Displacement

The story of Q

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› sarah@sfbg.com

With just a couple of weeks to go until San Franciscans elect their next mayor, Quintin Mecke, the 34-year-old program director of the Safety Network, has emerged as Gavin Newsom’s top challenger.

Since declaring his candidacy, the fresh-faced Mecke has been endorsed by almost every significant progressive entity in the city, including supervisors Chris Daly and Ross Mirkarimi, BART board member and Livable City director Tom Radulovich, the Harvey Milk LGBT Democratic Club, the San Francisco Tenants Union, and the Guardian.

"Of all the mayoral candidates, Quintin has the longest record of working in the community and on important issues facing the city," said Daly, who was the first to publicly endorse the Pennsylvania native, shortly after Mecke declared his candidacy in August.

But despite his solid list of endorsers, Mecke hasn’t managed to raise much money. He didn’t come close to taking advantage of the mayoral public financing program created by Mirkarimi and approved by the most liberal members of the Board of Supervisors. Mecke said his late entry made it impossible to raise the required $25,000 (from at least 250 donors who could prove San Francisco residency) by the Aug. 28 deadline.

"Had I had more time, I don’t think raising the $25,000 is that much of a challenge," Mecke, a former Peace Corps volunteer, told the Guardian at the time. But two months later Mecke has only raised $11,203, with Sup. Tom Ammiano and former mayoral contender Matt Gonzalez respectively contributing $250 and $100, although neither has endorsed him yet.

With Newsom sitting on a $1.8 million war chest, Daly admits that it would take a perfect storm for Mecke to win.

"The incumbent would have to stumble between here and the finish line," said Daly, who toyed with running until Aug. 8, at which point Mecke dove into the race, challenging Newsom’s record on public safety, homelessness, and affordable housing — issues that Mecke has been intimately involved with since moving here a decade ago.

Mecke’s move to California came shortly after he survived a near-fatal climbing accident in Alaska, which shattered all of his teeth when he fell 40 feet off a glacier. The fall also saddled Mecke, who didn’t have health insurance, with $90,000 in medical bills.

"It was a humbling experience, but people have to take responsibility for the situations they find themselves in," said Mecke, who worked for Ammiano on arriving in San Francisco and has since worked on the Ammiano, Mirkarimi, and Gonzalez campaigns.

Mecke also helped found the South of Market Community Anti-Displacement Coalition, served as president of the Mental Health Association of San Francisco, and helped author a report on homelessness that led him to publicly debate then-supervisor Newsom over his Care Not Cash initiative.

"Accountability without support is a form of cruelty," Mecke stated in 2002, a belief he still holds as he tries, as a member of the Homeless Shelter Monitoring committee, to get the city to implement universal shelter standards.

"If you raise the quality of life and safety standards in the city’s shelters, then more homeless people will want to enter them," Mecke said.

Mecke, a Western Addition resident, believes in community-driven responses to crime and violence. While Newsom claims that black-on-black violence has decreased under his administration, Mecke counters that African Americans make up only 7 percent of the city population but constitute 60 percent of the homicide victims. He thinks we need a real community policing program.

"We have 10 fiefdoms, 10 police districts," Mecke said. "That means that the oft-touted and talked about idea of community policing doesn’t really exist."

Newsom campaign manager Eric Jaye claims the only thing he knows about Mecke is that "he opposed Care Not Cash and he is supported by Sup. Chris Daly.

"But his own record? That’s a little bit harder," Jaye continued. "Mecke works for a city-funded nonprofit, but ironically, he’s unhappy with the violence prevention work the city is doing. Presumably he’s running because he thinks he can do a better job, but we’re proud of our progress on universal health care, our work on climate protection, our civic efforts, the fact that the eviction rate has plummeted, and that there’s more housing and affordable housing in the pipeline than [under] any other mayor in recent history."

But Mecke points out that the city’s health care initiative was Ammiano’s brainchild and that Newsom failed to deliver on his "wi-fi for all" promise by stubbornly pushing a flawed proposal and refusing to engage with its critics.

"Newsom’s only successes are initiatives proposed and led by members of the Board of Supervisors," said Mecke, who accuses Newsom of "making every decision within the framework of a national model while promoting some future candidacy."

He faults Newsom for asking for mass resignations this fall and sees the fact that Newsom is raising piles of cash to defeat Proposition E, which would require the mayor to make monthly appearances before the Board of Supervisors, as further evidence of his cowardice.

"San Francisco need to demand of this race that there’s public accountability," Mecke said. "Newsom seems to fear any form of nonscripted public interaction. When you go to his fake Question Time–town hall meetings you don’t actually get to ask the mayor your own question. He selects what he wants to hear."

Our three-point plan to save San Francisco

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› news@sfbg.com

Curtis Aaron leaves his house at 9 a.m. and drives to work as a recreation center director for the San Francisco Recreation and Park Department. He tries to leave enough time for the trip; he’s expected on the job at noon.

Aaron lives in Stockton. He moved there with his wife and two kids three years ago because “there was no way I could buy a place in San Francisco, not even close.” His commute takes three hours one way when traffic is bad. He drives by himself in a Honda Accord and spends $400 a month on gas.

Peter works for the city as a programmer and lives in Suisun City, where he moved to buy a house and start a family. Born and raised in San Francisco, he is now single again, with grown-up children and a commute that takes a little more than an hour on a good day.

“I’d love to move back. I love city life, but I want to be a homeowner, and I can’t afford that in the city,” Peter, who asked us not to use his last name, explained. “I work two blocks from where I grew up and my mom’s place, which she sold 20 years ago. Her house is nothing fancy, but it’s going for $1.2 million. There’s no way in hell I could buy that.”

Aaron and Peter aren’t paupers; they have good, unionized city jobs. They’re people who by any normal standard would be considered middle-class — except that they simply can’t afford to live in the city where they work. So they drive long distances every day, burning fossil fuels and wasting thousands of productive hours each year.

Their stories are hardly unique or new; they represent part of the core of the city’s most pressing problem: a lack of affordable housing.

Just about everyone on all sides of the political debate agrees that people like Aaron and Peter ought to be able to live in San Francisco. Keeping people who work here close to their jobs is good for the environment, good for the community, and good for the workers.

“A lack of affordable housing is one of the city’s greatest challenges,” Mayor Gavin Newsom acknowledged in his 2007–08 draft budget.

The mayor’s answer — which at times has the support of environmentalists — is in part to allow private developers to build dense, high-rise condominiums, sold at whatever price the market will bear, with a small percentage set aside for people who are slightly less well-off.

The idea is that downtown housing will appeal to people who work in town, keeping them out of their cars and fighting sprawl. And it assumes that if enough market-rate housing is built, eventually the price will come down. In the meantime, demanding that developers make somewhere around 15 percent of their units available at below-market rates should help people like Aaron and Peter — as well as the people who make far less money, who can never buy even a moderately priced unit, and who are being displaced from this city at an alarming rate. And a modest amount of public money, combined with existing state and federal funding, will make affordable housing available to people at all income levels.

But the facts are clear: this strategy isn’t working — and it never will. If San Francisco has any hope of remaining a city with economic diversity, a city that has artists and writers and families and blue-collar workers and young people and students and so many of those who have made this one of the world’s great cities, we need to completely change how we approach the housing issue.

 

HOMELESS OR $100,000

The housing plans coming out of the Mayor’s Office right now are aimed primarily at two populations: the homeless people who have lost all of their discretionary income due to Newsom’s Care Not Cash initiative, and people earning in the neighborhood of $100,000 a year who can’t afford to buy homes. For some time now, the mayor has been diverting affordable-housing money to cover the unfunded costs of making Care Not Cash functional; at least that money is going to the truly needy.

Now Newsom’s housing director, Matt Franklin, is talking about what he recently told the Planning Commission is a “gaping hole” in the city’s housing market: condominiums that would allow people on the higher end of middle income to become homeowners.

At a hearing Sept. 17, Doug Shoemaker of the Mayor’s Office of Housing told a Board of Supervisors committee that the mayor wants to see more condos in the $400,000 to $600,000 range — which, according to figures presented by Service Employees International Union Local 1021, would be out of the reach of, say, a bus driver, a teacher, or a licensed vocational nurse.

Newsom has put $43 million in affordable-housing money into subsidies for new home buyers in the past year. The Planning Department is looking at the eastern neighborhoods as ground zero for a huge new boom in condos for people who, in government parlance, make between 120 and 150 percent of the region’s median income (which is about $90,000 a year for a family of four).

In total, the eastern neighborhoods proposal would allow about 7,500 to 10,000 new housing units to be added over the next 20 years. Downtown residential development at Rincon Hill and the Transbay Terminal is expected to add 10,000 units to the housing mix, and several thousand more units are planned for Visitacion Valley.

The way (somewhat) affordable housing will be built in the eastern part of town, the theory goes, is by creating incentives to get developers to build lower-cost housing. That means, for example, allowing increases in density — changing zoning codes to let buildings go higher, for example, or eliminating parking requirements to allow more units to be crammed into an available lot. The more units a developer can build on a piece of land, the theory goes, the cheaper those units can be.

But there’s absolutely no empirical evidence that this has ever worked or will ever work, and here’s why: the San Francisco housing market is unlike any other market for anything, anywhere. Demand is essentially insatiable, so there’s no competitive pressure to hold prices down.

“There’s this naive notion that if you reduce costs to the market-rate developers, you’ll reduce the costs of the unit,” Calvin Welch, an affordable-housing activist with more than three decades of experience in housing politics, told the Guardian. “But where has that ever happened?”

In other words, there’s nothing to keep those new condos at rates that even unionized city employees — much less service-industry workers, nonprofit employees, and those living on much lower incomes — can afford.

In the meantime, there’s very little discussion of the impact of increasing density in the nation’s second-densest city. Building housing for tens of thousands of new people means spending hundreds of millions of dollars on parks, recreation centers, schools, police stations, fire stations, and Muni lines for the new neighborhoods — and that’s not even on the Planning Department’s radar. Who’s going to pay for all that? Nothing — nothing — in what the mayor and the planners are discussing in development fees will come close to generating the kind of cash it will take to make the newly dense areas livable.

“The solution we are striving for has not been achieved,” said Chris Durazo, chair of the South of Market Community Action Network, an organizing group. “Should we be looking at the cost to developers to build affordable housing or the cost to the neighborhood to be healthy? We’re looking at the cumulative impacts of policy, ballot measures, and planning and saying it doesn’t add up.”

In fact, Shoemaker testified before the supervisors’ committee that the city is $1.14 billion short of the cash it needs to build the level of affordable housing and community amenities in the eastern neighborhoods that are necessary to meet the city’s own goals.

This is, to put it mildly, a gigantic problem.

 

THE REST OF US

Very little of what is on the mayor’s drawing board is rental housing — and even less is housing available for people whose incomes are well below the regional median, people who earn less than $60,000 a year. That’s a large percentage of San Franciscans.

The situation is dire. Last year the Mayor’s Office of Community Development reported that 16 percent of renters spend more than half of their income on housing costs. And a recent report from the National Low Income Housing Coalition notes that a minimum-wage earner would have to work 120 hours a week, 52 weeks a year, to afford the $1,551 rent on a two-bedroom apartment if they spent the recommended 30 percent of their income on housing.

Ted Gullickson of the San Francisco Tenants Union told us that Ellis Act evictions have decreased in the wake of 2006 Board of Supervisors legislation that bars landlords from converting their property from rentals to condos if they evict senior or disabled tenants.

But the condo market is so profitable that landlords are now offering to buy out their tenants — and are taking affordable, rent-controlled housing off the market at the rate of a couple of hundred units a month.

City studies also confirm that white San Franciscans earn more than twice as much as their Latino and African American counterparts. So it’s hardly surprising that the Bayview–Hunters Point African American community is worried that it will be displaced by the city’s massive redevelopment plan for that area. These fears were reinforced last year, when Lennar Corp., which is developing 1,500 new units at Hunters Point Shipyard, announced it will only build for-sale condos at the site rather than promised rental units. Very few African American residents of Bayview–Hunters Point will ever be able to buy those condos.

Tony Kelly of the Potrero Hill Boosters believes the industrial-zoned land in that area is the city’s last chance to address its affordable-housing crisis. “It’s the biggest single rezoning that the city has ever tried to do. It’s a really huge thing. But it’s also where a lot of development pressure is being put on the city, because the first sale on this land, once it’s rezoned, will be the most profitable.”

Land use attorney Sue Hestor sees the eastern neighborhoods as a test of San Francisco’s real political soul.

“There is no way it can meet housing goals unless a large chunk of land goes for affordable housing, or we’ll export all of our low-income workers,” Hestor said. “We’re not talking about people on welfare, but hotel workers, the tourist industry, even newspaper reporters.

“Is it environmentally sound to export all your workforce so that they face commute patterns that take up to three and four hours a day, then turn around and sell condos to people who commute to San Jose and Santa Clara?”

 

A THREE-POINT PLAN

It’s time to rethink — completely rethink — the way San Francisco addresses the housing crisis. That involves challenging some basic assumptions that have driven housing policy for years — and in some quarters of town, it’s starting to happen.

There are three elements of a new housing strategy emerging, not all from the same people or organizations. It’s still a bit amorphous, but in community meetings, public hearings, blog postings, and private discussions, a program is starting to take shape that might actually alter the political landscape and make it possible for people who aren’t millionaires to rent apartments and even buy homes in this town.

Some of these ideas are ours; most of them come from community leaders. We’ll do our best to give credit where it’s due, but there are dozens of activists who have been participating in these discussions, and what follows is an amalgam, a three-point plan for a new housing policy in San Francisco.

1. Preserve what we have. This is nothing new or terribly radical, but it’s a cornerstone of any effective policy. As Welch points out repeatedly, in a housing crisis the cheapest and most valuable affordable housing is the stuff that already exists.

Every time a landlord or real estate speculator tries to make a fast buck by evicting a tenant from a rent-controlled apartment and turning that apartment into a tenancy in common or a condo, the city’s affordable-housing stock diminishes. And it’s far cheaper to look for ways to prevent that eviction and that conversion than it is to build a new affordable-rental apartment to replace the one the city has lost.

The Tenants Union has been talking about this for years. Quintin Mecke, a community organizer who is running for mayor, is making it a key part of his platform: More city-funded eviction defense. More restrictions on what landlords can do with buildings emptied under the Ellis Act. And ultimately, a statewide strategy to get that law — which allows landlords to clear a building of tenants, then sell it as condos — repealed.

Preserving existing housing also means fighting the kind of displacement that happens when high-end condos are squeezed into low-income neighborhoods (which is happening more and more in the Mission, for example, with the recent approval of a market-rate project at 3400 César Chávez).

And — equally important — it means preserving land.

Part of the battle over the eastern neighborhoods is a struggle for limited parcels of undeveloped or underdeveloped real estate. The market-rate developers have their eyes (and in many cases, their claws) on dozens of sites — and every time one of them is turned over for million-dollar condos, it’s lost as a possible place to construct affordable housing (or to preserve blue-collar jobs).

“Areas that have been bombarded by condos are already lost — their industrial buildings and land are already gone,” Oscar Grande of People Organizing to Demand Environmental and Economic Rights told us.

So when activists (and some members of the Board of Supervisors) talk about slowing down or even stopping the construction of new market-rate housing in the eastern neighborhoods area, it’s not just about preventing the displacement of industry and blue-collar jobs; it’s also about saving existing, very limited, and very valuable space for future affordable housing.

And that means putting much of the eastern neighborhoods land off limits to market-rate housing of any kind.

The city can’t exactly use zoning laws to mandate low rents and low housing prices. But it can place such high demands on developers — for example, a requirement that any new market-rate housing include 50 percent very-low-income affordable units — that the builders of the million-dollar condos will walk away and leave the land for the kind of housing the city actually needs.

2. Find a new, reliable, consistent way to fund affordable housing. Just about everyone, including Newsom, supports the notion of inclusionary housing — that is, requiring developers to make a certain number of units available at lower-than-market rates. In San Francisco right now, that typically runs at around 15 percent, depending on the size of the project; some activists have argued that the number ought to go higher, up to 20 or even 25 percent.

But while inclusionary housing laws are a good thing as far as they go, there’s a fundamental flaw in the theory: if San Francisco is funding affordable housing by taking a small cut of what market-rate developers are building, the end result will be a city where the very rich far outnumber everyone else. Remember, if 15 percent of the units in a new luxury condo tower are going at something resembling an affordable rate, that means 85 percent aren’t — and ultimately, that leads to a population that’s 85 percent millionaire.

The other problem is how you measure and define affordable. That’s typically based on a percentage of the area’s median income — and since San Francisco is lumped in with San Mateo and Marin counties for income statistics, the median is pretty high. For a family of four in San Francisco today, city planning figures show, the median income is close to $90,000 a year.

And since many of these below-market-rate projects are priced to be affordable to people making 80 to 100 percent of the median income, the typical city employee or service-industry worker is left out.

In fact, much of the below-market-rate housing built as part of these projects isn’t exactly affordable to the San Franciscans most desperately in need of housing. Of 1,088 below-market-rate units built in the past few years in the city, Planning Department figures show, just 169 were available to people whose incomes were below half of the median (that is, below $45,000 a year for a family of four or $30,000 a year for a single person).

“A unit can be below market rate and still not affordable to 99 percent of San Franciscans,” Welch noted.

This approach clearly isn’t working.

