i• ' · the area in question. is a 146-acre site which anza pacific corpor.ation has been...
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.g~·~ .. BO~~ A~~- ANP.:. ~· ·EX:~~liL wrm 1\-NZA ·PAOIFJ;C: co~~,. ~~AMERICA TIT.LE. INSURA'NCE•COMPANY · :AND OTHER .AFFECTED PARTIES; AUTHORIZATION· 'FOR. ~~: ... 6~~~; .~sE~P~S T9 AJiSZA.'p4ci:F~d1 c<>im•:;. SA~ ~TEo. c~: ~ W 8747:; P:ijC~; 4680 .• 9:, 4681:9,. ·4662 .• 9·,. 46f;33!1; 4684.l,. :4685~.l, 4686!1, 4687'.'•l; 4688.i, 46e9~:i.., 4690.1,. AND. 4691.1; :BLA 131. .
.After· c.on~i~e~'t;i9~ of Cslen~r· Item· ·24· e:t't$ch~d, ·a.nd u:pon motion· duly made and ca.tried,, the follQV!ng +es~~utiQn was ad0ptec:t:.
THE COMMISSION:
1. FINDS THAT 'l'.tiE' EXCHANGE OF LAlIDS .A?ID ·RIGHTS fm!' FORm T.N THE· AGREEMEN11' ·RF)FERRED· .To· IN P~GRAPH ? :B~W .IS IN ml; :S~ST INT¥RE,STS OF ·THE S~TE FOR THE IMP.ROVEF~ or· ~NAVIGATION AND TO ENHANCE' THE CONJtIGURATION' OF THE SHORE LINE OF:SAN FRANCISCO :sAY·FOR THE :tMi?Rom.mm OF THE 'WATERS THEREOF AND TijE ADJA~ UPIANDS, AND THAT IT' WILL 'NOT ·SUBSTANTIALLY JMERFERE WITH·THE RIGHTS OF NAVIGATION AND FISHmGIN THE WATERS llWOLvED AND IN FACT WILL ·ENHANCE 'AID>.·ENLARGE RmLIC RIGHTS AND UTILI-zATION, OF SAJJ) .WATERWAYS. , . .
2. AUTHORIZES THE EXECUTION. OF THE BOUNDARY AND Ex:CRANGE AGREEMENT B:m'WEEN THE' CO~SSION; ANzA PACIFIC coiw. , TRANSAMERICA TIT,LE INSURANCE COMPANY' AND TI!OSE OTHER PARTIES. WHICH EXECUTE 81\]J) AGREEMENT, SAID AGREEM"Ef.T :BEING ON· ·FILE. IN. THE OFFICE OF THE· STATE LANDS COMMI~SION AND· B'! REFER ... ENCE MADE A PART· HEREOF.. ,
3. AUTHORIZES THE EXECUTit:>N OF A S'M.TE PATENT. WITHOUT THE RESERVATION OF MINERAL INTERESTS TO ANZA PACIFIC CORP. AND OTHEH PRIVATE PARTIES Wliinm· SAID AGREEMENT AREA AS THEIR INTERESTS MAY APPEAR OF RECORD m THE OFFICE OF THE COUNTY RECORDER 10F SAN MATE>O cou.NTI TO THE PARCELS OF REAL PROPERTY DESCRIBED. m SAID AllRRm.NT REFERRED TO m PARAGRAPH 2 ABOVE,. PURSUANT TO· .'fflE TERMS OF SAID AGREEMENT~
4.. AUTHORIZES ·THE ACCEPr.ANCE 'AND 'F.ECORDATION OF ·coiMJIANCES TO THE STATE \PROVI!)~ ·~ SAID :BOUNll/mY 1AGRE©ME~:rr AND wm EXCHANGE~ .
