redevelopment

EDITOR’S NOTES

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› tredmond@sfbg.com
There’s a certain brilliance to the Proposition 90 campaign, perhaps more than the right-wing ideologues who conjured this up even realize. The measure raises a profound, powerful question — and judging from some of the unlikely supporters of this horrible plan, the answer isn’t pleasant.
As we report in this issue (page 20), most people wouldn’t support the measure if they really understood what it meant (no more zoning, no more rent control, no more environmental laws, etc.) But for a lot of Californians and some San Franciscans in places like Bayview–Hunters Point, the real question seems to go like this: do you trust the government to protect you from the private sector — or do you see the government as such a problem, such a threat, so historically untrustworthy that you’ll take your chances with unregulated capitalism?
There are good people, well-meaning people, who are taking the wrong side on this one with potentially terrible consequences, and it’s largely, I think, because they don’t see the public sector as their friend.
I understand how anyone who’s fought redevelopment in the past 40 years can feel that way. Just about everything the San Francisco Redevelopment Agency did in this city, particularly in African American neighborhoods, has been a total disaster. Black support for Prop. 90 is the legacy of generations of corrupt urban politics.
The problem is that Prop. 90, which allows private developers to operate without regulation in urban areas, will be even more of a disaster. And if it passes, it won’t just be Republicans who vote for it. I hope I’m not the only one who finds this deeply frightening. SFBG

Well, not exactly

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When supporters of Prop. 90 submitted their ballot argument for the state voters handbook, they made sure to list off the poignant tales of some eminent domain victims.
But perhaps the stories of these victims could have included a little more detail.
The owner of a luggage store in Los Angeles, Bob Blue, did indeed have his 5,500 square-foot building threatened by a multimillion-dollar redevelopment project. But the city of Hollywood backed off recently following a wave of opposition and the condominiums and apartments planned for the location will now be literally built around him.
A redevelopment board in Long Beach offered the pastor of a small Filipino church there $850,000, 13 possible alternative locations and moving expenses before giving up earlier this year in exasperation on Roem Agustin and his congregation, which didn’t want to go. The city had hoped to build an affordable housing complex where the church was located.
Manny Romero’s restaurant was targeted by the apparently not-so-bright city of Arcadia that wanted to help a nearby Mercedes dealership expand its parking lot, but officials have since backed away fearing retribution from angry residents and what most certainly would have been an enormous amount of bad press.
The fourth “eminent domain victim” cited by Prop. 90 supporters is actually the best one as far as politically charged case studies go. John Revelli was truly screwed by the city of Oakland when in the summer of 2005 he was forced to give up his tire shop for a real-estate development paid for in part by public funds. The area has been designated as a redevelopment zone for 20 years. The city offered about $650,000 plus relocation expenses to move, but Revelli and the owner of the land, Tony Fung, believed they’d never manage to afford a new location. Revelli has since become a part-time national spokesperson for the fight against eminent domain.

Bayview’s perspective

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

PG&E’s candidates

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EDITORIAL We’ve seen plenty of allies of Pacific Gas and Electric Co. on the San Francisco Board of Supervisors. We’ve seen a few PG&E bagmen, PG&E shills, and PG&E fronts. But there’s never been anyone elected to the board in our 40 years who was actually a paid attorney for PG&E.
This year there’s at least one and possibly two candidates who have worked as PG&E lawyers — and that alone should disqualify them ever from holding public office in San Francisco. The most obvious and direct conflict involves Doug Chan, the former police commissioner who is seeking a seat from District 4. Documents on file with the California Public Utilities Commission show that Chan’s law firm, Chan, Doi, and Leal, has received more than $200,000 in fees from PG&E in just the past two years.
Chan won’t come to the phone to discuss what he did for the utility, won’t respond to questions posed through his campaign manager and press secretary, won’t return calls to his law firm, and thus won’t give the public any idea what sorts of conflicts of interest he’d have if he took office.
This is nothing new for Chan: back in 2002 he put his name on PG&E campaign material opposing public power and earned a spot in the Guardian’s Hall of Shame.
Then there’s Rob Black, who worked as an attorney for Nielsen Merksamer, the law firm that handled all of the dirty dealings for the anti-public-power campaign in 2002. Black worked with Jim Sutton, his former law professor and PG&E’s main legal operative, during that period but insists he did no work on anything related to PG&E or the campaign. That’s tough to believe.
All of this comes at a time when PG&E is going out of its way, at the cost of hundreds of thousands of dollars, to buff up its image — and to fight the city’s modest but significant plans for public power.
As Steven T. Jones reports on page 16, the notorious utility is well aware that its future in San Francisco is shaky. The city is bidding to provide public electric power to the Hunters Point shipyard redevelopment project and preparing to provide public power to Treasure Island. There is a study in the works to look at developing tidal power. The supervisors are moving forward on Community Choice Aggregation, which will put the city directly in the business of selling retail electricity to customers (albeit through PG&E’s grid). And there’s talk brewing of a public power ballot initiative for next November.
PG&E president Thomas King met with Mayor Gavin Newsom this summer and sent him a nice, friendly letter afterward discussing all the ways the city and PG&E could work together.
But in fact, the utility is already opposing even the baby steps coming out of City Hall: PG&E has bid against San Francisco for rights to sell power to the shipyard, and that’s forced the city to cut prices and reduce the revenue it could have gained from Lennar Corp., the master developer. PG&E is trying to stop the city from selling power on Treasure Island and has financial ties to a private company that has rights to Golden Gate tidal power development until 2008. Meanwhile, the utility just hired the former secretary to the San Francisco Public Utilities Commission — a woman who sat in on every closed-session strategy meeting the panel held, including sessions dealing with litigation against PG&E.
In other words, PG&E is gearing up for all-out political warfare — and the mayor and supervisors need to start preparing too. From now on, people should see whatever PG&E does as hostile — and on every front the city needs to adopt an aggressive strategy to move forward toward eliminating the company’s private power monopoly.
For starters, it’s ridiculous that the city should have to fight PG&E for the right to sell power at the Hunters Point shipyard. The Redevelopment Agency should have made public power a part of the program from the start, and the supervisors should examine that plan immediately to see if it can be amended to require Lennar to buy power from San Francisco. Newsom needs to take to the bully pulpit and say that if PG&E gets this contract, nobody on the Redevelopment Agency Commission will ever be reappointed.
Meanwhile, when Chan and Black appear anywhere in public this election season, they need to be asked to fully disclose their ties with PG&E and outline their positions on public power.
And it’s time for the public power coalition to start meeting again, with the aim of crafting a ballot measure that will create a full-scale municipal system, perhaps as soon as November 2007. SFBG
PS PG&E already has one staunch ally on the board, Sean Elsbernd, a Newsom appointee who also worked in the late 1990s for the Nielsen firm. That’s three too many.
PPS If Newsom is really for public power, as he claims, then why is he pushing so hard for two PG&E call-up votes for the board? And why is he not publicly denouncing PG&E’s attempt to scuttle public power and lending his political capital to a new municipalization effort?
PPPS The SF Weekly’s Matt Smith last week all but endorsed Doug Chan — but made no mention of Chan’s PG&E ties. Did that somehow slip through Smith’s investigative reporting net?

