Record of Decision for the Disposal and Reuse of Mare Island Naval Shipyard, Vallejo, CA

DEPARTMENT OF DEFENSE

Department of the Navy

Record of Decision for the Disposal and Reuse of Mare Island

Naval Shipyard, Vallejo, CA

Summary

The Department of the Navy (Navy), pursuant to Section 102(2)(C) of

the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C.

Sec. 4332(2)(C), and the regulations of the Council on Environmental

Quality that implement NEPA procedures, 40 CFR Parts 1500-1508, hereby

announces its decision to dispose of mare Island Naval Shipyard in

Vallejo, California.

Navy and the City of Vallejo analyzed the impacts of the disposal

and reuse of Mare Island Naval Shipyard in a Joint Environmental Impact

Statement/Environmental Impact Report (EIS/EIR), as required by NEPA

and the California Environmental Quality Act (CEQA), Cal, Pub. Res.

Code, Sec. 21000, et seq. The EIS/EIR analyzed three reuse alternatives

and identified the Mare Island Final Reuse Plan, described in the EIS/

EIR as the Reuse Plan Alternative, as the

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Preferred Alternative. The Reuse Plan Alternative proposed industrial,

commercial, residential, and educational uses, the development of

public parks and recreational areas, expansion of the existing golf

course, and extensive roadway improvements.

Navy intends to dispose of the property in a manner that is

consistent with the Mare Island Final Reuse Plan dated July 1994, as

modified in March 1998 (Reuse Plan). The City of Vallejo, the Local

Redevelopment Authority (LRA) for Mare Island Naval Shipyard, prepared

the Reuse Plan.

In deciding to dispose of mare Island Naval Shipyard in a manner

consistent with the Reuse Plan, Navy has determined that a mixed land

use will meet the goals of achieving local economic redevelopment,

creating new jobs, and providing additional housing, while limiting

adverse environmental impacts and ensuring land uses that are

compatible with adjacent property. This Record Of Decision does not

mandate a specific mix of land uses. Rather, it leaves selection of the

particular means to achieve the proposed redevelopment to the acquiring

entity and the local zoning authority.

Background

Under the authority of the Defense Base Closure and Realignment Act

of 1990 (DBCRA), Public Law 101-5 10, 10 U.S.C. Sec. 2687 note, the

1993 Defense Base Closure and Realignment Commission recommended the

closure of Mare Island Naval Shipyard. This recommendation was approved

by President Clinton and accepted by the One Hundred Third Congress in

October 1993. Mare Island Naval Shipyard closed on April 1, 1996, and

Navy is currently maintaining the property in an inactive caretaker

status.

Mare Island Naval Shipyard is located on the western edge of the

City of Vallejo in Solano County, California, about 30 miles northeast

of the City of San Francisco. The 5,252-acre property consists of four

parcels: Mare Island comprising 5,197 acres; main entrance complex and

railroad spur comprising 26 acres in the City of Vallejo; a housing

complex comprising 29 acres in Vallejo; and a bulkhead in Vallejo.

Most of the Shipyard is situated on Mare Island, which lies west of

the Napa River and mare Island Strait into which the river flows. About

3.5 miles long, the island is just west of the City and its axis runs

approximately northwest to southeast. The eastern half of Mare Island

is developed with about 960 buildings that contain about 10.5 million

square feet of space. It lies adjacent to Mare Island Strait. The

western half of Mare Island is composed largely of wetlands, dredge

material disposal ponds, and submerged lands. It lies adjacent to San

Pablo Bay. The southern end of Mare Island touches Carquinez Strait.

The State of California granted about 3,629 acres of tidal and

submerged lands to the United States for the establishment of a Naval

base at Mare Island. These grants were issued in 1854, 1897, and 1963.

By the terms of these grants, title to the property reverts to the

State of California when the United States no longer occupies the ceded

lands for military purposes, as in the case of the 1854 statute, or no

longer continues to hold and own the adjacent lands, as in the case of

both the 1897 and 1963 statutes. Navy has no discretion regarding the

return of this property to the state of California nor any authority to

control its use after reversion.

During the Federal screening process, six Federal agencies

requested interagency transfers of base closure property at Mare

Island. These included the Department of Agriculture's United States

Forest Service, the United States Coast Guard, the Department of the

Interior's United States Fish and Wildlife Service, the Department of

the Army, the Department of Justice's Immigration and Naturalization

Service, and the Department of the Air Force.

Navy will transfer 207 acres of Shipyard property to four of these

Federal agencies. Navy has already transferred part of the former

Combat Systems Technical School (Buildings 1306 and 1324) and about 8

acres of land in the southern part of the base to the United States

Forest Service for use as the headquarters for its Pacific Southwest

Region.

Navy will transfer about one acre in the southern part of the base

to the Coast Guard for the operation of a communications tower.

Additionally, Navy will grant the Coast Guard easements to permit it to

continue operating a navigational aid and vessel traffic service remote

radar on Pier 35 at the southeastern tip of Mare Island.

Navy will transfer about 162 acres in the north central part of the

base that contain wetlands, dredge material disposal ponds, and

Building 505 to the United States Fish and Wildlife Service. The

Service will use this property to enlarge the San Pablo Bay National

Wildlife Refuge and establish a wildlife interpretive center. While the

Service initially requested 670 acres, 508 of those acres will revert

to the State of California. Thus, only 162 acres were available for

this interagency transfer.

Navy will transfer about 36 acres in the southeastern part of the

base to the Department of the Army for use as an Army Reserve Center.

Army initially also requested an interagency transfer of 600 housing

units at Roosevelt Terrace but later withdrew that request.

The Immigration and Naturalization Service initially requested an

interagency transfer of three buildings on Mare Island for use as a

detention facility, but subsequently withdrew its request. Similarly,

the Department of the Air Force expressed interest in 481 housing units

and supporting facilities on Mare Island, but subsequently withdrew its

request.

After the Federal screening process had concluded, Navy received

additional expressions of interest in base closure property at Mare

Island from the United States Department of Agriculture and the

Department of the Interior's National Park Service. Both agencies

subsequently withdrew their requests.

The remaining property, comprising about 1,416 acres, is surplus to

the needs of the Federal Government. Therefore, in this Record Of

Decision, the Federal action is the disposal of 1,416 acres of surplus

Federal property associated with Mare Island Navy Shipyard.

Navy published a Notice of Intent in the Federal Register on

September 1, 1994, announcing that Navy and the City of Vallejo would

prepare a Joint EIS/EIR to analyze the impacts of disposal and reuse of

the land, buildings, and infrastructure at Mare Island Navy Shipyard.

Navy and Vallejo held a public scoping meeting at the John F. Kennedy

Library in Vallejo on September 22, 1994, and the scoping period

concluded on October 21, 1994.

