Fractional mortgage loans used to convert apartments into owner-occupied tenancies-in-common have fed the eviction and displacement crisis in San Francisco, where the median home price just surpassed $1 million for the first time. Now, some of the same San Francisco banks that pioneered fractional loans here have started offered them in the East Bay and on the Peninsula.
TIC housing is an ownership model for multi-unit buildings, where each unit is independently owned. This option appeals to would-be homeowners because it’s cheaper than a condominium, but less fraught than a traditional loan shared by various owners in a TIC building, which does not allow for independent ownership of each unit.
TICs local have grown in popularity in San Francisco as housing prices continue to skyrocket, since they help homeowners find something affordable, although that benefit usually comes at the cost of evicting all the tenants in the building, often including seniors, those with disabilities, and low-income people in rent-controlled units.
Previously, fractional TIC loans were only accessible in SF. Now, as people seek affordable housing outside of expensive San Francisco, the demand for fractional TIC loans has grown. And San Francisco bankers have stepped up to meet that demand, according to a recent article in the San Francisco Business Times (“High-priced SF housing market exports fractional tenants-in-common loans,” June 28).
Sterling Bank & Trust has become well-known for providing fractional TIC loans (more than $480 million worth so far, according to the Business Times), and is the first company to offer the loans outside of San Francisco. “We’re helping the firefighter and school teacher, or what I like to call the ‘non-tech’ buyer, purchase a home,” Stephen Adams, senior vice president of Sterling Bank & Trust, told the Business Times.
Adams is also president of the San Francisco Small Business Commission, presiding over what critics say is a shift in that commission toward rubber-stamping initiatives from the Mayor’s Office rather than defending small business interests. When we contacted Adams to ask about the evictions and displacement caused by fractional loans, he told he had “no comment to make at this time.”
Tommi Avicolli Mecca, the director of counseling programs at the Housing Rights Committee of San Francisco, said that he doesn’t know how the TIC loans might affect those in the East Bay. But he does know they’re bad news for San Francisco, where there’s now a 10-year moratorium on new condo conversions but few controls on the creation of new TICs.
“They’re scary,” Avicolli Mecca told us. “It’s a disaster for San Francisco. Basically, if you’re buying a tenancy in common, you don’t need to condo convert. It used to be that you wanted a condo conversion so you could have a separate mortgage on what you own. With a fractional loan, you have your own mortgage from the start.”
He added that the loans make it easier for sellers to convert buildings into any size that they can market to home buyers. With the loans, combined with the state Ellis Act allowing owners to remove apartments from the rental market, evicting tenants becomes even more profitable.
The Bank of San Francisco confirmed that it also offers TIC loans in the East Bay. The bank will be making them more attractive with interest-only payments, fractional financing for buildings with more than 12 units, and loans up to $2 million.
Dylan Desai, a spokesman for the Bank of San Francisco, told us that the bankers “do not extend financing to buildings where there has been an eviction” and, to their knowledge, they never have. “We’re sensitive to tenant rights.”
Hopefully the other banks offering these loans will be just as sensitive as they branch out into communities in the region that have already been absorbing an influx of working class former San Franciscans.
Last year, the SF SPCA assisted with 5,084 cat and dog adoptions. With its new adoption center near Bryant and 16th Streets, which opened June 13, it aims to increase capacity by 20 percent — saving 1,000 more furry lives in the process.
“When our old adoption center opened in 1998, it was the first shelter in the country to house animals in condominium-style rooms instead of cages,” SF SPCA co-president Jason Walthall said in a June press release. The upgraded shelter continues this tradition — and continues to offer dog training classes, volunteer programs for youth, and other community-service activities — but with even more enhancements for the animals. Each glassed-in enclosure features a touch screen pad that provides more information about the pet inside, with an emphasis on personality type (“social butterfly,” “busy bee,” “delicate flower”) over breed — a more efficient way of linking animals with potential new families.