PG&E’s extreme makeover

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› steve@sfbg.com
Mayor Gavin Newsom called a meeting with Pacific Gas and Electric Co. president Thomas King in July to let the utility chief know that the city intended to pursue public power projects on Treasure Island and Hunters Point.
“It was just to tell him that we’re going to do it,” Newsom spokesperson Peter Ragone said of the meeting. “The mayor thought it was a gentlemanly thing to do.”
King used the occasion to start an aggressive new offensive — and to preview PG&E’s latest political strategy.
In an Aug. 10 letter to Newsom, King promised not to fight the city’s plans in court and pledged to develop a better relationship with the city.
“We know that it was in this spirit of cooperation that you approached us last month, and we want to foster this spirit and forge an even stronger partnership in efforts to protect our environment in the years ahead. That’s why I wanted to respond to your questions and suggestions — and to share with you some ideas of my own,” King wrote, listing one of those ideas as helping the city develop energy from tidal power at the mouth of the bay, which Newsom had recently announced a desire to pursue.
The day after PG&E wrote the letter, Newsom and San Francisco Public Utilities Commission (SFPUC) head Susan Leal announced the city’s intention to supply public power, mostly from clean solar and hydroelectric sources, to the redevelopment project on Parcel A of the former Hunters Point Naval Shipyard, where the politically connected Lennar Corp. (which is also part of the team with the rights to build on Treasure Island) has the contract to build 1,600 new homes.
“What we want to provide is a green community at a rate that meets or beats PG&E,” Leal told the Guardian, noting the history of environmental injustices that have been heaped on the southeast part of town. “We’re very excited about what’s going on at Hunters Point. . . . It’s important that the city do the right thing for that community.”
And just as PG&E was pledging cooperation, it aggressively set out to undermine the city’s plans with competing bids and continued its fiercely adversarial posture in another half-dozen realms in which it must work with the city, battles that have cost San Franciscans millions of dollars.
“This is a competitive world and this is fair game, don’t you think?” PG&E spokesperson Darlene Chiu — who used to be Newsom’s deputy press secretary — told us of company efforts to subvert the public power projects.
Last month PG&E also hired away SFPUC commission secretary Mary Jung, who had been privy to closed-session discussions about various city strategies for dealing with PG&E. Jung, who did not return a call for comment, was required to sign a confidentiality agreement and threatened with criminal charges if she spills city secrets, although city officials acknowledge that would be difficult to prove.
PG&E has also launched a high-profile public relations offensive designed to repackage the utility as a clean and green crusader against global warming and a supporter of community programs such as the mayor’s pet project, SF Connect, to which it contributed $25,000 last month.
“The company has a long and continuing history of fighting against the city rather than working with the city on issues involving municipal power, improved reliability, connecting city facilities, and protecting ratepayers,” Matt Dorsey, a spokesperson for City Attorney Dennis Herrera, told us. “If PG&E wants to demonstrate its good corporate citizenship, it can start by changing the nature of its relationship with the city.”
BIG BUCKS
If anyone from the Bay Area needs a reminder about the big money, bare-knuckle approach PG&E uses when its interests are threatened, they need only look up the road to what’s happening in Sacramento and Yolo counties.
PG&E has so far spent more than $10 million fighting Propositions H and I in Yolo County and Measure L in Sacramento County, which together would allow the Sacramento Municipal Utility District (SMUD) to annex more than 70,000 customers in Davis and surrounding communities.
The PG&E effort has saturated mailboxes and the airwaves with messages that inflate the cost of taking over its transmission lines, imply threats of a drawn-out legal battle, and make bold claims of its being an environmentally friendly utility (for example, including nuclear power in its calculations of how “green” PG&E is).
“They’re trying to spread fear and confusion,” Davis-based public power advocate Dan Berman told us. “A new thing comes out every day. But we keep citing the message of lower rates and better service.”
In fact, SMUD has rates that are about 30 percent lower than PG&E’s and a power portfolio that includes significantly more energy from renewable sources than PG&E uses. Even King’s claim that PG&E is “the leading solar utility in the county, having hooked up more than 12,000 solar-generating customers” is misleading. The number is large because PG&E has the largest customer base in the country, but the solar rebates were state mandated and SMUD inspired and come from ratepayer surcharges.
Still, PG&E justifies its aggressive campaign in Yolo County in terms of warding off a hostile takeover of its customers. For residents there and new customers in San Francisco that the SFPUC wants to serve, PG&E’s Chiu repeats the mantra that “we have an obligation to provide services.”
Yet critics of the company say the campaign is about more than just holding on to those customers. Right now more than a dozen California communities are pushing for public power, most involving community choice aggregation (CCA) — which allows cities to buy power on behalf of citizens, potentially bypassing PG&E.
“That’s one of the reasons they’re pulling out all the stops in Davis, because if this goes through, it will embolden other communities,” Barbara George of Women’s Energy Matters told us.
San Francisco was an early city to pursue CCA, but plans to implement it have moved slowly, and now other communities — including Marin County and the cities of Oakland and Berkeley — are even further along.
“San Francisco is way behind in community choice,” George said. “The mayor is giving PG&E a lot of time to put out its claims to be green in order to fight this.”
Part of that push involves a slick 16-page mailer sent out in August by “The New PG&E” outlining “a proposal for an unprecedented and far-reaching partnership with the city of San Francisco to create the cleanest and greenest city in the nation.”
Sup. Ross Mirkarimi — a longtime public power advocate — is skeptical. “I welcome it, but I don’t buy it,” he said. “Their desire to work with us is typically predicated on the receding of our efforts to pursue public power.”
In fact, King seemed to say as much in his letter to Newsom when he wrote, “We see the investment of time, money and political capital in the public power fight as a distraction from the real need — providing clean, reliable and safe power to San Francisco.”
Chiu denied that there is a quid pro quo here, saying, “It is our intent to help San Francisco become clean and green, whether or not it comes with the city’s blessing.”
Yet Leal said the company seems more interested in stopping public power than going green. Rather than trying to undermine the city’s plans for the area, she questioned, “Why don’t they have the rest of Hunters Point, which are already their customers, be a green community?”
COMPETING WITH PG&E
Lennar is expected to announce in the next week or two whether it will go with public power or PG&E at Hunters Point. “No final decision has been made at this point,” Lennar spokesperson Jason Barnett told us.
Yet it didn’t have to be this way. Lennar’s redevelopment project is being subsidized with public funds that could have been conditioned on public power. Even as late as Oct. 17, when the San Francisco Redevelopment Board agreed to change Lennar’s contract to let the company out of building rental units, public power could have been part of the trade-off. Agency chief Marcia Rosen did not return Guardian calls asking why the public agency didn’t take advantage of this leverage.
For her part, Leal said, “I’m not afraid of competition.” It was a point echoed by Ragone, who said Newsom believes the city shouldn’t be afraid to compete with PG&E on Hunters Point or Treasure Island or to stop a PG&E bid to help develop clean tidal power.
But Mirkarimi doesn’t necessary agree. “Why do they have that right?” he asked, arguing the city shouldn’t let PG&E take control of new energy resources or customers who should be served by public power. “The tentacles of PG&E haven’t receded any less at City Hall and we should always be on our guard.”
Leal and Ragone each acknowledged that competing with PG&E isn’t always a fair fight. After all, in addition to having the resources of nearly 10 million customers paying some of the highest rates in the country, PG&E is also alleged in a lawsuit by the city to have absconded with $4.6 billion in ratepayer money during its 2002 bankruptcy, in what Herrera called “an elaborate corporate shell game.” On Oct. 2, the US Supreme Court denied review of a Ninth Circuit Court of Appeal ruling favoring the city, sending the case back to the trial court to determine just how much PG&E owes ratepayers.
That is just one of several ongoing legal actions between the city and PG&E, including conflicts over the city’s right to power municipal buildings, PG&E’s hindrance of city efforts to create more solar sites, and battles over the interconnection agreement that sets various charges that the city must pay to use PG&E lines.
MONEY IN ACTION
A good example of PG&E tactics occurred during the July 26 meeting of the Metropolitan Transportation Commission, which is overseeing work on the Bay Bridge. As part of that work, a power cable going to Treasure Island needed to be moved, but the Treasure Island Development Authority didn’t have the $3.4 million to do it.
So PG&E executive Kevin Dasso showed up at the MTC meeting with a check made out for that amount, offering to pay for the new cable and thus control the power line through which the SFPUC intends to provide public power to the 10,000 residents who will ultimately live on the island.
“This deal with Treasure Island was really egregious. They came in like a game show host and held up a check to try to stop this baby step toward public power on Treasure Island,” said Sup. Tom Ammiano, who also sits on the MTC board. “It shows PG&E is not asleep at the wheel by any means, and anybody who’s elected is going to need to stay vigilant.”
Ammiano was able to persuade the MTC to loan TIDA the money and preserve the city’s public power option. PG&E officials are blunt about their intentions. Chiu said, “We both want to provide power to Treasure Island.” So officials note the importance of being vigilant when it comes to PG&E.
“There will be other meetings where PG&E will wave around $3.4 million checks,” Leal said. “And at some of those meetings, we won’t be there to stop them.”
So public power advocates are concerned that public officials are letting PG&E rehabilitate its public image. Newsom has recently shared the stage with PG&E executives at a green building conference in San Francisco and the Treasure Island ceremony where Gov. Arnold Schwarzenegger signed the landmark global warming measure that PG&E long opposed before ultimately supporting. Ragone said neither these events nor PG&E’s contribution to SF Connect nor his direct dealings with King indicate any softening of Newsom’s support for public power.
“We’re going to do what’s in the best interests of the city of San Francisco,” Ragone said. “This is the first mayor to support public power, and that hasn’t changed at all.” SFBG
To see the letter from King to Newsom and other documents related to this story, go to www.sfbg.com.

