› lynn@sfbg.com
If you think about it, there’s a certain poetry to the dramatic arc of the fall premiere season. As we all know, after fall comes winter, and by December many of these TV shows will be dead, with just a few dried-up blog entries left behind to mark their passing. This painful thought might provoke a zealous couch fan to get carried away — watching every last debut to hit the networks while staying faithful to old favorites from seasons past. And granted, certain shows, like the well-cast Six Degrees, with Campbell Scott, Hope Davis, and Jay Hernandez (premiering Sept. 21 on ABC), or Showtime’s Dexter, starring Michael C. Hall (Six Feet Under) as a serial killer with the best of intentions (premiering in October), deserve at least a shot at some viewers.
But even the Guinness record (69 hours and 48 minutes) proves there are limits to how much TV one human being can watch — though apparently there are no limits to how many dramas based on the premise of 24 can be developed in one season. Choices must be made — between, say, the NBC comedy about a late-night sketch comedy show starring SNL’s Tina Fey and Alec Baldwin and the NBC drama about a late-night sketch comedy show starring Matthew Perry, Amanda Peet, and Bradley Whitford and created and written by Aaron Sorkin (Sports Night, The West Wing). What follows are notes from a highly subjective decision-making process. Show info is subject to change.
Studio 60 on the Sunset Strip vs. 30 Rock Aaron Sorkin’s writing is pretty much why I started watching television again, and I’m still not over Sports Night’s 2000 cancellation. Thus, in the face-off between shows about sketch-comedy shows, his creation, Studio 60, will no doubt reign supreme. Bradley Whitford from The West Wing stars alongside Amanda Peet and Matthew Perry — and while the latter actor certainly wasn’t the least annoying of Friends’ friends, a guest spot on The West Wing proved his Chandler mannerisms haven’t completely devoured him. (Studio 60 on the Sunset Strip: Mon., 10 p.m., NBC; premieres Sept. 18. 30 Rock: Wed., 8:30 p.m., NBC; premieres Oct. 11)
Vanished vs. Veronica Mars Having spent five years watching Gale Harold plug every available male extra in greater Toronto as Queer as Folk’s surly stud Brian Kinney, I’m tempted to get invested in his character’s FBI investigation of a disappeared senator’s daughter. The thing is, even if he does get to play another unapologetic asshole, he will likely have clothes on. So will Kristen Bell in Veronica Mars, but the latter show, about a smart-ass teen private investigator engaged in all kinds of class warfare, was easily the best high school drama since My So-Called Life, while in a vastly different vein. The sleuth is university bound now, and higher education is clearly a death knell for teen dramas, but I’m betting Veronica won’t let her studies get in the way. (Vanished: Mon., 9 p.m., Fox; premiered Aug. 21. Veronica Mars: Tues., 9 p.m., CW; premieres Oct. 3)
The O.C. vs. Dante’s Cove They may seem like an odd couple, but both The O.C. and Dante’s Cove feature melodramatic sexual entanglements, power tripping, drug addiction, and expensive real estate. The O.C. may have a slight advantage in terms of plotlines and thespian talent, but c’mon: Dante’s Cove, part of Here!’s all-queer programming, has real live gay people, a private sex club — and black magic! Also, I get how satisfying it must have been to finally off the waif with suicidal tendencies, but with Marissa in the grave, The O.C. is likely to become so bearable it’s boring. (The O.C.: Thurs., 9 p.m., Fox; premieres Nov. 2. Dante’s Cove: Fri., check for times, Here!; premieres Sept. 1)
One Tree Hill vs. Friday Night Lights The infant love child of UPN and the WB fashioned a glaringly lowest-common-denominator ad campaign whose thought-provoking tagline for One Tree Hill was “Free to be cool.” And yet, I breathed a deep sigh of relief on learning that the show, basically about a small town that loves its basketball and the dramas that ensue, had survived the merger and gained entrance to the freedom-loving land of the CW. Friday Night Lights, based on the movie that’s based on the book, is about a small town that loves its football and the dramas that ensue. A toughie, but I hate football, so for me One Tree has the home court advantage — plus the laser-beam-eyed power-acting of Chad Michael Murray. (One Tree Hill: Wed., 9 p.m., CW; premieres Sept. 27. Friday Night Lights: Tues., 8 p.m., NBC; premieres Oct. 3)
Prison Break vs. Runaway Maybe it all goes back to my deep, abiding love for The Legend of Billie Jean, but dramas about desperate people on the run from the law have a near-endless ability to captivate me. Prison Break has the hot brothers. CW debut Runaway looks to have more of a Running on Empty family dynamic — with New Kids on the Block’s Donnie Wahlberg in the Judd Hirsch role. Both hint vaguely at possible political undertones. Mostly for River Phoenix’s sake, I’m going to go with the latter. (Prison Break: Mon., 8 p.m., Fox; premiered Aug. 21. Runaway: Mon., 9 p.m., CW; premieres Sept. 25)
Jericho vs. Three Moons over Milford Jericho has Skeet Ulrich and a nuclear holocaust on the horizon. Three Moons has, well, three moons — or parts of what used to be one moon — and one or more of them might be heading this way. The end (of the season, that is) will be in sight for the latter sooner, which is good, because how many times a week can a person watch the world teeter on the brink of collapse? (Jericho: Wed., 8 p.m., CBS; premieres Sept. 20. Three Moons over Milford: Sun., 8 p.m., ABC Family; premiered Aug. 6)
Project Runway (reruns) vs. Fashion House The community-minded thing to do, no doubt, would be to support KRON TV’s efforts to add dramatic content to its programming. After all, Fashion House, a six-nights-a-week telenovela-style program about the fashion industry starring Morgan Fairchild and Bo Derek, should just about do the trick. And yet, even after Project Runway’s latest season ends later this fall, I’m probably going to find other uses for those six hours — including renting back episodes of the show that makes it work. (Project Runway: Bravo; your local video store. Fashion House: Mon.–Sat., 10 p.m., KRON; premieres Sept. 5) SFBG
Real Estate
Fall TV death match
Eureka! There’s more Eurekaism!
What happens to the news when the conglomerati corner the Bay Area newspaper market
By Bruce B. Brugmann (B3)
As you will remember from my last blog, I unveiled the term Eurekaism to replace the term Afghanistanism for the bad habit of many daily papers to cover stories in Eureka, but not the local big scandal or embarrassing stories in their hometowns.
Well, as I was pedaling away this morning on my cardio machine at the World Gym,
I turned as usual in the Hearst-owned Chronicle to find the day’s real Eureka style news: the second page of the business section under the Daily Digest section. Today, surprise, surprise, the Eureka story was below the fold with a nicely disguised head that read: “State won’t challenge newspaper sale.”
Eureka! There was a rummy little five paragraph story that announced a major new development in the major running story of the emerging new regional media megaconglomerate (Hearst/MediaNews Group/Singleton/Gannett/Stephens/McClatchy). The development: Atty. Gen. Bill Lockyer announced that his office will not take antitrust action over the McClatchy sale of the San Jose Mercury-News and Contra Costa Times to Singleton, but that he would investigate a three-way transaction between the companies and Hearst. The story quoted Lockyer as saying without blushing in his standard line to remove-all-pebbles-from-any-impending consolidation: “It does not appear that these transactions will result in a substantial reduction in competition,” though most everyone in the Bay Area knows otherwise. It is a major story that ought to be regularly covered on the front pages of all the papers, with context, perspective, outside expert opinion, mainstreet commentary, and some tough questions of Lockyer. But the megaconglomerate is either censoring, trivializing or burying the story with axe and shovel.
