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Resolution 14672CITY OF ALAMEDA RESOLUTION NO. 14672 AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A FINAL NAVAL AIR STATION ALAMEDA EXCHANGE AGREEMENT BETWEEN THE CITY OF ALAMEDA AND THE STATE OF CALIFORNIA, ACTING BY AND THROUGH THE STATE LANDS COMMISSION, IN SUBSTANTIAL CONFORMANCE WITH THE PROPOSED NAVAL AIR STATION ALAMEDA EXCHANGE AGREEMENT WHEREAS, upon its admission to the Union on September 9, 1850, the State of California received in trust for purposes of commerce, navigation and fisheries (Public Trust), all right, title, and interest in tide and submerged lands (Tidelands) within its boundaries up to the ordinary high water mark; and WHEREAS, the Public Trust generally limits the allowable uses on Tidelands (whether filled or unfilled) to uses that further the purposes of the Trust, including maritime - related uses, water - oriented recreation, visitor - serving facilities, habitat preservation, and scientific study; and WHEREAS, the California Constitution forbids the sale of Public Trust lands into private ownership; and WHEREAS, in 1913, the State granted to the City of Alameda all of the State's sovereign right, title and interest in Tidelands within the boundaries of the City subject to the Public Trust and the terms and conditions specified in Chapter 348, Statutes of 1913 (as amended, the Granting Act); and WHEREAS, the Granting Act has been amended four times since enactment in 1913; and WHEREAS, in 1917, the Granting Act was amended to authorize the transfer of some or all of the granted Tidelands to the United States government. Beginning in 1930, the City transferred a portion of the granted Tidelands to the United States Navy (Navy) for purposes of constructing and operating what came to be known as the Naval Air Station Alameda (NAS Alameda). The Navy acquired certain other portions of the granted Tidelands, as well as certain adjacent privately -owned Tidelands, through condemnation. In furtherance of its plan for development of a naval air station, the Navy filled and reclaimed most of the Tidelands it acquired. The Navy also acquired lands for NAS Alameda that were historically uplands. In addition, a portion of the NAS Alameda property is comprised of granted Tidelands that have remained under City ownership and were formerly leased to the Navy; and WHEREAS, in 1993, the Defense Base Closure and Realignment Commission recommended closure of NAS Alameda under the Defense Base Closure and Realignment Act of 1990. NAS Alameda closed operationally in 1997 and a portion of the property that comprised the former NAS Alameda was declared surplus and made available for disposal; and WHEREAS, a majority of the lands at NAS Alameda to be received by the City of Alameda will be subject to the Public Trust; and WHEREAS, in recognition of the closure and proposed disposal of NAS Alameda, the California Legislature enacted Chapter 734 of the Statutes of 2000, the Naval Air Station Alameda Public Trust Exchange Act (as amended, the Exchange Act) to facilitate the productive reuse of the NAS Alameda property and to promote economic development and enhance water - related recreational opportunities in a manner that will further the purposes of the Public Trust. The Exchange Act approved and authorized the State Lands Commission (Commission) to carry out a public trust exchange resulting in a configuration of Public Trust lands substantially similar to that shown on the diagram of Section 11 of the Act, subject to the terms of the Act. The Exchange Act also amended the Granting Act to authorize transfers of granted lands within the NAS Alameda property to the Alameda Reuse and Redevelopment Authority (ARRA) and between the ARRA and the City, and to allow the ARRA or City to act as the public trust administrator for any granted lands held by the ARRA or City; and WHEREAS, the Exchange Act requires the Commission to establish appropriate procedures and conditions for an exchange, including procedures for completing the exchange in phases, and certain conditions relating to streets, other transportation facilities, and public access. The Exchange Act further requires that, before the Commission approves the exchange, it must make certain findings. The proposed NAS Alameda Exchange Agreement (Agreement) sets forth the procedures, terms and conditions governing the exchange and makes the required findings in accordance with the Exchange Act; and WHEREAS, the execution of the Agreement is a crucial step in facilitating the future development of the NAS Alameda property and because of the limitations on use and alienability of those portions of the NAS Alameda property that are subject to the Public Trust, the cohesive and orderly development of the NAS Alameda property cannot occur without implementing this public trust exchange; and WHEREAS, the Agreement authorizes an exchange of lands that will impress the Public Trust on certain lands within the NAS Alameda property (Trust Addition Lands) and will terminate the Public Trust from other lands within the NAS Alameda property (Trust Termination Lands) consistent with the Exchange Act. There are also lands that both parties will agree are currently free of the Public Trust (Agreed Non -Trust Lands) and currently subject to the Public Trust (Agreed Trust Lands). The current pre- exchange Public Trust configuration is ill - suited to the full realization of Public Trust purposes, and would preclude the cohesive development of the NAS Alameda property. As a result of the exchange, lands along the waterfront with high -value to the Public Trust will be impressed with the Public Trust and interior lands that have been cut off from access to the water will be removed from the Public Trust. The Trust Addition Lands will create valuable opportunities for public access and enjoyment of the waterfront and for attracting maritime commerce; and WHEREAS, the Agreement proposes that the exchange will occur in four phases based in part on the Navy's conveyance schedule; and WHEREAS, prior to approving the Agreement, the Commission is required by the Exchange Act to make certain findings, as required by the Exchange Act. These findings generally include: (1) the configuration of public trust lands upon completion of the exchange will not differ significantly from the configuration shown