Development

Clean Energy Act excites supervisors

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At today’s Rules Committee, Supervisors Bevan Dufty, Tom Ammiano, and Chris Daly, all expressed enthusiasm for San Francisco’s Clean Energy Act. Daly and Ammiano even broke into chants of “victory, victory” during discussion of approving the measure for November’s ballot.

“In 2002 I supported Prop D and I look forward to supporting this measure,” said Dufty during his comments on this new public power ballot initiative. “I think PG&E has not held the public trust in San Francisco well,” he added, citing the smear campaign PG&E launched against Mark Leno during his bid for State Senate.

The measure, known as the “San Francisco Clean Energy Act,” would amend the city charter to require that, within 120 days of passing the legislation, the San Francisco Public Utilities Commission must “produce a comprehensive plan for providing clean, secure, cost effective electricity for city departments and residents and businesses.” This may include construction city-owned transmission lines, as well as procuring the resources to advance the Community Choice Aggregation plan of 51 percent renewables by 2017.

It actually goes one step farther and says if CCA falls through, the city must still get 51 percent of their energy from renewable and clean sources, 75 percent by 2030, and 100 percent by 2040. A green jobs workforce development must also be part of the plan, and if it’s determined that public ownership of the grid and resources is the way to go, any employees fired by PG&E, the private company that provides our power now, will be hired by the PUC.

Sup. Ross MIrkarimi, who introduced the measure, rattled off figures from Alameda, Santa Clara, Palo Alto, and Sacramento, all of whom have publicly-owned utilities and all of whom charge the average household rates far below PG&E.

His figures, for a 500 kilowatt hour household:

Lennar asks feds for help–Republican senator blocks bill

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Are we worried, yet? With San Francisco having climbed deeper into bed with Lennar thanks to Prop. G’s passage, the bad news coming from Wall Street and beyond can’t exactly be music to Mayor Gavin Newsom’s ears.

As Lennar reported bigger-than-expected quarterly losses today, Lennar’s Chief Executive Officer Stuart Miller expressed hope that the federal government would soon belly up and help bail out the beleagured housing industry.

Miller cited increased foreclosures, higher unemployment rates and diminished consumer confidence as reasons why the Florida-based mega developer experienced a 61 percent loss in revenues this quarter.

“With the U.S. housing inventory growing in excess of absorption and limited credit available, the prospect of further deterioration in the homebuilding industry will likely become reality absent Federal government action,” said Miller, who is apparently hedging his political bets by making the maximum campaign contribution to both presidential candidates.

“To that end, we are hopeful that the Federal government will acknowledge the need for further reform and will institute programs designed to stabilize and facilitate the recovery of the housing market.”

But a government plan to address the nationwide foreclosure crisis hit a roadblock in the Senate yesterday in the shape of a Republican from Nevada, Sen. John Ensign.

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Sen. John Ensign (Nevada) wants $7 billion for renewable energy tax credits before he’ll support foreclosure bill.

This isn’t the first time that Ensign has played the role of lone obstructionist.

In September 2007, the Senate discovered that Ensign was using the “secret hold” to obstruct a bill that requires senators to file fund-raising reports electronically, rather than bury the identity of their benefactors in paper filings.

And for a short period in March 2006, Ensign blocked the nomination of Vice Admiral Thad Allen (who replaced FEMA director Mike Brown in the aftermath of Hurricane Katrina) to become the next Commandant of the U.S. Coast Guard.

But now Ensign, who reportedly has been tasked with assembling a staff to win back the U.S. Senate for Republicans in November 2008, is blocking a foreclosure rescue plan that has broad bipartisan support until he gets a vote on his amendment to provide almost $7 billion in renewable energy tax credits.

As a result, passage of the housing bill to create a multi-billion fund to aid thousands of homeowners refinance costly mortgages into more affordable government-backed loans, will likely be delayed until after July 4.

“In an election year, very few things are actually going to make it into law,” Ensign told reporters, “So if you actually want to get something done, you need to be on that train that is basically going to be leaving the station.”

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While Lennar spent $5 million to defeat a grassroots coalition that wanted 50 percent affordable housing in the Bayview, the City applied for $25 million in grants to bail out Lennar’s Shipyard development.

Here in San Francisco, Lennar Corp. has assured elected officials that there is no relationship between LandSource, a land and development company that filed for Chapter 11 bankruptcy on Sunday, June 8, and Lennar’s Bayview Hunter’s Point project.

In a June 9 letter to San Francisco Mayor Gavin Newsom, Lennar Corporation’s Chief Investment Officer Emile Haddad wrote, “We anticipate that there may be some effort to link LandSource to other Lennar ventures, including Hunters Point Shipyard. Let me be clear: There is no relationship between the two entities. Hunters Point has its own capital structure and financial partners.”

Haddad does not however explicitly mention that LandSource, which owns properties in California, Arizona, Florida, Texas and New Jersey, does have a relationship with Lennar Mare Island, which also filed bankruptcy June 8, leaving city officials in the already bankrupt Vallejo doubly stressed.

And nowhere does Haddad guarantee San Francisco a smooth, obstacle-free redevelopment of Bayview Hunters Point, which apparently is already facing a potentially fatal $25 million funding gap, according to City officials.

“Lennar is committed to continuing to work closely with our community partners and the City and County of San Francisco to overcome any obstacles and to work toward a successful venture,” Haddad writes. “You have my personal reassurance that we will keep you fully informed of any and all significant developments that may impact the project.”

“Likewise, we will continue to utilize the development’s partnership experience and qualifications to leverage all state and federal funding sources to enhance the project and ensure its timely completion.”

As for Lennar’s CEO Stuart Miller, he told investors that “notwithstanding the bleak operating environment, Lennar made significant progress during our second quarter.”

This progress included reducing unsold completed inventory. “We now have on average less than one completed unsold home per community.”
Lennar also reduced selling, general and administrative expenses by 60 percent.

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“Given our success with asset reduction, we have shifted our primary focus to the execution of an efficient homebuilding model through the repositioning of our product to meet today’s consumer demand and by aggressively reducing our construction costs.”

Sounds like a potential Triple Uhoh.

‘we are very pleased to end our second quarter with approx $880 million in cash and no outstanding borrowings under our credit facility. We have reduced our maximum joint venture recourse debt by approximately $1 billion from its peak level in 2006, which reflects a decrease of over 50 percent.”

“We recognize that the remainder of 2008 will likely see further deterioration in overall market conditions; however, we are confident that we will remain well positioned with a strong balance sheet and properly scaled operations to navigate the current market downturn as a leaner and more efficient homebuilder.”

Meanwhile, following a posting of a video showing some community members less than positive take on Lennar, someone replied with a video about Lennar’s homebuilding operations in Texas.

Seems like some folks in the Bayview aren’t the only ones, er, frustrated with Lennar.

The commissioner’s conflicts

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› gwschulz@sfbg.com

Before the June 5 special meeting of the San Francisco Planning Commission got underway, Michael Antonini had an announcement.

Dressed in a charcoal suit and red-checked tie, with his white hair combed back over his skull, the longtime commissioner disclosed that he was a part owner of a condominium in the eastern neighborhoods, where a years-long rezoning effort is nearly complete. That means Antonini is among the people who could benefit from increased land values due to zoning upgrades.

As a result, Antonini begrudgingly declared that he would have to recuse himself from hearings involving the eastern neighborhoods until the potential conflict is dealt with.

"Hopefully this can be resolved in the next few weeks and I’ll be able to participate at later hearings," Antonini said at the meeting.

But it was a bit late to be complying with the state’s conflict-of-interest laws: Antonini had already actively taken part in meetings in which the plan was discussed. And Antonini also neglected to mention that after he and his son purchased the condo, he voted on two other projects that appear to be within steps of it.

Public records show that Antonini bought the $515,000 condo at 200 Townsend Street in 2003 with his real estate agent son, John. Commissioner Antonini and his wife own a 25 percent stake in the property through a family trust the couple created in 1997. His son holds the majority interest.

Antonini worked hard to play down his stake in the condo at the June 5 meeting. It’s not an investment property, he made clear to the commissioners. There’s no rent generated from it. He’s a mere minority holder in a family trust that controls the condo, and it was purchased as a residence for his son and his wife.

"Because I did not believe our fractional interest in John’s condo represented a conflict, I did not consider reclusing [sic] myself from projects near the condo," Antonini wrote to the Guardian.

But the laws on this are pretty clear. The state’s Political Reform Act of 1974 prohibits public officials from participating in decisions that will have a "foreseeable material financial effect on one or more of his/her economic interests." It also states that any "direct or indirect interest" worth more than $2,000 poses a potential conflict, for which a 25 percent stake in a half-million dollar condo would seem to qualify.

RECUSE ME


Other public officials in similar situations have recused themselves long before the issue became a potential political liability.

Sup. Bevan Dufty bought into a three-unit residential property on Waller Street with two co-tenants in December 2006. He immediately sought advice from the city attorney, who told him he no longer could vote on the Market-Octavia Plan, a series of land-use changes in Hayes Valley, Duboce Triangle, and elsewhere that was similar in scope to the current rezoning efforts in the eastern neighborhoods. The supervisor also couldn’t vote on a major Laguna Street redevelopment project or on legislation making it easier for seniors to convert rental units to condos.

Antonini told us that "only in the last month" did the city attorney warn some officials involved with plans for the eastern neighborhoods that if they held property in the area, there could be a conflict of interest.

"We’ve been working on [the eastern neighborhoods] for the whole six years I’ve been on the planning commission," he said at the meeting. "It’s a little troubling that this issue of conflict is raised now rather than at the very beginning."

The law does make an exception when the economic interests of the "public generally" could also be enhanced by a government decision such as those that have an impact on a large section of the city like the eastern neighborhoods. But the city attorney’s office concluded for now that the condo indeed may pose a conflict. And in the meantime, Antonini told us that the Fair Political Practices Commission in Sacramento, which helps enforce the state’s Political Reform Act, is being consulted to determine "whether our fractional interest in the condo truly represents a conflict of interest."

The eastern neighborhoods planning process isn’t the only legislation that created a potential conflict for Antonini. The commissioner voted in January 2007 to approve construction of 26 new single-room occupancy units at 25 Lusk Alley, not far from his property at 200 Townsend. The project’s sponsor, Michael Yarne, is a land-use attorney who today works for the mayor’s economic development office. The project was approved, according to meeting minutes.

The project itself relied on a contentious legal loophole in which developers claim their units are "single-room occupancy," a necessity because the area permits residential efficiency hotels where the poor and working-class used to live. Allowing such SRO hotels in areas zoned for light industrial uses enabled the city to preserve some forms of affordable housing. But builders can turn around and lease the opulently large units such as the ones at 25 Lusk, which bear little resemblance to genuine SRO rooms, to well-heeled clients.

"They are allowed where normal residential units are not allowed, because historically SROs were always extremely affordable housing," community organizer Calvin Welch said. "The whole notion of market-rate SROs is a new invention, and that’s why they’re controversial. They’re basically the new version of live-work lofts."

In November 2006, Antonini also voted to approve a liquor license for a new full-service restaurant and wine bar at 216 Townsend, even closer to his son’s condo.

TOO CLOSE FOR COMFORT


State ethics laws say that a public official has a conflict if his or her property comes within 500 feet of a project the official will be scrutinizing and voting on.

Conservatively measuring from the furthest corners of each property, Google Earth puts both the proposed restaurant and SRO within 500 feet.

Bob Stern, president of the Los Angeles–based Center for Governmental Studies and co-author of the state’s Political Reform Act, said a public official could face $5,000 in civil penalties for each conflict-of-interest violation. But it’s not common for the chronically under-resourced FPPC to go after local officials, he said.

Mayoral spokesperson Nathan Ballard wrote in an e-mail that "we take any allegations of conflicts of interest seriously" but added there is a disagreement over whether the "public generally" exception applied to the eastern neighborhoods and that the City Attorney’s Office was seeking additional input from the FPPC.

As for the two projects he voted on near the condo, Antonini apparently told the mayor’s office he had looked into whether 25 Lusk fell inside 500 feet. "Based on his understanding at the time," Ballard wrote, "they didn’t."

That’s a stretch, at best. The projects are in the same block. We walked them off and found that Antonini would have to be splitting hairs to argue that they are outside the boundary — and even in that case, it would be only by a few feet. The rusty red paint job, black trim, and stylish, outsize windows of 200 Townsend are easily viewable from the backside of 25 Lusk.

"If there is a legitimate argument that they did fall within the 500-foot radius, this should be clarified," Ballard stated. "However, given the relative insignificance of the two projects cited in your e-mail and Antonini’s long-standing reputation as an ethical and hard-working commissioner, we don’t have any reason to believe that he would have knowingly and/or willingly violated the state’s Fair Political Practices Act."

But the Lusk Street project was by no means insignificant. "They are highly regulated," Welch said of SROs. "You cannot convert them to tourist hotels without going through a very long and cumbersome process. They are valued for affordable housing so highly that the city regulates their conversion to tourist uses." So instead, the "corporate suites," as Welch calls them, masquerade as SROs. The project was approved in the end, but two commissioners — Christina Olague and Sugaya Hisashi — voted against it.

Antonini told us that he believes 25 Lusk is more than 500 feet away, and as for the restaurant, planning staff recommended approval.

