Board of Supervisors

SF and UC systems dragging their feet on fossil fuel divestment

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The San Francisco Employees’ Retirement System and University of California Board of Regents — two local entities targeted by campaigns urging them to divest of their fossil fuel investments — remain resistant to the change despite official statements of support.

In April of last year, the San Francisco Board of Supervisors voted to push SFERS to divest from fossil fuels. Now, more than a year later, sponsoring Sup. John Avalos questioned Mayor Ed Lee during the July 15 Board of Supervisors meeting about what needs to happen to move toward divestment. Groups such as Fossil Free SF and 350 SF are asking the same question since the issue of climate change is nearing a critical threshold.

Kimberly Pikul and Jed Holtzman of 350 SF told the Guardian that now is the time for action. “There is only so much carbon that we can release before we cook the planet beyond a level to which we can adapt,” Holtzman told the Guardian.

Pikul and Holtzman explained that carbon reserves owned by publicly traded fossil fuel companies represent five times what would be required to “cook the planet.” Only 20 percent of owned reserves can actually be used without massive environmental consequences, so they say stock in a fossil fuel companies is overvalued, making it a risky investment.

“To protect the long-term financial health of the pension fund and the benefits of city workers and retirees, it is a certainty that SFERS needs to divest from its fossil fuel holdings,” said Holtzman.

Despite the unstable investments and risk of environmental change, Mayor Lee seemed more concerned with jobs and green projects when Avalos questioned him about the Retirement Board’s progress at the Board of Supervisors meeting.

Lee told Avalos: “Our commitment of $4.5 million a year to GoSolarSF will continue to create local green collar jobs and … contribute [to] the creation of locally produced 100 percent green energy. These are the kinds of meaningful investments that actually deploy dollars, create jobs, and move the needle on green energy.”

Despite SF’s support of green jobs, Avalos, Fossil Free UC and 350 SF see divestment as one of the pathways toward long-term environmental change and more sustainable energy projects.

But, as Avalos pointed out, the Retirement Board has “yet to take any steps to divest from fossil fuels or limit the retirement fund’s exposure to the financial risks posed by climate change.”

The only step taken so far is to initiate “Level 1” shareholder engagement with fossil fuel companies. Pikul and Holtzman explained that Level 1 engagement “is largely cosmetic and only calls for SFERS to vote their proxies on climate-related shareholder votes.” The next step is Level 2: shareholder advocacy and engagement with fossil fuel companies. The ideal is Level 3, or investment restriction/divestment.

SF isn’t the only city to seek divestment. Oakland and Berkeley are also pursuing the cause, as are Portland and Seattle. The University of California has also been deliberating the issue and plans to vote on divestment in September.  

But the UC Board of Regents seems skeptical, despite the push from students. UC President Janet Napolitano told the Daily Bruin, “Using divestment as a tool is something that should be done rarely, if at all.”

An open letter from faculty to the UC Regents, posted on Fossil Free UC’s website, bases the argument for divestment on students’ well-being: “Current students will be at the peak of life in 2050, identified by numerous studies as a point at which the global community will have either adequately responded to climate change, or will be suffering horribly from it.”

When Harvard rejected divestment in 2013, University President Drew Faust told the San Francisco Chronicle that she found “a troubling inconsistency in the notion that, as an investor, we should boycott a whole class of companies at the same time that, as individuals and as a community, we are extensively relying on those companies’ products and services for so much of what we do every day.”

Stanford University had a similar dependence issue, which is why it compromised by divesting from coal companies, instead of all fossil fuel companies. Before divestment, the university received $19 billion from coal-related investments, money that will now be invested in other things.

While the partial divestment is a step in the right direction, Fossil Free UC student organizer Silver Hannon said, in a press release following July 16 Regents meeting, “While partial divestment could stigmatize the dirtiest energy source, we need to see the Regents take a real leadership position on the issue by adopting a comprehensive fossil-free investment strategy.”

As for SF, Mayor Lee promises that divestment will happen after the Retirement Board has considered the consequences. Since there doesn’t seem to be a study currently underway, the best course of action is to keep Lee and other officials accountable for SF’s climate and clean energy goals, said Pukil and Holtzman.

Lee seems confident that SFERs will divest, even if the timeline is currently unclear.

“I know the commission does seriously consider the fiscal consequences of divestment, and sometimes they decide the benefits outweigh the costs,” Lee told the supervisors. “I trust the Retirement Board and staff to make the right decisions in this regard.”

Anti-Eviction Mapping Project highlights Urban Green’s record of displacement

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The Anti-Eviction Mapping Project’s latest creation illustrates the eviction history of Urban Green Investments, a San Francisco-based real estate company that was recently put in the spotlight with its controversial attempted eviction of 98-year-old Mary Elizabeth Phillips.

The Mapping Project’s graphic shows the properties owned by Urban Green and its affiliates, assets that number 385 units in more than 15 buildings. According to the Mapping Project, they have displaced “numerous tenants in the San Francisco Bay Area,” led by the efforts of CEO David McCloskey.

“The Anti-Eviction Mapping Project created this map to expose how large and interconnected the Urban Green and McCloskey network is,” said Erin McElroy of the Anti-Eviction Mapping Project. “We have been shocked at how many tenants they have pushed out and in how many cities they are flipping properties.”

Urban Green’s website advertises the company as a “fully integrated real estate company with brokerage, property management and development capacities.” The company’s strategy is to acquire property, then add value by “increasing efficiencies, enhancing entitlements, and employing carefully calibrated green renovations.”

In recent years, Urban Green has been busy displacing tenants, including in October 2012, when it purchased a multi-family portfolio with 130 units in San Francisco. According to the Mapping Project, the company is involved in around 40 LLCs, “many of which they use to evict tenants and then flip buildings.”

“Companies like Urban Green wouldn’t be evicting tenants like Mary Phillips if we stopped the profiting of buying up then evicting whole buildings just to sell them quickly,” San Francisco Tenants Union Director Ted Gullicksen said in a statement. “We need to pass a surtax on transfers of apartment buildings within five years of last sale this November if we are to stop these displacement practices of speculators like Urban Green.”

Gullicksen referred to the anti-speculation tax that tenant activists and progressive members of the Board of Supervisors has place on the November ballot. Representatives of Urban Green have not returned Guardian calls for comment, but we’ll update this post if and when we hear back.  

Even residents outside the Bay Area have not escaped the reach of the McCloskey family, which has a long history of evictions. Urban Green is currently a subsidiary of the business run by David McCloskey’s Thomas McCloskey: Cornerstone Holdings. The family owns property in Colorado (where Cornerstone is based), New York, Hawaii, and California, according to the Mapping Project. Perhaps most controversially, the family owns 300 acres of land in Hawaii, called Kealia Kai, which greatly angered the Kaua`i people in the 1990s. After buying the land for $17 million, McCloskey unsuccessfully attempted to build a private beach community with his land.

More than 2,000 miles of sea separate Hawaii from Phillips’ apartment, but the residents of both areas are suffering similar fates at the hands of the McCloskeys. And though Urban Green stated last week that it would not continue its attempt to evict Phillips, attorney Steve Collier of the Tenderloin Housing Clinic issued a statement making it clear that the company’s efforts are not over. According to Collier, Urban Green’s new strategy is to force out Brant, which would remove Phillips by default because she relies on Brant’s care.

“This has been my home for over 40 years and I don’t want to leave. . . I am just too old,” said Phillips, according to the Mapping Project’s website. “I didn’t sit down and cry, I just refused to believe it. They’re going to have to take me out of here feet first. Just because of your age, don’t let people push you around.”

Alternative Ink discusses the flurry of SF ballot measures moving through City Hall

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Digging deep during the height of summertime fun and frivolity, we Guardianistas showed up in force last night for another lively and informative edition of our biweekly radio show, Alternative Ink, on BFF.fm. Listen to the podcast here (but don’t be fooled by the first minute from a past show, it’s a false front we used to hide this week’s treasure).

With the fall ballot being filled out inside City Hall in recent weeks, we discussed rival housing measures sponsored by Sup. Jane Kim and Mayor Ed Lee, as well as the anti-speculation tax. We also covered the Restore Transportation Balance (placed on the ballot by citizens) and Let’s Elect Our Elected Officials (which was narrowed denied a spot on the ballot by the Board of Supervisors) measures that have been burning up the SFBG comments section lately.  

We talked tech, prompted by our pair of long and insightful stories in last week’s issue, and we previewed an interesting story in our coming issue about how San Francisco is dealing with a flood of young immigrants who have showed up seeking refuge status. As always, the show was peppered with great music, this time with a decidedly international flair thanks for our award-winning Art Director Brooke Ginnard’s return from a three-week vacation in Europe (welcome back, Brooke).

After doing the show for a few months now, we’re starting to hit our stride — so much so that we’ve decided to do a live version of the show on the evening of Aug. 28 at the LGBT Center. So stay tuned for more information about the lineup for that show, and please tune in to our next radio show on Aug. 3. 

Housing supply and demand theory on trial at City Hall

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The November ballot is shaping into a housing supply theory showdown, and yesterday’s [Thu/17] Board of Supervisors Rules Committee hearing was the first round.

The committee hosted two hearings on rival housing proposals for the November ballot: Sup. Jane Kim’s City Housing Balance Requirement and Mayor Ed Lee’s Build Housing Now initiative. The two purport to set similar goals for building affordable housing, but Lee’s proposal contains a poison pill that would invalidate Kim’s measure. 

The mayor’s philosophy on housing, a strict supply and demand argument, was on full display. 

“[Housing] is a competition based on who has the most dollars in their pocket, and the ones with the most dollars win,” Olson Lee, director of the Mayor’s Office of Housing said at the hearing. “If we limit the supply, the people with the most dollars will win.”

The arguments are a little complicated, but let’s try to break them down: Kim’s initiative lays out a requirement for new construction to build 30 percent affordable housing and 70 percent market-rate housing. Currently, new construction projects can build on-site affordable or pay a fee into a pot, known as the Affordable Housing Trust Fund. If new construction needs to be exempt from the balance requirement, under Kim’s measure, that can be decided by the Planning Commission. 

But the mayor and his deep-pocketed development allies are shrinking away from this like the Wicked Witch of the West from water. Affordable housing doesn’t make a dime for developers, and the mayor fears Kim’s policy will slam the breaks on market-rate housing construction. 

Activist and San Francisco historian Calvin Welch argues supply and demand housing theories won’t solve the San Francisco housing crisis, via 48hills.

Yet Kim’s measure is based on what many progressives in San Francisco believe: San Francisco’s housing market is hot, profits are high, demand is insatiable, and building lots of market rate housing that will never be affordable to most San Francisco won’t solve the city’s affordable housing crisis. The construction pipeline won’t slow down with a few dings to profit margins, she argued. 

“I just have to say if building 30 percent affordable housing will halt development, we’re in a whole lot of trouble,” Kim said to her critics. “We have to build. Even people that make money leave San Francisco every day.”