For dogs, there’s a small indoor park that’s used to make introductions (especially important if the potential new owner already owns a dog — gotta make sure the new pooch gets along with the pack), while the cats, housed in a separate section of the building, get to scamper across SF-themed cat condos. (So far, there’s a Golden Gate Bridge, a Transamerica Pyramid, a cable car, the Sutro Tower, and the SF Giants logo; a Castro Theatre design is in the works.) These improvements make the shelter life more comfortable for the animals — though most dogs only stay two weeks; cats, just slightly longer — but they also help entice visitors.
“We want to make it a fun, happy experience,” says SF SPCA media relations associate Krista Maloney, pointing out that the shelter — which was founded in 1868, has an attached vet hospital (providing free and sliding-scale spay-neuter procedures, among other services), and is a nonprofit funded by donations — competes with pet stores and breeders to place animals in homes. Earlier this year, it joined forces with fellow nonprofit Pets Unlimited, which is located in Pacific Heights, to further its mission: “to save and protect animals, provide care and treatment, advocate for their welfare and enhance the human-animal bond.”
But wait! You’re a San Francisco renter! The words “NO PETS ALLOWED” haunt your nightmares! How can visiting an animal shelter be anything but depressing? SF SPCA’s website has an entire section offering advice for landlords and tenants (one tip: create a “pet resume” to include with your rental application) on the subject of pet-friendly housing. And if the landlord won’t consent to a dog, the SF SPCA just might be able to help out anyway. Coming soon to the new facility: adoptable small mammals, including rabbits, hamsters, and guinea pigs.
“Die techie scum.” Those words are sprayed ominously on sidewalks throughout San Francisco. They’re plastered on stickers stamped on lampposts. They’re even scrawled in the bathrooms of punk bars, the very establishments now populated by Google-Glass-wearing tech aficionados.
Journalists from San Francisco to New York have opined on the source of the hate: Is it the housing crisis? Tech-fueled gentrification? Rising inequality? Those same journalists later parachute into the tech industry to periodically peer at its soul: Is tech diverse enough? Is it sexist? Is it a true meritocracy?
Those issues are often looked at in a vacuum, but perhaps they shouldn’t be. Perhaps those problems are all interconnected, and solving tech’s diversity problem is also part of solving income inequality in San Francisco, giving longtime San Franciscans a chance to join the industry many now view as composed of outsiders and interlopers.
The average Silicon Valley tech worker makes about $100,000, according to Dice Holdings Inc., which conducts annual tech salary surveys. Opportunity in the tech sector may bolster San Francisco’s middle-income earners, vanishing like wayward sea lions from the city’s landscape. Statistics from the US Census Bureau show that 66 percent of the city is either very poor or very rich, showing a hollowing out of the middle class.
Some tech CEOs are addressing their employment needs with a foreign workforce. Mark Zuckerberg and a cadre of tech CEOs have lobbied Senate and House Republicans to reform immigration in their favor, hoping to lure out-of-country workers to fill tech’s employment vacancies. Politico reported Sean Parker gave upwards of $500,000 to Republicans in 2014, all for the cause of immigration reform.
Conversely, a movement is already underway to bring San Franciscans into tech’s fold, based on the idea of a win-win scenario: San Francisco’s public school students are overwhelmingly diverse and lower income, while the tech industry is not.
Google, Facebook, LinkedIn, and Yahoo recently released their diversity numbers, showing the companies are mostly white and male. This accusation has long haunted Silicon Valley.
Two years ago, Businessweek heralded the “Rise of the Brogrammer.” The stereotype is as follows: He preens as he programs in his popped collar, his startup funds fuel the city as he hunts “the ladies,” and he is insensitive toward women in the workplace in the most fratboy-like way imaginable.
Biz dev VP of @path just cracked lame jokes re: “nudie calendars,” frat guys + “hottest girls,” “gangbang” at #swsx talk. Cue early exit.
