BILL ANALYSIS                                                                                                                                                                                                    






                                                       Bill No:  SB  
          2049
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                           Senator Don Perata, Chair
                           1999-2000 Regular Session
                                 Staff Analysis



          SB 2049  Author:  Perata
          As Amended:  April 24, 2000
          Hearing Date:  April 25, 2000
          Consultant:  Art Terzakis


                                     SUBJECT  
              Naval Air Station Alameda Public Trust Exchange Act

                                   DESCRIPTION
           
          SB 2049 is an "  urgency  " measure that enacts the Naval Air  
          Station (NAS) Alameda Public Trust Exchange Act and  
          authorizes the State Lands Commission (SLC) to carry out an  
          exchange of public trust lands within the NAS property, in  
          accordance with the requirements of the bill.   
          Specifically, this measure:  

          1.  Contains a legislative finding that the existing  
            configuration of trust and nontrust lands on the NAS  
            property is such that the purposes of the public trust  
            cannot be fully realized.

          2.  Authorizes the SLC to carry out an exchange of lands,  
            whereby certain public trust lands that are not now  
            useful for public trust purposes would be freed from  
            trust restrictions and certain other nontrust lands on  
            the NAS property, with substantial value for the public  
            trust, would be placed into the public trust.      

          3.  Stipulates that the precise boundaries of the lands to  
            be taken out of the trust and the lands to be put into  
            the trust pursuant to the exchange shall be determined by  
            the SLC.

          4.  Contains an additional finding that the value of the  




          SB 2049 (Perata) continued                               
          Page 2
          


            lands to be exchanged into the trust is equal to or  
            greater than the value of the lands to be exchanged out  
            of the trust.

          5.  Requires the SLC to ensure that lands are not exchanged  
            into the trust until any necessary hazardous materials  
            remediation for those lands has been completed.
          6.  Provides that the state reserves all subsurface mineral  
            deposits including oil and gas deposits.

          7.  Delegates to the Alameda Reuse and Redevelopment Agency  
            (ARRA) and to the City of Alameda, the responsibility of  
            administering the public trust lands within the NAS  
            property.

          8.  Extends to 66 years the term of the leases the City of  
            Alameda is authorized to lease trust property.

          9.  Requires the SLC to establish additional procedures, as  
            specified, for effectuating the exchange.

                               RELATED LEGISLATION
           
           SB 1476 (Peace) 1999-2000 Session.   Would add two parcels  
          of land in the City of Chula Vista that the State Lands  
          Commission received in a recent land exchange with the BF  
          Goodrich Company to the legislative grant of sovereign  
          lands managed by the San Diego Unified Port District.   
          (Pending in this committee)

           AB 2273 (Aroner) 1999-2000 Session.   Would authorize the  
          State Lands Commission to convey certain tidelands to the  
          City of Richmond for purposes of establishing the Richmond  
          Harbor Development Area.  Also, would authorize the City to  
          terminate the public trust over portions of granted  
          tidelands and extend to 55 years the term of the leases the  
          City is authorized to enter for wharves, docks, piers, etc.  
           (Pending on Assembly floor)  

                                   EXISTING LAW

           Current law requires the State Lands Commission (SLC) to  
          manage the state's tide and submerged lands.  The SLC is  
          required to carry out its responsibility consistent with  
          the public trust doctrine.  The doctrine provides that tide  
          and submerged lands are reserved for uses associated with  




          SB 2049 (Perata) continued                               
          Page 3
          


          commerce, fishing, navigation, recreation and the  
          environment.

          Existing law authorizes the SLC to exchange interests in  
          lands no longer needed for public trust purposes for lands  
          of equal value and to extinguish the public trust interest  
          in those lands.

          Existing law, Chapter 594 of the Statutes of 1917, granted  
          to the City of Alameda, the right, title and interest of  
          the State of California, in and to all the salt marsh, tide  
          and submerged lands within the boundaries of the City for  
          the establishment, improvement and conduct of a harbor and  
          other prescribed uses.  The City is authorized to lease  
          these lands or any portion of them for a term not to exceed  
          25 years.  