The commissioner told us, "I was the one who brought public attention to the issue of my possible conflict. I believe it is a small issue when compared to my body of work on behalf of San Francisco over the last six years."

The June 5 meeting where Antonini made the disclosure about his son’s condo was part of a long and detailed process that will determine the fate of vast sections of Potrero Hill, SoMa, the Mission District, and Dogpatch. The official planning process for the targeted 2,200-acre area began back in 2001, and the commissioners could approve new zoning plans next month before sending the proposal to the Board of Supervisors.

For much of San Francisco’s history, the city sections poised for rezoning have been home to light industry and blue-collar jobs. But housing has encroached over the last 15 years, and the planning commission is prepared to allow between 8,000 and 10,000 new units over the next 20 years. That will almost certainly increase the value of land in the area.

Residential developers built thousands of pricey condos in the SoMa District during the 1990s, exploiting another divisive zoning loophole that created waves of animosity across the city and aided in a takeover of the Board of Supervisors by a progressive bloc of candidates.

Live/work lofts, as developers called them, were built in areas zoned for light industrial commercial purposes. Wealthy buyers would ostensibly operate businesses out of their homes or live in them as working artists as the zoning required, but few have complied with the letter or — having found ways to narrowly abide by it — the spirit of the law.

"The city turned its head," housing attorney Sue Hestor said. "We have 3,000 units that are supposed to be occupied by artists and probably 90 percent of them are not occupied by artists at all. It’s blatantly illegal."

Antonini has managed to maintain friendships with local moderate Democrats over the years despite being an elected member of San Francisco’s Republican Party County Central Committee. Willie Brown first appointed him to the powerful planning commission in 2002, and he’s been a reliable vote for developers and other large business interests. Mayor Gavin Newsom reappointed him in 2004 and earlier this year tried to engineer Antonini’s election as president of the commission.

PG&E lobbying doubletime

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image courtesy of www.opensecrets.org

PG&E spent almost $2 million on lobbying during the first quarter of 2008, according to an Associated Press report today. Last year they spent just under $4 million, which means they’re pacing to spend double that this year.

As the industry tally for electric utilities on OpenSecrets.org shows, PG&E is third in the national field – outranked by Southern Company and the Edison Electric Institute (basically a gigantic energy lobbying group of which PG&E is also a member.)

Of course, that’s just taking care of national business. Closer to home, the $13 billion utility company has dropped $208,357.08 this year on lobbying – mostly wining and dining California Public Utilities Commissioners, influencing election outcomes, and paying the salaries of their employees who sit on public boards like the Bay Conservation and Development Commission.

And just an FYI for y’all — the spike in PG&E lobbying in 2006, as shown in the above graph, can be traced to the $11 million the corporation spent defeating a public power campaign in Yolo County. As a public power initiative for San Francisco heads to the November 2008 ballot, can we expect another banner year of spending from PG&E?

The Chron discovers what’s wrong with SF

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It’s taken long enough, but the San Francisco Chronicle has finally figured out the biggest story in town, a story that’s been the single most important part of the city’s political and social landscape for more than a decade: Housing prices are “>driving the middle class out of town.

There’s lots of handwringing and comments from people like Roberta Achtenberg:

“It’s not very healthy for the city’s social fabric or the city’s economy,” said Roberta Achtenberg, an economic development consultant who focuses on workforce housing.

Gee — until recently, Achtenberg worked for the Chamber of Commerce, which has been a big part of the reason that the city drives out poor people and the middle class.

Nowhere in the story is there any mention of the reason official city policy is in large part to blame. You know why there’s no affordable housing? Because we only build housing for rich people.

City sues ExxonMobil

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440 Jefferson St. to Exxon: “Clean me!”

Man…city attorney Dennis Herrera is on a roll these days. Gay marriage out of the way, he’s now moved on to the largest corporation in the world. Hot.

The city is suing ExxonMobil for its “defiant refusal to address environmental damage caused by decades of disposal and release of hazardous petroleum products on property owned by the Port of San Francisco in the City’s Fisherman’s Wharf area,” according to a press release.

Mobil Oil operated a fueling facility at 440 Jefferson St. on Fisherman’s Wharf for 54 years. Documentation of leaks and spills from the site dates back to 1986, when a 1000-gallon underground fuel tank was removed. The company formally agreed to remediate the site in 1994. The city’s suit alleges they haven’t.

“The contamination is injurious to the environment, is offensive to the senses, and obstructs the free use, development and comfortable enjoyment of the city’s property,” states the 20-page complaint. [PDF]

You tell ‘em, Dennis. That area is long overdue for some comfortable enjoyment. The complaint outlines a tedious back and forth between the city, the Regional Water Quality Control Board, and ExxonMobil, on getting that shit cleaned up – all to no avail.

“There’s a whole history of broken promises,” said city attorney spokesperson Matt Dorsey. “It’s certainly within the means of ExxonMobil Corporation to remediate the environmental damage its responsible for.”

Currently worth $501.17 billion, the oil company may soon be reaping new profits as a result of no-bid Iraqi oil contracts to be granted to it, Shell, Chevron, and others, at the end of this month. (One under emphasized result of ousting Saddam Hussein is that a state-controlled resource is now open to the free market.)

Dorsey said of the relationship with ExxonMobil, “We had an agreement in 1994. I would leave it to ExxonMobil for the rationale on why it takes 14 years to clean up a site.”

A call to ExxonMobil seeking an answer to that question hasn’t been returned.

The company doesn’t have a great track record on cleaning up their messes or paying for them: they still haven’t coughed up the $2.5 billion they owe for the Valdez spill in Alaska.

They also continue to stand by the “we’ll believe it when we see it argument” when it comes to global warming. That is – when they’re not busy funding skeptics to deliberately obfuscate the truth of the matter.

Towards Carfree Cities: “We’re not doing enough”

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Steven T. Jones reports from the Towards Carfree Cities conference in Portland
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“We’re not doing enough,” Gil Peñalosa told the Towards Carfree Cities conference during his keynote speech yesterday. Cities are facing multiple crises connected to over-reliance on the automobile – declining public health, environmental degradation, resource depletion, loss of community, not enough space in U.S. cities to handle the 100 million people they’ll need to accommodate in the next 35 years – and most are responding with baby steps that deny the scope of the challenge our species in facing.

Peñalosa is sort of a rock star among the carfree set. After spearheading the transformation of his native Bogota, Columbia into a healthy, forward-thinking community by overhauling parks and roadways and pioneering the carfree “Ciclovia” concept that San Francisco is now adopting, Peñalosa took to the international stage, serving as executive director of Walk and Bike for Life and working closely with pioneering urban design firms such as Gehl Architects.

Unlike many European cities that have aggressively moved beyond automobile-centered development models, Peñalosa said no U.S. city has demonstrated the political will to make carfree living a realistic option for all their citizens, particularly the very young and very old. He congratulated Portland for recently receiving the top-tier platinum designation for bicycle friendly cities from the League of American Bicyclists.

That’s very good, but he noted that it’s tough to go from good to great, which is what needs to happen now if we’re to slow global warming, reverse obesity trends, and prevent soul-sapping gridlock in our cities. “The reality is Portland is far from being great,” Peñalosa said. “You are only good. You’re far from being great.” He also commended New York City for announcing just a day earlier that much of Manhatten will be carfree for three days this summer. But again, good, not great.

San Francisco, by the way, is a tier below Portland’s platinum with a ranking of gold. Sure, we’re doing a Ciclovia for three days this August and talking about a congestion pricing fee for driving downtown (something New York City recently tried and failed to implement). But compared to cities such as Copenhagen, Amsterdam, Berlin, Paris, Vancouver, Barcelona, and Melbourne – where well over half of all trips are taken by foot, transit or bicycle and the populations are far healthier – San Francisco, New York City, and Portland are living in the last century. He said it’s time for the best U.S. cities to start playing at the level of their international counterparts.

“That’s where Portland belongs and that’s the challenge,” Peñalosa said. “Under existing conditions, we have to make major leaps instead of baby steps.”

Avoiding a Lennar meltdown

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EDITORIAL Millions of dollars in campaign money kept Lennar Corp.’s plans for southeast San Francisco alive. But the financial news isn’t looking good for the giant homebuilder — and the San Francisco supervisors ought to be worried.

Last week, Sup. Chris Daly released a document he obtained from the Redevelopment Agency showing that the city had quietly sought a $25 million grant from the state Department of Housing and Community Development to cover a projected loss in Lennar’s Hunters Point Shipyard project.

The problem: increased construction costs, trouble in the financial markets, and unforeseen environmental issues have eaten up all the money that Lennar and the city had made available for infrastructure improvements on the site. That means the roads, water and sewer pipes, and other basic stuff that project will need to go forward are no longer adequately funded. Without an influx of state money, the city argued, the whole shipyard project would either be "drastically reduced in scope" or put on hold for another two or three years.

"Without the requested $25,021,079 Infill grant allocation, our infrastructure project faces a serious risk of being mothballed," city officials wrote. As Sarah Phelan reported at sfbg.com, the state rejected the application last week.

The shipyard project is the first piece of Lennar’s grand-scale Bayview Hunters Point redevelopment — and it’s already in serious financial trouble. The same issues that are causing problems at the shipyard will be in play when Lennar starts work on the 10,000 new housing units now approved for the Bayview–Hunters Point redevelopment area. Construction costs will be even higher in a year or two. The end of the mortgage crisis is not yet in sight. As Daly told us, the shortfall in the first part of the project "casts a very large shadow on the mixed-use development envisioned under the conceptual framework on Proposition G."

Then on June 8, a Lennar subsidiary that’s working on redeveloping the Mare Island Naval Shipyard property filed for Chapter 11 bankruptcy. That project is now in limbo as the development consortium — facing economic pressure and unable to get the necessary financing — seeks protection from creditors. Combined with the fact that Lennar’s bond ratings continue to tumble (Lennar debt was downgraded again June 10), San Francisco officials ought to be asking the obvious question: can this Miami-based developer actually pull off this project? Or is it possible that after all of the political debate over the Lennar plan, the lack of adequate affordable housing, the future of the 49ers, the toxic contamination of the site, and everything else, the entire massive project could collapse because Lennar doesn’t have the financial ability to finish it?

This, of course, is one of the inherent problems with the traditional redevelopment model. The city essentially will be giving a huge piece of public land to a single private company that will then be responsible for building an entire new neighborhood with homes, offices, stores, and parks. In theory the developer will make enough money to stay afloat until construction is finished — and the property taxes in the area will increase enough to fund necessary infrastructure (schools, roads, bus lines, water and sewer service, and other public amenities). But if the developer goes broke, the city is left hanging.

That’s what’s happening in Vallejo, where a city that already has serious financial problems is facing the possibility that environmental cleanup at Mare Island will grind to a halt, and that a $6 million municipal service fund — paid for in part by Lennar — could suffer.

The prospects for San Francisco could be far worse. Suppose the city goes ahead and transfers public land to Lennar — which then goes into bankruptcy. Would that city land be treated as a private asset and given over to whatever creditor or vulture fund picks up Lennar’s ghost?

Fred Blackwell, the director of the Redevelopment Agency, won’t return our phone calls, but the supervisors need to hold a hearing on this and force him and Lennar to provide some answers. The board needs an independent audit of Lennar’s finances, either by Budget Analyst Harvey Rose or an outside consultant. And until the city knows for sure that the developer can actually handle this project, the entire redevelopment process for Bayview–Hunters Point needs to be put on hold. *

A heart once nourished

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› gwschulz@sfbg.com

Community court, every second Thursday at 10 a.m. Narcotics Anonymous on Wednesday. Apprenticeships for construction workers, Monday, bright and early.

The ancient letter board just inside the entrance of the Ella Hill Hutch Community Center tells much of the story of this neighborhood institution. Since 1981 it’s been a crucial hub for the Western Addition, a mostly level stretch of terrain west of downtown that rivals the Mission District and Bayview–Hunters Point as the source of the most despair from senseless gun violence.

For decades Ella Hill was a safe haven, a place where kids and seniors felt comfortable, where people could learn and teach and talk and work together, a little oasis in the world of urban hurt.

A placard affixed to one wall of the entryway honors Thurgood Marshall, the nation’s first African American US Supreme Court justice. In a small office nearby, a tutor assists a young girl with the multiplication table. Elsewhere, a list of rules forbids profanity, play-fighting, and put-downs.

There’s also a poster of Ella Hill Hutch, the first black woman elected to San Francisco’s Board of Supervisors, where she served from 1978-81.

But in 2006, a man was murdered during daylight hours in the center’s gymnasium before dozens of witnesses. That slaying was one of at least five brutal incidents that took place in the shadow of Ella Hill between 2006 and 2007; three more murders occurred within blocks. Many remain open cases today.

And now the center is having serious problems — troubles that reflect those of the city’s African American population, which has been plagued by violence and socioeconomic changes that are closing opportunities and forcing longtime residents out the city.

Several census tracts in the neighborhood that at one time contained between 3,000 and 6,000 black residents are down to 1,000 or far less, according to a San Francisco State University study commissioned by the city last year. The report showed that between 1995 and 2000 San Francisco lost more of its black population than 18 other major US cities.

