BILL ANALYSIS
SENATE RULES COMMITTEE AB 3129
Office of Senate Floor Analyses
1020 N Street, Suite 524
(916) 445-6614 Fax: (916) 327-4478
.
THIRD READING
.
Bill No: AB 3129
Author: Lee (D)
Amended: 6/13/96 in Senate
Vote: 21
.
SENATE HOUSING & LAND USE COMMITTEE: 7-0, 6/17/96
AYES: Sher, Costa, Kopp, Marks, Mello, Monteith, Watson
ASSEMBLY FLOOR: 51-24, 5/28/96 - See last page for vote
.
SUBJECT: Redevelopment of the Alameda Naval Air Station
SOURCE: Alameda Reuse and Redevelopment Authority
.
DIGEST: This bill authorizes the adoption of a
redevelopment plan for the Alameda Naval Air Station and
the Fleet Industrial Supply Center in the City of Alameda.
ANALYSIS: As local officials struggle to convert former
military bases to civilian uses, some use their
redevelopment powers. When the standard Community
Redevelopment Law doesn't fit their needs, they seek
special legislation. In 1993, the Legislature attempted a
uniform response to these problems by passing a military
base redevelopment law, (SB 915, Johnston, 1993). No
community has ever fully used that statute, preferring
special bills tailored to local conditions. Legislators
have passed special bills for the redevelopment of seven
?1
CONTINUED
AB 3129
Page
2
military bases:
George AFB (AB 419, Eaves, 1989)
Norton AFB (AB 419, Eaves, 1989)
Castle AFB (AB 69, Cannella, 1993)
Mather AFB (SB 915, Johnson, 1993)
Fort Ord (SB 1600, Mello, 1994)
March AFB (AB 3769, Weggeland, 1994)
Mare Island (SB 1035, Thompson, 1994)
The Alameda Naval Air Station (NAS) and the Fleet
Industrial Supply Center will close in 1997. The City of
Alameda wants to use its redevelopment powers to convert
the former military facilities into a university, mixed-use
development, light industrial uses, wildlife habitat, and
housing. Because the existing laws don't fit their
situation, local officials want the Legislature to pass a
special bill to help them redevelop Alameda NAS and the
Fleet Industrial Supply Center.
This bill creates three special provisions for the
redevelopment of Alameda NAS and the Fleet Industrial
Supply Center:
I. Project Area. The Community Redevelopment Law requires
local officials to determine that property fits the
statutory definition of blight before it can go into a
redevelopment project area. A blighted area must be
predominantly urbanized with a combination of conditions
that are so prevalent and substantial that they cause a
serious physical and economic burden which can't be helped
without redevelopment. A blighted area must have at least
one of four physical conditions and at least one of five
economic conditions. The military base redevelopment law
allows local officials to define blight on a closed base by
using any combination of four physical conditions and five
economic conditions. The Legislature created special
definitions of blight to help redevelop Fort Ord, March
AFB, and Mare Island. Alameda officials want to use a
definition that fits their situation.
This bill allows Alameda officials to place the Alameda NAS
and the Fleet Industrial Supply Center in a redevelopment
project area without having to comply with the standard
?2
?
AB 3129
Page
3
statutory definition of blight. However, the property must
comply with the military base redevelopment law's
definition of blight. The bill prohibits the redevelopment
project area from including territory outside the two
former military facilities.
II. Pass-Through Payments. Redevelopment projects created
after January 1, 1994 under the Community Redevelopment Law
must share some of their property tax increment revenues
with other local governments, including school districts,
according to statutory formulas. These "pass-through
payments" start from the first year in which a project area
receives tax increment revenues (AB 1290, Isenberg, 1993).
The military base redevelopment law relies on the former
system of negotiated pass-through agreements.
This bill requires Alameda officials to use the
pass-through formulas in the standard redevelopment law.
The bill makes it clear that these payments start from the
first year in which the redevelopment agency receives
property tax increment revenues.
III. Inclusionary Housing. The Community Redevelopment
Law requires redevelopment officials to meet specific
quotas for affordable housing inside project areas. When a
redevelopment agency develops new or substantially
rehabilitated housing, at least 30% of the units must be
affordable. When someone other than a redevelopment agency
develops new or substantially rehabilitated housing in a
project area, at least 15% of the units must be affordable.