Buried treasure

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› gwschulz@sfbg.com
Despite the fast-moving urban centers that surround it on each side of the San Francisco Bay, not much about Treasure Island has changed since it was shut down as a United States naval station 10 years ago.
After the feds ceased operations on the island and at several other military installations in the mid-’90s, the idea was to give the land to local governments for redevelopment to fill the economic void of losing active bases. Since then, several plans for Treasure Island have been floated with great fanfare in the press, but all have become mired in the infamously contentious development politics of San Francisco.
Late last month, after three years of deadline extensions, the Treasure Island Development Authority (TIDA) finally received a full-blown plan from the developer — a partnership between Lennar Corp., Wilson Meany Sullivan, and Treasure Island Community Development — that was given exclusive negotiating rights over the land three years ago.
The $1.2 billion redevelopment plan must now run a gauntlet of state and local approval, including consideration from the Board of Supervisors, which is expected to hold hearings and debate the plan by the end of the year. It isn’t likely that construction will begin on the island for at least a couple more years.
The latest proposal anticipates about 6,000 new homes, 1,800 of which will be targeted to low-income residents, including 750 units for households earning no more than 60 percent of San Francisco’s median income and 440 built as part of a program for the homeless. Plans include town houses, single-family homes, and high-rise residential towers, although at least half the properties will be limited to 65 feet in height.
Right now the island contains about 800 occupied units, over half of which are market-rate leases with the John Stewart Co., while about 200 are operated under the Treasure Island Homeless Development Initiative. By the time the project is done, according to the newest plan, the island’s population is expected to balloon to around 10,000 residents, plus around 3,000 new workers necessary to maintain the minicity.
Some of the existing housing stock will be demolished, or as the plan calls it, “reconstructed.” Current residents will have an option to move into the new units or be placed in a lottery if demand for certain types of units outstrips the supply. The plan calls for about 27 percent of the overall planned housing units to be rentals.
Private automobile use would be regulated by metering ramp access to the island during peak commute hours; assessing possible congestion fees for driving on the island; limiting residential parking; and emphasizing thruways that promote walking, bicycling, and public transit.
Much of the development is slated for the west side of the island — with its breathtaking and profitable views of the city — near an existing ferry terminal that would provide access to the city all day long.
Treading lightly, Sup. Chris Daly, whose District 6 includes the island, said he supports the environmental and housing components so far, but if existing island residents mount significant opposition for any reason, he’d consider opposing the plan.
“You don’t know how clean something is until you take it out of the wash, and they’re just now starting to throw it in,” Daly told the Guardian.
Rob Black, Daly’s main challenger in the upcoming election, lives on Treasure Island. He was similarly cautious. “I think people have finally begun to think in a more progressive way about making this a more sustainable neighborhood,” Black told us. “Past plans have been so poorly put together.”
On the local level, the plan must be approved in the coming months by both the TIDA board and the Board of Supervisors. After that, it will undergo an extensive environmental impact review by the city’s planning department before returning to the board for final local approval.
The developer and the TIDA board — which is composed entirely of mayoral appointees, three of whom work directly for Mayor Gavin Newsom — must still overcome other major hurdles as well, including the fact that the Navy hasn’t turned over any of the land yet and likely won’t without major concessions.
The Bush administration has stalled the transfer, pushing for some payment before giving up valuable federal land. One tentative option is to relieve the Navy of about $45 million in environmental cleanup costs for which it is currently responsible. Those costs would then be borne by the redevelopment plan and the developer, which has already pledged $26 million for remediation. The land became contaminated in part after decades of military activity that included emergency drills with radioactive materials.
David Rist, a project manager for the state Department of Toxic Substances Control, which is overseeing the cleanup, said that while there is some contamination where residents are living today, it doesn’t pose an immediate threat to human health. Identified contaminants include dioxin, lead, and PCBs. Rist told us the cleanup, regardless of who ends up paying for it, will be “significantly done in the next two and a half years.”
After mulling over ideas, TIDA finally brokered an exclusive deal in 2003 with a company incorporated as Treasure Island Community Development, a group of Democratic Party heavyweights with deep links to the current and former mayoral administrations and other top elected Democrats.
Jay Wallace, a project planner for Treasure Island Community Development, said the plan’s mammoth size and uniqueness have required considerable and time-consuming attention to specifics. Investors anticipate spending $500 million of their own money, but they’re looking to earn upward of $125 million in profits, according to the plan.
The remaining cost of about $760 million for infrastructure, open space, and transportation system improvements could be covered largely by tax increment financing from the redevelopment area and Mello Roos bonds, both of which would essentially be funded by future property taxes, according to the latest term sheet.
Wallace told the Guardian that his group “has worked in good faith and transparency throughout this project, with over 150 public meetings before reaching this milestone and presenting this plan to the city.”
Daly said that while “there are going to be a hundred issues that need to be worked out,” the green-meets-affordable-housing theme “is the right proposal for San Francisco.”
“Political connections to the Newsom juggernaut notwithstanding, these guys are politically savvy enough to know what’s wise and what isn’t,” he said. “On the actual merits of the proposal, it’s palatable if you’re OK with the concept of high-rises in the middle of the bay.” SFBG

Editors notes

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› tredmond@sfbg.com
There’s something scary happening in Bayview–Hunters Point, and it’s not the redevelopment bulldozers.
For some reason that I find hard to understand, community leaders like Willie Ratcliff and Marie Harrison, who are opposed to the Redevelopment Agency’s plan for that neighborhood, have signed on with a frightening gang of radical right-wing property rights advocates. The result: Harrison was standing at an antiredevelopment rally last week urging voters to support Proposition 90, almost certainly the worst piece of legislation to face California voters since Proposition 13 devastated local government in 1978.
Prop. 90 would indeed limit the ability of government agencies to seize private land for other private projects. That’s why the redevelopment foes like it. But it goes much, much further. Under Prop. 90, no local government could do anything — anything — that might reduce the value of private land without paying the owner compensation. That means no new tenant protection laws (which could cost a landlord money). No more zoning laws that reduce the maximum development potential of a lot (of course, that means no zoning controls against luxury condos that would displace local business and residents in Bayview). No new environmental or workplace safety laws.
It also places a swift and powerful kick to the midsection of any effort to seize Pacific Gas and Electric Co.’s local grid and create a real public power system; under Prop. 90’s rules, that would be prohibitively expensive.
I talked to Harrison about this, and she told me she “didn’t read the law that way.” But this isn’t just a matter of opinion; it’s clear fact, and everyone with any sense realizes it.
It gets worse: I was at a New College event Sept. 29 when Renee Saucedo, the immigrant rights lawyer, asked everyone to vote yes on 90. She told me she trusted Ratcliff and Harrison.
Prop. 90 is almost unimaginably bad. If its supporters can make inroads in San Francisco, I’m very afraid. SFBG

Really scary

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By Tim Redmond

I had a really scary moment tonight.

it started well — I was moderating a discussion on immigration politics at New College, featuring Justin Akers Chacon, who has written a new book called “Nobody is Illegal.” Renee Saucedo, a longtime advocate for immigrants and day laborers, was on the panel, too, and we had a great discussion — until the very end, when Saucedo starting talking about how she was trying to build coalitions between immigrants and African Americans in Bayview Hunters Point, organizing around opposition in that neighborhood the the redevelopment plan.

And out of nowhere, she urged everyone to vote yes on Proposition 90.

For the record, Prop. 90 is almost indescribably horrible. It’s a radical right wing property-rights measure that would instantly halt any new environmental laws, any new rent-control laws, any new workplace safety laws, any new zoning laws, any limits on evictions or condo coversions … it would effectively stop government regulation of private property in California.

So why was Saucedo, a smart lawyer and strong progressive, supporting it? Because Willie Ratcliff, the publisher of the San Francisco Bay View, and Marie Harrison, a candidate for supervisor from District 10, are so dead-set against redevevelopment that they’ve signed on with the worst of the right-wing nuts in the state to endorse a measure that claims to be limiting eminent domain but is so much, much more.

I’ve discussd this with Harrison; she totally doesn’t get it. Neither, for now, does Renee Saucedo. I understand their fear of redevelopment seizing people’s homes — and I understand Saucedo’s desire to build ties with and follow the lead of African American community leaders. But get a clue, my friends. This is embarassing.

If people like Renee Saucedo are getting duped into supporting the worst law to come along in California since Prop. 13, we’re in serious trouble.

Editor’s Notes

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› tredmond@sfbg.com
So much going on this week: the cops and the San Francisco Police Commission are heading for a battle over secrecy, the cops and the supervisors are headed for a battle over foot patrols — and Mayor Gavin Newsom is heading for a battle with homeless advocates over a new round of sweeps at Golden Gate Park. The mayor and the local gendarmes can’t win any of this without community support and would do far better to stop trying to fight these battles.
Then there’s redevelopment and the city attorney … and we might as well get started:
•The state Supreme Court ruled a couple of weeks ago that all police disciplinary records have to be kept secret. It’s an awful decision, and San Francisco needs to find a way around it if at all possible. Some police commissioners, starting with David Campos, want to do that, but City Attorney Dennis Herrera is interpreting the law very conservatively and not offering the commission a lot of options.
Why not make public all the charges against cops with the individual officers’ names redacted? At least the community would know that some cops are improperly shooting people, giving liquor to minors, beating up people of color, beating up their spouses … and at least we’d all have a way to demand some policy changes. Or why not tell bad cops facing disciplinary hearings that they can plea bargain for a lenient sentence — and waive their rights to privacy — or take their chance in a full commission trial, where they will face termination if they lose? Let’s think here, people: this is too important to just give up. San Franciscans aren’t going to accept a secret police state.
•The mayor and the police chief are still fighting against Sup. Ross Mirkarimi’s plan to put cops on foot in high-crime areas. That’s a loser, Mr. Mayor. Nobody thinks that your current plans are working.
•After visiting Central Park in New York City — which is run by and for a private group of rich people — Newsom has decided to clear all the homeless people out of Golden Gate Park. Let me offer a little reality here: people sleep in the park because they have no place else to go. You cut their welfare payments and let the price of housing skyrocket, this is what you get. Sweep them out and they won’t disappear: they’ll sleep on the streets in the Haight and the Sunset and the Richmond. There’s a great campaign issue.
Besides, Golden Gate Park, homeless and all, is generally a safe, pleasant place, with only minor crime problems. But kids are dying on the streets only a few hundred yards away in the Western Addition. We don’t have enough cops to walk the beat where they could save lives — but we have enough to roust the homeless?
•Herrera, who’s got his hands full of ugly messes this week, tossed a referendum on the Bayview Hunters Point Redevelopment Plan off the ballot because each of the petitions didn’t have the entire plan attached. For the record, the plan is 62 pages. If this is the standard — an entire plan has to be copied and printed with every single petition — then as a practical matter, nobody in California can ever do a referendum on a redevelopment project. I suspect that’s not what Hiram Johnson had mind. SFBG

