Ed Lee

“Street Fight” examines the politics of mobility in San Francisco

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Ideology plays a bigger role in shaping San Francisco than most people realize, as we’ve discussed in this space before. Nowhere is that more true than in the politics of land use and transportation, as my friend Jason Henderson, a San Francisco State University geography professor, discusses in his insightful new book, Street Fight: The Politics of Mobility in San Francisco.

He’ll be discussing his work this Friday, April 19, from 7-9pm during a book launch party hosted by Green Arcade Bookstore across the street at the upstairs loft space of McRoskey Mattress, 1687 Market. Or if you miss that but want to join the discussion, you can catch Henderson’s forum on May 15 at SFSU or what will surely be other local events on this pivotal topic.

Henderson chronicles the seminal events in San Francisco’s history with “automobility” and related transportation issues, from the freeway revolts of the late ’50s through 2000 to today’s continuing political struggles over parking, bicycles, livability, gentrification, and the form, function, and financing of Muni.

Yet the lens that Henderson brings to understanding all of these issues and struggles is ideology, which he breaks down into three major categories: progressive, neoliberal, and conservative. Whether we realize it or not, we can all be fairly easily placed in one of those three categories when it comes to how we think about automobility, or the primacy of cars in modern life.

“A progressive framework conceptualizes mobility as a systemic problem that requires deep social commitment and responsibility. How we get there matters. It posits that there can be too much mobility, as exemplified by high levels of [Vehicle Miles Traveled] in the United States, and that excessive mobility results in both environmental degradation and major social inequality at a local, state, and global scale. The main problem, obviously, is that automobility is part of a wider, systemic moral and social problem of over-consumption and disproportionate materialism,” Henderson writes, sounding themes that I echoed in this week’s cover story.

On the other end of the ideological spectrum are those with conservative views on mobility, who see driving as a basic right, which is the dominant mindset on the west side of supposedly liberal San Francisco. “Unlike progressives, conservatives do not think about responsibility as relating to broader systems such as the economic structure of society. Instead, they think in terms of direct causation and of each individual being responsible for the consequences of his or her actions. For example, poverty is a result of individual shortcomings caused by personal and moral characteristics, not of structural themes like socioeconomic forces beyond an individual’s control. Getting to work on time and providing one’s daily needs are not collective concerns but the responsibility of the individual,” he writes.

Of course, these conservatives still rely on government to build and maintain their transportation infrastructure, which they believe should be centered around cars. “Government should guarantee and accommodate automobility, not seek to discourage it or make it more expensive. Government-sponsored road building and other explicit policies that encourage motoring reflect an optimal use of government to stabilize conservative social relations centered on automobility,” Henderson write of the conservative mindset.

Between those two poles are the neoliberals, who have come to dominate City Hall, particularly in the last few years with the ascendancy of Mayor Ed Lee, Board President David Chiu, and Sup. Scott Wiener, who has taken the lead role on transportation issues. Neoliberals rely on market-based solutions to almost any problem, and they end up partnering with either conservatives or progressives in the politics of mobility depending on the issue.

“Neoliberals, consistent with the broader agenda of the privatization of space and market-based pricing of public access to space, envision a mobility system shaped by pricing and markets rather than by regulation and collective action. Unlike progressives, neoliberals feel the built environment must be allowed to develop with the efficacy of the market. Movement, paid for by the individual user, should be unrestrained. Yet such efficacy can include a commodification of nonmovement or slower movement or the package of quality-of-life goods surrounding the ‘walkability’ and ‘livability’ of the city, a package reserved for those who can afford to enter. To that end, neoliberal mobility includes the aggressive use of government to both enhance mobility and rein it in, but only inasmuch as government policy helps realize the goals of profit and facilitating economic growth and development,” Henderson writes.

It’s fascinating to explore how these three distinct mindsets have shaped San Francisco in recent decades, and how they interact today to create the city that we’ll be moving through in the future.

Indicator city

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steve@sfbg.com

When biologists talk about the health of a fragile ecosystem, they often speak of an “indicator species.” That’s a critter — a fish, say, or a frog — whose health, or lack thereof, is a signal of the overall health of the system. These days, when environmentalists who think about politics as well as science look at San Francisco, they see an indicator city.

This progressive-minded place of great wealth, knowledge, and technological innovation — surrounded on three sides by steadily rising tides — could signal whether cities in the post-industrial world will meet the challenge of climate change and related problems, from loss of biodiversity to the need for sustainable energy sources.

A decade ago, San Francisco pioneered innovative waste reduction programs and set aggressive goals for reducing its planet-cooking carbon emissions. At that point, the city seemed prepared to make sacrifices and provide leadership in pursuit of sustainability.

Things changed dramatically when the recession hit and Mayor Ed Lee took office with the promise to focus almost exclusively on economic development and job creation. Today, even with the technology and office development sectors booming and employment rates among the lowest in California, the city hasn’t returned its focus to the environment.

In fact, with ambitious new efforts to intensify development along the waterfront and only lackluster support for the city’s plan to build renewable energy projects through the CleanPowerSF program, the Lee administration seems to be exacerbating the environmental challenge rather than addressing it.

According to conservative projections by the Bay Conservation and Development Commission, the Bay is expected to rise at least 16 inches by 2050 and 55 inches by the end of the century. BCDC maps show San Francisco International Airport and Mission Bay inundated, Treasure Island mostly underwater, and serious flooding the Financial District, the Marina, and Hunters Point.

Lee’s administration has commissioned a report showing a path to carbon reduction that involves promoting city-owned renewable energy facilities and radically reducing car trips — while the mayor seems content do the opposite.

It’s not an encouraging sign for Earth Day 2013.

 

HOW WE’RE DOING

Last year, the Department of the Environment hired McKinsey and Company to prepare a report titled “San Francisco’s Path to a Low-Carbon Economy.” It’s mostly finished — but you haven’t heard much about it. The department has been sitting on it for months.

Why? Some say it’s because most of the recommendations clash with the Lee administration’s priorities, although city officials say they’re just waiting while they get other reports out first. But the report notes the city is falling far short of its carbon reduction goals and “will therefore need to complement existing carbon abatement measures with a range of new and innovative approaches.”

Data presented in the report, a copy of which we’ve obtained from a confidential source, shows that building renewable energy projects through CleanPowerSF, making buildings more energy-efficient, and discouraging private automobile use through congestion pricing, variable-price parking, and building more bike lanes are the most effective tools for reducing carbon output.

But those are things that the mayor either opposes and has a poor record of supporting or putting into action. The easy, corporate-friendly things that Lee endorses, such as supporting more electric, biofuel, and hybrid vehicles, are among the least effective ways to reach the city’s goals, the report says.

“Private passenger vehicles account for two-fifths of San Francisco’s emissions. In the short term, demand-based pricing initiatives appear to be the biggest opportunity,” the report notes, adding a few lines later, “Providing alternate methods of transport, such as protected cycle lanes, can encourage them to consider alternatives to cars.”

Melanie Nutter, who heads the city’s Department of the Environment, admits that the transportation sector and expanding the city’s renewable energy portfolio through CleanPowerSF or some other program — both of which are crucial to reducing the city’s carbon footprint — are two important areas where the city needs to do a better job if it’s going to meet its environmental goals, including the target of cutting carbon emissions 40 percent from 1990 levels by the year 2025.

But Nutter said that solid waste reduction programs, green building standards, and the rise of the “shareable economy” — with Internet-based companies facilitating the sharing of cars, housing, and other products and services — help San Francisco show how environmentalism can co-exist with economic development.

“San Francisco is really focused on economic development and growth, but we’ve gone beyond the old edict that you can either be sustainable or have a thriving economy,” Nutter said.

Yet there’s sparse evidence to support that statement. There’s a two-year time lag in reporting the city’s carbon emissions, meaning we don’t have good indicators since Mayor Lee pumped up economic development with tax breaks and other city policies. For example, Nutter touted how there’s more green buildings, but she didn’t have data about whether that comes close to offsetting the sheer number of new energy-consuming buildings — not to mention the increase in automobile trips and other byproducts of a booming economy.

Tom Radulovich, executive director of Livable City and president of the BART board, told us that San Francisco seems to have been derailed by the last economic crisis, with economic insecurity and fear trumping environmental concerns.

“All our other values got tossed aside and it was all jobs, jobs, jobs. And then the crisis passed and the mantra of this [mayoral] administration is still jobs, jobs, jobs,” he said. “They put sustainability on hold until the economic crisis passed, and they still haven’t returned to sustainability.”

Radulovich reviewed the McKinsey report, which he considers well-done and worth heeding. He’s been asking the Department of the Environment for weeks why it hasn’t been released. Nutter told us her office just decided to hold the report until after its annual climate action strategy report is released during Earth Day event on April 24. And mayoral Press Secretary Christine Falvey told us, “There’s no hold up from the Mayor’s Office.”

Radulovich said the study highlights how much more the city should be doing. “It’s a good study, it asks all the right questions,” Radulovich said. “We’re paying lip service to these ideas, but we’re not getting any closer to sustainability.”

In fact, he said the promise that the city showed 10 years ago is gone. “Gavin [Newsom] wanted to be thought of as an environmentalist and a leader in sustainability, but I don’t think that’s important to Ed Lee,” Radulovich said.

Joshua Arce, who chairs the city’s Environmental Commission, agreed that there is a notable difference between Newsom, who regularly rolled out new environmental initiatives and goals, and Lee, who is still developing ways to promote environmentalism within his economic development push.

“Ed Lee doesn’t have traditional environmental background,” Arce said. “What is Mayor Lee’s definition of environmentalism? It’s something that creates jobs and is more embracing of economic development.”