For example, the Chronicle story was not a Chronicle story, but a Reuters wire service story datelined New York (we pulled down the Reuters story from the Reuters website.) The difference between the Reuters and Chronicle stories was telling: Reuters had a better head, “California Oks McClatchy-MediaNews paper sale,” while the Chronicle left out the local Hearst angle. The Chronicle also cut out five key paragraphs from the Reuters story, notably three that made some embarrassing points:
“The move would result in MediaNews owning most of the largest dailies in the area, including the Oakland Tribune. Hearst owns the San Francisco Chronicle.
“San Francisco-based real estate investor Clint Reilly had filed an injunction to halt McClatchy’s sale of San Jose Mercury News, Contra Costa Times and Monterey Herald.
“He argued the sale would put all three California in a partnership controlled by MediaNews and including Gannett Co. Inc. and privately held Stephens Media Group, therefore reducing competition and harm (sic) advertisers and readers…”
Meanwhile, on the Contra Costa Times, George Avalos wrote a misleading three paragraph story that the “state decision clears away the final regulatory impediment to the MediaNews purchase of the Bay Area papers.” No mention of the continuing Hearst/Singleton investigation nor the
Reilly suit.
Down at the Mercury-News, an unbylined story buried the AG’s statement in the last two paragraphs of a five paragraph story trumpeting the new four man team that will run the nation’s “4th biggest newspaper chain.” No mention of the Reilly suit nor the continuing Hearst investigation.
And what happens on a paper not owned by any of the conglomerati? The headline on the East Bay Business Times got it right: “Attorney General continues to look at Hearst deal.”
I repeat: show me a paper owned by any of the Hearst/MediaNews/Singleton/Gannett/Stephens/McClatchy papers that is really covering the story. Alas, the links below indicate the pattern of how badly they are covering the story. (At the time of this writing, we couldn’t find the Hearst story on the Chronicle website.)
Coming next: Let’s play Eureka!! B3
The judge misses the point
EDITORIAL The federal judge who allowed the largest media merger in Northern California history to go forward unimpeded did what far too many judges do in cases like this: she ruled narrowly on the tightest definition of the law and missed the overall point entirely. Judge Susan Illston rejected a bid by San Francisco real estate investor Clint Reilly to block Denver billionaire Dean Singleton’s effort to buy virtually every daily newspaper in the Bay Area and set up an unprecedented media monopoly. Reilly had sought an injunction against the deal, arguing that once it’s approved there will be no way to halt the obvious damage. Illston noted that Reilly had raised “serious questions” and agreed that there’s “a need to examine the proposed sale to ensure that no long-term harm will come to Bay Area residents.” But she insisted in a 16-page opinion that the deal posed no “pressing and imminent danger.” Wait: no imminent danger? One person could soon control every single significant news media outlet in the entire Bay Area save for the Hearst-owned San Francisco Chronicle — which also has a financial partnership with Singleton. What does Illston expect? That a year or two down the road, when residents of the region find themselves without any credible local newspapers and advertisers find nothing but high monopoly rates, someone can reexamine this and find that it was a bad idea? That’s silly. The time to put the deal on hold and address Illston’s “serious questions” is now, before it’s too late. Nobody will be able to unscramble this egg. But Illston didn’t get that at all. Instead, she ruled that the real threat of great harm was to the defendants — the billionaire publisher and his business associates. Actually, they face no risk of harm at all — except for the threat to their ability to make obscene profits by gutting newsrooms, combining operations, and tearing the heart out of Bay Area journalism. This is how Singleton, known (for good reason) as “Lean Dean,” operates. He likes what he calls “clusters” of papers — groups of newspapers in adjoining geographic areas. He centralizes as many functions as possible, reduces staff to the minimum necessary, then sits back and watches the cash roll in. In the Bay Area, that will probably mean that the big, expensive newsrooms of papers like the San Jose Mercury News and the Contra Costa Times will be pared down, perhaps merged into a single operating center. The various papers will share stories, so there won’t be much difference (or competition) between them. Old-fashioned concepts like investigative and enterprise reporting, which require time and resources, will disappear. None of this requires a law degree and a judicial robe to comprehend. It’s been happening all over the country; Singleton’s record is clear. Of course, it didn’t help that Reilly was all alone on this, a single local businessperson trying to block a massive media merger that the state and federal governments are apparently ready to approve with only cursory examination. The outcome might have been very different if Attorney General Bill Lockyer had appeared before Illston representing the state of California. But Lockyer is sitting on his hands — and the US Justice Department just announced that it won’t pursue the matter and is going to allow the merger to proceed (see www.sfbg.com). This doesn’t have to be the end of the case, by any means. Reilly can and should go forward with his suit as aggressively as possible. And Lockyer, who is running for state controller, and Jerry Brown, who is running for attorney general, need to stop ducking this issue and take a firm stand against the merger. SFBG PS All of the papers involved in the merger covered the ruling, but none of them quoted outside experts critical of Illston’s decision or critical of the merger itself. Bruce B. Brugmann, Guardian editor and publisher, posted some key questions for the publishers on his Bruce Blog at www.sfbg.com; here are some of them: Why, if Hearst and the publisher participants feel they can’t cover themselves, don’t they get quotes from journalism or law professors at nearby UC Berkeley, Cal State Hayward, Stanford, San Jose State, SF State, USF? Why don’t they check with other independent experts such as Ben Bagdikian of The Media Monopoly fame, who is living in Berkeley? Why don’t they quote union representatives at the Chronicle and Merc? Why don’t they quote the congressional delegation that called on the Department of Justice and the attorney general to carefully scrutinize the sale? Why don’t they call on Sup. Ross Mirkarimi, who introduced a local resolution opposing the sale, or any of the other supervisors who approved it unanimously? Why is it left to the handful of remaining independent voices to raise these critical questions? PPS Now that the investigation is closed, we’ve asked the Justice Department to release its full investigative file. We hope all the local daily publishers, who love to talk about open government, will support our request. Read the Alioto Legal Documents: Complaint.pdf Gannett-Stephens_Opp_to_ TRO.pdf Hearst_Opp_to_TRO.pdf McClatchy_opp_to_TRO.pdf MediaNews-Calif_Newspaper_Partnership_Opp_to_TRO.pdf Memo-Supp_of_Mtn_for_TRO.pdf Order_denying_TRO.pdf Plaintiff’s_Reply_to_Mtn_for_TRO.pdf
Monstrous politics
› monster@techsploitation.com
TECHSPLOITATION I didn’t want to see it, and then I did. When Pirates of the Caribbean: Dead Man’s Chest came out, I was beyond underwhelmed. But then the box office numbers started rolling in — it was the biggest weekend take in movie history — and I was intrigued. I kept wondering how Johnny Depp’s prancing pirate Jack Sparrow could pack more punch than square-jawed Superman. After seeing the flick, the answer was obvious.
Jack Sparrow lives in a world of magic and monsters, a place where half-fish zombies stalk the seas in a mysterious ship and a giant kraken fells merchant vessels with fat, sucker-covered tentacles. His greatest enemies are Davy Jones, an undead sea captain with a squid for a head, and the British East India Company. How can Superman’s boring domestic troubles and a bald, Method-acting real estate mogul ever hold a candle to that? Metropolis is drably realistic compared with Jack’s South Seas. And yet the films’ supreme enemies do have a lot in common. The British East India Company and Lex Luthor’s real estate firm are both ruthless corporate enterprises whose owners mow down human life in search of bigger profits.
