study by the Bay Area Council's Economic Institute and Beacon Economics released in July 2010 concludes that hosting the America's Cup on the San Francisco Bay would generate nearly 9,000 jobs and $1.4 billion in direct spending in the San Francisco Bay area and California, and nearly $1.9 billion nationwide. The study reports that the America's Cup is the world's third largest sporting competition after the Olympics and soccer's World Cup. (d) The San Francisco waterfront is a valuable public trust asset of the state that provides special maritime, navigational, recreational, cultural, and historical benefits to the people of the region and the state. Realizing the goals of the port waterfront land use plan, the San Francisco Bay Conservation and Development Commission special area plan, and the port capital plan is a matter of statewide significance, and rectifying the deteriorating conditions along the San Francisco waterfront caused by deferred maintenance since 1969 by providing a financing mechanism, through the use of incremental property tax revenues, is a matter of statewide importance that will further the purposes of both the public trust and the Burton Act trust. Public facilities along the San Francisco waterfront to be financed pursuant to the infrastructure financing district law will increase public access to, and use or enjoyment of, public trust lands and are, therefore, facilities of statewide and communitywide significance. (e) The City and County of San Francisco has agreed to provide the team with venues for regattas, team and competitor facilities, sponsorship activities, spectator viewing, and ancillary activities, subject to completion of environmental review and review and approval of the planned facilities for the event. The venues are likely to be located on water areas, piers and wharves, and waterfront and landside property under Port of San Francisco jurisdiction, generally from the Golden Gate Bridge to Pier 80, and will include shared use of the city's new cruise terminal facility to be built on Pier 27; all of the venues, as determined from time to time, are collectively referred to as the "America's Cup venues."  (f) Portions of Naval Station Treasure Island, a former military base located on Treasure Island and Yerba Buena Island in San Francisco Bay, are potential America's Cup venues. Naval Station Treasure Island was selected for closure and disposition by the Base Closure and Realignment Commission in 1993, acting under Public Law 101-510 and its subsequent amendments, and was closed in 1997.   (g) In order to mitigate the serious economic effects of the closure of Naval Station Treasure Island on the City and County of San Francisco, its surrounding communities, and the state, the Legislature enacted the Treasure Island Conversion Act of 1997 (Chapter 898 of the Statutes of 1997), which grants in trust to the Treasure Island Development Authority the state's sovereign interest in former and existing tidelands within Naval Station Treasure Island, and establishes the authority as the trust administrator for those lands for the benefit of the people of the state in conformance with the public trust for commerce, navigation, and fisheries.   (h) The Navy and the authority have negotiated an agreement for the transfer of the Navy-owned portion of the Treasure Island (TI) property, as defined in paragraph (13) of subdivision (l) of Section 53395.81. Portions of the TI property will be subject to the public trust upon their transfer from federal ownership.   (i) The proposed reuse and development of the TI property includes an innovative and comprehensive land use and transportation program designed to discourage motor vehicle usage, reduce vehicle miles traveled, encourage public transit, and serve as a model of sustainable neighborhood development in furtherance of the California Global Warming Solutions Act of 2006 (Division 25.2 (commencing with Section 38500) of the Health and Safety Code). The proposed reuse and development of the TI property will meet or exceed the requirements of the California Green Building Standards Code.   (j) The proposed reuse and development of the TI property will provide significant benefits to the region and the state, including, but not limited to, converting the TI property to productive reuse; leveraging significant federal funding for the Navy's environmental remediation of the TI property; providing public facilities that are of benefit to the region and the state by increasing public access to, and use and enjoyment of, public trust lands, such as transportation facilities, public parks, open space, and recreational facilities; increasing the region's supply of affordable housing; and rehabilitating, restoring, and preserving historical structures listed on the National Register of Historic Places.   (k)   (f)  The City of San Francisco intends to establish infrastructure financing districts to finance public facilities along the San Francisco waterfront through its port and the authority or another related entity, including one or more districts covering any approved America's Cup venues. Due to the extraordinary capital  needs of the port, and in order to mitigate the serious economic effects of the closure of Naval Station Treasure Island on the City and County of San Francisco, the region, and the state, it is the   needs of the port, it is the  intent of the Legislature in enacting this act to provide the City of San Francisco  , its port, and the authority   and its port  the widest latitude, within the framework of the infrastructure financing district law, to create and operate infrastructure financing districts to construct needed public facilities on waterfront lands in order to meet the stated goals of statewide and communitywide significance.  (l) The plan for the development of the TI property, including the use of one or more waterfront districts under this act, will be fiscally sustainable, will create significant numbers of new construction and permanent jobs, will address the problems of greenhouse gas emissions and transportation, and will promote infill development. Development of the TI property presents a particularly advantageous opportunity to benefit the City and County of San Francisco, the region, and the state due to special and unique circumstances, including, without limitation, the benefits described above, the extraordinary location of the TI property, and the ability to leverage significant federal and other external funding. In addition, this act would provide a method for increasing, improving, and preserving low- and moderate-income housing on the TI property.   (m) The TI property is substantially undeveloped and, in a waterfront district containing the TI property, all improvements authorized by this act would have communitywide significance.  SEC. 2. Section 53395.8 of the Government Code is amended to read: 53395.8. (a) This section applies only to the City and County of San Francisco, and to any waterfront district. (b) In addition to the findings and declarations in Section 53395, the Legislature further finds and declares that providing the ability to capture property tax increment revenues to finance needed public facilities in waterfront lands in San Francisco that are subject to the public trust to the public agencies with the responsibility to administer those areas will further the objectives of the public trust and enjoyment of those trust lands by the people of the state. (c) For purposes of this section, the following terms have the following meanings except as otherwise provided: (1) "Affected taxing entity" means any governmental taxing agency, except San Francisco and its local educational agencies, that levied or had levied on its behalf a property tax on all or a portion of the land located in the proposed district in the fiscal year prior to the designation of the district, all or a portion of which the district proposes to collect in the future under its infrastructure financing plan. (2) "Base year" means the fiscal year during which any infrastructure financing plan adopted under this chapter becomes effective. (3) "Board" means the Board of Supervisors of the City and County of San Francisco, which shall be the legislative body for any district formed under this section.  (4) "Burton Act" means Chapter 1333 of the Statutes of 1968, as amended.   (5) "Burton Act trust" means the statutory trust imposed by the Burton Act.   (6)   (4)  "Debt" means loans, advances, or other forms of indebtedness and financial obligations, including, but not limited to, commercial paper, variable rate demand notes, all moneys payable in relation to the debt, and all debt service coverage requirements in any debt instrument, in addition to the obligations specified in the definition of "debt" in Section 53395.1.  (7)   (5)  "District" means any district created under this chapter, including any project area within a district.  (8)   (6)  "ERAF" means the Educational Revenue Augmentation Fund.  (9)   (7)  "ERAF-secured debt" means debt incurred to finance a Pier 70 district subject to a Pier 70 enhanced financing plan that is secured by and will be repaid from the ERAF share.  (10)   (8)  "ERAF share" means the county ERAF portion of incremental tax revenue committed to a Pier 70 district under a Pier 70 enhanced financing plan.  (11)   (9)  "Local educational agencies" means, collectively, the San Francisco Unified School District, the San Francisco Community College District, and the San Francisco County Office of Education.  (12)   (10)  "Mirant site" means the San Francisco waterfront land owned by Mirant Corporation, on which it or its affiliate formerly operated a coal gasification powerplant.  (13)   (11)  "Pier 70 district" means a waterfront district that includes 65 acres of waterfront land in the area near Pier 70.  (14)   (12)  "Pier 70 enhanced financing plan" means an infrastructure district financing plan for a Pier 70 district that contains a provision authorized under subparagraph (D) of paragraph (3) of subdivision (g).  (15)   (13)  "Port" means the Port of San Francisco.  (16)   (14)  "Project area" means a defined area designated for development within a waterfront district formed under this chapter in accordance with subdivision (g).  (17)   (15)  "Public facilities" means facilities and, where the context requires, related services, authorized to be financed in any part by a district formed under this chapter in accordance with subdivision (g).  (18)   (16)  "San Francisco" means the City and County of San Francisco. For purposes of applying this chapter, San Francisco is a city.  (19)   (17)  "Waterfront district" means a district formed under this chapter on land under port jurisdiction along the San Francisco waterfront and any special waterfront district as defined in Section 53395.81.  (20)   (18)  "Waterfront set aside" means the restricted funds required to be set aside under clause (ii) of subparagraph (C) of paragraph (3) of subdivision (g). (d) In addition to the facilities and services authorized by Section 53395.3, a waterfront district may finance any of the following: (1) Remediation of hazardous materials in, on, under, or around any real or tangible property. (2) Seismic and life-safety improvements to existing buildings. (3) Rehabilitation, restoration, and preservation of structures, buildings, or other facilities having special historical, architectural, or aesthetic interest or value and that are listed on the National Register of Historic Places, are eligible for listing on the National Register of Historic Places individually or because of their location within an eligible registered historic district, or are listed on a state or local register of historic landmarks. (4) Structural repairs and improvements to piers, seawalls, and wharves. (5) Removal of bay fill. (6) Stormwater management facilities, other utility infrastructure, or public open-space improvements. (7) Shoreline restoration. (8) Other repairs and improvements to maritime facilities. (9) Planning and design work that is directly related to any public facilities authorized to be financed by a waterfront district. (10) Reimbursement payments made to the California Infrastructure and Economic Development Bank in accordance with paragraph (5) of subdivision  (f)   (d)  of Section 53395.81  , and paragraph (5) of subdivision (g) of Section 53395.81.   .  (e) A waterfront district may include, and finance public facilities on, tidelands and submerged lands, including filled or unfilled lands, subject to the public trust for commerce, navigation, and fisheries, and the applicable statutory trust grant or grants. Public facilities located on tidelands and submerged lands shall serve and promote uses and purposes consistent with the public trust and applicable statutory trust grants. Public facilities that increase access to, or the use or enjoyment of, public trust lands will be deemed to be facilities of communitywide significance that provide significant benefits to an area larger than the area of the district. (f) Public facilities financed by a waterfront district shall be public trust assets subject to the administration and control of the district, except for the following: (1) Utility infrastructure and public transportation facilities, except maritime transportation facilities that are administered and controlled by another entity under an agreement with the port. (2) Public facilities on land located in a previously formed waterfront district that the port subsequently leases, sells, or otherwise transfers to any person free of the public trust, the Burton Act trust, and any additional restrictions on use or alienability created by the Burton Act transfer agreement, provided that the State Lands Commission has concurred in the lifting of trust restrictions on the transferred land and that the transferred land will remain in and subject to the district.  (3) Any improvement or facility financed by a TI district as defined in Section 53395.81.  (g) For a waterfront district, the requirements of this subdivision supplant and replace the provisions of Sections 53395.10 to 53395.25, inclusive. The board may adopt or amend one or more infrastructure financing plans for districts along the San Francisco waterfront according to the procedures in this section. Except as provided otherwise in this subdivision or in Section 53395.81, the provisions of subdivisions (a) and (b) of Section 53395.4 shall not apply to a waterfront district. A waterfront district may be formed and become effective at any time. A district may be divided into project areas, each of which may be subject to distinct time limitations established under this subdivision. (1) The board shall initiate proceedings for the establishment of a district by adopting a resolution of intention to establish the proposed district that does all of the following: (A) States an infrastructure financing district is proposed to be established and describes the boundaries of the proposed district. The boundaries may be described by reference to a map on file in the office of the clerk of the board. (B) States the type of public facilities proposed to be financed by the district. (C) States that incremental property tax revenue from San Francisco and some or all affected taxing entities within the district, but none of the local educational agencies, may be used to finance these public facilities. (D) Directs the executive director of the port, or an appropriate official designated by the executive director, to prepare a proposed infrastructure financing plan. (2) The board shall direct the city clerk to mail a copy of the resolution of intention to any affected taxing entities. (3) The proposed infrastructure financing plan shall be consistent with the general plan of San Francisco, as amended from time to time, and shall include all of the following: (A) A map and legal description of the proposed district, which may include all or a portion of the district designated by the board in its resolution of intention. (B) A description of the public improvements and facilities required to serve the development proposed in the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and projected costs of the public improvements and facilities. (C) A financing section that shall contain all of the following: (i) A provision that specifies the maximum portion of the incremental tax revenue of San Francisco and of any affected taxing entity proposed to be committed to the district, and affirms that the plan will not allocate any portion of the incremental tax revenue of the local educational agencies to the district. (ii) Limitations on the use of levied taxes allocated to and collected by the district that provide that incremental tax revenues allocated to a district must be used within the district for purposes authorized under this section, and that not less than 20 percent of the amount allocated to a district shall be set aside to be expended solely on shoreline restoration, removal of bay fill, or waterfront public access to or environmental remediation of the San Francisco waterfront. (iii) A projection of the amount of incremental tax revenues expected to be received by the district, assuming a period of 45 years beginning on the date on which San Francisco projects that the district will have received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter. (iv) Projected sources of financing for the public facilities to be assisted by the district, including debt to be repaid with incremental tax revenues, projected revenues from future leases, sales, or other transfers of any interest in land within the district, and any other legally available sources of funds. (v) A limitation on the number of dollars of levied taxes that may be divided and allocated to the district. Taxes shall not be divided or be allocated to the district beyond this limitation, except by amendment of the infrastructure