Falvey cites the mayor’s recent move of $2 million into the GoSolar program, new electric vehicle charging stations in city garages, and his support for industries working on environmental solutions: “Mayor Lee’s CleantechSF initiative supports the growth of the already vibrant cleantech industry and cleantech jobs in San Francisco, and he has been proactive in reaching out to the City’s 211 companies that make up one of the largest and most concentrated cleantech clusters in the world.”

Yet many environmentalists say that simply waiting for corporations to save the planet won’t work, particularly given their history, profit motives, and the short term thinking of global capitalism.

“To put it bluntly, the Lee administration is bought and paid for by PG&E,” said Eric Brooks with Our City, which has worked for years to launch CleanPowerSF and ensure that it builds local renewable power capacity.

The opening of the McKinsey report makes it clear why the environmental policies of San Francisco and other big cities matter: “Around the globe, urban areas are becoming more crowded and consuming more resources per capita,” it states. “Cities are already responsible for roughly seventy percent of global carbon dioxide emissions, and as economic growth becomes more concentrated in urban centers, their total greenhouse gas emissions may double by 2050. As a result, tackling the problem of climate change will in large part depend on how we reduce the greenhouse gas emissions of cities.”

And San Francisco, it argues, is the perfect place to start: “The city now has the opportunity to crystallize and execute a bold, thoughtful strategy to attain new targets, continue to lead by example, and further national and global debates on climate change.”

The unwritten message: If we can’t do it here, maybe we can’t do it anywhere.

 

ON THE EDGE

San Francisco’s waterfront is where economic pressures meet environmental challenges. As the city seeks to continue with aggressive growth and developments efforts on one side of the line — embodied recently by the proposed Warriors Arena at Piers 30-32, 8 Washington and other waterfront condo complexes, and other projects that intensify building along the water — that puts more pressure on the city to compensate with stronger sustainability initiatives.

“The natural thing to do with most of our waterfront would be to open it up to the public,” said Jon Golinger, who is leading this year’s referendum campaign to overturn the approval of 8 Washington. “But if the lens you’re looking through is just the balance sheet and quarterly profits, the most valuable land maybe in the world is San Francisco’s waterfront.”

He and others — including SF Waterfront Alliance, a new group formed to oppose the Warriors Arena — say the city is long overdue in updating its development plan for the waterfront, as Prop. H in 1990 called for every five years. They criticize the city and Port for letting developers push projects without a larger vision.

“We are extremely concerned with what’s happening on our shorelines,” said Michelle Myers, director of the Sierra Club’s Bay Chapter, arguing that the city should be embracing waterfront open space that can handle storm surge instead of hardening the waterfront with new developments. “Why aren’t we thinking about those kinds of projects on our shoreline?”

David Lewis, director of Save the Bay, told us cities need to think less about the value of waterfront real estate and do what it can to facilitate the rising bay. “There are waterfront projects that are not appropriate,” Lewis said. Projects he puts in that category range from a scuttled proposal to build around 10,000 homes on the Cargill Salt Flats in Redwood City to the Warriors Arena on Piers 30-32.

“We told the mayor before it was even announced that it is not a legal use of the pier,” Lewis said, arguing it violated state law preserving the waterfront for maritime and public uses. “There’s no reason that an arena has to be out on the water on a crumbling pier.”

But Brad Benson and Diana Oshima, who work on waterfront planning issue for the Port of San Francisco, say that most of San Francisco’s shoreline was hardened almost a century ago, and that most of the planning for how to use it has already been done.

“You have a few seawall lots and a few piers that could be development sites, but not many. Do we need a whole plan for that?” Benson said, while Oshima praises the proactive transportation planning work now underway: “There has never been this level of land use and transportation planning at such an early stage.”

The Bay Conservation and Development Commission was founded almost 50 years ago to regulate development in and around the Bay, when the concern was mostly about the bay shrinking as San Francisco and other cities dumped fill along the shoreline to build San Francisco International Airport, much of the Financial District, and other expansive real estate plans.

Now, the mission of the agency has flipped.

“Instead of the bay getting smaller, the bay is getting larger with this thing called sea level rise,” BCDC Executive Director Larry Goldspan said as we took in the commanding view of the water from his office at 50 California Street.

A few years ago, as the climate change predictions kept worsening, the mission of BCDC began to focus on that new reality. “How do we create a resilient shoreline and protect assets?” was how Goldspan put it, noting that few simply accept the inundation that BCDC’s sea level rise maps predict. “Nobody is talking about retreating from SFO, or Oakland Airport, or BART.”

That means Bay Area cities will have to accept softening parts of the shoreline — allowing for more tidal marshes and open space that can accept flooding in order to harden, or protect, other critical areas. The rising water has to go somewhere.

“Is there a way to use natural infrastructure to soften the effect of sea level rises?” Goldspan asked. “I don’t know that there are, but you have to use every tool in the smartest way to deal with this challenge.”

And San Francisco seems to be holding firm on increased development — in an area that isn’t adequately protected. “The seawall is part of the historic district that the Port established, but now we’re learning the seawall is too short,” Goldspan said.

BCDC requires San Francisco to remove a pier or other old landfill every time it reinforces or rebuilds a pier, on a one-to-one basis. So Oshima said the district is now studying what it can remove to make up for the work that was done to shore up Piers 23-27, which will become a new cruise ship terminal once the America’s Cup finishes using it a staging ground this summer.

Yet essentially giving up valuable waterfront real estate isn’t easy for any city, and cities have both autonomy and a motivation to thrive under existing economic realities. “California has a history of local control. Cities are strong,” Goldspan said, noting that sustainability may require sacrifice. “It will be a policy discussion at the city level. It’s a new discussion, and we’re just in the early stages.”

 

NEW WORLD

Global capitalism either grows or dies. Some modern economists argue otherwise — that a sustainable future with a mature, stable economy is possible. But that takes a huge leap of faith — and it may be the only way to avoid catastrophic climate change.

“In the world we grew up in, our most ingrained economic and political habit was growth; it’s the reflex we’re going to have to temper, and it’s going to be tough.” Bill McKibben writes in Eaarth: Making a Life on a Tough New Planet. “Across partisan lines, for the two hundred years since Adam Smith, we’ve assumed that more is better, and that the answer to any problem is another burst of expansion.”

In a telephone interview with the Guardian, McKibben discussed the role that San Francisco could and should be playing as part of that awakening.

“No one knows exactly what economy the world is moving toward, but we can sense some of its dimensions: more localized, less material-based, more innovative; these are things that San Francisco is good at,” he told us, noting the shift in priorities that entails. “We need to do conservation, but it’s true that we also need to build more renewable power capacity.”

Right now, CleanPowerSF is the only mechanism the city has for doing renewable energy projects, and it’s under attack on several fronts before it even launches. Most of the arguments against it are economic — after all, renewable power costs more than coal — and McKibben concedes that cities are often constrained by economic realities.

Some city officials argue that it’s more sustainable for San Francisco to grow and develop than suburban areas — thus negating some criticism that too much economic development is bad for the environment — and Radulovich concedes there’s a certain truth to that argument.

“But is it as green as it ought to be? Is it green enough to be sustainable and avert the disaster? And the answer is no,” Radulovich said.

For example, he questioned, “Why are we building 600,000 square feet of automobile-oriented big box development on Hunters Point?” Similarly, if San Francisco were really taking rising seas seriously, should the city be pouring billions of dollars into housing on disappearing Treasure Island?

“I think it’s a really interesting macro-question,” Jennifer Matz, who runs the Mayors Office of Economic Development, said when we asked whether the aggressive promotion of economic development and growth can ever be sustainable, or whether slowing that rate needs to be part of the solution. “I don’t know that’s feasible. Dynamic cities will want to continue to grow.”

Yet that means accepting the altered climate of new world, including greatly reduced fresh water supplies for Northern California, which is part of the current discussions.

“A lot of the focus on climate change has moved to adaptation, but even that is something we aren’t really addressing,” Radulovich said.

Nutter agreed that adapting to the changing world is conversation that is important: “All of the development and planning we’re doing today needs to incorporate these adaptation strategies, which we’re just initiating.”

But environmentalists and a growing number of political officials say that San Francisco and other big cities are going to need to conceive of growth in new ways if they want to move toward sustainability. “The previous ethos was progress at any cost — develop, develop, develop,” Myers said, with the role of environmentalists being to mitigate damage to the surrounding ecosystem. But now, the economic system itself is causing irreversible damage on a global level. “At this point, it’s about more than conservation and protecting habitat. It’s about self-preservation.”

Warriors Arena proposal rouses supporters and opponents

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UPDATED Rival teams have formed in the last week to support and oppose the proposed Warriors Arena at Piers 30-32 as the California Legislature considers a new bill to approve the project, a new design is about to be released, and a trio of San Francisco agencies prepares to hold informational hearings.

Fresh off the collapse of two of the city’s biggest development deals, Mayor Ed Lee and his allies are pushing hard to lock in what he hopes will be his “legacy project.” A new group of local business leaders calling itself Warriors on the Waterfront held a rally on the steps of City Hall today, emphasizing the project’s job creation, community partnerships, and revitalization of a dilapidated stretch of waterfront.

That launch event followed last week’s creation of the San Francisco Waterfront Alliance, made up mostly of area residents and environmental organizations that oppose the project, including the Sierra Club and Save the Bay. The group today released a press release and artist’s rendering of how the 13-story arena and two condo towers may block views of the bay.