It’s only in an overt fantasy like Pirates, however, that we get a story capable of capturing the full horror of uncontrolled corporate greed. Representing Halliburton-size evil is a toady for the British East India Company, who coerces hero Will Turner into hunting down Jack to get the pirate’s magical compass, which points the way to whatever its owner desires. In exchange for this perfect colonizing tool — essentially, a never-ending source of information about where the raw materials are — the king of England promises to grant Jack a full pardon and make him a privateer.
But Jack is a true pirate. He steals and swashbuckles for the love of it and has no interest in working for a boss. Instead of selling out to the British East India Company, he faces down Davy Jones and his zombie crew, who are cursed to spend their afterlives working under the iron discipline of their tentacled captain. As they get older, they literally merge with the ship itself, melting into the wood until they are just flattened, grimacing faces poking out of the bulkheads. Fleeing the British East India Company’s brand of domination, Jack falls right into the path of a boss whose monstrousness mirrors it.
Of course, this is also just a movie about people fighting monsters with goo and suckers and claws. And that’s what makes Pirates both fun to watch and fun to endlessly analyze. Monster stories leave room for interpretation; they allow us to tell stories that are subversive, that question why we should have to take shitty jobs and respect corporate power. At least, some monster stories do.
I just finished writing a book that’s all about how monster stories in the United States reflect often-buried fears about capitalism run amok. The book is called Pretend We’re Dead: Capitalist Monsters in American Pop Culture, and you can actually buy the damn thing now. It’s in bookstores and on Amazon and crap like that. I don’t want to tell you how long it took me to write, but suffice it to say that before I became a tech and science geek, I was a horror and science fiction geek.
The weird thing is that I learned to excavate the cultural meaning of real-life technologies by analyzing movies about imaginary ones. That’s because the process of innovation is nearly identical to the process of dreaming up a monster. Just as new devices like the iPod or TiVo respond to changes in social norms, so too do our fantasies. I mean, it’s no accident that a horror movie like The Ring came out during the heyday of file sharing. Let’s think about it — the flick is about a haunted videocassette that will kill you unless you make a duplicate copy and show it to somebody else. It’s like a nightmare analog version of BitTorrent. If you do not share your media, you will die. Creative Commons really should do a cartoon parody of The Ring.
There will always be people who want to consume their electronic toys and mass media without having to think about what they mean. Sometimes they’ll even claim that there are no politics of science fiction — or science — because politics only take place in Congress or at the United Nations. But I say that until we understand the monsters in our dreams, we’ll never defeat the ones who run the world. SFBG
Annalee Newitz is a surly media nerd who just published a book — w00t!
Come hear her read from it (and enter a B-movie trivia contest): Thurs/27, 7 p.m., City Lights Bookstore, 261 Columbus, SF. (415) 362-8193, www.citylights.com.
The case against the media grab
EDITORIAL The last time real estate investor Clint Reilly took the local newspapers to court in 2000, the trial was a sensation. Among other things, Tim White, who was at the time the publisher of the San Francisco Examiner, admitted that he had offered to give then-mayor Willie Brown more favorable editorial coverage if Brown would help squelch a Justice Department investigation into an Examiner-Chronicle financial deal.
The so-called “horse-trading” testimony brought to light one of the giant lies of the daily newspaper business in San Francisco and proved that the out-of-town owners of these papers care more about profits than honest journalism.
Back then, the deal involved Hearst Corp., which owned the Examiner, wanting to buy the Chronicle. The idea was to shut down the Ex, eliminate a 35-year-long joint operating agreement, and create a daily paper monopoly. The Justice Department hemmed and hawed a bit, then (thanks to Brown and Sen. Dianne Feinstein) agreed to a backroom deal: Hearst would give the Ex to the Fang family (along with a juicy three-year, $66 million subsidy), and the federal regulators would get out of the way.
Reilly’s suit was a tremendous public service, shining light on parts of the newspaper business that the big publishers always try to keep secret. In the end the suit went down, dismissed by a conservative federal judge, Vaughn Walker, who nevertheless called the whole Hearst-Fang-Chronicle deal “malodorous.”
Now there’s another, much bigger newspaper deal in the Bay Area, one that would create a far bigger and more powerful news monopoly — and once again, while the government regulators dither and duck, Reilly is taking the matter to court.
The unholy arrangement in question would give Denver media baron Dean Singleton and his Media News Group (in partnership with Gannett and Stephens Media) control over virtually every daily newspaper in the Bay Area [see “Singleton’s Monopoly,” 5/6/06]. Singleton, who already owns the Marin Independent Journal and the Oakland Tribune (among others), is buying the San Jose Mercury News, Contra Costa Times, Monterey Herald, and some 30 other small dailies.
That would leave the Chronicle as the only real competitor, but Hearst, which now owns the Chron, is in the deal too, helping finance some of Singleton’s out-of-state purchases in exchange for a stake in the business.
Reilly, represented by antitrust lawyer Joseph Alioto, argues that the whole thing violates the Sherman and Clayton antitrust acts and would lead to an illegal consolidation of market power for one newspaper owner. It would also, of course, lead to an unprecedented consolidation of local political power for a conservative Denver billionaire. Reilly wants an immediate injunction to put the merger on hold while the courts can determine how bad its impacts will be.
Three cheers for Reilly: Somebody had to question this massive media scandal — and so far, there’s no sign that the government is going to. The US Justice Department is doing nothing to aggressively fight (or even delay) the deal, and we’ve heard nothing out of the office of Attorney General Bill Lockyer.
The damage that this newspaper consolidation could do is long lasting and irreparable: Once the papers are all fully integrated under the Singleton umbrella, there will be no way to unscramble the egg. That’s why the court should quickly approve Reilly’s request for a temporary restraining order so the whole thing can be examined in detail, in public, before a judge.
Meanwhile, the political questions keep flowing: Where is Lockyer? Where is Oakland mayor Jerry Brown, who wants to be the next state attorney general? And where is the supposedly competitive Chronicle, which has said nary a word against the deal?
PS: The news coverage of Reilly’s suit reflects how poorly the daily papers cover themselves: Just tiny press-release-style reports, with no outside sources, no indication of how crucial the issues are, and no aggressive reporting. It reminds us of how the papers covered Sup. Ross Mirkarimi’s resolution opposing the deal: Guardian editor and publisher Bruce B. Brugmann hand-carried a copy of the resolution to the Chronicle reporters in the press room. The paper never ran a story. SFBG
To see a copy of the Reilly lawsuit, go to www.sfbg.com. For all the inside details on the deal, check out knightridderwatch.org.
Pelosi sold us out
OPINION The recent Guardian editorial was absolutely correct in its analysis of development in the Presidio: San Francisco “wound up with the worst of all worlds” [“Playing Hardball in the Presidio,” 7/12/06]. Essentially it was Rep. Nancy Pelosi who created the all-powerful, arrogant, and unaccountable Presidio Trust to simply have its way with the conversion of the park, one of most breathtaking, inspiring pieces of real estate in the world, situated right here in our own front yard.
The voices of San Franciscans hoping to inject any conscience into the transition process of the military base into a national park have been basically ignored from the beginning; any opinions expressed at the mandated community hearings that did not fit in with the trust’s plans counted for nothing.