On September 1, 1995, Navy and Vallejo distributed a Draft EIS/EIR

(DEIS/EIR) to Federal, State, and local agencies, interested parties,

and the general public. On September 27, 1995, Navy held a public

hearing concerning the DEIS/EIR at Vallejo City Hall. During the 45-day

review period after publication of the DEIS/EIR, Federal, State, and

local agencies, community groups and associations, and the general

public submitted oral and written comments concerning the DEIS/EIR.

These comments and Navy's responses were incorporated in the Final EIS/

EIR (FEIS/EIR), which was distributed to the public on May 1, 1998, for

a 30-day review period that concluded on June 1, 1998. Navy received

nine letters concerning the FEIS/EIR.

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Alternatives

NEPA requires Navy to evaluate a reasonable range of alternatives

for the disposal and reuse of this surplus Federal property. In the

Joint EIS/EIR, Navy and Vallejo analyzed the environmental impacts of

three ``action'' alternatives that could result from the disposal of

Mare Island Naval Shipyard property. In the NAPA process, Navy also

evaluated a ``No action'' alternative that would leave the property in

a caretaker status with Navy maintaining the physical condition of the

property, providing a security force, and making repairs essential to

safety.

The City of Vallejo developed the Reuse Plan with extensive public

involvement and comment that began with its establishment of the Mare

Island Futures Project in October 1993. Vallejo created the Mare Island

Futures Work Group to guide the reuse planning process. This Group was

composed of representatives from local government, labor, business,

educational institutions, environmental organizations, and private

citizens who were interested in the reuse of Mare Island Naval

Shipyard.

In November 1993, the Work Group completed a Conceptual Reuse Plan

that was accepted by the Vallejo City Council in December 1993. In

April 1994, Vallejo evaluated the market feasibility of the Conceptual

Reuse Plan. Based upon the findings of the market feasibility study and

an economic analysis, the Work Group prepared the Final Reuse Plan.

During preparation of the Final Reuse Plan, all Work Group meetings

were open to the public. This Plan addressed all of the property

associated with Mare Island Naval Shipyard, and in July 1994, the

Vallejo City Council accepted the Mare Island Final Reuse Plan.

After the Plan was completed and the reversionary property and

Federal agency requests for base closure property were considered, Navy

determined that about 3,629 acres on Mare Island would revert to the

State of California and about 207 acres on Mare Island would be

transferred to other Federal agencies. In March 1998, Vallejo modified

the Final Reuse Plan to take account of the Department of the Army's

request for an interagency transfer of base closure property.

The Preferred Alternative, designated in the FEIS/EIR as the Reuse

Plan Alternative, would implement the Reuse Plan for the surplus

Shipyard property. This alternative proposed extensive use of existing

structures and land uses that were similar to Navy's use of the

property. In particular, the Reuse Plan Alternative proposed

industrial, commercial, residential and educational uses as well as

expansion of the nine-hole golf course to 18 holes and relocation of

the rifle range activity from the center of Mare Island to an

undeveloped area in the southeastern part of the island.

The Reuse Plan also proposed to build a bridge across Mare Island

Strait and to redevelop the southeastern part of Mare Island for retail

commercial and residential uses. Additionally, this alternative

proposed to make extensive roadway improvements that would serve the

proposed redevelopment. Under the Reuse Plan, there are about 81 acres

of wetlands in the northeastern, central, southern and southeastern

parts of the base available for disposal that will be protected by

conservation easements or similar real estate instruments.

The Reuse Plan designated 13 Reuse Areas on the eastern side of

Mare Island and identified wetland, submerged land, and dredge material

disposal areas on the eastern and western sides and at the southern end

of Mare Island. Although not included within these 13 Reuse Areas, the

main entrance office building and causeway bridge, the railroad spur,

the Roosevelt Terrace housing complex, and the bulkhead are also

addressed in the Reuse Plan.

Reuse Area 1, the North Light Industry Area, covers about 192 acres

at the northern end of Mare Island. It contains buildings that are

surrounded by paved or grassy open areas. Navy used this part of the

base for warehouse activity and light industrial, retail,

administrative, residential, and recreational activities. Under the

Reuse Plan, this area would contain an industrial park. The 29-acre

wetland area on its eastern boundary will be protected by a

conservation easement or similar real estate instrument.

Reuse Area 2, the Neighborhood Center, covers 85 acres located

south of the North Light Industry Area. It contains recreational

facilities, i.e., the base theater, gymnasium, and athletic fields.

Under the Reuse Plan, this area would be used for community and social

services and housing.

Reuse Area 3, the Office and Light Industry Area, covers 111 acres

and consists of historic and non-historic industrial and office

buildings in the eastern part of Mare Island, south of the North Light

Industry area. Under the Reuse Plan, this part of the base would be

redeveloped as a small business and residential complex. Some

buuildings would be subdivided to provide residential units, and other

buildings would be demolished to provide space for parking. A

waterfront promenade would extend along the length of this Reuse Area.

Reuse Area 4, the Historic District, covers about 47 acres along

the waterfront in the east central part of Mare Island. The historic

resources located here such as Saint Peter's Chapel, Alden Park, 21

houses, and Drydock 1 are components of the area that the Secretary of

the Interior designated in 1976 as the Mare Island Naval Shipyard

National Historic Landmark. Under the Reuse Plan, the area along the

waterfront would be used for ship repair, historic ship restoration,

and an extension of the waterfront promenade. Saint Peter's Chapel and

Alden Park would be used for tours and special events and as visitor

attractions. The historic houses would be used for permanent private

residences, guest lodging, restaurants, and as office space. Because of

the presence of these historic structures, there would be very little

demolition in this Reuse Area.

Reuse Area 5, the Heavy Industry Area, covers 119 acres along the

waterfront south of the Historic District. Navy will transfer Pier 22,

Buildings 573 and 743, and about 7 acres here to Army for use as part

of the Reserve Center. The remaining 112 acres are available for reuse.

This area, which Navy formerly used for shipbuilding and ship repair,

contains some of the largest buildings on Mare Island, two drydocks,

and several overhead cranes.

Under the Reuse Plan, this property would be used for

manufacturing, e.g., metal processing and fabrication and

biotechnology. The railroad lines that serve this area would remain in

their present configuration. Historic buildings and landmarks would be

preserved, and the waterfront promenade would be extended, to the

extent practicable, into the industrial shoreline area.

Reuse Area 6, Farragut Village, covers 107 acres and is located

west of the Historic District. It contains duplex residences, barracks,

an elementary school building, and adjacent playgrounds. About 15 acres

in this Reuse Area, where 30 duplex housing units are located, will

revert to the State of California. The remaining 92 acres are available

for reuse.

Under the Reuse Plan, these 92 acres would contain residential

structures and retail stores. The Vallejo Unified School District would

continue to operate the elementary school and playgrounds. The 32-acre

wetland at the northwest boundary of this Reuse Area will be protected

by a conservation easement or similar real estate instrument.

