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7.A. - Page 2 Project, and the Applicant is working with BCDC to ensure that the waterfront public amenity and Bay Trail "spur" is consistent with BCDC policies and goals. It is City staff's understanding that BCDC seeks to have the City approve the Project before BCDC consideration. Only upon City approval would the Project proceed to the BCDC commission for consideration. SLC is the property owner of the outer marina. The outer marina of the Project is subject to two leases between SLC and Peter Uccelli, dba Pete's Harbor. The smaller lease is for a portion of the outer marina generally to the west of the existing restaurant (from the gangway protruding northward into Smith Slough and the two gangways protruding to the west further into Smith Slough). The larger lease is for a portion of the outer marina in front of the restaurant and protruding towards and into Redwood Creek. (See Figures 2.3 and 2.4 of Addendum No. 2 for general depictions of the marina, though property lines are not shown.) Both leases are for a 49 year term beginning June 1, 1984, and allow the outer marina to be used for a commercial marina and ancillary uses. The Applicant and current property owner have entered into an arrangement by which the Applicant is to assume the SLC leases and purchase the land on which the residences would be built. At the time this Project was considered by the Planning Commission, staff and the Planning Commission recognized that the outer marina of the Project was regulated by BCDC and ultimately controlled by SLC. In deference to BCDC's and SLC's independent authority, the Planning Commission's action included a condition of approval to ensure that if either agency were not to permit the Applicant to proceed with the Project as approved by the City, the Applicant could not proceed under the subject City permits (See Condition of Approval No. 6 adopted by the Planning Commission, which requires the Applicant "to comply with any and all regulatory or state agency requirements and obtain any and all necessary regulatory or state agency approvals prior to commencement of construction."). If the Applicant were unable to obtain the necessary approvals from BCDC or SLC, the Applicant would have to obtain a modification of the City Planned Development permit approval in order to proceed any further. Since the Planning Commission's action on this Project, new facts and information have come to light with regard to the SLC leases. SLC's authority and leaseholder's rights under the leases are presently the subject of discussions among the stakeholders and SLC. For example, whether the SLC leases were still in effect was an issue that the City learned of following the Planning Commission's approvals. The current property owner has provided an excerpt from an Attorney General correspondence that states: "From the perspective of SLC staff, the issues identified in the November 9, 2012 notice have Page 2 of 27