No one is saying Kim doesn’t believe more housing needs to be built. But Lee’s staffers emphasized a belief that more housing construction alone is the solution to the city’s ills, a strategy that hasn’t exactly netted stellar results recently. They also defended the Affordable Housing Trust Fund, as the Mayor’s Office of Housing is funded about “40 percent” from developer’s fees, Olson Lee said. Sarah Dennis Phillips, from the Mayor’s Office of Economic and Workforce Development, argued sharply that any hit to developer’s fees, even marginal ones, would result in a loss of dollars for the city’s General Fund, the funding pot feeds most city services.

The mayor’s ballot initiative essentially asks for a vote of confidence in his plan to build or rehabilitate 30,000 housing units by 2020, which some in the press have pilloried as depending heavily on already-existing units. While 30,000 sounds like a lot, the Controller’s Office said San Francisco would need as many as 100,000 housing units to even make a dent in San Francisco’s skyrocketing housing prices, according to the SF Examiner (though he has since written the Examiner to say his sentiments were misconstrued). The city’s Civil Grand Jury recently released a scathing report of the mayor’s 30,000 housing unit goal, saying “While the residential real estate market is enjoying a strong recovery, it is doubtful the city can build its way out of the current affordability crisis.”

Meanwhile, people are losing their homes and fleeing the city. Some who are holding on by a thread came out to speak at the dueling hearings. 

“I have health challenges including cerebral palsy,” Justin Bennet said during public comment. He spoke with a difficulty in his jaw, haltingly and with much effort. He said the housing market made it difficult to move from the dangerous areas of the city he calls home. “I’ve been robbed outside several residences I’ve lived in, so I’m hoping for a change in my housing situation in the future. Thanks for letting me speak.” 

A family came up to the podium to speak, with two young housing activists, a brother and sister, 9 and 6, saying they didn’t want to see so many lose their homes.

Advocates from the SEIU 1021, South of Market Community Action Network, Alliance of Californians for Community Empowerment, and the Chinese Progressive Association, to name a few, were on hand at the hearing. They were also on hand for a press conference on the steps of City Hall shortly before the hearing. Ed Donaldson from ACCE called out the mayor’s housing measure, saying its only intent was to torpedo Kim’s. 

“I say we should play chicken with the mayor,” Donaldson said at the podium. Metal bands have sung with less volume than the baritone he used while booming, “Let’s see if he has the gall.”

Inside the hearing, Patrick Valentino (who championed luxury development on the waterfront) and Tim Colen of the Housing Action Coalition spoke, defending the mayor’s measure.

“As San Francisco, as a city in affordability, we’re failing. Our rate of failure is accelerating,” he said flatly. He criticized Kim’s plan and asked, “Where’s the money? No one disagrees we need it. The shortcoming I see in the housing balance measure is its premise that if we increase restrictions on market rate housing, it helps subsidize housing.” 

He argued instead to gather more stakeholders together (i.e. deep pocketed developers) to negotiate more private funding, a strategy he said that worked in the past. 

As others came to the podium to argue against developer greed, Colen watched on, shaking his head, seemingly in disagreement. When someone in public comment argued that developers so far have shirked their responsibilities to build affordable housing, he shook his head again and left the hearing room. 

There’s a stark divide in housing philosophy, and supply and demand’s ability to save San Francisco will soon see a trial by voter if Kim’s charter amendment can win six vote at the full Board of Supervisors. 

The mayor’s policies seem to be more of the same, Kim said, and now the city seems to be fighting over the crumbs of developers’ fees. Despite opposition from the mayor, Kim told the Guardian she’s open to new ideas from the mayor. 

But she also said she won’t back down. 

“We’re on a two-fold path right now. If there’s a compromise to get [the city] to 30 percent affordable housing, like new revenue, we’re open to that compromise,” she said. “But we always intended this to go to the ballot.”

San Francisco to study dropping speed limit to 20 mph for pedestrian safety

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As a part of a citywide effort to eliminate all pedestrian deaths by 2024, San Francisco will study the impact of reducing speed limits to 20 mph. 

“This is a reasonable issue to look into making San Francisco streets safer,” Sup. Eric Mar said, in a public statement. “There is too much excellent work and research going into it nationally and internationally to ignore.” 

The study was proposed by Mar as part of Vision Zero – a Swedish concept adopted by San Francisco at the behest of Sup. Jane Kim earlier this year. The initiative aims to reduce pedestrian deaths to zero within 10 years, with a focus on educating drivers, engineering roads for safety, and enforcing traffic laws (which the SFPD agreed to reform ealrier this year). Data from the study should be available in early fall. 

Where the speed changes would occur is the subject of the study. “We’re going to the experts,” Peter Lauterborn, Mar’s aide, told the Guardian. That’s the whole point of the study, he said, to figure out where and by how much speed could be reduced in the city to save lives. 

Modest adjustment to speed limits lowered pedestrian mortality rates in cities across the world.

Paris, London, cities in Sweden, and New York all implemented speed limit reductions to save pedestrian lives. According to the British Medical Journal, serious traffic-related fatalities or injuries decreased by 46 percent in 20 mph zones in London. 

The San Francisco Municipal Transportation Agency and the San Francisco Police Department got on board with the Vision Zero pedestrian safety plan, proposed by Sup. Jane Kim, earlier this year. 

According to California’s Office of Traffic Safety, San Francisco was ranked number one for traffic fatalities and injuries in 2011, compared to other similarly sized cities. 

“The overall frequency of traffic fatalities in the City of San Francisco constitutes a public health crisis,” the SFMTA warned in its Vision Zero web post. 

The statistics the SFMTA presented may seem dry, but tell the tale of preventable pain pedestrians suffered at the mercy of autos: Over the ten years from 2002 to 2011 the City lost a total of 310 lives to traffic fatalities. Each year alone on average 800 people are injured and 100 severely injured or killed while walking in San Francisco.

Sweden also saw fewer pedestrian crashes, despite increased traffic density. 

Walk SF has repeatedly advocated to fix intersections that are known to be especially dangerous, as only six percent of SF intersections are responsible for 60 percent of pedestrian crashes. Most of these areas are located in SoMa and the Tenderloin districts, the latter is where 6-year-old Sofia Liu was killed on New Year’ Eve

Walk SF’s Executive Director Nicole Schneider told us 20 mph zones would make it easier for cars to stop, expand drivers’ view of streets, and decrease the force of impact. 

In 2011 the city instituted 15 mph school zones after strong advocacy from Walk SF and other groups. While Schneider didn’t have any statistics about the impact of the speed limit on hand, she did say that there is a “perception of change” in these zones. 

But there are environmental benefits of slower speeds as well, Lauterborn told us: driving slower uses less gas. 

The U.S. Department of Energy says that speeding, rapidly accelerating, and frequently braking can decrease gas mileage by 33 percent. A lower speed limit would decrease driving costs as well as protect pedestrians. 

Lauterborn said even if the study shows a 20 mph speed limit would be beneficial, there are state laws that might prevent SF from lowering the speed limit. Local governments can only set the speed limit lower than 25mph on streets smaller than 25 feet wide or in business, residential, or school zones. To lower the speed limit to 20mph on a street like Sunset, the city would likely need state permission. 

At a fiery Board of Supervisors hearing on Vision Zero in January, a pedestrian who was hit by a car in 2013 named Jikaiah Stevens offered a scathing critique of current vehicle collision policies. “What is their incentive to drive safely when there are no consequences?” Stevens asked the board that night. A 20 mph limit may go a long way towards preventing pedestrian injuries like Stevens’.

“Let’s Elect Our Elected Officials” rejected at the Board of Supes

At today’s (Tue/15) Board of Supervisors’ meeting, members of the board voted 6-5 against placing a proposal on the November ballot that would create special elections when vacancies arise on the Board or in the Mayor’s Office.

If approved by voters, the measure would have immediate impacts on San Francisco’s political landscape. Board President David Chiu is vying for a seat in the California Assembly against Sup. David Campos, which will leave a vacancy on the board one way or another. 

But Sup. John Avalos, who authored the charter amendment proposal, noted that “this measure is not about any existing mayor or any existing supervisor.” Instead, Avalos described the measure as a bid to make city policy more democratic. 

“It will allow voters to decide who fills vacancies in special elections,” Avalos said.

As things stand, when a supervisor’s seat is vacated, it’s up to the mayor to appoint that official’s replacement. When a mayor’s seat is vacated, a much more rare occurrence, it’s up to “a small minority of people – us,” to appoint the city’s top elected official, Avalos said. “This shapes how decisions are made, often behind closed doors.”

Taking this question to voters via special election would ultimately be more democratic, he added. “If you are on the fence on this measure, I hope you can still send this ballot measure over to the voters,” Avalos told his colleagues.

Sups. London Breed, Katy Tang, and Scott Wiener each spoke in opposition to the idea.

“It’s not a perfect system, but no system ever is,” Breed said. “I’m not sure what problem we’re trying to solve with changing the charter.”

Wiener sounded a similar note. “There are various ways you can do it, and no way is necessarily better or worse,” he said of the current system for appointing vacancies. “I don’t see how the system that we have is in any way broken.”

But Sup. David Campos chimed in to challenge that framing. “The question before this board is not, what is the best system? … The question is a lot simpler than that,” Campos said, “Since we are talking about democracy. The question is: Will we give voters in SF the opportunity to decide for themselves what the best system is? Let’s not you and I pre-judge what the voters are going to say.”

In the end the measure failed six to five, with Sups. Mar, Avalos, Campos, Chiu, and Jane Kim voting in favor.

Supes to vote on Avalos’ “Let’s Elect Our Elected Officials” measure

The San Francisco Board of Supervisors will vote tomorrow (Tue/15) on whether to submit a charter amendment to the ballot that would require a special election in the event of a vacancy on the Board of Supervisors or in the mayor’s office.

As things stand, the mayor holds the power to appoint someone to fill a vacant seat on the board. But Sup. John Avalos’ proposed ballot measure, unofficially dubbed “Let’s Elect our Elected Officials,” would shift that decision-making power to the voters. The measure needs six votes to pass.

If it wins voter approval, the measure would also likely have a significant impact on the city’s political landscape in the immediate future.

Sup. David Campos, who is co-sponsoring the initiative, is currently vying for a seat in the 17th Assembly District against Board President David Chiu, a narrow race that will leave a vacancy on the Board one way or another. If Campos, one of the board’s most progressive members, is elected, Mayor Ed Lee would presumably appoint someone to his seat with a rather different political bent.

The ballot needs an additional three votes (beyond its three sponsors) to reach the necessary six votes necessary for approval by the Board, and “it’s sort of up in the air at the moment,” according to Jeremy Pollock, Avalos’ legislative aide.

Some supervisors are reluctant to go against Lee by limiting mayoral power. Opposition from Sup. Katy Tang, herself a beneficiary of the current rules when she was appointed by Mayor Lee in February 2013, has also had an effect of the amendment’s approval.

But supporters of the bill are hoping the overall benefits of the measure will lead the supervisors to approve it.

“John sees this as a good government reform that takes some power away from the mayor and the Board and gives it to the voters,” Pollock said, with the hope that it would also work to discourage backroom deals.

Another potential issue raised over the approval of the measure is the cost of special elections, though it appears to be a relatively minor concern. According to the San Francisco Department of Elections, a special election for supervisors costs roughly $300,000 (a drop in the ocean given the city’s multi-billion dollar budget) and around $3.5 million for a citywide election, a substantial sum but also a relatively minor worry given the rarity of vacancies in the mayor’s office. Some might argue that given the importance of the mayor’s duties, that’s a small price to pay to allow the voters to have a say.

