8 Washington

Guardian Voices: There’s something happening here

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There are distinct signs of the rebirth of a grassroots  balanced-growth  movement in San Francisco, and some small indication that it’s even beginning to shift, ever so slightly,  the politics of the Board of Supervisors.  This is very good news for the vast majority of San Franciscans.

First, a little history.

Land use and the approval of major development projects lie at the very heart of San Francisco politics. Developers and their allies (the building trades, contractors, bankers, architects, land-use lawyers, consultants, and  permit expeditors) are the primary source of political money for candidates for local office. Since the freeway and urban renewal fights of the 1960s, the very definition of  progressive  politics in San Francisco has been the attempt to build a political base of  residents to resist that money.  So-called moderates are simply the political extension of the pro-development lobby using its money to consolidate developer control of the public approval process.

In most cities, land-use issues — zoning, permits, urban design — is left to elites. Not so in San Francisco. Here, land use is talked about at neighborhood meetings and on street corners. The heart the reason is our compact size: 46.7 square miles, and the prohibition of filling in any more of the Bay to create new land. There is no vacant land in San Francisco. Any new major development almost always displaces something already there.  Development is a zero sum game, with winner and losers.  And the losers  leave town.

Land-use politics is about staying here — and that creates real interest among San Francisco residents.

The funding for major development in San Francisco has dramatically changed in the 45 years since the freeway and anti-urban-renewal fights of the mid-1960s. Back then, it was public sector money that fueled development. Yet, with that money, due to the actions of  progressive politicians like Phil and John Burton and George Moscone, came its own remedy: votes to not accept the public money for freeways (Moscone) and votes creating either laws that either prohibited displacement or funded legal assistance to the poor, empowering  them to stop government agencies through litigation (the Burtons at both the state and federal level).

Since the money for freeways and urban renewal was from the government, the focus of the early balanced growth  forces was on government itself, through massive lobbying campaigns to affect officials’ votes (the freeway fight), or the use of government-funded lawyers  to protect poor people’s  interests ( the WACO and TOOR lawsuits against redevelopment).

All of that changed starting in the 1970s, when Richard Nixon and later Ronald Reagan deregulated oversight of urban development by creating a system of  block grants and ended funding for legal assistance for the poor.  Large-scale development was effectively privatized, moving it from being designed, funded, and approved at public meetings by government officials following regulations to being designed and funded in private — and having a Kabuki-play-like public approval process with little real oversight. With the passage of Prop 13 in 1978, which limited the main source of local government revenue — property taxes — local governments became even more reliant on private developer money to create new revenue.

The popular response to this change in the development process in San Francisco was the emergence of a politics that relied on the old progressive-era reforms of the initiative, referendum, and recall. Through a series of initiatives, the community sought to impose regulations on the development process, culminating in the 1986 Proposition M, which actually limited the amount of high-rise office space developers could build, completely imposing the popular will over a supine set of local officials and politicians. Indeed, ten years earlier, again through the initiative processes, the very nature of the Board of Supervisors was changed from a developer-friendly at-large system to a district-election system. Hotly opposed by real estate and development interests, district elections in its brief three years of existence (repealed in the wake of the Moscone-Milk assassinations, even though they were both strong supporters of the system and their assassin opposed it…ironies abound in San Francisco politics) saw limits placed on condo conversions and the passage of rent control.

In each of these multi-year efforts, a citywide coalition was formed, including an ever-expanding set of communities and neighborhoods.  Common interests were defined that cut across race, class, and geography and issues of community (neighborhood) control and funding for essential services like Muni, affordable housing, childcare, and employment training were placed on the table – and developers had to address them if they wanted projects approved.

The point is that balanced growth came from community-based political forces, not elected officials.  Broad movements were built — in the end, encompassing elements of labor. These were victories won not by elected officials but by a popular movement.

In 2000, in the wake of  the dot-com bust, another balanced-growth measure, Prop. L, aimed at cutting then-Mayor Willie Brown’s power over development, was paired with the new district election system — and a broad coalition of forces including labor, community and neighborhood organizations won a major progressive victory.

Every candidate for supervisor who supported the balanced-growth measure won. Every candidate who opposed it and supported Brown lost. While Prop L narrowly lost, its policies and objectives were passed as ordinances by the new Board of Supervisors (banning live-work lofts, closing loopholes in the planning code, requiring neighborhood-based plans for the Mission, SOMA, and Potrero Hill).

But as is so often the case, the victory of 2000 led to the slow dissolution of the coalition that created it. Folks had won. Our supervisors could handle all these issues; we no longer had to. By the end of the term of the supervisors elected as the class of 2000, very little of that citywide coalition existed any more.

With the Great Recession of 2008, advances were rolled back.  Fees on local developers for affordable housing, childcare and transit were deferred in order to stimulate development.  A new era of “moderation” was announced by elected officials, led by Mayor Gavin Newsom. Desires to “attract and retain”  business saw new tax concessions in the name of “jobs” and a new willingness to use open space and public facilities for “private/public partnerships” was announced.

By 2012 any concept of balanced growth had been replaced with a new era of “cooperation” between city officials and developers.

Until recently, that is.

It should be clear to all that for the last four years, City Hall has been eager to approve any scheme presented by private developers — from the America’s Cup nonsense to highrise luxury condos on the waterfront. The siren song of the developers — more revenue if you approve our project — has been proven false again and again, as the revenue never really matches the real costs of these projects. The city’s essential services continue to shrink. Transit fees are too low to pay for the actual new costs of Muni. The affordable housing  fees are too little to actually meet the affordable housing needs of the new, poorly-paid workers employed in the retail and service industry that is always a part of these projects.

More and more of our parks and public open spaces are made available to private users, while few if any new public parks or open spaces are being created.  Indeed, the Department of Parks and Recreation often opposes new public parks — because it can’t maintain what it has.

So it is with fondness that these old eyes see the stirring of what appears to be the awakening political  giant of a new controlled-growth movement.

Here’s how it’s happening: The formation of a multi-neighborhood coalition to oppose fee increases at the Arboretum leads to a bigger coalition to oppose artificial turf  fields in western Golden Gate Park, which leads to an even-bigger coalition placing a policy statement against the privatization of Coit Tower on the ballot and winning.

These are important indications of a broad dissatisfaction with the endless private-public-partnership ( in which all the costs are public and all the profits are private) babble from Rec and Park.

The submission by a broad based coalition of more than 30,000 signatures to place the 8 Washington on the ballot — the first land-use referendum in decades — is an incredibly important achievement, and shows the popular sentiment against much of the City Hall happy talk about development on the waterfront.

But it was the unanimous ( yes, unanimous) vote by the Board of Supervisors last Tuesday to hold California Pacific Medical Center accountable for its constant shape shifting  on its massive project at Geary and Van Ness that shows, perhaps, the outline of the potential future of the balanced-growth movement in San Francisco.

Six supervisors stated their willingness to turn down the environmental impact report on the project unless Sutter/CPMC committed to a project that addressed not only the promise to keep St. Luke’s open for at least 20 years but also hired more San Franciscans, corrected the traffic nightmare predicted for Geary and Van Ness, provided more affordable housing for its own low-income new workforce, and committed  to cap the city’s health care costs as a result of CPMC’s market control the new project would create.

There is always the possibility that the two-week delay will go nowhere, but this kind of talk from this Board of Supervisors to a huge private developer simply has not occurred in the recent past.  No one from Room 200 showed up to twist supervisors’ arms in favor of Sutter.  Sutter was on its own and got rolled.

The coalition that fought Sutter to a standstill at the board, that defined the inadequacies of  the project listed by the supervisors, was a multi-neighborhood, multi-issues organization composed of community, neighborhoods, and labor. Middle class “Baja” Pacific Heights residents and low income seniors from Bernal Heights, non-profit affordable housing advocates and trade unionists, tenant organizers from the Tenderloin and Sierra Club members from the Haight-Ashbury; single moms from the Bayview and Filipino youth from the South of Market.

It was a San Francisco coalition, one that has been working together for nearly three years, blending issues, making concessions to one another and staying together.  A group like this with a set of demands such as these has not prevailed at City Hall for nearly a decade.  It still may not, indeed the chances are slim that its full demands will be achieved.

But this group moved the Board of Supervisors in a way not seen in years.  If the folks mobilized about our parks and the folks mobilized about our waterfront and the folks mobilized about CPMC get together, we have something very big happening. And it might be just in time to make a real difference.
It reminds me of an old saying: “ The people alone are the makers of world history.”

Developer hires crew to block signature gathering

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The developer of 8 Washington has taken an unusual if not unprecedented step to prevent a referendum on his waterfront condo project from succeeding: He’s hired a crew of people to surround signature-gatherers and try to drive away anyone who might sign a petition to put the project before voters.

[UPDATE: Sup. Sean Elsbernd called to let me know that this isn’t unprecedented — he says opponents of his Muni reform initiative, including bus drivers, also tried to discourage people from signing petitions. ]

The pro-condo team, whose members were paid a reported $20 an hour, were visible July 14, 15 and 16 at Fort Mason Center, at the Safeway on Church and Market, at Dolores Park, at Duboce Park and elsewhere in the city, according to accounts from signature gatherers and from Guardian staffers.