Last week, SFWA put out a press release criticizing Assembly Bill 1273 by Assembly member Phil Ting, claiming it would allow the project to avoid scrutiny by the Bay Conservation and Development Commission, which oversees and issues permits for waterfront projects. “One of the primary reasons we have regulatory agencies like the BCDC is so that local jurisdictions don’t run roughshod over the Bay and the waterfront,” group President Gayle Cahill said in the release. “The San Francisco Waterfront Alliance strongly believes that BCDC should retain its jurisdiction in this project to ensure independent oversight for the Bay and for all of us.”

Yet Ting and supporters of the project say the legislation doesn’t change BCDC’s oversight of the project, pointing to language that explicitly acknowledges the agency’s authority. While the legislation would remove the need for the three-member State Lands Commission to approve the project, proponents said approval by the full Legislature is a higher bar that ensures more public scrutiny and accountability.

“It does not waive BCDC. It goes through the same BCDC process,” Ting told us. “By going through the Legislature, you do have more hearings and public process. The idea was to make this more thoroughly vetted.”

The Port’s Brad Benson told us that State Lands staff is also still actively scrutinizing the project. “We’ve been working closely with State Land and BCDC staff to incorporate their concerns,” Benson said. For example, the arena configuration has already been moved closer to shore than originally proposed because of BCDC concerns about maritime access to a deep-water berth at the site.

In addition to approval by the Legislature and BCDC, the project must also be approved by the Port Commission and Board of Supervisors. The latest design for the project is scheduled to be released on May 6 and will be discussed by the Board of Supervisors Land Use and Economic Development Committee that day, said Gloria Chan of the Mayor’s Office of Economic and Workforce Development. The Planning Commission will then hold an informational hearing on the new design May 9, following by a May 14 hearing before the Port Commission. 

The project is proposed to include a 17,500-seat arena that would host more than 200 Warriors games, concerts, and other events per year, starting in 2017, on 13 acres of rebuilt piers. The adjacent, 2.3-acre Seawall Lot 330 would include up to 130 new condos, a hotel of up to 250 rooms, and 34,000 square feet of restaurants and retail space.

The whole project would include just 830-930 parking spaces, making its still-unfolding transportation plan key to the project’s approval. Opponents of the project also criticize the project’s height and its financing package and say this intensive development isn’t consistent with city plans or state laws that protect waterfront lands for maritime and public uses.

“We told the mayor before it was even announced that it is not a legal use of the pier,” Save the Bay Executive Director David Lewis told the Guardian. “There’s no reason that an arena has to be out on the water on a crumbling pier.”

Yet proponents tout the project’s economic benefits to the city and the need for an arena that size to host concerts and conventions, beyond the prestige of luring the Warriors away from Oakland and back to its original home city. “It will be privately financed and turn a crumbling pier and unsafe parking lot into a state-of-the-art venue that generates new revenue for the region and provides a spectacular new facility for the Bay Area’s NBA team.”Jim Wunderman, CEO of the Bay Area Council and an honorary co-chair of Warriors on the Waterfront, said in the press release.

UPDATE: Rudy Nothenberg, who served five SF mayors financing big civic projects and helped found SF Waterfront Alliance, disputes several assertions made by project proponents. “The first version of [AB 1273] unquestionably moved BCDC out of the way,” he said, claiming that bill language was altered after input from BCDC and the consultant to the Assembly Natural Resources Committee. BCDC has not yet returned a call from the Guardian on the issue. Nothenberg also says AB 1273 turns the deliberate fact-finding process required for the State Lands Commission to make its public trust determination into a political process that is a less thorough vetting of the project.

He also took issue with the statements by Wunderman and others that this is a privately funded project, noting that taxpayers will be paying $120 million to rebuild these piers and will give up future property taxes on the site, which will be diverted by a special tax district to help repay the bonds. Nothenberg told us, “Their continued assertion that there is no public money involved in blatantly untrue.”

 

Treasure Island: Is this the end?

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So Mayor Lee goes to China with plans to celebrate the signing of a deal that would bring $1.7 billion in Chinese investment into the lagging Treasure Island redevelopment project, and instead the whole thing falls apart. Not good for the cross-Bay rivalry: Gov. Brown, a former mayor of Oakland, landed $1.8 billion in Chinese money for his city’s big project, while Lee lost out.

But there’s a bigger problem. It’s hard to see how anyone would want to invest in Treasure Island right now, when:

The island is sinking,

The Bay is rising,

There’s only one way on or off the island, and it’s already so crowded that a modest event like the Treasure Island Flea Market ties up traffic in both directions for hours, and

The place is radioactive.

Matt Smith and Katherine Mieszkowski of the Bay Citizen did what the Navy and the city of San Francisco refused to do. They went out with a couple of red buckets, dug up some soil and had it tested for Cesium-137. Bingo: The place suffers from far worse contamination that anyone was letting on. And there might be even more:

Until the early 1990s, the Navy operated atomic warfare training academies on Treasure Island, using instruction materials and devices that included radioactive plutonium, cesium, tritium, cadmium, strontium, krypton and cobalt. These supplies were stored at various locations around the former base, including supply depots, classrooms and vaults, and in and around a mocked-up atomic warfare training ship – the USS Pandemonium. CIR’s samples were taken from under a palm tree 50 feet from a classroom building where cesium-137 was kept, according to military archives. A 1974 radiation safety audit identified cesium samples used and stored there with radioactivity several times the amount necessary to injure or kill someone who mishandled them. In 1993, shipping manifests from the same building showed even greater amounts of cesium-137 taken away from the same site that year.

Now some experts say that development plans need to be put on hold while the entire place is checked out more carefully:

“The fact that there is a level above standards is a clear mandate for further study and assessment of the extent of contamination and its origin,” Beyea wrote in an email, adding that more systematic testing is particularly important given that public play areas are planned nearby. “Building a playfield is not an appropriate plan at this time,” he wrote, “given the tendency for little children to put things in their mouths.”

Would you loan a couple billion dollars for a development project on that site?

In theory, of course, the Navy is responsible for the cleanup. In practice? Good luck with that. The Pentagon is blaming the sequester for forced budget cuts in everything including the Blue Angels; you think anyone’s going to write a very big check any time soon for a very complex environmental clean-up job on an artificial island that will soon be underwater?

I used to think the best thing to do with Treasure Island was to leave as much open space as possible for soccer and baseball fields, then slowly let it sink back into the Bay. Now apparently it’s a bad idea even to have kids playing there.

And what about the people who already have moved into housing at TI? Anyone going to test their soil?

Anyone want to take bets on whether anything much is ever going to be built there?

Checks from mayor’s mysterious breakfast companions mysteriously absent

In less than three months, custom made super yachts will zip around the San Francisco Bay in the ultimate competition for the prized America’s Cup. But San Francisco could wind up spending millions more than originally expected to host this prestigious sailing regatta.

At a March 13 committee hearing at the Board of Supervisors, America’s Cup Organizing Committee CEO Kyri McClellan reported that Mayor Ed Lee was investing an “incredible amount of energy” into helping ACOC with fundraising efforts to avert a city funding shortfall. He was even said to be hosting “breakfasts with CEOs” to solicit funding, McClellan said.

Who are the CEOs? Nobody will say.

How much has each of them pledged to give? Nobody will say.

When the Guardian submitted these questions to Lee, McClellan, and Stefanie Roumeliotes – whose SGR Consulting firm was wheeled in at the last minute to organize fundraising events – none answered directly.

McClellan responded on April 9 with a copy of a letter she sent to Mayor Lee and Board President David Chiu on the day of the hearing, which she indicated was “the most recent update on fundraising.” Roumeliotes, for her part, told the Guardian flat out to stop calling, because her firm was not going to answer any questions.

So far, it appears that none of the mayor’s fundraising meetings, which took place from January 25 to March 4, resulted in his unnamed breakfast companions writing out actual donation checks.

Had they contributed funding, the donation amounts would have been reflected in “behested payment” forms filed with the San Francisco Ethics Commission, required under state law to be submitted 30 days after a contribution is made.

Elected officials are “supposed to file behested payment [forms] for … legislative, governmental or charitable purposes,” Ethics Commission chief John St. Croix told the Guardian, so donations relating to the America’s Cup would fall squarely into this category. Those forms are supposed to filed internally by department, then sent onto Ethics. So far, none have been recorded.

“If there are such forms that the mayor filled out,” St. Croix told the Guardian, “they’re not getting forwarded.”

Meanwhile, McClellan’s March 13 letter suggests that recent fundraising efforts have yielded only $1.4 million – which won’t actually be in hand till next year. That’s a far cry from the estimated $15.6 million funding gap race organizers say is needed to cover San Francisco’s estimated $22.5 million billionaires’ boat race tab. As the fundraising arm of the race organizing committee, ACOC promised in an initial agreement that it would “endeavor to raise” the amount needed to defray city costs. Thus far, it’s paid $6.8 million.

In her letter to Lee and Chiu, McClellan suggested that roughly $13 million of that $15.6 million shortfall would be accounted for in “forecast General Fund revenues.” That translates to additional money harvested from visitors’ pockets via sales and hotel taxes, with some payroll taxes and parking fees sprinkled in, all associated with the America’s Cup events. Little-guy money.

And thanks to the little guys, ACOC’s new fundraising goal is much more attainable. “The SFACOC continues to endeavor to raise the funds,” McClellan wrote. “At a minimum that is $2,670,851 of which we already have $1,400,000 in existing pledges that are to be received by January 2014.”

 

ABC shows more concern about expanding police video surveillance than Mayor Lee

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The SFPD has quietly expanded its reach and authority to obtain video surveillance from in and around bars, clubs, and markets through a condition it has begun recommending on new liquor licenses, as I reported in today’s issue, effectively bypassing controls on city-operated surveillance cameras established through extensive public hearings in 2005.