Battle for Bayview

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› steve@sfbg.com
It’s been a week since City Attorney Dennis Herrera invalidated the seemingly successful referendum drive challenging the Bayview Hunters Point Redevelopment Plan, and everyone involved is still wondering what’s next.
Can the biggest redevelopment plan in city history just move forward as if more than 33,000 city residents hadn’t signed petitions asking to vote on it? Legally, that’s where the situation now stands. But even Herrera told the Guardian that the legal question he answered is separate from the policy and political questions.
Should the Board of Supervisors hold a hearing to discuss the controversial issues raised by redevelopment and this referendum? Should it consider repealing the plan and allowing a ballot vote, as some supervisors want?
And if each referendum petition must include a thick stack of all related documents, as Herrera’s opinion indicates, won’t that make it prohibitively expensive for a community group to ever challenge such a complex piece of legislation? Have the citizens in effect lost the constitutional right to force a referendum on a redevelopment plan?
“I can’t speak to what the practical effect will be. I can just tell you what the state of the law is,” Herrera told us, noting that referendum case law clearly indicates that the petitioners should have carried the 62-page redevelopment plan and all supporting documents, not simply the ordinance that approved it.
A “TERRIBLE” DECISION
Four supervisors — Chris Daly, Tom Ammiano, Gerardo Sandoval, and Ross Mirkarimi — voted against the plan in May. All have expressed concern about Herrera’s decision, but none have yet called for a hearing.
“Whether you agree or disagree with this opinion on the validity of the redevelopment referendum, it raises some grave concerns that this process — a democratic, grassroots process — was overturned,” Mirkarimi told us. Daly called the decision “terrible.”
Yet given that they need the support of at least two more supervisors to reconsider the plan, Mirkarimi conceded that the next step will probably have to come from a lawsuit by the petitioners, a move referendum coalition leaders Willie Ratcliff and Brian O’Flynn say they intend to pursue if political pressure fails.
“It’s unclear what the next steps are to dislodge this from the legal shackles that knocked it down,” Mirkarimi said. “Something doesn’t smell right, and it’s difficult to trace the odor completely without the courts getting involved.”
But Ratcliff hasn’t given up on forcing a political solution, which he is pushing through his coalition and the San Francisco Bay View newspaper he publishes. The paper last week ran a story on the decision under the hyperbolic headline “City Hall declares war on Bayview Hunters Point.”
“We’re talking to lawyers, but to us the last resort is going to court. We feel we can pull it off politically,” Ratcliff told us. “What this did really was unite this community. If the city will pull this kind of thing, how are we going to have any faith in this plan? We’re going to flex our power…. People are ready to fight now.”
One gauge of Ratcliff’s support in the community will come on the afternoon of Sept. 27, when he will lead a march and rally on the issue. The event is tied to the 40th anniversary of the so-called Hunters Point Uprising, when a teenager was shot by police and the resulting community backlash was violently quelled using National Guard tanks and police sharpshooters.
“With the 40th anniversary of the Hunters Point Uprising of Sept. 27, 1966, only days away, this sounds like a declaration of war against the same people who protested then and are protesting still against police brutality and for jobs, economic equity and the right to develop our own community and control our own destiny,” Ratcliff wrote in a front page editorial.
Ratcliff told us, “We’re going to have a big march out there to show the city that we oppose this plan.”
THE PLAN IS IN EFFECT
Herrera’s opinion on the referendum was requested by Mayor Gavin Newsom, the San Francisco Redevelopment Agency, Board of Supervisors president Aaron Peskin, and Sup. Sophie Maxwell.
Redevelopment Agency director Marcia Rosen told the Guardian that fears of redevelopment stem from how badly it was handled in the Western Addition in the 1960s, but that the agency and the political climate of the city have changed. She said the agency is approaching Bayview–Hunters Point in an incremental, community-based fashion. She said the plan should go forward and will eventually prove the fears are unfounded.
“The plan was adopted by the board and signed into law by the mayor, and there is no further action needed, so the plan is in effect,” she told us.
Maxwell and Peskin each said they’re inclined to just let the redevelopment plan go into effect, although Peskin said, “I’m not going to stop any supervisor from having a hearing on any subject.”
“It’s important to understand that this plan is a living document, so there will be changes and people talking to each other,” Maxwell told us. “It’s certainly not the end of anything.”
She told the Guardian that the referendum campaign used paid signature gatherers, money from a developer from outside the area, and distorted claims about eminent domain and other aspects of the plan — misrepresentations that signers could have checked if the plan was readily available as legally required.
“The democratic process has to be taken seriously, and democracy is not easy,” Maxwell told us. “The decision was about preserving the democratic process, and people need to have facts at their disposal. There has to be a process and there has to be a standard.”
That’s certainly true — and O’Flynn is a contractor who lives in the Marina. But it’s hard to imagine how carrying around thick stacks of paper filled with complex land-use plans would have made a difference. Most signers would never have stopped to take several hours to read it all.
John Matsusaka, president of the Initiative and Referendum Institute at the University of Southern California School of Law, said that referendum case law has been built around a few courts validating actions by civic officials to strike down citizen movements.
“The sad fact is it looked like elected officials are trying to keep measures off the ballot and looking for ways to support that,” Matsusaka told the Guardian. “Preventing the people from voting is really not going to bring harmony to the community.” SFBG
The Defend Bayview Hunters Point Coalition’s Sept. 27 march begins at 3:30 p.m. at the Walgreens at 5800 Third St. and Williams and continues up Third Street to Palou Street, where there will be a press conference and rally at 4:30 p.m.

The 2006 political candidates let loose with us

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(For our 2006 endorsements, click here.)

Guardian endorsement interviews are, well, unusual: We bring in candidates for office, set aside as much as an hour or more, and quiz them about local issues. Sometimes we argue; sometimes the candidates yell at us. Nobody pulls any punches. They are lively political debates, fascinating discussions of political policy – and high political theater.

For the first time this year, we’re posting digital versions of these interviews, so our readers can get front-row seats for all the action.

Participants include Editor and Publisher Bruce B. Brugmann, Executive Editor Tim Redmond, City Editor Steven T. Jones and reporters Sarah Phelan, G.W. Schulz and Amanda Witherell. If you’re confused about who’s speaking, here’s a handy guide: If the question is long and involved and about tax policy, it’s probably Tim. If it’s about an incumbent’s record or personal style, it’s probably Steve. George asks about criminal justice a lot; Sarah has a British accent. Everybody knows Bruce’s voice; you can’t miss it. Enjoy.

Sup. Sophie Maxwell
“Redevelopment in the Bay View is different.”
Listen to the Maxwell interview

Sup. Bevan Dufty
“I’m willing to piss people off on both sides of the [landlord-tenant] issue.”
Listen to the Dufty interview

Jaynry Mak, candidate for supervisor, District 4
“I would have to look at it.”
Listen to the Mak interview

Alix Rosenthal, candidate for supervisor, District 8
“We’re going to make it extremely expensive to build market-rate housing, in terms of the community benefits.”
Listen to the Rosenthal interview

Mauricio Vela, candidate for school board
“I probably would lean toward getting rid of [ROTC} … but it would be difficult.”
Listen to the Vela interview

Marie Harrison, candidate for supervisor, District 10
“The one thing I did learn from Willie Brown is that an MOU means I understand that you understand that I don’t have to do a damn thing on this paper.”
Listen to the Harrison interview

Starchild, candidate for supervisor, District 8, and Philip Berg, Libertarian candidate for Congress
“Nobody will invade Switzerland. Everyone has guns, M-16s and AK-47s and grenade launchers in their living rooms.”
Listen to the Starchild-Berg interview

Bruce Wolfe, candidate for community college board
“When you ask where the money is, you want a trail where the money is, the answer you get is it’s in a fungible account.”
Listen to the Wolfe interview

Kim-Shree Maufas, candidate for school board
“My kid was in JROTC …. I like the community, I liked the structure, I liked the commitment to family… I absolutely could not stand the military recruitment.”
Listen to part one of the Maufas interview
Listen to part two of the Maufas interview

Hydra Mendoza, candidate for school board
“There are some schools that are not serving our children.”
Listen to the Mendoza interview

Krissy Keefer, Green Party candidate for Congress
“I’m running against a ghost”
Listen to the Keefer interview

John Garamendi, candidate for lieutenant governor
“Phil Angeledes is wrong [about taxes] in the context of our time.”
Listen to the Garamendi interview

Dan Kelly, school board member
“I don’t think JROTC is a terrific program … it doesn’t teach leadership skills, it teaches follow-ship skills.”
Listen to the Kelly interview

Rob Black, candidate for supervisor, District 6
“Developers have fancy lawyers and they know how to get around things.”
Listen to the Black interview