So activists have been meeting during the past few months to hammer out a different approach, a way to sever affordable-housing funding from the construction of market-rate housing — and to ensure that there’s enough money in the pot to make an actual difference.

It’s a big number. “If we have a billion dollars for affordable housing over the next 15 years, we have a fighting chance,” Sup. Chris Daly told us. “But that’s the kind of money we have to talk about to make any real impact.”

In theory, the mayor and the supervisors can just allocate money from the General Fund for housing — but under Newsom, it’s not happening. In fact, the mayor cut $30 million of affordable-housing money this year.

The centerpiece of what Daly, cosponsoring Sup. Tom Ammiano, and the housing activists are talking about is a charter amendment that would earmark a portion of the city’s annual property-tax collections — somewhere around $30 million — for affordable housing. Most of that would go for what’s known as low- and very-low-income housing — units affordable to people who earn less than half of the median income. The measure would also require that current housing expenditures not be cut — to “lock in everything we’re doing now,” as Daly put it — so that that city would have a baseline of perhaps $60 million a year.

Since the federal government makes matching funds available for many affordable-housing projects, that money could be leveraged into more than $1 billion.

Of course, setting aside $30 million for affordable housing means less money for other city programs, so activists are also looking at ways to pay for it. One obvious option is to rewrite the city’s business-tax laws, replacing some or all of the current payroll tax money with a tax on gross receipts. That tax would exempt all companies with less than $2 million a year in revenue — the vast majority of the small businesses in town — and would be skewed to tax the bigger businesses at a higher rate.

Daly’s measure is likely headed for the November 2008 ballot.

The other funding option that’s being discussed in some circles — including the Mayor’s Office of Housing — is complicated but makes a tremendous amount of sense. Redevelopment agencies now have the legal right to sell revenue bonds and to collect income based on so-called tax increments — that is, the increased property-tax collections that come from a newly developed area. With a modest change in state law, the city should be able to do that too — to in effect capture the increased property taxes from new development in, say, the Mission and use that money entirely to build affordable housing in the neighborhood.

That, again, is a big pot of cash — potentially tens of millions of dollars a year. Assemblymember Mark Leno (D–San Francisco) told us he’s been researching the issue and is prepared to author state legislation if necessary to give the city the right to use tax-increment financing anywhere in town. “With a steady revenue stream, you can issue revenue bonds and get housing money up front,” he said.

That’s something redevelopment agencies can do, and it’s a powerful tool: revenue bonds don’t have to go to the voters and are an easy way to raise money for big projects — like an ambitious affordable-housing development program.

Somewhere, between all of these different approaches, the city needs to find a regular, steady source for a large sum of money to build housing for people who currently work in San Francisco. If we want a healthy, diverse, functioning city, it’s not a choice any more; it’s a mandate.

3. A Proposition M for housing. One of the most interesting and far-reaching ideas we’ve heard in the past year comes from Marc Salomon, a Green Party activist and policy wonk who has done extensive research into the local housing market. It may be the key to the city’s future.

In March, Salomon did something that the Planning Department should have done years ago: he took a list of all of the housing developments that had opened in the South of Market area in the past 10 years and compared it to the Department of Elections’ master voter files for 2002 and 2006. His conclusion: fully two-thirds of the people moving into the new housing were from out of town. The numbers, he said, “indicate that the city is pursuing the exact opposite priorities and policies of what the Housing Element of the General Plan calls for in planning for new residential construction.”

That confirms what we found more than a year earlier when we knocked on doors and interviewed residents of the new condo complexes (“A Streetcar Named Displacement,” 10/19/05). The people for whom San Francisco is building housing are overwhelmingly young, rich, white commuters who work in Silicon Valley. Or they’re older, rich empty nesters who are moving back to the city from the suburbs. They aren’t people who work in San Francisco, and they certainly aren’t representative of the diversity of the city’s population and workforce.

Welch calls it “socially psychotic” planning.

Twenty-five years ago, the city was doing equally psychotic planning for commercial development, allowing the construction of millions of square feet of high-rise office space that was overburdening city services, costing taxpayers a fortune, creating congestion, driving up residential rents, and turning downtown streets into dark corridors. Progressives put a measure on the November 1986 ballot — Proposition M — that turned the high-rise boom on its head: from then on, developers had to prove that their buildings would meet a real need in the city. It also set a strict cap on new development and forced project sponsors to compete in a “beauty contest” — and only the projects that offered something worthwhile to San Francisco could be approved.

That, Salomon argues, is exactly how the city needs to approach housing in 2007.

He’s been circuutf8g a proposal that would set clear priority policies for new housing. It starts with a finding that is entirely consistent with economic reality: “Housing prices [in San Francisco] cannot be lowered by expanding the supply of market-rate housing.”

It continues, “San Francisco values must guide housing policy. The vast majority of housing produced must be affordable to the vast majority of current residents. New housing must be economically compatible with the neighborhood. The most needy — homeless, very low income people, disabled people, people with AIDS, seniors, and families — must be prioritized in housing production. … [and] market-rate housing can be produced only as the required number of affordable units are produced.”

The proposal would limit the height of all new housing to about six stories and would “encourage limited-equity, permanently affordable homeownership opportunities.”

Salomon suggests that San Francisco limit the amount of new market-rate housing to 250,000 square feet a year — probably about 200 to 400 units — and that the developers “must produce aggressive, competitive community benefit packages that must be used by the Planning Commission as a beauty contest, with mandatory approval by the Board of Supervisors.” (You can read his entire proposal at www.sfbg.com/newpropm.doc.)

There are all kinds of details that need to be worked out, but at base this is a brilliant idea; it could be combined with the new financing plans to shift the production of housing away from the very rich and toward a mix that will preserve San Francisco as a city of artists, writers, working-class people, creative thinkers, and refugees from narrow-minded communities all over, people who want to live and work and make friends and make art and raise families and be part of a community that has always been one of a kind, a rare place in the world.

There is still a way to save San Francisco — but we’re running out of time. And we can’t afford to pursue moderate, incremental plans. This city needs a massive new effort to change the way housing is built, rented, and sold — and we have to start now, today.* To see what the Planning Department has in the pipeline, visit www.sfgov.org/site/planning_index.asp?id=58508. To see what is planned for the eastern neighborhoods, check out www.sfgov.org/site/planning_index.asp?id=67762.

Editor’s Notes

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› tredmond@sfbg.com

Allow me to postulate a few axioms that will help define the way we think about housing in San Francisco and put our cover story this week in context. Some of these laws are easily provable with existing data; the others, I admit, are loaded with political values. So be it.

Axiom number one: There are already too many rich people in San Francisco.

Socioeconomic diversity is essential to a healthy urban environment. Cities of the very rich (and typically, the very poor) are not good places to live; they become tourist destinations where a fake veneer of urbanism is pasted over a place with no real soul.

San Francisco is rapidly heading down that path — and the first and by far most important reason is the cost of housing.

Axiom number two: Private for-profit developers can never build us out of this housing crisis.

The housing market in San Francisco does not behave according to any of the rational rules you learn in Economics 101. This is an international city, a place with a global housing constituency. Demand for high-end condos in San Francisco is, for all practical purposes, unlimited and insatiable. You could build 50,000, 100,000 high-rise apartments, and the prices still wouldn’t come down to a level that would be affordable for most working-class San Franciscans.

Axiom number three: Any sane housing policy has to start with the acceptance of axiom number two.

Building more market-rate housing does nothing, nothing, nothing for the current crisis. There is no lack of housing options for the very rich in this town. The problem is housing for everyone else.

Axiom number four: When you have an irrational market for a basic necessity, the only way to make that market function is with strict regulation and aggressive government intervention.

Axiom number five: Increased density is not a positive environmental policy unless axiom number four is operative.

Building high-rises in which the housing is priced out of range of the people who actually work in San Francisco — and doesn’t offer the size and affordability the local workforce needs — does nothing to fight sprawl or build community. It just creates tall rich ghettos. (See axiom number one.)

Axiom number six: This city is running out of time.

There are virtually zero affordable apartments in this city for the people who make up the heart of San Francisco. We’re doing ecological damage by driving them out of town (and forcing them to drive back, in cars). We’re doing social damage by shattering communities (through evictions and displacement). And all we’re offering is modest tidbits of real planning (a few slightly more affordable units here and there for every 100 we give to the rich).

My conclusion, as we lay out in this week’s cover story, is that San Francisco has to turn its planning and housing policy upside down, to start treating housing as a necessity (as we’re doing with health care) and not something to be played with by speculators on the financial markets (look how well that worked with subprime mortgages) or an amenity for Silicon Valley commuters who would rather have a playground here than live closer to work.

Instead of zoning for developers, the city needs to do something really bold and say: This is the housing we want, the only housing we want — and then find a way to build it, with or without the private sector. As the axiom slingers say, quod erat demonstrandum.*

Editor’s Notes

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› tredmond@sfbg.com

I was talking the other day to the mayor’s chief political advisor, Eric Jaye, who thinks we should endorse his client for reelection. "Gavin Newsom," he told me, "is the most progressive mayor in San Francisco history."

Well, I haven’t been here for all of them, but in my 25 years or so, the competition hasn’t been terribly stiff. Newsom vs. Dianne Feinstein? That’s a no-brainer. Newsom vs. Frank Jordan? Uh, what was the question again? Newsom vs. Willie Brown? Things are pretty bad now, but I never want to go through another era like the Brown years again.

Newsom vs. Art Agnos? Well, Agnos had a lot of potential and did some good stuff, but he also sold the city out to Pacific Gas and Electric Co. and became such an arrogant jerk that he alienated a lot of his allies and nobody could work with him anymore.

So on one level, Jaye has a point: we’ve had some pretty rotten characters in room 200 at City Hall, and his guy isn’t by any means the worst.

But I keep coming back to my basic complaint: what has Newsom actually done about the crucial issues facing the city? Where is the leadership?

A few days earlier, I’d had lunch with Jack Davis, the gleefully notorious political consultant, and we got to talking about housing and rent control, which I’ve always strongly promoted and Davis’s landlord clients have always bitterly opposed. And we realized, two old opponents, that on one level that battle is over: it was lost years ago, when San Francisco failed (and then the state preempted our ability) to regulate rents on vacant apartments. The wave of Ellis Act evictions has damaged the situation even more. The limited rent control in San Francisco today can’t possibly keep housing even remotely affordable. The only way to fix the problem would be to roll back all rents to their levels of about 15 years ago; anyone (besides me) want to take on that campaign?

So what, Davis asked, would I do about it?

Since Newsom is going to be reelected this fall anyway, let me suggest how he could live up to Jaye’s billing.

Imagine if the mayor of San Francisco called a meeting of all the key players in the local housing market — the residential builders, the big developers, the nonprofits, the tenant activists, the Mission Anti-Displacement Coalition folks, the Board of Supervisors president, the neighborhood groups — and said something like this:

"San Francisco needs about 15,000 new affordable-housing units in the next five years. That’s housing for low-income people, housing for people who work in San Francisco … family housing, rental housing, land-trust housing, supportive housing, a mix of units at a mix of prices, but none of it out of the reach of blue-collar and service-industry workers.

"So here’s the deal: you people sit here and figure out a way to make it happen, including how to pay for it — and until you do, not one new market-rate project will get approved by my Planning Commission."

You suppose we might get a little action here? You think the developers who see a gold rush in the San Francisco housing market might be willing to play ball? You think that the mayor might show leadership on the most pressing problem facing residents and businesses in this town, the most serious drain on the local economy? It sure wouldn’t hurt to try.

Paging Dr. Sumchai

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› sarah@sfbg.com

If mayoral candidate Ahimsa Porter Sumchai were a superhero, she’d be Rescue Girl, her petite athletic form encased in a silver jumpsuit and cape as she swooped in, using her understanding of complicated medical and scientific issues as her secret weapon, to save high-risk communities from environmental racism, economic disenfranchisement, and social displacement.

Instead, she’s the candidate who claims to be thankful her name was excluded from the San Francisco Chronicle‘s Aug. 11 coverage of the mayor’s race, in which Gavin Newsom’s challengers were dissed as a peanut gallery of lunatics.

"I’m glad the Chronicle did not disrespect me in the context of ‘a chicken, a wolf, and a grasshopper’-style jokes, like the race is a big laugh," says Sumchai, 55, as I pick her up at the corner of Third Street and Palau Avenue, which lies a stone’s throw from Sumchai’s campaign headquarters in the heart of Bayview–<\d>Hunters Point and a five-minute drive from the Environmental Protection Agency’s Superfund site at the Hunters Point Shipyard.

This intersection was the main drag for Navy operations when the shipyard was active, Sumchai explains as we pass rows of tightly packed houses and a sprinkling of churches — including Grace Tabernacle Church, which has recently become a rallying point for hundreds of residents concerned about exposure to toxic asbestos dust at Lennar Corp.’s Parcel A redevelopment work site at the shipyard.

Sumchai has made that exposure a central focus of her campaign.

"When I become mayor, Lennar will shut down at Parcel A, and I will establish a plan that includes a human safety component and testing of potentially exposed residents," says Sumchai, who also opposes what she calls "the dirty transfer of the shipyard," through which Newsom has proposed folding Candlestick Point into the shipyard so he can build a stadium for the 49ers — and Lennar can build 6,500 more condos at Candlestick.

Sumchai, whose grandparents came from St. Louis in 1939 and whose father was exposed to asbestos when he worked as a shipping clerk at the shipyard, is an academic success story, emerging from the Sunnydale housing project to graduate from UC San Francisco medical school in 1982.

But while Sumchai is incredibly bright, her eggheadedness sometimes seems to get in the way of letting her make concise, down-to-earth statements. Instead, she often comes across as if she spent too much time in the library, a trait that can leave audiences who don’t have science degrees utterly baffled and uncertain as to what point she just tried to make.

And while the odds are clearly stacked against her in the mayor’s race, Sumchai is using her candidacy to ask tough questions on behalf of a community that is beginning to rally for environmental justice after decades of exposure to pollution from two power plants, two freeways, the shipyard, and a sewage plant that impacts five percent of the city’s population with the smell of treating 80 percent of the city’s solid waste.

"To continue with activities that are harmful challenges the fundamental ethics of being a physician, says Sumchai, who practiced emergency medicine for 20 years.

It’s an experience that informs her current crusade to halt Lennar’s construction on Parcel A at the shipyard. The community’s exposure to dust adds up to "an epidemic," she says.

"It gets on their clothing. It’s airborne. And then there’s the geographic proximity to the site of exposure," Sumchai explains, gesturing to the schools, residences, and neighborhoods that lie downwind of Lennar’s site.

From Monster Park, we take the freeway, exiting at Sunnydale, where Sumchai’s family moved when she was seven.

"When we talk about ‘affordable housing,’ what we really mean is affordable to people making $80,000, while people making $12,000 to $20,000, which is the real average median income in the Bayview, have nowhere to go," Sumchai says. She argues that developers on city-owned land should be required to offer 30 percent to 45 percent of their units at prices affordable to very low-income residents.

Crime is another issue that’s important to the candidate. Sumchai, who used to take the bus from Sunnydale to the Lutheran church on Palau and still uses public transit three times a day, says the gangs she saw then had low-velocity weapons and knives, while today they potentially have access to access military assault weapons.

"The lethality of the gang activity has become enormously problematic," she says, noting that the likelihood of getting enmeshed in the criminal justice system lessens for kids involved in after-school activities more than two times a week.

Sumchai has never lived the posh, comfortable life that is often associated in the public mind with successful physicians. In fact, she’s had to be rescued herself from "critical stressors, major traumas [that] could have led me down a path that was not so productive."

In 1999, she had to surrender her medical license. As California Medical Board records tell it, a series of personal catastrophes hit, and Sumchai was diagnosed with post-traumatic stress disorder after she experienced insomnia, anxiety, emotional upwellings, and re-experienced traumatic moments "when threatened-stressed or exposed to reminders of her graphic experiences as a emergency trauma physician." These upwellings became "explosive outbursts of anger and paranoia" and contributed to Sumchai’s problems, according to her records, which indicate that she received a 116-day stint in county jail, three years’ probation, and a $200 fine for resisting arrest.

Claiming that she did not receive the medical care she needed when she was imprisoned, Sumchai says, "I have as a physician been to the mountaintop and also to the bottom of the pit in terms of my experiences of how the sick, disabled, homeless, and mentally ill are looked upon and treated."

Crediting the influences of key mentors "who had the courage to intervene and bring in resources and moral compasses," Sumchai says her medical license was reinstated in December 2005, but she has no interest or intention of returning to work in emergency or trauma operations. Today she works as a personal trainer, a sports nutrition consultant, and a fitness industry administrator in between writing for the San Francisco Bay View, meditating, doing Pilates exercises, and running for mayor.

And she’s still constantly in fights — even with her friends. Joe O’Donoghue, the fiery former head of the Residential Builders Association, hired her as a personal trainer and told her earlier this year — in confidence, he insisted to us — that former superintendent Matt Gonzalez was getting ready to enter the mayor’s race. The moment she left the gym, Sumchai called Gonzalez — and O’Donoghue promptly fired her.

For now, Sumchai is setting her sights on bringing about change by debating issues that otherwise aren’t being voiced on behalf of folks whose needs and concerns are being neglected.

Editor’s note: The original version of this story failed to note that Sumchai is a practicing physician as well as a personal trainer and nutrition consultant. She has an active medical practice in West Portal.