But the Mayor’s Office doesn’t seem concerned about the new trend, echoing SFPD’s point that it is the California Department of Alcoholic Beverage Control that decides whether to heed the SFPD’s request to include the video surveillance condition. “There is no new policy. SFPD makes recommendations as far as I know, not requirements,” Mayoral Press Secretary Christine Falvey wrote to me in an email responses to our questions.

Certainly, everyone from bar owners to the ACLU to Sups. Scott Wiener and David Campos – who have called a hearing on the policy for later this month – consider it a new policy, or at least one that the public has just learned of after it was adopted internally right after the idea was shot down in public hearings in 2011.

ABC spokesperson John Carr had told me the department “routinely denied requests for conditions by SFPD per section 23800(e) of the Californian Business and Professions Code, occasionally these denials include the surveillance condition,” but he wasn’t able to provide me any examples of that happening by press time.

But today, he was able to find one. On Oct. 3, 2012, ABC rejected the SFPD’s request for video surveillance at Bush Market at 820 Bush on a quiet residential block of Nob Hill, noting that state law requires such requests be supported by “substantial evidence” that problems exist at the site that would be mitigated by the condition.

“I regret to inform you that the Department is unable to impose conditions pursuant to your request because no evidence was provided to establish that a problem exists at the premises or in it immediate vicinity,” ABC District Administrator Justin Gebb wrote in what was essentially a form letter.

Carr shared an identical letter that the ABC sent to the SFPD denying some of its requested conditions for another liquor license transfer on Feb. 12, this one for the Space 550 event venue at 550 Barneveld Ave. But in that case, the ABC decided to support the SFPD’s request for video surveillance “that is able to view the inside and outside of the premises” and which must be given to the cops “upon demand.”

As I wrote in this week’s paper, the ACLU considers that kind of extrajudicial expansion of the SFPD’s ability to require and obtain video surveillance to be unconstitutional, and we furnished a copy of the article and the issues it raised to try to get a more substantial comment from the Mayor’s Office, which seems to be less concerned with the civil rights of San Franciscans than the bureaucrats in Sacramento are.

“Balancing public safety with vibrant cultural and nightlife activities is a concern of mayor. He expects the Police Department to work in partnership with the neighborhood and its businesses to lawfully collect evidence that can help keep the public safe and neighborhoods active,” Falvey wrote.

So I had a few follow-up questions, for which I’m still awaiting answers, and I’ll update this post if and when I get them: “The ACLU’s position is that this is not a lawful way to collect evidence, and that it violates the state constitution’s privacy protections and the rules San Francisco established in 2005 regulating when and how the SFPD may request and use video surveillance. Does the mayor reject those concerns and has he sought any legal advice to support his position? In the absence of any judicial review, shouldn’t the city have some guidelines and policies governing this expansion of SFPD’s video surveillance authority? Does the mayor believe the 2005 guidelines should no longer apply? And does the mayor agree with Sups. Wiener and Campos that it would be appropriate to have a public hearing on this issue, particularly given the strong public opposition to requiring expanded video surveillance by bars two years ago?”

SF declares Pay Equity Day as it lowers salaries for women’s jobs

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The Board of Supervisors today declared April 9 Pay Equity Day in San Francisco, in recognition of the persistent national gap between male and female financial compensation. But with the city locked in a dispute with SEIU Local 1021 over pay cuts to jobs dominated by women and workers of color, the day took on special local significance. Ahead of the declaration, union members, activists, and supervisors rallied in front of City Hall, chanting against San Francisco’s wage inequality and the general climate of fiscal austerity.

Women in San Francisco earn just 84 cents for every dollar paid to their male counterparts. Although this figure is slightly higher than the national average of 77 cents per dollar, the discrepancy represents a yearly wage gap of $9,968 per year, according to the National Partnership for Women and Families. At today’s press conference in front of City Hall, Sup. Malia Cohen called the gap “unconscionable in a country as wealthy as ours.”

Cohen was joined by Sups. David Chiu and David Campos, who both spoke out against gender-based wage gaps. “It is important for men to speak out,” Chui said. “It wasn’t women who made the decision for pay to be unequal.” Campos went a step further, promising to vote against any budget that further entrenches unequal pay. “I will not support any budget that reflect this discrepancy,” he said.

SEIU Local 1021, which represents over half of city employees, is currently locked in a budget dispute with the city over pay cuts that would adversely affect women and workers of color. The city Department of Human Resources has recommended that the city cut the salaries of 16 categories of city workers, including personnel clerks and nursing technicians, which are disproportionately females and workers of color. The dispute was recently sent to an arbitrator.

At today’s event, local SEIU leaders and the San Francisco Women’s Political Committee (SFWPC) continued to pressure the city to reconsider the salary cuts. SFWPC President Laura Hahn called persistent pay inequality “embarrassing.”

“If we can’t achieve it here in San Francisco where are we going to do it?” she asked.

Former Supervisor Chris Daly, who now works as political director for SEIU 1021, echoed Hahn’s concerns and charged that the proposal to cut pay for female-dominated categories calls into question the city’s long term commitment to pay equity.

“If you ask Mayor Lee if he supports wage equality, of course he will say yes,” Daly told us. “But in reality, his Department of Human Resources is rolling back progress.” Daly’s repeated requests for Mayor Lee to intervene in the wage-cut arbitration have not yet been answered.
But for the DHR, the recommended cuts have more to do with fiscal reality than gender equality. At a March 7th budget hearing, DHR director Micki Callahan said, “It would be improper to base any decision on demographics.”

She voiced concern over the “root causes” of pay discrepancy, but indicated that these issues fall outside the purview of her department. Spokespeople for the the DHR department have repeatedly assured us that the proposed budget cuts have nothing to do with gender, but rather reflect an effort to bring city salaries in line with market forces.

Paying for the mayor’s China trip

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You’d think the mayor would know better by now. After all the allegations of cronyism and undue influence, you’d think that he’d make sure everyone involved in his trip to China was playing by the rules. You’d think the last thing he would want is this.

Now: So far this is just a complaint, and noting has been proven. But still: It sure looks bad. And it’s entirely unnecessary.

If the mayor really belives that he needs to go to China to do the city’s business, why doesn’t he go on the city’s tab? Seriously: I would much rather that my tax dollars went for this trip than have the mayor inundated and unduly influenced by corrupt actors who want his ear. If he was going for fun and sightseeing, he could pay his own way; if he’s there, as his office says, on official business, then why is he taking private money?

When Dennis Herrera went to Washington DC for the Supreme Court hearing on same-sex marriage, the city paid his way. That’s appropriate: He’s directly involved in the case, as are some of his staffers. They were meeting with co-counsel, doing practice runs … working. He stayed at a midrange hotel at the government rate ($200 a night) and was allowed to spend a set per-diem on meals. That’s the same rules any city employee follows on official travel.

If you think he shouldn’t have gone (as Michael Petrelis clearly thinks), then that’s a political discussion. It’s appropriate to ask about it, to point out how much money was spent on the trip, to analyze his expenses, and to challenge him about it when he’s next running for office. But it’s not a corruption probe — and frankly, I’m happy that some corporate bond-counsel firm that wants the city’s legal business didn’t pay for the trip and send a lobbyist to hang out with Herrera the whole time.

The city sends people on trips. It’s fair to ask if they are an appropriate use of taxpayer money. But if the trip is worth taking, then the mayor should justify the expense — and not take corporate and lobbyist money instead.

Mayor Lee’s trip to China raises questions of ethics and influence

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[UPDATED(x3)] Mayor Ed Lee barely had time to unpack from his recent political junket to Paris before he was off on his current trip to China – both of which were paid for and accompanied by some of his top political supporters and among the city’s most influential power brokers. No wonder Lee doesn’t have time to weigh in on Airbnb’s tax dodge, the condo conversion stalemate, or other important city issues.

Local good government advocate Charles Marsteller learned of the current China trip from Willie Brown’s column in Sunday’s San Francisco Chronicle, whose editors (including Editor Ward Bushee, who we’re still waiting to hear back from about this trip) consider it a “man about town” column immune from conflict-of-interest policies that normally require journalists to disclose who is paying them on the side.

“I’m here with Mayor Ed Lee for my seventh official visit,” Brown cheerfully wrote, although readers were left to wonder just what official business Brown might be conducting with our mayor and his entourage. So, being an expert on political disclosure laws, Marsteller went down to the Ethics Commission to pull the Form SFEC-3.216(d) that state law requires elected officials to file before leaving on trips paid for by outside interests.

But it wasn’t there, so Marsteller filed an official complaint with the commission, telling us, “I did so to impress upon our Elected and other City Officials the need to properly report gifts in a timely way and in the manner as called for by State law and on the forms provided by the SF Ethics Commission.” 

When we contacted mayoral Press Secretary Christine Falvey, she forwarded us a copy of the form that should have been filed before the trip and told us, “I’m not going to answer the question about why we failed to file the appropriate forms with the Ethics Commission, as we worked closely with the City Attorney’s office to exceed reporting requirements by all appropriate deadlines.” [UPDATE: The time stamp on the form indicated it was filed on May 25, before the trip, even though it wasn’t publicly available at the Ethics Commission office when Marsteller went down to look for it].

The form indicates that Lee’s portion of the trip was paid for by the San Francisco Chinese Chamber of Commerce, whose influential leader Rose Pak conspired with Brown to get Lee appointed mayor more than two years ago. This is also the same Rose Pak who was admonished by the state’s Fair Political Practices Commission for illegally funding another political junket to China in 2009 with Sups. David Chiu and Eric Mar and then-Sup. Carmen Chu, who Lee appointed as Assessor earlier this year.