Ironically, the city is now preparing to close the final dark chapter on 50 years of federally subsidized redevelopment in the Western Addition. But the displacement that the bulldozers set off half a century ago continues today, unabated.

That exodus has compounded structural problems at the center just when its remaining clients need it most. The nonprofit late last year underwent an organizational shake up and brief takeover by the Mayor’s Office to save it from imminent financial collapse. The center’s executive director of two years, George Smith III, was fired with little public explanation last year, and a permanent head was named only recently.

As with many aspects of this troubled community, it was unaddressed violence that fed the fire. Simply subsisting in the heart of a violent neighborhood was strain enough for Ella Hill. But suffering an attack from within seemed too much to bear for an institution some call "San Francisco’s Black City Hall."

The 2006 killing took one man’s life, but Ella Hill itself — still facing an uncertain financial future — felt the searing rounds too. Now some wonder if the nonprofit can survive the very violence and poverty it was created to help end in a neighborhood that’s changing forever.

In Ella Hill’s noisy gymnasium at the building’s east end, two teams of middle schoolers practice basketball.

"My job is to be in the best position to box him out for a rebound," their coach says as they crowd around the free throw line.

The kids are radiant and attentive now. But from this same basketball court on April 27, 2006, the Western Addition briefly edged ahead of the rest of the city in extreme bloodshed.

Donte White, 22, was working part-time at the center. As he supervised a basketball game, two unidentified males entered Ella Hill. One brandished a firearm and shot White at least eight times in the face, neck, and chest as several kids looked on in utter horror. Among them was White’s young daughter.

Police arrested 25-year-old Esau Ferdinand for the attack five months after White’s murder. But within two weeks prosecutors decided they could no longer hold him and declined to press charges when a key witness disappeared on the eve of grand jury proceedings.

Even with other witnesses filling the gym, police gathered few additional leads, an all-too-common story in a neighborhood where residents often prefer to avoid both law enforcement and vengeful criminal suspects.

The center installed cameras and an alarm. A buzzer was placed on the front door. But the new security measures cut against Ella Hill’s image as a demilitarized zone, and the center remains shaken by White’s murder. Some parents began barring their children from going there.

"Can you imagine something like that, someone coming into a rec center in the middle of the day with a firearm and shooting and killing a guy?" asks Deven Richardson, who resigned from Ella Hill’s board in 2007 to focus on his real estate business. "That really set us back big time in terms of morale. It really was a dark moment for the center."

Sup. Ross Mirkarimi, whose district includes Ella Hill, says that after he took office in 2004, he learned that the police weren’t stationed at the center during prime hours and had never created a strategy for attaching themselves to the center the way they had at other safe-haven institutions in the city, like schools. He told us he’s had to "really work" to get the nearby Northern Station more integrated into Ella Hill.

"Before the murder of Donte White, there had also been a series of incidences inside Ella Hill Hutch," Mirkarimi said over drinks at a Hayes Valley bar. "Nothing that resulted in anybody getting killed, but certainly enough indicators that really should have been taken more seriously by the mayor."

In June 2006, shortly after White’s shooting, the San Francisco Police Commission and the Board of Supervisors held a tense public meeting at the center. Residents, enraged over the wave of violence that summer in the Western Addition, shouted down public officials, including Chief Heather Fong, who was forced to cut short a presentation on the city’s crime rate.

That same month, the supervisors put a measure on the ballot to allocate $30 million over three years for violence-prevention efforts like ex-offender services and witness relocation. But Mayor Gavin Newsom, following a policy of fortifying law enforcement over community-based alternatives, opposed the measure because it excluded the police department. Prop. A, designed to finance groups like Ella Hill with connections to the neighborhood that the police will never have, lost by less than a single percentage point.

Meanwhile, four homicides in the neighborhood that year joined frequent anarchic shootouts in the Western Addition, including many that never made headlines because no one was killed. The fatalities led to promises by City Hall that the area would be saturated with improved security, including additional security cameras that have mostly proved useless in helping the police solve violent crimes.

On June 3, 2006, 19-year-old Antoine Green was standing on McAllister Street near Ella Hill early in the morning when he was shot to death in the head and back. On Aug. 16, 38-year-old Johnny Jackson’s chest was filled with bullets as he sat in the front seat of a Honda Passport on Turk Street not far behind Ella Hill. A woman next to him in the car suffered a critical gunshot wound to the head.

Two more killings occurred further east at Larch Way, a popular location for murder in the neighborhood.

Burnett "Booski" Raven, a 32-year-old alleged member of the Eddy Rock street gang, was found bleeding at 618 Larch Way early Oct. 7, his body laying halfway in the street and containing at least 10 gunshot wounds. On July 22, police found 23-year-old John Brown, another purported Eddy Rock member, wedged under a Chevy pickup truck, dead from up to seven gunshots.

Brown had reportedly survived two prior shootings, but the Western Addition’s cultural condemnation of "snitching" to police has so infected the neighborhood that he allegedly told police not to bother investigating either of the attacks.

Loïc Wacquant, a sociology professor at the University of California, Berkeley, says neighborhoods like the Western Addition that once contained stable black institutions — schools, churches, and community centers that glued residents together — have been overwhelmed by the rise of a white-collar, service-based economy, the decline of unions, and the withdrawal of meaningful social safety nets.

Cities have responded to the resulting marginalization with more police officers, more courts, and more prisons. But the failure of those institutions to cure rising violence "serves as the justification for [their] continued expansion," Wacquant quoted Michel Foucault, the famous late UC Berkeley sociologist, in the academic journal Thesis Eleven earlier this year.

The roots of the Western Addition’s tragedy go back to the early post-World War II era. In 1949, Congress enacted laws giving cities extraordinary powers to clear out land defined as "blighted." In San Francisco, that meant neighborhoods where low income people of color lived.

The Western Addition was devastated. Huge blocks of houses were bulldozed. Clubs, stores, restaurants — the heart of the black neighborhood — were wiped out. Many residents were forced out of the neighborhood and sometimes the city forever; others lost their property and their livelihoods (see "A half-century of lies," 3/21/2007).

By the 1970s, neighborhood activists were hoping that at the very least the Redevelopment Agency would pay for a recreation facility for kids. But city officials wouldn’t put up the money, recalls the Rev. Arnold Townsend, a longtime political fixture in the city and associate pastor of the Rhema Word Christian Fellowship.

Townsend said activist Mary Rogers — whom he calls "the greatest champion kids ever had in this community" and a famous critic of redevelopment — gave up on City Hall and went to Washington DC, where she sat in at a meeting that happened to include Patricia Harris, Secretary of the Department of Housing and Urban Development under President Jimmy Carter. Rogers, joined by a group of colleagues from San Francisco, bumped into Harris afterward.

"[Harris] shook Mary’s hand like politicians do, and Mary wouldn’t let her hand go until she had a meeting," Townsend said. "They were having a tug-of-war over her hand."

Rogers’ determination paid off, and enough political channels opened up that money for the center became available. Then-Mayor Dianne Feinstein cut the ribbon for the $2.3 million Ella Hill Hutch Community Center four months after the supervisor’s death, complete with outdoor seating for seniors, a gymnasium, tennis courts, and child-care facilities.

A young counselor named Leonard "Lefty" Gordon who worked at the Booker T. Washington Community Service Center, one of the city’s oldest black institutions — it was founded in 1919 on Presidio Avenue, where it remains today — was named executive director of Ella Hill three years later and led the center to wide acclaim for 17 years.

A recreation coordinator at Ella Hill started a reading program for young athletes after discovering that a local high school football star wasn’t aware he’d been named the city’s player of the year: the teenaged boy couldn’t read the newspaper to find out. Other programs for tutoring and job training targeting young and old residents were likewise started under Gordon.

Many of the people we interviewed recalled the "kitchen cabinet" meetings convened by Lefty Gordon at Ella Hill as among their fondest memories. Everyone from the "gangbangers to police" attended Gordon’s meetings, Townsend said, and made them a repository of complaints about what was happening in the neighborhood.

Alphonso Pines, a former Ella Hill board member and organizer for the Unite Here! Local 2 union, eagerly showed up at the meetings for months after attending 1995’s Million Man March in Washington.

"I hate to see brothers die, regardless of whether it’s at Ella Hill," Pines said of Donte White’s 2006 killing. "But that was personal for me, because that was the place where I had sat on the board for years. That was real shocking."

Lefty’s son, Greg Gordon, said that his legendary father — who died of a heart attack in May of 2000 — worked so hard for the center that he allowed his own health to deteriorate.

Most beneficiaries of Ella Hill’s social services now live in the southeast section of the 94115 ZIP code, roughly bordered by McAllister and Geary streets to the south and north, and Divisadero and Laguna streets to the west and east.

The majority of Ella Hill’s approximately $1.4 million annual budget comes from government sources, either through grants or nonprofit contracts.

Newsom, through his community development and housing offices, has given $860,000 over the past three years to Ella Hill to help job-ready applicants obtain construction work and other general employment in the neighborhood. The center launched its JOBZ program in 2006, targeting formerly incarcerated young adults and others with a "hard-to-employ" status.

Caseworkers must convince some participants to leave gangs, deal with outstanding warrants, pay back child support, expunge criminal records, or eliminate new offenses, all of which can exacerbate a desire to give up. Sometimes the center has to buy people alarm clocks.

"None of these other programs that are being funded in this community want to deal with the kinds of kids or people who come to Ella Hill…. [It] is the last stop for everybody," said London Breed, head of the African American Art and Culture Complex on Fulton Street and a Western Addition native. "That’s where people go who have no place else to go, which is why it’s so important."

Most nonprofits working for the city must regularly report their operational costs or show how program funds are being spent on graduation ceremonies and trips to university campuses. The required forms are mind-numbingly bureaucratic and reveal little about what a place like Ella Hill might face on a practical level each day. But last year, former executive director George Smith betrayed a crack in Ella Hill’s veneer.

"Once again violence has impacted the community with three incidents in close proximity to the complex this month alone," he wrote to the San Francisco Department of Children, Youth and Their Families, which supports the center with college preparation grants. "One of the victims was a young man scheduled to graduate from high school in June."

On May 25, 2007, 19-year-old Jamar Lake was leaving a store on Laguna and Eddy streets, northeast of Ella Hill, when a teen suspect opened fire on him. Paramedics were so worried about security in the neighborhood that they fled before attempting resuscitation, according to a report from the San Francisco Medical Examiner. Lake died at General Hospital that day.

Weeks later, a manic 12-hour long feud erupted between several gunmen on McAllister Street. Seven people were wounded during two daytime shootings that took place in the Friendship Village Apartments, across the street from Ella Hill.

Then in July, a suspect randomly and fatally stabbed 54-year-old Kenneth Taylor in the neck as he sat on a park bench near sundown at Turk and Fillmore streets, within easy view of the SFPD’s Northern Station. Police didn’t respond until Taylor stumbled to the sidewalk and collapsed; a witness had to flag down a patrol car.

Following the Lake shooting, the mayor and police department promised, as they had the year before, that foot patrols would be increased in the 193-unit Plaza East Housing Development and other public housing projects in the Western Addition.

But the city’s most visible response has bypassed Ella Hill — which has some street credibility — altogether. Instead, City Attorney Dennis Herrera went to court to get injunctions against street gangs in June 2007.

Herrera’s initial filing came days after the wild shootout on McAllister Street, but the timing was coincidental. The city attorney also had been preparing injunctions against gangs in the Mission and Bayview-Hunter’s Point for months. For the Western Addition, the city attorney noted a "recent rise in violent crimes perpetrated by the defendants," and asked that the members of three gangs be banned from associating with one another inside two "safety zones" marked along the contours of their respective territories, a 14-square-block area that straddles Fillmore Street and rests just north of Ella Hill.

"The conditions within the two safety zones have become particularly intolerable in 2007 as the deadly rivalry between the Uptown alliance and defendant Eddy Rock has intensified," Herrera’s office told the court. "In 2007 alone, this rivalry is the suspected cause of at least three homicides and numerous shootings within the two safety zones."

Some critics viewed barring people from congregating with one another a civil rights violation. And worse, they feared it would merely shove more African Americans and Latinos out of the Western Addition, which would benefit the city’s wealthiest white residents.

"All of this stuff about gang injunctions is a bunch of malarkey," said Franzo King, archbishop of the Saint John Coltrane African Orthodox Church on Fillmore Street. "You don’t really have gangs here…. [In San Francisco] they’re a big club."

Herrera nonetheless convinced a Superior Court judge to issue the injunctions after filing 1,200 pages of evidence arguing that the three "clubs," which include only about 65 people named by the city, are endless public nuisances and force organizations like Ella Hill to battle with them for the affections of Western Addition youth.

Police admit that the injunctions since last year have, in fact, led people to simply leave the neighborhood. Still, they insist the injunctions have reduced trouble in the Western Addition. The Knock Out Posse, for instance, is evaporating, they say.

Paris Moffett, a 30-year-old alleged Eddy Rock leader, told the Guardian in a separate story on the gang injunctions last November that he and others were organizing to quell violence in the neighborhood and would do so in defiance of the gang injunctions (see "Defying the injunction," 11/28/07).

But on the day that story ran, Moffett hampered his new cause when, according to a March 27 federal indictment, police arrested him in Novato for possessing a large quantity of crack and MDMA, as well as a Colt .45 semiautomatic.