A vote on Oak to Ninth

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In just 30 days, the Oak to Ninth Referendum Committee collected the signatures of 25,068 Oakland residents who want a chance to vote on a massive development project that would bring 31,000 new homes to the Oakland waterfront. But the matter may never be on the ballot: on Sept. 6, Oakland City Attorney John Russo directed the city clerk to invalidate the petition because it didn’t conform to the requirements of state election law.
It’s likely that from a legal standpoint Russo’s determination is correct. Nevertheless, the decision exposes flaws in California’s election system that the state legislature should fix. In the shorter term, the Oakland City Council ought to recognize that there’s strong public sentiment for a referendum on the project and put Oak to Ninth before the voters.
It’s tough to force a referendum vote on an act of local government: you need to gather a significant number of signatures within 30 days of the passage of the bill — and there are no second chances. If the petition doesn’t meet every possible legal standard — and the standards are high, the rules complex — then the referendum is dead forever.
Erica Harrold, communications director for Russo’s office, told us she sympathized with the plight of Oak to Ninth foes and acknowledged that the current rules applying to referendum petitions are “draconian.” Russo, she said, is seeking reforms to the current system, including establishment of a new rule that would not start the 30-day period until the city provides a certified final version of an ordinance to petition sponsors. That was a key issue in this conflict: the Oak to Ninth Referendum Committee apparently had to rush to gather signatures to meet the deadline and for various reasons did not submit the version of the ordinance that Russo and the City Council consider the final draft (additionally, the committee did not include certain attachments to the ordinance that the City Attorney’s Office says were required).
The legislature should follow Russo’s suggestion and change the deadlines. It should also consider allowing petition sponsors to cure unintentional defects in their petitions.
State legislative reform can’t come quickly enough to remedy the current situation involving the Oak to Ninth petition. But the City Council can still act: it’s well within the authority of local officials to simply acknowledge the public interest in (and demand for) a citywide vote on a project that will change Oakland forever — and place the entire matter on next June’s ballot.
There’s no rush to break ground here — in fact, we’ve long argued that the project shouldn’t have final approval until the incoming mayor, Ron Dellums (who has expressed real concerns with the deal), takes office. Legal technicalities aside, the bottom line is simple: Oakland residents deserve a chance to be heard on Oak to Ninth. SFBG
PS Stop the presses: on Sept. 19, San Francisco City Attorney Dennis Herrera ruled that petitions demanding a vote on the redevelopment plan for Bayview–Hunters Point were invalid — on a legal technicality similar to the one that undermined the Oakland petitions. Again, Herrera may well be legally correct (and we’re under no illusions here — the referendum was financed in part by a private housing developer) — but when in doubt, the desire of the voters to weigh in on an issue should be paramount. The supervisors should determine whether it’s possible to put this plan on the ballot anyway.

Reconsidering redevelopment

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

Referendum struck down

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By Steven T. Jones
San Francisco City Attorney Dennis Herrera has invalidated the referendum that challenged the Bayview Hunter’s Point Redevelopment Plan, ruling that it didn’t include all the documents that the more than 33,000 people who signed it needed to make an informed decision.
“They didn’t have the redevelopment plan itself for voters to evaluate,” Herrera spokesperson Matt Dorsey told the Guardian just after the decision was released Sept. 19.
But Willie Ratcliff, the Bayview Newspaper publisher who helped funded and coordinate the referendum drive, told the Guardian that they carefully consulted with both city officials and their attorneys to ensure the documents complied with state law.
“We expected the city would try to look for a way out and of course we’re going to fight them in court,” Ratcliff said.
The Elections Department had ruled Sept. 13 that the referendum had enough valid signatures to stop the plan. The Board of Supervisors then had the option of repealing it or submitting it to a popular vote. But board clerk Gloria Young is now required by law to invalidate the referendum and only a judge can now make it valid.
The board, which approved the plan on a 7-<\d>4 vote in May (with supervisors Tom Ammiano, Chris Daly, Ross Mirkarimi, and Gerardo Sandoval in dissent), could still act independently to repeal the plan and submit it to a vote, as recall campaign coordinator Brian O’Flynn is urging. “The will of the voters should be respected,” he told us
The plan would put about 1,500 acres in Bayview-<\d>Hunters Point under San Francisco Redevelopment Agency control, set new development standards, and collect all property tax increases into a fund that would go toward projects in the community. Opponents fear the plan would displace current residents and gentrify the area.

More soon

Here comes Miami Beach

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› gwschulz@sfbg.com
A pebbled, unmarked trail crunches underneath Peter Loeb’s soft leather shoes as he walks through the Rockaway Quarry in Pacifica, his dog following behind.
Until recently, the 87-acre plot was owned by a man named William F. Bottoms. But he never showed much interest in developing it, and locals have long used the network of trails for hiking. It’s one of the few remaining vacant lots of its size in Pacifica.
Bordering the west side of the property is a ridgeline — a small stone peak literally cut in half by what was once a noisy limestone mining operation — that separates the Pacific Ocean from flat seasonal marshlands that turn to rolling hills just past the highway, where the property stops.
Like the rest of the small coastal town, the former quarry is submerged much of the year in a thick, fast-moving fog. From the ground, it hardly seems like an ideal place in which to introduce luxury living.
“It’s the windiest spot in Pacifica,” Loeb says. “It’s the coldest, windiest spot in the whole city.”
But its close proximity to San Francisco has a headstrong Miami developer drooling.
R. Donahue Peebles bought the quarry last summer for what he says was $7.5 million, and although he hasn’t actually submitted a formal proposal to the town, he’s talking about building 350 exclusive hotel suites, 130 single-family homes, more than 200 town houses, live-work lofts and apartments, and an untold number of stores, such as the Gap and Trader Joe’s.
It’s an unusual battle for the normally quiet town. Tucked 10 miles south of San Francisco just off Highway 1, Pacifica is a largely middle-class bedroom community of about 37,000 people that’s so overwhelmingly residential, it’s hardly seen any commercial development larger than a shopping center with a Safeway.
Loeb served on Pacifica’s City Council for eight years in the 1980s and has lived in the same home near the quarry for three decades. He helped formulate the land use plan for the property, which was designated a redevelopment area in 1986. The plan calls for mixed-use residential and commercial spaces, preservation of the walk and bikeway system, and “high-quality design in both public and private developments including buildings, landscaping, signing and street lighting.”
Joined by a stay-at-home dad named Ken Restivo, Loeb is now organizing the opposition to Peebles — and it hasn’t been an easy task. Peebles has already poured several hundred thousand dollars into a campaign to overturn a 1983 city law that requires voter approval of a housing element in the redevelopment zone. This in a town where the typical council candidate spends less than $10,000 running for office.
Of course, as the opponents point out, it’s not clear exactly what Peebles wants to do. His plans are still tentative; he’s trying to get blanket approval for a massive development before he actually applies for a building permit.
The point of the 1983 law was to ensure that new development on the property would be mixed-use, mostly to offset the city’s high residential concentration and to increase the amount of money the city received in tax revenue.
“What he’s trying to do is privatize the certainty and socialize the risk,” Restivo said. “He wants to know whether he can build the houses before he even starts with a plan, and he wants to leave us trusting him to do whatever.”
Measure L on the November ballot would give Peebles the right to include as many as 355 housing units in any final plan. But even if the bill passes, Pacifica’s City Council would get to negotiate and vote on any final deal with Peebles.
Peebles isn’t the first developer to spend a small fortune attempting to overcome the required ballot vote to develop housing on the quarry, which could attract buyers from all over the millionaire-heavy Bay Area. A similarly well-funded effort failed just four years ago.
The difference is, Peebles likes to win — and has proven before that he knows how to do it.
When it comes to commercial and residential development, Peebles is a prodigy of sorts.
At just 23 years old, after one year at New Jersey’s Rutgers University, the ambitious young man forged a relationship with Washington, DC’s infamous former mayor Marion Barry.
The returns were handsome. Barry appointed Peebles to a city property assessment appeals board membership, a sleep-inducing government function that is nonetheless among the most powerful at the municipal level. Peebles also counts the legendary former congressman and now Oakland mayor–elect Ron Dellums as a mentor; a teenage Peebles worked for him as a legislative page.
“Ron was an interesting person,” Peebles said in a recent phone interview. “One of the things I learned was that you can have your own ideas. He was a very liberal member of Congress. He got to chair two committees even though he was an antiwar person [during Vietnam], because he respected the process.”
After a short tenure on the assessment board, Peebles was developing thousands of square feet of commercial space across the nation’s capital under the Peebles Atlantic Development Corporation, today known simply as the Peebles Corporation. Eventually, an attempt to lease a multimillion-dollar office building to the city inspired accusations of cronyism, according to a 2001 Miami New Times profile. Peebles left Washington and moved to Florida.
There he indulged in the truest spirit of American affluence, putting together enormous hotels and condominium complexes, working in partnership with public agencies. He earned a reputation for resorting to multimillion-dollar litigation when those relationships went bad.
Peebles is well aware that major developments naturally attract conflict. He says it took him a while to become thick-skinned as a controversial developer. In south Florida, however, he proved skilled at getting cranes into the air, completing a $230 million residential tower and a $140 million art deco hotel in Miami Beach during the first half of this decade.
And now he’s set his sights on the low-density, small-scale town of Pacifica.
“Pacifica is unique in many ways, but politically it’s not,” he told the Guardian. “If you look at any city, small or large, it always has people on both sides of the issue. There are people who like to say ‘no’ a lot. [In] most environments — if you look by and large across the country, DC for example — developers are generally not the most popular all the time. Pacifica is not different politically in that regard from other places.”
Press accounts depict Peebles as highly self-assured, even cocky. He once cited his favorite saying to the San Francisco Business Journal as “Sometimes you have to be prepared to stand on the mountain alone.” But he’s also charming and enthusiastic, something that Loeb admits has won Peebles the hearts of many Pacificans.
“The comments we get from people who have seen him speak is, ‘I was soooo charmed by him. I trust him,’” Loeb said. “On the basis of what?”
Restivo chimed in, “He’s a very charismatic speaker. He makes promises and gives voice to people’s fantasies and wishes.”
Pacifica isn’t technically the first place in California where Peebles has attempted to introduce his version of the East Coast’s taste for high-rise condos and hotels. In 1996 a bid to redevelop the old Williams Buildings at Third and Mission in San Francisco crumbled when the partnership he’d created with Oakland businessman Otho Green turned into a civil battle in San Francisco Superior Court. The two couldn’t agree on who would control the majority stake, and another bidder was eventually chosen by the San Francisco Redevelopment Agency. Peebles and Green later settled a $400,000 dispute over the project’s deposit, according to court records. Green, in fact, alleged in a complaint against the city that Willie Brown had him kicked out of the deal.
The 1996 fallout notwithstanding, Pacifica marks the first time Peebles has actually bought land on the West Coast for development.
And he’s using a proven political tactic to win over hearts and minds: fear.
The quarry is still zoned as commercial land, and if Measure L fails, Peebles reminds Pacificans, he could go to the city council with a proposal that strictly includes retail and office space.
In a letter he circulated to the city’s residents, he warned that the alternative to a plan that includes housing could just as easily be a Wal-Mart.
“Your ‘yes’ vote means we will have an opportunity to study and evaluate a better option for our community,” Peebles wrote in the letter. “A ‘no’ vote means we would be forced to file an application for a large scale commercial development such as a big box or a business/industrial complex.”
But a plan that exclusively contains commercial space doesn’t appear to be what Peebles really wants. Despite the fact that Pacifica is hardly the type of crony-driven city that he’s used to, he’s shown that he’s willing to pay what it takes to get his housing element.
In a six-month period, the political action committee that he formed to push through Measure L spent more than $163,000, according to campaign disclosure forms kept in Pacific’s tiny, half-century-old City Hall, which sits close to the ocean amid a neighborhood of clapboard beach houses.
Nearly $90,000 went to a Santa Barbara public relations firm called Davies Communications, whose clients range from schools and major oil producers to Harrah’s Entertainment and the Nashville-based privatization pioneer Hospital Corporation of America.
Two user profiles under the names “Jimmy” and “Susan” surfaced on a Google message board where the development has been discussed, and they link back to a Davies mail server in Santa Barbara. Jimmy and Susan claimed to be Pacifica residents in favor of Peebles’s plan. (A call to Sara Costin, a Davies project manager who’s been present at some of the community meetings, was not returned.)
Peebles spent $10,000 more on the influential Sacramento lobbying firm Nielsen, Merksamer, Parrinello, Mueller and Naylor, which specializes in passing ballot measures. Another $70,000 went to professional petition circulators who were needed to get the measure on a ballot.
Peebles isn’t the first one to bring big money to the city. Four years ago the publicly traded Texas developer Trammell Crow Company spent $290,000 just on election costs in an attempt to get a mixed-use development with housing past Pacifica voters, according to public records. The company’s plan for the quarry included 165,000 square feet of retail space, over 300 apartments and town houses, and a town center. The late 2002 ballot measure still lost by over 65 percent of the vote, despite the fact that the opposing political action committee, Pacificans for Sustainable Development, spent just $6,500.
An Environmental Impact Review released at the time suggested the wrong type of development could threaten the habitat of an endangered garter snake and a red-legged frog, both known to be living in the area. The lush Calara Creek, which runs the length of the property to the ocean, was also perceived to be in danger of pollution runoff without the proper setbacks. And traffic mitigation on Highway 1 has remained a top concern of the city’s residents.
Peebles insists he’s identified state money that can help with widening the highway and says he’d also donate land for a library and new city center. Beyond election costs, Peebles says he’s spent hundreds of thousands of dollars on experts who’ve helped him craft a better plan that promotes sustainability compared to what Trammel Crow had to offer.
“I’ve had an environmental consulting team and contractual consulting team for the last year analyzing this property, analyzing these issues that are necessary,” he said.
Affordability is another matter, however. Peebles has suggested to the business press that single-family home prices on the land could range from $3 million to $8 million.
A mixed-use development on the land could still bring millions of new tax dollars to a city that has struggled in the past to find money for emergency services and even basic public works projects.
Loeb and Restivo haven’t been without their own rhetoric in the debate. They started a Web site, www.pacificaquarry.org, which prophesies a nightmare traffic scenario on Highway 1 where it bottlenecks into two lanes through town. They add that estimates on potential tax revenue are unreliable without a definite plan.
But their group, Pacifica Today and Tomorrow, has hardly spent enough to even trigger disclosure requirements. And Pacifica remains a modest world, far removed from Miami’s glass-and-steel monoliths. Only a man with an ego equal to the size of his development dreams would try to so dramatically alter Pacifica’s topography. Peebles says he’s confident he’ll prevail in November.
Loeb and Restivo recognize that the area won’t stay empty forever, and they aren’t opposed to all development. Restivo told us he’d be more than happy to consider a commercial and residential project on the site — “but ideally it’d be much smaller.” SFBG