Those officials were forced to repay the expenses after the FPPC found that Pak, that time acting under the auspices of the Chinese New Year Festival Committee, was not allowed to make gifts exceeding $420 per official that year. “Please be advised that since the Chinese New Year Festival Committee is not an organization that falls under Section 501(c)(3) of the Internal Revenue Code, no public official may accept gifts of any type from this organization valued in excess of the applicable limit,” FPPC counsel Zachary Norton wrote in an Aug. 22, 2011 enforcement letter to Pak.

In other words, because this committee and “other 501(c)(6) chamber of commerce organization[s]” are in the business of actively lobbying top elected officials for favorable policies, rulings, and projects, they are barred by ethics law from giving them the gifts of big overseas political junkets. As Marsteller noted in his complaint letter, violations are punishable by fines of $5,000 per violation, or if they are “willful violations of the law” – which doing the same thing you were sanctioned for just two years ago certainly might be considered – the criminal penalties are $10,000 per violation or up to a year in jail.

Mayor Lee’s portion of the trip cost the Chamber $11,970, according to the form. But this time, to get around the FPPC restrictions, Pak seems to have passed the hat among various business elites to fund the trip. The mayor’s form shows that 41 people paid up to the current gift limit of $440 “to defray the cost of the mayor’s trip.”

They include Pak, Brown, four people from Kwan Wo Construction, three from American Pacific International Capital, two each from Boyett Construction, Young Electric, and Bel Builders, Harbor View Holdings Director Gorretti Lo Lui, and SF Immigration Rights Commissioner Sonya Molodetskaya – most of whom were also part of the trip’s 43-member delegation.

Among others who tagged along for the trip are Public Works Director Mohammed Nuru (who has a history of political corruption under Mayors Brown and Newsom and no clear business being on a Chinese trade delegation, but who doesn’t love a free trip?!), Kofi Bonner from Lennar Home Builders, Harlan Kelly with the SFPUC, Jay Xu with the Asian Art Museum, the wives of Lee and Bonner, Kandace Bender with San Francisco International Airport, and Mark Chandler with the Mayor’s Office of International Trade and Commerce.

It’s not clear who paid for those other public officials or even what they were doing there. [UPDATE: Department of Public Works spokesperson Rachel Gordon told us that Nuru paid for the trip himself, but that he’ll be studying China’s instrastructure, from its separated bikesways to greening of public rights-of-way, as well as meeting with Chinese businesses involved in the redevelopment of Hunter’s Point. “He’s been looking at a lot of the infrastructure in China,” Gordon said. “I expect a dozen if not more ideas when he returns.”] Then again, it also wasn’t clear why venture capitalist Ron Conway – Lee’s top campaign fundraiser and possible reason for publicly subsidizing big tech companies, including many that Conway funds – joined and helped sponsor Lee’s recent trip to Paris. This is just how business gets done in San Francisco.

“Willie Brown is the former Mayor of San Francisco,” Falvey told us when we asked why Brown was on the trip and what its purpose was. “The purpose of the trip is to promote San Francisco, its local manufacturing, cultural exchanges, he is signing an MOU and meeting with high level, new Chinese government officials.”

[UPDATE 4/5: Marsteller has withdrawn his complaint from the Ethics Commission alleging the mayor’s form wasn’t filed on time, but he and another citizen have filed separate complaints with the FPPC alleging the trip and its funding mechanism may violate the agency’s 2011 ruling against Pak.]

Tech Bubble 2.0

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OPINION We all remember the first dot-com bubble, right? Web technology start-ups flocked to San Francisco in the late 1990s. Thousands of would-be entrepreneurs and techies filled up the city. Gentrification of Central City neighborhoods accelerated sharply. Apartment rents jumped, followed by the condo boom. Demand for commercial office space, especially South of Market, quickly grew red-hot. Rents zoomed, and office developers rushed dozens of proposed new projects forward.

The leaders of Mayor Willie Brown’s gutless Planning Department rubber-stamped all they could, and decried the annual limit imposed on their approvals by the 1986 community-activist-sponsored Proposition M ballot measure.

The activists and the mayor put two competing measures on the November 2000 ballot in response. Both lost, but the progressive slate for the Board of Supervisors swept that election, defeating most of the mayor’s candidates.

And then Tech Bubble 1.0 popped. The peak year was 2000. The big dot-com bust, 9/11, and finally the Great Recession all followed.

The city’s office market crashed. Some new office buildings were foreclosed by their lenders. Many approved office developments went unbuilt. Overall office market vacancies approached 20 percent by 2010.

Ah, but here we go again — Tech Bubble 2.0! A new wave of recent technology industry start-ups — like Twitter and Yelp — are joining the growing survivors of Bubble Number 1 — like Salesforce. And San Francisco has become a premiere national media venue for the tech industry.

Thousands of would-be entrepreneurs and techies are again filling up the city. Apartment rents are going through the roof. Gentrification of Central City neighborhoods is accelerating even faster. Demand for commercial office space, still in SoMa, is red-hot again.

But by 2011 so much vacant space was on the market, and so many approved buildings were waiting for anchor tenants to start construction, that there has been room for them all so far. Several new buildings got underway. Mayor Ed Lee strategically took advantage of this market boom to target economic expansion to the Central Market District, the last disinvested zone of San Francisco’s Downtown.

Even today though, city office vacancies still exceed 5 percent. And according to the most recent Planning Department report, more than a dozen already-approved new buildings, totaling more than 4.5 million square feet, are waiting to start construction in the Transbay Transit District, South of Market, and Mission Bay. Another 5 million feet of office space is proposed for more than a dozen more pipeline projects for those areas. Plus another 2.5 million feet is planned for projects on Port property — including the San Francisco Giant’s huge project — that are not even on the Planning Department’s list yet!

How does this total of 12 million square feet of pending new San Francisco office buildings compare to historic demand? Going back to 1986, the amount of new office space actually built — true long-term market demand through the boom/bust business cycles — averages out to about only 750,000 square feet a year. The city’s old-school corporate headquarters dramatically downsized or even moved out of San Francisco — like Chevron and Bank of America — and that’s still ongoing. The new tech industry is mostly replacing them. So these 30+ identifiable current projects would provide a 16-year supply of office space at historic rates.

But even in the face of this evident market glut of future office buildings, the usual civic development hypsters are once again muttering about gutting Proposition M, and radically upzoning Soma for even greater office expansion. Is that who City Hall will listen to this time too?

Bubble? What Bubble? [Pop!]

John Elberling is executive director of the Tenants and Owners Development Corporation.

Lyft to take on Muni routes

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In an announcement that could transform transportation policy in San Francisco, the startup company Lyft is prepared to take over some of the most crowded and dysfunctional Muni routes in San Francisco.

Mayor Ed Lee and the Municipal Transportation Agency have approved a plan that would turn the 38 Geary, 30 Stockton, and 14 Mission over to the tech startup, City Hall sources told us. The plan is still tentative and the Mayor’s Office is trying to keep it tightly under wraps until the financial details are complete.

However, documents provided to the Guardian show that Lyft would buy at least 68 buses, including 12 articulated vehicles, at a price still to be negotiated. In exchange, the city would give the company – known for its pink mustaches on illegal taxi cabs – exclusive rights to operate on the heavily-used lines.

Lyft is developing an  app that would allow customers not only to view approaching buses but to book specific seats for an additional  price. Sensors in the bus seats will emit an electronic buzz to alert passengers that their seats had been purchased by someone else, warning them to vacate by the next stop. If the passengers remain, they will feel a sharp electric shock.

Lee’s office said the plan is similar to the market-based parking-meter program that raises the price of a space in times of heavy demand.

“The free market solves so many problems,” Christine Falvey, spokesperson for Lee, told us. “And it’s pretty clear that too many people who don’t really need to sit down or who are perfectly capable of waiting for a later conveyance are taking up space on the most crowded buses.”

Ron Conway, the venture capitalist who is Lee’s closest ally in the business community, will invest as much as $40 million in the new venture, Silicon Valley sources say.  If the trial public-private partnership works, he’s prepared to raise money to buy out Muni and turn the city’s bus system into a private operation.

“You’ve got a captive market, and demand-based pricing is what’s happening these days,” Falvey said.  “It’s just the next step.”

Mayor Lee’s mysterious breakfast companions [UPDATED]

See an update to this story below. San Francisco Mayor Ed Lee has been having breakfast with CEOs to seek millions in funding for the America’s Cup, but the identities of those CEOs remain a mystery.

At a City Hall hearing two weeks ago, America’s Cup Organizing Committee chief Kyri McClellan told supervisors that Lee has been “putting an incredible amount of energy” into fundraising to cover city costs for the America’s Cup. As the yacht race draws closer, pressure is building around an anticipated funding shortfall that could deal a blow to city coffers.

McClellan told supervisors that Lee was “holding breakfasts with CEOs” to raise money. Encouragingly, she added, “people are responding.”

So, who are the CEOs? And how much have they agreed to contribute? So far, nobody has disclosed that information.

Shortly after the hearing, the Guardian submitted a public records request to Lee’s office seeking documentation on the fundraising breakfasts and records showing the names and affiliations of the CEOs.

In response, we received several pages from the mayor’s calendar. Entries show that Lee held half a dozen meetings concerning “economic development,” with no mention of the America’s Cup. The mayor had a meeting at Waterbar, a restaurant on the Embarcadero overlooking the Bay Bridge, on the morning of Jan. 25; he had another meeting there Feb. 1; he met at the Hotel Vitale on Feb. 22; met at City Hall on Feb. 28; had breakfast at the St. Regis Hotel on March 1, and had lunch with someone at Original Joe’s on March 4. But there was no information disclosing whom he met with.