financing plan pursuant to the procedures in this subdivision. (vi) A date on which the effectiveness of the infrastructure financing plan and all tax allocations to the district will end and a time limit on the district's authority to repay indebtedness with incremental tax revenues received under this chapter, not to exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district shall not receive incremental tax revenues under this chapter. (vii) An analysis of the costs to San Francisco for providing facilities and services to the district while the district is being developed and after the district is developed, and of the taxes, fees, charges, and other revenues expected to be received by San Francisco as a result of expected development in the district. (viii) An analysis of the projected fiscal impact of the district and the associated development upon any affected taxing entity. If no affected taxing entities exist within the district because the plan does not provide for collection by the district of any portion of property tax revenues allocated to any taxing entity other than San Francisco, the district has no obligation to any other taxing entity under this subdivision. (ix) A statement that the district will maintain accounting procedures in accordance, and otherwise comply, with Section 6306 of the Public Resources Code for the term of the plan. (D) For a Pier 70 district only, the Pier 70 enhanced financing plan may contain a provision meeting the requirements of Section 53396 that allocates a portion of the incremental tax revenue of San Francisco and of other designated affected taxing entities to the Pier 70 district. The portion of incremental tax revenue of San Francisco to be allocated to the Pier 70 district must be equal to the portion of the incremental tax revenue of the county ERAF proposed to be committed to the Pier 70 district. In addition to all other requirements under this section, a Pier 70 district shall also be subject to the following additional limitations: (i) A Pier 70 district subject to a Pier 70 enhanced financing plan shall not be formed and become effective prior to January 1, 2014. (ii) Any Pier 70 enhanced financing plan shall contain all of the following: (I) A time limit on new ERAF-secured debt to finance the district, which may not exceed 20 fiscal years from the fiscal year in which any Pier 70 district subject to a Pier 70 enhanced financing plan first issues debt. The ERAF-secured debt may be repaid over the period of time ending on the time limit established under clause (vi) of subparagraph (C). This time limit on new ERAF-secured debt shall not prevent a Pier 70 district from subsequently refinancing, refunding, or restructuring ERAF-secured debt if the debt is not increased and the time during which the debt is to be repaid is not extended beyond the time limit established under clause (vi) of subparagraph (C). (II) A statement that the Pier 70 district shall be subject to a limitation on the number of dollars of the ERAF share that may be divided and allocated to the Pier 70 district pursuant to the Pier 70 enhanced financing plan, including any amendments to the plan, which shall be established in consultation with the county auditor. This limitation and a schedule specifying the amount of the ERAF share that must be divided and allocated to the district in each succeeding fiscal year until all ERAF-secured debt has been paid shall be included in the statement of indebtedness that the Pier 70 district files for the 19th fiscal year after the fiscal year in which any ERAF-secured debt is first issued. The ERAF share shall not be divided and shall not be allocated to the Pier 70 district beyond that limitation. (III) The limitations established by subclauses (I) and (II) may be amended only by amendment of this section. When the ERAF-secured debt, if any, has been paid, all moneys thereafter allocated to the ERAF share shall be paid into ERAF as taxes on all other property are paid. In addition, beginning in the 21st fiscal year after the fiscal year in which ERAF-secured debt is first issued, any portion of the ERAF share in excess of the amount required to meet the Pier 70 district's ERAF-secured debt service obligations shall be paid into ERAF. (4) The proposed infrastructure financing plan shall be mailed to each affected taxing entity for review, together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities and any proposed development project for which the public facilities are needed, and shall be made available for public inspection. The report also shall be sent to the San Francisco Planning Department and the board. (5) Except as provided in subdivision (i), the board shall not enact a resolution proposing formation of a district and providing for the division of taxes of any affected taxing entities for use in the Pier 70 district as set forth in the proposed infrastructure financing plan unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity that is proposed to be subject to division of taxes as set forth in the proposed infrastructure financing plan, and that resolution has been filed with the board at or prior to the time of the hearing. A resolution approving the plan adopted by the governing body of an affected taxing entity shall be deemed the affected taxing entity's agreement to participate in the plan for the purposes of Section 53395.19. (6) If the governing body of an affected taxing entity has not approved the infrastructure financing plan before the board considers the plan, the board may amend the infrastructure financing plan to remove the allocation of the tax revenues of the nonconsenting affected taxing entity. If a plan is so amended, the plan also shall be amended to provide that San Francisco will allocate to the Pier 70 district funds equal on a dollar-for-dollar basis to the tax revenues that the Pier 70 district would have received from the allocation of tax revenues of the affected taxing entity that is removed from the plan. (7) The board shall hold a public hearing regarding the infrastructure financing plan that shall be scheduled on a date no earlier than 60 days after the plan has been sent to each affected taxing entity, or in the absence of any affected taxing entities, no earlier than 30 days after the plan has been lodged with the clerk of the board. Notice of the public hearing must be published not less than once a week for four successive weeks in a newspaper designated by the board for the publication of official notices in San Francisco, or if the board no longer designates a newspaper for the publication of official notices, a newspaper of general circulation serving primarily San Francisco residents. The notice shall state that the district will be established to finance public facilities, briefly describe the public facilities and the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the previous proceedings, may appear before the board and object to the adoption of the proposed infrastructure financing plan by the board. (8) At the hour set in the required notices, the board shall proceed to hear and pass upon all written and oral objections. The hearing may be continued from time to time. The board shall consider any recommendations of affected taxing entities, and all evidence and testimony for and against the adoption of the infrastructure financing plan. (9) No election will be required to form the district, and at the conclusion of the hearing, the board may adopt an ordinance adopting the infrastructure financing plan, as drafted or as modified by the board, or it may abandon the proceedings. (10) Any public or private owner of land that is not within an existing district, but that has any boundary line contiguous to a boundary of the waterfront district, may petition the board for inclusion of the land in the waterfront district without an election. As a condition to inclusion of its land in the waterfront district, the petitioning landowner shall acknowledge and agree that any portion of the land within 100 feet of the San Francisco Bay Conservation and Development Commission shoreline (shoreline band) will include contiguous public access along the length of the shoreline band, improved and maintained to standards equal to adjacent waterfront public access ways on public land, as certified by the San Francisco Bay Conservation and Development Commission. Nothing in this section is intended to affect or limit the authority of the San Francisco Bay Conservation and Development Commission pursuant to Chapter 1 (commencing with Section 66600) of Title 7.2, or any other law. This procedure will apply to any petition to include the Mirant site in the Pier 70 district, but the board may amend the Pier 70 financing plan to include the Mirant site in the Pier 70 district only after the Director of Finance's approval. (11) The ordinance creating a district and adopting or amending an infrastructure financing plan shall establish the base year for the