The team, usually made up of several people, typically surrounds the signature gatherer, waves signs talking about jobs and parks, and loudly seeks to disuade passers-by from signing the referendum petition.

There is, of course, nothing illegal about two sides of a political debate expressing their First Amendment rights on the sidewalk. Some of the people gathering signatures for the referendum are getting paid, too.

But I can’t think of another time when crews were hired to convince people not to sign a petition.

It’s gotten serious enough the Simon Snellgrove, the developer behind 8 Washington, was out himself. He appeared in Dolores Park after the Mime Troupe performance, where Brad Paul, a foe of the project, saw him debate with a signature gatherer who was leaving the area. He was also at Fort Mason, where, according to one account, a person gathering signatures confronted him and complained that his workers were harassing her.

“That’s their job,” Snellgrove reportedly said.

I couldn’t reach Snellgrove at his office. But Jon Golinger, the campaign manager for the stop 8 Washington effort, said the tactic was a sign of desperation. “They are worried about a public vote on this,” Golinger told me.

 

Gonzalez withdraws his endorsement of Olague

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Matt Gonzalez – the attorney and former president of the Board of Supervisors whose 2003 run for mayor galvanized the city’s progressive movement – has withdrawn his endorsement of Sup. Christina Olague for his old District 5 supervisorial seat, citing her positions on the 8 Washington project and replacing ranked-choice (RCV) voting with a September mayoral primary election.

It is perhaps the biggest political blow that Olague has suffered since being appointed to her first elective office by Mayor Ed Lee in January, and a sign that she may be siding more solidly with Lee and his pro-development allies than with the progressive political community she has long identified with – and that could complicate her race in one of the city’s most progressive districts.

Gonzalez, who helped launch Olague’s political career by appointing her to the Planning Commission in 2004, confirmed his decision and the reasons for it, but he told the Guardian that he didn’t want to make a formal public statement yet. That could come later in the week, possibly coupled with a new endorsement in the race.

But he did say that he’s been frustrated with Olague’s actions on both 8 Washington – a housing project for the super-rich on the Embarcadero – and with her recent antics on RCV. In both cases, it wasn’t just the votes, but the way they were made that have raised doubts about Olague with Gonzalez and other progressives.

Olague and Sup. Jane Kim (another former Gonzalez protege who has disappointed many of her one-time progressive supporters on several high-profile issues) not only voted for the 8 Washington project, but also for a series of amendments that made the already lucrative project even more profitable for the developers and costly to the city.

On RCV, as I reported on Friday, Olague surprised progressives by giving new life to efforts by the most conservative supervisors to repeal the system, then has made a shifting series of statements and pledges on the issue, in the end supporting a system that will repeal RCV only for the mayor and create a September election.

The fear is that election would be extremely low turnout, and Lee could win it outright with at least 65 percent of the vote and avoid the normal November election, and Olague has been unwilling to fully explain her position or address concerns that she is simply doing Lee’s bidding. Olague hasn’t returned our calls on that issue or for her reaction to Gonzalez’s decision to withdraw his endorsement.

Olague’s antics on RCV alarm her progressive supporters

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As Sup. Christina Olague was being appointed to the District 5 seat on the Board of Supervisors by Mayor Ed Lee in January, we noted how difficult it might be to balance loyalty to the moderate mayor with her history as a progressive and someone running for office in one of the city’s most progressive districts.

By most indications, Olague doesn’t seem to be handling that balancing act — or the pressure that goes along with it — very well at all, to the increasing frustration of her longtime political allies. And that’s never been more clear than on the issue of repealing the city’s ranked choice voting (RCV) system.

As you may recall, earlier this year the board narrowly rejected an effort by its five most conservative, pro-downtown supervisors to place a measure repealing RCV on the June ballot. So chief sponsor Sup. Mark Farrell tried again in March with a ballot measure for November, this time just for citywide offices, and Olague surprised progressives by immediately co-sponsoring the measure, giving it the sixth vote it needed.

Since then, she’s offered shifting and evasive explanations for her actions, telling RCV supporters that she would withdraw her support then going back on her word. Sources close to Olague say that she’s been taking her marching orders on the issue directly from the Mayor’s Office, even as she tries to appease her progressive supporters.

Even trying to get a straight answer out of her is difficult. Two weeks ago, as the Farrell measure was coming to the board for a vote, I called her on her cell phone to ask whether she still supported the measure, and she angrily complained about why people care about this issue and said “you’re going to write what you want anyway” before abruptly hanging up on me.

I left her a message noting that it was her support for repealing RCV that had raised the issue again, that I was merely trying to find where she now stood, and that we expect accountability from elected officials. She called back an hour later to say she was still deciding and she denied hanging up on me, claiming that she had just run into someone that she needed to talk to.

At that week’s board meeting, she offered an amended version of Farrell’s proposal – which would replace RCV with a primary election in September and runoff in November for citywide offices – repealing RCV only for the mayor’s race. She has not directly addressed the question of why she supports a September election, which is expected to have even lower voter turnout than the old December runoff elections that RCV replaced.

So RCV supporters worked with Board President David Chiu to fashion an third option, this one maintaining the ranked-choice election for all offices in November, but having a December runoff between the top two mayoral finishers.

Going into this week’s board meeting on the issue, nobody was quite sure where Olague stood on that proposal or the overall issue, again because she’s been making different statements to different constituencies. And as the issue came up and various supervisors stated their positions, Olague stayed silent, as she has remained since then, refusing to return our calls or messages on the issue.

But because of technical changes to the three measures requested by the City Attorney’s Office – which Farrell made to Olague’s option, which he said he would support if his is defeated – consideration was delayed by a week to this coming Tuesday.

RCV supporters and Olague’s progressive allies didn’t want to speak on the record given that she is still the swing vote on the issue, but privately they’re fuming about Olague’s squirrely temperament, lack of integrity, and how she’s handling this issue (as well as her bad votes on the 8 Washington high-end housing project and her role in the Lee perjury scandal).

But rival supervisorial candidates like Julian Davis – who came to the hearing at City Hall Tuesday and proclaimed his unqualified support for RCV – are less reticent.

“Silence or avoidance are not acceptable, so we’re calling for her to explain why a low-turnout, plurality election in September is good for San Francisco. Help us understand,” he said, noting that such a election especially hurts minority groups and other progressive constituencies that don’t vote as reliably as conservatives. “Why should Christina Olague have anything to do with it? You and the rest of San Francisco deserve an answer.”

Meanwhile, Davis recently won the endorsement of local Democratic Party Chair Aaron Peskin, while fellow progressive candidate John Rizzo announced his endorsement by Assembly member Tom Ammiano. And there are rumors that some prominent progressives who have already endorsed Olague are considering withdrawing their endorsements because of her recent behavior.

All of which make for some interesting dramas going into Tuesday’s RCV vote.

We can stop 8 Washington

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There’s a week left to stop the sale of San Francisco’s waterfront to the 1 percent.

The Board of Supervisors approved the 8 Washington project, and a coalition that (for various reasons) opposes this giant pile of housing for the very, very rich is trying to put the issue on the ballot. That takes a lot of signatures, and there’s only one week left to collect them.

I could tell you the story of why this project sucks, or you could just read it here. In my mind, it’s simple: If we are using public land to build housing for the richest people in the country, allowing a developer to clear a couple hundred million dollars while offering the city only $11 million for affordable housing — nowhere near enought to equalize the housing imbalance inherent in this deal — then we’re losing the city’s future.

But there’s still time. If you want to help, go here. Stop by 15 Columbus Ave or call 415-894-7008.

Hell, I’m willing to have a discussion this fall about the really, really dumb idea of tearing down the Hetch Hetchy dam. Let’s at least give the voters a chance to look at the future of the city’s housing policy.

 

Davis launches D5 campaign with fortuitous timing

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When progressive activist Julian Davis formally launched his District 5 supervisorial campaign late last week with a well-attended kickoff party at the Peacock Lounge in Lower Haight, timing and circumstances seemed to be on his side.

Days earlier, Quintin Mecke – a rival for the progressive vote in this staunchly leftist district – announced to supporters that he needed to care for his ailing mother and wouldn’t be running after all. At the same time, appointed incumbent Christina Olague seemed to be rapidly falling from favor with many progressives.

First came the viral video of Olague gushing over all the support she’s received from Chinatown power broker Rose Pak during a fundraiser where she raised nearly $50,000, then her squirrely role in helping the moderates repeal ranked-choice voting, and finally the bizarre episode of clashing with a close progressive ally and friend to defend Mayor Ed Lee from perjury allegations.

Davis has sought to capitalize on the rapidly unfolding developments, today sending out a press release blasting Olague for having “joined the conservatives on the Board of Supervisors to repeal ranked choice voting for mayoral elections,” and telling the Guardian that Mecke’s exit will help clarify the choice D5 voters face.

“The fact that he’s out allows us to consolidate the progressive base,” Davis said, not mentioning that candidates John Rizzo and Thea Shelby will also be vying for the progressive vote.

At his kickoff party, Davis also demonstrated that he has substantial support from another significant D5 voting block – African Americans – for which he’ll be competing with political moderate London Breed, director of the African American Arts & Cultural Complex.

Davis said that with Olague’s support by Mayor Ed Lee and the city’s economic and political establishment, he’ll need to run a strong grassroots campaign based on “people power and shoe leather,” an approach that he’s also displaying with regular street corner campaigning.