5. FINDS THAT UPON ·'llfE DELivERl'f Oi.1 THE PATENT TO. 'ffiE PARTIES REFERRED TO· ~ PARAGt1JU>It .3 $VE,,~ SJ!JIE REC01'DA~ION ~QF ~-. ~E OFFIC~' OF_ THE COUNTI RECORD;t!!R OF ,S~ l.fAT~ . C\)'tllilJT! ,. THAT TH,E ~-.PRO~~ :J?ESqRIBllfD m: -~ .'.PPtT~' ~QEPT~c;t. WHEREYRO~' TH;E; PO~TIONS .QFt SA:q> ~ P!tQP~TY vmICH· HA~'.:SEEN1 pEDICA~m.>.·FO'.ij 8-~~s, PARIC; _ACQFJ3S', OR ,~ER PQBLIC POR..'PQSE·,. ·OR w.!IC',H: Jl..RE: Ctf.R..'flENTLY LEASED, TO .. ~:m. GITY OF BURLJJ{~:
A. .liAS: ;a~ nwno~, F:-:t·Lt$1>, -~ -~ECLA~· ·~Y.·ajn .. REC~~ION . D.;L~~IQT NO. -209r;. AND·~ PRIVA~:E; [email protected];$· ·~ ~ IN MID PATEWr:·· . . ,
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·6. ·F'IN:i'>s. ·THAT· Ti!:E· ISSUANCE OF TWELVE ,.66-YEA'a· LEASE~:PERM:ITS· ·Tb: ANZA· .PACIFIC ,co!lP. J?Ott THE ·p.A.Rcms ·:01: PROPERTI ·DESCREEO: 'nf .sAID· AG~ 'iraFERREJ} ro. m PARAGRAPll '2' !s' ml, m' :BE&r: :~s· oF.· ·m; STATE J:N.' THAT: IT' .. :PRov±nm· :Fon· tJ:HE,..Gt!~ REi?.~~ :oi? :Bo:Nnm· ·nm!Bmm:ss ot1Ts~
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-~Cl'.~~"qST '.QJIDMj ·Q~~.GATIONS:;;, ~: .l?~~· :.o"!!:. ~: .. "~9~~ FO:l\ 'l'RU$~ ~p~s,, ANJ) FOI(~: CONTI,NlJ~TION·,-9F 1f(JBµ:C 'U~~s ·o~ .~~ ·OF :~· PARCELS TO :BE Al'"""FECTED· 'BY ·SAID .LEASE-PERMITS; AND AUTHORIZES. 'ME ISSU• ~dl~t o~· ·SA!D. -'66-t.illiUt LEASE~~·~ERMITs~ ' . ' ' ' . ,
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7. AUTHORIZES THE .&'mCUTIVE· OFFICER OF' =Im: STATE. LANDS· .COMMISSION AND THE o:FFl:dE·OF·'ll!E«ATTofilm'dENERA.L.TC>.TAKE.AtL Ft:JRT.Hm sms:NECEssARY. To ~ 'll,lE· ABOVE TRANSA~I9?i INCWDINt}, .~··NOT t!MITED T6, ·mEb~ ANCES nr ANY LEGAL· PROCEEDINGS BROUGHT CONCERNmG THE Al30VE TRANSACTION.
Attachment: calendar Item 24 ( 5 pages)
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Recognizing that the fi,ture of San Franciscq Bay is a matter of" nation~, Sta~e azJ.d local concarn, th~ Commission in Augus't 1968· ·authorized /c'p.~ State LandS Division and ~he· Attorney ·GenerEU's office jointly to· begin1n ~tudy regarding the extent an.d. natµre of State ownership in .San Francisco Bay•. This joint r;;tudy revealed the title and boundary problems which are ·the .subj~ct matte::r of t~e· proposed· .transaction.
Since 1969~ the State Lands Division and Office of the Attorney General 'have been conducting negotiations with Anza P~cific Corporation and Transamerica Title Insurance Company concerning the extent and nature of State ownership within the Anza Airport Park·subdivisions located in the City of Burlingame. near San Francisco airport•
The area in question. is a 146-acre site which Anza Pacific Corpor.ation has been endeavoring to develop as commercial, hotel, restaurant, and light in-dt:.strial tracts.
In the course of this development program, Anza Pacific successfully petitioned the Burlingame City Cou..~ciL for the· formation of Reclamation District No. 2097 in 1962. Thi~ District encompasses all of the 146 acres claimed by
Anza.
A discussion of indebtedness within the area is essential to a full understanding Qf the transaction. The Reclamation District hac issued· bonds in the amount of $1,964,ooo. The total bond service charge is now $2,598,968. These bonds are scheduled for complete retirement in i983.. Two ~dd.itional series of bonds have b~en authorized and substantia11y issue.d. The first is $1,207,627 of 1915 Improvement Act b9nd9 atjthorized ($947,647 ~ctualJ.y issued, $885,009 unpaid) against appr·oximately 94 .of the 146 acres. An additional $91+;500 is qutstanding in 1911 Improvem:ent Act bonds againsJc the remaining a·c;reage. These bonds' will be completely repaid ·by 1988.
In additi~n to the ponded indebtedness, there, l~e trust deed liens against the. prop~rty in the amount of $2,910,000 •.