                                    BACKGROUND
           
           History:   In 1913, the state granted certain tide and  
          submerged lands to the City of Alameda in trust for  
          purposes of commerce, navigation, and fisheries.  In 1917,  
          the grant was amended to allow the city to convey some or  
          all of the granted lands to the United States for public  
          purposes.  

          Beginning in 1930, the city approved several transfers of  
          portions of the granted lands to the U.S. Navy for purposes  
          of constructing and operating what came to be known as the  
          Naval Air Station Alameda (NAS).  Certain portions of the  
          transferred tide and submerged lands were subsequently  
          filled and reclaimed by the Navy in furtherance of its plan  
          for development of a naval air station.  The Navy also  
          acquired lands for the NAS that were historically uplands  
          and thus not subject to the public trust.  In addition, a  
          portion of the NAS property was comprised of granted lands  
          that remained under city ownership and were leased to the  
          Navy. These lands continue to be subject to the public  
          trust.

          In 1993, the Defense Base Closure and Realignment  
          Commission recommended closure of the NAS under the federal  
          Defense Base Closure and Realignment Act of 1990.  The NAS  
          was subsequently closed in April 1997.  As authorized by  
          federal law, the Navy is in the process of transferring  
          certain portions of the NAS property under a no-cost  




          SB 2049 (Perata) continued                               
          Page 4
          


          Economic Development Conveyance to the Alameda Reuse and  
          Redevelopment Agency (ARRA), the local reuse authority for  
          the NAS.  Another portion of the NAS property is planned to  
          be transferred from the Navy to the U.S. Fish & Wildlife  
          Service.  

          All former and existing tide and submerged lands on the NAS  
          property for which the public trust has not been terminated  
          will be subject to the public trust upon their release from  
          federal ownership.  The portion of the NAS property owned  
          by the city and formerly leased to the Navy will remain  
          under city ownership subject to the public trust.  The  
          existing configuration of trust and nontrust lands on the  
          NAS property is such that the purposes of the public trust  
          cannot be fully realized.
           
          Purpose of SB 2049:   According to the author's office, this  
          Act is intended to facilitate the productive reuse of the  
          lands comprising the former Naval Air Station Alameda in a  
          manner which will further the purposes of the public  
          tidelands trust.  

          The author's office indicates that the need for this  
          measure arises from the existing configuration of public  
          trust lands on the site, which developed historically  
          without regard to the relation of those lands to the  
          waterfront or their usefulness to the trust.  The author's  
          office points out that most of the property's trust lands  
          are in its interior, while a substantial portion of the  
          property's waterfront is free of the trust.  The author's  
          office emphasizes that absent legislative action, lands of  
          high value to the public trust could be used and developed  
          in a manner that is inconsistent with the public trust,  
          while  certain interior lands with little or no value to  
          the trust would be subject to trust-related restrictions on  
          development, precluding their economic reuse. 

          The author's office states that this measure would remedy  
          the problem outlined above and authorize the State Lands  
          Commission to carry out the exchange of lands.  The  
          author's office contends that following the exchange, the  
          entire waterfront of the property would be protected by the  
          trust, as would a historic corridor through the site  
          linking the Oakland Estuary with the San Francisco Bay,  
          resulting in a net gain in value for the trust.  At the  
          same time, the exchange would free nonwaterfront lands with  




          SB 2049 (Perata) continued                               
          Page 5
          


          minimal or no trust value from trust restrictions on  
          development, allowing the reuse and development of the base  
          to go forward.   
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                                                                       
                 
           SUPPORT:   As of April 20, 2000:  

          City of Alameda (sponsor)
          Alameda Reuse and Redevelopment Authority

           OPPOSE:   None on file as of April 20, 2000.

           FISCAL COMMITTEE:   Senate Appropriations Committee

                                   **********