Reuse Area 7, the Developed Recreation Area, covers 48 acres in the

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center of Mare Island, south of Farragut Village. This Reuse Area

contains the rifle range, open laydown storage areas, and undeveloped

lands. About 36 of the 48 acres in this part of the base will revert to

the State of California, including most of the property where the rifle

range is currently located. The remaining 12 acres are available for

reuse. Under the Reuse Plan, this property would be redeveloped for

recreational uses, i.e., athletic fields and enlargement of the nine-

hole golf course. The rifle range activity would be moved to the

southeastern part of Mare Island.

Reuse Area 8, Coral Sea Village, is a 70-acre residential

development with a parade ground located southeast of the Developed

Recreation Area. Under the Reuse Plan, this area would be used for

housing. The parade ground would be used as a recreational field.

Reuse Area 9, the Education and Office Area, covers 101 acres in

the south central part of the base between Reuse Area 5 (Heavy

Industry) and Reuse Area 8 (Coral Sea Village). It contains the 30-

building school and campus of the former Combat Systems Technical

School, office buildings and a large electrical shop (Building 866).

Navy has transferred Buildings 1306 and 1324 and about 8 acres of land

to the Forest Service for use as the headquarters for its Pacific

Southwest Region. Navy will transfer 9 buildings (A-272, 726, 776, 930,

934, 936, 938, 1294, and 1296) and about 13 acres here to Army for use

as part of the Reserve Center. The remaining 80 acres are available for

reuse. Under the Reuse Plan, the school and campus, the office

buildings, and the electrical shop would be used for educational

activities and as a conference center.

Reuse Area 10, the Retail and Residential Area, covers 94 acres

adjacent to Mare Island Strait in the southeastern part of the base,

south of the Heavy Industry Area. Navy will transfer Pier 23, 6

buildings (A-279, 597, 724, 736, 762, and FA1-0) and about 16 acres

here to Army for use as part of the Reserve Center. The remaining 78

acres are available for reuse.

This Reuse Area contains vacant lots and many small buildings that

would be demolished. Under the Reuse Plan, a retail commercial complex

and residential apartments and condominium units would be built in this

part of the base. The 9-acre wetland area along the eastern edge next

to Mare Island Strait will be protected by a conservation easement or

similar real estate instrument. Where practicable, the waterfront

promenade would be extended into Reuse Area 10. A southern crossing

bridge across Mare Island Strait, connecting Mare Island with the City

of Vallejo, would be built in this area but its precise location has

not yet been determined.

Reuse Area 11, the Golf Course Area, is located in the south

central part of Mare Island and covers about 172 acres. It consists of

the existing nine-hole golf course and clubhouse and undeveloped open

space. Under the Reuse Plan, the nine-hole golf course, now covering

about 100 acres, would be expanded to 18 holes over 172 acres. The

existing clubhouse and parking facilities would also be expanded.

Reuse Area 12, the Regional Park, covers about 241 acres of

undeveloped property at the southeastern end of Mare Island. The FEIS/

EIR erroneously stated that Reuse Area 12 contained 172 acres and that

69 acres of dredge material disposal ponds were available for disposal.

There are actually 241 acres of property in Reuse Area 12, and there

are no dredge material disposal ponds here. Navy will transfer a one-

acre site in this part of the base to the Coast Guard for its

communications tower, and about 10 acres will revert to the State of

California. The remaining 230 acres are available for reuse.

Under the Reuse Plan, public recreational facilities would be built

here. Walking, bicycling, and equestrian paths and trails would link

the various parts of Mare Island, particularly the wetland and dredge

material disposal ponds to the west with the waterfront promenade along

the eastern shoreline. These trails would be designed and built in a

manner that preserves the natural terrain and character of the island.

The 11-acre wetland area along the southeastern edge of Reuse Area 12

will be protected by a conservation easement or similar real estate

instrument. The Regional Park would also provide horse stables and a

rifle range. These facilities are currently located on reversionary

property in the center of the island. The cemetery in Reuse Area 12

would be preserved as an historic cemetery.

Reuse Area 13, the Open Space and Recreation Area, covers 92 acres

and is located on a landfill site between the dredge material disposal

ponds and the nontidal wetlands in the northwestern part of Mare Island

west of the wetlands adjacent to Reuse Area 2, the Neighborhood Center.

The entire area is located on property that will revert to the State of

California.

There is additional surplus Shipyard property that is located off

the island in the City of Vallejo and covers about 55 acres. The main

entrance office building, the causeway bridge, the railroad spur, and

the bulkhead cover about 26 acres, and the Roosevelt Terrace housing

complex covers about 29 acres. Under the Reuse Plan, the main entrance

office building would be used for retail commercial activities or

professional office space; the causeway bridge would continue to serve

as the primary access to Mare Island; and the railroad spur would be

used to support industrial and commercial activities on Mare Island

that require rail service.

The Roosevelt Terrace housing complex is located in Vallejo, about

one mile northeast of the main entrance office building. Under the

Reuse Plan, half of this 600-unit housing complex would be remodeled

for residential use. The remaining housing units would be demolished to

provide space for landscaping, recreational activities, and parking.

The bulkhead is located in Vallejo across Mare Island Strait from

the southeastern end of Mare Island. Under the Reuse Plan, this 2,150

foot concrete and stone bulkhead would continue to serve as a

breakwater.

In the NEPA process, Navy considered a second ``action''

alternative, described in the FEIS/EIR as the Medium Density

Alternative. In the Medium Density Alternative, the reuse of Mare

Island Naval Shipyard would be similar to that proposed in the

Preferred Alternative but with reduced development densities, i.e.,

less new construction and fewer people. This alternative includes the

same 81 acres of wetlands that would be protected by conservation

easements or similar real estate instruments.

The southern crossing bridge across Mare Island Strait, linking

Mare Island with Vallejo, would not be built. Reuse Area 10, the Retail

and Residential Area, would not be developed. The rifle range activity

would remain at its present location in Reuse Area 7, the Developed

Recreation Area. No new apartment or condominium units and a minimal

number of industrial and commercial structures would be built. Instead,

existing facilities would be converted for industrial, commercial, and

residential reuse.

Navy also considered a third ``action'' alternative, described in

the FEIS/EIR as the Open Space Alternative. In the Open Space

Alternative, there would be substantially less development than in the

Preferred Alternative.

The southern crossing bridge linking Mare Island and Vallejo would

not be built. Reuse Area 10, the Retail and Residential Area, would not

be developed. The sites of the existing rifle range and golf course

would be used as

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open space in an expanded Regional Park covering 344 acres. No new

industrial, commercial, and residential structures would be built.

Instead, existing facilities would be converted for reuse. This

alternative also includes the same 81 acres of wetland that would be

protected by conservation easements of similar real estate instruments.

Environmental Impacts

Navy analyzed the direct, indirect, and cumulative impacts of the

disposal and reuse of this Federal property. The EIS/EIR addressed

impacts of the Preferred Alternative, the Medium Density Alternative,

the Open Space Alternative, and the ``No action'' alternative for each

alternative's effects on land use, socioeconomic, public services,

cultural resources, aesthetics and scenic resources, biological

resources, water resources, geology and soils, traffic and circulation,

air quality, noise, utilities, and hazardous materials and waste.