Many will remember that in January 1996 Religious Witness with Homeless People launched a campaign to preserve the Presidio’s roughly 1,900 housing units and make them available to San Franciscans of all economic levels. We specifically targeted the 466 units of former military family housing and tried to have those set aside for homeless individuals and families and other low-income members of our community. This powerful campaign extended over a period of almost three years and was actively supported in a variety of ways by a diverse collection of at least 237 organizations and more than 1,700 individuals in San Francisco, including then-mayor Willie Brown and other elected city officials. But even the powerful, united voice of this campaign was haughtily disregarded by the seven members of the Presidio Trust, all with the smiling blessing of Pelosi.
The ultimate step taken by our campaign to secure the availability of the housing for our city, which even then suffered a crisis in the lack of affordable housing, was to place a measure on the 1997 ballot. Proposition L stated that unless the Presidio Trust made housing available to San Franciscans of all economic levels, the city would withhold the nonemergency services so desperately needed by the Presidio in order to function.
The passage of Prop. L provided the powerful leverage needed to achieve our goal. We had no reason to suspect that Mayor Brown, who had strongly, consistently, and publicly supported our campaign and the passage of Prop. L, would betray us.
However, shortly after the passage of Prop. L, Brown simply gave the trust the public services it needed. This was a betrayal of hundreds of men and women living on our streets, and the 93,002 voters who favored the proposition.
Throughout our three-year campaign, Pelosi, the National Park Service, and the Presidio Trust repeated the mantra: “The National Park Service is not in the business of providing housing.” How hypocritical, then, are the trust’s current plans to build hundreds of housing units in the Presidio, even as its seven nonelected members continue to arrogantly ignore the expressed concerns of the neighboring communities? That’s what happens when the guiding force is money instead of social and environmental concerns.
What was once a dream for San Franciscans has become a nightmare. It happened as Pelosi stood firmly with the Presidio Trust as it created an elite city within our city. But the plans are not yet fully implemented, and San Franciscans still have a chance to put a stop to the Presidio Trust’s most recent assault on our community. SFBG
Sister Bernie Galvin
Sister Bernie Galvin is the director of Religious Witness with Homeless People.
{Empty title}
› tredmond@sfbg.com
It’s your Guardian. That’s the message we posted on the cover today, and I mean it: The new sfbg.com website is designed to be fully interactive. You can post your comments on every article, every review, every editorial. You can join in on five new blogs. In a few weeks, we’ll have a reader’s blog, just for you.
Newspaper publishing should never be a one-way communication. For more than 20 years, I’ve been hearing from readers (yeah, I answer my own phone), and your ideas and suggestions (and complaints) are what make this paper great.
And now you can share your thoughts with all the other readers, too. Argue, fight, tell me I’m full of shit, point out great San Francisco ideas that ought to be in the mix … It’s easy. Registration takes about 30 seconds. And keep coming back – there’s going to be more, much more, rolling out in the next few weeks.
……………………………………………………………………………………………………………
The first thing I did when I learned that private housing developers in San Francisco were demanding 28 percent profit levels (see page 5) was to call my brother Mike, who runs a small business building houses in New York. He almost dropped the phone.
“Let me get this straight,” he said. “These guys say they need 28 percent profit?” That’s the minimum, I told him.
“Shit, sign me up,” he laughed. “I’ll take the whole crew and we’ll be on the next plane.”
Mike is thrilled when he walks away with 10 percent profit on a job. So is everyone he knows. So are most small businesses (and quite a few large ones). The only ones who can get away with demanding that sort of return are oil companies, daily newspaper publishers, and, it appears, San Francisco real estate developers.
This isn’t really shocking news: We’ve known for a long time that developers make a killing in an inflated housing market. Compared to the boom years of the 1980s, when the office market was running rampant and out of control, the 28 percent margins aren’t that outrageous – high-rise office developers made even more.
But there’s a bottom line for the city: These folks aren’t just getting rich; they’re getting really rich – purely off a market that exists simply because of the appeal of San Francisco. They owe it to the city to give more than a pittance of that back.
Now this: Just about every small-business owner in San Francisco is sitting down with a spreadsheet and trying to figure out how much Sup. Tom Ammiano’s health care legislation is going to cost. A lot of them seem to be nervous – in part because of the fearmongering campaign put out by the Chamber of Commerce and the Committee on Jobs.
But when you actually look at what the law says, it’s not that scary. I’ve gone over the final language, and here are some key points:
1. The requirement that employers pay for health care doesn’t affect anyone with fewer than 20 employees, which is most of the small businesses in town.
2. Nobody’s going to have to pay anything until July 2007, and companies with between 20 and 50 employees aren’t going to have to pay anything until April 2008.
3. There’s a 90-day waiting period before anyone has to pay for a new employee.
4. Nobody will have to pay for employees who either have health insurance already (from a spouse, say) or who voluntarily decline health insurance.
5. Employers will pay based on how many hours an employee works, so the price for a part-timer will be comparatively small.
6. If you have more than 20 employees and don’t currently provide health insurance for all of them (or the amount you pay for that insurance is low), you’ll have to ante up, either by buying insurance in the private market or paying into the city plan. For companies with 20 to 99 employees, the city plan will run about $1.12 an hour next year for anyone who works more than 12 hours a week. Pencil it out; it may not kill you.
It’s absolutely an imperfect system. Employer-based health insurance is the wrong model. But for now it’s all we have – and this is a way to offer at least basic primary health care to everyone in the city. It’s worth the price. SFBG
Playing hardball in the Presidio
EDITORIAL When Rep. Nancy Pelosi began peddling her plan to privatize the Presidio back in the 1990s her chief weapon was fear: If the Democrats didn’t cut a deal to let the private sector control the fate of the new national park, she argued, the Republicans who ran Congress would simply sell off the land. Then there would be no park at all.
That was a highly unlikely scenario — there was a Democrat named Bill Clinton in the White House, and it’s hard to imagine him going along with the GOP on the sale of 1,491 acres of parkland in San Francisco (part of his loyal California base). But even if that happened, we argued at the time, San Francisco wouldn’t have been helpless: The city at least could have had some zoning control over the private land.
Instead, we’ve wound up with the worst of all worlds — a park controlled by an unelected, unaccountable federal trust that’s dominated by real estate and development interests, that has already handed over big chunks of the park to the private sector (George Lucas and others), and that refuses to abide by any local land-use regulations or ordinances.
That’s the problem at the heart of the dispute over the plan to build 230 luxury condominiums and apartments on the site of the old Public Health Service Hospital Complex just off Lake Street. Neighbors want a smaller project, one more in sync with the (relatively) low density district. More important, Sup. Jake McGoldrick, who represents the area, wants to see the developer add some affordable housing to the mix.
But the Presidio Trust has no interest in affordable housing. For the Bush appointees who run the park, the only thing that matters is the bottom line. Luxury units mean more profit for the developer and more cash for the trust. The needs of San Francisco aren’t even part of the equation.
This is what Pelosi wrought, with the help of then-mayor Willie Brown and the entire old Burton Machine (along with the Sierra Club and other environmental groups), and it is the most enduring legacy she will leave behind. (See “Plundering the Presidio,” 10/8/1997.) It’s important for every activist infuriated with the arrogant behavior of the Presidio Trust to remember that — and to start mounting some real pressure on Pelosi to undo the damage and repeal the Presidio Trust Legislation. The Presidio is a national park and ought to be run by the National Park Service.