But while outlier brogrammer douche-bros certainly exist, whose classist opinions ignite widespread ire (think Greg Gopman’s statement comparing homeless people to “hyenas”), the real brogrammer threat is more insidious, more systemic.
“The brogrammer is always someone else,” wrote Kate Losse, a freelance journalist, in an April blog post. “He is THOSE Facebook guys who yell too loudly at parties and wave bottles in the air, he is not the nice, shy guy who gets paid 30 percent more because of his race, gender and appeal to the boy-genius fetishes of [venture capitalists].”
The overarching point of Losse’s article was this: There is a subtle sexism, and also racism, in the tech sector, which shuts out women and people of color. The looming stereotype of a douchey brogrammer can obscure the smaller, more indirect ways in which minorities and women are shut out of the industry.
Tech’s disturbing (but unsurprising) lack of diversity is being highlighted amid an economic backdrop that has resulted in widespread displacement of San Francisco’s working class and minorities.
Some are seeking to create opportunities for Bay Area communities of color within tech, as a way to even the scales. A swell of new applicants with programming skills — including people of color and women — may soon come knocking. But in the time it will take school-age coders to cycle through the first generation of new computer science classes, Silicon Valley is going to have to take a hard look in the mirror.
Some of the Bay Area’s hate toward tech may be rooted in a perceived lack of access. Longtime residents see a sea of newcomers, often white, often male, who aren’t pulling up a seat for minorities to join the new gold rush.
The age of the brogrammer is now, and it’s as socially progressive as the paleolithic era, meaning: not at all.
FAKE IT TIL YOU MAKE IT
Talk to anyone in the realm of new technology companies and startups, and they’ll surely tell you this: Tech is an inspiring, creative field, where pure skill is the key to unlocking any job you’d like. The dress style is casual (hoodies, of course) and the perks flow like wine (or energy drinks).
When the Guardian visited the CloudCamp social good hackathon, we saw video game arcade machines in the ground floor and beer flowing throughout. Another company, Hack Reactor, had desks attached to treadmills and a life coach on hand to mind employee health. These are accoutrements de rigeuer, stunningly standard. But tales of true Silicon Valley excess abound: One CEO offers employees free helicopter rides, many offer in-house chefs and extravagant travel.
Interns in Silicon Valley are enjoying huge perks like free meals, massages, swimming pools, nap pods: http://t.co/BdaaOdC95P
Skill and ability alone are the keys to unlocking this lifestyle, the tech industry says. Workers’ fervor can take on an almost cult-like zeal.
“I think the sharing economy is addictive,” said Rafael Martinez-Corina, a panelist at the Share2014 sharing economy conference in May, touting tech’s biggest stars like AirBNB, Lyft, and Uber. “Once you get it, you want more and more. You get into car sharing, you want to get into food sharing, time sharing.”
He asked the audience, “Who else is addicted to sharing?”
Almost every hand went in the room shot right up. Cheers immediately followed. Hallelujah!
Mars Jullian, an engineer at AdRoll, told the Guardian that employees of tech companies with name-brand apps tend to exhibit more ego. AdRoll is a big player, but more behind the scenes, she said, giving her perspective on the attitudes of her fellow tech workers.
“Sometimes it seems tech people feel like they own the city,” she said. “I don’t know if that’s the right attitude to have. Sometimes it’s more important to be humble.”
One might forgive the tech workers for their enthusiasm. The industry, after all, has ushered in widespread transformation in business and communications, resulting in dramatic economic shifts. But with such a high concentration of wealth and influence in the Bay Area, the question of who gets to participate is key.
Google’s diversity numbers rocked the world outside Silicon Valley, but surprised few in the Bay Area. The behemoth is 70 percent male and 60 percent white, with Asians making up 30 percent of the company’s ethnic representation.
Soon after Google’s numbers were revealed, Facebook, Yahoo, and LinkedIn followed suit with their own diversity reports. Their numbers differ a bit from Google, showing more Asian employees, and slightly more women. The numbers look worse, however, when only technology jobs are factored in. The tech worker population among these companies is about 15 percent female.
