BILL ANALYSIS
SENATE HOUSING & LAND USE COMMITTEE Amended: 6/13/96
Senator Byron D. Sher, Chairman Set: First
Hearing: 6/17/96
Fiscal: No
Consultant:
Detwiler
AB 3129 - Lee
REDEVELOPMENT OF THE ALAMEDA N.A.S.
Background and Existing Law:
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 military bases:
George AFB (AB 419, Eaves, 1989)Mather AFB (SB 915,
Johnson, 1993)
Norton AFB (AB 419, Eaves, 1989)Fort Ord (SB 1600,
Mello, 1994)
Castle AFB (AB 69, Cannella, 1993)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.
Proposed Law:
Assembly Bill 3129 creates three special provisions for the
AB 3129 - 6/13/96 Page 2
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.
Assembly Bill 3129 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 statutory definition of blight. However, the
property must comply with the military base redevelopment
law's definition of blight. AB 3129 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.
Assembly Bill 3129 requires Alameda officials to use the
pass-through formulas in the standard redevelopment law.
AB 3129 makes it clear that these payments start from the
first year in which the redevelopment agency receives
property tax increment revenues.
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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.
Assembly Bill 3129 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. AB
3129 allows Alameda officials to count permanent or
transitional residential units, but not student dormitory
rooms or beds in overnight shelters.
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.
Assembly Bill 3129 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.
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Comments:
1. Swords into plowshares. 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.
2. Nesting behavior. AB 3129 is one of a new generation
of military base redevelopment bills that will rely on the
reforms in AB 2736 (Weggeland) which the Committee will
also hear on June 17. AB 3129 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, AB 3129 will "nest" within its provisions. Earlier
this year, the Committee approved SB 1861 (Johnson) for the
redevelopment of the Tustin MCAS. That bill will also nest
within the Weggeland bill's revisions.
3. Before the fact. The Homeless Collaborative may
acquire some of the former military housing for
transitional housing before Alameda officials create their
new project area. AB 3129 counts 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 the Committee may wish to consider if the
bill sets a precedent for other military base redevelopment
projects. Can the Legislature distinguish between this
project and similar requests in the future?
Assembly Actions:
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Housing and Community Development Committee: 51-24
Floor: 7-1
Support and Opposition: (6/12/96)
Support: City of Alameda, Alameda Reuse and Redevelopment
Authority.
Opposition: Unknown.