“We’re at an economic, social, and political crossroads in San Francisco,” he said at his launch party. “Rogue developers are corrupting City Hall with a vision of luxury condos, corporate tax breaks, chain stores, and parking garages. It’s a vision of San Francisco that doesn’t include us. Everyday, progressive reforms are being dismantled and progressive values are being abandoned.”

Davis is hoping that Olague’s ties to Lee will drag her down in a district that voted almost 2-1 in favor of progressive John Avalos (whose campaign Davis actively worked on) over Lee in last year’s mayor’s race.

“Look what’s happening on the waterfront where Olague voted to approve the 8 Washington development. These are condos for the Kardashians, vacation homes for the ultra rich and the 1 percent. That’s not keeping it real for San Francisco,” he said at the kickoff. “So we’ve got to ask ourselves: how do they get away with it? The only way they can. By choosing your leaders for you. Over the past two years in San Francisco, we’ve had an appointed mayor, an appointed district attorney, an appointed sheriff, and an appointed District 5 supervisor. Does that sound like participatory democracy to you? Does that sound like your vote counts?”

And as Avalos also tried to do in his mayoral campaign, Davis says he wants to use his campaign to help restart the city’s progressive movement, which has been in tatters since being divided and nearly conquered by the politicians and political operatives who helped elevate Lee into Room 200 18 months ago.

As he told supporters, “We can re-launch the progressive movement in San Francisco from this district. We can take back City Hall. We will win this election with people power, street by street, block by block, neighbor to neighbor, shop by shop.”

Brown, Pak, and Olague

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Christina Olague was a great planning commissioner. I’ve always liked her, and when she was appointed we pointed out how strongly she was rooted in the progressive community.

Olague has strong progressive activist credentials, from working with the Mission Anti-Displacement Coalition to protect low-income renters during the last dot-com boom to her more recent community organizing for the Senior Action Network. She co-chaired the 2003 campaign that established the city’s minimum wage and has been actively involved in such progressive organizations as the Milk Club, Transit Riders Union, and the short-lived San Francisco People’s Organization.

She also served two terms on the Planning Commission — appointed by Board of Supervisors then-President Matt Gonzalez in 2004 and reappointed by then-President Aaron Peskin in 2008 — where she was known for doing her homework on complicated land use issues and usually landing on the progressive side of divided votes.

We’ve had some disagreements since she took office — particularly around 8 Washington. (I also disagreed with the Labor Council on that one, and only three of the supervisors agreed with me.) And it’s not the first time an elected official I supported turned around and infuriated me on a development vote.

I want Olague to succeed; I want her to come to us in the fall with a record that makes us want to endorse her for a full four-year term. She’s been talking seriously about violence in the district and about young people, predominantly African Americans, getting killed. I feel like she wants to do the right thing.

But her reelection effort is starting to feature some bad actors.

At a recent fundraiser in Chinatown, former Mayor Willie Brown, who ranks as one of the most corrupt public officials in modern San Francisco history and whose administration was a disaster for poor and working-class people (he once even said that poor people ought to just get out of town because this city is too expensive for them), stood up and made a speech, warmly endorsed Olague and said he would be with her “all the way.” Olague then thanked Rose Pak, the Chinatown power broker, for “all of her support over the last few months.”

This makes me nervous. And it hasn’t helped my nerves that I’ve been trying to talk to Olague about these issues for the last week, and she keeps avoiding the conversation by not returning calls or cutting conversations short when I do reach her.

Willie Brown, with his Chron column, has taken on this funny, warm, man-about-town persona, but when he was running City Hall, everything was about money. He cut deals right and left that destroyed communities and neighborhoods. He oversaw, aided and encouraged what we called the “Economic Cleansing of San Francisco.” Tens of thousands of working-class people, artist, writers, young people … were driven out of the city by a steamroller of gentrification — all with the mayor’s blessing.

Now he’s working as a private attorney, and last time we checked was getting $200,000 a year to represent PG&E. We have no idea what other big corporate clients he has or what he does for them — but it’s clearly not writing legal briefs and handling litigation. He gets paid for being a political fixer. For the bad guys.

And he’s going to be with Olague “all the way.”

Damn.

Guardian voices: The labor agreement that changed SF

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This year marks the 53rd anniversary of the beginnings of  negotiations between the International Longshoreman’s and Warehouseman’s Union and the Pacific Maritime Association over what came to be known as the “Mechanization and Modernization Agreement.”  Signed in October, 1960, after months of talks,  the “M and M agreement” transformed San Francisco’s economy forever, moving its founding industry — shipping and trans shipping — to the East Bay, opening up the land once devoted to maritime uses to real estate development, and setting off the modern political era of San Francisco.

The agreement allowed containerization to come into the San Francisco Bay, making obsolete  the finger piers along San Francisco’s waterfront and the ILWU’s “gangs” that worked on them, hand-loading “break bulk” cargo into the holds of cargo ships. The new technology of shipping cargo in a single  container that could be transported by truck, train, and ship without unloading  transformed maritime trade.

During World War II, shipbuilding and shipping were  fundamental in the effort to move billions of tons of supplies and millions of troops across the global battlefield. In both cases the  San Francisco Bay was ground zero in that in that effort.

Kaiser and Bechtel, two Bay Area-based construction companies, wildly successful in undertaking huge construction projects during the New Deal, were urged to build ships during the war. Kaiser in Richmond and Bechtel in Sausalito constructed  huge shipyards that  built cargo ships by the hundreds, bringing tens of thousands of workers to the Bay Area and changing the demographics of the region for ever. These huge industrial centers didn’t last after the war, and while they transformed who lived in the region, they didn’t really have a lasting economic impact.

But wartime changes in cargo handling did.

For as long as San Francisco had been a city, it depended on its port as the base of its economy. The Gold Rush happened here in part because we had a port and the world rushed in on ships. The enduring fortunes were made during that period by merchants and shipping companies were totally dependent on shipping and cargo handling.

At the heart of the maritime economy was the longshoreman who, by hand, loaded and unloaded ships’ holds. The demand for speed during WWII saw the then-revolutionary introduction of the fork lift truck on the piers of San Francisco, replacing hands with a machine for the first time in the history of the San Francisco waterfront.

But that was only the beginning. New ship designs and new shipping techniques were invented to meet the needs of global war. Since most of the Pacific islands that were the military objectives of the war had no ports or piers, ships were designed that could land directly on a beach and unload preloaded trucks.  Preloaded containers were simply stacked on the decks of Liberty ships, avoiding the need to load the cargo below decks.  By the Korean War these containers were in such regular use by the Army that ships were modified to carry only them, replacing below-deck cargo entirely.

Since ports and piers had been major targets during the war and required extensive rebuilding in both Europe and Asia,  new cargo handling techniques were built into these new facilities, making US ports, undamaged by the war, outmoded and old fashioned.  If US ports were to keep up they had to be modernized.  But who would pay for these new facilities: the shipping business or the government?

San Francisco was still governed by an unbroken line of Republican Mayors during this key period: the anti-New Deal, pro-Mussolini Angelo Rossi; the shipping line owner and anti- ILWU leader Roger Lapham; the pro-real-estate development Elmer Robinson; and finally, the last Republican Mayor of San Francisco, the pro-urban-renewal stalwart George Christopher. These four had no desire to rebuild the waterfront and make the ILWU even stronger. Indeed, Robinson and his successor Christopher had a vision of the waterfront as prime real estate, not working waterfront.

And so, with no commitment to the maritime industry from the city’s leadership and with technological change making the status quo impossible to maintain, Harry Bridges and the leadership of the ILWU cut the best deal they could for their existing members: the 1960 M and M agreement, which gave all existing longshore workers lifetime jobs and very good pay — but sealed the fate of San Francisco waterfront.

By 1962 the Port of Oakland had built its first container facility, and that same year, the first containership, the S.S. Elizabethport, docked and begin loading. By the mid 1970’s, the ILWU was no longer a force in the San Francesco labor movement, its leadership taken by the Building Trades unions  whose  numbers increased as the development boom, fueled by land made vacant by the loss of the maritime industry, grew.

For the rest of the Bay Area, it was San Francisco’s model of waterfront as real estate development that was followed, not Oakland’s investment in cargo shipping. By 1965, development of the Bay was so intense that the McAteer-Petris Act was passed, creating the Bay Conservation and Development Commission, a regional body aimed at limiting the powers of local governments (like San Francisco) in filling and over-developing the Bay.

The 8 Washington battle, the struggle over the Hunters Point shipyard, and the looming battle over the use of a port pier for the Warriors arena all have their history deeply rooted in the 1960 M and M agreement.

In this second decade of the 21st century, our greatest challenge is creating and sustaining meaningful employment. Would our prospects be better if we had somehow been able to keep some maritime uses at the port? Would families in Bay View-Hunters Point be more able to buy homes in their own neighborhood if the same kinds of jobs that allowed their grandparents to buy theirs still existed? Would the boom-or-bust cycle of our real-estate dependent local economy been so disruptive if we had a more steady state base of a maritime sector — which kept the Great Depression from being so devastating in San Francisco in the1930s?

These questions are real — and should show that the shape of our economy is made by us and the decisions we make, locally, not solely by techological change, global trends or the far-too-palsied invisible hand of the free market.