In addition to its main rule change, the measure includes a few other provisions, such as making an exception for the proposed rule if a regularly scheduled election would be held within 180 days of the vacancy.

It would also provide “that the Mayor appoints an interim Supervisor to fill a supervisorial vacancy until an election is held to fill that vacancy,” with the key addition that the interim supervisor would be ineligible to compete in that election.

That’s no small stipulation, given the sweeping historic success of incumbents in board re-elections. (Since 2000, when district elections returned, Christina Olague is the only incumbent who failed to gain re-election after being appointed.) Avalos appears set on plugging all holes with his proposed legislation, and it’s now up to the board to place it on the November ballot.

City will turn Francisco Reservoir into a park, with no affordable housing

San Francisco is getting a new park – but the deal has left some wondering why a small portion of the new parkland couldn’t have been set aside to build housing for teachers and firefighters.

On July 8 members of the San Francisco Public Utilities Commission voted unanimously, amid a flurry of congratulatory exchanges, to transfer the Francisco Reservoir to the Recreation and Parks Department. Nearly everyone who weighed in during public comment praised the decision to convert the reservoir site into open space for the surrounding neighborhood. Located near Russian Hill on Hyde Street just above Bay Street, the Francisco Reservoir has gone unused for the better part of century.

One speaker did offer some balance. “We have the mayor and the Board of Supervisors constantly hitting us over the head saying we need housing,” she pointed out. “We have to start somewhere.” 

Under city law, publicly owned “surplus property” – as the Francisco Reservoir is categorized – must be considered for affordable housing before city departments may let it go for any other use.

Yet during years of discussion between neighbors and city officials to discuss this 4-acre parcel, the idea of building affordable housing apparently didn’t even receive minimal consideration.

Instead, the affluent neighbors wanted a park – and managed to raise nearly $10 million in private funding through several neighborhood associations to help make it happen. That money has been pledged for a park endowment, to cover development and maintenance purposes.

According to City Attorney spokesperson Matt Dorsey, the city’s “enterprise agencies” are exempted from the affordable housing requirement in the surplus property ordinance – this applies to surplus parcels under the ownership of the Port, the SFPUC, the SFMTA, and the Recreation & Parks Department.

A memorandum of understanding approved by the SFPUC, which must win the approval of the Board of Supervisors and the mayor before being finalized, grants some $10 million from the Recreation and Park Department’s open space fund to purchase the Francisco Reservoir from the SFPUC.

Open space is generally a wonderful amenity in an urban environment, particularly for land that hasn’t been used in decades. As Jan Blum noted at the hearing, the parkland will provide environmental benefits such as “habitat for migratory birds, as well as local wildlife.”

But the city’s decision to convert surplus property to open space comes just as Mayor Ed Lee is seeking to build 30,000 new housing units to stem the affordability crisis.

John Stewart, a prominent affordable housing developer appointed to serve on Lee’s affordable housing task force, told the Guardian that he got nowhere when proposing the idea of affordable housing construction for a small portion of the Francisco Reservoir parcel.

Stewart, who emphasized to the Bay Guardian that his company has no financial ties nor interest in developing a project there, penned an editorial for the San Francisco Business Times earlier this year on the Francisco Reservoir transfer, asking, “Why not expand the conversation to include the subject of housing?”

The idea was not well received. “I did not even propose tax-credit, tax-driven, very low income housing,” Stewart noted. “I proposed moderate-income, for teachers and nurses.”

The neighborhood plan showed the area at the end of the parcel, where Stewart thought housing could go, as a dog run.

Sup. Mark Farrell, who represents District 2, where Francisco Park would be located, was deeply involved in discussions about converting the reservior into a park. Farrell’s office didn’t return calls seeking comment, nor did the SFPUC.

“Sup. Farrell didn’t want me speaking to these groups,” Stewart said. “Nobody said, come by, come to our coffee klatch, make the case and we’ll at least talk it over. Nobody wanted to discuss it – that was clear. There was polite silence. But there was silence,” he said. “And their view is – and it’s understandable – they really want to have the whole thing.”

SF to consider joining Richmond in fighting banks over underwater mortgages

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Plans to ease San Francisco’s often overlooked home foreclosure crisis will have to wait a bit longer. The San Francisco Board of Supervisors this week delayed a resolution that would show the city’s “intent” to save underwater mortgages in favor of a resolution that might actually have begin to intervene in underwater mortgages.

“The idea of people losing their homes is very disheartening,” Sup. John Avalos told the Guardian. “I’m looking forward to an ordinance that would actually allow San Francisco to join a JPA [Joint Powers Authority] and enable us to have leverage over banks.”

The original proposal would have stated San Francisco’s “intention” to form a JPA with the City of Richmond in the obscure—and controversial—use of eminent domain to acquire and fix underwater mortgages for homeowners in working class neighborhoods. But Avalos said that the resolution was primarily aimed at supporting Richmond in defending its principal reduction program.

“The resolution in support of Richmond’s work is not as timely as it was and I want to make sure I can work with you colleagues about the relationship around how we can actually have an ordinance to join a JPA with the city of Richmond and have all of our questions answered as we’re going through that process,” he told the Board of Supervisors on Tuesday.

Eminent domain is a law that allows the government to purchase private property for public use, including nontangible assets such as mortgages. The use of eminent domain to acquire underwater mortgages (when mortgage payments that exceed the value of homes) could be a godsend for homeowners who have been bamboozled by predatory lenders.

Yet Richmond, receiving national attention for the gutsy strategy, faced intense criticism—even federal lawsuits—from banks and financial institutions of late. Certain banks and financial institutions warned lending would halt if the strategy were attempted. Although Richmond recently braved attempts to quash its principal reduction plan, a JPA with San Francisco would allow both cities to leverage some power over banks.

“One city doesn’t have the resources to do it alone,” Sup. David Campos, who co-sponsored the resolution, told the Guardian. “Collectively joining forces can do it, and can be strengthened by taking a regional approach.”

Yet Avalos explained that he has already experienced disagreement from banks, including Well Fargo. “We are swimming against the tide—against the institutions of our banks that have a stronghold on how local loans and mortgages are kept at high interest rates, on the ability homeowners have to renegotiate loans, and on how we can improve the actual principal of our loans,” he told the Board of Supervisors, which was met by public applause.

“People don’t feel a sense of urgency about the housing crisis, and we need to convince them,” Avalos told the Guardian. “Overall we’re two years from the Occupy movement that challenged banks, and people have forgotten the feeling of the time where people questioned how much power banks had over the loan modification.”

In San Francisco, focus has indeed shifted toward out-of-control rents, though fallout from the mortgage crisis still persists. Over 300 underwater mortgages are concentrated in San Francisco’s working class communities, 90 percent of which contain predatory features, according to the Mortgage Resolution Partners, a company helping Richmond administer and finance their principal reduction plan.

Although roughly 64 percent of San Francisco residents are renters, some working class community member still own their homes, and some, like Carletta Jackson-Lane—who has lived in District 10 for 27 years and who spoke at this week’s meeting during public comment—feels that the African American community has been hit especially hard by foreclosures.

“Don’t forget that foreclosures are directly related to the outward migration of African American families out of San Francisco,” she said. “The reality is that in the Mission, there’s a different impact because they were mostly renters.

“The other impact in the African American community—especially in District 10—is that they were single family property owners, so when the foreclosure crisis happened, it knocked them out,” she explained. “And that’s multiple generations.”

Avalos sent the resolution back to committee for modification, and he expects a resolution to be voted on in August. “I don’t want San Francisco to be a place where only the wealthy can survive,” Avalos said.  “But in order to make serious changes we have to break a few eggs.”

When asked what those eggs were, he responded, “What currently is.”  

Treasure Island development plans moving forward after lawsuit rejected

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Construction on the first 1,000 of up to 8,000 new homes planned for Treasure Island could begin as soon as next year after the State Appeals Court this week rejected a challenge of the project’s environmental impact report by Citizens for a Sustainable Treasure Island, a grassroots group led by former supervisor Aaron Peskin.

The group challenged the project’s unanimous 2006 approval by the Board of Supervisors after its terms were modified the next year by the developers, Wilson Meany and Lennar Urban, to increase the number of homes and decrease their affordability. The project Peskin helped approve was 6,000 homes, 30 percent of them affordable, but now it’s up to 8,000 homes, 25 percent affordable.

More recently, stories by the Center for Investigative Reporting/Bay Citizen, San Francisco Chronicle, and others have also found evidence of lingering radiological contamination on the island from its days as a US Navy base, something that Peskin told us should raise concerns about the project.

“Obviously, we are disappointed in the court ruling and are very concerned it ignores the now widely reported news that Treasure Island is much more contaminated, by radiologically contamination, than we knew,” Peskin told us. As for whether his group intends to appeal the case to the California Supreme Court, he said, “We are assessing our options.”

Wilson Meany principle Chris Meany didn’t immediately return Guardian calls for comment (we’ll update this post if and when we hear back), but in a press release, he said, “After several years of unnecessary and costly litigation, we can finally begin building more homes for people who want to live in San Francisco.”

In addition to the homes, the project includes up to 500 hotel rooms, 450,000 square feet of retail space, 100,000 square feet of office space, and 300 acres of open space. To compensate for projections that rising seas caused by global warming would inundate the artificial island by the end of the century, its height will be raised substantially, with the EIR noting there will be about 100,000 trucks of landfill coming over the Bay Bridge during construction.

Traffic generated by the project has been a major concern of transportation officials from the beginning. San Francisco Transportation Authority Executive Director Tilly Chang said the challenge was, “How do you keep the Bay Bridge flowing and not muck up traffic?”

The plan calls for expanded bus and shuttle service to Treasure Island, new ferry service from the Ferry Building, and both expensive parking on the island for non-residents and a toll for driving onto the island, most likely set at $5, Chang said. The ferry service is set to launch around when the first phase of housing construction is complete, probably in 2018.

Meanwhile, work has already begun on a project to replace and improve the freeway ramps at adjacent Yerba Buena Island and the bridge that connects them to Treasure Island. SFTA Deputy Director for Capital Projects Lee Sage said the ramps will give much more time for cars to slow down or accelerate as they enter or exit the freeway there.

“It’s going to be very complicated, but we’re on target,” he said, estimating the eastside ramps will be done in 2016 and the westside ones a few years later.

Just last month, the Board of Supervisors approved terms accepting Treasure Island from the US Navy. Later this month  assuming that the issue of radiological contamination doesn’t derail the transfer — the city and project developers are scheduled to pay the Navy $55 million for Treasure Island and complete the deal.

But Peskin’s group and its attorney Keith Wagner, objected to the transfer in a June 25 letter to the Navy, calling for more studies on the substantially increased density of development on the island and more thorough testing and cleanup of contamination.

Wagner wrote, “In summary, the Navy’s 2003 EIS, on its own terms, did not evaluate the true nature of the City’s far more expansive contemporaneous development plans/proposals, let alone the even more expansive development plans that were ultimately devised and approved by the City in 2011; in the decade since the 2003 EIS was finalized, the Navy has developed significant and substantial new information indicating the nature, scope and severity of radiological and hazardous materials across NSTI that could impact the City’s 2011 development plans.”