The direct environmental impacts are those associated with Navy's

proposed disposal of 1,416 acres of surplus Shipyard property and with

the ``No action'' alternative. The indirect impacts are those

associated with the reuse of this surplus property. The cumulative

impacts are those associated with reuse of the Shipyard property that

reverts to the State of California (3,629 acres), the Shipyard property

that will be transferred to other Federal agencies (207 acres), and

other projects within the Vallejo area.

No significant direct impacts will result from Navy's disposal of

the surplus Shipyard property. Therefore, this Record Of Decision

focuses on the indirect and cumulative impacts that are likely to

result from implementation of the Reuse Plan Alternative, designed in

the FEIS/EIR as the Preferred Alternative.

The Preferred Alternative would he significant impacts on land use.

The intensive development of new retail commercial and residential

structures in the Retail and Residential Area in the southeastern part

of Mare Island would not be compatible with the proposed open space and

passive recreational uses of the adjacent Regional Park. The proposed

relocation of the rifle range activity to the Regional Park would also

conflict with the proposed recreational use of this park because it

would introduce safety concerns, noise, and new structures into this

otherwise undeveloped area.

The proposed southern crossing bridge would have significant land

use impacts on both Mare Island and Vallejo. Siting the bridge in the

southeastern part of Mare Island would not be compatible with the

proposed residential and open space uses planned for that property. It

could also require construction in a shoreline area that contains

sensitive wetland habitat that will be protected by the conservation

easement. In the City of Vallejo, construction of the proposed bridge

could divide and substantially alter the South Vallejo residential and

commercial neighborhood by virtue of the need to demolish buildings and

other structures and increase the size of roadways serving this area.

The proposed redevelopment in Reuse Areas 3, 4, 5, 10, and 12

(Office and Light Industry, Historic District, Heavy Industry, Retail

and Residential, and Regional Park) would involve the construction of

new buildings, roads, and utilities. In order to accommodate this

redevelopment, it may be necessary to remove and relocate segments of

the dredge slurry pipelines that traverse these Reuse Areas as well as

their supporting facilities. Navy used these pipelines to carry

material dredged from Mare Island Strait across the island to the

dredge material disposal ponds on the western side of Mare Island.

The Preferred Alternative would not have any adverse effect on

employment and housing in the Vallejo area. On the contrary, the Reuse

Plan would generate about 9,669 jobs on Mare Island and add about 1,786

dwelling units to the Vallejo area. Similarly, the proposed

redevelopment of the Shipyard would substantially increase the amount

of public recreational resources available in Vallejo.

The Preferred Alternative would have significant impacts on

schools. Student enrollment would exceed capacity at the Mare Island

Elementary School that serves Mare Island and at the Federal Terrace

School that serves the Roosevelt Terrace Housing Complex in Vallejo.

The Vallejo Unified School District would be responsible for providing

facilities to accommodate the additional students.

The Preferred Alternative would also have significant impacts on

police and fire protection and emergency medical services. A

substantial increase in the demand for these services in the Vallejo

area would result from the increased population and redevelopment on

Mare Island.

The Preferred Alternative would not have a significant impact on

cultural resources. Many of the historic buildings, structures, and

landscapes will be preserved. However, some demolition and construction

activities would take place within the Mare Island Naval Shipyard

Historic District and in sensitive archaeological areas.

Navy has completed consultation pursuant to Section 106 of the

National Historic Preservation Act, 16 U.S.C. Sec. 470(f), and its

implementing regulations, ``Protection of Historic Properties'', 36 CFR

Part 800, with the California State Historic Preservation Officer

(SHPO) and the Advisory Council on Historic Preservation (ACHP). This

consultation addressed the potential adverse effects of the Reuse Plan

on the Mare Island Naval Shipyard Historic District, which is listed on

the National Register of Historic Places and includes the properties

comprising the Mare Island Naval Shipyard National Historic Landmark.

In particular, the consultation considered the demolition of historic

buildings and structures and the construction of new buildings within

the Mare Island Naval Shipyard Historic District and in sensitive

archaeological areas.

The consultation also identified measures to be taken by Navy and

Vallejo that would avoid or mitigate adverse effects on Mare Island's

historic properties. These measures are set forth in the Memorandum Of

Agreement Among the United States Navy, the Advisory Council on

Historic Preservation and the California State Historic Preservation

Officer Regarding the Layaway, Caretaker Maintenance, Leasing, and

Disposal of Historic Properties on the Former Mare Island Naval

Shipyard, Vallejo, California, dated April 1, 1997 (MOA). This MOA was

executed by Navy, the SHPO, and the ACHP and concurred in by the City

of Vallejo and the National Park Service.

Under the terms and conditions of this MOA, Navy will secure and

maintain the historic properties and implement a program of recording

representative historic buildings according to the standards of the

Historic American Engineering Record or the Historic American Buildings

Survey before conveying any property at Mare Island Naval Shipyard. The

City will extend the protection of its historic preservation ordinance

to include all of the historic properties in Reuse Area 4 (the Historic

District) and selected historical buildings, structures, and landscape

features elsewhere within the Mare Island Naval Shipyard Historic

District. Vallejo will also ensure compliance with those requirements

of the California Environmental Quality Act applicable to the

protection of historic archaeological sites.

The Preferred Alternative would have significant impacts on

aesthetics and scenic resources. The proposed walking,

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bicycling, and equestrian trails and the rifle range and horse stables

in the Regional Park at the southwestern end of the island would be

visible from many places in the Vallejo area. Similarly, the proposed

southern crossing bridge across Mare Island Strait would have a

significant impact on aesthetics and scenic resources because it would

also be visible from many places in the Vallejo area.

The Preferred Alternative could have adverse effects on biological

resources. In general, the proposed construction and redevelopment in

areas adjacent to wetlands could add sediment to those resources.

Construction of the southern crossing bridge could have a negative

impact if the project were to include removal of shoreline wetlands

and/or sensitive species habitat such as that which lies adjacent to

the proposed retail and residential development in Reuse Area 10. If

construction of this bridge would result in the placement of fill in a

wetland, permits required by Section 404 of the Clean Water Act, 33

U.S.C. Sec. 1251, et seq., must be obtained from the United States Army

Corps of Engineers.

Navy has completed consultations with the National Marine Fisheries

Service and the United States Fish and Wildlife Service pursuant to

Section 7 of the Endangered Species Act, 16 U.S.C. Sec. 1531, et seq.

In a letter dated March 29, 1996, the National Marine Fisheries Service

concurred that the endangered winter-run chinook salmon would not be

adversely affected by the proposed redevelopment. On May 23, 1997, the

U.S. Fish and Wildlife Service issued a Biological Opinion in which it

concluded that the disposal and reuse of Mare Island Naval Shipyard

property would not jeopardize the continued existence of the endangered

California clapper rail, the endangered salt marsh harvest mouse, the

threatened Delta smelt, or the proposed threatened Sacramento

splittail.