Thick petition against a big project

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My old friend Sue Hestor stopped by my house June 24 to ask if any of my neighbors might want to sign the referendum petition on 8 Washington. She was carrying a clipboard with a document the size of a phone book attached to it. Almost 600 pages, neatly bound.

I flipped through it. Lots and lots of background documents on the project, nothing anyone’s ever going to read. But thanks to some slick moves by the developer, Simon Snellgrove, supported by his allies on the Board of Supervisors, the referendum petition has to have all of that material attached.

See, the petition seeks an election to overturn a piece of legislation. Doesn’t happen often in San Francisco, and as far as I know, it’s never been successful. State law, of course, says that you have to show people the bill you want to overturn.

But when activists in Bayview Hunters Point tried to run a referendum campaign on the area’s redevelopment plan, they lost before they even had a chance. The City Attorney’s Office ruled that each petition had to include the entire redevelopment plan, all 62 pages. Since the petitions didn’t include every single page of that plan, the signatures were rejected.

In this case, Snellgrove’s crew made sure that the final legislation approved by the supes included numerous mentions of other documents that were, in legal terms, “included by reference.” Lots of documents. And all of them had to be copied, bound and attached to every set of petitions that every circulator carries.

It’s a bear: You can’t send petitions around by mail, you can’t carry a whole stack to a big event … and it costs $18 to print and bind a set. The foes of 8 Washington will need at least 1,000 sets to get the required 28,000 signatures. That’s $18,000, just to get started.

Which would clearly appear to be a chill on the rights of the people to force a ballot referendum.

Still, they soldier on. Hestor told me she’s “fundraising like crazy” to get enough money not to pay signature-gatherers but just to print the petitions. Jon Golinger, who’s helping run the campaign, says he confident there will be more than enough copies to do the job.

So if you want to get a little exercise for your arms (don’t laugh –one petitioner is already having arm problems lugging this stuff around) and you’re interested in helping out, check out the campaign HQ at 15 Columbus or call 415-894-7008. There’s a rally Saturday/30 at 10am.

 

 

 

 

 

 

Putting 8 Washington on the ballot

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The fall ballot’s going to be crowded — and one of the issues that may face a vote is the future of the 8 Washington condo complex, the waterfront multi-zillionaire housing that the city doesn’t need.

Opponents of the project have filed for a referendum on the Board of Supervisors approval, and they’re meeing Satruday June 23 at 15 Columbus at 10am to start the process of gathering signatures. It’s not easy — they need 28,000 signatures in 28 days, and this, I suspect, isn’t going to be one of those money-heavy deals with a lot of paid gatherers.

Former City Attorney Louise Renne will be there to lead off the festivities.

Me, I’d love to see this on the ballot in a high-turnout year when six supervisorial seats are up. Because it’s a great issue to discuss: Who is San Francisco building housing for, and why?

Is it ok that more than 80 percent of the people who work in San Francisco can’t afford to buy or rent a median-priced home? Is it ok that virtually all of the new housing getting constructed is out of reach to virtually all of the people who work here?

Is that in any way sustainable?

 

Gosh, we need more condos for millionaires

58

I guess it’s really, really important for San Francisco to build more housing for the very rich because there’s just such a profound need for it. In fact, the demand for million-dollar condos is so high, and the supply so tight, that the folks at Rincon Tower (which is hideous) are bringing in celebrities to try to sell the last few units.

You don’t find many mid-range and affordable units sitting on the market; in fact, there’s a long waiting list and a lottery for affordable housing. Because there’s more demand than supply. On a policy level, one would think that the city would seek to match supply and demand (since the free market clearly isn’t doing it). But no: SF continues to approve housing for people who don’t need it and won’t balance that out with the level of affordable housing that IS desperately needed.

Smart.

Avalos emerges as the board’s main progressive champion

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Sup. John Avalos seems to be the only consistent champion of progressive values at the Board of Supervisors these days, as he demonstrated once again yesterday as he tried to present some alternatives to the neoliberal corporatism that has seized City Hall over the last couple years.

Last week, Avalos was the only vote against a pandering proposal by Sup. Mark Farrell to exempt more small businesses from the city’s payroll tax, which is projected to cost the city $1.5 million next fiscal year and $2.5 million the following one, blowing a $4 million hole in the two-year budget that supervisors are now finalizing for approval in two weeks.

Yesterday, as the measure was about to receive final approval on its second reading, Avalos made a motion to delay it until after the fall election when voters may consider a pair of measures to transition from a payroll to gross receipts tax as the means of assessing local businesses. Mayor Ed Lee and Board President David Chiu introduced one measure that is revenue neutral, while an alternative by Avalos would bring in about $40 million per year.

Avalos didn’t have the votes for the long delay, so he got behind a compromise motion by Sup. Jane Kim to delay the measure until July 10 so the Budget Committee can at least factor it into its deliberations. Farrell opposed the move, insisting that “this is about creating jobs now,” despite the fact that businesses couldn’t apply for the exemption until next February.

A spirited debate followed, in which Avalos criticized City Hall’s current penchant for business tax cuts and questioned whether it really creates the jobs its boosters claim. He also noted that it is the multitude fee increases that local politicians have approved in recent years to balance the budget without raising taxes that have become most onerous for small businesses.

“When we were raising fees over the last five years, we were raising taxes on small businesses,” Avalos said, suggesting that rolling back those fees and taxing larger corporations that can afford it is a better strategy for helping small businesses and encouraging them to create jobs.

Eventually, Avalos won the short delay on a 7-4 vote, with Sups. Farrell, Carmen Chu, Sean Elsbernd, and Scott Wiener opposed.

Meanwhile, Avalos managed to place on the fall ballot an increase in the real estate transfer taxes paid on properties worth $2.5 million or more, convincing Sups. Kim, David Campos, and Eric Mar to support the proposal as the 5 pm deadline for at least four supervisors to place measures on the ballot neared. It would raise $16 million and compete with a similar measure by Lee that would raise $13 million through a smaller increase on properties worth more than $1 million.

Avalos also joined Campos and Chiu in opposing final approval for the 8 Washington housing project for the uber-wealthy. On the same 8-3 vote, the board also rejected Chiu’s efforts to allow opponents of the project to circulate referendum petitions without having to lug around a thick stack of all the studies referenced in the project approval.

Chiu appealed to his colleagues to support “citizens of San Francisco exercising the constitutional right to referendum,” but he won few sympathies on a board that these days seems most concerned with the interests of this city’s wealthiest individuals and corporations.

The 8 Washington embarrassment

16

I wasn’t shocked by the vote on 8 Washington. I knew it was happening; I knew we’d lost when the EIR went through. I knew we couldn’t count on a solid progressive bloc any more. I knew that the lobbying was intense.

But I have to say, at the end of the day I was embarrassed. Because the supervisors sold the city cheap.

In the earlier board discussions, Sup. Christina Olague and Sup. Eric Mar mentioned their concerns about the heigh and bulk of the project and said they would work with the developer, Simon Snellgrove, on changes. But the final project was exactly the same size.

Olague and Sup. Jane Kim were concerned about the amount of parking; the developer agreed to cut 50 spaces. But the actual size of the garage won’t be reduced at all; the only promise: There won’t be valet parking, so maybe not so many cars will fit.

Yes, Snellgrove agreed to set aside some scholarships for low-income kids to swim in the pool, which is a great thing and I fully support it. For a project that, according to available figures, will net the developer $200 million in profit — according to Sup. David Chiu’s analysis, a 72 percent rate of return — the scholarship money is peanuts.

There’s an additional 50 cent parking levy to pay for surface improvements in the area.

But as Chiu asked at the June 12 meeting, “Is the city getting an appropriate level of benefits based on Snellgrove’s profits?” Project foe Brad Paul — a veteran of more than 30 years of the city’s development wars — doesn’t think so. “They got nothing,” he told me.

Here’s how it went down:

Chiu started off by introducing the board’s budget analyis, Harvey Rose. Rose said he’d reviewed the finances of the project, and concluded that the city would get $50 million less out of the project than the developer or the Port of San Francisco, which owns some of the land and is a primary proponent, had originally claimed. Chiu also noted that not all the documents were in the file, but nobody else seemed to care.

In fact, through most of the discussion — limited discussion — and final votes, it was pretty clear that nobody was swayed by any of the facts that Chiu put forward. This deal was done long before the board members took their seats.

Chiu offered a series of amendments, none of them terribly radical. He pointed out that the deal requires the city to pay the developer $5 million for open-space improvements. “That’s an anomaly,” Chiu said, and moved that it be removed.

Kim, who throughout the meeting was the strongest supporter of the project, argued that the city often reimburses developers for open space. More, she said, compared to what the city has asked other major residential developers to give, this project is just dandy. “I would not say this is not a fair deal for the city,” she told her colleagues.

The vote on the $5 million giveaway? Developer 6, SF 5. Siding with Snellgrove: Christina Olague, Scott Wiener, Carmen Chu, Sean Elsbernd, Mark Farrell, and Jane Kim. Siding with Chiu and project opponents: John Avalos, David Campos, Malia Cohen, and Eric Mar. It’s an odd lineup — Cohen doesn’t always vote with the progressives, and I have to say it’s strange to see Kim and Olague siding with the four most conservative supervisors.