In the meantime, though, the city has no choice but to play hardball. McGoldrick was only half joking (if he was joking at all) when he suggested that the city close portions of 14th and 15th avenues — literally blocking off the only entrance to the Presidio from the Richmond, a move that would seriously damage the new development. The city can also deny water and sewer service, which would pretty much end any plans for luxury housing.
Those aren’t pretty solutions — but if the trust won’t back down and at least meet the city’s requirement for affordable housing, McGoldrick and his colleagues should pursue them. SFBG
Don’t fear the t-word
EDITORIAL The attack ads started almost the moment Phil Angelides won the Democratic nomination for governor, and they’ll continue until November, funded by Gov. Arnold Schwarzenegger’s seemingly bottomless war chest and carrying a misleading message that has become the vicious refrain of right-wingers everywhere:
The Democrat wants to raise your taxes.
Let’s get this straight, just for the permanent record: Angelides is not proposing to raise taxes on anyone who makes less than $500,000 a year. That’s means the vast majority of all Californians will not face a tax hike under the economic proposals the Democratic candidate for governor has set forth. Angelides wants to do something that Democrats (and Republicans) considered perfectly reasonable public policy for more than half a century, until the wing nuts got ahold of American economic policy: He wants to make the very wealthy pay a reasonable share of the costs of society.
The philosophy here is simple: Millionaires have reaped the benefits of this society — far more so in most cases than those who are struggling at the margins. They can afford to pay a higher marginal tax rate. They’ve won huge tax cuts on the federal level and pay far less in taxes than their peers in almost every other industrialized society. Asking the top tier of the taxpayers to cough up a little more money (nowhere near as much as they did in the 1960s and 1970s, but a little bit more) to get the state’s revenue in line with its spending is hardly a radical idea.
Californians want extensive public services. Schwarzenegger’s approach to providing them is to borrow more money. That’s never a terribly good idea, and given the state of the state’s pocketbook, it’s a particularly bad idea right now.
So Angelides is actually talking fiscal sanity — but a lot of people aren’t going to get the message. The “no new taxes” mantra is so powerful that it could well be the biggest factor in the fall election — and could mean defeat for Angelides unless he moves now, aggressively, to counter it.
His campaign, which in the primary was bold on policy but thin on promoting it, ought to turn the governor’s attacks upside down. Imagine a series of ads that went like this:
Phil Angelides wants to raise taxes — on Arnold Schwarzenegger. Or: Phil Angelides wants to raise taxes — his own. Or: Phil Angelides wants to raise taxes — but not yours.
Democrats who are willing to talk seriously about economic inequality in our society get accused of waging “class warfare.” Angelides, who made a personal fortune as a real estate developer, is in an excellent position to make a national statement about how wrongheaded and dangerous that sort of attack can be. And he’s in an excellent position to start a national conversation that’s long overdue — and start it in a state that brought America the awful “tax revolt” of the 1970s.
Memo to Mr. Angelides: Don’t fear the t-word. Use it right, and it will put you in the governor’s office. SFBG
A few questions for the publishers
OPINION The MediaNews Group, which proposes to buy the San Jose Mercury News, the Contra Costa Times, the Monterey Herald, and 30 Bay Area weekly newspapers, is paying a 20 percent premium over the price McClatchy paid Knight-Ridder for those same publications less than two months ago. Antitrust regulators in the US Justice Department, who must decide whether to go to court to try to block the transaction, will want to know why.
There are two possible explanations. One is that MediaNews, which already owns or controls eight daily and three weekly newspapers in the Bay Area, thinks the deal will yield economies of scale, allowing it to operate its newly acquired properties more efficiently than Knight-Ridder was able to. Another explanation is that MediaNews’s dominance of a restructured market will enable it to raise advertising rates.
From the standpoint of antitrust, the first reason is completely benign. Antitrust regulators will be very concerned, however, if they suspect the second explanation: that MediaNews paid a premium because its competitive position in the Bay Area newspaper market — where its circulation will rise from approximately 290,000 predeal to more than 800,000 postdeal — will permit it to raise rates.
MediaNews’s share of the Bay Area daily newspaper market will be somewhere north of 65 percent if the McClatchy sale goes through as planned. While that is a high degree of market concentration — and almost certainly would have drawn a challenge from the Justice Department 20 years ago — it is likely to be seen today as inconclusive.
Why? Because these newspapers compete not only with each other but also with Craigslist, eBay, Yahoo!, Google, and numerous other Internet-based businesses (not to mention television and radio) offering help-wanted ads and real estate and auto listings, as well as display advertising.
But another aspect of the McClatchy-MediaNews deal is not so easily dismissed. I’m referring to the role of Hearst, owner of the San Francisco Chronicle, which will be MediaNews’s primary competitor in the Bay Area.
As part of the deal, Hearst will also become a MediaNews investor and partner. The questions the regulators will ask are these: Why Hearst of all possible investors? If Hearst’s only function is to be a source of investment capital for a deal between McClatchy and MediaNews, why not use other investors whose participation would raise no competitive issues at all? Why use the one company that has the resources and incentive to object to the deal and whose participation creates at least the risk of a lessening of competition?
Whatever the answer, the public is entitled to have the Justice Department or Federal Trade Commission hear it and make its own judgment. Although filings with Justice in such "pre-merger reviews" are generally confidential, let’s hope that McClatchy, MediaNews, and Hearst, which are all in the business of making information public, will elect to tell their readers what they’re telling government regulators. SFBG
Peter Scheer
Peter Scheer, a lawyer and journalist, is executive director of the California First Amendment Coalition.
Rankin’ Reykjavik
› kimberly@sfbg.com
SONIC REDUCER I love the fact that whenever you leave this country, you immediately come to the discomfiting realization that … you’re such a damaged by-product of capitalist America. Case in point: Last week I gazed upon the beauteous, barren, and treeless expanses of Iceland, miles and miles of rock, scrubby grass, and mirrorlike pools of ice. Iceland in the spring is the chill, brown-white-and-blue equivalent of the Southwestern desert, austere yet fragile in the face of certain global warming, and barely containing an undercurrent of volcanic energy reminiscent of Hawaii’s Big Island. So why do I look at these moonscapes and wonder where all the people are and why there aren’t any houses, strip malls, or ski resorts out here? Why do I look at untrammeled land and see real estate?
Reykjavik: I’m here on a press trip with other media field operatives from BPM, OK!, Nylon, and Vapors, studying the club culture, seeing the sights, taking in gutfuls of fresh, fishy air by the wharf, gazing at snowcapped mountains, and perusing menus in shock. I just couldn’t help blurting a culturally insensitive, "Omigod, that’s My Little Pony!" when I saw the roast Icelandic foal with a tian of mushrooms, caramelized apples, and calvados sauce on the bill of traditional Icelandic restaurant Laekjarbrekka.
Likewise, the Icelanders probably can’t help turning those cute puffins and herb-fed lambs into meaty main courses to warm them through those long, dark winters. The real, long-haired, sweet-faced Icelandic horses turned out to be more engaging and curious than I’d ever imagined, strolling up to our group out in the wilds near Thingvellir to examine the hipsters (and hip-hoppsters) and be ooohed over. "They’re more like dogs than horses!" our Icelandair rep, Michael Raucheisen, exclaimed.