After receiving the documents, the Guardian left multiple voicemails with the mayor’s press office asking for the identities of the CEOs. So far, nobody has responded.

The request also yielded a fundraising form that asks prospective donors to “join the 2013 America’s Cup San Francisco Host Committee.”

Donors could opt to become a “Legacy Benefactor” for committing to give or raise $5 million; a “Legacy Partner” for $2.5 million; a “Strategic Partner” for $1 million, a “Civic Champion” for $500,000, or a mere “Member” for $250,000. Donors with questions or who wished “to connect with Mayor Lee” could call Stephanie Roumeliotes, the form noted. 

Roumeliotes is a prominent fundraiser and political strategist who provided financial consulting for the re-election campaigns of Senators Dianne Feinstein and Barbara Boxer. She was appointed to serve on the Golden Gate Concourse Authority, a part of the Recreation and Parks Department, by former Mayor Gavin Newsom.

A call to the number listed went to SGR Consulting, Roumeliotes’ firm. The receptionist declined to comment or to connect the Guardian with Roumeliotes, saying, “All press inquiries should be directed to the Mayor’s Office.”

UPDATE: We just received a voicemail from Christine Falvey, Mayor Lee’s press secretary, who told us “I don’t have a list of the attendees for those breakfasts. They were hosted by the America’s Cup Organizing Committee.” Which raises more questions, but in any case we placed a call to race organizers and will update again when we know more.

Does Mayor Lee support Airbnb dodging its $1.8 million tax debt to SF?

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My story in this week’s Guardian about how Airbnb appears to be refusing to pay the hotel taxes it owes to the city has gotten a lot of attention. But I’m still getting stonewalled by representatives from the company and Mayor Ed Lee, who apparently refuses to take a public stand against corporate tax evasion, even when it means thousands of San Franciscans could get stuck with an unexpected tax bill.

How much money are we talking about? According to a study that Airbnb commissioned and publicized late last year, its hosts in San Francisco collect $12.7 million from their guests every year. That means that if the company was charging the 14 percent Transient Occupancy Tax – as the Tax Collector’s Office last year ruled that it must – it would be paying the city nearly $1.8 million annually.

But that doesn’t seem to be happening, although only Airbnb can say for sure, which is why its spokespeople have been dodging my questions for more than a week. As I reported, taxpayer privacy laws prevent city officials from disclosing how much individual businesses pay in local taxes, but we do know Airbnb doesn’t add the TOT to the online transactions it facilitates or specifically encourage its San Francisco hosts to collect the taxes (even though the tax codes make the hosts and Airbnb jointly responsible for this growing debt to city coffers). And with the company charging 6-12 percent per transaction, it’s a safe bet that it isn’t simply paying the taxes itself.

What makes this particular case of corporate tax dodging even more interesting is the fact that Mayor Lee has a close connection to this particular San Francisco-based corporation. Venture capitalist Ron Conway is a top investor in both Airbnb and Mayor Lee’s political campaigns, creating a potential conflict-of-interest in Room 200. Last year, Mayor Lee personally lobbied against the interpretation by the Tax Collector’s Office, and now he appears to be silently backing Airbnb’s resistance to paying its taxes.

Last week, when I was trying to get a comment for Lee spokesperson Francis Tsang on Airbnb’s apparent tax dodge, he replied, “It’s an incorrect assumption that Airbnb and hosts haven’t been paying any transient occupancy tax..” Of course, because of the taxpayer privacy laws, Tsang can’t actually support that statement and I responded by laying out the evidence that the city is getting stiffed by Airbnb.

Then, he and Airbnb simply stopped responding to my questions, even though I’ve made repeated inquiries and asked only whether Mayor Lee was willing to make a public statement calling for a major San Francisco corporation to meet its local tax obligations. And in the interests of fully transparency, I’ll close with the email that I sent to spokespersons for Airbnb and the Mayor’s Office on Wednesday as my story came out, along with their emails in case you want to push for answers yourself.

kim@airbnb.com, francis.tsang@sfgov.org, christine.falvey@sfgov.org.

Dear Airbnb and mayoral spokespeople,

Since I couldn’t get responsive answers from any of you about why Airbnb isn’t collecting the Transient Occupancy Tax from its guests, I wanted to forward the link to my story on the topic in our latest issue (http://www.sfbg.com/2013/03/19/airbnb-isnt-sharing) and to let you know that I will continue covering this issue in the Guardian and our sister newspapers until you address it publicly.

Because of privacy laws that limit the Tax Collector’s Office from addressing this directly, only Airbnb can say whether they’re paying any of the hotel taxes that the city last year conclusively ruled that they owe. As I reported in my story, that tax obligation is shared jointly by Airbnb and its hosts, who don’t appear to have been warned of this by the company, making this an issue of consumer protection as well as corporate greed.

Will the Mayor’s Office make a public statement opposing tax evasion? Will it stand up for San Franciscans who may be unwittingly stuck with the tax bill by Airbnb? Or will Mayor Lee stick up for a tax-dodging corporation funded by the same billionaire that funds his political campaigns? And how will people feel about San Franciscans and the city treasury paying for his political ambitions?

These are all questions that I plan to air and explore in the Guardian, and I think that our readers and the general public deserve answers to those questions. If there are reasons why Airbnb guests aren’t being charged the TOT, some other arrangement that has been made, or some other complex reasons why Airbnb feels it can’t comply with last year’s ruling by the Tax Collector’s Office, I’ll be happy to hear it and let you make your case to our readers. But I don’t think that continuing to stonewall me is going to be a viable strategy for any of you. I hope to hear from you soon.

Fine Arts Museums management blasted in colorful anonymous letter

Ever since the Guardian reported on recent firings and allegations of improper behavior by senior staff at the Fine Arts Museums of San Francisco (FAMSF), we’ve received a great deal of correspondence relating to the museums. The barbs continue to fly as current and former museum staff members describe an intimidating internal atmosphere within the city’s charitable trust departments, which Curator Emeritus Robert Flynn Johnson has termed “Orwellian dysfunction.” Just this afternoon, another letter arrived — with no return address.

Dated March 20, it was addressed to Richard Benefield, Deputy Director of the de Young. Here’s the text in full, with our own links inserted to clarify the issues the writer is referencing:

“What a ridiculous and absurd Dept. Head Meeting yesterday!

“Aside from the competent I.T. report … how could you expect even a singular response regarding the recent media attention when everyone in the room has been completely intimidated and muted into silence?

“You, sir, are operating with the same delusion as our board president.

“‘Orwellian Dysfunction’ doesn’t even begin to describe the underlying rage, resentment, and disloyalty among most of us still employed by this institution.”

The letter goes on to name three top-ranking museum staff members, calling them “the greatest threat to this museum’s future function and credibility. If Colin Bailey cannot swiftly address these problem individuals, provide the city and public with a transparent accounting of its operating budget, reinstate board president term limits, and modify the draconian time clock surveillance system for our once dedicated hourly workers, then its [sic] certain that the probing press will only continue.”

Additional recipients were listed as San Francisco Mayor Ed Lee; Colin Bailey (rumored to have been selected as the new director of the de Young); FAMSF Board of Trustees President Diane “Dede” Wilsey; San Francisco Chronicle reporter Jesse Hamlin (who managed to get Wilsey on the phone; she ignored Guardian requests for an interview); New York Times reporter Patricia Cohen and arts journalist Lee Rosenbaum.

The Guardian left a message for Ken Garcia, spokesperson for the museums, to share the contents of the letter and request comment. So far, he has not responded.

The real CPMC story

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OPINION The recently announced terms for the development of California Pacific Medical Center’s hospitals at Cathedral Hill and St. Luke’s generated front-page and lead stories in the local news media. But nearly without exception, only part of the story was reported. Missing from most accounts of the terms of the new deal, which dramatically changed last year’s failed draft development agreement negotiated by Mayor Ed Lee, was the decisive role played by a community/labor coalition, San Franciscans for Healthcare, Housing, Jobs and Justice.

Key details of the agreement have yet to be finalized, and provisions of the terms announced on March 5th need to be improved. But the new agreement, in virtually all respects, is an improvement over the old one. And on the same day the terms of the new deal was announced one of the union members of the coalition, the National Union of Healthcare Workers signed a contact with CPMC that protected union organizing rights, job security at Cathedral Hill and full employer paid health care — issues that had been unresolved over the last few years. Still missing is an ageement between Sutter and its nurses, a critical component of labor peace.

The basic structure of the current terms mirror almost exactly the positions outlined by the SFHHJJ over the last year, including a requirement for labor peace with all unions at CPMC. This was no accident; it was the result of the efforts of the community/labor coalition. When the old deal was stalled at the Board of Supervisors in early 2013 and it was clear that the Mayors Office had no idea how to proceed, the members of the coalition came up with a framework to get discussions going again. The key ingredient was the involvement of a skilled an knowledgeable mediator, mutually respected by all parties and the participation of Sutter Corp. in Sacramento — the real party able to make actual binding corporate commitments, not the subsidiary the mayor had dealt with.

The second step was to agree to a framework of issues that would form the substance of negotiations — and the coalition’s own comprehensive set of positions served as that framework.

The next step was to get a critical mass of supervisors to agree to participate in the negotiations. Two Supervisors, David Chiu and David Campos, agreed to the coalition’s framework and the use of a third-party mediator. They added a third supervisor, Mark Farrell, to their group in order to assure buy-in from the full board.