Hadi Partovi, an early Facebook investor, now adviser, and ex-chief of Microsoft’s MSN, told the Guardian that despite the industry’s challenges, tech’s doors are open to people with skills, regardless of background.
“The computer doesn’t know if it’s being programmed by someone rich or poor, black or brown,” he told us in a phone interview. “A lawyer, for instance, is looked at more explicitly. Tech has the opportunity to be more meritocratic.”
But the tech sector’s pious belief that it functions as a world-changing meritocracy ignores a host of factors that serve to hinder inclusion.
Many have touted the education pipeline as the root cause of tech’s lack of diversity. The number of women pursuing science, technology, engineering, and math (STEM) fields is stunningly low, 24 percent, according to the US Department of Commerce. African Americans and Latinos also lag far behind their white and Asian counterparts in completing their computer science degrees, according to studies by the East Bay nonprofit Level Playing Field Institute.
Considering Asian groups is important: the Level Playing Field Institute draws a distinction between represented and underrepresented minority groups, acknowledging that ethnicity, income and class intermingle in complex ways. It’s those underrepresented groups like women, Latinos and African Americans LPFI identifies as groups lacking in tech.
But the pipeline is only one part of the problem. Subtle (and not-so-subtle) misogyny and racism, often labeled micro-aggressions, pervade hiring.
Level Playing Field is focused on creating opportunity for people of color and women in STEM fields. In an extensive tech-industry study conducted in 2011, called “Hidden Bias in Information Technology Workplaces,” researchers concluded: “Despite widespread underrepresentation of women and people of color within the sector, diversity is not regarded as a priority.”
Surveying more than 645 engineers, the study’s authors found that white men were the most likely to believe that diversity was not a problem that needed addressing in the tech sector. The study also found that underrepresented people of color (Latinos and African Americans), and women were more likely to encounter exclusionary cliques, unwanted sexual teasing, bullying, and homophobic jokes.
Sometimes, these instances blow up for the world to see.
THE MIRROR-TOCRACY
The workday text messages between Tinder’s co-founder Justin Marteen and former VP Whitney Wolfe went public after Wolfe sued Tinder, revealing the ugly waters women must sometimes navigate in tech. Marteen was allegedly harassing Wolfe over her new love interest, and Wolfe asked him to stop.
“Stop justin [sic]. Were at work,” Wolfe asked of Marteen, to which he replied, “Ur heartless… go talk to ur 26 year old fucking accomplished nobody. I’ll shit on him in life.”
He should have ended there. But he continued his rage at his ex-girlfriend.
“Hagsgagahaha so pathetic I even imagined a life w u. I actually thought u would be a good mother and wife. I have horrible judgement. He can enjoy my left overs,” he allegedly wrote. “You’re effecting my work environment,” she replied, “and this is very out of control. Please don’t do this during work hours.”
Besides an awful command of rudimentary spelling, the squabble showed the very real harassment women in tech are exposed to every day. When Wolfe went to Tinder CEO Sean Rad for help, she found herself out of a job.
Tinder is not an outlier, according to studies by Level Playing Field. Nor is it the only company to see its harassment go public. Earlier this year, GitHub’s CEO Tom Preston-Werner resigned after a former employee, Julie Ann Horvath, alleged she was harassed by him, his wife, and engineers.
While Github denied the allegations, Horvath was defiant: “A company can never own you. They can’t tell you who to fuck and who not to fuck. And they can’t take away your voice.”
But for every example of outright sexism or racism, there are multitudes of more subtle biases in the workplace. Level Playing Field’s studies found these biases are pervasive. They start as early as the hiring process.
Carlos Bueno is a former Facebook engineer, now tinkering behind the scenes at memSQL. He is of mixed ethnicity, Irish and Mexican, among others. “My father called us ‘Leprechan-os’,” he told us.