on the diagram in Section 11 of the Exchange Act; (2) the value of the lands to be exchanged into the Public Trust is equal to or greater than the value of the lands to be exchanged out of the Public Trust, as the exchange is finally configured and phased in this Agreement; (3) as the exchange is finally configured and phased, the lands to be taken out of the trust have been filled and reclaimed, are cut off from access to navigable waters, are no longer needed or required for the promotion of the public trust; (4) the exchange will eliminate Public Trust title uncertainties affecting lands with critical value to the Public Trust; (5) the Agreement contains conditions to ensure that streets and other transportation facilities located on public trust lands are designed to be compatible with the Public Trust; (6) the Agreement contains conditions to ensure that the central north -south corridor proposed to remain within the Public Trust that connects the Oakland Estuary with the Seaplane Lagoon will function as a public access corridor; and (7) the Agreement contains conditions to ensure that lands will not be exchanged into the trust until all necessary hazardous materials remediation for those lands has been completed; and WHEREAS, the factual and legal issues relating to the character of the lands within the NAS Alameda property and the boundary of lands subject to the Public Trust is complex, and the true state of title is uncertain. As a result, the Agreement also settles and establishes certain boundary lines within the NAS Alameda property relating to the current Agreed Non -Trust Lands and Agreed Trust Lands; and WHEREAS, the United States separately authorized a Public Benefit Conveyance (PBC) to the City of an approximately 44 -acre portion of the NAS Alameda property (PBC Parcel). The PBC Parcel was transferred from the Navy to the United States Department of the Interior (DOI) in 2009 and is expected to be conveyed to the City in the near future. The PBC Parcel comprises a portion of the Agreed Trust Lands. The deed from the United States to the City for the PBC Parcel contains restrictive covenants (Federal Covenants) which require that the PBC Parcel and the revenue derived therefrom be used in perpetuity for certain park and recreational purposes. Consistent with the City's PBC application approved by DOI, the PBC Parcel is currently planned by the City for a Sports Complex. Under the Agreement, the City would be permitted to use the PBC Parcel and revenues derived therefrom for non -Trust uses associated with the a Sports Complex (if any), to the extent necessary to comply with the City's obligations under the Federal Covenants. The City would be required to use good faith efforts to consult with Commission staff in the City's design of recreational facilities on the PBC Parcel for the purpose of maximizing the consistency of those facilities with the Public Trust, subject to the City's obligations under the Federal Covenants; and WHEREAS, the City Council exercises its independent judgment and concludes that no further environmental review is required for the Exchange Agreement because: (1) The proposed exchange agreement is a settlement of title and boundary problems with the State Lands Commission and an exchange in connection with such settlement, it is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.11; and (2) The Agreement is consistent with the land use pattern called for in the 1996 NAS Alameda Community Reuse Plan (as amended in 1997) (Reuse Plan), and implements a mitigation measure adopted by the City in connection with the environmental review of the Reuse Plan. The Public Trust issues associated with the Reuse Plan were fully discussed and analyzed in the Final EIR for the Reuse of Naval Air Station Alameda and the Fleet and Industrial Supply Center, Alameda Annex and Facility (State Clearinghouse No. 96022105) (Reuse Plan EIR), which was certified in 2000. The Reuse Plan EIR found that the impact arising from inconsistencies between the Reuse Plan and the Public Trust was significant, but would be mitigated to a less- than - significant level through a Public Trust exchange. (Reuse Plan EIR, pp. 3 -12 to 3 -17, 4 -6 to 4 -7.). The Exchange Act, enacted later that year, authorized a trust exchange consistent with the land use pattern in the Reuse Plan, as called for in the Reuse Plan EIR. The Alameda Point General Plan Amendment EIR (State Clearinghouse No. 2001012057) (GPA EIR), which was certified in 2003, reexamined this issue, disclosed that the Exchange Act was enacted in 2000, which is consistent with the analysis in the Reuse Plan EIR, and that no significant impacts related to land use would occur from implementation of the GPA. (GPA EIR, pp. 55 -57, 72.) Approval of the Agreement would not require major revisions to the Reuse Plan EIR or GPA EIR due to new or substantially increased significant environmental effects. There have been no changes to the proposed trust exchange or the Reuse Plan, and there have been no substantial changes with respect to the circumstances under which the exchange or the Reuse Plan would be undertaken, that would require major revisions to the EIRs due to new or substantially increased significant environmental effects, and no new information of substantial importance has been discovered that would trigger or require major revisions to the EIRs due to new or substantially increased significant environmental effects. Therefore, no subsequent or supplemental environmental impact report is required before approval of the Agreement. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Alameda that the City Manager is hereby authorized and directed to negotiate and execute a final Naval Air Station Alameda Exchange Agreement between the City of Alameda and the State of California, Acting by and through the State Lands Commission, in substantial conformance with the proposed Naval Air Station Alameda Exchange Agreement. I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Council of the City of Alameda in a special meeting assembled on the 8th day of May, 2012, by the following vote to wit: AYES: Councilmembers Bonta, deHaan, Tam and Mayor Gilmore — 4. NOES: None. ABSENT: Johnson — 1. ABSTENTIONS: None. IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 9th day of May, 2012. Lara Weisiger, City Cler City of Alameda