Editor’s Notes

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› tredmond@sfbg.com

You’d think that this was a Republican town, with the way the local news media have been bashing not only the left but also some of the better, more effective, and more functional progressive institutions in San Francisco. I wouldn’t waste my time with this stuff, but there are real issues here.

I woke up Aug. 21 to a San Francisco Chronicle headline proclaiming "Anti-gentrification Forces Stymie Housing Development." The piece, by Robert Selna, opened with the sad, sad tale of a poor auto shop owner who wants to "build eight apartments and condominiums on an empty lot next to his Mission District auto shop and rent some of the apartments to his mechanics."

Well, it turns out that the evil Mission Anti-Displacement Coalition is fighting that plan, Selna reported, "insisting that [the] project not go forward until the city evaluates how new development on the city’s east side will affect industrial land, jobs, and housing."

The message: a little entrepreneur is getting hosed by a big, bad "not in my backyard" group that wants to stop new housing. The implication (and this is just the latest example of this stunning lie): the left in San Francisco is against building housing.

Well, for starters, MAC is playing only a modest sideline role in fighting the 736 Valencia project, a five-story structure that is designated legally for condos and includes no affordable housing. The real opposition is a group called Valencia Neighbors for Community Development. The issue, Valencia neighborhood activist Julie Ledbetter said, is that as many as nine new market-rate housing projects are in the pipeline for a short stretch of Valencia, and they shouldn’t be approved one by one without any regard for the cumulative impact.

MAC activist Eric Quezada told me that the organization has indeed taken the position that the city shouldn’t go forward with any more market-rate housing projects until it’s completed a legally mandated environmental study of the cumulative impacts of high-end condos on displacement, blue-collar jobs, and overall land use.

But that doesn’t mean MAC is against housing.

In fact — and this is the killer here — MAC emerged in the dot-com era almost entirely out of the nonprofit housing community. Some of its earliest and most prominent members were (gasp) housing developers. Just for the record, nonprofits have built something like 25,000 low- and moderate-income housing units in this city in the past 25 years. That is housing the city needs, housing that meets the city’s own clearly stated goals. And the progressives, people like the MAC members, are essentially the only ones who have built any affordable housing in the city at all.

Selna told me that he didn’t write the headline and "isn’t taking sides in this." I realize it’s not all his fault that he’s stumbled into a political hornet’s nest — but he has.

Then in the Aug. 22 SF Weekly, Matt Smith wrote that the left is turning this city into nothing but a tourist trap by promoting "a price-goosing apartment shortage of 30,000 to 70,000 units." That’s what, 140 giant new towers, or 7,000 10-unit buildings … that will go where? And what if (as is likely) rents still don’t come down? (Smith had no comment when I called him.)

And now C.W. Nevius of the Chronicle wants to shut down the Haight Ashbury Neighborhood Council Recycling Center so that homeless people won’t have any money … and will what — panhandle more aggressively? Break into cars? Makes perfect sense to me.

Redevelopment’s new face

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› sarah@sfbg.com

City Hall’s cavernous marble corridors echoed Aug. 14 with the footsteps of a band of sharply dressed African Americans, many of them ministers and all of them come to voice support for Fred Blackwell’s appointment as executive director of the San Francisco Redevelopment Agency.

Blackwell, who has a master’s degree in city planning from UC Berkeley and has been working for the Mayor’s Office of Community Development since 2005, most recently as director, won’t be the first African American to occupy the agency’s top post.

But Mayor Gavin Newsom’s decision to nominate Blackwell was seen by many as a hopeful sign that the agency might proactively address problems that have torn apart the Bayview–<\d>Hunters Point community in the past year and continue to dog the agency in the Western Addition.

These concerns include the suspicion that Newsom’s plan to fold Candlestick Point into the already controversial Hunters Point Shipyard redevelopment project is less about wooing the 49ers to stay and more about jumping into bed with Lennar Corp., a deep-pocketed and politically connected development company (see "The Corporation That Ate San Francisco," 3/14/07).

The deal gives Lennar the right to develop 6,500 new housing units and take over the cleanup of Hunters Point Shipyard — a move mayoral candidate Dr. Ahimsa Porter Sumchai described as "the dirty transfer of the shipyard" (see "And They’re Off," 8/15/07).

A growing body of Bayview–<\d>Hunters Point residents has asked the city to temporarily shut down construction at the shipyard’s Parcel A because of concerns about the toxic dust being kicked up (see "Dust Devils," 8/1/07).

And then there’s lingering ill will from the 1960s, when redevelopment caused the massive displacement of African Americans from the Western Addition.

So will Blackwell be able to solve the agency’s deep-rooted problems? Newsom described Blackwell as "an outstanding choice" when nominating him Aug. 10, while agency commission president Rich Peterson called Blackwell "smart, of high integrity, well known by community leaders, and familiar with the unique opportunities as well as important lessons learned of redevelopment in the city."

But while commissioner Francee Covington declared that "a new day is dawning at the agency" shortly before the commission voted 7–<\d>0 to appoint Blackwell, the African American community still has its concerns.

Minister Christopher Muhammad, who has led the voicing of concerns about the Parcel A dust, was proud to see an African American in a position of leadership. "But we are still going to hold your feet to the fire," he said. "Redevelopment is not just about the redevelopment of physical structures but [also] about the redevelopment of human beings."

Noting that Blackwell is a 1991 graduate of Morehouse College, Rev. Amos Brown said, "I find no fault in this man, and you will not find any either in terms of fitness for this office," while local resident Randall Evans voiced his belief that "the only folks gonna take care of black people’s business are black folks."

Activist-journalist Ace Washington observed that Blackwell is "coming into a very hot seat. He needs some ice cubes to sit down. Only time will tell if he stands by his convictions. It doesn’t matter if the director is black, Latino, Asian, or white. All of us here are saying, ‘Ah, a breath of fresh air.’<\!s>"

Rev. Arnold Townsend said, "We trust the resources are there to help community — and not to tell the community what to do. Because until that dynamic changes, it won’t matter who is executive director."

Blackwell conceded that he had misgivings about heading an agency founded in 1948 to remove blight, a mission that many say has been tainted by racism since its inception. "I admit I was not leaping and jumping when my name first surfaced, but I look forward to working with you all," Blackwell told the commission.

Blackwell later told the Guardian he hopes "to foster a sense of equity and opportunity and a broader vision of community development."

"The legacy of redevelopment and urban renewal is not a good one," he said. "The residue is still there, but trust is only built through action."

Describing the Western Addition and Bayview–<\d>Hunters Point as "two bookends in terms of redevelopment," Blackwell said he hopes "to close out the agency’s relationship with the Western Addition and make sure responsibility is transferred seamlessly to the appropriate agencies."

As for Bayview–<\d>Hunters Point, "we should take stock of what we should and should not do, get on the right track, and create opportunities for people who live there," he said.

But Sumchai wants to put the agency under the control of the Board of Supervisors: "You could appoint Jesus of Nazareth and still have problems as long as the agency is locked into its current structure."

Sup. Ross Mirkarimi says putting an African American at the head of the Redevelopment Agency "makes a lot of sense, considering the egregious and negative impact the agency has had on the African American community…. But no matter how well-liked Fred Blackwell is, that does not compensate for the deficiencies of the Redevelopment Agency’s aims and competence."<\!s>*

A clear housing choice in the Mission

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OPINION On April 19 the San Francisco Planning Department approved a market-rate condo development with a 24-hour Walgreens store at the northwest corner of César Chávez and Mission. The project features 60 expensive ownership units and 67 residential parking spaces. To support the Walgreens, the developer is also including 24 customer parking spaces, 12 spaces for employees, and one car-share space.

The development as proposed is not in compliance with the city’s General Plan, the recent Eastern Neighborhoods planning requirements, or the January Board of Supervisors resolution calling for 64 percent of all new housing to be available at below-market rates — and there’s an alternative that offers true low-income family housing and community space. If the supervisors are serious about preserving affordable housing, they’ll reject this ill-conceived plan.

The developer, Seven Hills Properties, told the Planning Commission that families would be able to afford these simple, unadorned condos through the first-time home buyers services offered by the Down Payment Assistance Loan Program in the Mayor’s Office of Housing. The truth is that the developer is offering only nine below-market units affordable to working- and middle-class families. All of the other units will be priced at close to $550,000 for a studio and as much as $700,000 for a three-bedroom unit.

Think about those prices. A person or family making as much as $63,850 a year could qualify for the down-payment assistance. Such a person or family would have to come up with a $27,500 share of the down payment and would be paying about $3,000 a month for a mortgage — 55 percent of their income.

It doesn’t have to be this way. Back in December 2006, Seven Hills told the Mission Anti-Displacement Coalition that it would be interested in selling the development rights at the site to MAC if MAC could come up with a development proposal. MAC then worked with us at the Bernal Heights Neighborhood Center, and together we created a viable offer — which Seven Hills dismissed as unrealistic.

Our proposal was to develop between 60 and 70 units of affordable housing, with community-service space below. Across the street, in 2001, the BHNC opened its Bernal Gateway development, 55 affordable family units with on-site community services that subsequently won two highly coveted national awards, with a financing strategy similar to the one we suggested for the Seven Hills property.

MAC has appealed to the Board of Supervisors, which is scheduled to hear its appeal July 17. This is a neighborhood issue that has citywide implications.

The arguments couldn’t be more clear or compelling: The project doesn’t comply with the Planning Department’s own guidelines. It brings pricey housing and a chain store to a neighborhood that needs neither. And there’s a credible alternative that ought to be given a chance. *

Joseph Smooke

Joseph Smooke is the executive director of the Bernal Heights Neighborhood Center. If you are interested in this issue, please contact Jane Martin, BHNC community organizer, at jmartin@bhnc.org.

There’s no place like home

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> a&eletters@sfbg.com

In his recent book Poor People, William T. Vollmann writes, "For me, poverty is not mere deprivation; for people may possess fewer things than I and be richer; poverty is wretchedness. It must then be an experience more than an economic state. It therefore remains somewhat immeasurable." Despite the enormity of such a disclaimer, Vollmann attempts to calibrate a calculus of misery. Portuguese director Pedro Costa seems motivated by a similarly conflicted impetus. Over the past decade, Costa has made a trilogy of films with the working poor of Fontainhas, a sprawling slum outside Lisbon. Trading Vollmann’s pained self-consciousness for a meticulous formalism that favors rehearsal over reportage, Costa’s remove sets into relief the humanity of his subjects, rather than objectifying or patronizing them.

Many of Fontainhas’s residents are of Cape Verdean descent. That country’s wretched history – as an exploited colony and the center of the Portuguese slave trade – looms large in the collective memory of Fontainhas, as if stained into the walls of its dilapidated tenements and etched across the beaten visages of its inhabitants. It is a legacy of continual disenfranchisement, displacement, and enforced invisibility, which tentatively approaches a terminus with the trilogy’s final installment, Colossal Youth.

Whittled down from roughly 300 hours of footage to just over two, Colossal Youth is a desultory, snail-paced compilation of everyday interactions and fragmentary conversations that skirts the edges of documentary. Costa’s long, static shots mirror the rhythms of the characters’ daily lives – getting high (or taking drugs to get off drugs), scavenging, day laboring, and speaking in perpetuum of possibilities that will forever remain unfulfilled. It is an existence made all the more precarious by the fact that Fontainhas is being razed and its inhabitants relocated to a new, antiseptic public housing complex that’s even farther removed from Lisbon, a process that was happening as Costa filmed.

At the center of this dispossessed community is Ventura, a retired laborer who, like many of Costa’s leads, is presumably playing a variation of himself. Recently abandoned by his wife – an event that forms Colossal Youth‘s haunting, elliptical two-shot prologue – Ventura spends the rest of the film alternately airing his grief and acting as a father figure to a succession of interlopers: old neighborhood friends, former colleagues, acquaintances, and extended family members both biological and adopted.

These include Vanda, a recovering drug addict (the titular character of Costa’s 2000 film, In Vanda’s Room) who ambivalently calls Ventura "Papa" and awkwardly approaches her new role as mother with a fidgety uncertainty; an estranged daughter still living amid the rubble of Fontainhas; a government housing agent equally amused and annoyed by Ventura’s vague requirements for his new home (when asked how many children will be accompanying him, Ventura replies, "I don’t know yet"); and an illiterate migrant worker who enlists Ventura to write a letter to his beloved, which he continually recites as though it were scripture.

With his shock of gray hair, threadbare suit, and stoic gaze that seems perpetually transfixed by something beyond our vantage point, Ventura shuffles between the crepuscular ruins of Fontainhas and the blindingly white interiors of his future residence like an ineffectual ghost, reluctant to admit that he has to some extent become a spectral remainder of the very past that haunts him.

Costa’s architectonic framing of Ventura – which favors low angles and makes startling use of the play of natural light across the film’s many mottled surfaces – no less contributes to this impression. Costa fully exploits digital video’s ability to capture extremes of contrast, flattening exterior landscapes and the people within them into intersecting planes of light and shadow and discovering new inky variegations of black within the darkest of interiors. Some of the film’s most stunning moments come when Costa lets more vivid hues intrude on the mostly washed-out palette of sickly greens and dirtied off-whites, as in a scene in which Ventura seeks a moment of respite amid the cloistered cool of a gallery hung with the paintings of Spanish old master Diego Velazquez.

Colossal Youth is at times as interminable (Vanda’s extensive improvised monologue about giving birth) as it is bleak and oblique. Above all, though, it is brave. Although the word might seem odd, I put it out there not simply because Costa’s film so flagrantly tests the patience of its audience (since its divisive premiere at Cannes last year, walkouts have become a routine part of its screenings) but because it never solicits our pity or invites our disapproval of the people whose lives it so doggedly follows.

For Costa, the aesthetic’s promise of succor – whether found in the rough-hewn lines of a love poem that will never reach its intended addressee, the supposedly democratized space of a museum, or that other dimly lit image reservoir, the movie theater, in which we yearn to be relieved of ourselves – is an illusion, which, however sustaining, can never be made good on.

There is simply no rest for the weary or for the filmmaker who trails alongside them. On the razed grounds of a home that was never really one to begin with, Costa clears a place for the impoverished to testify about their lives. It is a space that, as Vollmann’s problematic volume attests, can perhaps only be realized on film – an expanded freeze-frame on the pause between the two halves of Samuel Beckett’s famous couplet: "I can’t go on, I’ll go on." *

COLOSSAL YOUTH (Pedro Costa, Portugal/France/Switzerland) Sat/28, 1:15 p.m., Kabuki. Also Tues/1, 3:15 p.m., Kabuki; May 5, 8:15 p.m., PFA

green, and affordable

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By Tim Redmond

Casey Mills, the former managing editor of BeyondChron, has a great piece today that explains how too much of the “new urbanism” fails to consider affordable housing:

A disturbing trend already underway involves sustainability and ‘green’ advocates aligning with developers to promote density above all other considerations. Requiring developers to contribute towards affordable housing, for example, simply represents a roadblock to the more important overall goal – brining more housing downtown. If affordable housing becomes viewed as a necessary component of sustainability, not a roadblock to it, this sort of alliance would be impossible to maintain.

He’s right: as market-rate housing in urban centers drives out poor people (and it does, always), those people have to live further and further from work. Since there will always be a need for less-well-paid service workers (not to mention the likes of bus drivers and teachers, who can’t possibly afford any of the new housing we’re building) in cities, gentrification and displacement are significant causes of sprawl.

And yet San Franicsco continues to build housing for people who don’t live here (or even work here), driving out the people who do work here and promoting exactly the kind of sprawl everyone at City Hall is officially against. Insane.

Truth about the eastern neighborhoods

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EDITORIAL The next battle for San Francisco’s future will be fought in significant part in what the Planning Department calls the eastern neighborhoods — South of Market, the central waterfront, the Mission District, Potrero Hill, and Showplace Square. That’s where planners want to see some 29,000 new housing units built, along with offices and laboratories for the emerging biotech industry that’s projected to grow on the outskirts of the UCSF Mission Bay campus.

On March 28 the Planning Department released the final draft of a socioeconomic impact study of the area, which, with 1,500 acres of potentially developable land, is one of San Francisco’s last frontiers.

For a $50,000 report, the study doesn’t really say much. It puts an overall rosy glow on a zoning plan that will lead to widespread displacement of blue-collar jobs and dramatically increased gentrification. And it fails to answer what ought to be the fundamental questions of anything calling itself a socioeconomic study.

But within the 197-page document are some stunning facts that ought to give neighborhood activists (and the San Francisco supervisors) reason to doubt the entire rezoning package.

On one level it’s hard to blame Linda Hausrath, the Oakland economist who did the study: the premise was flawed from the start. The study considers only two possibilities — either the eastern neighborhoods will be left with no new zoning at all or the Planning Department’s zoning proposal will be implemented. Her conclusion, not surprisingly, is that the official city plan offers a lot of benefits. That’s hard to argue: the current zoning for the area is a mess, and much of the most desirable land is wide open for all sorts of undesirable uses.

But there are many, many ways to look at the future of the eastern neighborhoods beyond what the Planning Department has offered. Neighborhood activists in Potrero Hill have their own alternatives; so do the folks in the Mission and South of Market. There are a lot of ways to conceive of this giant piece of urban land — and many of them start and end with different priorities than those of the Planning Department.

Two key issues dominate the report — housing and employment in what’s known as production, distribution, and repair, or PDR, facilities. PDR jobs are among the final remaining types of employment in San Francisco that pay a decent wage and don’t require a college degree. The city had 95,000 of these as of 2000 (the most recent data that the study looks at), and 32,000 of them were in the eastern neighborhoods.