Elder care facility under pressure not to move forward with evictions

A group of senior citizens, mostly in their 80s and 90s, faces eviction from the University Mound Ladies Home, a San Francisco elder care facility serving residents of modest means that has been in operation for 130 years.

The University Mound Board of Trustees has said the nonprofit organization that runs the home is too far in debt to keep the doors open.

Nevertheless, interim director Bill Brinkman and members of the Board of Trustees have rejected the city’s offer of temporary financial assistance. University Mound has entered into an agreement to sell the facility to Alta Vista School for $5.4 million as a way to pay off its debts, making it clear at a public hearing that it would not reconsider this plan despite the city’s attempts to intervene on behalf of the impacted residents.

At the Board of Supervisors’ Neighborhood Services and Safety Committee today [Thu/10], Sup. David Campos put board treasurer John Sedlander on the spot.

“The city has given you every opportunity to stay open,” Campos said, referencing offers made when his office met with University Mound leadership shortly after the closure was announced. “We are willing to put money on the table, to keep this open temporarily, until we find a long-term viable solution. Are you willing to accept that?”

But Sedlander insisted that this was not a viable option. “We’ve been financing our operations for the past six years … with debt,” he said. “We are unable to make the payroll unless we were to close this facility. … It’s one of those things that’s just a model that doesn’t work.” 

The closure has sparked widespread community concern, in part because it can be very dangerous to force people in frail health to move.

“They’re playing with people’s lives,” Eddie Shine, whose mother is 97 and lives at University Mound, told the Bay Guardian. “A move would be devastating, which is why I’m so passionate about this,” she added.

Speaking during public comment, Anna Stratton said she was concerned that her 87-year-old mother would “feel isolated and alone” after being transferred to a Hayward retirement home. “When we transferred her [to University Mound] she did not eat for seven days,” Stratton explained, noting that this would arise as a concern yet again with the pending move.

In May, residents were issued eviction notices indicating that they would have to move by July 10. That date has since been extended to July 31.

Campos said the city would explore every possible route to prevent University Mound from closing down and evicting the seniors, including the possibility of rezoning the property to be maintained as a retirement home since the benefactors behind the original endowment established that it should function as such. After public comment was over, Campos called Sedlander back to the podium.

“You heard the testimony,” he told the University Mound board treasurer. “You know the city is going to do everything we can to block you” from moving forward with the July 31 eviction. “I am going to give you the option to do the right thing here,” he went on. “Are you prepared to call that deadline null and void?”

Sedlander responded that he was not prepared to rescind the evictions.

The item was continued and will likely come up for discussion again before July 31. “I will fight to do everything I possibly can till hell freezes over to make sure we stop the closure of this facility,” Campos said. “If the city has to fight to make it happen, then the city will fight to make it happen.”

San Jose cracks down on pot clubs after eschewing SF’s regulatory approach

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San Jose’s current (and harsh) crackdown on medical marijuana dispensaries contrasts with San Francisco’s decade-old (and still working well) regulations.

Over the last five years, cannabis club after cannabis club sprouted throughout San Jose while the city’s local government debated, wavered, and faltered over the best way to regulate their pot clubs. But last month, San Jose City Council members, citing an abundance of pot clubs as the cause of a surge of marijuana use in schools, got tough. They voted to enact regulations that would make it too costly for more than 70 of their pot clubs in the city to operate. Only about 10 would survive.

Meanwhile, San Francisco pot clubs rest easy, undisturbed, and untouched — at least by the San Francisco officials who pioneered regulations in the city early on. In fact, the city’s Planning Department has recently recommended expanding the so-called Green Zone where dispensaries are allowed to operate by allowing dispensaries closer to schools.

As it stands, getting a permit to open a dispensary in San Francisco is no easy task. San Francisco regulations mean dispensaries are limited to less than 10 percent of all of San Francisco.

“Because zoning is so limited, the biggest struggle is finding a location,” Shona Gochenaur, director of Axis of Love SF Community Center, told the Guardian. “I’ve known collectives that have searched for over two years for a space correctly zoned. If you get through all those mindfields and to your Planning Commission hearing, it’s smoother. Very few permits have been denied if they survive to that point.”

But San Jose’s proposed regulations take it a step farther: they would limit pot shops to industrial areas that make up roughly 1 percent of San Jose. Plus, under San Jose’s proposal, San Jose’s pot shop owners will have to grow their own cannabis and produce any topicals and edibles in house. For that, they’ll need kitchens, labs, health inspections, and a host of costly equipment. Also unlike San Francisco, no concentrates will be allowed, causing many marijuana patients to suffer from lack of access to the medicine they need.

After San Jose approved the relegations, Santa Clara County Board of Supervisors voted unanimously to enact a temporary moratorium on the establishment of medical marijuana dispensaries in unincorporated Santa Clara County. David Hodges,  a member of the Silicon Cannabis Coalition and owner of the All American Cannabis club, says he has until July 18 to put forth a referendum that would undo San Jose’s vote.

“I want regulations that work,” he said. “We want to remove the language that makes it impossible for dispensaries to operate and to keep everything else.”

The problem, he said, is that San Jose hadn’t enacted regulations soon enough. San Francisco was way ahead of them.

Gochenaur worked on some of San Francisco’s early regulations, recognizing that the feds would step in if cannabis activists didn’t act first.

“[The] San Francisco movement came with the AIDS crisis with city electeds that were both empathetic and personally affected by watching loved one’s suffering, our ZIP code being hit the hardest,” said Gochenaur .“We had the risk takers and the trail blazers willing to open their doors.”

Risk taking for San Francisco included regulating dispensaries in ways the state has since failed to do. Since San Francisco began regulating dispensaries in 2004, anyone wanting to open up a dispensary in San Francisco has had to jump through a series of tough bureaucratic hoops while also garnering neighborhood support.

San Jose, instead, opted for the laissez faire approach, allowing their dispensaries to grow, and then regretting it later.

When San Jose attempted to enact similar regulations back in 2011, Hodges used a referendum to stop the council’s plans. But, once he succeeded in defeating San Jose’s proposal, no new regulations were proposed.

“The cannabis movement in San Jose is back at square one,” Hodges wrote on his website after his referendum succeeded.

John Lee, director of the Silicon Valley Cannabis Coalition, said his organization’s biggest mistake was repealing, rather than revising, San Jose’s proposal 3 years ago. “We just knew that we couldn’t do with what they were proposing,” he said. “We just wanted to stop their relegations. But we had no idea how to regulate this back then. Now we want to.”

Having narrow relegations to begin with leaves San Francisco with room for revision later. For instance, Sup. John Avalos is working with the Planning Commission to help expand the Green Zone by bringing dispensaries 600 feet away from schools rather than 1,000 feet now. On the opposite end of the spectrum, Santa Clara Deputy County Executive Sylvia Gallegos has claimed before that San Jose’s dispensaries, totalling over 90 at the time,  caused a 106 percent increase in drug abuse-related suspensions of students in East San Jose schools in 2011-2012.

“I was smoking pot in high school before I even knew what a cannabis club was,” Hodges said. “Keeping dispensaries away from schools won’t stop that.”

If Hodges referendum fails, he says he’ll leave the cannabis industry for good.

“Right now, this could happen anywhere. There’s no safe place,” he said. “Save for Oakland – kind of. And San Francisco. But they have the territory well-covered in those areas. There’s no need for me there.”

San Francisco dispensaries may have local support, but without statewide regulations, they’re not immune to federal crackdowns, either, as the closures of Vapor Room and HopeNet made clear back in 2012. For years, Assemblymember Tom Ammiano has been trying to create statewide regulatory framework for California to help limit the crackdowns. In May, his most recent bill to address statewide regulation failed to pass the Assembly Floor. Since then, Ammiano has backed a bill from Senator Lou Correa (D-Santa Ana) that would force dispensaries to obtain local approval prior to obtaining state approval.

David Goldman, a former member of the San Francisco Medical Marijuana Task Force, told us, “It’s basically the only sensible approach towards state framework. The US Attorney is less likely to go after states with a strong structure. The tighter the regulations, the less the feds will go after dispensaries.”

For now, cannabis owners in San Jose must focus on their own, local battle to save themselves. As for the San Francisco cannabis owners who’ve passed their bureaucratic tests and received their golden permits, business resumes as usual.

San Francisco to provide right to counsel for tenants facing eviction

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OPINION San Francisco is the second most unequal city in the nation. Working and middle-income people and families are being forced to flee the city they love. Between 2010 and 2013, Ellis Act evictions alone increased by 170 percent.

In 2013, a total of 3,662 San Franciscans were served with eviction notices. Over 1,000 of these tenants went to court without lawyers. According to court statistics, 90 percent of landlords hire attorneys, while only 10 percent of tenants have a lawyer. This inequity has made it more difficult for tenants to adequately assert their rights.

To level the playing field, the San Francisco Board of Supervisors Budget and Finance Committee just designated $1 million to fund 10 nonprofit housing attorneys to perform full scope legal services for any tenant facing eviction in San Francisco. We teamed up with tenant rights organizers and attorneys to fight for this budget allocation in order to address San Francisco’s affordability crisis. This funding will ensure that all San Franciscans facing eviction will receive legal assistance if they need it.

Crucial to ensuring economic diversity in this city is protecting our rent-controlled housing stock. Every time a tenant is evicted from his or her apartment, we lose another unit of price-controlled housing that is safe from the current astronomical market rental and sale prices. The board has passed local legislation that helps tenants remain in the city after an eviction, including Sup. Campos’ legislation increasing relocation assistance amounts after an Ellis Act eviction.

However, only the state Legislature has the power to change the law in a manner that would make a large impact on the frequency of evictions. Sadly, last week, Sen. Mark Leno’s bill that would have curbed Ellis Act evictions died in the Assembly Housing Committee. Leno said he will not further pursue the bill this year. Therefore, we must continue to act locally to deal with our housing crisis.

Legal representation for tenants is a crucial part of the fight against displacement. Several academic studies have shown that tenants are five to 10 times more likely to stay in their homes after receiving an eviction notice if they are represented by an attorney throughout the eviction process. Furthermore, having an attorney protects the tenants against abusive practices by landlords.

Tenant advocates report that illegal harassment by landlords is on the rise in an effort to force out tenants without having to resort to the formal eviction process. It is common practice for landlords to attempt to “buy out” tenants by offering a monetary sum to vacate a unit outside of the legal process. Vulnerable tenants, including immigrants and tenants who live in Section 8 housing, are often forced out of their units because they do not understand or assert their rights. Even if the action results in the tenants leaving, an attorney can help tenants avoid having an eviction on their record, which makes it much more difficult for the tenants to rent again.

We are fortunate to have 14 excellent nonprofit organizations in San Francisco that provide no- or low-cost legal services to tenants. However, these organizations have been woefully underfunded and do not have sufficient staff to address this housing crisis. The budget allocation of $1 million to fund 10 additional tenant attorneys will have a profound impact on San Francisco’s housing crisis. It will also make San Francisco one of the first cities in the country to provide a right to legal assistance to tenants facing eviction. Just as the Constitution allows an attorney for a person accused of a crime, a person threatened with the loss of his or her home should have legal assistance. San Francisco can and should lead the way when it comes to providing legal assistance to those tenants who need it.