Bueno trained interviewers at Facebook, and like many there, he also conducted interviews. He said Facebook’s interview process was probably one of the best in the industry for screening out biases of the interviewer, but other companies were not as aware of bias as a problem.
“Every startup wants to be a big dog,” he said, describing the process. “But the point of a startup is to grow very large, very quickly. They don’t have time to learn. Some people take rules of thumb or investor advice and run with it.”
Paypal co-founder Max Levchin is looked to as a thought leader in the startup world. He touts the idea that diversity of perspective in a startup’s early phases can actually hurt its chances of success, hindering its speed in “endless debates.”
Paypal co-founder Peter Thiel once famously put it this way: “Don’t fuck up the culture.”
Bueno pointed to a real estate startup, 42Floors, as an example of a company adopting Levchin’s philosophy. It looks for potential hires who are a “cultural fit,” i.e., making sure the candidate and employer think alike.
One 42Floors interviewer explained this on the company blog: “I asked her how she was doing in the interview process and she said, ‘I’m actually still trying to get an interview. Well, I grabbed coffee with the founder, and I had dinner with the team last night, and then we went to a bar together.’ I chuckled. She was clearly confused with the whole matter. I told her, ‘Look, you just made it to the third round.'”
So the interview process for tech may involve coffee dates or “beer with the guys,” and the onus is on the interviewee to figure all of this out. Similar blog posts from 42Floors go on to call out interviewees who wear suits, or act too stodgy for their liking.
We spoke to Bueno extensively over burgers, but he put it best in his blog.
“You are expected to conform to the rules of The Culture before you are allowed to demonstrate your actual worth,” he wrote. “What wearing a suit really indicates is — I am not making this up — non-conformity, one of the gravest of sins. For extra excitement, the rules are unwritten and ever-changing, and you will never be told how you screwed up.”
Founders back up their faulty hiring practices with faulty logic. “It’s so hard to get in, if you get in you must be good,” Bueno said. “But those two statements don’t support each other.”
Some students of color training to code have already caught a glimpse of how the mirror-tocracy functions.
OPENING THE DOOR
Eight years ago, Kimberly Bryant moved to San Francisco to work in biotech. She moved to the city because she believed it to be more racially and economically diverse. She worked adjacent to Bayview Hunters Point, and has since revised her view of the city as a welcoming multicultural environment.
Instead, she found a city with an African American population dwindling below six percent in a city of over 800,000, and a gutted middle class. Latinos are moving out in greater numbers too. Over the last decade, 1,400 Latinos left the Mission District, according to a recent report on displacement by Causa Justa / Just Cause. In the same time, 2,900 white residents flooded in.
The displacement data reveals a significant parallel: The diverse ethnic groups Silicon Valley lacks in its employed ranks are the very same ethnic groups being priced out of San Francisco.
Seeking to mitigate the ethnic and gender disparity in tech, Bryant formed Black Girls Code, a student mentor and workshop program. It first opened up shop in the Bayview, but has sinced moved on.
“I really saw and experienced the true diversity of the community in Oakland,” Bryant told the Guardian, of the nonprofit’s new home. “It’s just an amazingly incredibly diverse community in terms of race and economy. What San Francisco used to be,” she added, “but is no longer.”
Black Girls Code teaches K-12 students rudimentary coding skills, providing instruction in Ruby and Python. Although companies like Google and others have opened their doors with welcoming arms, she said, convincing her students that the tech world is ready for them has been challenging.
When she brought her young students to an industry event, TechCrunch Disrupt, she dodged a minefield of fratboy-like behavior that made her students feel unwelcome, she said. This is the same event that heralded a prank app called “titstare,” which invited users (presumably male) to upload photos of themselves staring at women’s breasts.
The app was displayed on a stage before some of the most influential players in the tech industry, but Bryant’s students were in the audience too.