Almost everyone agrees that PDR jobs are a crucial part of the city’s economic mix and that without them a significant segment of the city’s population will be displaced. "There are two ways to drive people out of San Francisco," housing activist Calvin Welch says. "You can eliminate their housing or eliminate their jobs."

The city’s rezoning plan seeks to protect some PDR uses in a few parts of the eastern neighborhoods. But many of the areas where the warehouses, light industrial outfits, and similar businesses operate will be zoned to allow market-rate housing — and that will be the end of the blue-collar jobs.

When you build market-rate housing in industrial areas, the industry is forced out. That’s already been proved in San Francisco; just remember what happened in South of Market during the dot-com and live-work boom. When wealthy people move into homes near PDR businesses, they immediately start to complain: those businesses are often loud; trucks arrive at all hours of the day and night. City officials get pestered by angry new homeowners — and at the same time, the price of real estate goes up. The PDR businesses are shut down or bought out — and replaced with more luxury condos.

Thousands of PDR jobs have disappeared since the 2000 census, the result of the dot-com boom. And even the Hausrath report acknowledges that 4,000 more PDR jobs will be lost from the eastern neighborhoods under the city’s plan. That’s more than would be lost without any rezoning at all.

The vast majority — more than 70 percent, the report shows — of people who work in PDR jobs in San Francisco also live in San Francisco. Many are immigrants and people of color. A significant percentage live in Bayview–Hunters Point, where the unemployment rate among African Americans is a civic disgrace. What will happen to those workers? What will happen to their families? Where will they go when the jobs disappear? There’s nothing in the report that addresses these questions — although they reflect one of the most important socioeconomic impacts of the looming changes in the region.

Then there’s affordable housing.

According to the city’s reports and projections, two-thirds of all the new housing that is built in the city ought to be available below the market rate. That’s because none of the people who are now being driven from San Francisco by high housing costs — families, small-business people working-class renters, people on fixed incomes — can possibly afford market-rate units. In fact, as we reported last week ("The Big Housing Lie," 3/28/07), the new housing that’s being built in San Francisco does very little to help current residents, which is why more than 65 percent of the people who are buying those units are coming here from out of town.

San Francisco is one of the world’s great cities, but it isn’t very big — 49 square miles — and most of the land is already developed. The 1,500 developable acres in the eastern neighborhoods are among the last bits of land that can be used for affordable housing. And in fact, that’s where 60 percent of the below-market housing built in the city in the past few years has been located.

But every market-rate project that’s built — and there are a lot of them on the drawing board — takes away a potential affordable housing site and thus makes it less possible for the city to come close to meeting its goals. The Hausrath report completely ignores that fact.

Overall, the report — which reflects the sensibilities of the Planning Department — accepts the premise that the best use of much of the eastern neighborhoods is for high-end condos. Building that housing, the report notes, "would provide a relief valve" to offset pressures on the market for existing housing.

But that’s directly at odds with the available facts. The San Francisco housing market has never fit in with a traditional supply-and-demand model, and today it’s totally out of whack. Market-rate housing in this city has come to resemble freeways and prisons: the more you build, the more demand it creates — and the construction boom does nothing to alleviate the original problem.

The new condos in San Francisco are being snapped up by real estate speculators, wealthy empty nesters, very rich people (and companies) who want local pieds-à-terre, and highly paid tech workers who have jobs on the Peninsula. Meanwhile, families are fleeing the city in droves. The African American community is being decimated. Artists, writers, musicians, unconventional thinkers — the people who are the heart of San Francisco life and culture — can’t stay in a town that offers no place for them to live. Is this really how we want to use the 1,500 precious acres of the eastern neighborhoods?

The Hausrath study was largely a waste of money, which is too bad, because the issue facing the planning commissioners, the mayor, and the supervisors is profound. The city planners need to go back to the drawing board and come up with a rezoning plan that makes affordable housing and the retention of PDR jobs a priority, gives million-dollar condos a very limited role, and prevents the power of a truly perverse market from further destroying some of the city’s most vulnerable neighborhoods. *

The straight story on the armory

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The sale of the former National Guard armory on Mission Street has caused a flurry of concern about the plans for the site of the new owner and developer, Kink.com. Most of the columns and editorials in the San Francisco Chronicle, Examiner, and BeyondChron.com have been reactionary and politically opportunistic. It has given the cheerleaders of runaway market-rate development a new reason to knock affordable housing advocates in general and the Mission Anti-Displacement Coalition in particular.

For the past six years, MAC, with the participation of hundreds of Mission District residents, has been developing a vision for the neighborhood, called the People’s Plan, which confronts the gentrification pressures of new development and sets out policies for a healthy, sustainable community. Our approach is not that of knee-jerk NIMBYs mindlessly opposing any proposed change in our community. We are in favor of affordable housing, good-paying jobs for immigrants and working-class families, and sustainable economic development.

However, immediately after the Kink.com story broke, writers such as Ken Garcia blamed MAC for directly causing the sale to what other papers are calling a “porn production company.” It’s true that MAC has opposed the previous three development proposals, but the developers themselves, responding to the ups and downs of the market, ultimately dropped the projects for financial reasons. Here’s a brief review:

In 2000 a multimedia office complex proposal was approved by the Planning Department and later dropped. The armory was then going to be a server farm. The server farm was approved by the Planning Department again (contrary to what Garcia has written), but the company went under. A local financier retained control and proposed an outlandish and financially risky housing proposal.

The luxury housing proposal went into the planning process, and an environmental review had begun, but instead, the owner sold the site to Kink.com

MAC didn’t know the owner was secretly negotiating the sale of the armory. Had the financiers been honest with the community, perhaps the city or some other entity could have come forward and put the armory to better use. But at this point, the sale of the armory is complete, and there’s no further process necessary for the new owners to set up shop. That means it’s difficult for the community or city to stop the proposed use.

Now the community finds itself responding to this purchase and to opportunists who are taking advantage of this situation to use the current plan as a wedge issue to attack MAC and other affordable housing activists who have had concerns about high-end market-rate housing development in the Mission. The Mission is both the heart of the Latino community in San Francisco and home to other communities. For a healthy and sustainable community, a measuring stick for a development project is whether it will lead to displacement of residents and community-serving businesses and contribute to gentrification.

MAC will continue to fight for equitable development through the People’s Plan and the Mission rezoning process and will continue to challenge all projects that have the potential to negatively impact our community. *

Eric Quezada and Nick Pagoulatos

Eric Quezada and Nick Pagoulatos are Mission Anti-Displacement Coalition activists.

 

Make housing, not war!

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OPINION As President George W. Bush requests more money to fight the war overseas, a stealth war is being fought here on domestic soil: the war on housing for the poor. Since the Bush administration took power, the public housing program has suffered $1 billion in cutbacks.

As a result, conditions have rapidly deteriorated in public housing developments throughout the country. Maintenance, security, and services have been slashed annually as budgets are drained with each appropriations bill. A climate of violence, fear, and despair has taken hold in the projects, where years of deferred maintenance, toxic and unsanitary conditions, and government neglect are simmering to a boiling point.

As we fought terror abroad, the Republican-led Congress created a breeding ground for terror here at home. Just ask the desperate, homeless families who refuse offers to move to the city’s public housing developments for fear of their lives. Or ask the mothers of children who have been shot at in their front yards while attempting to escape the leaking sewage and toxic mold in their homes.

Yet rather than fight this terror in our own backyards, lawmakers have attacked the very programs that can provide a solution. Job training, education programs, and social services have all been casualties of the war on public housing. Agencies have been forced to make cuts in security and maintenance staff every year. In the past five years alone, the San Francisco Housing Authority has lost 250 employees, a 50 percent cut.

While military spending has continued to rise, the offensive against housing has also escalated. A full $600 million was cut from the 2006 public housing budget, funding housing authorities at only 85 percent of overall need. Layoffs and cutbacks occurred throughout the country as cities began planning for desperate measures such as disposing of properties, raising tenant fees, and increasing response time for repairs. In San Francisco, 26 housing authority staff lost their union jobs last year. As a result, vulnerable senior and disabled residents in high-crime neighborhoods saw their security services eliminated.

Last year was devastating for public housing residents, and the battle is far from over. The generals of the war on housing are out for blood, and it appears that they will not stop until the last vestiges of federally funded, low-income housing are destroyed. This was made abundantly clear recently when the Department of Housing and Urban Development announced that in 2007 housing authorities will be funded at only 76 percent of the actual need. By proposing a budget that is $1 billion short, President Bush has raised the stakes in the fight to preserve our precious remaining federal housing for the poor.

Congress has a chance to increase funding when it passes a spending bill next month. Without an increase, San Francisco will face a $3.5 million shortfall. Our powerful new leadership must take a stand against these unconscionable cuts, which could starve local housing agencies to death.

The only way to avoid increased homelessness; displacement of poor families; loss of union jobs; heightened violence; and turn-of-the-century, tenementlike living conditions for San Francisco’s poorest residents is for our representatives to insist on an increase in funding. Tell Congress to fight the war at home and not the one overseas by sending a letter at www.local-impact.org. *

Sara Shortt

Sara Shortt is the director of subsidized housing programs for the Housing Rights Committee of San Francisco.

Toward a sustainable San Francisco

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EDITORIAL When you decide to buy your vegetables at a local grocery store, not at Safeway, or when you buy your books at the neighborhood bookstore instead of Barnes and Noble, or when you buy hardware from a store down the street, not from Home Depot, you’re actually doing something profoundly radical. You’re challenging the predominant paradigm of economic theory — and you’re helping make the San Francisco economy a whole lot healthier for a whole lot of people.

That’s what a detailed new report by a group of small business leaders and advocates for a sustainable economy argues. The coalition, led by the Business Alliance for Local Living Economies, makes a powerful argument — and the San Francisco supervisors ought to make it official city policy to follow the report’s proposals.

As Jeff Goodman reports in "Localize It" on page 11, in some ways the report is a critique of globalization: it argues that an economic system that encourages Bay Area consumers to buy cheap goods made by near-slave labor thousands of miles away and shipped here to be sold in giant chain stores whose workers can’t even afford health insurance and where all the buyers arrive in individual automobiles isn’t good for anyone. The economic displacement, the environmental impact, and the human cost are all unacceptable. And yet globalization (and so-called free trade) is the accepted principal of almost all national and even statewide policy.

But cities like San Francisco don’t have to go along with that. Jane Jacobs, the urban economist and planner, noted more than 30 years ago that cities are the true engines of national economies — and that the healthiest and most successful cities are the ones that have diverse, locally controlled economies and that, as much as possible, replace imports with local products. That’s what the new report calls for — and on a policy level it’s not terribly complicated.

For example, a citywide policy calling for a sustainable local economy would strongly discourage any new chain stores in the city (such as a Home Depot on Bayshore Boulevard) on the grounds that they violate all the basic principles of what the coalition calls localization. Economic development decisions would have to pass a strict test: Does this encourage locally owned businesses? Does it help replace imports? Does it keep money in the economy? Land-use decisions would have to be evaluated in part on their economic merits (but under a new sort of standard); a high-end housing development that displaced local industry wouldn’t make the cut. Purchasing decisions would have to take into account localization issues: Does the food come from the region? Is it possible to buy the goods locally?

It’s impossible in the modern economy to completely avoid globalization — and it’s not necessarily a good idea either. The new report hardly calls for economic isolation. But it does offer a very different policy vision. The supervisors should hold hearings, bring in the authors of the report, and move to create a formal policy that sets sustainable local economics as a standard for all city business. *

The coalition’s report is available at www.regionalprogress.org.

New generation, old joy

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› a&eletters@sfbg.com

Once upon a time movie men were expected to be all action — confidence, whether in the form of a swagger or saunter, being the mark of the leading man. Such virility was served up uncooked by method actors such as Marlon Brando and James Dean, but it wasn’t until the baby boom generation ushered in unlikely stars such as Dustin Hoffman and Jack Nicholson that the archetype really turned over. Realism was the new fantasy, and these actors went to great lengths to convey hurt. This tendency reached a peak during the indie cinema boom of the ’90s, with male leads wearing their wounds with newfound openness, flailing — or as writer-director Noah Baumbach would have it, kicking and screaming — at posteverything angst and political correctness. Several of this year’s most indelible male characters were racked with similar inaction but were also fleshed out with an altogether tougher skin than were their ’90s predecessors. They still struggled to come to terms with the present tense but in a more reserved, reflective kind of way.

Even with the Zach Braff vehicle The Last Kiss failing to stir Garden State fans, 2006 was a good year for boy-men. The fact that Keanu Reeves (A Scanner Darkly) continues to win parts is surely proof enough, but there were three American indies — Ryan Fleck’s Half Nelson, Andrew Bujalski’s Mutual Appreciation, and Kelly Reichardt’s Old Joy — that most poignantly located ambiguity (and cultural malaise) in the troubled expressions of their male leads. Is it telling that women had a major hand in making two of these films, with director Reichardt adapting Jon Raymond’s story for Old Joy and Anna Boden teaming with director Fleck to pen the script for Half Nelson? Probably so, especially when you consider that it’s the male-helmed Mutual Appreciation (written, directed, and costarring Bujalski) that most resembles the talky Generation X pictures made 10 years ago, albeit realized with a formal tact and thematic subtlety largely missing in those now-dated chronicles of ennui.

The fact that each of these films frames its character studies in a different way — Half Nelson is a social drama, Mutual Appreciation a relationship movie, and Old Joy the closest thing to lyric poetry we’re likely to get from American narrative cinema — makes their overlaps all the more striking. All the central characters are, to be sure, of the same milieu (Half Nelson and Mutual Appreciation even share a Brooklyn setting), and one imagines they would get along fine at the right party — a conclusion we can draw from their record collections. It’s clear enough from Half Nelson‘s Broken Social Scene soundtrack and Old Joy‘s Yo La Tengo score but even more embedded in the casting of Will Oldham in Old Joy and as-yet-unknown rocker Justin Rice in Mutual Appreciation: a nod to ’70s cinema, when art directors like Monte Hellman found muses in musician-actors like Kris Kristofferson, Warren Oates, and yup, James Taylor.

These singer-songwriters are known for suggesting emotion without resorting to histrionic literalism, so it’s natural that filmmakers aiming for opaque characterizations took an interest in them. If casting provides clay to mold (even Half Nelson‘s Ryan Gosling — an established actor — is enough of a blank slate for these purposes), it’s the filmmakers who supply the films’ crucial senses of diffusion and displacement. All these films are, at base, about characters fundamentally unsure of their place in the world, so it makes sense that they share a common focus on environment and mise-en-scène. Old Joy ‘s overcast Oregon woods function in much the same way as Mutual Appreciation‘s crummy, minimalist flats and protagonist Dan Dunne’s shut-in apartment in Half Nelson. The two estranged friends in Old Joy take a camping trip to get away from their lives but end up considerably more cloistered, with the trash-strewn, damp woods hanging over their heads as much as their past-tense relationship does. One especially lyrical shot shows the woods’ reflection rotating in their car’s window as they U-turn, lost in more than one sense. Meanwhile, in several of Mutual Appreciation‘s key scenes, the figures involved in the central ménage à trois listlessly rock back and forth, the thrift furniture and frameless mattresses an extension of their essential fear of commitment. And then there’s Half Nelson‘s Dan, an anguished hero split between a passion for teaching and a drug addiction, his shuttered, bookish flat betraying self-entrapment and lapsed idealism.