During the negotiations leading to this proposaJ., ;;ill parties ~greed that t~ the exten:b possible further · q.evelopment viquld be halted. Any ci.evelop·ment act\iia,l,ly requip~d w.E!.s to .b'e rilt:1,de without. 'prejup.ice to the :ci~~ms of any party ~n9luding the State·'· thus preserv~µg :t~d? .Stat~· interes:l!s. dU~~ng the ne~o·t~ation. period. •.
P.n~~ ~ _4edi9ated- ~ 25 ... foot w;q~ .strip around tQ? perime·ter of' 1the· .lcmds ,wp.~c~ ·it }las fl:~~~e4 for ,public u~e~ ·SU.,bst,an~ial po~~J;qn$: o:f' ~he~\e ,strip~ are· ·used' 'O~ a ci&.ily ·b~is fo>; ,pu't>~;c ·i:L¢P.i~e;·r -~z-~ ~cl ,t;h~~ CqW'ttY qf· San 1M~t~<;> ;h~w:e· .~sci 1¢st,~1>Jl:i:~h~·d, :~ ~n_t~l. p~M: ·p~, th~ :s9utlte~terly ·c.Q~~~ 0$ ·the, t¢e~t.,. , · · - · , ·,
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AnZa Pac~·~·i;¢ .asderts. tb~t· i·t ·has -~~e E?~l!lp~e ab~o,~ute t~~+·~· :tQ· ·th~ -i;;u'bj~e"c tH"~a. ~¢ .$u.cce~so~ in 'interes~. ~9 $uch· r~ghts ·as' w~re 9Ql~.;~~ed' ,by :a: S,t~t¢ Tide ·~d· ~a:t;en.:~. ~he pate:nt ~hey ~ely qn "f~· issue4 ·as. a ... ~Gij;J.t o~".~$ap:. Mateo Cotµity 'J]ide, ]Jarid· Sur-c¥~y No~· ·9. :whi:¢P. was· ma,d.e on M?,r.cQ. 40,, .iooq· •.
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The 10rig~rial. derti·~~¢ate· of ~urche_se \<1as ii?Sl).ed by .the state Surveyor Gf?~eril later in that same ye~.. Th~ :t>aterit was issued on dctob~r '24·, 1875. The ·area claimed py An~a ii;>.reQtlµlgl.llar i~ shape·-and is· J.;ocateci along. the land\1ard. pQrt:i:on of ·the· a.rea· inci~dect wfthin the perimeter d¢pq_:ription· qf' the survey notes and· patent ahd is ad·jacer.i.t to the boun~ dary of ~cho· $8.µ. Mateo.. Anza·' s ·alleged· area 0f: o\lineFship cohsti tutes approximat~lyr 26· p~rqeir\; of the lan® l:-ocat~d withi:Q. the :perimet~r .descrip• tion of the survey and patent.
In· addition to its ·claim or· absolute title, Anza and Trajlso.i11erica Title Insilrance Company have contended that the State is estopped to deny Anza•.s title as of 1969 and further; that any exe~cise of 'the State's easement for purposes of commerce, navigation and fisheries would ·first require the State to reimburse Anza for all improvements placed on the
subject area.
The State has contended that certain po~tioris of the area cl.aimed ·by Anza Pa9ific may, in: fact, be submerged lands,. aS opposed to tidelands, and that no statutory authority existed for the State $urveyor General to convey puch lands. Consequently, the State has questioned the existence of title· in Anza Pacific to portions of the lands which Anza claimsc Additionally, ·the· State conte::ids that it has an easement for purposes of commerce, navig~tion and fisheries ov~r any tidelands .claimed by Anza
Pacific.
As a result of extended negotiations, the proposed agreement for the compromise and settlement of all outstanding title and·boundary problems
has been reached.
The agreement (a copy of which is on file in the Office of the .State Lands Commission and incorporated herein by referenue) provides, in general terms·,
as follows: ·
1. In compropi~se and settlement of the title arid boundary dispute, Anza .Pacific will convey all of its right, title am;I: interest to the State in approximately 46 acres located' within t~e 146-acre tract in consideration for the State recognizing Anzat.s title to the remaining tract acreage and in exchange for the State terminating· the easement .of qqmmerce, navigation cµid fisheries over the lands co??-firined or recognized in Anza • s :o~etship· .which are not subject to any dedicatio~ for stre·et or other public purposes •
. 2. Anza wi-11 obtain· the cancellation eu.1d termination of .ail author.fzeP. but unsold 19l5 :Improvem~ftt Act bonds.- .The: ·flfdgunt of s~ch ~~$Eft~ed· ~onas is ·appr.c~imc.tely $2.80 ,ooo·.. As to· the pem~ining -~9i5 Improveme~t 'bqP,ds· .·a~$es9e4 ag~nst par·9~it3' ·a~rs~~ '.to· be: in
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$ta~e, ~>'Wn~r$hl,.p, ~z~ Wi1i: hav.~ the ·lJoil.dS re~sess¢d ~g.aifil?t the l;e™3~hol~ l.nteres"t;s t;p be $ssued by· ~he· StatP.· :i;o An.Za.
