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Port staff outlines AB 418 to reshape Pier 70 trust lands; bill in Senate appropriations suspense file
Summary
Port staff presented AB 418, a bill that would authorize the State Lands Commission to realign public-trust designations at Pier 70 and allow removal of trust restrictions on Seawall Lot 330, describing statutory tests, remediation requirements, and fiscal arrangements; the bill was reported in Senate appropriations and staff said they expect it to proceed to the full Senate.
Port staff told the Port Commission that Assembly Bill 418 would enable an internal public-trust exchange at Pier 70 and confirm that Seawall Lot 330 could be removed from public-trust restrictions, a step the port says is needed to advance its Pier 70 master plan.
Brad Benson, special projects manager for the Port, described the bill and the goals behind the exchange. He said the master plan aims to preserve the sites ship-repair function while allowing revenue-generating uses that would finance restoration of historic buildings and construction of waterfront parks. Bill White, outside counsel for the port, walked commissioners through title histories showing why different parcels at Pier 70 are treated under different legal rules and why a statutory exchange is necessary.
Under the draft bill and existing law, Benson said, lands removed from the trust must be found "useless" for trust purposes, and any lands added to the trust must have monetary value greater than or equal to the lands removed. He said remediation questions are a prerequisite: the port must secure a remedial-action plan approved by the Regional Water Quality Control Board before the exchange can be finalized. Both the city and the State Lands Commission would have to approve the exchange; the board of supervisors would also weigh in.
Benson described a negotiated provision that would allow the port to continue holding non-trust lands after a swap, provided separate accounting protects trust revenues and the overall financial equation produces a net benefit to the trust. He cited preliminary internal calculations projecting roughly $300 million in benefits to the trust under the Pier 70 master plan, and said state Lands staff had required cost-reimbursement arrangements for title and survey work.
The presentation also covered Seawall Lot 330, which Benson said the host agreement for the America's Cup identifies as a parcel where the city must "use best efforts" to remove trust restrictions to satisfy long-term development-rights obligations to the event authority. Benson said AB 418 would confirm that Seawall Lot 330 is "useless" to the trust and would permit sale or lease under an agreed appraisal method; any consideration could be provided as improvements to other port property.
Commissioners asked technical and legal questions about remediation timing, the mechanics of separate accounting, and the unusual provision letting the Port retain non-trust lands. Benson replied that an adopted remedial-action plan, not completed remediation, is the required milestone and that the port is in the later stages of site investigation. He also said state staff required explicit financial controls to ensure harbor-fund expenditures do not subsidize non-trust activities.
Benson reported that AB 418 had cleared the Assembly and was in the Senate Appropriations Committee, placed on the suspense file because of potential state fiscal impacts; staff said they expected the bill to be taken off the suspense file and proceed to the Senate floor and that no formal opposition had been registered at that point.
No commission action was required on the informational item; staff said they would return with a final proposal if the bill is enacted and signed by the governor.