Public Defender Jeff Adachi and Supervisor David Campos are elected officials in San Francisco.

Taxing speculators

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steve@sfbg.com

Political tensions over evictions, displacement, real estate speculation, and rapidly rising housing costs in San Francisco are likely to heat up through the summer and autumn as a trio of November ballot measures are debated and combated by what’s expected to be a flood of campaign cash from developers and other real estate interests.

Topping the list is a tax measure to discourage the flipping of properties by real estate speculators. Known generally as the anti-speculation tax — something then-Sup. Harvey Milk was working on at the time of his assassination in 1978 — it was the leading goal to come out of a citywide series of tenant conventions at the beginning of this year (see “Staying power,” 2/11/14).

“To be in a position to pass the last thing Harvey Milk worked on is a profound opportunity,” AIDS Housing Alliance head Brian Basinger told us, arguing the measure is more important now then ever.

The measure has been placed on the ballot by Sups. John Avalos, David Campos, Jane Kim, and Eric Mar and is scheduled for a public hearing before the Board of Supervisors Rules Committee on July 10 at 2pm.

“It’s an absolutely key issue for San Francisco right now. Passing this measure will create a seismic shift in what we’re seeing with evictions and displacement in the city,” Sara Shortt, director of the Housing Rights Committee, told the Guardian.

The measure creates a supplemental surcharge on top of the city’s existing real estate transfer tax, a progressive rate ranging from a 24 percent tax on the sale of a property within one year of its purchase to 14 percent if sold between four and five years later.

In addition to levying the tax, the measure would also give the Board of Supervisors the power to waive that tax “subject to certain affordability-based restrictions on the occupancy of the real property,” giving the city leverage to expand and preserve deed-restricted affordable housing.

Meanwhile, there’s been a flurry of backroom negotiations surrounding the City Housing Balance Requirement measure sponsored by Sup. Jane Kim, which would require market rate housing projects to get a conditional use permit and be subjected to greater scrutiny when affordable housing falls below 30 percent of total housing construction (with a number exemptions, including projects with fewer than 24 units).

That measure is scheduled for a hearing by the Rules Committee on July 24 and, as an amendment to the City Charter, it needs six votes by the Board of Supervisors to make the ballot (the anti-speculation tax is an initiative that requires only the four supervisorial signatures that it now has).

Mayor Ed Lee and his allies in the development community responded to Kim’s measure by quickly cobbling together a rival initiative, Build Housing Now, which restates existing housing goals Lee announced during his State of the City speech in January and includes a poison pill that would invalidate Kim’s housing balance measure.

Together, the measures will draw key battle lines in what has become the defining political question in San Francisco these days: Who gets to live here?

 

COMBATING SPECULATORS

In February, Mayor Lee and his allies in the tech world, most notably venture capitalist Ron Conway, finally joined housing and other progressive activists in decrying the role that real estate speculators have played in the city’s current eviction and displacement crisis.

“We have some of the best tenant protections in the country, but unchecked real estate speculation threatens too many of our residents,” Lee said in a Feb. 24 press release announcing his support for Sen. Mark Leno’s Ellis Act reform measure SB 1439. “These speculators are turning a quick profit at the expense of long time tenants and do nothing to add needed housing in our City.”

The legislation, which would have prevented property owners from evicting tenants using the Ellis Act for at least five years, failed in the Legislature last month. So will Lee honor his own rhetoric and support the anti-speculation tax? His Communications Director Christine Falvey said Lee hasn’t yet taken a position on the measure, but “the mayor remains very concerned about real estate speculators.”

Peter Cohen of the Council of Community Housing Organization said Lee and his allies should support the measure: “It seems so clearly aligned with the same intent and some of the same mechanics as Ellis Act reform, which had the whole city family behind it.”

“I think it would be very consistent with their position on Ellis Act reform to support the anti-speculation tax,” Shortt told us. “If the mayor and tech companies went to bat for the anti-speculation tax, and not against it, that would show they have real concern about displacement and aren’t just giving it lip service.”

Conway’s pro-tech group sf.citi didn’t returned Guardian calls on the issue, nor did San Francisco Planning and Urban Research Association, but their allies in the real estate industry strongly oppose it.

“As Realtors, our goals are to increase housing availability and improve housing affordability,” San Francisco Association of Realtors CEO Walk Baczkowski told the Guardian. “We don’t believe the proposal from Sup. Mar, which is essentially a tax on housing, will accomplish either of those goals.”

But supporters of the measure say real estate speculation only serves to drive up housing costs.

“We have been successful at bringing people around on the issue of real estate speculation,” Basinger told us. “But of course, there will be financed opposition. People will invest their money to protect their interests.”

“We know it’s going to be a fight and we’ll have to put in a lot of resources,” Shortt said, adding that it’s a fight that tenant activist want to have. “Part of what fuels all of this [displacement] is the rampant real estate speculation. We can’t put profits above people.”

 

MAYOR’S MEASURE

Falvey denies that Lee’s proposal is designed simply to negate Kim’s measure: “Build Housing Now specifically asks the voters to adopt as official city policy the Mayor’s Housing Plan to create 30,000 new homes by 2020 — the majority within reach of low, moderate, and middle income residents. This is not a reaction, but a proactive measure that lets voters weigh in on one of the mayor’s most important policy priorities.”

Yet the most concrete thing it would do is sabotage the housing balance measure, an intention it states in its opening words: “Ordinance amending the Planning Code to prohibit additional land use requirements such as conditional use authorizations, variances or other requirements on housing projects…based on a cumulative housing balance ratio or other similar criteria related to achieving a certain ration of affordability.”

Beyond that, it would have voters validate Lee’s housing goal and “urge the Mayor to develop by December 31, 2014 a Housing Action Plan to realize this goal.” The measure is filled with that sort of vague and unenforceable language, most of it designed to coax voters into thinking it does more than it would actually do. For example, it expands Lee’s stated goal of 30 percent of that new housing being affordable by setting a goal of “over 50 percent within reach of low and middle income households.”

But unlike most city housing policies that use the affordable housing threshold of those earning 120 percent of area median income (AMI) and below, Lee’s measure eschews that definition, allowing him and his developer allies to later define “middle income households” however they choose. Falvey told us “he means the households in the 50-150 percent of AMI range.”

The measure would also study the central premise of Mayor Lee’s housing policy, the idea that building more market rate housing would bring down the overall price of housing for everyone, a trickle-down economic argument refuted by many affordable housing advocates who say the San Francisco housing market just doesn’t work that way because of insatiable and inelastic demand.

“Within 60 days of the effective date of this measure, the Planning Department is directed and authorized to undertake an economic nexus analysis to analyze the impact of luxury development on the demand for middle income housing in the City, and explore fees or other revenue sources that could help mitigate this impact,” the measure states.

Shortt thinks the mayor’s measure is deceptive: “It’s clever because for those not in the know, it looks like a different way to solve the problem.” But she said the housing balance measure works well with the anti-speculation tax because “one way to keep that balance is to make sure we don’t lose existing rental stock.”

And advocates say the anti-speculation tax is the best tool out there for preserving the rental housing relied on by nearly two-thirds of city residents.

“It’s the best measure we have going now,” Basinger said of the anti-displacement tax. “Mayor Ed Lee and his tech supporters were unable to rally enough support at the state level to reform the Ellis Act, so this is it, folks.”

Recycle-pocalypse

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Joe@sfbg.com

Red explosions and yellow starbursts lit the sky, accompanied by the requisite oohs and aahs.

San Franciscans sat by the beach at Aquatic Park celebrating our nation’s independence, eyes fixed upwards. But all around them, a team of independent scavengers, mostly ignored, methodically combed the wharf, plucking cans and bottles from the ground and overflowing trash bins.

Often derided as thieves or parasites, these workers are cogs in a grand machine instituted by California’s Bottle Bill in 1986, forming a recycling redemption economy meant to spur environmentalism with market principles.

The concept is simple. Taxpayers pay an extra five cents when they buy a can or bottle, and may redeem that nickel by trading the used can or bottle in at a recycling center. Thus, more recycling is spurred.

But now a wave of recycling center evictions is causing San Francisco’s grassroots recycling economy to crumble, and newly released numbers reveal just how much stands to be lost by the trend.

San Franciscan recyclers may miss out on millions of dollars in redemption, local mom-and-pop stores could wind up on the hook for millions of dollars in state fees, and neighborhoods stand to be besieged by recyclers flocking to the few remaining recycling centers.

Recycling activists and local businesses are pushing for change, but NIMBY interests are pushing for more of the same.

 

SOLUTION IS THE PROBLEM

San Francisco Community Recyclers is on the parking lot of Safeway’s Church and Market location, and after months of legal entanglement, the recycling center’s eviction draws near. Still, SFCR is making a show of resistance.

The San Francisco Sheriff’s Department is set to evict the recycling center within a week or so, as the rebel recyclers have so far refused to vacate voluntarily.

Sup. Scott Wiener says he’ll be glad to see them gone.

“This recycling center caused enormous problems in our neighborhood,” he told the Guardian. This particular Safeway lies within the boundaries of his district, and Wiener says his constituents complain the recycling centers draw too many unruly patrons, who are often homeless.

“There is problem behavior around the center in terms of camping and harassing behavior, defecation, urination in a much more concentrated way,” he said.

This animation shows the areas around San Francisco where recycling centers remain, which are often overburdened with customers as other centers close. The red zones indicate areas where supermarkets are mandated by state law to host recycling centers, but have chosen to pay fees instead.

But others say the not-in-my-backyard evictions only serve to create a ripple effect. The catalyst is a story we’ve reported on before: As well-heeled Golden Gate Park neighbors complained of homeless recycling patrons and waged a successful campaign to shutter the Haight Ashbury Recycling Center two years ago, the clientele adjusted by flocking to the Church and Market recycling center. New numbers illustrate this outcome.

Susan Collins is the president of the Container Recycling Institute, a nonprofit that conducts analysis on recycling data. On average nationwide, Collins said, one recycling center serves about 2,000 people.

But since 2012 the number of recycling centers in San Francisco has been reduced from 21 to 7, causing Church and Market’s service population to boom closer to 40,000, a difference that has more to do with the closures than the density of the area. Data from CalRecycle shows almost half of the city’s populace lacks a recycling center within close proximity, forcing patrons to overwhelm the few remaining centers.

“This makes it a chicken and egg process,” Collins told us. “For people to have the perception that the site is attracting so many people, they have to realize it’s because there are so few sites to begin with.”

Late last month, Assemblymember Tom Ammiano wrote to Safeway Chief Executive Officer Robert L. Edwards, urging the grocery chain to reverse its decision to evict San Francisco Community Recyclers from the Church and Market Safeway.

“Safeway has such a long history of supporting sustainability efforts,” Ammiano wrote, “and I truly believe that it can do so again.” Safeway, however, has other concerns.

“As curbside recycling has increased in San Francisco and around the state,” Safeway Director of Public Affairs Keith Turner wrote to Ammiano, “Safeway’s focus on recycling has evolved as well.”