3. ~e- Stt;l,te .. witi grant 66-year le~~e-permits· to Anza Pacific of Parcel i and.Parc~ls :6~13; ·;nciusiveiy, with the obl~gation of Anza to pay ali bond payment~, assessmeµts .and taxes ievie~ agains'~- t~~~e pa.rcell? 8-9 w~l:L a.S trust ,~e~d.indebtedness and payi_ng ·the Stat.e the annual. rentcµ speQified. Th~ aggregate annual rental to be r~ceive~ from these·1arcels is $18,376 d:ui;-ing the. initiU period whic}l. is to 1988. In 1988,, the lease'rentals wil;:J.. be adju~ted with a: subsequent adjustment to be made on the 35th anniv~rsary of said le~bs. These lease-permits specifically provide that the parcels;may be used· only forpi!rposes of commerce, navigation and fisheries. 'J;here. i~ a further requireme+it that Anza Pacific ·construct and maintain a 12-acre lagoQn within Parcels 9, 10 and 11 t~ in-crease the ·open space witl;lin the subject a;-ea. (A similar lease-permit between tte dtate and Anza: will be continued for Parcel 5 for .a different term and consideration than mentioned above but for the same purposes. This lease of Parcel 5 was approved by the Commission on March 1, 1971, as a part of an interim agreement.)
4·. The State will grant 66-year lease-permits to Anza Pacific of Parcels 2, 3 and 4 which are currently ·used for public purposes such as ·a park, roads and channel. The consideration for these lease~permits shall be Anza's payment of all taxes, bonds, assessments, trust de~J_obligat1ons and any other charges against said parcels. There is a provision that should· any of these three parcels be used for any other purpose the State may set a reasonable rental rate.
5. Trans~erica Title Insurance Company agrees to guarantee and underWI'ite the repayment of all Reclamation District bonds assessed against the parcels to be quieted in the ·State as weii·as undertaking the same obligatiQ~ with regard to certain indebtedness outstanding against the State's parcels.
6. Transamerica will also issue to the State title insurance policies guaranteeing the State's title in the parcels to be .quieted in State ownership.
7. The St~te will ·h~ve ~l mineral interest~ in the parcels 0£ lands to be quie:te<i in it, confirmed a:nd quitciaime,cl·to it, therefore, no rt:?servation of m~),1~raJ; rights is required in th~ :p.atent to be issued by the .Sta:te .•
Bas(7d upon .e.n Em:SJ.ysis o+ th~ .comple}{. :factual situation, the Diitisio1;1 has concluded that the S~ate wiil reoeiv~ equal or greater value- by vii»tue of ""h . , , • d' ' .&.J;"J t , + 11!_~· ·v9mprqnp;_S? '§="l _; se1.11.1~emen . agream~;p,1.r•
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~:LP· ,m~t~~r' ,h~:, :b.een. ·re.v:.iewed. aµ~ :approved· -by ·th~ Of;f~qe o~ the A~to~ney ·G'enepai. , · · . · · · ·
This· entire tr?-nsactio:q 'is. exempt from the provis~ons of :Section.637J.·ot" the Bubiic· Resources 'God~ r.elating to ,environment~i:.il reportf?.o.
EXHIBITS·: A. Location Map. ·' B. Dcation Map.
IT IS RECOMME!~:OED TH/lT THE COMMISSION:
1. FIND THAT THE EXCHANGE OF LANDS AND RIGHTS SET FORTH IN THE AGREEMENT REFYJRRED ·TC>· IN PARAGRAPH 2 BELOW, .IS IN. THE BFST INTERESTS OF THE· ·STATE FOR THE:IMPROv'EMENT .OF NAVIGATION AND TO ENHANCE THE CONFIGURATION OF THE SHORE LINE OF SAN, FRANCISCO BAY FOR THE IMPRO\TEMENT OF TllE WATERS THEREOF AND· THE P.DJAC~T UPJ;:ANDS, AND THAT IT WILL NOT SUBSTANTIALLY INTERFERE WITH THE RIGHTS OF NAVIGATION· AND FISHING IN THE WATERS INVOLVED AND IN FACT .WILL.ENHANCE AND ENLARGE PlIBj,IC RIGHTS AND UTILIZATION OF SAID WATERWAYS.