After a scrumptious Asian fusion meal at the elegant, cream-colored, deco Apotek (started with kangaroo tartare and finished off with a mistakenly ordered $125 bottle of Gallo cab; travel tip number one: Reykjavik is not the spot to sample California vino), our wild bunch was more into checking out a local strip club than settling in with a good book like Dustin Long’s charming Agatha Christie parody, Icelander (McSweeney’s), or the catalog for the National Museum of Iceland’s current photo exhibit of fishing village life in the southeast, "Raetur Runtsins" ("Roots of the Runtur"). We were more likely to price the local, ahem, pharmaceutical offerings ("$175 for a gram of coke is not cheap!" was one assessment) at the city’s nightclubs than shop for runic love charms or grandmotherly woolens.
One reason for the aforementioned vast, unpopulated expanses: There are only 300,000 people in the entire country — albeit well educated, well employed, relatively youthful, and wired. (Is it any wonder this isle has the highest concentration of broadband users in the world?) Most of the youth culture was happening in the capital, where about a third of the population lives it up, sucks down Brennivin and macerated strawberry mojitos, dances with compact little hand motions that resemble a funky elfin hand jive. I must confess that, watching Deep Dish’s Ali "Dubfire" Shirazinia skillfully work Iceland native Björk into his house mix at NASA, I’ve rarely seen more hot, seemingly straight men dancing, en masse, on the floor, on the mezzanine, in the booths, every damn where. Where did they get the energy — from a geothermal pipeline or those mischievous sprites called Julelads?
As we piled into the van to steep at the sulfur-scented but soul-soothing Blue Lagoon and study the brand-spankin’ Icelandic Idol Snorri Snorrason (I kid you not) serenading the soakers lagoonside with Jack Johnson–like tunes, I could only sit and plot my next visit — possible when Icelandair resumes its summer flights from SF in May? It’ll be too late to catch late April’s new Rite of Spring alt-jazz and folk music festival, but not for October’s Iceland Airwaves music fest (Oct. 18 through 22, www.icelandairwaves.com), where big tickets like the Flaming Lips have filled the city’s venues alongside Icelanders such as Sigur R??s. I’ll have to catch these new Icelandic rock artists:
Ampop, My Delusions (Dennis)
This trio was getting the royal hype in Reykjavik — posters were plastered everywhere. How nice to find that their jaunty yet dramatic English-language orchestral psych-rock traverses the dreamier side of Coldplay and Doves.
Mammut, Mammut (Smekkleysa)
Polished though quirky, this bass-driven, all-lady post-punk fivesome takes a bite of the Sugarcubes, Siouxsie Sioux, and the Raincoats, with plenty of all-Icelandic lyrical histrionics.
Storsveit Nix Noltes, Orkideur Havai (12 Tonar; to be released on Bubblecore)
Last glimpsed at South by Southwest’s Paw Tracks/Fat Cat showcase, these Animal Collective tourmates draw inspiration for their instrumentals from Bulgaria, Romania, Hungary, and the Balkans.
Mugison, Mugimama — Is This Monkey Music? (12 Tonar)
The Mark Linkous of Icelandic rock digs into the raw stuff on this acclaimed full-length. He also recently scored Baltasar Kormakur’s film A Little Trip to Heaven, reinterpreting the Tom Waits track of the same name.
For the real folkways, check out Raddir/Voices: Recordings of Folk Songs from the Archives of the Arni Magnusson Institute in Iceland (Smekkleysa/Arni Magnusson Institute), which includes a great booklet on the music, collected between 1903 and 1973 and revolving around Icelandic sagas and cautionary fables of monsters, ogres, and child-snatching ravens. SFBG
CH-CH-CHECK IT OUT
Anthony Hamilton, Heather Headley, and Van Hunt
Hamilton killed, from all reports, at SXSW, and we all know how good that Hunt album is. Wed/19 and Mon/24, 7:30 p.m., Paramount, 2025 Broadway, Oakl. $39–$67.75. www.ticketmaster.com
M’s and the Deathray Davies
Chicago cock-rockers meet quirk poppers. Wed/19, 8 p.m., Rickshaw Stop, 155 Fell, SF. $8. (415) 861-2011
Tinariwen
The chairs are pushed back when this band of Tuaregs, the indigenous people from Eastern Mali, break out the guitars. Wed/19, 8 and 10 p.m. Yoshi’s, 510 Embarcadero West, Oakl. $14–$20. (510) 238-9200
Keyshia Cole
The gritty girlfriend that might be the next Mary adds a late show. Fri/21, 11:30 p.m., The Grand, 1300 Van Ness, SF. $32.50. (415) 864-0815
Kronos Quartet
The ensemble premieres a collaboration with Walter Kitundu, takes on a Sigur R??s number, and teams with Matmos on "For Terry Riley." Fri/21–Sat/22, 8 p.m., Yerba Buena Center for the Arts, 701 Mission, SF. $18–$35. (415) 978-ARTS
Maria Taylor
Saddle Creek’s electro-folk-pop sweetheart steps out from Azure Ray. Sat/22, 9 p.m., Cafe du Nord, 2170 Market, SF. $10. (415) 861-5016 SFBG
Regis lives
CHEAP EATS
"Show me a sane man," Jung said, "and I will cure him for you."
I saw this on a billboard on Turk Street, I think, but I didn’t catch what it was advertising. Jung’s psychotherapy practice, I guess. But that seems like a waste of money to me, Jung being dead.
"Show me a dead man," I said to Earl Butter, my passenger . . .
And . . . and . . .
"What?" said Earl Butter.
I didn’t know. Which is why I’ll never be on a billboard. I can’t complete a thought, let alone . . . um. Well, I can throw a curveball and I’m alive, so I was going to go play baseball after I dropped Butter off in the Mission.
We’d just had lunch at my new favorite Moroccan restaurant in my old favorite neighborhood, the Tenderloin. Tajine. Jones Street.
Maybe I can be on a bumper sticker.
For example: Regis lives.
I wear a ring with 86 and 99 on it. Don Adams, Barbara Feldon. Dead and alive, respectively. Over a really red, really cuminy, really good sausage sandwich with some kind of salsa or chutney or something on it, tomatoes, onions, Earl Butter informed me that there are now more people living than there are dead ($6.95).
This astounds me. And like so many things Earl Butter tells me over lunch, it changes everything. For starters, we no longer have to be afraid of zombies. We’ve got them outnumbered. Barring big bombs and/or bird flu, it’s a power play from here out. Night of the Living Dead? Not scary.
Secondly, I can’t help wondering: When they counted, which side did they put Jesus and Elvis on? Dead or alive? Because judging from some other billboards and bumper stickers I keep seeing, there seems to be some question on the one hand. I can’t remember whether or not I ever pointed it out yet in this column, which may account for some of the confusion, but . . . Jesus? He died. Look, Christians, even if the cat did "come back to life," so to speak, he died again. He’d of had to by now, or else he’d be 2,000-and-some years old. So get over it already, and get real.
And don’t worry. Yeah, they’ve got Socrates, Jesus, Elvis, Jung, and Don Adams . . . But we’ve got Regis. Everything’s going to be OK.
The chicken ($8.50) was a little dry, but the preserved lemon sauce that it was drenched in was fantastic sop for the great homemade Moroccan bread. And there were good olives and, oddly, a handful of french fries scattered artfully about the leg and the thigh, sticking up like arrows out of General Custer (dead).
This is a tiny restaurant, Tajine. Maybe just six or seven tables. Very cozy and superfriendly. Sandwiches go for seven bucks with meat, five-fifty without, and entrees range from seven to eight-fifty, except for the brochette royale, which is basically everything, lamb, chickens, and ground beef, with soup and salad for 12 bucks.