Chius’s second proposal: Since the city’s benefits were $50 million less than advertised, why not add $14 million to the affordable housing fee?
Developer: 7. Affordable housing: 4. Voting for the developer: Olague, Wiener, Chu, Elsbernd, Farrell, Kim and Mar.

Okay, one last try. Chiu suggested maybe just $2 million more for affordable housing. Wiener, as is he way, went off on his usual complaint that too much of the affordable housing money is for poor people and not enough for the middle class. The final vote:

Developer: 6. Affordable housing: 5. Voting for the developer: Olague, Wiener, Chu, Elsbernd, Farrell, Kim.

Kim, again, took the lead in promoting the deal on the final vote, saying that a parking lot and a private club were not a good use for the space and that “we are achieving here is a higher and better use for the land.” That’s what every developer talks about, by the way — higher and better use.

She also talked about One Rincon, that hideous tower next to the Bay Bridge that was approved after then-Sup. Chris Daly cut a deal with the developer that the San Francisco Chronicle denounced as a “shakedown.

Kim said that, considering the much-smaller size of the Snellgrove project, the benefits were richer than the Rincon deal.

I never liked the Rincon deal — that tower’s a disaster, an ugly scar on the skyline, and there was nowhere near enough affordable housing money. That’s because I think that the city should be building six affordable units for every four market-rate units, that there’s no need for more housing for the very rich and that our current housing policy is a disaster. (The Guardian wrote an editorial at the time that said it was good that Daly had gotten that much money, but was dubious about the whole project. In retrospect, we were too kind.)

I think all my readers at this point know that. So does Daly.

But I asked the former supervisor anyway to comment on the difference between 8 Washington and One Rincon. His thoughts:

1. The Rincon Hill agreement was negotiated by the district Supervisor working together with the communities most impacted by the development. 8 Washington was opposed by the district Supervisor and many nearby residents.
2. Most people in the South of Market were not diametrically opposed to highrise development in that location. The Planning Department had been working on a Rincon Hill neighborhood plan and was recommending upzoning for the area.
3. Rincon Hill had no waterfront trust issues.
4. The Rincon HIll development impact fee was $25 per square foot (over and above the required inclusionary affordable housing fee even though the Mayor’s Office contended that over $20 per square foot would kill the deal.) According to Kim’s release, her 8 Washington deal netted an additional $2 million for affordable housing and a $.50 parking surcharge. This even though development in Rincon Hill is not as valuable as the northern waterfront.

Folks: I think the city got taken to the cleaners here. I’ll stipulate that I’m against this project for much broader reasons. And maybe I’m just an old commie who thinks that the richer you are, the more you should give back, that the affordable housing fees on the most expensive condos in San Francisco should be higher than normal, that if Snellgrove nets $200 million, then the city by definition left too much on the table.

But I don’t think I’m alone in believing that if you’re going to approve something that will make a developer this rich, and let him use public land to do it, on the waterfront, you ought to get your fair share. And that didn’t happen.

Embarrassing.

Why I hope Sup. Farrell is wrong about condos

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So Sup. Mark Farrell thinks the Board of Supervisors is ready to turn its back on the tenants movement and vote for legislation that would increase evictions, eliminate rental housing and undermine one of the most important pieces of tenant legislation to come out of City Hall in decades?

Gawd, I hope he’s wrong.

From the Examiner:

Similar proposals have gone nowhere at City Hall. Farrell acknowledged it has been a “third rail,” but he suggested the political climate has shifted. “This is a different Board of Supervisors and this is a different time,” Farrell said.

Yeah, it’s a different Board of Supervisors. Five years ago, the 8 Washington project would never have been approved in its current form. Five years ago, Ed Lee wouldn’t have been elected mayor.

But I don’t think this board is ready to abandon the tenant vote.

Making condo conversions easier is a huge deal. When San Francisco put a limit on condo conversions more than 20 years ago, it was a landmark law that put the preservation of affordable, rent-controlled housing over the needs of speculators. Over the past decade, the single greatest threat to tenants in this city is Ellis-Act evictions done to create tenancies in common. And the only check on more of that happening is the disincentive posed by the limits on condo conversions.

If Farrell gets his way, and TIC owners can bypass the conversion lottery, tenant organizations will be furious. There are, at best, five reliable pro-landlord votes on the board, so It’s not going to happen without either David Chiu, Christina Olague or Jane Kim siding with Farrell. A lot of things suprise me in local politics, but that would be a shocker.

 

8 Washington isn’t getting much better

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When the Board of Supervisors approved the environmental impact report for the most expensive condos in San Francisco history, several members of the board said they weren’t entirely happy with the project. Supervisors Christina Olague and Eric Mar both complained about the height and bulk and Olague said she wanted a parking fee.

So now the project is back, and just won approval at the Budget and Finance Commitee — with only a few minor changes. There’s no adjustment to the height and bulk, although the parking has been cut from 255 spaces to 200 and a 50-cent parking surcharge has been added. Sup. Jane Kim wants to be sure that the pool built in the new facility will be open to low-income youth.

But the city’s not getting a dime more than the $11 million in affordable housing money that developer Simon Snellgrove has already offered — despite the fact that the available financial evidence suggests Snellgrove and his partners will make more than $250 million on the deal. Sup John Avalos made clear that the city’s not getting enough out of this project.

So now it goes to the full board June 12 — and if things go according to the normal San Francisco pattern, the developer will get what he wants and the city will get screwed.

See, when you give developers the opening, they take advantage of it. When you let them over the first hurdle with and 8-3 vote, they get pretty confident that they’re going to win. So why would they compromise on more than few details? Why cut the height and bulk when you know you have the votes?

I respect what Eric Mar, Jane Kim and Christina Olague said about their votes on the EIR — but imagine if it had been a 6-5 vote? Snellgrove might have gotten the message that this wouldn’t be easy. He might be calling Olague and Mar and saying: How much less height? How much less bulk? How much more affordable housing? We might have wound up with a much better deal.

Every time — every single time — a developer presents what is supposed to be the last, best deal it’s a scam. Every time the city has said No, the developer has come back and sweetened the pot. That would have happened here, too.

But no. I predict no height and bulk adjustments, no additional affordable housing money — nothing more than what Budget and Finance already got. Which isn’t enough.

Oh, and by the way: Everyone here already knows that I oppose this project because it’s too much housing for rich people, which we don’t need in this city, and puts the city’s housing balance further out of whack. But if we’re going to sell off the waterfront for all the wrong reasons, we should at least get the best deal we can.

The battle of 8 Washington

tredmond@sfbg.com

More than 100 people showed up May 15 to testify on a condominium development that involves only 134 units, but has become a symbol of the failure of San Francisco’s housing policy.

I didn’t count every single speaker, but it’s fair to say sentiment was about 2-1 against the 8 Washington project. Seniors, tenant advocates, and neighbors spoke of the excessive size and bulk of the complex, the precedent of upzoning the waterfront for the first time in half a century, the loss of the Golden Gateway Swim and Tennis Club — and, more important, the principle of using public land to build the most expensive condos in San Francisco history.

Ted Gullicksen, director of the San Francisco Tenants Union, calls it housing for the 1 percent, but it’s worse than that — it’s actually housing for the top half of the top half of the 1 percent, for the ultra-rich.

It is, even supervisors who voted in favor agreed, housing the city doesn’t need, catering to a population that doesn’t lack housing opportunities — and a project that puts the city even further out of compliance with its own affordable-housing goals.

And in the end, after more than seven hours of testimony, the board voted 8-3 in favor of the developer.

It was a defeat for progressive housing advocates and for Board President David Chiu — and it showed a schism on the board’s left flank that would have been unthinkable a few years ago. And it could also have significant implications for the fall supervisorial elections.

Sup. Jane Kim, usually an ally of Chiu, voted in favor of the project. Sup. Eric Mar, who almost always votes with the board’s left flank, supported it, too, as did Sup. Christina Olague, who is running for re-election in one of the city’s most progressive districts.

At the end of the night, only Sups. David Campos and John Avalos joined Chiu in attempting to derail 8 Washington.

The battle of 8 Washington isn’t over — the vote last week was to approve the environmental impact report and the conditional use permit, but the actual development agreement and rezoning of the site still requires board approval next month.

Both Mar and Olague said they were going to work with the developer to try to get the height and bulk of the 134-unit building reduced.

But a vote against the EIR or the CU would have killed the project, and the thumbs-up is a signal that opponents will have an upward struggle to change the minds of Olague, Kim, and Mar.

 

DEFINING VOTES

The 8 Washington project is one of a handful of defining votes that will happen over the next few months. The mayor’s proposal for a business tax reform that raises no new revenue, the budget, and the massive California Pacific Medical Center hospital project will force board members to take sides on controversial issues with heavy lobbying on both sides.

In fact, by some accounts, 8 Washington was a beneficiary of the much larger, more complicated — and frankly, more significant — CPMC development.

The building trades unions pushed furiously for 8 Washington, which isn’t surprising — the building trades tend to support almost anything that means jobs for their members and have often been in conflict with progressives over development. But the Hotel and Restaurant Employees Union joined the building trades and lined up the San Francisco Labor Council behind the deal.

And for progressive supervisors who are up for re-election and need union support — Olague and Mar, for example — defying the Labor Council on this one was tough. “Labor came out strong for this, and I respect that,” Olague told me. “That was a huge factor for me.”