Finally, the mediator had to be found and in that the coalition (and the rest of the city) simply were lucky that Lou Girardo was willing and able to provide his own special skills and credibility.

The SFHHJJ is not the first community/labor coalition in San Francisco history. Such coalitions were present in both the District 1 and District 5 supervisors races last year with mixed success, and in 2008 a community/labor coalition fought for revenue measures, again with mixed success but real unity. A new labor/community coalition has emerged to oppose Scott Wiener’s ill-advised weakening of our local California Environmental Policy Act procedures.

As the Democratic Party transforms itself into ever greater political irrelevancy by becoming the home of moderate Republicanism at all levels of government, community and labor co-operation seems to be growing over an increasing number of issues, showing a level of political vibrancy impossible to ignore.

Calvin Welch is a longtime community organizer in San Francisco and is a member of the SFHHJJ CPMC Negotiating Committee

Last gasp ends the sordid Mirkarimi saga

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A San Francisco judge has dismissed a defamation lawsuit against Sheriff Ross Mirkarimi and his wife, Eliana Lopez, which is likely to be the last step in an ugly and protracted political, legal, and administrative battle stemming from Mirkarimi grabbing Lopez’s arm during an argument on Dec. 31, 2011.

The couple’s neighbors, attorney Abraham Mertens and his wife, Ivory Madison, reported the grabbing incident to police over the objections of Lopez, who had sought advice from Madison and allowed her to film a short but emotional video displaying a bruise on her arm, which became the main evidence against Mirkarimi.

That exploded into a high-profile drama in which Mirkarimi was vilified by the media, charged with domestic violence and witness dissuasion, pleaded guilty to misdemeanor false imprisonment, suspended without pay for six months by Mayor Ed Lee, and finally reinstated to office by the Board of Supervisors in October.

Along the way, the two couples – who are still neighbors, despite Mirkarimi’s efforts to sell his house and move – became increasingly bitter public rivals. Lopez consistently denied being abused and implied to reporters that Mertens and Madison had political motives for breaking her confidence and reporting the incident to police. Mertens and Madison maintained that Mirkarimi tried to dissuade their cooperation with police – an allegation that the long investigation failed to substantiate – and blasted Mirkarimi and Lopez in a San Francisco Chronicle op-ed.

Other than that, Madison and Mertens refused to talk to the press as the saga unfolded – a stance they maintained today, with a man who answered the phone at the Red Room website business they run immediately telling us, “They’re not interested in talking.”

But Madison, who went to law school before becoming a fantasy writer, did let loose in June when she submitted a wild, incredible 22-page declaration to the Ethics Commission as part of the city’s effort to permanently remove Mirkarimi on official misconduct charges, purporting to describe the tyrannical way the Mirkarimi ran the household, as Madison claimed she was told by Lopez (which she disputes).

The commission criticized and gutted the declaration, finding that it was prejudicial and contained little usable evidence. Commissioner Paul Renne even dressed down the deputy city attorneys for submitting it, calling it “clearly hearsay, clearly having the intention of poisoning the well of this hearing,” causing Deputy City Attorney Peter Keith to apologize and explain they had little to do with the declaration because Madison had hired a private attorney who helped her prepare it.

The couple and their attorney have threatened to sue Mirkarimi and Lopez for more than a year, and they finally filed the defamation case in January, and it has now been quickly dismissed. Domestic violence advocates and allies of Mayor Lee also threatened a recall election against Mirkarimi, but that also seemed to wither late last year – meaning this is probably the last we’ll hear about this case, at least until Mirkarimi runs for reelection in two years, if he decides to do so.

Asked to comment on the lawsuit’s dismissal, Mirkarimi told the Guardian, “My family and I are very happy and have moved forward, and I hope they are too.” His attorney, David Waggoner, told us, “Hopefully, the dismissal represents the end of what has been a long and painful experience for everyone involved.”

SEIU 1021 employees authorize strike as its clash with the city goes to arbitration

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[UPDATE: The two sides reportedly reached a tenative agreement over the weekend]. Service Employees International Union Local 1021, which represents most city employees in San Francisco, continues to fight both internal and external challenges, with its own staff employees overwhelmingly authorizing a strike just as the union battles the city over pay equity issues.

As we reported last month, SEIU Local 1021 organizers, researchers, negotiators, and other professional staff, represented by Communication Workers of America Local 9404, have been without a contract since last fall and they’re resisting concessions to their pensions and health care benefits that President Roxanne Sanchez and her leadership team are seeking.

After several cancelled negotiating sessions between the two sides (which haven’t met since our story was published), CWA last week called for a strike authorization vote that was approved by 94 percent of voting members. CWA Area Director Libby Sayre and Nick Peraino, a CWA shop steward at Local 1021, say the vote repudiates Sanchez’s characterization that it is a small but vocal group that is unhappy with management.

“We’re very much united in our position and our willingness to do what it takes to get a decent contract,” Peraino told us. Sayre told the Guardian, “There is widespread sentiment they’re being low-balled by management.”

The two sides are scheduled to meet tomorrow (Fri/15), and Sayre told us the likelihood of a strike “depends on what management’s attitude is tomorrow.”

Sanchez and her core leadership team, including Vice President of Politics Alysabeth Alexander (both she and Sanchez are on leave from their jobs at Tenderloin Housing Clinic) and Larry Bradshaw, the vice president for the San Francisco region, last week won decisive re-election victories, indicating they have strong support from members.

Sanchez didn’t return a phone call seeking comment, but Local 1021 Political Director Chris Daly told us that he expects the dispute with employees to be resolved without a strike. “We have reason to believe it’s a tactic before they come to settle,” he said. He also questioned how many people voted in the election, and Sayre hasn’t returned our call with that follow-up question.

Meanwhile, Sup. John Avalos last week held a hearing before the Land Use and Economic Development Committee on Local 1021’s dispute with the city over a proposal by the Department of Human Resources to unilaterally lower the salaries on new hires in 43 job categories. Such changes were allowed in hard-won contract that the union negotiated with the city last year.

City officials say the salaries are too high based on a survey of similar positions in other Bay Area cities and counties, but the union has cast it as a pay equity issue, noting that the jobs are disproportionally held by women and minorities and they were deliberately increased in the ’80s and ’90s to offset historical institutional sexism and racism.

But pay equity provisions were removed from the City Charter during its 1997 revision, and Avalos has indicated he may sponsor legislation to address the issue. But in the meantime, Daly said appeals to Mayor Ed Lee to weigh in have been ignored and DHR officially submitted its pay reduction proposal to the arbitrator in the dispute on Monday.

So stay tuned, folks, San Francisco’s biggest labor union has a lot of the table right now and we’ll let you know how it turns out.

Tough questions asked on America’s Cup fundraising shortfall

At a March 13 subcommittee hearing called by Sup. John Avalos, representatives from the city’s Office of Economic and Workforce Development (OEWD), the America’s Cup Organizing Committee (ACOC) and others were called upon to explain why coordinators of the prestigious yacht race have failed to reach projected fundraising targets to defray city costs. If the fundraising goals aren’t reached, the city’s General Fund could weather a $13 million hit to cover costs for the sailing event.

San Francisco struck an agreement to host the sailing competition in 2010, following negotiations initiated under former Mayor Gavin Newsom with entities associated with Oracle Racing Team, owned by billionaire Larry Ellison. The events will culminate with a sailing match on the San Francisco Bay this coming summer.

Mark Buell, who chairs the board of ACOC, told supervisors original projections had pegged total event revenue at $300 million, with eight to twelve vessels competing in the race. Those projections have decreased dramatically, with only a handful of teams entering and other “unknowns” amounting to the fact that “revenues are not what we had hoped,” Buell explained. Yet he tried to put a good face on it, saying, “All told, I believe that the city will come out whole.”

Kyri McClellan, who became CEO of ACOC just after helping negotiate the deal to bring the America’s Cup to San Francisco at her previous job with OEWD, told supervisors that ACOC had hired a fundraising expert and launched an initiative called ONESF to kick up the fundraising efforts.

She added that Mayor Ed Lee was helping to secure funding commitments for the race, by “holding breakfasts with CEOs” and asking them to commit funding. Lee is “putting in an incredible amount of energy behind this,” McClellan said, “and people are responding.” She said Sen. Dianne Feinstein had also been involved in helping to secure funding for the sailing competition.

San Francisco Controller Ben Rosenfield provided a breakdown of the funding shortfall so far. An economic analysis conducted a year ago found that ACOC had $12 million cash in hand, he said, less than half the $32 million initially projected as what was needed to defray city costs. Only $13.9 million in pledges and documented cash can be accounted for thus far, Rosenfield added, and the committee has raised around $10 million less than it originally planned for at this stage of the game. “We found they’ve fallen short,” he explained. 

McClellan reported that an additional $1.1 million would be coming in, “from donors and pledges, between now and January of 2014.”

Mike Martin, tasked with leading the city’s involvement in the America’s Cup on behalf of OEWD, displayed a slide that seemed to paint a much rosier picture of the fundraising shortfall than the $20 million cited in recent media reports.

The total city budget projection for covering costs of the race is actually closer to $22 million, lower than the initially projected $32 million, according to his slide. So far the city has been reimbursed for $6.8 million of that, he said. But the next line on Martin’s slide subtracted “projected event-related tax revenues” pegged at around $13 million, apparently suggesting that the city would be made whole by increased tax revenue rather than by receiving an actual reimbursement payment to defray city costs. According to OEWD’s calculation, that makes the “remaining fundraising need” only about $2.67 million, according to Martin’s presentation.