Lapses are another common denominator here — many of these films’ most affecting images are the silent beats in which we see the actors registering a sense of loss, be it nostalgia (the pause in Old Joy following Mark and Kurt’s conversation about a favorite record store going out of business) or regret (Dan’s hollowed expression when caught smoking crack by a knowing student). Mutual Appreciation‘s characters have hardly started their adult lives, but when rocker Alan looks at himself in the mirror, in drag after a drunken odyssey, the seed is already there; 10 years down the line, his problems will be Mark’s and Kurt’s. Politics hang in the air like weather (Mark listens to Air America with a blank expression; Dan is distant while his parents discuss their bygone activism) as if preemptively remembering the present. Kicking and screaming, no: instead, as Kurt’s Old Joy tag goes, "Sorrow is nothing but worn-out joy." It’s hardly a sentiment to stake a straightforward portrait of a generation on, but while these films probably lose something in box office terms for not having the cachet of Reality Bites or, for that matter, The Graduate, they more than make up for it with their uncloying characterizations. Even Brando might find the roles opaque, but for these films it would be a mistake to confuse ambiguity with aimlessness. *

MAX GOLDBERG’S 10 FAVORITE THEATRICAL RELEASES (WITH A TWIST)

Old Joy (Kelly Reichardt, US)

L’Enfant (Jean-Pierre and Luc Dardenne, Belgium/France)

Mutual Appreciation (Andrew Bujalski, US)

The Intruder (Claire Denis, France)

Iraq in Fragments (James Longley, US/Iraq)

Flags of Our Fathers/Letters from Iwo Jima (Clint Eastwood, US)

Half Nelson (Ryan Fleck, US)

The Proposition (John Hillcoat, Australia/UK)

Three Times (Hou Hsiao-hsien, France/Taiwan)

A Scanner Darkly (Richard Linklater, US)

49ers aren’t worth public money

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EDITORIAL The prospect of the San Francisco 49ers moving to Santa Clara — and taking with them any hope of a 2016 Olympic bid for San Francisco — caught the Newsom administration off guard and has much of City Hall scrambling to figure out a way to keep the fabled sports franchise in San Francisco. It’s not a futile effort by any means: the deal to build a new stadium in Santa Clara still has a long way to go, and there are some very real issues (including the phenomenal parking and traffic problems and the utter lack of accessible transit).
But city officials need to keep a sense of perspective here: the loss of the Olympics was almost certainly a good thing, and the loss of the 49ers wouldn’t be the end of the world. So there’s no reason to even start to talk about handing out promises of more public money, tax breaks, or favorable land deals to keep the Niners in town.
We’ve never been terribly hot on the idea of hosting the Olympics. The last time the issue came up, with a possible bid for the 2012 games, we noted that cities hosting the Olympics tend to wind up with huge public debt and that the costs (typically including gentrification and displacement) aren’t worth the gains. Our articles infuriated local sports leaders, but we’re not the only ones raising questions these days. San Francisco Chronicle columnist Gwen Knapp, in an insightful Nov. 16 piece, suggested that the city might want to thank 49ers owner John York: “He might have saved San Francisco from a vanity project that often leaves ugly blemishes on a community’s bottom line.”
San Francisco is one of the world’s great cities, an international tourist destination, a place that’s already on everyone’s map. We don’t need the Olympics.
We may not need the 49ers either. That’s what Glenn Dickey, Examiner sports columnist, argued Nov. 14. Football teams, with a limited number of home games, bring very little to a local economy — and this is hardly a city that needs the name recognition of a National Football League franchise. “Mayor Gavin Newsom should spend his time on more critical priorities,” Dickey noted.
Of course, if the 49ers leave, something has to be done with the park formerly known as Candlestick — a white elephant that cost the city tens of millions of dollars in bonds. But almost any sort of new development there would do more for the neighborhood than a stadium filled by people who drive in, bring their own food, drive away, and spend almost no money at local businesses.
The San Francisco Giants managed to build a new stadium almost entirely with private money, and it’s been a huge financial success. The city shouldn’t be tempted to throw big chunks of public money at keeping the 49ers from moving. SFBG

Bayview’s perspective

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› steve@sfbg.com
Consider the perspective of Marie Harrison and her political allies in Bayview — including the owners and writers at the San Francisco Bay View newspaper — whose support for Proposition 90 has put them at odds with the progressive political community.
Harrison, who is running for supervisor against incumbent Sophie Maxwell, lives on Quesada Avenue just off Third Street, in a diverse neighborhood bustling with vitality. Residents have transformed the wide median on her street into a gorgeous community garden. Almost all the houses are owner-occupied and well maintained.
“Blight” is not a word that most people would use to describe this neighborhood. Yet that is the word city officials have used to justify their decision earlier this year to turn this neighborhood and the rest of Bayview–Hunters Point into the biggest redevelopment area in city history over the strident objections of Harrison and others.
Redevelopment is a process that collects annual property tax increases into a fund that the San Francisco Redevelopment Agency uses to subsidize favored development projects, usually working with big developers and often bundling properties together for them to use, seizing the land by eminent domain if need be.
“The Redevelopment Agency is like a monster,” Dr. Ahimsa Porter Sumchai, a physician who covers the environment for the Bay View, told the Guardian while sitting in Harrison’s house.
For Harrison and others who moved to this neighborhood after being forced out of the Fillmore by another redevelopment effort that began in the ’60s, redevelopment means one thing: displacement of existing residents, or “repeopling,” a disturbing term that Harrison said she found in some Redevelopment Agency literature. They see it as simply a land grab by greedy developers working in cahoots with Mayor Gavin Newsom and the political establishment.
“Yeah, we’d like to see our community built up and look nice. But does that mean I don’t get to live here?” said Harrison, who, like many Bayview residents, owns her home but struggles to get by: she works, and her husband has two jobs, but they still live month to month.
It is that fear that caused Harrison to support Prop. 90 even after editors at the Guardian and other progressive voices tried to convince her that the state measure’s damaging aspects far outweigh its protections against eminent domain.
While Harrison admitted, “I see some things in Prop. 90 that scare the shit out of me,” she said, “desperation has set in.
“They’ve taken all hope. I see that I have to protect my community. Somebody has to remove the fear…. In this community, [Prop. 90 is] a hope and a chance.”
Where Maxwell and city leaders who favor redevelopment see progress, Harrison and others see an insidious conspiracy to take control of Bayview away from the people who live there.
And the narrative that city government is out to get Bayview has recently been reinforced by other actions: Newsom’s announcement that he wants to use Bayview–Hunters Point as a staging ground for the 2016 Olympics; expanded plans for upscale housing development around Candlestick Park; City Attorney Dennis Herrera’s rejection of a seemingly successful referendum drive challenging the Bayview Hunters Point Redevelopment Plan and the refusal of the Board of Supervisors to allow a vote on the matter; city staffers issuing regular citations to Bayview property owners to make improvements or risk fines; the Housing Authority’s failure to properly maintain the projects it manages; Herrera’s decision this month to seek civil injunctions preventing the free association of purported members of the Oakdale Mob; and the Redevelopment Agency’s Oct. 17 decision to let Lennar Corp. out of its pledge to build rental units on Parcel A of the former Hunters Point Naval Shipyard.
Add it all up, and it becomes understandable why many Bayview residents buy into the vision that Bay View publisher Willie Ratcliff has repeatedly put on the front page of his newspaper: “the bulldozers are at our borders,” just waiting to turn Bayview into one more white yuppie enclave and make a handful of politically connected developers rich in the process.
Officials strenuously deny this is true, arguing that this redevelopment project is all about helping the area by building more affordable housing, infrastructure, and open space and noting how the plan strictly forbids the seizure of residential property by eminent domain.
“The agency has that historical baggage, but we haven’t done anything like that in many years,” Marcia Rosen, director of the Redevelopment Agency, told us.
That hasn’t allayed fears in Bayview or among its allies outside the community, most notably Brian Murphy O’Flynn, whose North Beach property was seized by the city in 2003 to be turned into a park.
“I thought, ‘These people are getting steamrolled,’” O’Flynn told us. “The people there are going to be displaced…. It comes down to money. [Powerful people] want that neighborhood. It’s right on the water, and it’s going to make some people rich.”
Nonetheless, O’Flynn has concerns about the other impacts of Prop. 90, so much so that he has parted ways with his Bayview allies on the measure and refused requests by Prop. 90 advocates to join the campaign.
“I have no position on 90,” O’Flynn said. “But I understand how it came about.” SFBG

East Bay races and measures

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Editor’s note: The following story has been altered from the original to correct an error. We had originally identified Courtney Ruby as running for Alameda County Auditor; the office is actually Oakland City Auditor.

Oakland City Auditor
COURTNEY RUBY
Incumbent Roland Smith has to go. He’s been accused of harassing and verbally abusing his staff and using audits as a political weapon against his enemies. The county supervisors have had to reassign his staff to keep him from making further trouble. And yet somehow he survived the primary with 32 percent of the vote, putting him in a November runoff against Courtney Ruby, who led the field with 37 percent. Ruby, an experienced financial analyst, would bring some credibility back to the office.
Peralta Community College Board, District 7
ABEL GUILLEN
Challenger Abel Guillen has extensive knowledge of public school financing and a proven commitment to consensus building and government accountability. In the last six years Guillen, who was raised in a working-class community and was the first in his family to go to college, has raised $2.2 billion in bond money to construct and repair facilities in school districts and at community colleges. Incumbent Alona Clifton has been accused of not being responsive to teachers’ concerns about the board’s spending priorities and openness.
Berkeley mayor
TOM BATES
This race has progressives tearing at each other’s throats, particularly since they spent a ton of cash last time around to oust former mayor Shirley Dean and replace her with Tom Bates, who used to be known as a reliable progressive voice.
Bates’s reputation has shifted since he became mayor, and his record is a mixed bag. This time around, he stands accused of setting up a shadow government (via task forces that duplicate existing commissions but don’t include enough community representatives), of giving developers too many special favors instead of fighting for more community benefits, and of increasingly siding with conservative and pro-landlord city council member Gordon Wozniak.
The problem is that none of Bates’s opponents look like they would be effective as mayor. So lacking any credible alternative, we’ll go with Bates.
Berkeley City Council, District 1
LINDA MAIO
Incumbent Linda Maio’s voting record has been wimpy at times, but she is a strong proponent of affordable housing, and her sole challenger, Merrilie Mitchell, isn’t a terribly serious candidate. Vote for Maio.
Berkeley City Council, District 2
DONA SPRING
A valiant champion of every progressive cause, incumbent Dona Spring is one of the unsung heroes of Berkeley. Using a wheelchair, she puts in the energy equivalent of two or three council members and always remains on the visionary cutting edge. If that weren’t enough, her sole challenger, Latino businessman and zoning commissioner Raudel Wilson, has the endorsement of the Berkeley Chamber of Commerce. Vote for Spring.
Berkeley City Council, District 7
KRISS WORTHINGTON
Incumbent Kriss Worthington is an undisputed champion of progressive causes and a courageous voice who isn’t afraid to take criticism in an age of duck and run, including the fallout he’s been experiencing following the closure of Cody’s on Telegraph Avenue, something conservatives have tried to link to his support for the homeless. His sole challenger is the evidently deep-pocketed George Beier, who describes himself as a community volunteer but has the support of landlords and the Berkeley Chamber of Commerce and has managed to blanket District 7 with signage and literature, possibly making his one of the most tree-unfriendly campaigns in Berkeley’s electoral history. Keep Berkeley progressive and vote for Worthington.
Berkeley City Council, District 8
JASON OVERMAN
Incumbent Gordon Wozniak postures as if he is going to be mayor one day, and he’s definitely the most conservative member of the council. During his tenure, Wozniak has come up with seven different ways to raise rents on tenants in Berkeley, and he didn’t even vote against Gov. Arnold Schwarzenegger’s special election last year. Challenger Jason Overman may be only 20 years old, but he’s already a seasoned political veteran, having been elected to the Rent Stabilization Board two years ago. Vote for Overman.
Berkeley city auditor
ANN-MARIE HOGAN
Ann-Marie Hogan is running unopposed for this nonpartisan post, which is hardly surprising since she’s done a great job so far and has widespread support.
Berkeley school director
KAREN HEMPHILL, NANCY RIDDLE, NORMA HARRISON
With five candidates in the running and only three seats open, some are suggesting progressives cast only one vote — for Karen Hemphill — to ensure she becomes board president in two years, since the job goes to the person with the most votes in the previous election.
Hemphill has done a great job and has the support of Latino and African American parent groups, so a vote for her is a no-brainer.
So is any vote that helps make sure that incumbents Shirley Issel and David Baggins don’t get reelected.
Nancy Riddle isn’t a hardcore liberal, but she’s a certified public accountant, so she has number-crunching skills in her favor. Our third pick is Norma Harrison, although her superradical talk about capitalism being horrible and schools being like prisons needs to be matched with some concrete and doable suggestions.
Rent Stabilization Board
DAVE BLAKE, HOWARD CHONG, CHRIS KAVANAGH, LISA STEPHENS, PAM WEBSTER
If it weren’t for the nine-member elected Rent Stabilization Board, Berkeley would have long since been taken over by the landlords and the wealthy. This powerful agency has been controlled by progressives most of the time, and this year there are five strong progressives running unopposed for five seats on the board. We recommend voting for all of them.
Oakland City Council
AIMEE ALLISON
When we endorsed Aimee Allison in the primary in June, we pointed out that this was a crucial race: incumbent Patrician Kernighan has been a staunch ally of outgoing mayor Jerry Brown and Councilmember Ignacio de La Fuente — and now that Ron Dellums is taking over the Mayor’s Office and a new political era could be dawning in Oakland, it’s crucial that the old prodevelopment types don’t control the council.
Kernighan’s vision of Oakland has always included extensive new commercial and luxury housing development, and like De La Fuente, she’s shown little concern for gentrification and displacement. Allison, a Green Party member, is the kind of progressive who could make a huge difference in Oakland, and she’s our clear and unequivocal choice for this seat.
From crime to city finance, Allison is well-informed and has cogent, practical proposals. She favors community policing and programs to help the 10,000 parolees in Oakland. She wants the city to collect an annual fee from the port, which brings in huge amounts of money and puts very little into the General Fund. She wants to promote environmentally sound development, eviction protections, and a stronger sunshine ordinance. Vote for Allison.
East Bay Municipal Utility District director, Ward 4
ANDY KATZ
Environmental planner Andy Katz is running unopposed. Despite his relative youth, he’s been an energetic and committed board member and deserves another term.
AC Transit director at large
REBECCA KAPLAN
Incumbent Rebecca Kaplan is a fixture on the East Bay progressive political scene and has been a strong advocate of free bus-pass programs and environmentally sound policies over the years. A former public interest lawyer, Kaplan’s only challenger is paralegal James K. Muhammad.
Berkeley measures
Measure A
BERKELEY PUBLIC SCHOOLS TAX
YES
This measure takes two existing taxes and combines them into one but without increasing existing rates. Since 30 percent of local teachers will get paid out of the revenue from this measure, a no vote could devastate the quality of education in the city. Vote yes.
Measure E
RENT STABILIZATION BOARD VACANCY
YES
Measure E seeks to eliminate the need to have a citywide special election every time a vacancy occurs on the Rent Stabilization Board, a process that currently costs about $400,000 and consumes huge amounts of time and energy. The proposal would require that vacancies be filled at November general elections instead, since that ballot attracts a wider and more representative group of voters. In the interim, the board would fill its own vacancies.
Measure F
GILMAN STREET PLAYING FIELDS
YES
Measure F follows the council’s October 2005 adoption of amendments that establish the proper use for public and commercial recreation sports facilities, thereby allowing development of the proposed Gilman Street fields. Vote yes.
Measure G
GREENHOUSE GAS EMISSIONS
YES
Measure G is a nice, feel-good advisory measure that expresses Berkeley’s opinion about the dangers of greenhouse gas emissions to the global climate and advises the mayor to work with the community to come up with a plan that would significantly reduce such emissions, with a target of an 80 percent reduction by 2050. Vote yes.
Measure H
IMPEACHMENT OF PRESIDENT GEORGE BUSH AND VICE-PRESIDENT DICK CHENEY
YES
In left-leaning Berkeley this is probably the least controversial measure on the ballot. Do we really need to spell out all over again the many reasons why you should vote yes on this issue?
If this measure passes, both Berkeley and San Francisco will have taken public stands in favor of impeachment, which won’t by itself do much to force Congress to act but will start the national ball rolling. Vote yes.
Measure I
AMENDING CONDO CONVERSION ORDINANCE
NO, NO, NO
Measure I is a really bad idea, one that links the creation of home ownership opportunities to the eviction of families from their homes. It was clearly cooked up by landlord groups that are unhappy with Berkeley’s current condo conversion ordinance, which allows for 100 conversions a year. Measure I proposes increasing that limit to 500 conversions a year, which could translate into more than 1,000 people facing evictions. Those evictions will hit hardest on the most financially vulnerable — seniors, the disabled, low- and moderate-income families, and children. With less than 15 percent of current Berkeley tenants earning enough to purchase their units, this measure decreases the overall supply of rentals, eliminates requirements to disclose seismic conditions to prospective buyers, and violates the city’s stated commitment to fairness, compassion, and economic diversity. Vote no.
Measure J
AMENDING LANDMARK PRESERVATION ORDINANCES
YES
A well-meaning measure that’s opposed by developers, Measure J earns a lukewarm yes. It establishes a nine-member Landmarks Preservation Commission; designates landmarks, structures of merit, and historic districts; and may approve or deny alteration of such historic resources but may not deny their demolition. It’s worth noting that if Proposition 90 passes, the city could face liability for damages if Measure J is found to result in substantial economic loss to property — all of which gives us yet another reason to say “vote no” on the horribly flawed Prop. 90 while you’re voting yes on Measure J.
Oakland Measures
Measure M
POLICE AND FIRE RETIREMENT BOARD INVESTMENTS
YES
Measure M would amend the City Charter to allow the board that oversees the Oakland Police and Fire Retirement System (PFRS) slightly more leeway in making investment decisions. The board claims that its current requirements — which bar investment in stocks that don’t pay dividends — are hampering returns. That’s an issue: between July 2002 and July 2005, the unfunded liability of the PFRS grew from $200 million to $268 million — a liability for which the city of Oakland is responsible. We’re always nervous about giving investment managers the ability to use public money without close oversight, but the new rules would be the same as ones currently in place in San Francisco and Los Angeles.
Measure N
LIBRARY IMPROVEMENT AND EXPANSION BONDS
YES
Oakland wants to improve and expand all library branch facilities, construct a new main library at the Henry J. Kaiser Convention Center, and buy land for and construct two new library facilities in the Laurel and 81st Avenue communities. The upgrades and construction plans come in response to residents’ insistence that they need more space for studying and meeting, increased library programs and services, tutoring and homework assistance for children, increased literacy programs, and greater access to current technology and locations that offer wi-fi.
This $148 million bond would cost only $40 a year for every $100,000 of assessed property. Vote yes.
Measure O
INSTANT RUNOFF VOTING
Ranked-choice voting, or instant runoff voting, is a great concept. The city of Oakland is using it to elect officials in the November election without holding a prior June election. There’s only one problem: so far, Alameda County hasn’t invested in voting equipment that could make implementing this measure possible. Voting yes is a first step in forcing the county’s hand in the right direction. SFBG

Reconsidering redevelopment

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By Steven T. Jones
My head is spinning after reading both the City Attorney’s Opinion that struck down the successful referendum drive challenging the Bayview Hunters Point Redevelopment Plan, and the redevelopment plan itself. Reading the actual 62-page plan and its supporting documents is what Herrera contends voters needed to be able to do before signing the referendum. I contend that few sane citizens have the stomach or tools they need to glean much meaning from this big pile of governtese. And for wonks like me who have a long history of poring through these kinds of documents, I can’t say that I found much in there to disabuse me of the notion that redevelopment was, is, and will probably always be a tool for displacement of citizens and subsidies for private developers, with only vague and easily waived controls on how the Redevelopment Agency operates. One exception in this plan does appear to be the outright prohibition of using eminent domain to seize houses — a needed protection against a tool the Redevelopment Agency used to cleanse the Fillmore of low-income black people — although other properties can still be seized, despite plan proponents claims that eminent domain is banned by the plan.
But my point here is not to rehash the plan, which you can read yourself (and could have read yourself before signing the petition, whether or not the petitioners had a copy with them for you to spend a couple hours reading on a street corner). No, my main point is that the plan is a big deal, one that should be voted on (at the very least by BHP residents). And it’s sad to see city officials circling the wagons instead of allowing that to happen, particuarly when state law calls for city officials to err of the side of letting people vote, as even this opinion concedes.