She also said she’s not thrilled with the deal — “nobody’s jumping up and down. This was a hard one” — but she thinks she can get the developer to pay more fees, particularly for parking.

Kim isn’t facing re-election for another two years, and she told me her vote was all about the $11 million in affordable housing money that the developer will provide to the city. “I looked at the alternatives and I didn’t see anything that would provide any housing money at all,” she said. The money is enough to build perhaps 25 units of low- and moderate-income housing, and that’s a larger percentage than any other developer has offered, she said.

Which is true — although the available figures suggest that Simon Snellgrove, the lead project sponsor, could pay a lot more and still make a whopping profit. And the Council of Community Housing Organizations, which represents the city’s nonprofit affordable housing developers, didn’t support the deal and expressed serious reservations about it.

Several sources close to the lobbying effort told me that the message for the swing-vote supervisors was that labor wanted them to approve at least one of the two construction-job-creating developments. Opposing both CPMC and 8 Washington would have infuriated the unions, but by signing off on this one, the vulnerable supervisors might get a pass on turning down CMPC.

That’s an odd deal for labor, since CPMC is 10 times the size of 8 Washington and will involve far more jobs. But the nurses and operating engineers have been fighting with the health-care giant and there’s little chance that labor will close ranks behind the current hospital deal.

Labor excepted, the hearing was a classic of grassroots against astroturf. Some of the people who showed up and sat in the front row with pro-8 Washington stickers on later told us they had been paid $100 each to attend. Members of the San Francisco Planning and Urban Research Association, to which Snellgrove has donated substantial amounts of money in the past, showed up to promote the project.

 

BEHIND THE SCENES

But the real action was behind the scenes.

Among those pushing hard for the project were Chinese Chamber of Commerce consultant Rose Pak and community organizer David Ho.

Pak’s support comes after Snellgrove spent years courting the increasingly powerful Chinatown activist, who played a leading role in the effort that got Ed Lee into the Mayor’s Office. Snellgrove has traveled to China with her — and will no doubt be coughing up some money for Pak’s efforts to rebuild Chinese Hospital.

Ho was all over City Hall and was taking the point on the lobbying efforts. Right around midnight, when the final vote was approaching, he entered the board chamber and followed one of Kim’s aides, Matthias Mormino, to the rail where Mormino delivered some documents to the supervisor. Several people who observed the incident told us Ho appeared to be talking Kim in an animated fashion.

Kim told me she didn’t actually speak to Ho at that point, although she’d talked to him at other times about the project, and that “nothing he could have said would have changed anything I did at that point anyway.” Matier and Ross in the San Francisco Chronicle reported that Ho was heard outside afterward saying “don’t worry, she’s fine.”

Matier and Ross have twice mentioned that the project will benefit “Chinatown nonprofits,” but there’s nothing in any public development document to support that assertion.

Chiu told me that no Chinese community leaders called him to urge support for 8 Washington. The money that goes into the affordable housing fund could go to the Chinatown Community Development Corp., where Ho works, but it’s hardly automatic — that money will go into a city fund and can’t be earmarked for any neighborhood or organization.

CCDC director Norman Fong confirmed to me that CCDC wasn’t supporting the project. In fact, Cindy Wu, a CCDC staffer who serves on the city Planning Commission, voted against 8 Washington.

I couldn’t reach Ho to ask why he was working so hard on this deal. But one longtime political insider had a suggestion: “Sometimes it’s not about money, it’s about power. And if you want to have power, you need to win and prove you can win.”

Snellgrove will be sitting pretty if 8 Washington breaks ground. Since it’s a private deal (albeit in part on Port of San Francisco land) there’s no public record of how much money the developer stands to make. But Chiu pointed out during the meeting, and confirmed to me later by phone, that “there are only two data points we know.” One is that Snellgrow informed the Port that he expects to gross $470 million in revenue from selling the condos. The other is that construction costs are expected to come in at about $177 million. Even assuming $25 million in legal and other soft costs, that’s a huge profit margin.

And it suggests the he can well afford either to lower the heights — or, more important, to give the city a much sweeter benefits package. The affordable housing component could be tripled or quadrupled and Snellgrove’s development group would still realize far more return that even the most aggressive lenders demand.

Chiu said he’s disappointed but will continue working to improve the project. “While I was disappointed in the votes,” he said, “many of my colleagues expressed concerns about height, parking, and affordable housing fees that they can address in the upcoming project approvals.”

So what does this mean for the fall elections? It may not be a huge deal — the symbolism of 8 Washington is powerful, but if it’s built, it won’t, by itself, directly change the lives of people in Olague’s District 5 or Mar’s District 1. Certainly the vote on CPMC will have a larger, more lasting impact on the city. Labor’s support for Mar could be a huge factor, and his willingness to break with other progressives to give the building trades a favor could help him with money and organizing efforts. On the other hand, some of Olague’s opponents will use this to differentiate themselves from the incumbent. John Rizzo, who has been running in D5 for almost a year now, told me he strongly opposed 8 Washington. “It’s a clear-cut issue for me, the wrong project and a bad deal for the city.” London Breed, a challenger who is more conservative, told us: “I would not have supported this project,” she said, arguing that the zoning changes set a bad precedent for the waterfront. “There are so many reasons why it shouldn’t have happened,” she said. And while Mar is in a more centrist district, support from the left was critical in his last grassroots campaign. This won’t cost him votes against a more conservative opponent — but if it costs him enthusiasm, that could be just as bad.

Housing for the super rich approved, 8-3

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The progressive movement and the battle for housing balance and economic justice in San Francisco got walloped May 15 when eight supervisors sided with a developer who wants to build condos for the massively rich on the waterfront.

I watched it all, minus a few minutes while I was putting the kids to bed, all seven and a half hours of testimony and discussion, winding up with a series of pro-developer voters a little after midnight. It was stunning: Opponents of the project came out in droves, many of them seniors, others tenant activists and neighbors. Former City Attorney Louise Renne, who is by no means an anti-development type or any sort of economic radical, led off the arguments in favor of scrapping the environmental impact report and denying the conditional use permit that are needed for 8 Washington to move forward. They brought up so many points that by the end there was nothing more to say: This meets no housing need in San Francisco, further screws up the city’s own mandates for a mix of affordable and market-rate housing, caters to the top half of the top half of the 1 percent, is too tall and bulky for the site, offers the city too little in community benefits and is one of the great development scams of our time.

Then the other side spoke — the city planners who defended the EIR and, briefly, developer Simon Snellgrove. His supporters lined up — and almost all of them talked about the same thing: Construction jobs. I get it, we need construction jobs — but is that a justification for such a bad project? As Sup. David Chiu pointed out, “apartment construction is booming.  There are 22,000 units under construction and 50,000 more in the pipeline.”

Both sides were organized, but only one paid people to show up: At least five people seated in the front row, wearing pro-8 Washington stickers, confirmed that they’d been paid $100 each — in cash — to show up. They didn’t even speak, leaving once they realized that they were misled about the project. One source heard a construction worker say he knew nothing about the project and had been bused in from Sacramento.

And after hearing all of that, the supervisors did what they clearly had decided to do long before a word of testimony was uttered.

The vote to overturn the EIR went like this: favoring the developer were Supervisors Mark Farrell, Jane Kim, Eric Mar, Christina Olague, Malia Cohen, Carmen Chu, Sean Elsbernd and Scott Wiener. Opposing the project were Chiu, John Avalos and David Campos.

Approving the conditional use went along the same voting lines. Chiu couldn’t even get a continuance after arguing that there was no report from the budget analyst and no financial information about whether this is a good deal for the city.

That’s the lineup: Eight votes for the 1 percent. Three votes for the rest of us. I haven’t seen anything this bad in years.

Some fascinating information came out of the discussion. Chiu made clear that the developer doesn’t need the height-limit increase to make a profit off the deal. He estimated that the total sales revenue from the project would be around $470 million and construction costs about $177 million. That’s a huge profit margin, even if you add in another $25 million for upfront soft costs.

Snellgrove’s lawyer, Mary Murphy, tried to duck the financial issues, talking around in circles. Evenutally Chiu got Snellgrove to respond, and he said the costs would be higher and his profit would only be about $80 million. “The capital markets require a high return on these projects,” he said.
Still: $80 million is a lot of money. And while Snellgrove and his allies love to talk about the $11 million in affordable housing money for the city, that’s about 2.3 percent of his total revenue. Which doesn’t sound quite as juicy.

Chiu raised another good question: “Should a condo that sells for $5 million pay the same affordable housing fees as one that sells for $500,000?”
Mar, who is usually a strong progressive, was the big surprise of the night, not only voting the wrong way but teeing up softball questions for the city planners to make the project sound better. It was as if he was reading from the developer’s talking points.

In the end, he said he saw “a lot of benefits from this project,” but promised to work with the developer to advocate for “less bulk and less height.” Olague said the same thing.

But even if it’s a little smaller, this will still be a completely misalignment of housing priorities, a project entirely for the very rich. That’s not going to change.

If anything, they should push for more affordable housing money — a whole lot more. Because what we’re getting is enough for maybe 25 or 30 units, which means 80 percent of the new housing related to this project will be for multimillionaires and 20 percent for everyone else. Keep that pattern going — and there are few signs that it’s about to change — and imagine what this city will be like in 20 years.