“They were shocked, like everyone there. It was disconcerting for the parents and the girls,” she said. Though she’s careful not to overplay the damage done (the girls “laughed awkwardly,” she said), the takeaway of the conference was that women and girls were not the intended participants. “It’s like a frathouse. I thought, ‘oh my god, this is like college all over again. This sucks.'”
At Mission and 19th streets sits MEDA, a nonprofit that has long worked to help Mission residents gain a foothold in San Francisco workplaces. This begins even in the lobby, where a small kitchenette in the corner plays host to a chef who mixes up a mean ceviche, with spices admittedly leaving this reporter in tears. He aspires to open his own restaurant, and MEDA is helping him get there.
The upstairs houses a group of students called the Mission Techies. They seek support in their aspirations to enter the tech industry, but for them the dream may be further off than the chef’s.
Gabriel Medina, policy manager at MEDA, doesn’t mince words. These are the “challenge” kids, he said, but they’ve done him and program manager Leo Sosa proud.
The Mission Techies pull apart computers to learn about their innards.
Sosa described a visit from Google and Facebook engineers who taught his students rudimentary coding skills. One student, Jamar, was so engrossed in programming that one engineer asked: “Is he okay?!”
“Jamar is on the coding program, [and he’s] on fire,” Sosa told the Guardian, while sitting in a MEDA office.
But students like Jamar, an African American San Franciscan, face an uphill battle before they ever get to the step of applying for a job like one at Google.
After visiting some tech offices, the students felt less sure of themselves.
“They were like ‘I don’t see no black guys, I don’t see no Latinos. Leo, do you really think I can get a job here?'” Sosa told us. For them, the mirror-tocracy did not reflect an image they recognized.
By many measures, MEDA’s Mission Techies program is a success, taking kids of modest means and equipping them with digital skills that can aid their employment prospects. Mission Techies, Black Girls Code, and other programs such as Hack Reactor and Mission Bit all nip at the heels of the education pipeline leading to tech industry employment. They also share a common focus: They’re educating largely minority populations, often low-income, and located in the Bay Area.
The solution to tech’s diversity problem and to San Francisco’s displacement may spring from the same well: educate the people who live here to work in the local industry. But in order to do that effectively, afterschool and summer programs alone won’t do the trick.
The schools themselves need disruption.
WORKING TOGETHER
In the midst of the tech hub, the San Francisco Unified School District finds itself surrounded by tech allies. Still, change comes slowly.
Only five of SFUSD’s 17 high schools have computer science courses. Ben Chun, an MIT graduate and former computer science teacher at Galileo High School, told us the outlook is bleak without digital training in schools. Though kids sometimes teach themselves programming at home, most low-income students don’t have that opportunity.
“It’s a privilege thing,” he told us. If you have access to computers at home, you’re more likely to tinker and teach yourself. Those kids are more likely to be the Bill Gates of the future, he said, the self-starters and early computer prodigies.
“If you don’t have those things in place,” he said, “there’s a zero chance it will be you.”
When he first got to Galileo, his computer teacher predecessor taught word processing. But a lot has changed since 2006.
Partovi took his successes at Facebook and Microsoft and parlayed his money into a nonprofit called Code.org. The organization created its own coding classes for kids as young as 6, and compelled 30 school districts nationwide to create computer science courses based on its work.
Code.org’s tutorials have been played by millions of students.
Now it has its sights set on SFUSD’s 52,000 students, potentially solving tech and the school’s problems at once.
“It would for sure level that diversity gap,” Partovi told the Guardian. “All of the data released from Google, Yahoo, and others show a male-dominated industry. The pipeline of educated kids is actually much more diverse.”
But integrating tech in the district is slow, and likely years away. The district needs state standards to require computer science, something SFUSD Superintendent Richard Carranza has already lobbied Gov. Jerry Brown to change.
“The demand [for computer science classes] is coming from everywhere,” Carranza told us, including parents, students, the tech industry, and city leaders.