Safeway is now also flouting local and state laws to throw recyclers off its back. CalRecycle, the state’s recycling agency, performed an inspection in April of the Diamond Heights Safeway. It found that the grocer failed to accept recyclables and offer state guaranteed redemption, despite signing an affidavit with CalRecycle pledging to do just that. CalRecycle cited that location and two other San Francisco Safeways for noncompliance with the bottle bill.

And that’s just the violations CalRecycle has documented so far. Ed Dunn, owner and operator of San Francisco Community Recyclers, has initiated his own investigation into Safeway statewide, filing complaints with CalRecycle alleging that as many as 75 Safeway stores aren’t following the mandates of their affidavits and offering redemption for recyclables.

On the other side of the fence, Safeway and other recycling-center critics (such as Chronicle columnist C.W. Nevius) are essentially saying, who cares? Don’t we all just use blue bins nowadays?

The short answer: Nope.

 

MAKING GREEN, GOING GREEN

“Why do we need recycling centers if we have curbside recycling?” Sup. Eric Mar asked the deputy director of recycling at CalRecycle, point blank.

Jose Ortiz responded in less than a beat. “While some communities think curbside operations ensure the state’s goals of collecting [recyclables], the reality is that 90 percent of recycling volume is collected through recycling centers, not curbside programs,” he said from the podium.

That number came as a shock to many at the Board of Supervisors Neighborhood Services and Safety Committee June 19, including Sups. Mar, David Campos, and Norman Yee. Only 8 percent of recycling statewide comes through blue bins, CalRecyle confirmed to the Guardian.

Nor is that limited to California: Data from the Container Recycling Institute shows that the 10 states with recycling redemption laws produce such a high rate of return that they account for 46 percent of the nation’s recycling. And since California Redemption Value recycling is pre-sorted, experts note, the bottles are often recycled whole (as opposed to broken) which can be used for higher-grade recycling purposes.

So for the city with a mandated goal of zero waste by 2020, the case for keeping recycling centers open is an environmental one. It’s also fiscal.

San Franciscans make $18 million a year selling back recyclables, Ortiz said, most of which went directly into the pockets of recyclers. Those scavengers at the Fourth of July festivities may have only collected five cents per can, but that’s enough to buoy the income of many poor San Franciscans.

At the recycling hearing, David Mangan approached the podium to speak. His red hat was clean and his grey sweatshirt was ironed, but his face was worn with worry-lines and creases.

“I can’t walk more than about eight blocks at a time, and I’m unemployable because of my disabilities,” he told the committee. Recycling centers are a lifeline, he added. “I need this job, I’m on a limited income. I need the help they offer. I need them to stay open, please.”

Critics say some poor and homeless depend on a black market of recycling truck drivers who trade drugs for cans and bottles, then turn to recycling centers to make a profit. But those at the hearing said the extinction of recycling centers actually helps the mobile, black market recycling fleets bloom, as motorists have an easier time shuttling recyclables across the city.

So recyclers are increasingly forced to rely on these so-called “mosquito fleets” for far-flung trips to cash in their bottles.

 

SMALL BUSINESS BUST

Meanwhile, recycling center evictions are becoming a source of anxiety within the small business community.

State law establishes a half-mile radius called a “convenience zone” around any supermarket that annually makes more than $2 million. The supermarket is mandated to provide recycling on-site, accept recyclables in-store, or opt to pay a $100 a day fee.

With the eviction of SFCR from Church and Market, Safeway may opt to pay the fee. But that gap would leave surrounding businesses inside that convenience zone with the same options: accept recyclables in-store or pay $36,000 a year.

Miriam Zouzounis of the Arab-American Grocer Association said those options are daunting for liquor stores and mom-and-pop grocers.

“We just don’t have the space for [recycling],” she said at the hearing. If SFCR were to close, the total of small businesses shouldering the burden of state recycling fees would jump from 100 to more than 360, said Regina Dick-Endrizzi, director of the city’s Office of Small Business.

All told, San Francisco small businesses would be made to send $12.96 million in annual fees to California coffers because a few supermarkets didn’t want to handle recyclables. Mar is now calling upon all involved to step up and solve this glaring problem.

 

SOLUTIONS ON THE WAY

This week the Board of Supervisors is tentatively set to vote on a moratorium of recycling center evictions, introduced by Mar on June 24. The pause would give Mar time to form a work group with those involved: Department of the Environment, Department of Public Works, CalRecycle, local supermarkets, grocers, the Coalition on Homelessness, and others to come together to form a compromise solution.

Department of the Environment proposed a mobile recycling center, which Wiener called an equitable solution that would help distribute recycling responsibility evenly across the city. While that agency did not provide a timeline on the creation of a mobile recycling center before our deadline, it’s been in the works since 2012, when then-District 5 Sup. Christina Olague said it was the answer to the Haight Ashbury Recycling Center’s closure.

It’s been a long wait for a solution. And in the meantime, many more stand to lose.

Supervisors reject Pinterest proposal, protect PDR businesses from eviction

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A spirited hearing before the Board of Supervisors Land Use and Economic Development Committee yesterday [Mon/7] on the San Francisco Design Center’s application for landmark status kept social networking site Pinterest out of the building, for now.

A number of tenants facing eviction from the building appeared before the committee, with a large contingent voicing its opposition and concern over the application and a separate group favoring the proposal for its alleged revitalization of the Showplace Square district.

The proposal — which was tabled by the committee, effectively killing it unless district Sup. Malia Cohen has a change of heart — would have declared the Design Center a landmark, which would have allowed the new owner to get around its Production, Distribution, and Repair zoning and allow in more lucrative office tenants, ostensibly to fund renovations with their higher rents. But with the committee rejected the application, with Cohen in particular expressing concerns about the loss of PDR-zoned properties in her district and around the city.

Prior to the lengthy public comment period, members of Bay West Development, the management firm representing building owner RREEF Property Trust, spoke to the committee about the support that would be put in place for the evicted tenants, conceding, “We recognize the communication with the tenants has not been perfect.”

That support would include relocation funding, lease extensions, and hiring commercial realty brokers for the evictees, according to Bay West. When asked by Chair Scott Wiener how realistic it would be for evicted tenants to stay in the district, Bay West didn’t provide specifics, assuring the committee, “There is good quality space in this district and there are tenants who will find homes in adjacent properties.”

That response didn’t satisfy many worried tenants, including Jim Gallagher, who called the Design Center a “shining example of what PDR services should be.”

Though one speaker mentioned Pinterest’s unfairly negative portrayal in the issue, the overwhelming message from the tenants and Cohen was that the “virtual pinboard” company wasn’t necessarily at fault. Rather, the displacement of longtime residents and the loss of PDR space was the main concern for many.

Former Mayor Art Agnos also made an appearance at the hearing, calling the ordinance a “commercial version of the Ellis Act,” the state law that allows residential building owners to evict tenants. Agnos said the proposed ordinance was “replacing people working in blue and white collar jobs” and urged the committee to “close the loophole, kill it, and come back to the issue.”

Some tenants voiced support for the measure, reasoning the addition of Pinterest—and the elimination of what one supporter called the “exclusivity of high-end design”—would revitalize the district and be the “best of both worlds,” with new and old economies coming together.

But Nancy Morgan, a tenant who was previously evicted elsewhere, opined that displacing the tenants would mean that the same customers wouldn’t continue to come back. She also noted that some would be displaced under the nearby freeway, which could be dangerous in addition to driving away customers, although a Dogpatch resident scoffed at this claim.

Cohen gave her own thoughts, saying she ultimately agreed that the Design Center deserves landmark status because it was “impeccably maintained through the downturn,” but she felt uncomfortable going forward with the plans to displace the longtime tenants. She believed the decision wasn’t necessarily about the designation of the building, and that displacing long-term residents wasn’t in the spirit of the code or the landmark legislation.

“This decision today sets an important precedent,” Cohen said, calling it “an added layer of certainty in a world of uncertainty.”

Hearing called for on sudden closure of elder care facility

It’s been several weeks since we reported on the pending closure of San Francisco’s University Mound Ladies Home, a nonprofit elder care facility that has been in operation for 130 years, serving seniors of modest means.

In May, residents – mostly in their 80s or 90s – received eviction notices informing them that they would need to leave by July 10, an announcement that blindsided the elders and their families and caused great concern throughout the broader community. The timeline has since been extended to July 31.

The facility’s administrators, who hired a crisis consultant shortly before announcing the closure, have indicated in meetings with family members and residents that the move was triggered by financial woes.

Sup. David Campos has been working behind the scenes to intervene on residents’ behalf since the announcement, but he’s now called for a public hearing that should finally bring some answers to light. Scheduled for Thu/10, the hearing will take place at the Board of Supervisors’ Neighborhood Services and Safety Committee meeting at 10am.

On July 1, University Mound announced it had reached an agreement with Alta Vista School to sell its facility.

Campos hopes to address the University Mound board regarding plans for residents’ continued care, and on how it envisions helping residents transition out of the facility.

“Closure of this facility places the lives of these residents in jeopardy,” Campos said. “I am gravely concerned with the access to care for these individuals. The closure of the University Mound Ladies Home is endemic of the economic crisis and widening affordability gap that is eroding the values of San Francisco.”  

Anna Stratton, whose mother resides at University Mound and will turn 87 on July 10, is one of many concerned family members affected by the sudden closure.

“I’m concerned that my mother may be one of the residents that does not survive the change from one residence to another,” Stratton said.

She added that when her mother began living in the assisted-care home, they were never given a reason to doubt that University Mound would stay in operation. Stratton’s mother, who has lived in San Francisco since 1957 and volunteered there for 35 years, wanted to live the rest of her life in the city – but won’t be able to do so due to the home’s sudden closure.

“We were not informed of anything,” Stratton said. “It’s very upsetting, not only for my mother, but for all the elders. We have been kept in the dark.”

Protect light industrial businesses from Big Tech sprawl

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[Editor’s Note: With the San Francisco Board of Supervisors Land Use Committee scheduled on Monday, July 7, to act on a proposal to allow the new owner of the San Francisco Design Center to evict existing tenants to accommodate tech company Pinterest, Jim Gallagher of Garden Court Antiques, one of those tenants, wrote the following guest editorial for the Guardian.]

The San Francisco Design Center has been a doing business at 2 Henry Adams street for the last 40 years.  During that time it has created thousands of good paying jobs in the city.  We are currently at risk of losing the majority of the building to tech office space.  The building is zoned for PDR-Design but a loophole in the law is being exploited by the new owners, a Chicago based investment firm.  This would lead to the loss of SF based small businesses and the jobs that they create.

 We have worked with countless interior design firms, architects and contractors as a resource for their projects.  In addition, we are an intrinsic part of a network of the PDR(Production, Distribution and Repair) businesses here in San Francisco.  These are the upholsterers, fabrication workrooms, cabinet makers, finishers, metal workers, installers and movers that make up our industry.  This industry offers above average paying jobs to a variety of people from different cultural and ethnic backgrounds that don’t necessarily have college degrees.  These jobs and those that work at them are being squeezed out of this city and when they are gone, we lose yet another piece of the soul of San Francisco.