It’s not over, not yet: The actual development agreement and the height-limit changes still have to come to the board early in June. And if the mayor signs off on it, opponents are talking serious about a ballot referendum that would be before the voters in November — just when Olague, Mar, Avalos, Campos, and Chiu will be up for re-election.

What the preservation vote says about the 2012 supervisors

64

UPDATE: Important update at the end of this story

What does it mean that a historic preservation law favored by developers and promoted by Sup. Scott Wiener passed the Board of Supervisors 8-3? Maybe nothing. Historic preservation is a strange poliltical issue, favored by some of the wealthy white homeowner types who love pretty buildings (and aren’t so good on other issues), and this thing was sold as a way to help low-income people and affordable housing. But the reality is that the Wiener measure will make it harder to declare historic districts, and thus will take away a tool that the left can use to stop uncontrolled commercial development. And remember: The affordable housing community wasn’t pushing this bill, and, for the most part, hasn’t had problems with historic preservation. The most progressive political club in the city, the Harvey Milk LGBT Democratic Club, came out strongly against the measure and urged Sup. Christina Olague, a co-sponsor, to oppose it:

We are extremely troubled that you appear to be buying into the flawed, bogus and self-serving arguments by SPUR and other supporters of this legislation that historic preservation is classist and leads to gentrification, interferes with the production of affordable housing and is a tool of San Francisco’s elite.  Nothing could be further from the truth.

There was a way to address the issues of low-income people in historic districts without making it harder to block inappropropriate development, but Wiener’s bill went much further. And while I respect Scott Wiener and find him accessible and straightforward, and I agree with him on some issues, he isn’t someone whose basic agenda promotes the interests of tenants or low-income people. His supporters are much more among the landlord class and the downtown folks. The San Francisco Chronicle, which is a conservative paper on economic and development issues, loved the legislation.

So what happened when this got to the Board? Only three people — the ones the Chron calls “the stalwart left flank of the Board” — voted no.

John Avalos, David Campos and Eric Mar. They are now the solid left flank, the ones who can be counted on to do the right thing on almost every issue. Once upon a time, there were six solid left votes. Now there are three.

What does this mean for the other key issues coming up, including CPMC, 8 Washington, and the city budget? Maybe nothing. As I say, this issue is complicated. Olague told me, for example, that she’s really worried about working-class people who can’t afford to comply with the increased regulations that come with historic districts. Her vote doesn’t mean she’s dropped out of the progressive camp, or that she (or Sups. Jane Kim and David Chiu) can’t be counted on in the future. I really want to believe that this was just an aberration, a vote where I’ll look back in the fall and say: Okay, we disagreed on that one, but nobody’s perfect

Still, it’s kind of depressing: The dependable progressive vote is down to three.

UPDATE/CORRECTION: I didn’t know when I posted this that Olague had spoken to the Milk Club leadership after the club’s statement went out and the club has since issued a correction:

Due to a misunderstanding, Supervisor Christine Olague’s position on the Historic Preservation Commission’s critical role in the life of San Franicsco was misrepresented in our weekly newsletter. Supervisor Olague is looking into ways to help continue Historic District status for the Queer community, the Filipino community in the South of Market area, and the Japantown area. She is specifically looking for wording that would help these plans remain viable and welcomes any questions on her position and on her plan. Our apologies to the Supervisor for this unfortunate mistake.

Housing for the rich moves forward — fast

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A proposal to build the most expensive condos in San Francisco history will come before the Board of Supervisors May 15 — and then before the Port Commission May 16, and then before the Board’s Finance Committee May 16, a jumble of hearings and votes that may make it more difficult for critics to be heard.

The 8 Washington project will be one of the most critical votes the board will face in 2012 and will make a lasting statement about the city’s housing policy. And it’s on an odd fast track.

At the board’s May 15 meeting, the supervisors will consider an appeal to the certification of the project’s environmental impact report, and will vote on approving the conditional use authorization for the building complex. If either of those is rejected — that is, if project sponsor Simon Snellgrove can’t line up six votes to approve the EIR and the CU — then the whole thing goes down in flames. The project would still exist in theory, but in practice it would be another two years before it could come back again.

If both of those approvals get through, then the actual development agreement and the financial documents for the project come before the Port Commission the next day — May 16 — at a highly unusual special hearing set for 9am. That’s a tough time to get people to come out and speak against a project, but the Port says it’s necessary, and here’s why:

One hour later, at 10am, the board’s Budget and Finance Committee will consider the same thing. And the Port wants this to get through Budget and Finance before that panel is entirely consumed with the next city budget.

So there will be two nearly simultaneous hearings, both at City Hall, on the same topic, early in the morning. A little difficult for people who want to testify at both. What if the Port hearing goes on until, say, 11:30 or noon (there have been plenty of three-hour hearings on contentious land-use issues in this city)? What if the Budget Committee starts discussion on the item before the Port is through with it?

Brad Benson, the Port’s special projects director, told me that his agency was “in touch with the chair of the Budget Committee. We get the point that people can’t be in two places at the same time.” 

But still, it all seems awfully rushed — particularly since, according to project opponent Sue Hestor, the state Lands Commission also has to sign off on this, and that won’t happen until July.

 

 

 

 

Wiener goes after historic preservation

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Sup. Scott Wiener is pushing a bill that would make it more difficult to create historic districts in San Francisco, and it’s already cleared the Land Use and Economic Development Committee.

UPDATE: Milk Club calls on Sup. Olague to drop her support for the bill.

The measure hasn’t received a lot of news media attention, but it could have a far-reaching effect on development in San Francisco.

In essence, the Wiener bill amends two parts of the city planning code to tighten the requirements for designating a part of the city as a protected historic area — a designation that makes it harder to demolish or substantially alter buildings.
Developers and some property owners dislike the historic designation. Perservationists see it as a way to prevent the destruction of buildings and neigbhorhoods that are a part of the city’s heritage.

Classic example: In the 1980s, members of the Residential Builders Association were tearing down vintage Victorians in the Richmond district and replacing them with boxy, multi-unit apartments that were worth more money than a single-family home. The builders made a lot of quick cash; the city lost some elegant old houses that can never be replaced.

They couldn’t do that as easily in Alamo Square, which is a historic district.

On the other hand, the owners of those stately well-protected houses in these special districts have to go through increased Planning Department scrutiny any time they want to make any substantial alteration in the structure.

Context: Less than 1 percent of the developed part of San Francisco is currently in a historic district. It’s not a huge deal, and most people don’t pay any attention to this stuff.

But it’s important, and here’s why: One, this city doesn’t care enough about its past — but more important, preservation is a tool that can be used to prevent very bad things from happening.

If we’d had good historic preservation laws in the 1970s, the International Hotel could have been designated an historic structure and wouldn’t have been demolished. Same, possibly, for the Goodman Building. Preservation laws could have been used to fight some of the horrors of redevelopment, which mowed down African American and Filipino neighborhoods in the 1960s and 1970s.

Some of Wiener’s suggestions are relatively benign. He wants to exempt affordable housing units from the laws that apply to historic districts, and Sup. Christina Olague, his co-sponsor, wants an economic hardship exemption so that the owners of buildings, particularly in communities of color, can avoid expensive battles over minor repairs and alterations.

I’m fine with all of that. I’m all for it. Good idea. Although it’s not fair to say that this process was driven by a concern for affordable housing; I spoke to Peter Cohen, at the Council of Community Housing Organizations, and he told me that the idea didn’t come from his crew. Not one affordable housing activist showed up at the Land Use hearing to support the Wiener bill.

But the measure also adds more burdens to the process of designating an historic district. It mandates a written survey of all property owners and occupants in an area proposed for historic designation — an expensive and cumbersome thing that isn’t required for commercial development, demolitions, zoning changes, massive market-rate housing projects, full-on gentrification, or anything else that screws up neighborhoods.
It requires the Planning Commission to consider whether historic preservation conflicts with “the provision of housing to meet the city’s regional housing needs allocation,” which is odd because the commission didn’t consider that when it approved 8 Washington, which directly conflicts with the city’s housing needs allocation, or when it’s allowed 20,000 units of mostly high-end housing over the past decade without any provision for the proper corresponding amount of affordable housing.

In short, it gives opponents of historic preservation more ways to stop new protections. That’s going to make developers very happy.

I asked Wiener why he decided to do this, what the problem was that this law is meant to solve. His answer: There are lots of potential new historic districts (including where he lives, in the Duboce Park and Dolores Street areas) and he wants to be sure that there’s a “robust community process.” Excuse me, Supervisor: There’s a robust community process every time anyone does anything in this town, and designating a historic district is no different.

Also: “A lot of people believe that in some situations, historic preservation can be taken to the extremes. This is a real hot topic for the city.”

Now here’s where it gets interesting (and even more complicated). There’s a neighborhood group called the Mission Dolores Neighborhood Association that’s been trying for almost seven years to get the area between Market and 20, Valencia and Sanchez designated a historic district. Peter Lewis, a musician who has been leading the battle, told me that he got involved because developers were tearing down some important old buildings (a Willis Polk building on Dolores and 15th came down a few years ago) and he wanted to halt it.
The group’s got sophistication and resources — MDNA has raised $80,000 for the necessary studies and has been working the the Planning Department and the Historic Preservation Commission.