district. The board may amend an infrastructure financing plan by ordinance to divide an established district into one or more project areas, to reduce the district area, or, to expand a waterfront district to include the petitioning landowner's land in the district in accordance with the board's established procedures. Any ordinance adopting or amending an infrastructure financing plan will be deemed an ordinance adopted for the purposes of Section 53395.23. (12) With respect to a waterfront district, San Francisco may enter into an agreement for the construction of discrete portions or phases of facilities. The agreement may include any provisions that San Francisco determines are necessary or convenient, but shall do all of the following: (A) Identify the specific facilities or discrete portions or phases of facilities to be constructed and purchased. San Francisco may agree to purchase discrete portions or phases of facilities if the portions or phases are capable of serviceable use as determined by San Francisco. (B) Notwithstanding subparagraph (A), when the purchase value of a facility exceeds one million dollars ($1,000,000), San Francisco may agree to purchase discrete portions or phases of the partially completed facility. (C) Identify procedures to ensure that the facilities are constructed pursuant to plans, standards, specifications, and other requirements as determined by San Francisco. (D) Specify a price or a method to determine a price for each facility or discrete portion or phase of a facility. The price may include an amount reflecting the interim cost of financing cash payments that must be made during construction of the project, at the discretion of San Francisco. (E) Specify procedures for final inspection and approval of facilities or discrete portions or phases of facilities, for approval of payment and for acceptance and conveyance. (h) (1) All the amounts calculated under this subdivision shall be calculated after deducting the waterfront set-aside required  under clause (ii) of subparagraph (C) of paragraph (3) of subdivision (g), or paragraph (3) or (4) of subdivision (e) of Section   under paragraph (3) of subdivision (c) of Section  53395.81, as applicable, from the total amount of tax increment funds allocated to a district in the applicable fiscal year. The payments made under this subdivision to the affected taxing entities shall be allocated among the affected taxing entities in proportion to the percentage share of property taxes each affected taxing entity receives during the fiscal year the funds are allocated. The percentage share shall be determined without regard to any amounts allocated to a city, county, or city and county under Sections 97.68 and 97.70 of the Revenue and Taxation Code. (2) (A) Prior to incurring any debt, except loans or advances from San Francisco, a district may subordinate to the debt the amount required to be paid to an affected taxing entity under this subdivision, if any, provided the affected taxing entity has approved these subordinations as provided in this paragraph. (B) At the time the district requests an affected taxing entity to subordinate the amount to be paid to it, the district shall provide the affected taxing entity with substantial evidence that sufficient funds will be available to pay when due both the debt service on the debt and the payments to the affected taxing entity required under this subdivision. (C) Within 45 days after receipt of the district's request, the affected taxing entity shall approve or disapprove the request for subordination. An affected taxing entity may disapprove a request for subordination only if it finds, based upon substantial evidence, that the district will not be able to pay when due the debt payments and the amount required to be paid to the affected taxing entity. If the affected taxing entity does not act within 45 days after receipt of the district's request, the request to subordinate shall be deemed approved and its deemed approval shall be final and conclusive. (D) For the purpose of this paragraph only, "affected taxing entity" shall mean any governmental agency that levied, or had levied on its behalf, a property tax on all or a portion of the land located in the proposed district in the fiscal year prior to the designation of the special waterfront district. (3) The Legislature finds and declares all of the following: (A) The payments to be made under this subdivision are necessary in order to alleviate the financial burden and detriment that affected taxing entities may incur as a result of the adoption of an infrastructure financing plan, and payments made under this subdivision will benefit the district. (B) The payments to be made under this subdivision are the exclusive payments that are required to be made by a district to affected taxing entities during the term of an infrastructure financing plan. (4) Nothing in this section requires a district, either directly or indirectly, as a measure to mitigate a significant environmental effect or as part of any settlement agreement or judgment brought in any action to contest the validity of a district under Section 53395.6, to make any other payments to affected taxing entities, or to pay for public facilities that will be owned or leased to an affected taxing entity. (i) The portion of taxes required to be allocated to the Pier 70 district under a duly adopted infrastructure financing plan shall be allocated and paid to the district by the county auditor or officer responsible for the payment of taxes into the funds of the respective taxing entities under the procedure contained in this subdivision. If the approved plan allocates to the Pier 70 district 100 percent of the incremental tax revenue of San Francisco that is available under applicable law to be allocated to the Pier 70 district, then the district shall not make a payment to ERAF, but if the plan allocates less than 100 percent of the incremental tax revenue of San Francisco that is available under applicable law to be allocated to the Pier 70 district, then the district shall pay a proportionate share of incremental tax revenue into ERAF. (1) No later than October 1 of each year, for each district for which the infrastructure financing plan provides for the division of taxes, the district shall file with the county auditor or officer a statement of indebtedness and a reconciliation statement for the previous fiscal year certified by the chief financial officer of the district. (2) Each statement of indebtedness shall contain all of the following: (A) For each debt the district has incurred or entered into, all of the following: (i) The date the district incurred or entered into the debt. (ii) The principal amount, term, purpose, interest rate, and total interest payable over the term of the debt. (iii) The principal amount and interest due in the fiscal year in which the statement is filed. (iv) The total amount of principal and interest remaining to be paid over the term of the debt. (B) The sum of the principal and interest due on all debts in the fiscal year in which the statement is filed. (C) The sum of principal and interest remaining to be paid on all debts. (D) The available revenues as of the end of the previous fiscal year. (3) The district may estimate the amount of principal or interest, the interest rate, or term of any debt if the nature of the debt is such that the amount of principal or interest, the interest rate, or term cannot be precisely determined. The district may list on a statement of indebtedness any debt incurred or entered into on or before the date the statement is filed. (4) Each reconciliation statement shall include all of the following: (A) A list of all debts listed on the previous year's statement of indebtedness, if any. (B) A list of all debts not listed on the previous year's statement of indebtedness, but incurred or entered into in the previous year and paid in whole or in part from incremental tax revenue received by the district. This listing may aggregate into a single item debts incurred or entered into in the previous year for a particular purpose, such as relocation expenses, administrative expenses, consultant expenses, or remediation of hazardous materials. (C) For each debt described in subparagraph (A) or (B), all of the following shall be included: (i) The total amount of principal and interest remaining to be paid as of the later of the beginning of the previous year or the date the debt was incurred or entered into. (ii) Any increases or additions to the debt occurring during the previous year. (iii) The amount paid on the debt in the previous year from incremental tax revenue received by the district. (iv) The amount paid on the debt in the previous year from revenue other than incremental tax revenue received by the district. (v) The total amount of principal and interest remaining to be paid as of the end of the previous fiscal year. (D) The available revenues of the district as of the