Signs of the times

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› steve@sfbg.com
The Mission has become a battleground between those trying to stop war and those trying to combat blight — a clash of values that is headed for a court battle that will determine whether San Francisco has gone too far in its campaign against the posting of handbills.
On one side are the Act Now to Stop War and End Racism (ANSWER) Coalition, World Can’t Wait, and other groups that stage the city’s biggest rallies against war and injustice. They’ve been hit by the city with tens of thousands of dollars in fines for their notices getting posted in violation of a city law cracking down on blight, and ANSWER has responded with a lawsuit.
On the other side is a 56-year-old activist named Gideon Kramer, who led the campaigns against graffiti and illegal signs and eventually became the eyes and ears of the city’s Department of Public Works and the Clean City Coalition. That nonprofit antiblight group gets hundreds of thousands of dollars in city money annually and in turn gave Kramer a full-time job pursuing his zealous fight against blight.
Kramer’s job is to cruise around in a city-provided motorized cart to document and remove illegal signs and submit that information to the DPW, which then issues citations and levies fines. Although Kramer maintains he doesn’t single out antiwar groups, he does admit that it was the blanketing of the Mission with ANSWER flyers and posters during the buildup to the invasion of Iraq that animated his animus toward sign posting.
“They hide behind the First Amendment, but this is not a free speech issue,” Kramer told the Guardian. “They completely obliterated this neighborhood for two years until I got them to stop…. This place looked like a war zone five years ago, when I finally took this area over.”
To Kramer, his efforts are simply about beautifying the Mission, which to him entails removing graffiti and flyers, particularly the ones affixed to any of the 88 historic lampposts along Mission Street, violations that draw a fine of $300 per notice rather than the $150 fine for most poles.
But to ANSWER’s West Coast coordinator Richard Becker, the city and Kramer are chipping away at fundamental rights of speech, assembly, and due process in their myopic effort to gentrify the Mission and other still-affordable neighborhoods.
“It is connected to a drive in San Francisco against working-class communities. This is being done in the name of fighting blight,” Becker said, “but it’s part of the transformation of San Francisco to a city that caters only to the middle class and above.”
The antihandbill measure — passed by the Board of Supervisors in 1999 — is part of a clean-city campaign that includes aggressive new measures aimed at removing graffiti and punishing those responsible, increased spending on street and sidewalk cleaning, crackdowns on the homeless, and most recently, the prohibition of campaign and other signs on utility poles.
State law already prohibits all handbills and signs from being on traffic poles. The local law extends that absolute prohibition to “historic or decorative streetlight poles,” such as those along Mission from 16th to 24th streets, along Market Street, around Union Square and Fisherman’s Wharf, and on a half dozen other strips around the city.
In addition, the measure sets strict guidelines for all other postings. Unless those posting handbills want to register with the DPW and pay permit fees, their signs must be no larger than 11 inches, “affixed with nonadhesive materials such as string or other nonmetal binding material (plastic wrapped around pole is OK),” and with a posting date in the lower right corner. Signs must be removed within 10 days if they’re for an event, otherwise within 70 days.
Any deviations from these conditions will trigger a fine of $150, payable by whatever entity is identifiable from the content of the handbill, regardless of whether the group actually did the posting or knew about it. That standard of guilt, known legally as the “rebuttable presumption” — wherein someone is considered guilty unless they request an administrative hearing and can prove otherwise — is one of the targets of the ANSWER lawsuit, which is scheduled for its first pretrial hearing next month.
“In San Francisco, the distribution of handbills and other such literature is a quintessentially protected First Amendment activity, as it is everywhere. But the moment someone posts a group’s literature on city property, the DPW is entitled to presume, under the rebuttable presumption, that the group itself is responsible — absent any evidence of a connection between the group and the person who did the posting,” wrote attorney Ben Rosenfeld, who is representing ANSWER and two other accused violators, in a brief to San Francisco Superior Court.
Furthermore, he argues that there are no evidence standards for contesting the fines, which themselves have a chilling effect on free speech, particularly for poorly funded social and political activists. And, as he told the Guardian, “most people believe that posting flyers, because it’s such a time-honored way of communicating, is legal.”
Yet the City Attorney’s Office argues that city law is defensible and that rebuttable presumption — which is a similar legal precept to how parking tickets are handled — has been validated by the courts.
“We are going to argue that it’s reasonable and fair and it mirrors a state law that has withstood challenges,” said city attorney spokesperson Matt Dorsey. “As a matter of principle, we don’t think the right of free speech allows defacing public property.”
It is that argument — that illegally posting signs is akin to vandalism or littering — that seems to be driving city policy.
“It happens very frequently, and the concern for the city is it costs a lot of money to remove,” the DPW’s Mohammed Nuru told the Guardian. “It adds to urban blight and makes the neighborhood look ugly.”
The view that handbills are blight has gotten a big boost from city hall in recent years — and so have those who advocate that point of view most fervently.
The nonprofit group San Francisco Clean City Coalition — whose board members include city director of protocol Charlotte Schultz and NorCal Waste executive John Legnitto — identifies its mission as keeping “San Francisco clean and green by building bridges between resources and the neighborhood groups, merchant associations, and residents that need them.”
A review of its federal nonprofit financial disclosure forms shows the organization has steadily received more public funds from at least three different city departments in recent years, totaling almost $300,000 in 2004, the last year for which the forms are available, plus another $170,000 in “direct public support.”
“Our organization has grown substantially,” said Clean City executive director Gia Grant, who is paid almost $70,000 per year and has been with the group for five years. “It has increased every year for the last five years.”
Most recently, the group won the $140,000 annual contract to manage the Tenderloin Community Benefit District, bringing to that low-income neighborhood the same kinds of blight abatement work they’ve been doing in the Mission, mostly through their contract with Kramer and his alter ego: SF Green Patrol.
“I believe all San Francisco residents have the right to live in a beautiful neighborhood, no matter where they live,” Grant told us.
Kramer has been applying that mantra to the Mission for several years now: tearing down signs, removing graffiti, painting and repainting the lampposts, and tending to the landscaping at Mission High and other spots. Kramer told us he volunteered his days to the cause even before he was paid for his efforts.
“Basically, the Green Team deals with the restoration of public property,” Kramer said. “I’m doing a lot of things in the community on behalf of the Mission District.”
Yet Kramer is hostile to the view that maybe the Mission was fine just the way it was, a point made by many residents interviewed by the Guardian — particularly activists with the Mission Anti-Displacement Coalition (MAC) — who are more concerned with gentrification than the proliferation of signs for war protests.
“Because their causes are so lofty, they feel like they’re above the law…. They think that because their cause is so important, the end justifies the means,” Kramer said of the many groups with which he’s battled, from ANSWER and MAC to New College and the Socialist Action and Anarchist bookstores. “Free speech is not unlimited and the war in Iraq has nothing to do with clean streets. They’re just lazy and would rather just wheat-paste posters everywhere.”
Kramer said he’s been paid a full-time salary for his efforts for the last year, although neither he nor Clean City — which contracts with him — would say how much he makes. But whatever it is, Grant said Kramer’s days as a fully funded antisign enforcer might be coming to an end.
“The Green Patrol is not being funded by DPW anymore,” Grant said, noting that the contract expires at the end of August. “At this time, there’s no plan to carry it past August.”
ANSWER’s Becker has had several confrontations with Kramer, although both men insist that their actions aren’t personally directed at the other. Kramer is just trying to remove what he sees as blight and Becker is just trying to keep the public aware that the United States is waging an illegal war on Iraq and supporting Israel’s aggressive militarism.
“The war, from our perspective, is really growing,” said Becker. “A considerable number of people are becoming more alarmed by what’s happening. The war has intensified and it’s a complete disaster.”
Set against that global imperative — and the role of US citizens in allowing it to continue — Kramer’s “sacred lampposts” are a little silly to Becker. “He’s got this attitude that ‘I’m preserving your community for you,’” Becker said. “It’s a crazy thing and it’s gotten completely out of control.”
But facing fines that could total $28,000 with penalties, ANSWER has been forced to take the sign laws seriously, pursue legal action for what it believes is an important constitutional right, and instruct volunteers on the rules (with only limited effectiveness, considering some unaffiliated antiwar activists simply print flyers from ANSWER’s Web site and post them).
“The most important issue to us and to other political organizations with limited income is being able to communicate with the public,” Becker said.
And the sign ordinance has made that more difficult. Nonetheless, ANSWER has remained aggressive in calling and publicizing its protests, including the antiwar rally Aug. 12, starting at 11 a.m. in Civic Center Plaza.
As Becker said, “Despite the threat of these massive fines, we’re going to keep moving forward.” SFBG

Homes for whom?

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› steve@sfbg.com
“Inclusionary housing program” is a bureaucratic term that seems to invite mental drift. And when the Board of Supervisors’ Land Use Committee considered updating the program’s standards July 12, there was enough mind-numbing economic and regulatory minutiae to sedate the standing-room-only crowd.
But there were also diamonds in that jargony rough. For one thing, San Francisco is now poised to finally force housing developers to spend more of their astronomical profits on housing that sells or rents for far less than the city’s equally obscene housing market dictates. And that’s been made politically possible by an unlikely deal that has downtown developers such as Oz Erickson, affordable housing activists including Calvin Welch, the market-friendly Mayor’s Office of Housing, and progressive Sup. Chris Daly all on the same side.
In the process, a city-commissioned report has lifted the financial veil from big-money housing development in San Francisco, revealing that those who build the biggest high rises require a profit margin of at least 28 percent — or a take-home profit of about $250 million — before they’ll take on a project.
“It used to be illegal [usury to seek such high interest on loaned money], so 28 percent is a sobering number,” Welch said at the hearing.
The public good likely to come from this ordinance — if the current compromise can hold for a few more weeks — is a fairer system for getting people into below-market-rate (BMR) units, policies designed to encourage more housing construction for a wider income mix, and ways to involve more developers and phase in the program so as not to disrupt ongoing projects.
But before we get too deep into the program’s details, let’s take a step back, because the backstory of how we got to this compromise is an intriguing tale with important political implications, particularly for downtown’s current public enemy number one: Chris Daly.
The story really began last summer when the developers of those big new luxury high-rise condos known as One Rincon Hill were trying to get their final approvals. Daly and many of his constituents were concerned that this lucrative project didn’t include enough community benefits or BMR housing.
So the supervisor stepped in and negotiated with the developer a $120 million deal with a huge low-cost-housing element. In the end, the developer agreed to provide affordable units equivalent to about 25 percent of the project.
That’s more than double the city’s current inclusionary housing requirement, which mandates that 12 percent of the units be available below market rate. The requirement rises to 17 percent if the units are built off-site, and developers can pay the city a fee in lieu of doing the actual construction.
The deal got Daly thinking: If the Rincon developers could afford 25 percent, then others probably could too. So he used some of the developer’s money he’d extracted to fund a study looking at how increasing the mandates to 20 and 25 percent would impact housing construction in the city.
Last fall, the Planning Department and Mayor’s Office of Housing assembled a technical advisory committee — made up of cochairs Erickson and Welch and a mix of for-profit and nonprofit developers plus community representatives — to work with the study’s consultants.
Daly put his efforts in the form of an ordinance last October. Sup. Sophie Maxwell also had introduced legislation to strengthen the inclusionary housing program, which has been combined with the Daly legislation. And Sup. Jake McGoldrick last fall introduced legislation to apply the program to buildings of five or more units (it now applies to buildings of 10 units and more), and his ordinance is now being considered along with the Daly-Maxwell legislation.
“This is about housing for everyday people in San Francisco,” Daly said at the July 12 hearing, which was attended by the three supervisors, city staff and consultants, top developers, and a large crowd of housing activists wearing “Housing Justice Now” stickers.
That volatile mix produced a surprising amount of unanimity and compromise (although the Land Use Committee ultimately decided to push the matter back a week to work out some details). Just a few days earlier, when the consultants’ numbers first came in, the measures had seemed headed for an ugly showdown between the progressives and downtown.
The report by Keyser Marston Associates analyzed how much the city can ask for before developers just say no. It was a wake-up call in many respects, showing that San Francisco developers and their financers expect at least 18 percent profit margins for small projects and more than 28 percent for big ones.
For starters, that means that no private developer will build new rental housing in San Francisco, because the profits aren’t high enough. The report also says that developers will avoid putting affordable units in their luxury condo towers; it makes more economic sense to build them off-site or to pay into the city fund instead.
Doug Shoemaker of the Mayor’s Office of Housing (MOH) said his office has learned a lot from the study, particularly about how the in-lieu fee could be adjusted to make BMR housing construction a more attractive option for developers.
“It’s created a bias for developers to just pay the fee,” Shoemaker said, noting that his office increased the in-lieu fee by 15 percent on July 1 and indicating that further increases could be on the way. In fact, one requirement of the ordinance is for the MOH to regularly update fees to reflect evolving market realities.
Yet there was also a potential kiss of death in the report, which ran the numbers and found that developers wouldn’t pursue projects that met the 20 to 25 percent inclusionary housing standard that Daly was seeking.
Daly and his housing activist constituents understood that the report — which was issued just five days before the hearing — would likely translate into a mayoral veto of the legislation, allowing Mayor Gavin Newsom to claim it would hurt the city’s economy and housing needs.
“What we were confronted with last Friday was political death,” Welch said.
So Daly lowered his requirement to 15 and 20 percent respectively and agreed to compromises that grandfather in projects now in the pipeline and ease up the standards on projects that work within their current zoning.
“We do support the compromise,” Matt Franklin of the MOH told the Guardian.
But for Daly the legislation is about more than percentages. For example, it also creates standards for marketing the BMR units to prevent fraud, allows lower-income residents to qualify for them, and requires off-site BMR units to be within one mile of the project.
Daly, a tough former housing activist known for sometimes taking strong and unbending progressive stands, told the Guardian that this deal is consistent with his approach: “Yes, I’ll push the envelope, but that doesn’t mean I won’t take a good deal.”
The July 12 hearing demonstrated that this was a deal being grudgingly accepted by all of the usually polarized sides.
“We, by and large, support this legislation,” Erickson — the Emerald Fund developer and San Francisco Planning and Urban Research Association board member who cochaired the committee — said at the hearing. He also added, “I think it’s doable. I think it’s not going to kill development.”
Yet he also emphasized that the development community is giving all it can: “Fifteen percent was a compromise and we were very reluctant to see it go from 12 to 15 percent.”
Welch also said the compromise was painful for housing activists, who were hoping to get more BMR units out of market-rate housing developers and were astonished at the huge profit margins that are expected by developers and those who finance their projects.
“I think we have been successful at coming up with public policy that meets the needs of developers and low-income residents,” Welch said at the hearing.
Later he told the Guardian that the inclusionary housing update is designed to promote the kind of housing — BMR units for those making just less than the median income — that is also being created by the controversial practice of evicting tenants from apartments and converting those units into condos.
“What this does is help prevent the rental stock from being converted by [tenancies-in-common],” said Welch.
Developer Mike Burke took issue with the criticism of developers at the hearing. “It’s not a guarantee of a 28 percent return. It’s a fair return based on a substantial risk.”
Yet housing activists note that developers already anticipate delays and other financial risks when constructing their financial models, so many developers actually make more than 28 percent on their projects, a fact that the consultant’s report acknowledged.
Eric Quesada of the Mission Anti-Displacement Coalition called on city officials to adopt as tough a standard as possible, using that as a starting point to a broader discussion.
“We need to dig deeper to look at what the goals of San Francisco are for housing,” he said. “This is the ceiling of what we need.” SFBG

Paying for renewal

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› gwschulz@sfbg.com

BayviewHunters Point residents have cause to be concerned about any redevelopment plan that would dramatically alter the face of their neighborhoods, particularly given the displacement and corporate subsidies that have resulted from past redevelopment schemes in San Francisco.

So when housing activist Randy Shaw reported on his Beyondchron.org Web site April 10 that "hundreds of millions of taxpayer dollars" in revenue from the BayviewHunters Point Redevelopment Plan could go toward rebuilding Candlestick Park for the 49ers, his claim created a firestorm. The rumor quickly circulated among community groups and lefty media outlets already fearful of what SF officials had in store for the southeast section of the city.