The Service's Opinion was conditioned upon Navy and the City of

Vallejo implementing measures that will protect these species. Before

disposal, Navy will protect the California clapper rail and salt marsh

harvest mouse by providing predator management (i.e., monitoring,

managing, and removing predators likely to adversely affect these

species) and by establishing conservation easements or similar real

estate instruments on the 81 acres of wetlands that provide suitable

habitat for these species.

Navy expects that the conservation easements or similar real estate

instruments will be held and administered by the U.S. Fish and Wildlife

Service. Additionally, in accordance with Executive Order 11990,

Protection of Wetlands, dated May 24, 1977, Navy will place a Notice in

the conveyance document that describes the conservation easements or

similar real estate instruments and identifies those uses that are

restricted by Federal, State, and local wetland regulations.

Navy will also develop a predator management plan and a public

access management program for Mare Island Naval Shipyard that it will

implement during the caretaker period preceding conveyance. After

conveyance of the surplus Shipyard property, the City of Vallejo will

be responsible for implementing a similar plan and program. Vallejo

will also limit the number of cats and dogs allowed in each residential

unit on Mare Island and will restrict cats and unleashed dogs to the

property lines of individual housing units.

Navy will protect the Delta smelt and the Sacramento splittail by

providing a Notice in the conveyance document that future users of the

drydocks and other waterfront property at Mare Island such as piers,

berths, and pilings may be required to obtain endangered species

incidental take permits from the National Marine Fisheries Service, the

U.S. Fish and Wildlife Service, and the California Department of Fish

and Game.

The Preferred Alternative could degrade water resources. Demolition

and construction activities may disturb the soil, increasing erosion

and sedimentation into Mare Island Strait. Thus, the California Water

Resources Board and the Regional Water Quality Control Board will

impose controls on redevelopment that require the use of stormwater

pollution prevention plans and best management practices.

Certain property on Mare Island could be subject to flooding from

high tides and water flow on the Napa River and as a result of land

subsidence and rising sea level. Those parts of the North Light

Industry, Office and Light Industry, Historic District, Heavy Industry,

and Retail and Residential Areas with elevations less than 10 feet

above sea level could be flooded if not adequately protected.

Consequently, the acquiring entity must comply with the Vallejo

Municipal Code, Title VII, Chapter 7.98, Flood Damage Protection.

Additionally, in accordance with Executive Order 11988, Floodplain

Management, dated May 24, 1997, Navy will place a Notice in the

conveyance document that describes those uses that are restricted under

Federal, State, and local floodplain regulations.

Dredging the ship berths along the eastern side of Mare Island

could expose aquatic organisms in the flood chain to disturbed

contaminated sediments from Mare Island Strait. The nature and extent

of these impacts cannot be determined before the sediments have been

tested and the dredging methods and dredge disposal sites have been

selected. It may be necessary to use special dredging equipment such as

closed clamshell buckets that would minimize the escape and dispersion

of contaminated water and sediment. In any event, the acquiring entity

will be required to obtain permits for such dredging from the U.S. Army

Corps of Engineers under Section 404 of the Clean Water Act, 33 U.S.C.

Sec. 1251, et seq.

The Preferred Alternative would have significant impacts on geology

and soils. As discussed earlier, certain parts of Mare Island could be

subject to flooding from naturally occurring high water levels. In

addition, the southern end of Reuse Area 10, the Retail and Residential

Area, could be flooded if the saltwater reservoir dam in Reuse Area

12's Regional Park were to fail. Similarly, if the Golf Course's

freshwater reservoir dam in Reuse Area 11 were to fail, the resultant

flooding would affect nearby wetland and open space areas.

Additionally, the Preferred Alternative would allow redevelopment

in parts of Mare Island that contain potential geological hazards.

Because the Shipyard is located in a seismically active area, buildings

there would be susceptible to structural damage from ground shaking,

liquefaction of soil, and slope failures that may occur during a large

earthquake.

The Preferred Alternative would have significant impacts on traffic

and circulation. Although the proposed reuse would generate about

60,224 average daily vehicle trips, significantly less than the 76,350

average daily vehicle trips that were associated with Navy's use of the

Shipyard property, the Preferred Alternative would result in an

increase in truck traffic during construction and subsequent reuse.

This increased truck traffic, arising out of the proposed warehouse and

industrial activities, could cause traffic congestion during peak

commuting periods.

Additionally, these trucks would be traveling on narrow Mare Island

roadways that were not designed to accommodate such traffic,

introducing safety hazards for other vehicles. The use of railroad

lines that run on the causeway bridge and on and close to Mare Island's

roadways would pose similar safety hazards. Neither the

[[Page 59772]]

railroad lines nor the roadways were designed to accommodate the nature

and extent of public use proposed in the Reuse Plan.

The Preferred Alternative would have a significant impact on air

quality. Local dust would be generated during demolition, renovation,

and construction activities, including construction of the southern

crossing bridge.

Section 176(c) of the Clean Air Act, 42 U.S.C. Sec. 7506, as

amended, requires Federal agencies to review their activities to ensure

that they do not hamper local efforts to control air pollution. This

statute prevents Federal agencies from conducting activities that do

not conform to an approved implementation plan. The United States

Environmental Protection Agency regulations implementing this statute

recognize certain categorically exempt activitities. Conveyance of

title to real property and leases in furtherance of conveyance that

meet certain criteria are categorically exempt activities. 49 CFR

Sec. 93.153(c)(2). Accordingly, the disposal of Mare Island Naval

Shipyard property does not require Navy to conduct a conformity

determination.

Navy holds Bay Area Air Quality Management District (BAAQMD) air

emission reduction credits (ERCs) for stationary air emission sources

such as the boilers, paint spray booths, and fuel storage facilities

and historically produced air emissions at Mare Island Naval Shipyard.

These ERCs include 18.9 tons of nitorgen oxides, 12.7 tons of precursor

organic compounds, one ton of non-precursor organic compounds, 1.2 tons

of particulate matter (PM10), 11.5 tons of carbon monoxide, and 0.9

tons of sulfur oxides. Navy has placed these ERCs in the BAAQMD

Emission Bank, from which they can be withdrawn later to offset air

emissions from new sources. Navy will retain the stationary source ERCs

to meet the future permit requirements of Department of Defense

facilities and activities. If there are no future Department of Defense

needs, the credits will be reallocated.

Navy also documented, as part of the NEPA process, mobile source

emissions associated with the operation of motor vehicles and other

non-stationary sources such as locomotives, vessels, and portable

generators at Mare Island. These mobile emission sources historically

produced 259 tons per year of reactive organic compounds, 397 tons per

year of nitrogen oxides, 1,823 tons per year of carbon monoxide, 50

tons per year of sulfur oxides, and 60 tons per year of particulate

matter (PM10).