Wiener is opposed to the idea — particularly the concept of including the Dolores Street median (designed by John Mclaren, he of Golden Gate Park fame) and Dolores Park in the district. The median’s already a state landmark.

“He’s been very polite to us, but he’s made it clear he doesn’t want to see streets or parks included in any historic designation,” Lewis told me.
Why? Well, for one thing, the Planning Department is talking about building bulb-outs on Dolores as a traffic-calming measure. Historic designation for the median might make that more difficult. And Lewis opposes the bulb-outs for all the wrong reasons: “They just want to get people out of their cars,” he said, dismissively.

But really: Is this all worth pushing a measure that could undermine preservation and encourage demolitions and bad development all over the city? Is the current system really all that bad? Didn’t a measure to strengthen historic preservation (placed on the ballot with an 11-0 vote on the Board of Supervisors) just pass overwhelmingly two years ago?

Because it seems to me that this is a solution in search of a problem.

 

The two defining votes of 2012

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The Board of Supervisors will be facing two votes in the next couple of months that will define this board, establish the extent of the mayor’s political clout — and potentially play a decisive role in the political futures of several board members.

Oh: They’ll also have a lasting impact on the future of this city.

I’m talking about 8 Washington and CPMC — one of them the most important vote on housing policy to come along in years, the other a profound decision that will change the face of the city and alter the health-care infrastructure for decades to come.

Both projects have cleared the Planning Commission, as expected. Neither can go forward without approval from a majority of the supervisors. And there will be intense downtown lobbying on both of them.

The 8 Washington project would create what developer Simon Snellgrove calls the most expensive condos ever built in San Francisco. A piece of waterfront property would become a gated community for the very, very rich, many of whom won’t even live here most of the time. If it’s approved, the economy won’t collapse, neighborhoods won’t be destroyed — but it will make a powerful statement about the city’s housing policy. The message: We build housing for the 1 percent. We are a city that caters only to one very tiny group of people. We are willing to let the needs of the few drive our policy over the needs of the many.

Face it: There is no shortage of housing for the people who will buy Snellgrove’s condos. There’s a severe shortage of housing for most of the people who actually work in San Francisco. And the city’s housing policy is so scewed up that it’s making things worse. That’s the message of 8 Washington.

Then there’s CPMC. California Pacific Medical Center wants to put a snazzy state-of-the art new medical center on Van Ness, which is all well and good. But the giant nonprofit Sutter Health, which operates CPMC, has been openly hostile to some of the city’s demands (for housing, transit and other environmental mitigiation) and the proposal that Mayor Ed Lee has signed off on is way out of balance. There’s not anything even close to a reasonable link between jobs and housing — which will impact the entire city. You bring in a lot of new workers and don’t help build enough housing for them and everyone’s rent goes up.

CPMC also wants to radically downsize St. Luke’s Hospital, the only full-service facility on the south side of town except for the overcrowded and overloaded SF General. Health care for a sizable part of the city will suffer.

This is a very big deal, and the Chamber of Commerce is pushing hard for the supes to approve it. A lot of labor and the entire affordable housing community is against it.

So put those two votes in front of a board where the progressive majority has been very shaky of late — and where Lee will be working hard to line up six votes — and you’ve got potential political dynamite. Supervisor John Avalos told me he has serious concerns about both projects. Sup. David Campos told me he feels the same way. Sup Eric Mar is unlikely to vote for 8 Washington and unlikely to oppose the health-care workers and the progressive leaders who want to block the CPMC deal and make Sutter come back with a better offer, but some elements of labor are pushing hard for 8 Washington and Mar is up for re-election in one of the city’s swing districts.

Sup. David Chiu is against 8 Washington. I’ve called Sups. Jane Kim and Christina Olague (who was not a fan of the project when she was on the Planning Commission) but they haven’t gotten back to me. Olague is running for re-election this fall in the city’s most progressive district, one that’s right on the edge of the CPMC project site; Kim’s district is on the other edge.

You can’t really count to six on either of these projects without getting Chiu and/or Kim and/or Olague. Chiu has no progressive opposition, but if he supports the CPMC deal, someone may decide to challenge him. If Olague supports either project, it will give her opponents plenty of fodder for the fall campaign (John Rizzo, who is running against her, told me he opposes both). If Olague opposes the two projects, it’s going to be much harder for anyone to run against her from the left since she will have demonstrated that she can stand up the mayor on tough issues.

I’ll let you know if I hear more.

 

 

 

The case for a study of the economic impact of market rate housing

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“SF’s rush toward the ultimate highrise” read the headline on the Guardian front page of Sept. 27, 1971. The headline and the graphics by Art Director Louis Dunn illustrated the central point of our bombshell study: that despite the rhapsodies of  the Chamber of Commerce and the big developers, highrise commercial buildings don’t produce gushing revenues and they don’t pay for themselves.In fact, our exclusive study of the downtown highrise district  found that “for every $10 the district yields to the city treasury, the city has to provide $11 in services.

“Put another way: the highrise district contributes $62.9 million, or 25.2% of all locally generated municipal revenue.  But it costs $67.7 million, or 25.2% of all locally financed expenditures (figures from fiscal 1970.

“This means taxpayers subsidize–35 cents or so on the tax rate in fiscal 1970–the construction and maintenance of our civic monuments–the Bank of America building, the Transamerica building, the Hilton Hotel–and soon, another 23 skyscrapers that will be taller and bulkier and more  expensive than ever for residents and taxpayers.”

Project Director Tom Lehner, a San Francisco resident and expert on urban policy from UC-Berkeley’s School of Public Policy, made the crucial point: :”This report overturns once and ffor  all, emphatically and conclusively, the conventional wisdom that downtown skyscrapers somehow provide the municipal treasury with its lifeblood.

“Anyone who thinks for a moment about what’s happening in New York,” Lehner added, “will come to the same conclusion as our study did.  But the air’s been so full of propaganda from the Chamber of Commerce and other downtown interests like the Examiner and Chronicle that it’s difficult to have a clear thought about the subject.”  The economic  fact that taxpayers subsidize highrise development has become gospel and helped provide the ammunition for the slow growth movement on commercial highrises that ultimately won on the Proposition M  initiative in 1986.

Below is the  PDF that shows our study with the Louis Dunn drawings: scroll  through.

http://test.sfbg.com/PDFs/highrise.pdf

Today, the burning issue is the luxury building at 8 Washington and the host of market rate developments already built or in the works and their impact on neighborhoods. And today the city needs a study that can provide the facts on the economic impact of market rate development and how neighborhoods can cope with the impacts in an era of “now new taxes.”

Tony Kelly is the president of the Potrero Hill Boosters and one of the most knowledgeable neighborhood activists on the market rate housing front.  He and the Boosters are dealing with the Mission Bay Landrush and the city’s plan to flood the Eastern Neighborhoods with market rate housing. His take is most instructive on why a study is needed:

‘”During the Eastern Neighborhoods re-zoning in 2008, I saw neighbors who supported development turn into NIMBYs overnight as soon as they realized that building market-rate housing in San Francisco doesn’tpay for itself, or much of anything else.  On Potrero Hill, we spent an entire decade working on neighborhood planning that was supposed to  
give us new parks, new transit lines, and better schools in a part of town that desperately needs all of that.  And then, when the new zoning was finally approved … … we found out that none of those improvements made it over the finish line. 


“The impact fees for the new development won’t even come close to providing the transit, parks, schools or infrastructure that the new residents need, let alone those of us who are already here in a very underserved part of town.  I shouldn’t really have to remind you that the new housing isn’t affordable for City residents.  And the Planning  
Department’s own study from 2008 confirms that when you build market-rate housing, you create a bigger need for affordable housing – more than you are getting in affordable housing fees or inclusionary units.

” So, with every new market rate housing unit, we are falling further behind on everything the City needs to do to support neighborhoods.  And the increased property taxes are all going to the General Fund, to support services elsewhere in the City.  Who in their right minds, in any neighborhood, would sign up for such a deal?

“Now, on this side of town, we are stuck with development plans that are designed to double the populations of district 10 and district 6 in the next 20 years.  In my neighborhood, Potrero Hill, the population will triple. And now we have to figure out how to support this booming population without much help from City Hall.

“The new condominium projects that the Potrero Boosters Neighborhood Association has already seen in the past few months reveal the consequences of the Eastern Neighborhoods rezoning—thousands of condos and apartments (and thousands more residents) coming to the neighborhood, with very few opportunities for children or families, and not much planning from the City for alternatives to automobiles.  

“We cannot have urban density in our part of this City with suburban ways of living and getting around, and yet, that is what we have, now and in the future.  So in the neighborhoods, we have to plan (and takeaction) to create our own infrastructure, and not simply rely on what the City manages to give us.”

Kelly’s arguments against pellmell market rate housing is particularly strong for the city’s new frontier of Mission Bay and the Eastern Neighborhoods, but it applies to every neighborhood and the entire city.  This is why for starters the supervisors need to direct the budget analyst or the city’s economist to do a detailed study to help Tony Kelly and the rest of the neighborhoods deal properly with the onslaught of market rate housing.  b3

Editorial on the case against 8 Washington:
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http://www.sfbg.com/bruce/2012/03/06/editorial-case-ag