Behind the redevelopment initiative

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By Tim Redmond

I just said something nice about Randy Shaw, so it’s time to slap him a fast one. The big story in today’s BeyondChron is a gushing testimonial to the efforts of one Biran Murphy O’Flynn to block the city’s redevelopment plan for Bayview Hunters Point. Shaw calls O’Flynn’s efforts “the Little Engine That Could” (no, really, he does) and says that “O’Flynn’s tenacity in the face of funding problems, and the failure of any single powerful organization to take ownership of the campaign, shows how a single person’s passion and commitment can still make a difference in San Francisco.”

Okay, so there are problems with the redevelopment plan — but O’Flynn is no community hero. He’s the guy, you may recall, who tried to build some condos in what became a North Beach park and got so mad at Sup. Aaron Peskin for opposing the development that he tried to run against him in District Three, with an utter lack of success.

He’s a pal of Joe O’Donoghue and the residential builders, and is pissed at revevelopment, I suspect, not because he worries about the people in Bayview (remember, he ran for supervisor from North Beach, so presumably he lives there), but because the redevelopment plan, for all its flaws, would stop builders like him from turning the southeast neighborhoods into a condo development free-for-all.

The Race is On: Candidates for local Nov. 7 races

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By Sarah Phelan

Sixty-six took out papers. Forty-one filed, meaning that over one-third of the potential candidates in local races in the Nov. 7 election, bailed before the train even left the station.

So who’s in the running?

On the Board of Supes front, there are five races.
District 2 incumbent Michela Alioto-Pier, who has not accepted the voluntary expenditure ceiling and does not intend to participate in the public financing program, faces one lone challenger: business management consultant Vilma Guinto Peoro, who has accepted a voluntary expenditure ceiling and intends to participate in the pubic financing program.

In District 4, seven candidates are vying to fill the vacancy Sup. Fiona Ma created as Democratic nominee for Assembly District 12, (where she is running against the Green’s Barry Hermanson.) Mayor Gavin Newsom has endorsed Doug Chan, who lent his name to PG&E’s anti-Prop. D campaign, has not accepted voluntary expenditure ceiling and does not intend to participate in public financing campaign. Chan, who also got Ma’s endorsement and has served on the San Francisco Police Commission, Board of Permit Appeals, the Rent Board and the Assessment Appeals Board, has promised to return SFPD to its legally-required numbers (it currently operates 15 percent below voter-mandated leval), and upgrade policies, practices and technology, and would likely become the establishment conservative on the Board,

Other contenders are business consultant Ron Dudum, who lost against Ma in 2002 and against then Sup. Leland Yee in 2000, anti-tax advocate Edmund Jew, who would also be popular with the district’s conservative base, and San Francisco Immigrant Rights Commissioner and Fiona Ma-supporter Houston Zheng, David Ferguson, Patrick Maguire and Jaynry Mak, though Neither Maguire nor Mak, who has already raised $100,000, had filed papers as of Aug. 11, perhaps because District 4 has a Aug. 16 filing extension, thanks to departing incumbent Ma.

District 6 incumbent Chris Daly, who has accepted voluntary expenditure ceiling and intends to participate in public financing campaign, appears to face the biggest fight—at least in terms of numbers, with seven challengers hoping to fill his shoes. Of these Mayor Gavin Newsom has portrayed former Michela Alioto-Pier aide Rob Black, who has accepted voluntary expenditure ceiling and intends to participate in public financing campaign, as “the best contender to lessen divisiveness in the district.”
Fellow challengers are Mathew Drake, Viliam Dugoviv, Manuel Jimenez , Davy Jones, Robert Jordan and George Dias.

District 8 incumbent Bevan Dufty faces stiff opposition from local resident and Oakland deputy city attorney Alix Rosenthal, who was instrumental in turning around the city’s Elections Department, has worked on turning the former Okaland Army Base over to the Redevelopment Agency and has helped rebuild the National Women’s Political Caucus. Rosenthal, who is running on a platform of affordable housing, sustainability and violence prevention, also wants to keep SF weird.

In District 10, Incumbent Sophie Maxwell, who says a November ballot measure opposing the Bayview Redvelopment Plan is based on fear and unfairness, has five challengers: Rodney Hampton Jr., Marie Harrison, Espanola Jackson. Dwayne Jusino, and former Willie Brown crony Charlie Walker. Of these, the most serious are Harrison, helped shut down the Hunter’s Point PG&E plant and has worked for decades to fight all the pollution that’s being dumped on southeast residents, and Espanola Jackson, who has fought for welfare rights, affordable housing, seniors and the Muwekma Ohlone.
In other races, Phil Ting runs unopposed as Assessor-Recorder.
18 challengers are fighting over three seats on the Board of Education, one of which is occupied by incumbent Dan Kelly, and six candidates are vying for three seats on the Community College Board, one of which is occupied by incumbent John Rizzo.

Olympic dreams

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By Steven T. Jones
So, Mayor Gavin Newsom tells the dailies that San Francisco is going to pull out all the stops to snag the 2016 Olympics, using Hunter’s Point to house the athletes and staging the games at a delux Candlestick Park (ie public subsidies for the 49ers new stadium). No wonder so many people worried that the new Bayview Hunter’s Point Redevelopment Area might be used to line the pockets of big corporations and developers instead of benefitting the people of the southeast. But Newsom tries some win-win spin by offering to let poor folks have the 4,000 apartments he wants to build when the athletes are all done — 10 years from now. A question: if we have the resources to build a bunch of publicly subsidized apartments, why don’t we do so now? Make no mistake, this is about our mayor’s ego and political ambitions more than the interests of city residents, particularly those of the southeast, which have already endured more than their share of capitalism’s hidden costs.