There is no question that PDR space is being lost in San Francisco.  A recent study of PDR space in SF, showed that we currently have the lowest available PDR space of any major American city at less than 7 percent.  Mayor Lee along with Supervisors Cohen and Campos introduced legislation at the end of last year to expand the amount of PDR space and shore up the manufacturing and light industrial sector in the city.  Why then, would the Board of Supervisors even consider giving up a quarter of a million square feet of PDR space that is currently 90% occupied with viable PDR businesses?

The sad reality is that it is a simple matter of corporate greed.  The new owners of the Showplace Building at 2 Henry Adams bought the building as a PDR building, knowing the use limitations of designated PDR building and immediately began to find ways around the laws.  The loophole that they discovered was the Landmark designation.

The Landmark designation was an exception put into the PDR protections in order to help with the cost maintaining some of the historic architecture that is often found in these PDR buildings.  The idea being that PDR rents do not always bring in enough income to retrofit and maintain these old buildings.  The Landmark status would allow the owners of PDR buildings to rent out part of the building as higher paying office space in order to offset the retrofit and maintenance cost.  This sounds like a good idea until you bring in the greed factor.  This Landmark exception has become the favorite loophole for corporate investors and greedy landlords to move out PDR businesses all over the city.

In the case of the Showplace Building, it is currently 90 percent occupied by PDR-Design businesses.  According to the building owers, there are approximately 262,000 square feet of rentable space in the building.  The Common Area Maintenance or CAM fees that tenants of the building pay beyond their monthly rent is $1.25 per square foot per month.  This would mean that the owners of the Showplace building are currently bringing in nearly $3,500,000 just in Common Area Maintenance fees annually.  In what universe is this not enough money to maintain a building that was fully retrofitted 15 years ago and is only five stories high?

The idea that this building needs to granted Landmark status from the city in order to create enough revenue to maintain the building just does not pass the smell test!  This is a case of simple greed on the part of a Chicago based investment company.  They believe that they can skirt the laws that are in place to protect San Francisco based small businesses and San Francisco workers.  They do not have the best interest of our city or our workers in mind.  They simply want to exploit this Landmark loophole in the PDR protections to line their own pockets.

I would hope that the members of the Board of Supervisors and Mayor Ed Lee do not let this happen.  Please consider the consequences to our city.  Do not choose to allow a Chicago based investment company to skirt our laws and exploit this loophole.  Do not allow this greed to put several San Francisco small businesses out of business. 

This building is 90 percent full of viable PDR businesses.  We pay nearly $3.5 million dollars a year to maintain this building.  This is the perfect example of what a well-run PDR building should look like.  This building is this beautiful and well-maintained because of us.  Please don’t allow the exploitation of the Landmark status to kick us out.  We built our businesses here because we love this place and we want to continue to work and thrive here.

Google Bus sewers

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STREET FIGHT With most city officials supporting the accommodation of private transit in some form, the San Francisco Municipal Transportation Agency is now vetting where tech workers should board and egress the private corporate commuter buses that ply the 101 and I-280 between San Francisco and Silicon Valley suburbs. A list of proposed bus stops was circulated in June, and the first round of bus stop proposals is set for approval in August.

Short of a proper environmental study, which is the subject of ongoing litigation, the list deserves more scrutiny and deliberation because certain areas of the city — such as Hayes Street in the Western Addition and 18th Street in the Mission — might be effectively made into Google Bus sewers.

I hope SFMTA is open to reconsidering some of these proposed bus stops.

Rather than jamming oversized interstate highway-scale coaches on human-scaled, walkable, and bikeable streets with important Muni routes, SFMTA ought to steer them where they are more appropriate: on the wider, car-oriented streets that bifurcate the city.

For example, the current proposal for private commuter buses in the Western Addition is to have these mammoth and incongruent buses running on Hayes Street using Muni stops at Clayton, Steiner, Laguna, and Buchanan.

This is bad news for passengers on the 21-Hayes, a key neighborhood-serving electric trolley bus that has gotten short shrift in the city planning process. With 12,500 boardings daily, the 21-Hayes is often at capacity every morning before it crosses Van Ness.

Just last week, I was on a packed 21 that was blocked (illegally) by a huge corporate bus on Hayes. With an already dense and slow traffic situation, this added at least 30 seconds to the trip before the 21 could access its stop. Repeat that multiple times in the morning and afternoon and you can see that this will be a mess. It’s not worth the dollar the SFMTA collects for such stops, that’s for sure.

Concentrating the private buses on the 21 line (or the 33 in the Mission) will block Muni where Muni is already slow, unreliable, and overcrowded. It will also diminish walkability and bicycle safety on Hayes and other streets identified in the current list (including the commercial corridors on Divisadero and 18th Street in the Mission.)

Rather than streets such as Hayes, SFTMA should redirect the private buses to the multilane, one-way couplet on Fell and Oak streets, only one block south. Along the corridor, SFMTA could collaborate with the private systems to establish new bus stops (red paint) at Clayton, Masonic, Divisadaro, Fillmore, and near Octavia. This scheme would limit clunky turn movements onto neighborhood streets by oversized buses and contribute to traffic calming.

In the mornings, the buses would pick up passengers on Oak Street, starting along the Panhandle, then travel towards Octavia Boulevard before swinging onto the freeway southbound. In the evenings the buses would exit the freeway at Octavia, and stop at drop-off hubs on Fell, between Octavia and Laguna, and then stop incrementally toward Golden Gate Park.

Additionally, the city needs to consider a space for the underpaid, nonunionized drivers to pull over and rest before and after long segments of freeway driving. We want these buses to be safe.

Similar arrangements should be made to spare 18th Street in the Mission from reverting to a Google bus sewer, with emphasis on private corporate bus stops on South Van Ness or Guerrero-San Jose. Surely there are other examples in other parts of the city.

The urgent affordable housing crisis aside, this could be a win-win from a transportation perspective. Tech workers would no longer get blamed for blocking Muni and they can know that while waiting for their bus, they are contributing to calming erstwhile hazardous streets.

There’s a lot of opportunity to combine these new bus stops with traffic calming at dangerous intersections such as Fell and Masonic or Oak and Octavia, all without mucking up Muni or diminishing the walkable human scale of nearby neighborhood commercial streets. And hey, since this is all a “pilot program,” no pesky and expensive EIR is needed — right?

Thinking long-term, this scheme could be a template to jumpstart making this ridiculous private transit system into a regional public bus system modeled on AC transit or Golden Gate Transit, a service open to all. Our car-centric streets are ripe for express bus service and this would help relieve parallel lines like the N-Judah, while enabling the city to attain its aspiration of 30 percent mode share on transit.

And for Mayor Ed Lee and pro-tech-bus members of the Board of Supervisors, it helps with their “vision zero” rhetoric of increasing pedestrian safety because placing the buses on car-centric one-way couplets can help calm traffic.

With a little cajoling by the mayor, he could get his tech sponsors to underwrite streetscape and beautification at the bus stops along these kinds of streets.

After all, Mayor Lee needs to find the money, because last month he betrayed pedestrian and bicycle safety and Muni when he abandoned support for increasing the Vehicle License Fee locally this fall, all the while misleading the public about the important role of Sunday metering. Perhaps it’s time for a tax or license fee on the ad hoc private transit system?

SLOWING DOWN

Speaking of vision zero, Sup. Eric Mar deserves hearty thanks for proposing to reduce speed limits citywide. This is one of the most effective ideas to come from the progressive wing of the Board of Supervisors in a long time and should be implemented yesterday. Higher speeds maim and kill, and the faster cars go the more voracious the appetite for both fuel and urban space.

With reduced speed, the motorist would still be able to drive, just more slowly, perhaps with less convenience than now. But over time the options of cycling, of walkable shopping, and improved public transit would synchronize more seamlessly as car space is ceded to separated cycletracks and transit lanes.

My suggestion is to make the city navigable by car at no greater than 15 miles per hour, a speed deemed not only to be comfortable on calmed pedestrian streets, but also to minimize injury and fatalities when there are collisions. Ultimately, our efforts to curb global warming, reduce injury and death from automobility, and make the city more livable obliges us to slow down, so looking at speeds is a step forward.

Street Fight is a monthly column by Jason Henderson, a geography professor at San Francisco State University and the author of Street Fight: The Politics of Mobility in San Francisco.

Painting with more colors

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joe@sfbg.com

Not many plays feature an all-Latino cast, let alone all El Salvadoran. But Paul Flores’ Placas placed brown actors and a brown experience center stage. The 2012 production explored a father and ex-gang member’s struggle, leading his son out of a hard life of drugs, violence, and perhaps death.

The play garnered favorable but mixed reviews from critics, but among Salvadorans, it was a huge hit.

“You had older generations coming to see the play right alongside their grandkids,” Flores told the Guardian. The play’s premiere venue packed its 500-seat capacity, and sold out seven out of its eight nights in San Francisco. “We tapped a community thirsty to hear its stories told.”

Placas is the kind of creative work not being funded often enough by the city’s largest arts grant organization, critics are saying. At a contentious San Francisco Board of Supervisors Budget and Finance Committee hearing on June 20, artists told supervisors that programs serving diverse communities were severely underfunded, and alleged the city’s major arts funder, Grants for the Arts, awards money disproportionately to art forms favored by white audiences.

Spurred by public outcry and city studies, Sups. Eric Mar and London Breed recommended the transfer of $400,000 in unused funding from GFTA to another city arts funder, the Cultural Equity Grants (which funded Placas), to direct arts money to people of color.

The transfer won’t be approved until it goes before the full Board of Supervisors next month. But as San Francisco studio and housing rents soar, Mar said this was vital to keeping diverse artists in the city.

“I think the crisis for arts groups now is many of them are being displaced,” he told the Guardian. “How can the city subsidize groups with low rent or free rent, and how could we support small groups [to prevent them from] being displaced?”

"Arts inequity": San Francisco Budget and Legislative Analyst Report by Joe Fitzgerald Rodriguez

Above is a PDF of the Budget Legislative Analyst’s report, as it breaks down lack of funding to diverse programs. The report has relevant sections highlighted.

The Guardian reached out to City Administrator Naomi Kelly for comment (her office ultimately directs arts grants funding). She was unavailable for an interview before we went to press, but her spokesperson Bill Barnes told us, “I don’t think we should be in a position of having governments regulate artistic content.”

But in a way, the government already does. The GFTA funding is made up of city dollars, and for decades its funding priorities have scarcely changed, favoring many of the largest mainstream organizations.

GFTA funds many arts organizations, but a recent report by the Budget and Legislative Analyst’s Office found it awarded about 70 percent of grants to organizations with mostly white artists who mostly cater to white audiences. The San Francisco Symphony, San Francisco Ballet, San Francisco Opera, City Arts, the Exploratorium, the Museum of Modern Art, and the American Conservatory Theater received over one-third of GFTA funding over the past five years, the report found.

“The Bay [Area] will soon be 70 percent people of color,” Andrew Wood, director of the SF International Arts Festival, told the Guardian. “Why invest so heavily in organizations that are such a minority of the population?”

Taken on its face, the findings show a stark divide between funding for smaller, struggling minority arts groups and large, independently funded arts groups with predominantly white patrons. The report divided the diversity of GFTA arts funding into three categories: people of color (Asians, African Americans, and Latinos), ethnic minorities (Arab/Middle Eastern/Jewish), and LGBT organizations. The funding for these categories remained steady at about 20, 2, and 5 percent of arts funding, respectively, since 1989.