After Lefty Gordon died, the center went through a couple of directors in relatively short order. Robert Hector, a second-in-command to Lefty Gordon, helmed the center briefly; he was replaced with George Smith III, who left in 2007.

Meanwhile, problems at Ella Hill grew.

"The seniors just stopped their participation," Anita Grier, a former Ella Hill board member who first ran for the San Francisco City College Board of Trustees in 1998 at Gordon’s encouragement, told us. "Things were never excellent, but they just got much worse once [Gordon] was no longer director."

The center, a standalone nonprofit, had long struggled financially in part because it relied so much on contracts and grants from the city rather than pursuing funds from private donors. Mirkarimi says Ella Hill’s structure is unlike any other community center in the city. Many other centers are directly maintained by the San Francisco Recreation and Park Department.

Contract revenue from one Ella Hill program, such as providing emergency shelter to the homeless, was often diverted to keep another on life support or to simply cover the center’s utility bills.

By early 2007, the center faced a financial catastrophe. Donald Frazier joined Ella Hill’s board as president in January 2007 and embarked on a reform effort to turn the center around. He commissioned what came to be a blistering audit that revealed the nonprofit owed over $200,000 in state and federal payroll taxes. As a result, the center faced $63,000 more in penalties and accrued interest.

Mirkarimi blames community leaders in his district for refusing to acknowledge a crisis at the center and for not turning to City Hall for help when Ella Hill appeared to be slowly rotting from the inside out.

The mayor’s staff, he adds, wanted to believe Ella Hill was working on its own and should’ve continued to do so because, despite its financial reliance on the city, it was technically an independent nonprofit. In reality, Mirkarimi said, "They were afraid to piss off black people, is what it comes down to. They were afraid to tell it like it is — that things weren’t working."

Sending delinquent invoices to the city, failing to institute reasonable accounting standards, and falling far behind on its payroll taxes all threatened the government contracts and grants that kept San Francisco’s Black City Hall afloat. By extension, the audit concluded, that meant Western Addition residents who relied on Ella Hill were "victimized" by the center’s improper use of its limited resources.

Aside from the audit, which Ella Hill instigated itself, there’s no indication in the records of agencies funding the center that any problems were occurring, which implies the city wasn’t paying attention.

"As far as I’m concerned," Mirkarimi said, "we had a renegade institution, and the only reason it wasn’t renegade in an illegal sense was because the lease allowed them to have a parallel governance structure. But it was renegade in the sense that the city neglected to supervise properly."

In November 2007, just after residents hijacked a chaotic board meeting with an extended public comment period, Frazier told the directors in closed session that the Redevelopment Agency was planning to restrict future funding for the center due to its management problems.

One month later, the mayor dispatched an aide, Dwayne Jones, along with redevelopment agency director Fred Blackwell, to a meeting at Ella Hill with an ultimatum. Jones told the assembled that new interim appointees would be taking over the center’s bank books, recreating its bylaws, and electing a new board and executive director. The old board would essentially be dissolved. According to observers at the meeting, Jones told them that if they resisted the plan, funds received by Ella Hill from various city agencies would be jeopardized, as would its low-cost lease of city property.

Two defiant board members viewed the move as a "hostile takeover" of a private nonprofit organization by the mayor and voted against it, but the rest of the board agreed to the restructuring. Mirkarimi says there was simply no alternative.

"Right now it needs to be shrunk to what it can do really well, instead of doing what they had to do in the last five years, an incremental sloppy way of programming," he said.

The interim board in April named a former Ella Hill employee and Park and Rec administrator, Howard Smith — unrelated to George Smith — to be the center’s new executive director. But after all the changes Ella Hill made to fix its leadership problems, there are no assurances the city won’t leave Ella Hill without the money it needs to keep the doors open next year.

It’s noon on a recent Friday and Ella Hill’s new executive director is scrambling to keep things together. An employee wants him to glance at a form. Another man wants to come in and play basketball. Smith has a board meeting minutes from now, but he’s scheduled an interview with the Guardian at the same time.

Smith’s a well-built man dressed in a pressed suit, polished shoes, and a sharply-knotted tie. He’d mostly avoided our calls for weeks. Word spread in the neighborhood that the Guardian was planning some sort of hit piece on Ella Hill.

But it won’t be a newspaper that capsizes the center.

A significant portion of the center’s funding will be threatened over the next year. The redevelopment agency is scheduled to end its 45-year reign in the Western Addition by then, a blessing of sorts since so many people in the neighborhood feel it’s done nothing but upend the lives of black residents. But the end of the agency means that redevelopment funds for Ella Hill’s job placement programs, about $400,000 annually, will disappear.

In addition, about $300,000 more a year will dry up since the San Francisco Human Services Agency hasn’t renewed an emergency homeless shelter contract with the center. Mirkarimi believes the mayor, too, will try to stop providing Ella Hill with funding through his community development office next year.

If Newsom does back away, Mirkarimi warns, there will be "a very loud showdown."

"What I’m worried about is that the Newsom administration is basically cutting and running on this, and I’m not going to allow that to happen, at least not without a fight," he said.

The alternative is for Rec and Park to take over managing Ella Hill’s facilities with DCYF continuing to fund youth programs there while the Redevelopment Agency commits community benefits dollars from a legacy fund to the center — the least it can do after a half-century of transforming the neighborhood, locals be damned.

An interagency council made up of the center’s primary funders could collectively watchdog its performance, Mirkarimi says. Once Ella Hill’s leaders prove that the center has fully returned to its original mission, it can consider expanding to serve other populations in the neighborhood, or even seek a plan to detach further from the city.

The mayor’s spokesperson, Nathan Ballard, did not respond to an e-mail containing detailed questions, and his aide, Dwayne Jones, did not return several phone calls. But Smith said during a later lunch interview at the Fillmore Café that he agrees with Mirkarimi’s idea.

"There are so many programs out there that say they’re doing something on paper, but they’re really not doing it," Smith said. "They’re running ghost programs. So what I’ve been saying at Ella Hill since I got there is, ‘We will do exactly what we said we were going to do.’<0x2009>"

In the meantime, Smith is determined to prove that Ella Hill’s history has only just begun. The mural of Lefty Gordon outside the center received a fresh coat of paint recently, and the color pops. The sidewalk is being repaved and new handrails installed. The walls inside are clear of the aging posters and letter board that hung there a few months ago.

Before heading off to his board meeting, Smith teasingly asks an adolescent boy meandering in the center’s entryway for 75 cents. The boy’s always hitting him up for pocket change.

"I don’t got any," the boy responds.

"You don’t have any," Smith corrects.

Smith suddenly realizes what time it is.

"Hey, why isn’t this guy in school?" he wonders aloud.

At that moment, only the Ella Hill Hutch Community Center was asking the question. *

Treasure Island welcomes vinyl dildos and tankers of lube

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dildodog.jpg

We honestly thought the Exotic Erotic Ball would be the last event to leave the beleaguered Cow Palace. But sure enough, we’ve just learned that the 28th annual “celebration of flesh, fetish and fantasy,” in fact, won’t be held at the legendary Daly City venue. Instead, organizers have moved it this year to Treasure Island. The ball’s operator says the event simply outgrew Cow Palace, but it may also have been Daly City’s campaign to get rid of the convention center and replace it with a massive development project to include a grocery store, condos and some chain retail outlets.

In announcing the move, Treasure Island’s director of operations, Mirian Saez, tried to get all hip and claim that the all-but-deserted sliver of land out in the middle of the Bay that developers are currently planning to build a small city on has a long history of hosting sordid celebrations of sin. During the 1939 World’s Fair held at Treasure Island, for instance, one of the most popular attractions was a strip show known as Sally Rand’s Nude Ranch where women wore cowboy hats, gun-belts, boots and not a lot else, according to a statement.

So, Treasure Island officials reasoned, why not have the Exotic Erotic Ball there, too? I mean, apparently they’ve been naked and banging each other out there for years anyway. Maybe that’s why Willie Brown had a particular fondness for sending patronage hacks out to Treasure Island’s administrative offices. Okay, that’s totally unfair.

The show’s producer, Howard Mauskopf, said in the statement that he loved Cow Palace, but the island will be a logistical improvement:

“We had big fun at the Cow Palace and threw some of our best parties ever at that site. But, on Treasure Island, we will have greater flexibility, and all the space we could possibly want. Plus, it’s one of San Francisco’s most idyllic and scenic waterside locations with unparalleled panoramic Bay views, and it has its own spicy and salacious past, just like the ball.”

According to the ball’s official history, it began in 1979 when Perry Mann hosted the shindig in his San Francisco penthouse apartment to collect campaign money for a presidential candidate running on the Nudist Party ticket at the time. His slogan? “I have nothing to hide.”

*Image courtesy Breaktaker.com.

Is Lennar mothballing Hunters Point Shipyard?

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The question may seem strange to voters who just gave Lennar the green light to redevelop the Shipyard and Candlestick Point by voting Yes on Proposition G.

But it sure looks like there’s a major financial problem at Lennar’s construction site on Parcel A of the Shipyard ( the first piece of land on the former naval base to be developed), judging from documents obtained from the City.

“Without the requested $25,021,079 Infill grant allocation, our infrastructure project faces a serious risk of being mothballed,” wrote Stephen Maduli-Williams, Deputy Executive Director of Community and Economic Development for the San Francisco Redevelopment Agency, on May 23, 2008. “The project would face increased costs from work stoppage, remobilization efforts and substantial change orders.”

Maduli-Williams was writing to Wanda Yepez, a grant program manager at the California Department of Housing and Community Development, to appeal a grant application that Yepez determined as ineligible a week earlier, on May 16, 2008.

In his May 23 appeal, Maduli Williams stated that, “In addition to setting national benchmarks in the percentage (in terms of total units developed) and affordability level of housing units created, this project sets benchmarks with its level of developer commitment/investment as well as other community benefits (Legacy Fund).”

Election as prologue

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› steve@sfbg.com

San Francisco politics shifted June 3 as successful new coalitions altered the electoral landscape heading into the high-stakes fall contests, when seven of the 11 seats on the Board of Supervisors are up for grabs.
Progressives had a good election night even as lefty shot-caller Sup. Chris Daly suffered a pair of bitter defeats. And Mayor Gavin Newsom scored a rare ballot box victory when the southeast development measure Proposition G passed by a wide margin, although voters repudiated Newsom’s meddling with the San Francisco Public Utilities Commission by approving Prop. E.

But the big story wasn’t these two lame duck politicians, who have served as the two poles of local politics for the past few years. It was Mark Leno, who handed Sen. Carole Migden her first electoral defeat in 25 years by bringing together progressives and moderates and waging an engaged, effective ground campaign. In the process, he may have offered a portent of things to come.

The election night speech Leno gave just before midnight — much like his entire campaign — didn’t break along neat ideological lines. There were solidly progressive stands, like battling the religious right’s homophobia, pledging to pursue single-payer health care, and blasting Pacific Gas & Electric Co. for funding sleazy attack pieces against him, reaffirming his commitment to public power.

But he also thanked Newsom and other moderate supporters and heaped praise on his political consulting firm, BMWL, which has run some of downtown’s nastiest campaigns. "It was clean, it was smart, and it was effective," Leno said of his campaign.

The Migden campaign, which had the support of Daly and many prominent local progressives, often looked dirty by comparison, marred by past campaign finance violations that resulted in Migden getting slapped with the biggest fine in state history and by Daly’s unethical misuse of the Guardian logo on a mailer that made it appear as if we had endorsed Migden.

Old alliances seemed to crumble around this election, leaving open questions about how coalitions will form going into an important November election that’s expected to have a crowded ballot and huge turnout.

UNITY AND DIVISION


There are things that unite almost all San Franciscans, like support for public schools. In this election that support came in the form of Prop. A — a measure that will increase teacher salaries through a parcel tax of about $200 per property owner — which garnered almost 70 percent of the vote.

"These numbers show that people believe in public education. They believe in what we’re doing," school superintendent Carlos Garcia told a jubilant election night crowd inside the Great American Music Hall.

Also uniting the city’s Democrats was the news that Barack Obama sewed up the party’s presidential nomination June 3, ending a primary battle with Hillary Clinton that had created a political fissure here and in cities across the country.

"The winds of change are blowing tonight. Let me congratulate Barack Obama on his victory," Leno said on election night, triggering a chant of "Yes we can" from the crowd at the Upper Market bar/restaurant Lime.

Local Clinton supporters were already switching candidates on election night, even before Clinton dropped her campaign and announced her support for Obama four days later.

"As a strong Hillary person, I’m so excited to be working for Obama these next five months," DCCC District 13 member Laura Spanjian, who won reelection by placing fourth out of 12 slots, said on election night. "It’s my number one goal this fall."

Leno also sounded conciliatory themes. In his election night speech, Leno acknowledged the rift he created in the progressive and LGBT communities by challenging Migden: "I know that you upset the applecart when you challenge a sitting senator."

But he vowed to repair that damage, starting by leading the fight against the fall ballot measure that would ban same-sex marriage and overturn the recent California Supreme Court decision that legalized it. He told the crowd, "I invite you to join together to defeat the religious right."