2. AUTHORIZE THE EXECUTION OF THE BOUNDARY AND EXCH.ANGE AGREEMENT BETWEEN THE COMMISSION, ANZA·PACIFYC CORP., TRANSAMERICA TITLE INSURANCE COMPANY, AND THOSE OTHER PARTIES· WHICH EXECUTE SAID AGREEMf)NT, .q~ID AGREEMENT BEING ON FILE IN THE OFFICE OF THE STATE LANDS COMMISSION AND BY REFERENCE MADE A PART HEREDF.
3. AUTHORIZE THE EXECUTION OF A STATE PATENT WITHOUT THE RESERVATION OF MINERAL INTERFSTS To ANZA PACIFIC CORP. , AND OTHER PRIVATE PARTIES ·WITHIN SAID AGREEMENT AREA AS THEIR INTERESTS MAY APPEAR OF RECORD IN THE OFFICE' OF THE COUNTY RECORDER. OF SAN MATEO COUNTY TO: THE PARCH'..L~ OF REAL PROPERTi DESCRIBED IN SAID AGREEMENT REFERRED TO IN l?A.:RAGRAPH > ABOVE, PURSUANT TO THE TERMS OF' SAID AGREEMENT.
4. AUTHORIZE THE ACCEPTANCE AND REC\.)RDATION OF CONVEYANCES TO Tml STATE PROVIDED IN SAID BOUNDARY AGREEMENT AND 11\ND EXCHANGE.
5. FIND THAT UPON THE DELIVERY OF THE PATENT TO THE PARTIES REFERRED ID IN PARAGRAPH 3 ABOVE, AN-Ii THE RECORDATION THEREOF i~ ~ OFFICE OF THE C9UNTY P~ORDER QJi' '$AN MATEO COUNTY, THAT THE REAL PROPERTY DESCRlBED IN SAID PA'l·ENT, EXCEPTING THERE:FROM THE PORTIONS OF SAID REAL PROPERTY WHICH: HAVE BEEN DEDICATED FOR STREET$, PARK, ACCESS OR OTHER PUBLIC PURPOSE OR WHICH ARE CURRENTJ.iY LEASED TO THE CITY OF.BURLINGAME:
A. HAS. BEEN IMPROVED, FILLED, AND RECLAIMED ~y SAID RECLAMATION DISTRICT NO. 2097, AND THE PRIVATE PARTIES REFERRED TO IN SAID PA.TENT;
B. 'HAS 'THEREBY BEEN SEVEP.ED FROM THE PUBLIC CILA.NNEL.S AND WATERWAYS .. AND IS NO LONGER AVAILABLE..CDR. USEFUL OR SUSCEPTIBLE. OF BEING- USED FOR CO~MERCE, .·NAVIGATION AND FISHING, /.!ND IS NO LONGER IN FACT TIDELA.i.1DS OR SUBMERGED LANDS AND THEREFORE SHALL .BE FREED FROM SUGH ,J?.tJBL:l:Q TRUS~ .•.
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6. FlNJ?·'~T TflE :tssuANcE _ <?:F- :66~-y:m~ ~As,:m-PERMfTs. ro ANM .-:P~q;i;r:tq 90~-·, WITH:~ .P~CEI.S OF ~RqP~TY_'l?ES.C~:q3~P IN· $A+J> _.AG~~~ -~mIBD::110 IN -PARAGRAPH 2 ARE 'lN THE.-BEST INTERESTS OF THE STATE IN' THAT· IT PROVIDE$ FOR THE GU~TEED REPAYJvlENT OF BONDED IlJDEBTEDNESS ,. O'OTSTANDtl~G TRUST·DEED-OB~IGATION$, AN:O DljNELC>PMENT OF THE-PROPERTY FOR TRUST ptJR ... POSES, AND FoR ~ CONTINUA 'fION OF PUBLIC USES OF CERTAIN OF $·AID :PARCELS TO BE· AFFECTED l3Y SAID LEASE.;.PERMITS -~D AUTHORIZE THE !PS.V~· .ANCE OF SAID 66-YEAR LEASE~PERMITS.
7. AUTHORIZE THE EXECUTIVE OFFICER OF THE STATE .LANDS COMMISSION· AND OFFicE OF THE ATTORNEY GENERAL TO TAKE ALL FURTHER STEPS NECESSARY TO IMPLEMENT ~ ABOVE TRANSACTION INCLUDING, BUT NOT LIMITED TO, APPEARANCES IN ANY LEGAL PROCEEDINGS BROUGHT CONCERNING THE ABOVE TRANSACTION.