The mobile sources emission reductions resulting from the closure

of Mare Island can be applied to offset emissions from other Federal

mobile sources to satisfy Federal Clean Air Act conformity

determinations in the area. Navy will retain the mobile source offsets

to meet future Federal Clean Air Act conformity requirements.

The Preferred Alternative would have significant temporary noise

impacts on adjacent lands use arising out of demolition, renovation,

and construction activities, including construction of the proposed

southern crossing bridge. Noise levels in residential areas along Cedar

Avenue between Seventh Street and Twelfth Street and at some other

locations would significantly increase as a result of the increased

traffic generated by the proposed reuse. In addition, a significant

noise impact would result from use of the proposed rifle range in the

Regional Park in Reuse Area 12. Noise generated at this rifle range

would adversely affect the nearby residential areas and passive

recreational uses of the Regional Park.

The Preferred Alternative would have a significant impact on one

utility system. The existing sanitary waste water collection system

lacks sufficient capacity to serve areas where there will be

substantial increases in users, such as the planned residential

development in Reuse Area 10. Consequently, it will be necessary for

the acquiring entity to upgrade and improve the existing system in

those areas where significant increases in population would result from

the proposed redevelopment.

The Preferred Alternative would not have a significant impact on

the other utility systems that serve Mare Island, i.e., water

distribution, solid waste management, natural gas, electric power, and

storm water drainage. Navy will convey easements and rights-of-way to

permit the continuing operation and maintenance of the communications,

electricity, and natural gas utility systems at Mare Island that have

already been conveyed to local utility providers.

Implementation of the Preferred Alternative would not have any

impact on existing environmental contamination at Mare Island Naval

Shipyard. Before conveyance, Navy will remediate contamination from

hazardous substances and investigate and remove unexploded ordnance in

a manner that protects human health and the environment. If Navy

conveys property at Mare Island Naval Shipyard before completion of the

required remediation, Navy will endure that the property is suitable

for disposal for its intended use. In either case, Navy will inform

future property owners about the environmental condition of the

property and may, where appropriate, include restrictions,

notifications, or covenants in deeds to ensure protection of human

health and the environment in light of the intended use of the

property.

No significant adverse impacts would be cause by the hazardous

materials and hazardous waste that may be used and generated by the

Preferred Alternative. The quantity of hazardous materials used,

stored, and disposed of, and the quantity of hazardous waste generated

on the property will be less under the Preferred Alternative than

during Navy's use of the Shipyard property. Hazardous materials used

under the Preferred Alternative will be managed according to applicable

Federal and State regulations. Hazardous wastes transported for

disposal or generated under the Preferred Alternative and stored for

more than 90 days will be controlled by the Resource Conservation and

Recovery Act of 1976, (RCRA), 42 U.S.C. Sec. 6901, et seq.

Navy also analyzed the impacts of low-income and minority

populations pursuant to Executive Order 12898, Federal Actions to

Address Environmental Justice in Minority Populations and Low-Income

Populations, reprinted in 42 U.S.C. Sec. 4321 note. Construction of the

proposed southern crossing bridge could have disproportionate and

adverse land use, noise, traffic, and air quality impacts on the

minority and low-income residential neighborhood in South Vallejo. The

acquiring entity could avoid adversely affecting this neighborhood by

siting the Vallejo access to the bridge in an industrial area at Solano

Avenue.

A separate environmental analysis will be conducted, with public

participation, when the City selects a right-of-way for the bridge.

Consultation and coordination with Federal, State, and local

environmental and permitting agencies will be required throughout the

project review and approval process. No other disproportionately high

and adverse human health or environmental effects would be experienced

by minority and low-income populations as a result of the Preferred

Alternative.

Navy also analyzed the impacts on children pursuant to Executive

Order 13045, Protection of Children from Environmental Health and

Safety Risks, dated April 21, 1997. Under the Preferred Alternative,

the largest concentration of children would be present in the

residential, educational, and recreational areas on Mare Island and at

the Roosevelt Terrace housing

[[Page 59773]]

complex in the City of Vallejo. The Preferred Alternative would not

impose any disproportionate environmental health or safety risks on

children.

Mitigation

Implementation of the decision to dispose of Mare Island Naval

Shipyard does not require Navy to perform any mitigation measures

beyond those discussed here. Navy will take certain actions to

implement existing agreements and regulations. These actions were

treated in the FEIS/EIR as agreements or regulatory requirements rather

than as mitigation.

As required by Executive Order 11990, Protection of Wetlands, and

Executive Order 11988, Floodplain Management, Navy will incorporate

Notices in the conveyance documents describing wetland and floodplain

uses that are restricted under Federal, State, and local regulations.

Before property is conveyed, Navy will execute conservation easements

or similar real estate instruments for the 81 acres of wetlands that

provide suitable habitat for endangered species.

Before conveying any Shipyard property, Navy will record

representative historic buildings according to the standards of the

Historic American Engineering Record or the Historic American Buildings

Survey, as required by the Memorandum of Agreement dated April 1, 1997.

Additionally, in accordance with Federal and State laws, Navy will

include appropriate restrictive covenants in the property deeds for any

parcels where hazardous substances remain. As discussed above, Navy

will inform future property owners about the environmental condition of

the property and may, where appropriate, include restrictions,

notifications, or covenants in deeds to ensure the protection of human

health and the environment in light of the intended use of the

property.

The FEIS/EIR identified and discussed those actions that would be

necessary to mitigate impacts associated with the disposal and reuse of

Mare Island. The acquiring entity, under the direction of Federal,

State, and local agencies with regulatory authority over protected

resources, will be responsible for implementing necessary mitigation

measures.

Comments Received on the FEIS

Navy received comments on the FEIS/EIR from the United States

Environmental Protection Agency (EPA), the California Department of

Transportation, the California State Lands Commission, the Greater

Vallejo Recreation District, Arc Ecology (a private organization), and

four individuals. All of the substantive comments concerned issues

already discussed in the FEIS/EIR. Those comments that require

clarification are addressed below.

The California Department of Transportation commented that the

FEIS/EIR did not propose adequate mitigation measures for the highway

interchange on State Route 37 at Mare Island's North Gate. This agency

suggested that it may be necessary to rebuild the interchange to

accommodate the traffic that would be generated by the proposed reuse

activities. As discussed in the FEIS/EIR, the acquiring entity will

widen roads leading to and from this interchange to reduce potential

traffic congestion near Mare Island's North Gate.

The California Department of Transportation also commented that the

FEIS/EIR did not analyze the environmental impact of the additional

traffic on State Route 29 (Sonoma Boulevard) that would be generated by

the southern crossing bridge. The City of Vallejo and the California

Department of Transportation will determine the location of the bridge

in a future planning study. Thereafter, construction of the southern

crossing bridge will be subject to environmental impact analysis and

permitting requirements. At that time, appropriate mitigation measures

to address any additional traffic on State Route 29 can be identified.