A day later we asked Leno about whether his victory represented a new political center in San Francisco and he professed a desire to avoid the old political divisions: "Let’s focus on our commonalities rather than differences," he said, "because there is real strength in a big-tent coalition."

But this election was more about divisions than unity, splits whose repercussions will ripple into November in unknown ways. Shortly before the election, Daly publicly blasted "Big Labor" after the San Francisco Labor Council cut a deal with Lennar Corporation, agreeing to support Prop. G in exchange for the promise of more affordable housing and community benefits.

On election night, Newsom couldn’t resist gloating over besting Daly, whose affordable housing measure Prop. F lost big. "I couldn’t be more proud that the voters of San Francisco supported a principled proposal over the political proposal of a politician," Newsom told us on election night, adding, "Today was a validation of community investment and involvement over political games."

While Daly and some of his progressive allies have long warned that Leno is too close to Newsom to be trusted, one of the first points in Leno’s speech was the celebrate the passage of Prop. E, which gives the Board of Supervisors more power to reject the mayor’s appointees to the San Francisco Public Utilities Commission. "As an early supporter I was happy to see that," Leno said.

Susan Leal, the former SFPUC director who was ousted by Newsom earlier this year, said she felt some vindication from the vote on Prop. E, but mostly she was happy that people saw through the false campaign portrayals (which demonized the Board of Supervisors and erroneously said the measure gave it control over the SFPUC.)

"This is one of the few PUCs where people are appointed and doing the mayor’s bidding is the only qualification," Leal told us on election night.
Sup. Tom Ammiano, who will be headed to the Assembly next year, agreed: "It shows the beauty contest with the mayor is over and people are willing to hold him accountable."

ANALYZING THE RESULTS


On the day after the election, during a postmortem at the downtown office of the San Francisco Planning and Urban Research Association, political consultants Jim Stearns and David Latterman sized up the results.

Latterman called the Prop. E victory "the one surprise in the race." The No on E campaign sought to demonize the Board of Supervisors, a strategy that clearly didn’t work. Firing Leal, a lesbian, helped spur the city’s two major LGBT groups — the Harvey Milk and Alice B. Toklas Democratic clubs — to endorse the measure, which could have been a factor when combined with the high LGBT turnout.

"This may have ridden the coattails of the Leno-Migden race," Stearns said.

In that race, Stearns and Latterman agreed that Leno ran a good campaign and Migden didn’t, something that was as big a factor in the outcome as anything.
"Migden did too little too late. The numbers speak for themselves. Leno ran a really good race," Latterman said, noting how Leno beat Migden by a large margin in San Francisco and came within a few thousand votes of beating Joe Nation on his home turf of Marin County.

"It was a big deal for Leno to get so close to Nation in Marin," Stearns said.

Leno told us the polling his campaign did late last year and early this year showed he had a strong advantage in San Francisco, "so with that, I invested a lot of time and energy in Marin County."

Stearns attributed the big Prop. G win to its large base of influential supporters: "The coalition-building was what put this over the top." Daly chalked it up to the $4 million that Lennar spent, saying it had bought the election. But Stearns, who was a consultant for the campaign, didn’t agree: "I don’t think money alone ever wins or loses campaigns."

Yet he said the lack of money and an organized No on G/Yes on F campaign did make it difficult to stop the Lennar juggernaut. "You need to have enough money to get your message out," Stearns said, noting that "Nobody knew that the Sierra Club opposed [Prop. G]."

In the one contested judge’s race on the ballot, Gerardo Sandoval finished in a virtual dead heat with incumbent Judge Thomas Mellon. The two will face off again in a November runoff election because a third candidate, Mary Mallen, captured about 13 percent of the vote.

"How angry is Sandoval with Mallen now?" Latterman asked at the SPUR event. "If that 13 percent wasn’t there, Sandoval wins."

Both Latterman and Stearns agreed that this election was Sandoval’s best shot at unseating a sitting judge. "He’s going to face a tougher test in November," Stearns said.

The other big news was the lopsided defeat of Prop. 98, which would have abolished rent control and limits on condo conversions in addition to its main stated aim of restricting the use of eminent domain by local governments.

"It just lost bad," Latterman said of Prop. 98, the second extreme property rights measure to go down in recent years. "It just needs to go away now…. This was a resounding, ‘Just go away now, please.’<0x2009>"

LOOKING FORWARD


Aside from the Leno victory, this election was most significant in setting up future political battles. And progressives won a big advantage for the battles to come by picking up seats on the city’s two Democratic County Central Committees, a successful offensive engineered largely by Daly and Peskin, who were both elected to the eastside DCCC District 13.

"On the DCCC level, we took back the Democratic Party," said Robert Haaland, a progressive who was reelected to the DCCC District 13.

"The fight now is over the chair. The chair decides where the resources go and sets the priorities, so you can really do a lot," Haaland told us.

Many of the fall supervisorial contests feature races between two or three bona fide progressives, so those candidates are going to need to find issues or alliances that will broaden their bases.

In District 9, for example, the candidates include housing activist Eric Quezada (who lost his DCCC race), school board president Mark Sanchez, and Police Commission member David Campos — all solid progressives, all Latino, and all with good bases of support.

Campos finished first in his DCCC District 13 race just ahead of Peskin. Speaking on election night at the GAMH, Campos attributed his strong showing to walking lots of precincts and meeting voters, particularly in the Mission, an effort that will help him in the fall.

"A lot of Latino voters are really eager to be more involved [in politics]," Campos said. "Speaking the language and being an immigrant really connects with them."

Campos thinks public safety will be a big issue on voters’ minds this fall, an issue where he has strength and one that progressives have finally seized. "Until Ross Mirkarimi came along, progressives really weren’t talking about it," Campos said.

So, does Campos’ strong DCCC showing make him the front runner? When I asked that question during the SPUR event, Latterman said he didn’t think so. He noted that Sanchez has always had strong finishes on his school board races, citywide contests that includes the Portola area in District 9 but not in DCCC District 13. In fact, Latterman predicted lots of acrimony and close contests this November.

"If you like the anger of Leno vs. Migden, we’ll have more in the fall," Latterman said of the competitive supervisorial races.

Leno hasn’t been terribly active in local contests since heading to Sacramento, and he told us that his focus this fall will be on state ballot fights and the presidential race. He hasn’t made endorsements in many supervisorial races yet, but his two so far are both of progressives: Ross Mirkarimi in District 5, and David Chiu in District 3. And as he makes more supervisorial endorsements in the coming months, Leno told us, "I will be fighting for progressive voices."

Sarah Phelan contributed to this story.

Uh-oh: Lennar’s $25 million shipyard funding gap

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Sup. Chris Daly wants an immediate hearing into the fiscal health of Lennar’s construction project at Hunters Point Shipyard, (you know, the one where they repeatedly messed up the asbestos dust monitoring).

Daly made his request at the June 10 Board of Supervisors meeting, following the discovery that the San Francisco Redevelopment Agency has applied for, but has so far been denied, a $25 million grant to subsidize infrastructure costs at the site.

The agency filed its grant application with the California Department of Housing and Community Development in April 2008. During that same period, Lennar spent an estimated $5 million to successfully persuade voters to support Proposition G, which will allow Lennar to develop luxury condos at Candlestick Point, as well as at the Shipyard.

(At the last minute, Lennar appeared to sweeten Prop.G’s terms, by negotiating a community benefits deal with the San Francisco Labor Council, including promises of 32 percent affordable housing and job creation investment. But tthe deal stretches the definition of “affordable” to way above what your average Bayview Hunters Point resident earns. And it only becomes legally binding, if, and when, something gets built at Candlestick/Hunters Point.)

Holding up a big fat binder, stufed with spreadsheets, financial data and grant applications, Daly read aloud to his fellow supervisors from documents that suggest that there is a serious financial shortfall at the Parcel A site, where Lennar graded an entire hillside in preparation for developing a 1,500 unit condominium complex.

“This raises questions about Parcel A and the mixed use project,” said Daly, citing from documnents that claim that the receipt of gap funding, “will restore the ability of the SFRA and the Developer to continue the development.g

As the agency’s own grant application states, “The Gap Funding in the amount of $25,021,079 provided by the infill infrastructure grant will enable the San Francisco Redevelopment Agency and the land master developer to continue the development of the Shipyard.”

“The infill infrastructure grant will be instrumental in moving forward the Capital Improvement Project in light of exisiting market conditions and increased construction costs.”

“Without the receipt of the grant, it will face delays in the timing of the completion of the infrastructure and creation of much needed parks.”

Hmm.

Daly’s cache of documents also reveal that the Shipyard Legacy Fund has shrunk from $30 million to $5 million. This raises serious doubts about the City’s ability to deliver on a list of promised community benefits at the Shipyard.
According to the SFRA’s own documents, “The Legacy fund is charged with reinvestment of the Agency’s proceeds from net land sales back into the BVHP community with an emphasis on employment, housing and financial/asset development, youth development, elder services, arts/culture & recreation and environment/safety.”

Stay tuned.

JROTC: This is never going to work

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hkd.jpg
Wouldn’t a martial-arts program be a better option?
(Photo of Master Jung from Koreanmartialarts.com

Okay, I’m all for getting rid of JROTC in the public schools. But I also recognize that there are some kids — about 1,600 — who like the program and get something out of it.

So the School Board has been looking around for an alternative — and I’m sorry, but this is never going to work.

Ethnic studies is a great idea, and ought to be part of the SFUSD curriculum. But the kids and parents who support JROTC aren’t going to see it as a viable alternative. And it’s pretty clear why.

Ethnic studies sounds like a class. JROTC is popular in some circles because it’s not just classroom education. It’s physical activity, it’s fun, it’s leadership development and it has a community-building element. The most popular part of the program, I’m told, is the marching band.

You need something that offers the same sort of attractions, but isn’t a military recruitment tool. And it seems to me there are plenty of options.

School Board members have talked about trying to find a program that feeds into the San Francisco Fire Department or even the Police Department. I don’t love the police option, but hey: Better to get kids interested in law enforcement than in the Army (and it might actually help San Francisco recruit some local people with community roots to be police officers). And a junior firefighter-paramedic program would have all kinds of benefits. The district hasn’t been able to work anything out with those options, though, in part because there’s no existing infrastucture; you can’t send 14-year-olds to the Police Academy, and the city’s paramedic classes are limited to people 18 and older.

But there’s another solution, too — and it seems pretty obvious to me.

San Francisco already has at least 50 good martial-arts schools and clubs that teach kids. I’ve been involved in Tae Kwon Do for almost 20 years, and my son is now a student at the Korean Martial Arts Center , and I can tell you that these classes offer physical fitness, confidence building, leadership development, and create communities and team spirit. You get uniforms. You learn to respect yourself and others. Good programs, and there are plenty around, teach conflict resolution and nonviolence.

And it’s fun and really cool.

Best of all, the infrastructure already exists.

The SFUSD spends $800,000 a year on JROTC. Most martial arts clubs in San Francisco are financially modest operations, and most instructors aren’t in if for the money. Getting a group of local martial arts clubs to set up satellite programs in the schools would be cheap. (The schools already have facilities and insurance, and the uniforms and equipment are — by the standards of what we spend on JROTC — inexpensive.

The kids now get phys ed credit for JROTC — another big attraction — but that’s a stretch anyway, since the state now requires phys ed teachers to have a California teaching certificate and none of the JROTC instructors qualify. Figure out a way around that for martial-arts instructors and you’d have it made.

I called Jane Kim, a school board member who’s on the curriculum committee, and she told me she was a little startled by the Ethnic Studies proposal, too. “We’ve been pushing the district to create an Ethnic Studies plan for a long time now,” she said, “but I was surprised to see that they combined that with replacing JROTC.” She’s a little dubious about this plan, too.

“We’re going to keep the marching band, though,” she said. “That’s a given.”

Which is a start.

Sealed with a fest

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› kimberly@sfbg.com

SONIC REDUCER "Obviously I wanted to be part of this wealthy cause … whoops, I mean, worthy cause — a Freudian slip!" blurted Seal to amassed gowns and tuxes at a packed Davies Symphony Hall May 31. Well, it was pretty B&W at this, the Black and White Ball 2008. He went on to explain that he was more than glad to play the benefit bash for the San Francisco Symphony’s Adventures in Music education program, until he realized that night’s event was just a day before wife Heidi "And sometimes you’re out … in the doghouse" Klum’s birthday. "Even though it was written almost 20 years ago, I never knew what this song was about till four or five years ago," he drawled graciously, before easing into a swooningly romantic "Kiss from a Rose." The coiffed and painted debs swayed in the seats behind the stage like tropical palms, the gray-tressed oldsters in tuxes yawned as if their jaws would dislocate, and all the right — and leftie — blondes flitted to the front as if drawn to a gyrating, white-scarfed flame. The irony that Seal was putting in a high-energy set and working in an establishment-jabbing anthem titled "System" — "but you won’t get to hear it here because record companies aren’t what they used to be, but this isn’t that kind of show," according to the UK crooner — was not altogether lost on the assembled partygoers at this very establishment affair.

Still, the Grey Goose quaffing, shrimp chomping, and dance-it-up musical offerings lining the closed-off swath of Van Ness added up to a surprisingly solid good time — not to mention further confirmation of the latest urban SF curiosity: packs of underdressed, strapless-clad or micro-miniskirted, microclimate-besieged fashion victims who insist on braving hypothermia sans outerwear. Is it really that toasty over the bridge and through the tunnel?