And thirdly but not leastly, all kidding aside, if we got more people now aboveground than under it, you gotta wonder at least a little, if not to distraction, what this says about our planet in terms of, you know, real estate trends and compost.
Overpopulation?
I know, I know, you’re on that already. Well, my job is poetry and poultry, not politics or theology, but has anyone suggested yet tax breaks for the childless, state-subsidized sex-change operations, and, I don’t know, the supreme naturalness, in an overpopuutf8g species, of same-sex marriages?
Damn, we’re nostalgic, ain’t we?
Well, we got Regis! Regis saves. And he lives, I know, because I just heard him on the radio. He’s pushing grape juice instead of wine. Welch’s. Blood of Regis.
Another thought occurs to me. It occurred to me awhile ago, actually, but I saved it until last, so as not to ruin everything. It’s this: that Earl Butter got his story wrong. Heard wrong, misunderstood, or even lied to me, for kicks. He’s a notorious kidder. And I’m a pretty gullible traveler. It does seem far-far-far-far-fetched, huh? People have been dying for a pretty damn long time. How can they possibly be outnumbered by the living?
Listen, I gotta go now. I have a therapy appointment, and groceries to get, and I have to do my makeup. You do the work. Look it up online, think about it, figure something out, and get back to me. *
TAJINE
Tues.–Wed. and Sun., noon–10 p.m.; Thurs.–Sat., noon–11 p.m.
552 Jones, SF
(415) 440-1718
Takeout and catering available
No alcohol
Credit cards not accepted
Quiet
Wheelchair accessible
The I-Hotel interviews
Many lives ago, I remember standing in the back hallway of the International Hotel trying to fathom why it was that this funny, run-down place with these very sad, old, alone men had become the focal point of an enormous array of the concerted power of the state, city and business interests from across the world. And it was not easy then, and it is not easy now, because we were looking at the problem of progress, in some strange sense, and the sadness of one generation, the evils of one generation, seeking redress in another generation. Most of the residents of the I-Hotel were Filipino men who had come to work in the fields of the Central Valley, and had been refused the opportunity to bring over wives or sweethearts, had stayed perhaps too long and had lost their families, lost their wives, lost their sweethearts, lost anything except their companionship with each other, and their attachment to this funny place that they called home, that was not much of a home, but it was all that they had. And so the landowners that owned that prime piece of real estate in downtown San Francisco were being chided for taking away a precious place, which they looked upon as a rundown flophouse, from people who had been cheated of their lives by other landowners, hundreds of miles away. And if there’s any lessons to be learned, it’s the lesson that we are all connected, each to the other, and that everything we do has consequences, not only for ourselves and our immediate family and friends, the people who live in our immediate neighborhood or our city or our state, but across the world, across the century.
Richard Hongisto
Member, San Francisco Board of Supervisor; former San Francisco sheriff
I think that a larger population of voters in San Francisco have begun to see — in part from the I-Hotel — that we can’t continue to Manhattanize the city without destroying our quality of life. And I think that is in part responsible for the passing of Proposition M and other efforts to control density in our city.
We just have to keep pursuing the legislative remedies to prevent the destruction of existing housing stock and replacing it with higher-density construction, and to prevent the conversion of existing low-cost housing into high-profit commercial space and so on. We’ve done some of that already, but I think we can continue to do more. One of the things we need to do is get the right person in the mayor’s office, to get the right Planning Commission in there, which is one reason I’m supporting Art Agnos, because he’s the only person in the race who supported Proposition M.
I wouldn’t let my photograph be taken knocking down a door [if I had to do it over again], because the photograph was completely misunderstood. I was knocking the door panels out of the doors, so the minimum amount of damage was done to the doors, because we were hoping we could get the tenants back in. When we started to do the eviction, the deputies from my department started to smash in the whole door and the door frame, and ruin it. And what I did was I took the sledgehammer and said no, do it like this — just knock out one door panel, and that way if the tenants can get back in, they can take one little piece of plywood and screw or nail it in over the missing door panel. So I showed them how to do it and I got photographed in the act. The photograph has been attributed that I was running around smashing down the doors in hot pursuit of the tenants, when in fact the opposite was the truth.
I think that as a result of the fact that I refused to do the eviction immediately, and then getting sent to jail and sued — I had to spend about $40,000 in 1978 out of my own pocket to defend the suit — I think we made a real effort to forestall the eviction and give the city a chance to take it over by eminent domain and save the building for the tenants. It did not work out in the end, but I’m glad that we gave it the best shot.
Brad Paul
Executive director, North of Markert Planning Association
Well, let me just start by saying that I was there the night that it happened. It was pretty horrifying to watch people, basically, that I was paying — because I’m a taxpayer and they were police officers, paid by the city — to beat people up around me, and I saw people right in front of me have their skulls split open at taxpayers’ expense, so that this crazy person from Thailand, Supasit Mahaguna, could throw all these people out of their homes.
In retrospect, we’ve learned about the important role that nonprofit corporations can play in owning houses and there was a thing called a buy-back plan, which people thought was a scam. Today, you would think of something like a buy-back plan as just a normal way of buying residential property protection. I can’t think of any residential development ten years ago owned or operated by a nonprofit corporation. Today there are lots.
The eviction — I think people paid a very dear price for that. A number of those people are dead now, and I’m sure that the threat of that eviction didn’t help. A more recent case is 1000 Montgomery. The eviction of those people, I think, led to the death of one of the older tenants there. I think that’s one of the sad losses of things like the I-Hotel and 1000 Montgomery and all of them. I don’t think government officials pay enough attention to that when they make decisions on whether or not to let somebody do these things.
But for myself, I’d have to say that there were a number of things that I was involved in ten and 12 years ago that made me decide to do the kind of work I’m doing now. And I’d say one of the single things that had the biggest effect on me was being there that night and watching that, and saying we shouldn’t allow this to happen — that we need to all see that it never comes to this again.
Quentin Kopp
State senator, third district; former member, San Francisco Board of Supervisors
To me it was an unusual episode, and I’m not sure that it was a lesson of any kind. I don’t think it’s been repeated, has it? You know, I’m a believer in property rights, so it’s a difficult issue. On the other hand, I became convinced that there was genuine justification for maintaining the hotel for those who lived there and had an attachment to it. It was a collision of property rights versus feeling sorry for people who would lose their lodgings, lodgings to which they had become accustomed and attached. If I were the property owner, I would be indignant about the way the city treated me …
the tactics that were used, and the litigation — the litigation was horrendous.
Now, the broader social issue I would characterize as preservation, obviously, of low-income housing for a minority group, the Filipinos. [But] if the city had such a robust concern, sincere concern, then the proper act for the city was to condemn the property — to take it and preserve it …
for the people who lived there. But the city was not forthright, the city did not set out to do that — the city tried to strangulate the owner into doing that, by reason of, it’s what I consider a bit cutesy a legislative move — a political move.
So what have we learned? Well, I don’t think that anything has been learned, and not simply because this is sui generis (which is the Latin term for one of a kind that lawyers often employ), but because the city doesn’t have a consistent policy for preserving this kind of living space.