The lack of funding is one thing, but critics say the pattern indicates an outright dismissal of the broader community. In a mass email entitled “The State of the Arts in San Francisco” sent to the arts community from a group calling itself Arts Town Hall Organizing Committee said the outcry against critiques of GFTA’s diversity funding was “advanced by fringe members of the arts community.”

Realizing it called Black, Asian, and Latino artists a “fringe community,” the San Francisco Arts Alliance (a signatory to the email comprised of San Francisco’s symphony, opera, and other GFTA funded organizations) quickly backpedaled. It said the email was sent on their behalf by the public relations firm Barnes Mosher Whitehurst Lauter & Partners, a group that often runs astroturf campaigns for mainstream organizations.

One reason for GFTA’s inability to fund diverse arts groups may be a lack of trying: The BLA found the GFTA “does not have a definition or criteria for granting funds to people of color organizations.”

This color blindness is a problem, Wood told us. “[The money] the city invests in the War Memorial Opera House compared to the Bayview Opera House, also city owned, is completely out of whack,” he said. The Bayview Opera House was one among six “cultural institutions” to receive a portion of a $400,000 GFTA award, according to the organization’s 2013/14 annual report. Conversely, GFTA awarded the San Francisco Opera $653,000 the same year.

“They’re two different universes,” Wood said.

Allocating more funding for the Cultural Equity Grants was an oft-mentioned method for better supporting disadvantaged artists, the report found, even though GFTA and CEG share many of the same grantees.

Some say the report’s numbers don’t add up. San Francisco Arts Commission Director of Cultural Affairs Tom DeCaigny, a longtime local artist, disagreed with how the BLA defined which groups were white, ethnic, or otherwise.

“The methodology in the report assigns people an identity, and I know some of our grantees were referred to as white when they’re not,” DeCaigny told the Guardian. “We would want to see organizations self identify.”

Those faults undermine the value of the BLA’s findings, although he said, “I’m hesitant to comment on the value of that report.”

But some in the arts community felt DeCaigny’s opinion aligns suspiciously closely to the mayor’s priorities: funding the preferred arts organizations of his wealthy donors (like the symphony). We reached out to the San Francisco Symphony for comment but its representatives told us it would be unable to respond before our deadline.

DeCaigny defended the symphony, noting its annual Lunar New Year and Day of the Dead concerts serve diverse audiences. For the economically disadvantaged, he said, the symphony offers free concerts open to the public in Dolores Park, and that the symphony’s “artists are very diverse.”

DeCaigny pointed out the San Francisco Symphony Orchestra’s youth programs (shown above) are notably very diverse.

The donors are mostly white, he said, “but that’s true in other sectors as well. It has more to do with how wealth is distributed in our society.”

But Flores, Placas’ director, explained the need for ethnically diverse art was not just about who consumes it, but what message the art is sending to the audience. Nothing revealed this more, he said, then when he took Placas on tour across the United States. While in New York City, he conducted an informal poll.

“I asked ‘when I say San Francisco, what do you think of?’ They said the 49ers, the San Francisco Giants, the Golden Gate Bridge. They didn’t think gangs, pupusa, cumbia,” he said. That’s why Placas, which told the story of gang life among San Francisco Salvadorans, had such impact in the city and even beyond its borders.

“I love telling stories about San Francisco,” Flores told us. “The symphony doesn’t do that, the opera doesn’t do that. What does that? Locally generated art.”

The Board of Supervisors Budget and Finance committee is tentatively slated to hold a hearing on allegations made in the BLA report on July 16.  

Jasper Scherer contributed to this report.

Civil Grand Jury report highlights gifts made on mayor’s behalf

A major real-estate firm contributed $1 million to the America’s Cup Organizing Committee at the behest of Mayor Ed Lee, right around the time it sought city approval to expand a downtown tech office building that was already under construction.

Kilroy Realty, the developer of a 30-story building that will house more than 400,000 square feet of office space for Salesforce.com, won approval in August of 2013 to add an additional six floors to its 350 Mission commercial office space project. That building is one of three in the Transbay area that will house Salesforce.com offices.

Kilroy sent one check for $500,000 to the America’s Cup Organizing Committee on June 24, 2013, and a second one for the same amount on Jan. 31 of this year.

While it’s impossible to say for sure whether the generous gifts had anything to do with the request for approval for a major building expansion, the “behested payment” reports documenting the transactions did draw the attention of the San Francisco Civil Grand Jury, which included them in a report titled “Ethics in the City: Promise, Practice, or Pretense?”

In another example highlighted in the report, Mayor Lee accepted travel funds for a trip to China and Korea last October. Contributors who provided more than $500 apiece for that trip included Uber and Airbnb, both tech-based companies whose businesses stand to be directly impacted by city policies.

Uber has been sparring with the San Francisco International Airport over its drivers’ unauthorized passenger drop-offs as of late, while Airbnb long skirted its responsibility to pay the city’s hotel tax and is now the subject of legislation regulating short-term housing rentals. It’s interesting that each of these companies felt compelled to donate toward the mayor’s travel fund, given the city’s attempts to regulate them.

The Civil Grand Jury report highlights the shortcomings of the San Francisco Ethics Commission, an agency tasked with ensuring that government operations aren’t tainted by conflicts of interest or official misconduct.

Citizen watchdogs of San Francisco government have sought to eliminate pay-to-play politics for years.

Back in 2000, San Francisco voters approved a ballot measure seeking to bar elected officials from accepting campaign donations or gifts from corporations or individuals who had received city contracts or “special benefits.”

Known as Proposition J, that measure sought to eliminate the undue influence of deep-pocketed, well-connected players in local government.

It was popular and won by a landslide: No ballot arguments were registered against it, and the measure won with 82.66 percent of the vote.

Nevertheless, the Civil Grand Jury report noted, Prop. J was “amended out of existence” – through an effort led by none other than the Ethics Commission.

“The Ethics Commission proposed repealing Proposition J at their April 2003 meeting,” the report notes.

That proposal was part of an effort to “recodify conflict of interest laws,” the Civil Grand Jury found. Some laws were amended. Others were tweaked so that amendments could be made in the future, without voter approval.

After winning approval from the Board of Supervisors, that package of legislative changes became Proposition E on the 2003 ballot. “In 2003, voters approved Proposition E that recodified the ethics laws; however, it also had the undisclosed effect of deleting Proposition J language,” the Civil Grand Jury noted. “Thus, the concept of regulating public officials’ relations with those who receive ‘public benefits’ from them (Proposition J’s intent) was totally eliminated from San Francisco law.”

The report also takes the Ethics Commission to task for being too lax when it comes to addressing potential conflicts of interest.

It goes so far as to recommend that the agency hand over control of its major enforcement investigations to the Fair Political Practices Commission, a state agency with a more robust team of investigators who might produce better results.

“The Ethics Commission lacks resources to handle major enforcement cases,” the Civil Grand Jury notes. “These include, for example, cases alleging misconduct, conflict of interest, violating campaign finance and lobbying laws, and violating post-employment restrictions.”

The full report can be found here.

A benefit series aims to keep the unique Meridian Gallery afloat

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In 2001, interns at Powell Street’s Meridian Gallery planned and painted a 13×48 foot mural on the wall of the SRO Hartland Hotel, a few blocks away in the Tenderloin. The mural, a colorful and sunny street scene showcasing the multiculturalism of the neighborhood, was revered by residents and and left untouched for 10 years until it was vandalized by graffiti. In response, former interns who had worked on the project came back together and, alongside the current kids in the program, repainted the piece. The artists’ lasting willingness to help Meridian in times of need reemerges in a broader sense this week, which marks the climax of the gallery’s June Benefit Series (tonight’s entry: “16 Years of Meridian Music,” a diverse program of new music). 

Meridian Gallery, whose name comes from its mission to focus on hemispheric and cross-cultural interactions, is facing eviction. As rent around Union Square has skyrocketed, from $400 per square foot in 2007 to up to $3,000 today (according to retail consultant Helen Bulwik, quoted in a KQED report), many galleries have been forced to close their doors. The stately Perine Mansion, the three-story French Second Empire brick building where Meridian makes its home, is an especially attractive and lucrative piece of property. Instead of throwing in the towel, Anne Brodzsky, the dynamic co-founder of the gallery who has overseen its operations for over 25 years, has reached out to her friends. 

The original eviction notice was handed down in April. Some close to the gallery are convinced that despite any efforts, the rent will be impossible to pay. Others, Brodzky chief among them, think that the response to the bad news suggests a potential long-term rally from Meridian. Her optimism is fueled by two forces. First, on May 13, the SF Board of Supervisors beefed up affordability programs, including supplemental displacement funds and health benefits, for struggling art non-profits in the city. “I’m amazed by how they’ve managed to come together to help arts programs,” Brodzky exclaimed. 

More effective and instantly helpful than any bureaucratic assistance, however, have been the programs put together by artists affiliated with Meridian. Around the time of the Supervisors’ decision, Brodzky asked her gallery-mates if they were willing to stage an auction. The response was staggering; over 60 artists put up works. More astonishing to Brodzky, though, was the kind of excitement many of the participants exhibited for further events. “Bob Marsh, among many others, approached me and asked if they could stage fundraisers.” 

 Tonight, Marsh is one of the main attractions at the “16 Years of Meridian Music” showcase. An avant-garde visual artist and musician, Marsh discovered Meridian shortly after his arrival in San Francisco 14 years ago. “I started visiting galleries and found that Meridian had a wonderful monthly music series,” he says.

Marsh was inspired by the political sharpness of the organization. “I thought early on, ‘They’re not purveyors of bourgeois wallpaper,’ like so many galleries can be.” For Marsh’s offering, “The Visitor,” he’ll don his Sonic Suit #9, a wearable sculpture made from empty water bottles and other modern detritus, and engage in narrative movement to a musical accompaniment.

“He’s a visitor from another dimension,” Marsh says. “He arrives here, looks around, and has different reactions to the confusing environment that is our world.” Marsh debuted the ever-changing character at the Meridian and feels that its a fitting tribute to the openness and experimentation that the gallery fosters. 

Despite his excitement about the benefit, Marsh turns somber when discussing its necessity. “They have given so much with such passion,” he says. “It’s sad to see them persecuted by blind greed … I don’t think its personal, but everyone just wants a lot of money. Everybody thinks that’s some kind of virtue.”

Neither Brodzky, Marsh, nor other performers and Meridian affiliates with whom I talked  were quick to link the gallery’s financial troubles to a larger ill in San Francisco. They seemingly eschew that brand of macrocosmic victimhood and instead zoom in on what they can do to stay open, one step at a time. Their optimism may be healthier, but it does not mask the sad fact that rising rents are making grassroots galleries a thing of the past. If the artists continue to come together with the intensity of the mural renovation, auction, and benefit series, however, Meridian may just buck the trend.  

 

16 Years of Meridian Music: Composers in Performance

With Bob Marsh, Andrea Williams, Bryan Day, Phillip Greenlief and Jon Raskin’s 1+1, David Samas, Tom Bickley, and the Cornelius Cardew Choir

Thu/26, 7-10pm, $35

Meridian Gallery

535 Powell, SF

meridiangallery.org