Nonetheless I got a kick out of Extra Action Marching Band, its flag girls drooling faux-blood while chilling, kicking it iceberg-style beneath the polka-dot-lit, fireworks-bedecked City Hall. Pete Escovedo still had what it took to pull me to the dance floor and get the salsa out. Hot on the heels of Harriet Tubman (Noir), Marcus Shelby riled up Strictly Ballroom wannabes in the bowels of the War Memorial Opera House, and upstairs DJ Afrika Bambaataa turned in an unforgettable old-school hip-hop and rock-pop set, sweetly warbling, "I just want your extra time … " to Prince’s "Kiss," as a mob of gorgeous freaks mobbed the stage. Be it ever so old-fashioned and ever so obligatorily glammy, the B&WB was such a ball that I was inspired to use it as the barometer of sorts for a few other music-fest contenders.

B&W BALL BY THE NUMBERS Kilts: two. Turbans: three. Closeted waltz-heads eager to make the Metronome Ballroom lessons pay off: more than a dozen. Misguided ladies who looked like they tried to repurpose their wedding gowns as white formalwear: two. Gavin Newsom look-alikes: a toothy handful. Jennifer Siebel look-alikes: hundreds. Former hippies in formalwear: six. Men in all-white who looked like they stepped out of an alternate "Rapture" video: two. Burning Man references as City Hall was bookended by pillars of fire at midnight: two. Screeching highlights-victims upon seeing their girlfriends: more than two ears can handle. Sneaky types who looked like they’ve probably worn the same thing to B&WB every year since 1983: more than designers and luxury goods manufacturers would care to know.

HARMONY FESTIVAL (June 6–8, Santa Rosa, harmonyfestival.com, including Damian "Jr. Gong" Marley, George Clinton and Parliament Funkadelic, Arrested Development, and Mickey Hart Band) Expected Gavin look-alikes: zip unless you count the Cali boys who look early Gavin — with dreadlocks. Rich hippies with perfect hair and lavishly embroidered coats: three.

BERKELEY WORLD MUSIC FESTIVAL (June 7, Berkeley, www.berkeleyworldmusic.org, with Dengue Fever, and Sila and the AfroFunk Experience) Expected turbans: the Sufi trance music guarantees at least a couple. Kilts: zero. Swirlie dancers: a dozen-plus.

OUTSIDE LANDS (Aug. 22–24, SF, www.sfoutsidelands.com, including Radiohead, Tom Petty and the Heartbreakers, Jack Johnson, Wilco, Beck, and the Black Keys) Expected bikes piled in the racks: a thou. Concert-goers overcome by heat: C’mon, this is San Francisco.

TREASURE ISLAND MUSIC FESTIVAL (Sept. 20–21, Treasure Island, treasureislandfestival.com, with Justice, the Raconteurs, TV on the Radio, and Tegan and Sara) Projected number of great views of SF: innumerable. Gold-trimmed "ironic" sunglasses: a gazillion. Concertgoers who discover far too late that shorts are only ideal for an hour a day: 135.

LOVEFEST (Oct. 4, SF, www2.sflovefest.org) Ever-recyclable ’70s-style bells: a couple-dozen. Fabulous-faux hairpieces: Wigstock is forever. Swirlie dancers: you got ’em.

YOU BREAK IT — YOU BOUGHT IT

FROG EYES, LITTLE TEETH, AND CHET


Eke out a few tears of valedictorianism: it’s an Absolutely Kosher explosion of untrammeled, happily eccentric talent. Fri/6, 9:30 p.m., $10–<\d>$12 Café Du Nord, 2170 Market, SF. www.cafedunord.com

FOOT FOOT AND FOX PAUSE


Lo-fi dust-ups coupled with folkie meanders are a–Foot Foot, flanked by the solo musings of ex-Guardian-ite Sarah Han. With Casiotone for the Painfully Alone. Sat/7, 9:30 p.m., $8. Hemlock Tavern, 1131 Polk, SF. www.hemlocktavern.com

RADIO SLAVE


Taking a break from the sweltering, disco-imbued exotica of Quiet Village and its Silent Movie (K7), producer Matt Edwards dons his dark techno persona, Radio Slave. Sat/7, call for time and price. Endup, 401 Sixth St., SF. (415) 646-0999, www.theendup.com *

Lennar spending records sums on Prop. G

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Tonight’s election results will demonstrate how much money matters in local politics, and whether megadeveloper Lennar is able to essentially buy exclusive development rights for southeast San Francisco. That’s because the $3.9 million and counting that Lennar has spent to approve Prop. G and kill Prop. F could be the most expensive local measure campaign in California history, according to former Common Cause of SF head Charles Marsteller.
To confirm that, I called Bob Stern at the Center for Governmental Studies — the guru of California electoral reform — who had a more qualified answer. Campaign finance records show PG&E spent almost $10 million last year to defeat a package of four public power measures in Yolo and Sacramento counties. PG&E also spent more than $3 million to defeat the Prop. D, the 2002 public power measure in San Francisco. And Stern was trying to get final figures for an expensive 2006 ballot fight in Sacramento over a new stadium. Yet he said Lennar is way up there, well beyond anything he’s seen in his native Southern California.
“It is clearly one of the most expensive,” Stern said. “It’s an enormous amount of money for a local race.”

Mayor uses Shipyard to announce budget, Monday

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It’s 4 PM on a Friday afternoon, that hour when most employees are counting the seconds to the weekend—and wishing that Monday morning wasn’t only 65 hours away.

But does the Mayor’s Office know what time it is?

And if so, why have we only just found out that Mayor Gavin Newsom is planning to make his Monday morning budget announcement, at 10: 30 am, June 2, at the Hunters Point Shipyard?

The announcement will be made at
View Larger Map“>606 Hunter’s Point Shipyard.
(Unless, Newsom is planning a repeat of his disappearing Olympic Torch stunt.)

The location happens to be the San Francisco Police Department’s Tactical Operations center. Press are being asked to present press credentials for entry.

Could it be that this announcement is being made at the very last minute because the choice of location gives Newsom the appearance of impropriety? Newsom backing Prop.G on the June 3 ballot, the measure that developer Lennar has spent over $3.5 million in an effort to grab even more of San Francisco’s waterfront real estate, adding highly desirable land at Candlestick Point to the shipyard’s wastelands, so it can develop even more luxury condos?

Or could it be because he didn’t want to tip of supporters of Prop. F, the competing measure on the June 3 ballot that requires that 50 percent of development in the Bayview is affordable to people who actually live there—households that tend to make $68,000 and under and can’t afford to buy $500,000 condos and million-dollar townhouses?

Whatever the reasons, the running dogs of the press weren’t the only ones left in the dark about the budget locale.

No one on the Board of Supervisors was informed until 4PM, Friday afternoon, either. That’s when a mayoral aide came by the office of Sup. Ross Mirkarimi, who sits on the Board’s Budget and Finance Committee, to deliver the news of this hitherto top secret location.

Normally, Board members get an invitation at least 10-14 days beforehand.

Mirkarimi calls the move “highly unorthodox and outrageous.”

“What’s really unforgivable is that we are facing the worst budget deficit in San Francisco’s history,” Mirkarimi said. “The Mayor needs to be fostering collaboration, and enlisting the support of everyone he can, especially those who have influence on the budget process. It’s unfortunate that the casualty in all this is our desire to work together.”

Matt Smith loves prop. 98

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I almost don’t know what to say about Matt Smith’s SF Weekly piece in favor of Prop. 98. I know Smith gets a little unhinged when it comes to housing issues, but his faith in the free market to lower the price of housing in San Francisco – against all odds and all evidence – is just looney.

He starts off with the typical landlord/libertarian argument against rent control, which is that it screws up the marketplace:

Tens of thousands of other apartments are kept off the market through “hoarding,” as individual tenants remain in cheap and cavernous three-bedrooms, hang on to their old $200-a-month apartments long after they’ve moved in with a spouse, or are otherwise motivated to cling to their leases.

Except that Prop. 98 would allow existing tenants to stay in existing rent-controlled apartments, which lose rent control forever when they’re vacated. So the rent-controlled units would be even more valuable, and the incentive to “hoard” even greater. As would be the incentive for landlords to evict long-term tenants.

But wait, there’s more:

Studies also show that rent control discourages construction of new rental apartments New housing construction fell by one third in the seven years after San Francisco’s rent control law passed in 1979. During the 1990s, meanwhile, the number of rental units actually decreased by 7,500.

Ah, but all newly constructed units are exempt from rent control anyway. So something else must be going on here. Perhaps the number of rental units decreased because developers, who care nothing for the city’s housing needs, realized there’s more money to be made selling condos. It’s the same reasons Lennar Corp. broke its promise to build rental housing in Hunters Point: There’s more money in selling units right now than in renting them.

And, of course, we’re losing rental housing – not to rent control but to condo conversions, another way property owners can make money.

Smith seems to think that without rent control

“it’s reasonable to surmise … that downtown apartment construction would accelerate. Rents would stabilize or decline. …. Businesses would flock to San Francisco, which would have ample new office space and more, cheaper homes for their employees.”

Sounds idyllic, if you want to live in Manhattan, which I don’t.

In fact, Matt Smith’s vision of a “great city” is by nature one that’s constantly growing and ever-more dense. He berates the urban environmentalists:

San Franciscans replaced what had been a metropolitan vision of the future with one best described as suburban. Rather than being a great city, it would instead be a tranquil place to live.

Matt, you have no sense of history. After World War II, the captains of industry who had completely taken over planning and development policy, in the military model of command and control, to make the West Coast war machine work, decided they liked that way of doing business. So a handful of them sat down and planned the future of the Bay Area. Low-cost South of Market housing would be demolished to make way for hotels and a convention center. Following the suburban model, BART would connect outlying bedroom communities with a dense downtown office core. High-rise buildings would hold the economic center of the Pacific Rim. A network of freeways would cross the city in a Los Angeles-style grid.

That’s what the master planners who Smith lauds had in mind. And the people who lived here decided that it wasn’t fair that nobody asked them about it. So they fought back, cutting off the freeways, down-zoning neighborhoods, fighting over-development (which, by the way, hurts city coffers more than it helps) and trying to keep this a decent place to live.

Rapid growth is not always good, not always desirable. Cities are places where people live, and keeping them livable is a noble pursuit.

And when it comes to housing in a city like San Francisco, the market will never, ever solve the problem. I’ve written about this over and over, but here’s the latest.

Regulation – treating housing not just like a fungible commodity but like a necessity of life that the market can’t fairly provide – is the only way to keep San Francisco affordable.

Nuclear fusings

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› a&eletters@sfbg.com

Jazz has always been about fusing rather than fusion. But there’s a new generation of improvisational players from around the world who are effortlessly blending wide-ranging cultural and generational ideas in their music. These artists are equally conversant in Ben Webster, Kanye West, and Fela Kuti. They might cover Coltrane and Radiohead, but using contemporary Western instruments. It’s jazz with a global scope, modern sensibility, and an intimate, personal feel.

One musician who is naturally engaging a world of influences in his music is Puerto Rico–born saxophonist David Sanchez. When he brings his new sextet to the Herbst Theatre June 13 to debut music from his just-released album, Cultural Survival (Concord), Sanchez will cap an expansive run of so-called multilingual jazz artists coming through the Bay Area. Preceding Sanchez at venues across the region are saxophonist Charles Lloyd, pianist Marc Cary, bassist Esperanza Spalding, and pianist Edward Simon, who are all bringing variations on the theme of modern jazz as a genre informed by worldwide cultures.

It all starts next week with SFJAZZ’s "Miles from India" concert at the Palace of Fine Arts, a live presentation of the recent Four Quarters album of the same name. Producer Bob Belden and Indian keyboardist and co-arranger Louiz Banks reworked the music of Miles Davis and recorded it with such Davis alumni as bassists Ron Carter, Michael Henderson, and Marcus Miller; keyboardists Chick Corea, Adam Holzman, and Robert Irving III; drummers Jimmy Cobb and Lenny White; and such Indian musicians as Ravi Chari on sitar, Vikku Vinayakram on ghatam, and V. Selvaganesh on khanjira. The composer himself used sitar and tabla on numerous sessions throughout the 1970s, when he began making funkier and more layered, open-ended music.

Davis and numerous jazz musicians before him — from Duke Ellington and Yusef Lateef to Randy Weston and John Handy — integrated musical elements from non-Western cultures into their work. So it’s not surprising that a younger player like Sanchez, who is equally at home improvising with Latin jazz piano legend Eddie Palmieri as he is touring with guitarist Pat Metheny, would meld ethnic nuances of his Caribbean heritage with a postmodern jazz sensibility.

SONG CYCLES


Sanchez’s Cultural Survival is a cycle of seven original songs and one Thelonious Monk ballad. The disc culminates in the 20-minute "La Leyenda del Canaveral," inspired by a poem written by Sanchez’s sister Margarita about African and Caribbean sugar cane plantation workers. It’s a relatively new and spare, though lyrically rhythmic, sound for Sanchez, forged during a three-year immersion in African folkloric recordings from Tanzania, Cameroon, and the Congo, and his impromptu tour with Metheny. "Doing the tour with Pat was really a confirmation for me that there are different sounds out there," Sanchez said from his Atlanta home. The saxophonist has mainly played with a pianist but now works with guitarist Lage Lund in his band.