“I don’t think it’s been the intent to say, let’s stop there,” Martin explained. “We have a few months to capitalize on the growing awareness and excitement about the event.”

Reached after the hearing, Sup. Avalos did not sound very excited by what he had heard in response to his inquiries. “It seems that the commitments that were made to the board in 2010 … are not being taken seriously,” Avalos said. “Now that they’re coming up short on fundraising efforts, they’re trying to say the General Fund should be subsidizing the cost of the race.”

Editor’s Notes

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tredmond@sfbg.com

EDITOR’S NOTES I wasn’t invited to the meeting where Mayor Ed Lee (and Willie Brown and Rose Pak) sat down with representatives of Lennar Corp. and a Chinese investment consortium to try to finalize a deal for Treasure Island. But I can tell you with near-absolute certainty that what comes out will not be good for San Francisco.

I can tell you that because every major project the mayor has negotiated has been bad for the city.

The way the California Pacific Medical Center project came down is a perfect example. The mayor worked directly with Sutter Corp., which owns CPMC, last spring, and in March, came out with a proposal that he and his allies presented as the best the city and the hospital giant could do.

It was awful.

CPMC would pay nowhere near enough in housing money to offset the new jobs it was creating. St. Luke’s, the critical public health link in the Mission, would be cut to 80 beds, below what it needed to be sustainable. Only about five percent of the 1,500 new jobs would go to existing San Francisco residents.

It was also pretty much dead on arrival at the Board of Supervisors, where a broad-based group of community activists pushed for big changes — and won. Sups. David Campos, David Chiu, and Mark Farrell stepped into the void created by a lack of mayoral leadership and forced Sutter to accept a much better deal, with St. Luke’s at 120 beds, vastly increased charity care, a guarantee that 40 percent of the new jobs will go to San Franciscans, and a much-better housing and transit component.

The mayor got rolled; he was ready to accept what everyone with any sense knew was better for Sutter than for his constituents. He clearly didn’t know how to say what the supervisors said: This won’t work, and we’d rather walk away from the whole deal than accept a crappy outcome.

That’s exactly what’s going on with the Warriors’ arena — the mayor is giving away the store. And he, with Brown and Pak at his side, will do the same at Treasure Island.

The balance of power in the city is moving to the board. And for good reason — the supervisors seem to be able to get things done.

From the Rocketship to Bay Lights, “temporary” is the key that unlocked public art in SF

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In the wake of The Bay Lights coming on to rave reviews and mesmerized gazes last week, next weekend the Raygun Gothic Rocketship will be taken down from the Pier 14 launch pad it’s occupied since 2010, the latest transitions in San Francisco’s trend of using temporary public art placements to bypass the protracted, emotional, and expensive battles that once defined the siting of sculptures on public lands in San Francisco.

By partnering with private arts organizations and calling the pieces “temporary” – even though almost all of them have been extended past their initial removal deadlines, sometimes by years – the San Francisco Arts Commission, the Port of San Francisco, and other local entities have allowed public art to flourish in the City.

The commission’s longtime public art director Jill Manton told us that temporary public art placements go back to the early ’90s, usually involving smaller pieces while big, years-long controversies continued to rage on over bigger pieces such as “the foot” that never went in on the Embarcadero, the Cupid’s Span piece that Don Fisher did finally place on the waterfront (and which many critics wish had been only a temporary placement), and a big, ill-fated peace sign in Golden Gate Park.

“It’s not as threatening to the public, not as imposing, so it doesn’t seem like a life-or-death decision,” Manton said of the trend toward temporary placements.

But the real turning point came in 2005 when then-Mayor Gavin Newsom, Manton, and other city officials began to embrace the Burning Man art world by bringing a David Best temple into Patricia Green in Hayes Valley, Michael Christian’s Flock into Civic Center Plaza, and Passage by Karen Cusolito and Dan Das Mann onto Pier 14 (a transition point that I chronicle in my book, The Tribes of Burning Man).

Each piece was well-received and had its initial removal deadlines extended. Since then, temporary placements of both original art and pieces that returned from the playa – including Cusolito’s dandelion in UN Plaza, the rocketship, Kate Raudenbush’s Future’s Past in Hayes Valley, and Marco Cochrane’s Bliss Dance on Treasure Island, which is now undergoing a renovation to better protect it against the elements during its longer-than-expected and now open-ended run – have enlivened The City.

“They get to rotate art and people get excited about what’s next,” said Tomas McCabe, director of the Black Rock Arts Foundation, a Burning Man offshoot organization that has helped with fundraising and logistics for most of the burner-built placements.

We spoke by phone on the afternoon of March 8 as he was working with Christian to install The Bike Bridge – a sculpture using recycled bicycle parts that local at-risk teens helped Christian build thanks to a grant from the National Endowment for the Arts – at the intersection of Telegraph and 19th in Oakland as a temporary placement.

The Bike Bridge will officially be unveiled on April 5 during the increasingly popular monthly Art Murmur, and the party will get extra pep from a conference of Burning Man regional representatives that is being held just down the block that day.

McCabe said the connection between Burning Man and the temporary art trend doesn’t just derive from the fact that Bay Area warehouses are filled with cool artwork built for the playa that is now just sitting in storage. It’s also about an artistic style and sensibility that burners have helped to foster.

“We try to help the art pieces have a life after Burning Man, but it’s more the style of community-based art that we promote,” McCabe said, noting that BRAF also helps with fundraising and other tasks needed to support these local art collectives. “We like to see the artists get paid for their work, we’re funny like that.”

Manton said there are currently discussions underway with San Francisco Grants for the Arts (which is funded by the city’s hotel tax) and other parties to put several large pieces built for Burning Man on display in either UN Plaza or Civic Center Plaza, a proposal Manton called UN Playa. “We bring the best of Burning Man to the city,” she said.

Most of the art placements in San Francisco have been labors of love more than anything, and a chance to win over new audiences. When the Five-Ton Crane crew and other artists placed the Raygun Gothic Rocketship on the waterfront in 2010, they had permission from the Port to be there for a year. Then it got extended for another year, and then another six months, and it will finally come down this weekend.

There will be final reception for the Rocketship this Friday evening (with music from the fellow burners in the Space Cowboys’ Unimog) and then the crane will come up on Sunday morning to remove it, in case any Earthlings want to come say hello-goodbye.

“The Rocketship and its crew have had a fantastic 2.5 years on display at Pier 14. Maintenance days were always a pleasure, giving us a chance to talk to people – and see the smiles and joy people got from the installation,” one of its artists, David Shulman, told us. “We’ve had tremendous support from, and would like to thank, the people of San Francisco, the Port of San Francisco, and the Black Rock Arts Foundation. But Pier 14 is intended for rotating displays, and we’re excited to see what comes next.”

Dan Hodapp, a senior waterfront planner for the Port district, said they don’t currently have plans for the site, although he said it will include more temporary art in the future. “The Port Commission and the public are supportive of public art at that location,” Hodapp told us. “But right now, we’re just reveling in the new Bay Lights and we’re not in a hurry to replace the Rocketship.”

Manton said The Bay Lights – the Bay Bridge light sculpture by art Leo Villareal that began what is supposed to be a two-year run (but which Mayor Ed Lee is already publicly talking about extending) on March 5 – has already received overwhelming international media attention and is expected to draw 55 million visitors and $97 million of additional revenue to the city annually.

“It is public art as spectacle. It’s amazing,” Manton said of the piece, which the commission and BRAF played only a small roles in bringing about. “It’s so good for the field of public art.”

She that the success of recent temporary art placements and the role that private foundations have played in funding them have not only caused San Franciscans to finally, truly embrace public art, but it has ended the divisive old debates about whether particular artworks were worth the tradeoff with other city needs and expenditures. And it has allowed the Hayes Valley Neighborhood Association and other neighborhood organizations to curate the art in their public parks.

Meanwhile, even as the Port gives Pier 14 a rest, Hodapp said another temporary artwork will be going up this fall at Pier 92, where old grain silos will be transformed into visual artworks, and that Pier 27 will be turned into a spot for a rotating series of temporary artworks once the Port regains possession of the spot from the America’s Cup in November.

As he told us, “The public really enjoys art on the waterfront, and they’re most supportive when we do temporary art, so there’s a freshness to it.”

Next, the Treasure Island sellout

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Now that he’s done such a bang-up job negotiating a deal for the CMPC hospital, leaving the supervisors to clean up the mess, does anyone think that the hurry-up-and-finish-in-time-for-a-China-trip talks with Rose Pak and Willie Brown (who has his own interests here, too) will have a good outcome for San Francisco?

Because I don’t.

Nothing the mayor has directly negotiated with private interests has been anything but a disaster for the city. America’s Cup, the Warriors arena, CPMC … the guy just can’t seem to say No. And you really don’t want someone who gives away the story to be representing the city when there are billions of dollars and the future of a huge new neighborhood (on a sinking island in the middle of a rising bay) at stake.

I still don’t see how intense residential and commercial development works on TI, when there’s only one overcrowded artery on and off the island. In New York, people who live on Staten Island are used to using the (free, heavily subsidized)  ferry — 60,000 a day take the boats into Manhattan. That’s going to be a huge stretch for people who live on TI, where there will be limited shopping (even for things like groceries) — and at this point, I don’t see the developer, or the city, purchasing and paying for enough cheap ferry service to make it an effective form of transportation.

That said, if we can make it work as a transit-first community, I have no problem with developing Treasure Island — but I don’t see Lee getting the level of civic benefits out of Lennar and the China Development Corporation that San Francisco needs to make this pencil out. Hasn’t happened yet.