Newsom loses control

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› steve@sfbg.com

In the early days, the mayor tried to sound like a practical, hands-on executive who was ready to run San Francisco.

Mayor Gavin Newsom used his inaugural address on Jan. 8, 2004, to emphasize that he was a uniter, not a divider and that he wanted to get things done.

"I say it’s time to start working together to find common purpose and common ground," he proclaimed. "Because I want to make this administration about solutions."

It’s a mantra he’s returned to again and again in his rhetoric on a wide range of issues, claiming a "commonsense" approach while casting "ideology" as an evil to be overcome and as the main motive driving the left-leaning majority of the San Francisco Board of Supervisors.

"Because it’s easy to be against something," Newsom said on that sunny winter day. "It’s easy to blame. It’s easy to stop…. What’s hard is to hear that maybe to come together, we need to leave behind old ideas and long-held grudges. But that’s exactly what we need to do."

But if that’s the standard, Newsom has spent the past 17 months taking the easy way.

It’s been a marked change from his first-year lovefest, when he tried to legalize same-sex marriage, reach out to BayviewHunters Point residents, and force big hotels to end their lockout of workers.

A Guardian review of the most significant City Hall initiatives during 2005 and 2006 as well as interviews with more than a dozen policy experts and public interest advocates shows that Newsom has been an obstructionist who has proposed few "solutions" to the city’s problems, and followed through on even fewer.

The Board of Supervisors, in sharp contrast, has been taking the policy lead. The majority on the district-elected board in the past year has moved a generally progressive agenda designed to preserve rental units, prevent evictions, strengthen development standards, promote car-free spaces, increase affordable housing, maintain social services, and protect city workers.

Yet many of those efforts have been blocked or significantly weakened by Newsom and his closest allies on the board: Fiona Ma, Sean Elsbernd, Michela Alioto-Pier, and Bevan Dufty. And on efforts to get tough with big business or prevent Muni service cuts and fare hikes, Newsom was able to peel off enough moderate supervisors to stop the progressives led by Chris Daly, Tom Ammiano, and Ross Mirkarimi at the board level.

But one thing that Newsom has proved himself unable to do in the past year is prevent progressive leaders particularly Daly, against whom Newsom has a "long-held grudge" that has on a few recent occasions led to unsavory political tactics and alliances from setting the public agenda for the city.

Balance of power

The Mayor’s Office and the Board of Supervisors are the two poles of power at City Hall and generally the system gives a strong advantage to the mayor, who has far more resources at his disposal, a higher media profile, and the ability to act swiftly and decisively.

Yet over the past year, the three most progressive supervisors along with their liberal-to-moderate colleagues Gerardo Sandoval, Jake McGoldrick, Aaron Peskin, and Sophie Maxwell have initiated the most significant new city policies, dealing with housing, poverty, health care, alternative transportation, violence prevention, and campaign finance reform.

Most political observers and City Hall insiders mark the moment when the board majority took control of the city agenda as last summer, a point when Newsom’s honeymoon ended, progressives filled the leadership void on growth issues, problems like tenants evictions and the murder rate peaked, and Newsom was increasingly giving signs that he wasn’t focused on running the city.

"Gay marriage gave the mayor his edge and gave him cover for a long time," said Tommi Avicolli Mecca, a queer and tenants rights activist. "About a year ago that started to wear off, and his armor started to be shed."

Daly was the one supervisor who had been aggressively criticizing Newsom during that honeymoon period. To some, Daly seemed isolated and easy to dismiss at least until August 2005, when Daly negotiated a high-profile deal with the developers of the Rincon Hill towers that extracted more low-income housing and community-benefits money than the city had ever seen from a commercial project.

The Newsom administration watched the negotiations from the sidelines. The mayor signed off on the deal, but within a couple months turned into a critic and said he regretted supporting it. Even downtown stalwarts like the public policy think tank San Francisco Planning and Urban Research Association noted the shift in power.

"I think we saw a different cut on the issue than we’ve seen before," SPUR executive director Gabriel Metcalf told us. "Chris Daly is not a NIMBY. I see Chris Daly as one of the supervisors most able to deal with physical change, and he’s not afraid of urbanism…. And he’s been granted by the rest of the board a lot of leadership in the area of land use."

SPUR and Metcalf were critical of aspects of the Daly deal, such as where the money would go. But after the deal, Newsom and his minions, like press secretary Peter Ragone, had a harder time demonizing Daly and the board (although they never stopped trying).

Around that same time, hundreds of evictions were galvanizing the community of renters which makes up around two-thirds of city residents. Newsom tried to find some compromise on the issue, joining Peskin to convene a task force composed of tenants activists, developers, and real estate professionals, hoping that the group could find a way to prevent evictions while expanding home ownership opportunities.

"The mayor views the striking of balance between competing interests as an important approach to governing," Ragone told the Guardian after we explained the array of policy disputes this story would cover.

The task force predictably fell apart after six meetings. "The mayor was trying to find a comfortable way to get out of the issue," said Mecca, a member of the task force. But with some issues, there simply is no comfortable solution; someone’s going to be unhappy with the outcome. "When that failed," Mecca said, "there was nowhere for him to go anymore."

The San Francisco Tenants Union and its allies decided it was time to push legislation that would protect tenants, organizing an effective campaign that finally forced Newsom into a reactionary mode. The mayor wound up siding overtly with downtown interests for the first time in his mayoral tenure and in the process, he solidified the progressive board majority.

Housing quickly became the issue that defines differences between Newsom and the board.

Free-market policy

"The Newsom agenda has been one of gentrification," said San Francisco Tenants Union director Ted Gullicksen. The mayor and his board allies have actively opposed placing limitations on the high number of evictions (at least until the most recent condo conversion measure, which Dufty and Newsom supported, a victory tenants activists attribute to their organizing efforts), while at the same time encouraging development patterns that "bring in more high-end condominiums and saturate the market with that," Gullicksen explained.

He pointed out that those two approaches coalesce into a doubly damaging policy on the issue of converting apartments into condominiums, which usually displace low-income San Franciscans, turn an affordable rental unit into an expensive condominium, and fill the spot with a higher-income owner.

"So you really get a two-on-one transformation of the city," Gullicksen said.

Newsom’s allies don’t agree, noting that in a city where renters outnumber homeowners two to one, some loss of rental housing is acceptable. "Rather than achieve their stated goals of protecting tenants, the real result is a barrier to home ownership," Elsbernd told us, explaining his vote against all four recent tenant-protection measures.

On the development front, Gullicksen said Newsom has actively pushed policies to develop housing that’s unaffordable to most San Franciscans as he did with his failed Workforce Housing Initiative and some of his area plans while maintaining an overabundance of faith in free-market forces.

"He’s very much let the market have what the market wants, which is high-end luxury housing," Gullicksen said.

As a result, Mecca said, "I think we in the tenant movement have been effective at making TICs a class issue."

Affordable housing activists say there is a marked difference between Newsom and the board majority on housing.

"The Board of Supervisors is engaged in an active pursuit of land-use policy that attempts to preserve as much affordable housing, as much rental housing, as much neighborhood-serving businesses as possible," longtime housing activist Calvin Welch told us. "And the mayor is totally and completely lining up with downtown business interests."

Welch said Newsom has shown where he stands in the appointments he makes such as that of Republican planning commissioner Michael Antonini, and his nomination of Ted Dienstfrey to run Treasure Island, which the Rules Committee recently rejected and by the policies he supports.

Welch called Daly’s Rincon deal "precedent setting and significant." It was so significant that downtown noticed and started pushing back.

Backlash

Board power really coalesced last fall. In addition to the housing and tenant issues, Ammiano brought forward a plan that would force businesses to pay for health insurance plans for their employees. That galvanized downtown and forced Newsom to finally make good on his promise to offer his own plan to deal with the uninsured but the mayor offered only broad policy goals, and the plan itself is still being developed.

It was in this climate that many of Newsom’s big-business supporters, including Don Fisher the Republican founder of the Gap who regularly bankrolls conservative political causes in San Francisco demanded and received a meeting with Newsom. The December sit-down was attended by a who’s who of downtown developers and power brokers.

"That was a result of them losing their ass on Rincon Hill," Welch said of the meeting.

The upshot according to public records and Guardian interviews with attendees was that Newsom agreed to oppose an ordinance designed to limit how much parking could be built along with the 10,000 housing units slated for downtown. The mayor instead would support a developer-written alternative carried by Alioto-Pier.

The measure downtown opposed was originally sponsored by Daly before being taken over by Peskin. It had the strong support of Newsom’s own planning director, Dean Macris, and was approved by the Planning Commission on a 61 vote (only Newsom’s Republican appointee, Antonini, was opposed).

The process that led to the board’s 74 approval of the measure was politically crass and embarrassing for the Mayor’s Office (see “Joining the Battle,” 2/8/06), but he kept his promise and vetoed the measure. The votes of his four allies were enough to sustain the veto.

Newsom tried to save face in the ugly saga by pledging to support a nearly identical version of the measure, but with just a couple more giveaways to developers: allowing them to build more parking garages and permitting more driveways with their projects.