"In some ways there is more space for me there," he added.

Also exploring new concepts is veteran saxophonist Lloyd, who performs at the Healdsburg Jazz Festival May 31 with his Indian-music–inspired Sangam Trio, which includes percussionist Zakir Hussain and drummer Eric Harland. The band uses its ethnic edges as stepping stones. "It’s really what propels the music," Harland said of the intuitively improvisational trio during an SFJAZZ rehearsal in the city.

Venezuelan pianist Edward Simon also mixes new and old approaches: he studied classical piano at the University of the Arts in Philadelphia and jazz at the Manhattan School of Music before joining trumpeter Terence Blanchard’s band. His new Ensemble Venezuela, which plays the Herbst Theatre June 8, is a sterling gathering of major young players including Mark Turner on saxophone, Marco Granados on flute, Aquiles Báez on cuatro, Ben Street on bass, and Adam Cruz on drums. Báez will also perform with his own band while the local VNote Ensemble (formerly the Snake Trio) offers its take on jazz and Venezuelan traditional sounds.

FRESH FLAVORS


Such explorations vary conventional presentations and inject unexpected aural flavors. "Jazz is one of the most immediately gratifying art forms there is because it’s spontaneous development," pianist Marc Cary explained from New York. "It documents a moment, and that’s the moment you want people to hear."

Cary’s Focus Trio performs in Healdsburg June 5. His partners onstage are Bay Area musicians Sameer Gupta on drums and tablas and David Ewell on bass. "Sameer is from India and David is from China," said Cary. "I didn’t pick them because of that. I play with them because they’re good, but they’re bringing that too." On his 2006 album Focus (Motema), Cary wanted to get out of the standard chorus-solo-chorus cycle that has sometimes straitjacketed jazz. "I like continuous movement, a straight line, and I like to color that line," Cary mused. Gupta cowrote one song with Cary and contributed the reflective ballad "Taiwa," and his tablas close out the last three Cary originals with a distinctive flourish.

Cary played behind the übervocalist and band leader Betty Carter and has toured with hip-hop vocalist Erykah Badu, whose influences find their way into his work. "If you’re really going to play this music in today’s times, you have to bring in elements of the past, the present, and what you consider to be the future," Cary said.

That future is now with 23-year-old bassist Esperanza Spalding. The Portland, Ore., native, who graduated from and now teaches at the Berklee College of Music in Boston, recorded her 2006 full-length Junjo (Ayva) with two Cuba-born colleagues from the school: pianist Aruán Ortiz and drummer Francisco Mela. Their rhythmic approaches subtly imbue the recording’s sound as Spalding sings wordless, hornlike runs in a bright, fluttery alto. Her latest album, Esperanza (Heads Up), includes flamenco guitar virtuoso Niño Josele, drummer Horacio "El Negro" Hernández, and saxophonist Donald Harrison. She brings her new band to Yoshi’s in Oakland June 12.

Why have all these players connected with sounds so far afield? The world has not gotten smaller — it’s just better connected. Through technology even the most obscure genres find new and far-flung listeners. The communal spirit informing jazz performance and appreciation also transcends differences: jazz musicians have to be open; otherwise they can’t play the music. "At the end of the day, jazz is about how you relate to things happening at the moment," Sanchez said. He heard a reality in the African tribal drumming music he listened to and wanted to bring it to his own playing. "You have this feeling when you hear it that the music is like water or air for them."

"MILES FROM INDIA"

Sat/31, 8 p.m., $25–$56

Palace of Fine Arts Theatre

3301 Lyon, SF

www.sfjazz.org

CHARLES LLOYD QUARTET AND LLOYD’S SANGAM TRIO

Sat/31, 7:30 p.m., $45–<\d>$70

Jackson Theater

Sonoma Country Day School, Santa Rosa

www.healdsburgjazzfestival.org

MARC CARY’S FOCUS TRIO

June 5, 7 and 9 p.m., $26

Barndiva

231 Center, Healdsburg

www.healdsburgjazzfestival.org

EDWARD SIMON AND THE ENSEMBLE VENEZUELA

With Aquiles Báez Ensemble and VNote Ensemble

June 8, 7 p.m., $25–$56

Herbst Theatre

401 Van Ness, SF

www.sfjazz.org

ESPERANZA SPALDING

June 12, 8 and 10 p.m., $10–$16

Yoshi’s

510 Embarcadero West, Oakl

www.yoshis.com

DAVID SANCHEZ SEXTET

June 13, 8 p.m., $25–$56

Herbst Theatre

401 Van Ness, SF

www.sfjazz.org

Assessing the deal

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› sarah@sfbg.com

Mayor Gavin Newsom stood with San Francisco Labor Council executive director Tim Paulson, flanked by Sup. Sophie Maxwell and representatives from megadeveloper Lennar, the San Francisco Organizing Project, and the Association for Community Organizations for Reform Now (ACORN) May 20 to announce "a historic community benefits agreement."

Lennar had been persuaded to promise more affordable housing and other giveaways in order to win some important new endorsements in their troubled bid to take control of Candlestick and Hunter’s points and cover them with about 10,000 new homes.

"This is a very big deal," Newsom said, plugging the Lennar-financed Prop. G and bashing Sup. Chris Daly for his leadership of the campaign to qualify Prop. F, which would require that half the new units be affordable to households making less than $75,000, a requirement that Lennar casts as a deal breaker.

"Prop. F is a pipe dream that guarantees you only one thing: what you already have," Newsom said. "We have to get the message out what a Trojan horse Prop. F is." Lennar’s top local executive, Kofi Bonner, added that the agreement "enables us to go forward, because now we have new allies."

The Labor Council’s ability to invigorate a campaign makes it an important ally. Yet Lennar’s giveaway of more than it had previously promised and the fact that the agreement comes just two weeks before the June 3 vote seem to indicate that the Prop. G supporters have grown desperate.

Lennar already has spent $3.26 million to promote Prop. G and oppose Prop. F, only to find polls showing Prop. F well ahead despite a campaign that has raised less than $10,000. The weak poll numbers clearly convinced Lennar and its backers in the political power structure that voters would be more likely to support Prop. G if Lennar came up with something that seemed legally binding.

But by supporting a deal that appears to pin down Lennar on levels of housing affordability and community investment, Newsom ironically seems to be validating the concern of Daly and Prop. F’s other backers that Prop. G lacks guarantees on these fronts (see "Promises and reality," 04/23/08).

Not even Newsom could deny that Prop. F’s presence on the political landscape pushed Lennar to seek a community benefits agreement with the Labor Council and ACORN, a group that had been a solid part of Daly’s affordable-housing constituency.

"It probably has," Newsom told the Guardian. "That said, I don’t think Prop. F should suggest the deal is better because of them. Perhaps it’s worse."

Daly dismissed Newsom’s attacks as more attempts to hurt Prop. F’s popularity by trying to attach it to Daly’s personal negatives. Daly also attacked the agreement as overstated in its promises and impossible to enforce.

"I really don’t know if there is any net gain from one deal to the next," Daly said. "And how is it enforceable? We’re not sure anything legally binding is on table now. If there was a development agreement then obviously we would have some surety, as we would if we had a development plan that had cleared the approval process — Lennar’s financial vulnerabilities notwithstanding."

Noting that the city has had "bad luck with big order projects before," Daly recalls how Lennar reneged on building rental units at the Shipyard’s Parcel A, where the developer also failed to properly monitor and control asbestos dust despite promising to do so.

The agreement, which doesn’t include the city or any government agency as a party, is certainly unconventional. But is the deal legally binding? And just who benefits from it?

The CBA purportedly commits Lennar to create 31.86 percent "affordable" housing units in the Bayview, contribute $27 million to provide affordable homes throughout District 10, rebuild the Alice Griffith public housing project, and give down payment and first-time homebuyer assistance on another 3 percent of the homes.

All told, Paulson claims the deal locks in an unprecedented 35 percent affordable housing into Lennar’s mixed-use proposal for the Bayview. The deal also obligates Lennar to invest $8.5 million in workforce development in District 10, hire locally, pay living wages, and allow worker organizing with a card check neutrality policy.

"This legally binding agreement is a way we can insure that our community gets the benefits it needs," said SFOP co-president and longtime Bayview resident Eleanor Williams.

Paulson said May 22 the deal is still being "lawyered up" to ensure its enforceability, and ACORN’s John Eller insists the deal was done with community input. "We have had numerous meetings in which the community was demanding accountability and clear commitments to the workforce and housing, including the possibility of home ownership," Eller told the Guardian.

But Julian Gross, director of the San Francisco–based Community Benefits Law Center, clarifies that the deal only becomes legally binding if Lennar builds a mixed-use project in Bayview/Candlestick Point. "A community benefits agreement gives people a way to work in a coalition," said Gross, who helped negotiate CBAs at Oakland’s Uptown and Oak to Ninth projects, and at Lennar’s development in San Diego’s Ballpark Village in 2005.

Michael Cohen, director of the Mayor’s Office of Economic Workforce and Development, said the city hopes to enter into its own legally binding agreement with Lennar over a mixed-use project by the end of 2009, once environmental reviews on the project are completed.

Given that the project is expected to take 12–15 years to complete, could Lennar change the CBA’s terms after it starts to develop the Bayview? Yes, says Donald Cohen of the San Diego–based Center for Public Policy Initiatives, but only if both sides agree to any changes.

"In a private deal between private parties, those parties can agree to change the terms of the deal at any time," Cohen explained.

That’s significant given the divisions over development within the Labor Council. As Paulson confirmed, the building-trade unions were pushing for outright endorsement of Prop. G and opposition to Prop. F, but he successfully pushed for the negotiations with Lennar, which lasted more than eight weeks and almost broke down several times, Paulson told us.

"I told them, I don’t think that’s where we are coming from because Prop. G doesn’t contain guarantees on affordable housing or jobs," Paulson said of his initial response to Prop. G supporters.

The agreement appears to stretch the definition of "affordable housing," reaching up to those earning 160 percent of area median income, which is essentially market-rate housing for the low-income southeast sector.

Prop. F supporter Alicia Schwartz of People Organized to Win Employment Rights said that what labor’s deal with Lennar means is that only 15.6 percent of the housing will truly be affordable to the folks who currently live in the Bayview. While "3,500 units sounds good," Schwartz observed, "Only 50 percent of them will be for families making 60 percent and less of area median income, while the other 50 percent are for 80 to 160 percent AMI. That means $500,000 condos, which 70 percent of the Bayview can’t afford."

Yet Cohen said it’s understandable that the Labor Council crafted a deal that caters to those with above-average incomes.

"Affordable-housing policies over the last 10 years have tended not to address the needs of many of their members," Cohen said. "Many families make more than $64,000, so they can’t qualify for affordable housing, but don’t make enough to buy. This provides a fantastic and large-scale opportunity to address the problem of the squeezing of the middle class in San Francisco."

Public records obtained from the Mayor’s Office show that prior to this latest deal, Lennar planned to build up to 75 percent market-rate housing at the site, including hundreds of million-dollar townhouses, thousands of high-rise units at $787,483, mid-rise units at $734,400, townhouses at $651,366, and low-rise units at $592,797.

But under the CBA, the top tier of condos that Lennar deems "affordable" cost about the same as the cheapest market rate units it had already planned to build, leaving only 1,566 rental units at rates truly affordable to San Francisco’s low-income workers.

Paulson believes the resulting agreement "ensures that residents, workers, tenants, and future homebuyers have a path to new jobs and housing." He also claims that it is tied to the land, "meaning that it would be transferable to other developers if Lennar pulls out."

Joseph Smooke, executive director of the Bernal Heights Neighborhood Center, said he believes the jobs agreements labor negotiated are good. "It’s the housing stuff where they gave away the store," Smooke said. "Why didn’t they stick to the jobs piece and support Prop. F?"

Pointing to the Board of Supervisors’ passage of policy saying that 64 percent of housing in eastern neighborhoods should be targeted at 80 percent of AMI and below, Smooke added, "There are ways to make 50 percent affordable work. This is free land. It’s not rocket science. But is it city policy to protect a developer’s stated desire for 18 to 22 percent profit?"

Meanwhile, Schwartz hopes SFOP and ACORN are being accountable to their base of low-income workers. "Lennar would like to tell you that if Prop. G doesn’t pass, nothing happens. But in reality, the community’s plan stays, plus now there is a 50 percent affordable-housing requirement," Schwartz said. "That’s a win-win."

"For Newsom and Lennar to say that Prop. F is a poison pill — the irony is not lost on the Bayview," Schwartz added, recalling the city’s failure to hold Lennar accountable for its promises and misdeeds. "We’re looking to change the way business is done in San Francisco." *

Hold out for Hunters Point

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EDITORIAL In the late 1980s, Mayor Art Agnos put forward a plan for development at Mission Bay, which at that point was an underused plot of land that used to be a Southern Pacific railroad yard. He negotiated with the developer, Catellus Corp., and cut what he insisted was the best deal the city could possibly get. He insisted that any more demands — for, say, increased affordable housing — would have so damaged the project’s finances that nothing would ever be built.