A local group, the Homeless Collaborative, may be able to
take over some of the former base housing for homeless
people before Alameda officials form their new project
area. Local officials want those dwelling units to count
towards their obligation to provide replacement housing.
This bill classifies housing that is made available to the
Homeless Collaborative and substantially rehabilitated as
dwelling units that will satisfy Alameda officials'
obligation to provide inclusionary housing. The bill
allows Alameda officials to count permanent or transitional
residential units, but not student dormitory rooms or beds
in overnight shelters.
?3
?
AB 3129
Page
4
IV. Transferring Territory. When Alameda redevelopment
officials created the "Business and Waterfront Improvement
Project," they included some of the property controlled by
the Fleet Industrial Supply Center. They want to shift
this property into the proposed redevelopment project.
This bill allows Alameda officials to transfer the Fleet
Industrial Supply Center property from the existing project
area into the proposed project area, provided that there
are no fiscal effects.
Comments:
The end of the Cold War forced the Pentagon to adjust its
military power to meet new geopolitical and budget
realities. Federal officials ordered 29 military bases in
California realigned or closed, including the Alameda NAS
and the Fleet Industrial Supply Center. Local officials
want to use their extraordinary redevelopment powers to
stimulate private investment at the former helicopter base,
returning the property to the tax rolls as soon as
possible. Alameda officials want legislators to customize
the redevelopment statute to fit their situation, so they
can convert defense spending into development investments.
This bill is one of a new generation of military base
redevelopment bills that will rely on the reforms in AB
2736 (Weggeland) -- currently in the Senate Rules
Committee. This bill will modify the requirements of the
military base redevelopment law, as revised by the
Weggeland bill. The revised military base redevelopment
law will modify the requirements of the Community
Redevelopment Law. For example, the Lee bill does not need
to create a new definition of "blight" for the Alameda NAS
because local officials can use the language in the
Weggeland bill. Because AB 2736 contains an urgency
clause, this bill will "nest" within its provisions.
Earlier this year, the Senate approved SB 1861 (Johnson)
35-0, for the redevelopment of the Tustin MCAS. That bill
will also nest within the Weggeland bill's revisions.
The Homeless Collaborative may acquire some of the former
military housing for transitional housing before Alameda
officials create their new project area. This bill counts
?4
?
AB 3129
Page
5
these housing units towards the inclusionary housing
standard, if they are substantially rehabilitated.
Standard redevelopment law does not permit the practice.
The practice may be acceptable because of the Homeless
Collaborative reputation, but this bill might set a
precedent for other military base redevelopment projects.
Can the Legislature distinguish between this project and
similar requests in the future?
FISCAL EFFECT: Appropriation: No Fiscal Com.: No
Local: No
SUPPORT: (Verified 6/18/96)
Alameda Reuse and Redevelopment Authority (source)
City of Alameda
ASSEMBLY FLOOR:
AYES: Aguiar, Alpert, Archie-Hudson, Baca, Bates, Bowen,
Brown, Burton, Bustamante, Campbell, Cannella, Conroy,
Cortese, Cunneen, Davis, Ducheny, Escutia, Figueroa,
Firestone, Friedman, Gallegos, Goldsmith, Hannigan,
Harvey, Hauser, Hawkins, Isenberg, Katz, Knight, Knox,
Kuehl, Kuykendall, Lee, Machado, Margett, Martinez,
Mazzoni, McPherson, Migden, Miller, Morrissey, K. Murray,
W. Murray, Rainey, Speier, Sweeney, Takasugi, Tucker,
Vasconcellos, Villaraigosa, Weggeland
NOES: Ackerman, Alby, Baldwin, Battin, Baugh, Boland,
Bordonaro, Bowler, Brewer, Brulte, Granlund, Hoge, House,
Kaloogian, Knowles, Morrow, Olberg, Poochigian, Richter,
Rogan, Setencich, Thompson, Woods, Pringle
NOT VOTING: Caldera, Frusetta, Napolitano
NC:sl 6/19/96 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
?5
?