But Marcia Rosen, executive director of the San Francisco Redevelopment Agency, says Shaw got it wrong: The tax increment financing (TIF) the main source of redevelopment money from BayviewHunters Point was never intended for Candlestick Park. Sup. Sophie Maxwell, whose district includes the project area, also told the Guardian last week that there hasn’t been any talk of subsidizing the stadium project or its surrounding housing.

Nonetheless, Maxwell has spent weeks trying to respond to community concerns about the stadium funding, as well as a host of other concerns raised by a portion of the community that has been galvanized by the redevelopment issue. On April 20 she added an amendment to the plan that explicitly restricts any TIF money from outside the Candlestick Point Special Use District from going anywhere near the stadium.

But that’s unlikely to end the controversy over a plan that Maxwell has been working on for six years and that has been in the pipeline for nearly four decades.

"This plan didn’t just happen out of thin air," Maxwell said at the May 9 Board of Supervisors meeting. "It came from many different plans in the Bayview. It was an accumulation of many outreach efforts. The plan has been thoroughly vetted. The scrutiny and disagreements have only made it stronger."

The legislation before the board for consideration now contains two parts: a 136-acre area that includes the Hunters Point Hill residential neighborhood, and a much larger area, added in the ’90s, that would expand the Redevelopment Agency’s jurisdiction by 1,361 acres.

Inside the enormous widened area is the Candlestick Point Special Use District, which was created by voters in 1997 as part of a narrowly passed legislative package infused with $100 million in bond money for the construction of a new Candlestick stadium and shopping mall. The plan was stalled until last month, when public mutterings about an alternative plan with more housing units began to circulate.

The propositions (there were two in 1997) allocating $100 million for Candlestick are still technically in effect. The money was never spent, and the football club’s ownership has since indicated it may build the project without that bond money in order to focus on housing. A feasibility study is currently under way, and no plans have yet been made public.

According to a report released by the Budget Analyst’s Office in late April, the Redevelopment Agency is expecting to generate almost $300 million in TIF money from new property taxes over the next 45 or so years to pay for the redevelopment plan. Approximately $30 million of the money available for infrastructure improvements and low-income housing would be contingent on business activity inspired by a new stadium, meaning the agency could end up with much less if the stadium area remains in its current state.

TIF money generated inside Candlestick Point can still flow outward, new stadium or not. But Rosen clarified for us that TIF money could also go toward infrastructure improvements associated with the Candlestick project, such as roads, streetlights, green spaces, and housing at least 50 percent of which is required to be affordable to those with low incomes, a far higher rate than citywide requirements. None of this could happen, however, without board approval and considerable public oversight.

"There is the possibility that the board could allocate tax-increment financing to a park or other public space," Rosen said.

Other concerns residents had over the redevelopment plan have cooled somewhat as Maxwell has introduced a series of amendments, including a call for regular management audits during the plan’s implementation and increased public participation in approving "significant land use proposals," an amendment she introduced last week.

But some skeptics have continued to express concern about gentrification of the area and the displacement of its predominantly minority residents.

Shaw, who opposes the plan, told us his greatest concern now is no longer the 49ers but turnout at public meetings.

"The proponents have outnumbered the opponents," he said. "I haven’t seen the kind of turnout we would have expected." SFBG

After the Murmur

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› news@sfbg.com

One could be forgiven for staring. Oakland’s lower Telegraph Avenue on a wet, cold, windy Friday night is not a location renowned for its street parties, particularly those involving dozens of young, white hipsters happily mingling with an equal number of young African Americans, both watching an impromptu rap show.

But a street party is precisely what was happening outside the Rock Paper Scissors (RPS) Gallery, at Telegraph and 23rd Street, that night. Welcome to Art Murmur, Oakland’s very own art walk on the first Friday of every month. What started in January as an eight-gallery venture has, in a mere four months, blossomed. A dozen Oakland galleries now participate, exhibiting everything from installations featuring massively oversized pill bottles and pillboxes to traditional oil portraitures and, in the case of the Boontling Gallery, unnerving little sculptures that co-owner Mike Simpson described as "whimsical takes on decapitation."

"We want to improve the art scene in the East Bay so that people will call Oakland an artistic force to be reckoned with," the lanky Simpson told the Guardian. "Oakland has a lot of potential, and I have a lot of pride in the city…. A lot of artists who show in San Francisco are from Oakland. Why not represent where they are from?"

But jump-starting an artist-driven revival of lower Telegraph also has its potential hazards, prime among them gentrification. As San Franciscans know all too well, such revitalization carries the danger that the community will be made safe for real estate agents, developers, and urban professionals who quickly eliminate less desirable residents, i.e., the folks who were there first and the new artists’ community.

When asked about the issue, Sydney Silverstein of the RPS Collective knowingly said, "Oh, you mean artists laying the groundwork for gentrification?"

Setting the gentrification question aside for a moment, something new and very exciting is happening along Telegraph Avenue, come rain or shine.

"We want to get people to buy art that have never bought art before," nattily attired Art Murmur cofounder Theo Auer said as he sipped free wine. It is not just the young and trendy who show up more than one gray-haired art aficionado was spotted making purchases at Boontling.

How did it all start? According to Auer, the midwife was beer. "It was after a show, and we asked each other, ‘Why doesn’t Oakland have an art walk?’ ‘How hard can it be?’" The result was a meeting last year at which RPS, Mama Buzz Café, Ego Park, 21 Grand, 33 Grand, Auto Gallery, Boontling, and the Front Gallery all chipped in money for logistics, postcards, an www.oaklandartmurmur.com Web site, and a newspaper ad.

"It’s a tight community," said Tracy Timmins, the pale-blue-eyed and enthusiastic co-owner of Auto Gallery. "We are all very supportive of each other." And that support also comes from her landlord, who is only too happy to have a group of impoverished students who want to improve the neighborhood with art.

This, of course, is what raises the specter of gentrification. History shows that the shock troops of gentrification a Starbucks on every corner, a yuppie in every Beamer are the artists, freaks, punks, and queers who move into marginal areas. They happily pay low rent and live in iffy areas so they can create alternative communities. But that success can sow the seeds of a community’s destruction.

What makes the Art Murmurers different from alternative communities of the past is they are well aware of how they can be a mixed blessing for neighborhoods. The night before the April Art Murmur, Murmurers held a five-hour meeting to revisit their founding principles, which include a commitment to a sustainable neighborhood as a way to prevent yuppification.

"We are trying not to alienate the current residents," Silverstein said, while noting the harsh reality of gentrification. "If this neighborhood goes to hell and becomes another Emeryville, I don’t think you can do anything about it."

Silverstein said RPS is proactively linking to, and becoming part of, the community by offering sewing classes, art classes, a community space for events, and by forging a partnership with a local high school so the collective is not just an invasive bohemian Borg.

Silverstein told us she sees more new faces at classes offered by the gallery, a statement backed by the youths of color running in and out of the gallery space. Timmins too sees a role for the galleries to provide a place for art and education for local kids, because they "are not getting it in school."

Other galleries are less clear on the concept of community and gentrification. Esteban Sabar, owner of the upscale Esteban Sabar Gallery, moved from the Castro to affordable Oakland with a grant from the city of Oakland.

"This is affordable for me," Sabar said. "It will take awhile for gentrification to happen. By putting a gallery here I will help artists and the community. I will not let anyone kick me out." But he failed to address what might happen to the poorer local residents already living there if gentrification heats up.

Perhaps Jen Loy, co-owner of Mama Buzz Café, has the most realistic take on the issue. Lower Telegraph isn’t like areas that used to have vibrant communities until they were decimated by dot-commers. She said there were few people living in the area.

"The more people, the better," Loy said. "People [who have been] living here 10 or 15 years are saying, ‘Thank you, it is great to have you here.’" Loy says businesses like a local market, a pizzeria, and the bar Cabel’s Reef all benefit from an influx of capital.

So the question is, as always, who benefits? If an area is revitalized, tax revenues go up, more people move in, and a more vibrant area ensues, but where do the artists and people who were there first go? Will they be able to create a community strong enough to resist displacement?

Or will they do what Tracy Timmins of Auto Gallery has already had to do: "As far as being pushed out, it happens," she says. "If that happens, I start again somewhere else." SFBG

SF’s economic future

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Sometime early this spring, while most of Washington, D.C. was watching the cherry trees bloom and thinking about the impending Iran-contra hearings, a few senior administration officials began discussing a plan to help domestic steel companies shut down underutilized plants by subsidizing some of the huge costs of pension plans for the workers who would be laid off.

The officials, mostly from the Departments of Labor and Commerce, saw the plan as a pragmatic approach to a pressing economic problem. With the steel industry in serious trouble, they argued, plant closures are inevitable — and since the federal government guarantees private pension plans, some companies will simply declare bankruptcy and dump the full liability on the taxpayers. Subsidies, they argued, would be a far cheaper alternative.

But the plan elicited sharp opposition from members of the Council of Economic Advisors, who acknowledged the extent of the problem but said the proposal was inconsistent with the Reagan economic philosophy. The problem, The New York Times reported, was that “such a plan would be tantamount to an industrial policy, an approach the president has long opposed.”

For aspiring conservative politicians, the incident contained a clear message, one that may well affect the terms of the 1988 Republican presidential debate. To the right-wing thinkers who control the party’s economic agenda, the concept of a national industrial policy is still officially off-limits. In San Francisco, the ground rules are very different. All four major mayoral candidates agree that the city needs to plan for its economic future and play a firm, even aggressive role in guiding the local economy. The incumbent, Dianne Feinstein, has established a clear, highly visible — and often controversial — industrial development policy, against which the contenders could easily compare and contrast their own programs.

The mayoral race is taking place at a time when the city is undergoing tremendous economic upheaval. The giant corporations that once anchored the local economy are curtailing expansion plans, moving to the suburbs and in many cases cutting thousands of jobs from the payroll. The once-healthy municipal budget surplus is gone. The infrastructure is crumbling and city services are stressed to the breaking point.

By all rights, the people who seek to lead the city into the 1990s should present San Francisco voters with a detailed vision for the city’s economic future, and a well-developed set of policy alternatives to carry that vision out.

But with the election just three months away, that simply isn’t happening. Generally speaking, for all the serious talk of economic policy we’ve seen thus far, most of the candidates — and nearly all the reporters who cover them — might as well be sniffing cherry blossoms in Ronald Reagan’s Washington.

“San Francisco’s major challenge during the next 15 years will be to regain its stature as a national and international headquarters city. This is crucial to the city because much of its economy is tied to large and medium-sized corporations….The major source of San Francisco’s economic strength is visible in its dramatic skyline of highrise office buildings.”

—San Francisco: Its economic future

Wells Fargo Bank, June 1987

“In San Francisco, you have the phenomenon of a city losing its big-business base and its international pretensions — and getting rich in the process.”

—Joel Kotkin, Inc. Magazine, April 1987

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IN MUCH OF San Francisco’s news media and political and business establishment these days, the debate — or more often, lament — starts with this premise: San Francisco is in a bitter competition with Los Angeles. At stake is the title of financial and cultural headquarters for the Western United States, the right to be called the Gateway to the Pacific Rim. And San Francisco is losing.

The premise is hard to deny. If, indeed, the two cities are fighting for that prize, San Francisco has very nearly been knocked out of the ring. Just a few short years ago, San Francisco’s Bank of America was the largest banking institution in the nation. Now, it’s third — and faltering. Last year, First Interstate — a firm from L.A. — very nearly seized control of the the company that occupies the tallest building in San Francisco. The same problems have, to a greater or lesser extent, beset the city’s other leading financial institutions. A decade ago, San Francisco was the undisputed financial center of the West Coast; today, Los Angeles banks control twice the assets of banks in San Francisco.

It doesn’t stop there. Los Angeles has a world-class modern art museum; San Francisco’s is stumbling along. The Port of San Francisco used to control almost all of the Northern California shipping trade; now it’s not even number one in the Bay Area (Oakland is). Looking for the top-rated theater and dance community west of the Rockies? San Francisco doesn’t have it; try Seattle.

Even the federal government is following the trend. A new federal building is planned for the Bay Area, but not for San Francisco. The building — and hundreds of government jobs — are going to Oakland.

In terms of a civic metaphor, consider what happened to the rock-and-roll museum. San Francisco, the birthplace of much of the country’s best and most important rock music, made a serious pitch for the museum. It went to Cleveland.

For almost 40 years — since the end of World War II — San Francisco’s political and business leaders have been hell-bent on building the Manhattan Island of the West on 49 square miles of land on the tip of the Peninsula. Downtown San Francisco was to be Wall Street of the Pacific Rim. San Mateo, Marin and the East Bay would be the suburbs, the bedroom communities for the executives and support workers who would work in tall buildings from nine to five, then head home for the evening on the bridges, freeways and an electric rail system.

If the idea was to make a few business executives, developers and real estate speculators very rich, the scheme worked well. If the idea was to build a sound, firm and lasting economic base for the city of San Francisco, one could certainly argue that it has failed.

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NOT EVERYONE, however, accepts that argument. Wells Fargo’s chief economist, Joseph Wahed, freely admits he is “a die-hard optimist.” San Francisco, he agrees, has taken its share of punches. But the city’s economy is still very much on its feet, Wahed says; he’s not by any means ready to throw in the towel.

Wahed, who authored the bank’s recent report on the city’s economic future, points to some important — and undeniable — signs of vitality:

* San Francisco’s economic growth has been well above both the national and state average during the 1980s — a healthy 3.67 a year.

* Per-capita income in San Francisco is $21,000 a year, the highest of any of the nation’s 50 largest cities.

* New business starts in the city outpaced business failures by a ratio of 5-1, far better than the rest of the nation. * Unemployment in San Francisco, at 5.57, remains below national and statewide levels (see charts).

San Francisco, Wahed predicts, has a rosy economic future — as long as the city doesn’t throw up any more “obstacles to growth” — like Proposition M, the 1986 ballot measure that limits office development in the city to 475,000 square feet a year.

John Jacobs, the executive director of the San Francisco Chamber of Commerce, came to the same conclusion. In the Chamber’s annual report, issued in January, 1987, Jacobs wrote: “The year 1986 has been an amusing one, with both national and local journalists attempting to compare the incomparable — San Francisco and Los Angeles — and suggesting that somehow San Francisco is losing out in this artificially manufactured competition. Search as one might, no facts can be found to justify that assertion.”

Wahed and Jacobs have more in common than their optimism. Both seem to accept as more or less given the concept of San Francisco as the West Coast Manhattan.

Since the day Mayor Dianne Feinstein took office, she has run the city using essentially the policies and approach championed by Wahed and Jacobs. Before San Franciscans rush to elect a new mayor, they should examine those strategies to see if they make any sense. After nearly a decade under Feinstein’s leadership, is San Francisco a healthy city holding its own through a minor downturn or an economic disaster area? Are San Francisco’s economic problems purely the result of national and international factors, or has the Pacific Rim/West Coast Wall Street strategy failed? Is the economy weathering the storm because of the mayor’s policies, or despite them? And perhaps more important, will Feinstein’s policies guide the city to new and greater prosperity in the changing economy of the next decade? Or is a significant change long overdue?

The questions are clear and obvious. The answers take a bit more work.

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SAN FRANCISCO’S economy is an immensely complex creature, and no single study or analysis can capture the full range of its problems and potential. But after considerable research, we’ve come to a very different conclusion than the leading sages of the city’s business community. Yes, San Francisco can have a rosy economic future — if we stop pursuing the failed policies of the past, cut our losses now and begin developing a new economic development program, one based on reality, not images — and one that will benefit a broad range of San Franciscans, not just a handful of big corporations and investors.

Our analysis of San Francisco’s economy starts at the bottom. Wells Fargo, PG&E and the Chamber see the city first and foremost as a place to do business, a market for goods and a source of labor. We see it as a community, a place where people live and work, eat and drink, shop and play.

The distinction is far more than academic. When you look at San Francisco the way Wells Fargo does, you see a booming market: 745,000 people who will spend roughly $19.1 billion on goods and services this year, up from $15.4 billion in 1980. By the year 2000, Wahed projects, that market could reach $229 billion as the population climbs to 800,000 and per-capita income hits $30,000 (in 1986 dollars), up from $18,811 in 1980. Employment has grown from 563,000 in 1980 to 569,000 in 1986. When you look at San Francisco as a place to live, you see a very different story. Perhaps more people are working in San Francisco — but fewer and fewer of them are San Franciscans. In 1970, 57.47 of the jobs in San Francisco were held by city residents, City Planning Department figures show. By 1980, that number had dropped to 50.77. Although more recent figures aren’t available, it’s almost certainly below 507 today.

Taken from a slightly different perspective, in 1970, 89.17 of the working people in San Francisco worked in the city. Ten years later, only 857 worked in the city; the rest had found jobs elsewhere.

Without question, an increase in per capita income signifies that the city is a better market. It also suggests, however, that thousands of low-income San Franciscans — those who have neither the skills nor the training for high-paying jobs — have been forced to leave the city. It comes as no surprise, for example that San Francisco is the only major city in the country to post a net loss in black residents over the past 15 years.

The displacement of lower-income residents highlights a key area in which San Francisco’s economy is badly deficient: housing. San Francisco’s housing stock simply has not kept pace with the population growth of the past five years. Between 1980 and 1984, while nearly 40,000 more people took up residence in the city, only 3,000 additional housing units were built.