Development opponents took the issue to the voters — and the mayor’s plan lost. Catellus promptly came back with a much sweeter deal.

It’s worth remembering that lesson, because next week voters will be faced with a stark choice for a massive Hunters Point–Bayview redevelopment plan. Mayor Gavin Newsom and his allies say the city has squeezed major concessions from the developer, Lennar Corp. The San Francisco Labor Council and two community groups have forced Lennar to sweeten the pot even more (see "Assessing the deal," page 11). At this point, the city’s supposed to have the best deal it can possibly get.

But with all due respect to the Labor Council, Association of Community Organizations for Reform Now (ACORN), and the San Francisco Organizing Project, it’s not good enough.

The battle — which is shaping up as a very close contest — involves dueling ballot measures Propositions G and F. Prop. G is the deal Newsom and Lennar are pushing; it would give the financially troubled developer the right to build 10,000 new housing units, office and retail space, and a new football stadium, along with 300 new acres of parks, in one of the city’s most economically depressed areas. Some of the new housing would be available at below-market rates. Prop. F raises the ante a big notch: it would require that half of all Lennar’s housing be available to people making less than the median area income, which is $75,000 for a family of four.

For the record, it’s worth noting that the new concessions labor got would never have happened if Sup. Chris Daly and a group of Bayview–Hunters Point activists hadn’t placed Prop. F on the ballot. In fact, organized labor wasn’t terribly involved in the redevelopment project until a couple of months ago. That’s when Lennar’s team of political consultants realized that they might be facing a shellacking at the ballot June 3.

The polls show that Prop. F is very popular — and for good reason. It’s a simple proposal that makes excellent intuitive and practical sense. As housing activist Calvin Welch likes to say, San Francisco doesn’t have a housing crisis — the city has an affordable-housing crisis. Multimillionaires don’t have trouble finding places to live. And unfortunately, much of the new housing being built in this city is targeted to the very rich: typical market-rate one-bedroom condos start at around $500,000 and soar quickly into the millions. The rest of the city is getting forced out, and the dramatic, profound gentrification is transforming San Francisco.

Even the city planning department recognizes what’s going on: the Housing Element of the city’s General Plan states that 64 percent — nearly two-thirds — of all new housing ought to be affordable.

But the vast majority of the residents of Bayview–Hunters Point could never afford the vast majority of the new housing units Lennar wants to build. Prop. F seeks to address the deep imbalance in the proposed housing mix.

Lennar is squealing, saying it can’t possibly make the project pencil out with that much affordable housing. The company’s political team pushed the Labor Council to side with them, and in exchange for endorsing G and opposing F, labor got some worthy goodies. The level of what Lennar calls affordable housing is now higher than 30 percent — but when you actually look at those numbers, only about half of the 30 percent is truly affordable to the neighborhood residents who face being forced out of town. There’s also a new job training program and a mandate that new businesses allow their staff to unionize through a simple card-check process (although the city would almost certainly mandate that anyway).

But the bottom line is that the deal labor cut doesn’t meet what ought to be the standard for all new housing in San Francisco. Even after all the concessions, roughly 70 percent of the new units will be available only to rich people. That’s not acceptable in a city that is rapidly losing its artists, writers, musicians, immigrants, students … just about everyone who makes San Francisco such an exciting place to live is now an endangered species. And labor’s deal fundamentally does nothing to change that.

Vote yes on F and no on G. And if Lennar won’t build enough affordable housing, let’s scrap this deal and find someone who will. *

The Internet dystopia

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› annalee@techsploitation.com

TECHSPLOITATION A couple of weeks ago I went to the annual Maker Faire in San Mateo, an event where people from all over the world gather for a giant DIY technology show-and-tell extravaganza. There are robots, kinetic sculptures, rockets, remote-controlled battleship contests, music-controlled light shows, home electronics kits, ill-advised science experiments (like the Mentos–Diet Coke explosions), and even a barn full of people who make their own clothing, pillows, bags, and more. Basically, it’s a weekend celebration of how human freedom combined with technology creates a pleasing but cacophonous symphony of coolness.

And yet the Maker Faire takes place against a backdrop of increasing constraints on our freedom to innovate with technology, as Oxford University researcher Jonathan Zittrain points out in his latest book, The Future of the Internet and How to Stop It (Yale University Press). After spending several years investigating the social and political rules that govern the Internet — and spearheading the Net censorship tracking project OpenNet Initiative — Zittrain looks back on the Net’s development and predicts a dystopian future. What’s chilling is that his dystopia is already coming to pass.

Zittrain traces the Net’s history through three phases. Initially it was composed of what he calls "sterile" technologies: vast mainframes owned by IBM, which companies could rent time on. What made those technologies sterile is that nobody could experiment with them (except IBM), and therefore innovation related to them stagnated.

That’s why the invention of the desktop PC and popularization of the Internet ushered in an era of unprecedented high-tech innovation. Zittrain calls these open-ended technologies "generative." Anybody can build other technologies that work with them. So, for example, people built Skype and the World Wide Web, both software technologies that sit on top of the basic network software infrastructure of the Internet. Similarly, anybody can build a program that runs on Windows.

But Zittrain thinks we’re seeing the end of the freewheeling Internet and PC era. He calls the technologies of today "tethered" technologies. Tethered technologies are items like iPhones or many brands of DVR — they’re sterile to their owners, who aren’t allowed to build software that runs on them. But they’re generative to the companies that make them, in the sense that Comcast can update your DVR remotely, or Apple can brick your iPhone remotely if you try to do something naughty to it (like run your own software program on it).

In some ways, tethered technologies are worse than plain old sterile technologies. They allow for abuses undreamed of in the IBM mainframe era. For example, iPhone tethering could lead to law enforcement going to Apple and saying, "Please activate the microphone on this iPhone that we know is being carried by a suspect." The device turns into an instant bug, without all the fuss of following the suspect around or installing surveillance crap in her apartment. This isn’t idle speculation, by the way. OnStar, the manufacturer of a car emergency system, was asked by law enforcement to activate the mics in certain cars using its system. It refused and went to court.

Zittrain’s solution to the tethering problem is to encourage the existence of communities like the ones who participate in Maker Faire or who edit Wikipedia. These are people who work together to create open, untethered technologies and information repositories. They are the force that pushes back against companies that want to sterilize the Internet and turn it back into something that spits information at you, television-style. I think this is a good start, but there are a lot of problems with depending on communities of DIY enthusiasts to fix a system created by corporate juggernauts. As I mentioned in my column ("User-Generated Censorship," 4/30/08), you can’t always depend on communities of users to do the right thing. In addition, companies can create an incredibly oppressive tethering regime while still allowing users to think they have control. Tune in next week, and I’ll tell you how Zittrain’s solution might lead to an even more dystopian future.

Annalee Newitz is a surly media nerd who thinks up dystopias in her spare time.

Renters fight back

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› gwschulz@sfbg.com

A stream of perturbed tenants living in buildings owned by one of the city’s largest landlords, CitiApartments, Inc., converged on City Hall May 12 to testify that in recent years the company has engaged in an alleged campaign of intimidation and harassment against residents living in rent-controlled units.

Attendees, many wearing stickers that read "Tenants standing together for fair treatment," quickly filled to capacity a committee room used by the Board of Supervisors before the overflow was moved to two other large rooms where televisions airing the meeting were situated.

CitiApartments turned out its own army of supporters in an attempt to offset the impression that it’s unpopular among renters in the city. Dozens of people who claimed to back the company’s business practices attended the meeting wearing shirts that stated, "I support CitiApartments."

But a volunteer with the Queer Youth Organizing Project and organizer against CitiApartments complained to the supervisors that the crowd of supporters had either been paid to attend the meeting or were employees of the company. Few CitiApartments supporters filled out comment cards or spoke publicly in defense of the company.

Some CitiApartments tenants said they endured months of lingering construction work that filled their buildings with debris and garbage after CitiApartments bought its buildings, the upheaval intentionally designed to drive them out in frustration and thus give up their stabilized rent rates.

Others said vulnerable tenants like undocumented immigrants and seniors were specially targeted with intimidation tactics by a private security group working for CitiApartments that appeared at their doors asking for personal information. Utilities were frequently shut off, tenants said, or elevators relied upon by the physically disabled were left inoperable for long periods of time, all part of a campaign to scare them away from their apartments.

"This is not simply about a bad landlord," tenant Debbie Nuñez, who lives in a Lower Nob Hill building purchased by CitiApartments in 2000, told the supervisors. "This is about a well-oiled machine."

Sup. Chris Daly sponsored the hearing by the board’s Land Use and Economic Development Committee to receive an update on the city attorney’s lawsuit against CitiApartments, a.k.a. Skyline Realty. He also wanted to discuss the company’s swift rate of property acquisitions in San Francisco and to hear testimony about mounting alleged building code violations at some of its buildings.

City Attorney Dennis Herrera sued the company and several of its subsidiaries in August 2006 alleging an "egregious pattern of unlawful and unfair business practices," and a "shocking panoply of corporate lawlessness, intimidation tactics, and retaliation against residents."

Five months prior, the Guardian published a three-part series of stories documenting claims by current and former CitiApartments tenants that they had been the victims of persistent, aggressive attempts to oust them from rent-controlled housing units. If such tenants vacate the apartments for whatever reason, CitiApartments can raise the rent on those units dramatically.

A recent report by the Legislative Analyst’s Office shows CitiApartments today owns nearly 300 properties here, which combined hold from 6,300 to 7,500 units and about 12,000 tenants.

Sup. Aaron Peskin, who sits on the committee with Sups. Gerardo Sandoval and Sophie Maxwell, said at the meeting that his office receives a complaint once a week or at least every 10 days about CitiApartments, a figure that has increased over the last three years.

"I don’t recall ever hearing complaints about Trinity Properties in the city," Peskin said. "They own 6,000 units."

Daly pointed to a May 9 New York Times article that reported on the rising phenomenon of "predatory equity," in which private investment funds bankroll the acquisition of a large number of rent-controlled apartments in New York anticipating higher-than-usual vacancy rates. But tenant advocates say achieving such rates requires a concerted effort, either through offering one-time buyouts, finding nuances in the law that allow for an eviction, or harassing tenants until they grow exasperated and leave.

The significantly higher revenue generated from market-rate rental prices then enable building buyers there to repay the equity firms that gave them the huge loans to buy the properties in the first place. Daly wants to find out if CitiApartments is deploying a similar "business model" in San Francisco.

According to the Times piece, developers backed by private equity firms have purchased nearly 75,000 rent-controlled units over the last four years in New York. One company that bought a group of buildings in Queens subsequently filed around 1,000 cases against tenants in housing court during an 18-month period.

A lawyer for CitiApartments, Tara Condon, promised the committee members that the company would investigate the complaints made by tenants at the May 12 meeting. She added that the company increases tax revenue for the city when it improves the conditions and appearances of buildings it purchases. She also declared that the company makes local charitable contributions and has reached out to financially troubled tenants.

"We are a business, but we try to work with [the tenants,]" Condon said. "We want to make sure they can stay in their apartments."

One former tenant, Donna O’Brien, testified that CitiApartments helped her and her husband find a more affordable apartment after the company bought a previous building she lived in at 516 Ellis St. last year. She said CitiApartments also paid for her moving expenses. "Quite honestly, CitiApartments has been very good to us."

PG&E offers Newsom a blank check

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newsom.jpg pg&e.jpg

Gavin Newsom is a mayor who hates to make the tough decisions, and the proposal for three new power plants in Southeast San Francisco is his worst nightmare.

Newsom’s own Public Utilities Commission is pushing the plan, and he’s backed it in the past. Environmentalists are making a stink about it, and that’s caused the mayor-who-wuold-be-green some headaches.

But the major reason he suddenly decided to ask for a delay in the power-plant vote may have nothing to do with environmental issues at all.

Seven lobbyists for Pacific Gas and Electric, led by Travis Kiyota, visited the mayor May 5th and told him that the giant utility would spend whatever it takes to stop the peakers, a reliable City Hall source tells me. Attending the meeting were Sup. Michela Alioto-Pier and PUC commissioner Dick Sklar, the source said.

According to this source’s account, PG&E offered to pay for more power cables into the city, for an expensive demand-management program … for just about anything that would prevent San Francisco from owning its own power plants.

I couldn’t reach either Sklar or Alioto-Pier this afternoon. But Nathan Ballard, the mayor’s press secretary, confirmed that the meeting took place:

On Monday, May 5, PG&E participated in a meeting to provide substantive
expertise in the areas of energy efficiency, demand response and power
generation and transmission. Along with staff from the Mayor’s Office,
Board of Supervisors, San Francisco Public Utilities Commission, Department
of Environment, the Office of Economic and Workforce Development, CA Public
Utilities Commission (CAPUC), and the National Resources Defense Council
(NRDC), we were able to engage some of the most creative and knowledgeable
experts in the room together as we work to identify alternatives to the
current action plan.

Ballard also said that retrofitting the Mirant plant — leaving the big privately owned polluter in place — was “one of the options on the table.”

As far as I can tell, there were no public-power advocates in the meeting.

So PG&E is still driving energy policy in the Mayor’s Office. How nice.