Political observers say the incident weakened Newsom instead of strengthening him.

"They can’t orchestrate a move. They are only acting by vetoes, and you can’t run the city by vetoes," Welch said. "He never puts anything on the line, and that’s why the board has become so emboldened."

Rippling out

The Newsom administration doesn’t seem to grasp how housing issues or symbolic issues like creating car-free spaces or being wary of land schemes like the BayviewHunters Point redevelopment plan shape perceptions of other issues. As Welch said, "All politics in San Francisco center around land use."

N’Tanya Lee, executive director of Coleman Advocates for Children and Youth, said the Newsom administration has done a very good job of maintaining budgetary support for programs dealing with children, youth, and their families. But advocates have relied on the leadership of progressive supervisors like Daly to push affordable housing initiatives like the $20 million budget supplemental the board initiated and approved in April.

"Our primary concern is that low- and moderate-income families are being pushed out of San Francisco," Lee told us. "We’re redefining what it means to be pro-kid and pro-family in San Francisco."

Indeed, that’s a very different approach from the so-called pro-family agenda being pushed by SFSOS and some of Newsom’s other conservative allies, who argue that keeping taxes low while keeping the streets and parks safe and clean is what families really want. But Lee worries more about ensuring that families have reasonably priced shelter.

So she and other affordable housing advocates will be watching closely this summer as the board and Newsom deal with Daly’s proposal to substantially increase the percentage of affordable housing developers must build under the city’s inclusionary-housing policy. Newsom’s downtown allies are expected to strongly oppose the plan.

Even on Newsom’s signature issue, the board has made inroads.

"In general, on the homeless issue, the supervisor who has shown the most strong and consistent leadership has been Chris Daly," said Coalition on Homelessness director Juan Prada.

Prada credits the mayor with focusing attention on the homeless issue, although he is critical of the ongoing harassment of the homeless by the Police Department and the so-called Homeward Bound program that gives homeless people one-way bus tickets out of town.

"This administration has a genuine interest in homeless issues, which the previous one didn’t have, but they’re banking too much on the Care Not Cash approach," Prada said.

Other Newsom initiatives to satisfy his downtown base of support have also fallen flat.

Robert Haaland of the city employee labor union SEIU Local 790 said Newsom has tried to reform the civil service system and privatize some city services, but has been stopped by labor and the board.

"They were trying to push a privatization agenda, and we pushed back," Haaland said, noting that Supervisor Ma’s alliance with Newsom on that issue was the reason SEIU 790 endorsed Janet Reilly over Ma in the District 12 Assembly race.

The turning point on the issue came last year, when the Newsom administration sought to privatize the security guards at the Asian Art Museum as a cost-saving measure. The effort was soundly defeated in the board’s Budget Committee.

"That was a key vote, and they lost, so I don’t think they’ll be coming back with that again," Haaland said, noting that labor has managed to win over Dufty, giving the board a veto-proof majority on privatization issues.

Who’s in charge?

Even many Newsom allies will privately grumble that Newsom isn’t engaged enough with the day-to-day politics of the city. Again and again, Newsom has seemed content to watch from the sidelines, as he did with Supervisor Mirkarimi’s proposal to create a public financing program for mayoral candidates.

"The board was out front on that, while the mayor stayed out of it until the very end," said Steven Hill, of the Center for Voting and Democracy, who was involved with the measure. And when the administration finally did weigh in, after the board had approved the plan on a veto-proof 92 vote, Newsom said the measure didn’t go far enough. He called for public financing for all citywide offices but never followed up with an actual proposal.

The same has been true on police reform and violence prevention measures. Newsom promised to create a task force to look into police misconduct, to hold a blue-ribbon summit on violence prevention, and to implement a community policing system with grassroots input and none of that has come to pass.

Then, when Daly took the lead in creating a community-based task force to develop violence prevention programs with an allocation of $10 million a year for three years Measure A on the June ballot Newsom and his board allies opposed the effort, arguing the money would be better spent on more cops (see “Ballot-Box Alliance,” page 19).

"He’s had bad counsel on this issue of violence all the way through," said Sharen Hewitt, who runs the Community Leadership Academy Emergency Response project. "He has not done damn near enough from his position, and neither has the board."

Hewitt worries that current city policies, particularly on housing, are leading to class polarization that could make the problems of violence worse. And while Newsom’s political allies tend to widen the class divide, she can’t bring herself to condemn the mayor: "I think he’s a nice guy and a lot smarter than people have given him credit for."

Tom Radulovich, who sits on the BART board and serves as executive director of Transportation for a Livable City (which is in the process of changing its name to Livable City), said Newsom generally hasn’t put much action behind his rhetorical support for the environment and transit-first policies.

"Everyone says they’re pro-environment," he said.

In particular, Radulovich was frustrated by Newsom’s vetoes of the downtown parking and Healthy Saturdays measures and two renter-protection measures. The four measures indicated very different agendas pursued by Newsom and the board majority.

In general, Radulovich often finds his smart-growth priorities opposed by Newsom’s allies. "The moneyed interests usually line up against livable city, good planning policies," he said. On the board, Radulovich said it’s no surprise that the three supervisors from the wealthiest parts of town Ma, Elsbernd, and Alioto-Pier generally vote against initiatives he supports.

"Dufty is the oddity because he represents a pretty progressive, urbane district," Radulovich said, "but he tends to vote like he’s from a more conservative district."

What’s next?

The recent lawsuit by the San Francisco Chamber of Commerce and the Committee of Jobs urging more aggressive use of a voter-approved requirement that board legislation undergo a detailed economic analysis shows that downtown is spoiling for a fight (see “Downtown’s ‘Hail Mary’ Lawsuit,” page 9). So politics in City Hall is likely to heat up.

"There is a real absence of vision and leadership in the city right now, particularly on the question of who will be able to afford to live in San Francisco 20 years from now," Mirkarimi said. "There is a disparity between Newsom hitting the right notes in what the press and public want to hear and between the policy considerations that will put those positions into effect."

But Newsom’s allies say they plan to stand firm against the ongoing effort by progressives to set the agenda.

"I think I am voting my constituency," Elsbernd said. "I’m voting District Seven and voicing a perspective of a large part of the city that the progressive majority doesn’t represent."

Newsom flack Ragone doesn’t accept most of the narratives that are laid out by activists, from last year’s flip in the balance of power to the influence of downtown and Newsom’s wealthy benefactors on his decision to veto four measures this year.

"Governing a city like San Francisco is complex. There are many areas of nuance in governing this city," Ragone said. "Everyone knows Gavin Newsom defies traditional labels. That’s not part of a broad political strategy, but just how he governs."

Yet the majority of the board seems unafraid to declare where they stand on the most divisive issues facing the city.

"The board has really, since the 2000 election has been pushing a progressive set of policies as it related to housing, just-taxation policies, and an array of social service provisions," Peskin said. "All come with some level of controversy, because none are free." SFBG

Hunters Point plan: Wait for an audit

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EDITORIAL The redevelopment plan for Hunters Point was heading for almost certain approval at press time, in part for a pretty dumb reason: It exists.

If you ask supporters of the plan, like Redevelopment Agency director Marcia Rosen, about the harsh criticism in some parts of the African American community, she’ll confront you with a very good question: What’s the alternative?

The area is economically depressed, the city and state don’t have much money to pour into it, and redevelopment at least offers the option of federal money and tax-increment bonds that could generate thousands of jobs, create thousands of units of affordable housing, help new businesses get going (and help old ones prosper), and generally improve the lives of a lot of struggling people.

At least, Rosen says, her agency has a tangible proposal. Even if it’s not perfect and no economic development plan ever is it’s something.

And that’s true, but we still have this lingering problem: The San Francisco Redevelopment Agency has never been anything but a disaster for the African American community. Since the 1950s the agency has used its extensive authority to drive black residents out of town, destroy black-owned businesses, eliminate existing affordable housing, and destroy the hearts of black neighborhoods.

And redevelopment has its own expenses according to the Board of Supervisors’ budget analyst, $100 million of the money the agency raises in tax-increment financing will go to overhead and administrative expenses.

Redevelopment is a powerful tool, which is why some progressives still like it. Despite the abuses of the past, they say, it’s possible to use that tool properly. A redevelopment agency can issue bonds backed not by the city but by the projected increase in tax revenue that will come from the economic revitalization of an area. Those bonds don’t require voter approval, provide immediate cash for things like permanently affordable housing, and have no impact on the city’s credit rating.

In the past, almost nobody has paid much attention to where the bond money actually goes and how much of the tax-<\h>increment financing winds up improving the lives of the people in the project area. That’s a serious problem.

Sup. Ross Mirkarimi, who represents the Western Addition a neighborhood that still suffers from the ugly scars of redevelopment argues that before the city launches a new redevelopment project, there ought to be a complete audit of where San Francisco redevelopment money has gone in the past. How much of the tax-<\h>increment money has subsidized the profits of private developers? How much has gone to market-<\h>rate housing? How much has gone to high agency salaries and expenses?

Equally important, how many people of color have been forced from their homes by redevelopment and how many have ever been able to return? How many minority-<\h>owned businesses have been destroyed, and how many created? How many jobs in redevelopment project areas have actually gone to residents of those areas?

How did the failures of the past happen and how can we keep them from happening this time around?

Mirkarimi’s proposal makes sense. This has been a long-term process: The city has been discussing Hunters Point redevelopment for some 10 years now. As long as there’s significant opposition in the community and as long as those q

Paying for renewal

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› gwschulz@sfbg.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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