Some of the new residents were immigrants who, lacking resources and glad to be in the country on any terms, crowded in large numbers into tiny apartments. Some were young, single adults, who took over apartments, homes and flats, bringing five of six people into places that once held families of three or four.

But overall, the impact of the population increase has been to place enormous pressure on the limited housing stock. Prices, not surprisingly, have soared. According to a 1985 study prepared for San Franciscans for Reasonable Growth by Sedway Cooke and Associates, the median rent for a one-bedroom apartment in 1985 was $700 a month. The residential vacancy rate was less than 17.

Housing is more than a social issue. A report released this spring by the Association of Bay Area Governments warns the entire Bay Area may face a severe housing crisis within the next two decades — and the lack of affordable housing may discourage new businesses from opening and drive existing ones away. When housing becomes too expensive, the report states, the wages employers have to pay to offset housing and transportation costs make the area an undesirable place to do business.

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WAHED’S WELLS FARGO report shows a modest net employment gain in San Francisco between 1980 and 1986, from 563,000 jobs to 569,000. What the study doesn’t show is that the positive job growth statistic reflects the choice of the study period more than it reflects current trends. In the late 1970s and early 1980s, San Francisco experienced considerable job growth. By 1981, that trend was beginning to reverse.

According to a study by Massachusetts Institute of Technology researcher David Birch, San Francisco actually lost some 6,000 jobs between 1981 and 1985. The study, commissioned by the Bay Guardian, showed that the decline occurred overwhelmingly to large downtown corporations — the firms upon which the Pacific Rim strategy was and is centered. Since 1981, those firms have cost the city thousands of jobs. (See The Monsters that Ate 10,000 jobs, Bay Guardian DATE TKTKTK).

Some of the firms — B of A, for example — were victims of poor management. Some, like Southern Pacific, were caught in the merger mania of the Reagan years. Others, however, simply moved out of town. And no new giants moved in to take their places.

What drove these large employers away? Not, it would appear, a lack of office space or other regulatory “obstacles” to growth: Between 1980 and 1985, San Francisco underwent the largest building boom in its history, with more than 10 million square feet of new office space coming on line. In fact, the city now has abundant vacant space; by some estimates, the vacancy rate for downtown office buildings is between 157 and 207.

The decision to move a business into or out of a city is often very complicated. However, Birch, who has done considerable research into the issue, suggests in the April 1987 issue of Inc. magazine that the most crucial concerns are what he calls “quality of life” factors. Quality-of-life factors include things like affordable family housing for employees; easy, inexpensive transit options and good-quality recreation facilities and schools — and good-quality local government. In many cases, researchers are finding, companies that need a large supply of “back office” labor — that is, workers who do not command executive salaries — are moving to the suburbs, where people who are paid less than executive salaries can actually afford to live.

“Today the small companies, not the large corporations, are the engines of economic growth,” Birch wrote. “And more often than not, small companies are growing in places that pay attention to the public realm, even if higher taxes are needed to pay for it.”

For the past 20 years, San Francisco has allowed, even encouraged, massive new highrise office development, geared to attracting new headquarters companies and helping existing ones expand. In the process, some basic city services and public amenities — the things that make for a good quality of life — have suffered.

The most obvious example is the city’s infrastructure — the roads, sewers, bridges, transit systems and other physical facilities that literally hold a modern urban society together. A 1985 report by then-Chief Administrative Officer Roger Boas suggested that the city needed to spend more than $1 billion just to repair and replace aging and over-used infrastructure facilities. Wells Fargo’s report conceeds that that city may be spending $50 million a year too little on infrastructure maintenance.

Some of that problem, as Boas points out in his report, is due to the fact that many city facilities were built 50 or more years ago, and are simply wearing out. But wear and tear has been greatly increased by the huge growth in downtown office space — and thus daytime workplace population — that took place over the previous two decades.

To take just one example: Between 1980 and 1984, City Planning Department figures show, the number of people traveling into the financial district every day increased by more than 10,000. Nearly 2,000 of those people drove cars. In the meantime, of course, the number of riders on the city’s Municipal Railway also increased dramatically. City figures show more than 2,000 new Muni riders took buses and light rail vehicles into the financial district between 1981 and 1984. Again, city officials resist putting a specific cost figure on that increase — however, during that same period, the Muni budget increased by one-third, from $149 million to $201 million. And the amount of General Fund money the city has had to put into the Muni system to make up for operating deficits rose by some 737 — from $59 million to $102 million.

The new buildings, of course, have meant new tax revenues — between 1981 and 1986, the total assessed value of San Francisco property — the city’s tax base — increased 767, from $20.3 billion to $35.8 billion. But the cost of servicing those buildings and their occupants also increased 437, from $1.3 billion to to $1.9 billion. In 1982, San Francisco had a healthy municipal budget surplus of $153 million; by this year, it was down to virtually nothing.

The city’s general obligation bond debt — the money borrowed to pay for capital improvements — has steadily declined over the past five years, largely because the 1978 Jarvis-Gann tax initiative effectively prevented cities from selling general obligation bonds. In 1982, the city owed $220 million; as of July 1st, 1987, the debt was down to $151 million.

However, under a recent change in the Jarvis-Gann law, the city can sell general obligation bonds with the approval of two-thirds of the voters. The first such bond sale — $31 million — was approved in June, and the bonds were sold this month, raising the city’s debt to $182 million. And this November, voters will be asked to approve another $95 million in bonds, bringing the total debt to $277 million, the highest level in five years.

The city’s financial health is still fairly sound; Standard and Poor’s gives San Francisco municipal bonds a AA rating, among the best of any city in the nation. And even with the new bonds, the ratio of general obligation debt to total assessed value — considered a key indicator of health, much as a debt-to-equity ratio is for a business — is improving.

But the city’s fiscal report card is decidedly mixed. For most residents, signs of the city’s declining financial health show up not in numbers on a ledger but in declining services. Buses are more crowded and run less often. Potholes aren’t fixed. On rainy days, raw sewage still empties into the Bay. High housing costs force more people onto the streets — and the overburdened Department of Social Services can’t afford to take care of all of them.

What those signs suggest is that, in its pell-mell rush to become the Manhattan of the West, San Francisco may have poisoned its quality of life — and thus damaged the very economic climate it was ostensibly trying to create.

MAYOR DIANNE FEINSTEIN’S prescription for San Francisco’s economic problems and her blueprint for its future can be summed up in four words: More of the same. Feinstein, like Wells Fargo, PG&E and the Chamber of Commerce, is looking to create jobs and generate city revenues from the top of the economy down. Her program flies in the face of modern economic reality and virtually ignores the changes that have taken place in the city in the past five years.

Feinstein’s most visible economic development priorities have taken her east, to Washington D.C., and west, to Japan and China. In Washington, Feinstein has lobbied hard to convince the Navy to base the battleship USS Missouri in San Francisco. That, she says, will bring millions of federal dollars to the city and create thousands of new jobs.

In Asia, Feinstein has sought to entice major investors and industries to look favorably on San Francisco. She has expressed hope that she will be able to attract several major Japanese companies to set up manufacturing facilities here, thus rebuilding the city’s manufacturing base and creating jobs for blue-collar workers.

Neither, of course, involves building new downtown highrises. But both are entirely consistent with the Pacific Rim strategy — and both will probably do the city a lot more harm than good.

Feinstein’s programs represent an economic theory which has dominated San Francisco policy-making since the end of World War II. In those days, the nation’s economy was based on manufacturing — iron ore from the ground became steel, which became cars, lawn mowers and refrigerators. Raw materials were plentiful and energy was cheap.

By the early 1970s, it was clear that era was coming to a close. Energy was suddenly scarce. Resources were becoming expensive. The economy began to shift gears, looking for ways to make products that used less materials and less energy yet provided the same service to the consumer.

Today, almost everyone has heard of the “information age” — in fact, the term gets used so often that it’s begun to lose its meaning. But it describes a very real phenomenon; Paul Hawken, the author of The Next Economy, calls it “ephemeralization.” What is means is that the U.S. economy is rapidly changing from one based manufacturing goods to one based on processing information and providing services. In the years ahead, the most important raw materials will be ideas; the goal of businesses will be to provide people with useful tools that require the least possible resources to make and the least possible energy to use.

In the information age, large companies will have no need to locate in a central downtown area. The source of new jobs will not be in manufacturing — giant industrial factories will become increasingly automated, or increasingly obsolete. The highways of the nation’s commerce will be telephone lines and microwave satellite communications, not railroads and waterways.

IF SAN FRANCISCO is going to be prepared for the staggering changes the next economy will bring, we might do well to take a lesson from history — to look at how cities have survived major economic changes in the past. Jane Jacobs, the urban economist and historian, suggests some basic criteria.

Cities that have survived and prospered, Jacobs writes, have built economies from the bottom up. They have relied on a large number of small, diverse enterprises, not a few gigantic ones. And they have encouraged business activities that use local resources to replace imports, instead of looking to the outside for capital investment.

A policy that would tie the city’s economic future to the Pentagon and Japanese manufacturing companies is not only out of synch with the future of the city’s economy — it’s out of touch with the present.

In San Francisco today, the only major economic good news comes from the small business sector — from locally owned independent companies with fewer than 20 employees. All of the net new jobs in the city since 1980 have come from such businesses.

Yet, the city’s policy makers — especially the mayor — have consistently denied that fact. As recently as 1985, Feinstein announced that the only reason the city’s economy was “lively and vibrant” was that major downtown corporations were creating 10,000 new jobs a year.

Almost nothing the city has done in the past ten years has been in the interest of small business. In fact, most small business leaders seem to agree that their astounding growth has come largely despite the city’s economic policy, not because of it. That situation shows no signs of changing under the Feinstein administration; the battleship Missouri alone would force the eviction of some 190 thriving small businesses from the Hunters Point shipyard.

San Francisco’s economic problems have not all been the result of city policies. The financial health of the city’s public and private sector is affected by state and federal policies and by national and international economic trends.

Bank of America, for example, is reeling from the inability of Third World countries to repay outstanding loans. Southern Pacific and Crocker National Bank both were victims of takeovers stemming from relaxed federal merger and antitrust policies. In fact, according to Wells Fargo, 21 San Francisco corporations have been bought or merged since 1975. Meanwhile, deep cutbacks in federal and state spending have crippled the city’s ability to repair its infrastructure, improve transit services, build low cost housing and provide other essential services.

To a great extent, those are factors outside the city’s control. They are unpredictable at best — and over the next ten or 20 years, as the nation enters farther into the Information Age, the economic changes with which the city will have to cope will be massive in scale and virtually impossible to predict accurately.

Again, the experiences of the past contain a lesson for the future. On of San Francisco’s main economic weaknesses over the past five years has been its excess reliance on a small number of large corporations in a limited industrial sector — largely finance, insurance and real estate. When those industries took a beating, the shock waves staggered San Francisco.

Meanwhile, the economic good news has come from a different type of business — businesses that were small able to adapt quickly to changes in the economy and numerous and diverse enough that a blow to one industry would not demolish a huge employment base.

But instead of using city policy to encourage that sector of the city’s economy, Feinstein is proposing to bring in more of the type of business that make the city heavily vulnerable to the inevitable economic shocks that will come with the changes of the next 20 years.

THE CANDIDATES who seek to lead the city into the next decade and the next economy will need thoughtful, innovative programs to keep San Francisco from suffering serious economic problems. Those programs should start with a good hard dose of economic reality — a willingness to understand where the city’s strengths and weaknesses are — mixed with a vision for where the city ought to be ten and 20 years down the road.

Thus far, both are largely missing form the mayoral debate.

For years, San Francisco activists and small business leaders have been complaining about the lack of reliable, up-to-date information on the city’s economy and demographics. The environmental impact report on the Downtown Plan — a program adopted in 1985 — was based largely on data collected in 1980. That same data is still used in EIRs prepared by the City Planning Department, and it’s now more than seven years out of date.

In many areas, even seven-year-old data is simply unavailable. Until the Bay Guardian commissioned the Birch studies in 1985 and 1986, the city had no idea where jobs were being created. Until SFRG commissioned the Sedway-Cooke report in 1985, no accurate data existed on the city’s labor pool and the job needs of San Franciscans.

Today, a researcher who wants to know how much of the city’s business tax revenue comes from small business would face a nearly impossible task. That’s just not available. Neither are figures on how much of the city’s residential or commercial property is owned by absentee landlords who live outside the city. If San Francisco were a country, what would its balance of trade be? Do we import more than we export? Without a huge research staff and six months of work, there is no way to answer those questions.

Bruce Lilienthal, chairman of the Mayor’s Small Business Advisory Commission, argues that the city needs to spend whatever money it takes to create a centralized computerized data base — fully accessable to the public — with which such information can be processed and analyzed.

A sound economic policy would combine that sort of information with a clear vision of what sort of city San Francisco could and should become.

What would a progressive, realistic economic development platform look like? We’ve put together a few suggestions that could serve as the outline for candidates who agree with our perspective — and as an agenda for debate for candidates who don’t.

* ADEQUATE AFFORDABLE HOUSING is essential to a healthy city economy, and in the Reagan Era, cities can’t count on federal subsidies to build publicly financed developments. Progressive housing experts around the country agree that, in a city under such intense pressure as San Francisco, building new housing to keep pace with demand will not solve the crisis alone; the city needs to take action to ensure that existing housing is not driven out of the affordable range.

Economist Derek Shearer, a professor at Occidental College in Los Angeles and a former Santa Monica planning commissioner, suggests that municipalities should treat housing as a scarce public resource, and regulate it as a public utility. Rents should be controlled to allow property owners an adequate return on their investment but prevent speculative price-gouging.

Ideally, new housing — and whenever possible, existing housing — should be taken out of the private sector altogether. Traditional government housing projects have had a poor record; a better alternative is to put housing in what is commonly called a land trust.

A land trust is a private, nonprofit corporation that owns property, but allows that property to be used under certain terms and conditions. A housing trust, for example, might allow an individual or family to occupy a home or apartment at a set monthly rate, and to exercise all rights normally vested in a homeowner — except the right to sell for profit. When the occupant voluntarily vacated the property, it would revert back to the trust, and be given to another occupant. The monthly fee would be set so as to retire the cost of building the property over it’s expected life — say, 50 years. Each new occupant would thus not have to pay the interest costs on a new mortgage. That alone, experts say, could cut as much as 707 off the cost of a home or apartment.

* DEVELOPMENT DECISIONS should be made on the basis of community needs. A developer who promises to provide jobs for San Franciscans should first be required to demonstrate that the jobs offered by project will meet the needs of unemployed residents of the city. Development fees and taxes should fully and accurately reflect the additional costs the project places on city services and infrastructure.

Land use and development decisions should also be geared toward meeting the needs of small, locally owned businesses — encouraging new start-ups and aiding the expansion of existing small firms.

* ECONOMIC DEVELOPMENT programs should encourage local firms to use local resources in developing products and services that bring revenue and wealth into the city instead of sending it to outside absentee owners and that encourage economic self-sufficiency.

Cities have a wide variety of options in pursuing this sort of goal. City contracts, for example, should whenever possible favor locally owned firms and firms that employ local residents and use local resources. Instead of just encouraging sculptured towers and flagpoles on buildings, city planning policies should encourage solar panels that decrease energy imports, rooftop gardens that cut down on food imports and utilize recycled materials that otherwise would become part of the city’s garbage problem. (Using recycled materials is by no means a trivial option; if all of the aluminum thrown away each year in San Francisco were recycled, it would produce more usable aluminum than a small-to-medium sized bauxite mine.)

Other cities have found numerous ways to use creative city policies to encourage local enterprise. In Minneapolis-St. Paul, for example an economic development agency asked the U.S. Patent Office for a list of all the patents issued in the past ten years to people with addresses in the Twin Cities area. The agency contacted those people — there were about 20 — and found that all but one had never made commercial use of the patents, largely for lack of resources. With the agency as a limited partner providing venture capital, more than half the patent owners started businesses that were still growing and expanding five years later. Some of those firms had actually outgrown their urban locations and moved to larger facilities out of town — but since the Twin Cities public development agency had provided the venture capital, it remained a limited partner and the public treasury continued to reap benefits from the profits of the businesses that had left town.

* CITY RESOURCES should be used to maximize budget revenues. For example, San Francisco currently owns a major hydroelectric power generating facility at Hetch Hetchy in Yosemite National Park. A federal law still on the books requires San Francisco to use that facility to generate low-cost public power for its citizens; that law, the Raker Act, has been honored only in the breach. That means every year PG&E takes millions of dollars in profits out of San Francisco (the company is based here, but very few of its major stockholders are San Franciscans). The last time we checked, San Francisco was losing $150 million (CHECK) in city revenue by failing to enforce the Raker Act and municipalize its electric utility system.

Meanwhile, PG&E continues to use city streets and public right-of-ways for its transmission cables at a bargain-basement franchise fee passes in 1932 and never seriously challenged. Other highly profitable private entities, like Viacom cable television, use public property for private purposes and pay highly favorable rates for the right.

Those ideas should be the a starting point, not a conclusion for mayoral debates. But thus far, we’ve seen precious little consideration of the issues, much less concrete solutions, from any of the candidates.

The mayor’s race, however, is still very much open, and the candidates are sensitive to public opinion. If the voters let the candidates know that we want to hear their visions of the city’s economic future — and their plans for carrying those visions out — we may see some productive and useful discussions yet.*

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