The California State Lands Commission, Arc Ecology, and two private

citizens challenged Navy's determination of the amount of Mare Island

property that is subject to reversion to the State of California. They

also requested that Navy consider impacts associated with the different

configuration of reversionary land at Mare Island advanced by the State

Lands Commission. Navy's determination of the amount of property that

is subject to reversion to the State of California is based upon the

decision of the Supreme Court of the United States in United States v.

O'Donnell, 303 U.S. 501 (1938). The impacts that could arise from other

hypothetical configurations of reversionary lands need not be

considered.

A private citizen commented that in the FEIS/EIR, Navy should also

have considered alternative uses for certain property that reverts to

the State of California, i.e., the dredge material disposal ponds.

Similarly, Arc Ecololy commented that, in addition to the Reuse Plan's

proposals for reuse of the surplus Shipyard property, Navy should also

have evaluated in the FEIS/EIR, future uses of the reversionary

property and the property transferred to other Federal agencies.

The reversionary property will revert to the State of California by

operation of law. Since neither Navy nor the City of Vallejo can

determine the future use of this reversionary property, it would not be

appropriate to include a discussion of alternatives for the reuse of

such property in the FEIS/EIR. Similarly, the property transferred to

other Federal agencies to meet other Federal requirements is not

surplus to the needs of the Federal Government. Therefore, it is not

being considered for disposal in this FEIS/EIR. However, the FEIS/EIR

does analyze the potential cumulative environmental impacts arising out

of the proposed reuse of the Shipyard property, the reuse of base

closure property by other Federal agencies, and the reuse of

reversionary property by the State of California.

The Greater Vallejo Recreation District commented that additional

evaluation would be required before implementing particular

recreational projects such as construction of the horse stables and

rifle range in the Regional Park. The FEIS/EIR, however, recognizes

that future projects and redevelopment proposals will be subject to

CEQA and the City of Vallejo's zoning requirements.

Arc Ecology also commented that Navy narrowly defined the disposal

action to avoid responsibility for mitigating environmental impacts

that may occur after conveyance of the Shipyard property. The FEIS/EIR

fully analyzes the direct environmental impacts associated with the

disposal of surplus Shipyard property at Mare Island and the indirect

environmental impacts associated with reuse of that property. The FEIS/

EIR also clearly identifies mitigation related to the direct impacts of

Navy's disposal and the indirect impacts of reuse. Navy cannot control

reuse after conveyance of the property, and the acquiring entity will

be responsible for implementing any mitigation required by reuse

activities.

A private citizen expressed concern that Navy had leased property

at Mare Island to the City of Vallejo and transferred Shipyard property

to other Federal agencies before completing the FEIS/EIR. Navy leased

property at Mare Island Naval Shipyard to Vallejo only after conducting

separate NEPA evaluations and preparing appropriate NEPA documentation

for these interim leases. Additionally, the uses allowed under these

leases are limited to those that are substantially the same as Navy's

historical uses of the property. Moreover, these leases can be

cancelled

[[Page 59774]]

upon 30 days notice if the uses are incompatible with this Record of

Decision.

Arc Ecology also commented that Navy's use of historical

environmental conditions as the basis for its assessment of the effects

of projected future impacts could minimize or understate future

environmental impacts. In the FEIS/EIR, Navy employed the most recent

conditions representative of historical full scale Navy operations at

Mare Island as the baseline for evaluating impacts that would likely

result from the proposed reuse. Navy believes that this is an

appropriate standard to apply when assessing potential future

conditions.

In further comments on the FEIS/EIR, Arc Ecology suggested that

Navy had concluded that as a result of compliance with existing laws,

there would be no environmental impacts. On the contrary, Navy

identified several potential environmental impacts that could occur as

a result of implementing the Reuse Plan. Navy concluded, however, that

these impacts would be reduced to insignificant levels through the

required compliance with existing Federal, State, and local

regulations. These include compliance with Federal and State air

pollution emissions regulations and guidelines, Federal and State

hazardous waste management and remediation regulations, the Vallego

General Plan, and the Vallejo Municipal Code. Implementation of the

Reuse Plan will not require mitigation or protection beyond the

applicable requirements of these regulations and guidelines.

Arc Ecology also commented that Navy had incorrectly concluded that

the proposed redevelopment would be consistent with the goals,

policies, and land use designations set forth in the Vallejo General

Plan. This comment pointed to the need to revise the General Plan to

take account of the proposed reuse. The General Plan Land Use Map will

be amended to reflect the planned reuse, but the amendments to the

General Plan will fall within and be consistent with the current

policies and goals of the Vallejo General Plan.

Arc Ecology and a private citizen commented that Navy had not

adequately analyzed the potential impacts of future human or ecological

exposure to currently unknown contamination at Mare Island. Navy is

remediating contamination at Mare Island to levels that are protective

of human health and the environment pursuant to the Comprehensive

Environmental Response, Compensation, and Liability Act (CERCLA), 42

U.S.C. 9601, et seq., and Executive Order 12580, Superfund

Implementation, dated January 23, 1987. If any additional contamination

is discovered and is attributable to Navy, it too would be addressed

under CERCLA. It would be speculative now to identify mitigation

measures that would address unknown contamination. Furthermore, it is

unnecessary to an analysis of the proposed disposal and reuse of the

Shipyard.

A private citizen expressed concern that additional minority and

low-income areas in Vallejo, beyond those already identified in the

FEIS/EIR, would be disproportionately and adversely affected by reuse

activities on and off Mare Island. As discussed in the FEIS/EIR,

however, only the southern crossing bridge (depending upon the location

selected) could result in disproportionately high and adverse impacts

on a minority and low-income population. The other environmental

impacts identified in the FEIS/EIR would occur only on Mare Island

where no one presently resides or over a broad geographic area.

Therefore, these impacts would not result in disproportionately high

and adverse impacts on minority and low-income populations.

Another private citizen expressed concern that future redevelopment

projects could adversely affect wetlands because they may rely upon the

general wetland map that was included in the FEIS/EIR. This citizen

asked that Navy annotate the FEIS/EIR to state that its wetland map is

not adequate for project planning. This citizen also suggested that the

City adopt a mitigation measure requiring that project proponents

submit a wetland delineation approved by the United States Army Corps

of Engineers for any project that would affect lands which are not

paved, built upon, or landscaped. Section 404 of the Clean Water Act,

33 U.S.C. 1344, as implemented by its regulations, provides protection

for the wetlands at Mare Island. In addition, as required by Executive

Order 11990, Protection of Wetlands, Navy will place a Notice in the

property conveyance document that describes those uses that are

restricted under Federal, State, and local wetland regulations.

Several comments expressed concern that Navy had underestimated the

levels of police and fire protection services required to serve Mare

Island and that the costs of providing these services would result in

an overall reduction in public services in the City of Vallejo. Navy's

analysis in the FEIS/EIR adopted projected staffing requirements that

were provided by the City of Vallejo's Police and Fire Departments

during the reuse planning process. The Vallejo General Plan provides

that new development should bear the cost of extending or upgrading

public services. It is the policy and practice of the City of Vallejo

to require a new development to pay its fair share of the costs of

public services generated by the development.