beginning of the previous fiscal year. (E) The amount of incremental tax revenue received by the district in the previous fiscal year. (F) The amount of available revenue received by the district in the previous fiscal year other than incremental tax revenue. (G) The sum of the amounts paid on all debts from sources other than incremental tax revenue, to the extent that the amounts are not included as available revenues under subparagraph (F). (H) The sum of the amounts specified in subparagraphs (D) to (G), inclusive. (I) The sum of the amounts specified in clauses (iii) and (iv) of subparagraph (C) of paragraph (4). (J) The amount determined by subtracting the amount determined under subparagraph (I) from the amount determined under subparagraph (H). The amount determined under this paragraph shall be the available revenues as of the end of the previous fiscal year to be reported in the statement of indebtedness. (5) For the purposes of this paragraph, available revenues shall include all cash or cash equivalents held by the district that were received by the district under subparagraph (D) of paragraph (3) of subdivision (g) and all cash or cash equivalents held by the district that are irrevocably pledged or restricted to payment of a debt that the district has listed on a statement of indebtedness. In no event shall available revenues include funds allocated to the waterfront set aside. (6) For the purposes of this subdivision: (A) the amount a district is required to deposit into the waterfront set aside shall constitute an indebtedness of the district, (B) no debt that a district intends to pay from the waterfront set aside shall be listed on a statement of indebtedness or reconciliation statement as a debt of the district, and (C) any statutorily authorized deficit in or borrowing from funds in the waterfront set aside shall constitute an indebtedness of the district. (7) The county auditor or officer shall allocate and pay, at the same time or times as the payment of taxes into the funds of the respective taxing agencies of the county, the portion of incremental tax revenues allocated to each district under the infrastructure financing plan. The amount allocated and paid shall not exceed the amount of the district's remaining debt obligations, as determined under subparagraph (C) of paragraph (2), minus the amount of available revenues as of the end of the previous fiscal year, as determined under subparagraph (D) of paragraph (2). (8) The statement of indebtedness constitutes prima facie evidence of the debts of the district. (A) If the county auditor or other officer disputes the amount of the district's debts as shown on the statement of indebtedness, the county auditor or other officer, within 30 days after receipt of the statement, shall give written notice to the district thereof. (B) The district, within 30 days after receipt of notice under subparagraph (A), shall submit any further information it deems appropriate to substantiate the amount of any debt that has been disputed. If the county auditor or other officer still disputes the amount of debt, final written notice of that dispute shall be given to the district, and the amount disputed may be withheld from allocation and payment to the district as otherwise required by paragraph (7). In that event, the auditor or other officer shall bring an action in the superior court for declaratory relief to determine the matter no later than 90 days after the date of the final notice. (C) In any court action brought under this paragraph, the issue shall involve only the amount of debt, and not the validity of any contract or debt instrument or any expenditures pursuant thereto. Payments to a trustee under a bond resolution or indenture of any kind or payments to a public agency in connection with payments by that public agency under a lease or bond issue shall not be disputed in any action under this paragraph. The matter shall be set for trial at the earliest possible date and shall take precedence over all other cases except older matters of the same character. Unless an action is brought within the time provided for herein, the auditor or other officer shall allocate and pay the amount shown on the statement of indebtedness as provided in paragraph (7). (D) Nothing in this subdivision shall be construed to permit a challenge to or attack on matters precluded from challenge or attack by reason of Sections 53395.6 and 53395.7. However, nothing in this subdivision shall be construed to deny a remedy against the district otherwise provided by law. (E) The Controller shall prescribe uniform forms consistent with this subdivision for a district's statement of indebtedness and reconciliation statement. In preparing these forms, the Controller shall obtain the input of the San Francisco City Controller, the San Francisco Tax Collector, and the district. (F) For the purposes of this subdivision, a fiscal year shall be a year that begins on July 1 and ends the following June 30. (j) (1) Prior to the adoption by the board of an infrastructure financing plan providing for tax increment financing under subparagraph (D) of paragraph (3) of subdivision (g), any affected taxing entity may elect to be allocated, and every local educational agency shall be allocated, all or any portion of the tax revenues allocated to the district under subparagraph (D) of paragraph (3) of subdivision (g) attributable to increases in the rate of tax imposed for the benefit of the taxing entity which levy occurs after the tax year in which the ordinance adopting the infrastructure financing plan becomes effective. (2) The governing body of any affected taxing entity electing to receive allocation of taxes under this subdivision shall adopt a resolution to that effect and transmit the same, prior to the adoption of the infrastructure financing plan, to (A) the board, (B) the district, and (C) the official or officials performing the functions of levying and collecting taxes for the affected taxing entity. Upon receipt by the official or officials of the resolution, allocation of taxes under this section to the affected taxing entity shall be made at the time or times allocations are made under subdivision (a) of Section 33670 of the Health and Safety Code. (3) An affected taxing entity, at any time after the adoption of the resolution, may elect not to receive all or any portion of the additional allocation of taxes under this section by rescinding the resolution or by amending the same, as the case may be, and giving notice thereof to the board, the district, and the official or officials performing the functions of levying and collecting taxes for the affected taxing entity. After receipt of a notice by the official or officials that an affected taxing entity has elected not to receive all or a portion of the additional allocation of taxes by rescission or amendment of the resolution, any allocation of taxes to the affected taxing entity required to be made under this section shall not thereafter be made but shall be allocated to the district. After receipt of a notice by the official or officials that an affected taxing entity has elected to receive additional tax revenues attributable to only a portion of the increases in the rate of tax, only that portion of the tax revenues shall thereafter be allocated to the affected taxing entity, and the remaining portion thereof shall be allocated to the district. (k) This section implements and fulfills the intent of Article 2 (commencing with Section 53395.10) and of Article XIII B and is consistent with the conclusion of California courts that tax increment revenues are not "proceeds of taxes" for purposes of the latter. The allocation and payment to a district of the portion of taxes specified in this section for the purpose of paying principal of, or interest on, loans, advances, or indebtedness incurred for facilities or the cost of acquisition and construction of facilities under this section shall not be deemed the receipt by a district of proceeds of taxes levied by or on behalf of the district within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall this portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision enacted in implementation of Article XIII B. The allocation and payment to a district of this portion of taxes shall not be deemed the appropriation by a district of proceeds of taxes levied by or on behalf of a district within the meaning or for purposes of Article XIII B of the California Constitution. SEC. 3. Section 53395.81 is added to the Government Code, to read: 53395.81. (a) This section shall apply only to a special waterfront district. (b) A special waterfront district may be created as a waterfront district pursuant to, and shall be subject to, all applicable requirements of Sections 53395.3 and 53395.8, except as provided in this section.  (c) The TI property is substantially undeveloped and, in a TI district, all improvements authorized by this chapter would have communitywide significance. The provisions of subdivision (c) of Section 53395.3 shall not apply to a TI district. A TI district may finance (1) the costs authorized by Sections 53395.3 and 53395.8, (2) the costs required to increase, improve, and preserve the supply of affordable housing on TI property, including the costs described in Section 53395.5, provided financed dwelling units may be located anywhere on TI property, and (3) the costs of work deemed necessary by the City and County of San Francisco to bring the TI property, whether that TI property is publicly or privately owned, into compliance with seismic safety standards or regulations. A TI district may not finance services or use the harbor fund to finance any costs of a TI district or to provide credit enhancement for debt issued by a TI district. No portion of a TI district may be included in a redevelopment project area later formed under Section 33000 of the Health and Safety Code, or any successor laws.   (d) The Board of Supervisors of the City and County of San Francisco may, by resolution, vest in the authority the power under this chapter to form one or more TI districts. The City and County of San Francisco and the authority may take any actions relating to TI property that would otherwise be vested in the Port of San Francisco under this chapter.   (e)   (c)  (1) The special waterfront district ERAF share produced in a  special waterfront   Port America' s Cup  district with a special waterfront district enhanced financing plan shall be used only to finance the following:  (A) With respect to a Port America's Cup district:   (i)   (A)  Construction of the port's maritime facilities at Pier 27.  (ii)   (B)  Planning and design work that is directly related to the port's maritime facilities at Pier 27.  (iii)   (C)  Planning, design, and construction of improvements to publicly owned waterfront lands held by trustee agencies, such as the National Park Service and the California State Parks, and used as public spectator viewing sites for America's Cup-related events, including the San Francisco Bay Trail along the Marina Green.  (iv)   (D)  Future installations of shoreside power facilities on port maritime facilities.  (B) With respect to a TI district, any purpose authorized by subdivision (c).  (2) A special waterfront district enhanced financing plan for a Port America's Cup district shall provide that the proceeds of special waterfront district ERAF-secured debt are restricted for use to finance directly, reimburse the port for its costs related to, or refinance other debt incurred in, the construction of the port's maritime facilities at Pier 27, including public access and public open-space improvements.  A special waterfront district enhanced financing plan for a TI district shall provide that the proceeds of the special waterfront district ERAF share and special waterfront district ERAF-secured debt are restricted to finance authorized improvements required for the development of TI property.  (3) Twenty percent in the aggregate of the special waterfront district ERAF share allocated to a Port America's Cup district under this section shall be set aside to finance costs of improvements to federally- or state-owned waterfront lands approved by trustee agencies such as the National Park Service or the California State Parks as provided in  clause (iii) of subparagraph (A) of paragraph (1). The foregoing 20 percent set aside shall not apply to the special waterfront district ERAF share allocated to a TI district.   (4) A special waterfront district enhanced financing plan for a TI district shall comply with both of the following:   (A) San Francisco shall use at least 20 percent of the incremental tax revenue allocated to the TI district for the purposes of increasing, improving, and preserving the supply of affordable housing on TI property. That incremental tax revenue may be used to finance the costs described in Section 53395.5, provided financed dwelling units may be located anywhere on TI property.   (B) (i) San Francisco shall require that affordable housing described in subparagraph (A) remain affordable housing for the useful life of the dwellings, which may not be less than 55 years for rental units and 45 years for owner-occupied units.   (ii) Notwithstanding clause (i), the authority may permit sales of owner-occupied units prior to the expiration of the 45-year period for a price in excess of the affordable housing price as determined pursuant to Section 50052.5 of the Health and Safety Code under a program adopted by the authority that protects the authority' s investment of funds in the unit, including, but not limited to, a program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess sales proceeds. The remainder of the excess sales proceeds shall be used solely for affordable housing.   (iii)     The City of San Francisco shall establish and record covenants or restrictions implementing these requirements.   subparagraph   (C) of paragraph (1).   (5)   (4)  The 20 percent set-aside requirements applicable to a special waterfront district set forth in  paragraphs (3) and (4), as applicable,   paragraph (3)  are in lieu of the set-aside requirement set forth in clause (ii) of subparagraph (C) of paragraph (3) of subdivision (g) of Section 53395.8.  (f)   (d)  (1) Before adopting the resolution authorizing the first debt issuance by a Port America's Cup district with a special waterfront district enhanced financing plan authorized by this section, the board of supervisors shall submit a fiscal analysis to the California Infrastructure and Economic Development Bank for review and approval. (2) The bank may circulate the fiscal analysis to other state agencies, including, but not limited to, the Department of Finance, the Department of Housing and Community Development, and the Office of Planning and Research, and solicit their comments and recommendations. After considering the comments and recommendations of other state agencies, if any, the bank shall take one of the following actions: (A) Approve the fiscal analysis if the bank makes the finding required pursuant to paragraph (4). (B) Return the fiscal analysis to the board of supervisors with specific recommendations for changes that would allow the bank to approve the fiscal analysis. (3) The bank shall have 90 days from the receipt of the fiscal analysis to act pursuant to this subdivision. If the bank does not act within 90 days, the fiscal analysis shall be deemed approved. (4) For bank approval, the fiscal analysis shall demonstrate to the bank's reasonable satisfaction a reasonable probability that the economic activity proposed to occur as a result of hosting the America's Cup event in California would result in an amount of revenue to the General Fund with a net present value that is greater than the net present value of the amount of property tax increment revenues that would be diverted from ERAF over the term of the Port America's Cup district, taking into consideration all pertinent data. In reviewing the board's fiscal analysis, the bank shall consider only those General Fund revenues that would occur because of economic activity proposed to occur as a result of hosting the America's Cup event in California. The bank shall not consider those General Fund revenues that would have occurred if the America's Cup event were not held in California. (5) The legislative body shall reimburse the bank for the reasonable cost of the review and approval of the fiscal analysis.  (g) (1) Before adopting the resolution authorizing the first debt issuance by a TI district authorized by this section with a special waterfront district enhanced financing plan, the legislative body of the TI district shall submit a fiscal analysis to the California Infrastructure and Economic Development Bank for review and approval.   (2) The bank may circulate the fiscal analysis to other state agencies, including, but not limited to, the Department of Finance, the Department of Housing and Community Development, and the Office of Planning and Research, and solicit their comments and recommendations. After considering the comments and recommendations of other state agencies, if any, the bank shall take one of the following actions:   (A) Approve the fiscal analysis if the bank makes the finding required pursuant to paragraph (4).   (B) Return the fiscal analysis to the legislative body of the TI district with specific recommendations for changes that would allow the bank to approve the fiscal analysis.   (3) The bank shall have 90 days from the receipt of the fiscal analysis to act pursuant to this subdivision. If the bank does not act within 90 days, the fiscal analysis shall be deemed approved.   (4) For bank approval, the fiscal analysis shall demonstrate to the bank's reasonable satisfaction a reasonable probability that the economic activity proposed to occur as a result of development of the TI property would result in an amount of revenue to the General Fund with a net present value that is greater than the net present value of the amount of property tax increment revenues that would be diverted from ERAF over the term of the TI district, taking into consideration all pertinent data. In reviewing the board's fiscal analysis, the bank shall consider only those General Fund revenues that would occur because of economic activity proposed to occur as a result of developing the TI property. The bank shall not consider those General Fund revenues that would have occurred if the TI property is not developed.   (5) The legislative body shall reimburse the bank for the reasonable cost of the review and approval of the fiscal analysis.   (h)   (e)  The county auditor or officer responsible for the payment of taxes into the funds of the respective taxing entities shall allocate and pay to a special waterfront district the portion of taxes required to be allocated pursuant to an approved special waterfront district enhanced financing plan. If the plan allocates 100 percent of the incremental tax revenue of San Francisco that is available under applicable law to be allocated to the special waterfront district, then the special waterfront district shall not make a payment to ERAF, but if the plan allocates less than 100 percent of the incremental tax revenue of San Francisco that is available under applicable law to be allocated to a special waterfront district then the special waterfront district shall pay a proportionate share of incremental tax revenue into ERAF. The special waterfront district shall file a statement of indebtedness and a reconciliation statement annually in the same manner as described in subdivision (i) of Section 53395.8. It is the intent of this subdivision that any special waterfront district shall be deemed to be a district formed pursuant to subparagraph (D) of paragraph (3) of subdivision (g) of Section 53395.8 for purposes of allocation and payment of taxes by the county auditor as set forth in subdivision (i) of Section 53395.8.  (i) With respect to a TI district, the reference in subparagraph (D) of paragraph (1) of subdivision (g) of Section 53395.8 to the executive director of the port shall be deemed to be a reference to the controller of the City and County of San Francisco, or an appropriate official designated by the controller.   (j)   (f)  This section implements and fulfills the intent of Article 2 (commencing with Section 53395.10) and of Article XIII B and is consistent with the conclusion of California courts that tax increment revenues are not "proceeds of taxes" for purposes of the latter. The allocation and payment to a special waterfront district of the special waterfront district ERAF share for the purpose of paying principal of, or interest on, loans, advances, or indebtedness incurred for facilities or the cost of acquisition and construction of facilities under this section shall not be deemed the receipt by the special waterfront district of proceeds of taxes levied by or on behalf of the special waterfront district within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall this portion of taxes be deemed the receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision enacted in implementation of Article XIII B. The allocation and payment to a special waterfront district of this portion of taxes shall not be deemed the appropriation by a special waterfront district of proceeds of taxes levied by or on behalf of a district within the meaning or for purposes of Article XIII B of the California Constitution.  (k) Notwithstanding any provision to the contrary in Chapter 898 of the Statutes of 1997, as amended, or Chapter 543 of the Statutes of 2004, as amended, in the event the port succeeds the authority as trustee of some or all of the public trust lands within the TI property, the port shall hold the lands subject to the public trust for commerce, navigation, and fisheries and the requirements applicable to the authority under Chapter 898 of the Statutes of 1997, as amended, and the lands shall not be subject to the Burton Act trust. The port shall deposit all revenues from those lands into the Treasure Island trust fund, which shall be maintained separately from the harbor fund.  (l)   (g)  For purposes of this section, the meanings set forth in subdivision (c) of Section 53395.8 shall apply as appropriate, and the following terms have the following meanings, except as otherwise provided:  (1) "Affordable housing" means housing, whether publicly or privately owned, available at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, or affordable rent, as defined in Section 50053 of the Health and Safety Code, to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, lower income households, as defined in Section 50079.5 of the Health and Safety Code, very low income households, as defined in Section 50105 of the Health and Safety Code, and extremely low income households, as defined in Section 50106 of the Health and Safety Code, that is occupied by those persons and families.   (2) "Authority" means the Treasure Island Development Authority or any other local agency, public agency, city commission, or city department that the board of supervisors, by resolution, designates as having jurisdiction over TI property or authority under this chapter to form one or more TI districts.   (3) "Burton Act" means Chapter 1333 of the Statutes of 1968, as amended.   (4) "Harbor fund" means the separate fund in the treasury of the City and County of San Francisco established and maintained in accordance with Section B6.406 of Appendix B of the charter of the City and County of San Francisco and Section 4 of the Burton Act.   (5) "Job Corps parcel" means that property lying within the City and County of San Francisco comprising that portion of the Tidelands and Submerged Lands in San Francisco Bay known as Treasure Island (Case 22164-G), commonly referred to as the Job Corps Center, Treasure Island, which was transferred to the United States Department of Labor by that certain document entitled "Transfer and Acceptance of Military Real Property," dated March 3, 1998.   (6)   (1)  "Port America's Cup district" means a special waterfront  district that is not a TI district.   district in the City and County of San Francisco designated as America's Cup venues, excluding any venues within the Rincon Point-South Beach Redevelopment Project Area.   (7)   (2)  "Special waterfront district" means a waterfront district in San Francisco that may comprise some or all of the America's Cup venues or potential venues  , including TI property  .  (8)   (3)  "Special waterfront district enhanced financing plan" means an infrastructure financing plan for a special waterfront district that contains a provision substantially similar to that authorized for a Pier 70 district under subparagraph (D) of paragraph (3) of subdivision (g) of Section 55395.8, with only those changes deemed necessary by the legislative body of the special waterfront district to implement the financing of the improvements described in paragraph (1) of subdivision  (e)   (c)  .  (9)   (4)  "Special waterfront district ERAF-secured debt" means debt incurred in accordance with a special waterfront district enhanced financing plan that is secured by and will be repaid from the special waterfront district ERAF share. For a Port America's Cup district, special waterfront district ERAF-secured debt includes the portion of any debt that is payable from the special waterfront district ERAF share as long as the same percentage of debt proceeds will be used for the purposes authorized by paragraph (2) of subdivision  (e). For a TI district, special waterfront district ERAF-secured debt may be combined with any other debt of the TI district.   (c).   (10)   (5)     (A)    "Special waterfront ERAF share" means the county ERAF portion of incremental tax revenue committed, as applicable, to a special waterfront district under a special waterfront district enhanced financing plan.  (11) "TI district" means a special waterfront district formed on land constituting all or a portion of the TI property.   (12) "TI property" means all those lands comprised of portions of the lands commonly known as Treasure Island and Yerba Buena Island lying within the City and County of San Francisco, State of California, described as follows, and the Job Corps Parcel if and to the extent it is transferred to the authority from the United States of America:   All those lands comprised of portions of the lands commonly known as Treasure Island and Yerba Buena Island lying within the City and County of San Francisco, State of California, described as follows: That portion of the lands described in that certain Presidential Reservation of Goat Island (now Yerba Buena Island), dated November 6, 1850, lying northwesterly of Parcel 57935-1 as described in that certain Quitclaim Deed, recorded October 26, 2000, as Document Number 2000G855531, in the office of the Recorder of the said City and County of San Francisco (hereinafter referred to as Doc. 2000G855531); together with all of the underlying fee to Parcel 57935-5 as described in said Quitclaim Deed (Doc. 2000G855531) and all of the underlying fee to Parcel 57935-6 as described in said Quitclaim Deed (Doc. 2000G855531), also together with that portion of the tide and submerged lands in San Francisco Bay, relinquished to the United States of America by that certain act of the Legislature of the State of California by Statutes of the State of California of 1897, Chapter 81 (hereinafter referred to as Stat. 1897, Ch. 81); also together with all of the Tidelands and Submerged Lands in San Francisco Bay known as Treasure Island as described in that certain Final Judgment of Condemnation, filed April 3, 1944, in the District Court of the United States in and for the Northern District of California, Southern Division, Case Number 22164-G (hereinafter referred to as Case 22164-G), also together with all of that portion of the lands described in that certain Presidential Reservation of Goat Island (now Yerba Buena Island), dated November 6, 1850, lying southeasterly of Parcel 57935-1 as described in that certain Quitclaim Deed, recorded October 26, 2000, as Document Number 2000G855531, in the office of the Recorder of the said City and County of San Francisco (hereinafter referred to as Doc. 2000G855531); excepting therefrom those lands shown as the Lands of the United States Coast Guard on that certain Record of Survey, entitled "Record of Survey #5923" recorded in Book DD of Maps at Pages 24-28 on April 28, 2010; also excepting therefrom, that portion of the said Tide and Submerged Lands in San Francisco Bay, relinquished to the United States of America (Stat. 1897, Ch. 81), within the "Army Reservation, Occupied by U.S. Light House Service under Permit from Secretary of War dated May 27, 1872" as shown and described upon that certain map entitled "Plat of Army and Navy reservations on Yerba Buena (Goat) Island, San Francisco Bay, California"; and further excepting therefrom, that portion of the Tide and Submerged Lands in San Francisco Bay, relinquished to the United States of America (Stat. 1897, Ch. 81) which were transferred to the United States Coast Guard by that certain document entitled "Transfer and Acceptance of Military Real Property," dated November 26, 2002. As portions of said land are shown on those certain Records of Survey filed for record: July 15, 2003, in Book M of maps at pages 85 through 95, inclusive, and as shown on the map entitled "Map and Metes and Bounds Description of United States Military and Naval Reservations, Yerba Buena (Goat) Island, California" including land ceded by the State of California by Act of Legislature of the State of California, approved March 9,1897, (Stat. Cal., 1897, p. 74) filed April 12, 1934, in Book N of Map at Page 14; and on April 28, 2010, in Book DD of Maps at Pages 24-28, entitled "Record of Survey #5923"; recorded in the Office of the Recorder of the City and County of San Francisco.   (13) "Treasure Island trust fund" means the special fund established and maintained in accordance with Section 10 of Chapter 898 of the Statutes of 1997.   (B) Notwithstanding any other provision of this chapter, the maximum amount of the county ERAF portion of incremental tax revenues committed to a special waterfront district under this section shall not exceed one million dollars ($1,000,000) in any fiscal year.  SEC. 4. Section 53397.71 is added to the Government Code, to read: 53397.71. Notwithstanding the provisions of this article, the legislative body of a waterfront district established pursuant to Section 53395.8 may, by resolution, authorize the issuance of bonds without holding an election of the voters residing in the waterfront district. The bonds of a waterfront district may be sold at a negotiated sale subject to the notice requirements of Section 53397.10.  SEC. 5.   Section 3 of Chapter 898 of the Statutes of 1997 is amended to read: Sec. 3. (a) The Legislature finds and declares all of the following: (b) It is the intent of the Legislature with the enactment of this act to provide a means for mitigating the serious economic effects of the closure of Naval Station Treasure Island on the City and County of San Francisco, its surrounding communities, and the State of California by granting the state's right, title, and interest in the former naval station to the entity with primary responsibility for the development and reuse of the property, and vesting in that entity the power to administer the public trust. (1) That property known as Naval Station Treasure Island, which includes Treasure Island and Yerba Buena Island, was selected for closure and disposition by the Base Realignment and Closure Commission in 1993, acting under Public Law 101-510 and its subsequent amendments, and is scheduled for operational closure on October 1, 1997. The conversion of Naval Station Treasure Island to productive civilian reuse presents unique development issues which would be best addressed by a public agency created specifically for that purpose. (2) All former and existing tide and submerged lands on the Naval Station, including all of Treasure Island and portions of Yerba Buena Island, will be subject to the public trust for navigation, commerce, and fisheries upon their release from federal ownership. In the absence of legislative action, this property would automatically be brought under the jurisdiction of the Port of San Francisco pursuant to, and subject to the terms and requirements of, the Burton Act (Chapter 1333 of the Statutes of 1968). (3) Certain buildings and other structures constructed on Treasure Island during the period of federal ownership were built for nontrust purposes and are not adaptable for trust-related uses. These buildings and structures are in various stages of their useful lives, some having been constructed only a few years prior to the scheduled closure. The conversion of the lands underlying these buildings and structures to trust uses in the future should proceed in a manner that will enable the people of this state to benefit from the substantial investments made in these structures without hindering the overall goal of preserving the public trust. (4) Treasure Island also contains hangars that were built for maritime aviation purposes. These structures may be utilized for trust uses in the future, but no trust related use has been identified for them in the near term. (5) Vesting the power to administer the trust in the designated local reuse authority will facilitate the conversion of Naval Station Treasure Island to productive civilian reuse and is in the best interests of the people of this state.   SEC. 6.   Section 5 of Chapter 898 of the Statutes of 1997, as amended by Section 218 of Chapter 140 of the Statutes of 2009, is amended to read: Sec. 5. (a) Notwithstanding any state or local law, the board of directors of the authority may include individuals who are officers or employees of the City and County of San Francisco or of the San Francisco Redevelopment Agency and those individuals are not precluded, solely by virtue of their status as officers or employees of the City and County of San Francisco or the San Francisco Redevelopment Agency, from participating in decisions as members of the board of directors. (b) Notwithstanding Section 1090 of the Government Code and Section C8.105 of Appendix C of the San Francisco Charter, officers and employees of the City and County of San Francisco or the San Francisco Redevelopment Agency are not precluded, solely by virtue of their services as members of the board of directors, from participating in any decisions in their capacities as officers or employees of the City and County of San Francisco or the San Francisco Redevelopment Agency. (c) Notwithstanding any other provision of law, the authority's employees are subject to the same civil service provisions as the employees of the City and County of San Francisco. (d) Amendments made to this section by the act adding this subdivision shall take effect only after the Board of Supervisors of the City and County of San Francisco adopts a resolution authorizing the first debt issuance for a TI district with a special waterfront district enhanced financing plan authorized by Section 53395.81 of the Government Code.   SEC. 7.   SEC. 5.  The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances of the City and County of San Francisco. The facts constituting the special circumstances are: Areas of San Francisco, including the portions of the San Francisco waterfront, are characterized by deteriorating conditions that cannot be remedied by private investment alone, and require the use of public financing mechanisms to finance the rectification of the deteriorating conditions. In order to adapt the provisions of law governing infrastructure financing districts to these unique circumstances, this special act is necessary.