Richard Cerbatos
Former member, San Francisco School Board, San Francisco Board of Permit Appeals
Speaking as a Filipino American, I saw an attempt to destroy a cultural link within the Filipino-American community. It was clear there was an established community living there. The use of the hotel in that general community formed a network and a lifestyle that was identifiable for older Filipino men. The access to the cheaper restaurants in Chinatown, the ability to hang out and speak their language in pool halls — this was all proposed to be destroyed in one big demolition permit. They were in a community where some of their cultural values were intact, and the only thing that kept them intact was the fact that they were close to one another.
I think those sensitivities now are clearer to the general community. I still think there are areas of Chinatown where they’re still going to have to fight this battle….
We’re seeing this: That we can’t allow people to be displaced purely in the name of bigger and better developments, and namely, bigger and better profits. With Prop. M, we’re seeing some attempts at this, and I think the first evolution of this was the I-Hotel.
As far as my sensitivites go, my thing is, through just having lived through it, this was the first time that anyone took on the developers the way they did. There have been later battles, but that was the first one that became known to everyone city-wide. If we are going to put some control on growth, we can use these lessons.
Ed Illumin
Member, I-Hotel Tenants Association
The first eviction notice was posted in December of 1968, so we’re talking about an almost 19-year battle, here. Actually, a 19-year war, because there were little battles in between. But it comes down to the city and various segments of the Chinatown community and the developer, Four Seas, arriving at an agreement on the development for that lot that would include some replacement housing — affordable, low-income replacement housing. I mean really affordable and priority for those apartments going to former tenants of the I-Hotel, and those elderly and disabled. A number of [tenants] have died since that time, so really we’re talking about maybe a dozen or 16 people who are still around to taste the benefits of this long, long war. Some justice, even though it’s late, has arrived and I would say that we finally won the war. It was a long struggle, 19 years, but people will get a chance, if they live long enough, to move in on the 20th year, which is 1988, when the construction should be completed.
It certainly wasn’t positive for the Filipino neighborhood. There are remnants of Manilatown, but to a large extent that neighborhood was destroyed. There was a lot going on there, and the I-Hotel was the heart of the community in that area. The positive thing about it was that it kept the Financial District from encroaching into Chinatown. The Filipinos and the Chinese have had a long history of living together, co-existing, and I think it was pretty much a sacrifice of the Filipino community there to make sure that Chinatown was preserved.
Chester Hartman
Fellow in urban planning, Institute for Policy Studies; lawyer for I-Hotel Tenants Association
In a sense, I think the International Hotel, the tremendous interest and support that the eviction attempt generated over so many years, was a kind of a coalescing and symbolizing of resistance to changes in San Francisco — changes being obviously the downtown corporate world taking over the neighborhoods. I think the fact that so many people came to the aid of the hotel residents, even though they weren’t successful in preventing the eviction, was pretty much a strong building block in developing what has become an extremely strong housing movement in San Francisco, one that really has become very effective in influencing candidates and people in public office, and in getting some laws passed.
So that’s one important lesson — that sometimes victories take a while, and take different forms, but all these struggles are connected. Another, I guess, is really how long it takes to get any results — the absurdity of having a totally vacant lot there for ten years, at a time when people need housing so badly. The fact that a private developer like Four Seas is able in essence to hold on and do nothing with its land when there’s so much need for housing in the Chinatown-Manilatown area says a great deal about … the relationship of city government to private developers.
Curtis Choy
Producer, “The Fall of the I-Hotel”
About the eviction night itself — and I just have a dim recollection now — I remember being very numb, and the fact that I was hiding behind a camera made it easier, because I had something between me and the event. I think I’ve spent a lot of time getting it behind me and if I haven’t seen my own film for, say, half a year it scares the hell out of me to look at the eviction again. I feel hairs standing up on the back of my neck.
What can I say about lessons? It was almost, I shouldn’t say, it was almost worth that eviction, but I mean, that’s the only thing you can get out of something like that — I mean, basically, they killed half those guys by throwing them out.
The potential for revolution in the country was still in the back of our minds in the early ’70s. And here we were trying to use the system, trying to play ball with the system, and it sort of set us up for yuppiedom. It was sort of our last hope to get something together, and we had invested 12 years or so in the struggle. There was kind of a little mass depression that stuck, and that same kind of high energy has never come back.
Sue Hestor
Attorney, San Franciscans for Reasonable Growth
In retrospect, one of the issues that we should have raised and litigated was the lack of an adequate environmental review of the project. We’ve learned a lot since then, and I don’t want to say that people that were involved at that point made a wrong decision, but in 1987 that would be one of the first issues that would be raised.
Secondarily, I think what we learned is how the physical destruction of a building makes it very hard to keep the issue alive — after a while, the hole in the ground becomes something that has to be filled, and the focus of attention drifts away. It’s really striking how when you lose the building, it’s more than just a symbol — it’s the motivating factor in people’s lives.
Allison Brennan
Organizer, San Francisco Tenants Union
They [the city] could’ve taken the building by eminent domain and they didn’t do that — they didn’t want to do that. I mean, the issue is not so much what they could do to prevent it, but why they didn’t prevent it in the first place. And that is basically because San Francisco has very little interest in preserving low-income housing. Its interest, and the interest of most of the people from San Francisco, are in getting rid of low-income housing, “cleaning up” poor neighborhoods, and turning them into nice middle-class neighborhoods, and that’s the stated goal of most city legislation — poor people aren’t what we want.
I think that probably the most important thing that came out of [the I-Hotel struggle] was that, while we don’t have a real good situation for tenants in San Francisco, I think consciousness was raised, among at least a lot of tenants about the situation which tenants are in. And I think that to a certain extent, on a national level, the elderly are getting somewhat better consideration than they did previously.
Gordon Chin
Director, Chinatown Neighborhood Improvement Resource Center
I guess the lessons of the I-Hotel have to go back to 15 and 20 years, to the genesis of the issue. I personally think the I-Hotel symbolized a lot of very key development issues — housing issues, tenant empowerment issues — that gained a national reputation back starting in the 1960s. In some respects, it highlighted many of the particular facets of the housing problem very early on: the need to maintain and preserve existing housing; the threat of commercial and downtown developments; the encroachment into the neighborhoods; the issue of foreign investment and the role that can play in development encroachment; the critical importance of tenant organizing and tenant organization with a support base in the larger community; the need for diverse ethnic, racial, sexual, lifestyle communities to work together on an issue of mutual concern — in this case, Chinese, Filipino, white, all different kinds of people supporting the I-Hotel tenants and getting involved in the issues as they evolved over the last 15 years.The I-Hotel experience has had a positive effect on these issues in San Francisco, and probably across the country. ….
It was a very critical time for the city, and this is going back to the early ’60s, with the previous United Filipino Association, the International Tenants’ Association, the whole bit. You had a lot of environmental movement activity….
I think that’s the I-Hotel’s importance, not just what happened back then. It was the whole evolution of the issue, even after the demolition, when the focus then became — well, we’ve lost the building, but the fight must continue in terms of making sure whatever is built on the site becomes new, affordable housing — not just housing but affordable housing. And it’s culminated in the most recent development plan for the project, which has gained pretty wide-spread support. I guess part of the whole recollection, reflecting back on the ’60s in general, [is that] the I-Hotel was very symbolic of the whole movement — Vietnam, everything.*
Interviews for this story were conducted by: Nicholas Anderson, Heather Bloch, Eileen Ecklund, Mark Hedin, Craig McLaughlin, Tim Redmond and Erica Spaberg.
SF’s economic future
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
[
]
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.
[
]
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.
[
]
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.
[
]
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.*
Learn how to solve the Rubik’s Cube with the easiest method, learning only six algorithms.