Several private citizens and Arc Ecology, none of whom commented on

the Draft EIS/EIR, suggested making several changes to, or providing

additional detail concerning, aspects of the Reuse Plan and the

alternatives. They also requested more detailed analysis of certain

environmental impacts. Navy analyzed a reasonable range of alternatives

in the FEIS/EIR at a reasonably specific level. Future reuse proposals

will be subject to the environmental requirements of CEQA when

particular redevelopment plans are submitted to the City of Vallejo for

its consideration.

Regulations Governing the Disposal Decision

Since the proposed action contemplates a disposal action under the

Defense Base Closure and Realignment Act of 1990 (DBCRA), Public Law

101-510, 10 U.S.C. Sec. 2687 note, Navy's decision was based upon the

environmental analysis in the FEIS/EIR and application of the standards

set forth in DBCRA, the Federal Property Management Regulations (FPMR),

41 CFR Part 101-47, and the Department of Defense Rule on Revitalizing

Base Closure Communities and Community Assistance (DoD Rule), 32 CFR

Parts 174 and 175.

Section 101-47.303-1 of the FPMR requires that the disposal of

Federal property benefit the Federal government and constitute the

``highest and best use'' of the property. Section 101-47.4909 of the

FPMR defines the ``highest and best use'' as that use to which a

property can be put that produces the highest monetary return from the

property, promotes its maximum value, or serves a public or

institutional purpose. The ``highest and best use'' determination must

be based upon the property's economic potential, qualitative values

inherent in the property, and utilization factors affecting land use

such as zoning, physical characteristics, and other private and public

uses in the vicinity, neighboring improvement, utility services,

access, roads, location, and environmental and historical

considerations.

After Federal property has been conveyed to non-Federal entities,

the property is subject to local land use regulations, including zoning

and subdivision regulations and building

[[Page 59775]]

codes. Unless expressly authorized by statute, the disposing Federal

agency cannot restrict the future use of surplus Government property.

As a result, the local community exercises substantial control over

future use of the property. For this reason, local land use plans and

zoning affect determination of the highest and best use of surplus

Government property.

The DBCRA directed the Administrator of the General Services

Administration (GSA) to delegate to the Secretary of defense authority

to transfer and dispose of base closure property. Section 2905(b) of

DBCRA directs the Secretary of Defense to exercise this authority in

accordance with GSA's property disposal regulations, set forth in Part

101-47 of the FPMR. By letter dated December 20, 1991, the Secretary of

Defense delegated the authority to transfer and dispose of base closure

property closed under DBCRA to the Secretaries of the Military

Departments. Under this delegation of authority, the Secretary of the

Navy must follow FPMR procedures for screening and disposing of real

property when implementing base closures. Only where Congress has

expressly provided additional authority for disposing of base closure

property, e.g., the economic development conveyance authority

established in 1993 by Section 2905(b)(4) of DBCRA, may Navy apply

disposal procedures other than those in the FPMR.

In Section 2901 of the National Defense Authorization Act for

Fiscal Year 1994, Public Law 103-160, Congress recognized the economic

hardship occasioned by base closures, the Federal interest in

facilitating economic recovery of base closure communities, and the

need to identify and implement reuse and redevelopment of property at

closing installations. In Section 2903(c) of Public law 103-160,

Congress directed the Military Departments to consider each base

closure community's economic needs and priorities in the property

disposal process. Under Section 2905(b)(2)(E) of DBCRA, Navy must

consult with local communities before it disposes of base closure

property and must consider local plans developed for reuse and

redevelopment of the surplus Federal property.

The Department of Defense's goal, as set forth in Section 174.4 of

the DoD Rule, is to help base closure communities achieve rapid

economic recovery through expeditious reuse and redevelopment of the

assets at closing bases, taking into consideration local market

conditions and locally developed reuse plans. Thus, the Department has

adopted a consultative approach with each community to ensure that

property disposal decisions consider the Local Redevelopment

Authority's reuse plan and encourage job creation. As a part of this

cooperative approach, the base closure community's interests, e.g.,

reflected in its zoning for the area, play a significant role in

determining the range of alternatives considered in the environmental

analysis for property disposal. Furthermore, Section 175.7(d)(3) of the

DoD Rule provides that the Local Redevelopment Authority's plan

generally will be used as the basis for the proposed disposal action.

The Federal Property and Administrative Services Act of 1949, 40

U.S.C. Sec. 484, as implemented by the FPMR, identifies several

mechanisms for disposing of surplus base closure property: by public

benefit conveyance (FPMR Sec. 101-47.303-2); by negotiated sale (FPMR

Sec. 101-47.304-9); and by competitive sale (FPMR Sec. 101-47.304-7).

Additionally, in, Section 2905(b)(4), the DBCRA established economic

development conveyances as a means of disposing of surplus base closure

property. The selection of any particular method of conveyance merely

implements the Federal agency's decision to dispose of the property.

Decisions concerning whether to undertake a public benefit conveyance

or an economic development conveyance, or to sell property by

negotiation or by competitive bid are committed by law to agency

discretion. Selecting a method of disposal implicates a broad range of

factors and rests solely within the Secretary of the Navy's discretion.

Conclusion

The City of Vallejo's proposed reuse of Mare Island Naval Shipyard,

reflected in the Reuse Plan, is consistent with the requirements of the

FPMR and Section 174.4 of the DoD Rule. The LRA has determined in its

Reuse Plan that the property should be used for several purposes,

including industrial, commercial, residential, educational, and

recreational uses. The property's location, physical characteristics,

and existing infrastructure as well as the current uses of adjacent

property make it appropriate for the proposed uses.

The Preferred Alternative responds to local economic conditions,

promotes rapid economic recovery from the impact of the Shipyard's

closure, and is consistent with President Clinton's Five-Part Plan for

Revitalizing Base Closure Communities, which emphasizes local economic

redevelopment and creation of new jobs as the means to revitalize these

communities. 32 CFR Parts 174 and 175, 59 Fed. Reg. 16123 (1994).

Although the ``No action'' alternative has less potential for causing

adverse environmental impacts, this alternative would not take

advantage of the property's location, physical characteristics, and

infrastructure or the current uses of adjacent property. Additionally,

it would not foster local economic redevelopment of the Mare Island

Navy Shipyard property.

The acquiring entity, under the direction of Federal, State, and

local agencies with regulatory authority over protected resources, will

be responsible for adopting practicable means to avoid or minimize

environmental harm that may result from implementing the Reuse Plan.

Accordingly, Navy will dispose of Mare Island Naval Shipyard in a

manner that is consistent with the City of Vallejo's Reuse Plan for the

property.

Dated: October 23, 1998.

William J. Cassidy, Jr.,

Deputy Assistant Secretary of the Navy (Conversion And Redevelopment).

[FR Doc. 98-29560 Filed 11-4-98; 8:45 am]

BILLING CODE 3810-FF-M