“What makes it a game changer is the partnership with our tech partners,” he said. “It gives our students the opportunity to interact elbow to elbow with people doing computer science out in the real world.”
But the tech workers those students are interacting with, though well meaning, remain the domain of the brogrammers. Will they hire SFUSD graduates with computer science skills when and if they’re ready? Will they be the right “culture fit?”
“There’s definitely a libertarian thread, a free market, red-toothed nature of things [in tech],” Bueno told us. “Talking to people in unguarded moments, that definitely leaks out. You’re not going to convince anyone by singing kumbaya and holding hands.”
But logical tech workers need look no further than the current numbers facing Silicon Valley to see the need to reach beyond their in-groups: 1.2 million new tech jobs will be created by 2020, studies from the US Department of Labor show. At the same time, 40 percent of the United States will be Latino and black by 2040.
When the minority is the majority, the brogrammers may become a dying species.
Listings are compiled by Guardian staff. Submit items for the listings at listings@sfbg.com. For further information on how to submit items for the listings, see Selector.
WEDNESDAY 16
“The James Webb Space Telescope: Science Potential and Project Status” Randall Museum Theater, 199 Museum Way, SF; www.randallmuseum.org. 7:30pm, free. Tom Greene of NASA Ames Research Center discusses the highly advanced James Webb Space Telescope.
“Lyrics and Dirges” Pegasus Books Downtown, 2349 Shattuck, Berk; www.pegasusbookstore.com. 7:30pm, free. Monthly reading series curated by Sharon Coleman, with Joyce E. Young, Monica Zarazua, Joshua McKinney, Katayoon Zandvakili, Rusty Morrison.
Celeste Ng Book Passage, 1 Ferry Bldg, SF; www.bookpassage.com. 6pm, free. The author shares Everything I Never Told You, her debut novel about a mixed-race family in 1970s Ohio.
THURSDAY 17
“The Heights of Birding in Colombia” First Unitarian Universalist Church, 1187 Franklin, SF; www.goldengateaudobon.com. 7-9pm, $5. Photographer and birding instructor Bob Lewis shows images of birds he observed in the Colombian mountains. Sponsored by the Golden Gate Audobon Society.
LaborFest 2014 Meet at M stop at 19th and Holloway, SF; www.laborfest.net. 2-3pm, free. Park Merced Housing Walk led by members of the Park Merced Action Committee. Also 518 Valencia, SF. 7pm, donations accepted. “FilmWorks United: International Working Class Film and Video Festival:” “The Plundering” (Ressler, 2013), “Made in the USA: Tom Hudak’s Plan to Cut Your Wages” (Gillespie, 2013), “Judith, Portrait of a Street Vendor” (Pirana, 2013),” and “High Power” (Indulkar).
FRIDAY 18
“Bay Area Now 7” opening night party Yerba Buena Center for the Arts, 701 Mission, SF; www.ybca.org. 8-11pm, $12-15. Celebrate the opening of YBCA’s signature triennial, an exhibit highlighting works by local artists who capture “the spirit of now,” with tunes by Honey Soundsystem.
LaborFest 2014 First Unitarian Universalist Church, 1187 Franklin, SF; www.laborfest.net. 7pm, donations accepted. “FilmWorks United:” Empire of Shame (Hong, 2013).
SATURDAY 19
“East Bay SPCA Pet Adopt-a-Thon” Jack London Square, Washington at Embarcadero, Oakl; www.jacklondonsquare.com. 10am-3pm, free. Meet your new best friend at this event highlighting East Bay adoption agencies — and the dogs, cats, bunnies, rats, guinea pigs, birds, and reptiles they care for that need new homes. The event also features canine demos and $10 microchip implants.
“GeekGasm” Club OMG, 43 Sixth St, SF; geekGasm.eventbrite.com. 9pm-2am, $5 (free with advance RSVP and before 11pm). Let your inner geek out with fellow nerds, dorks, cosplayers, furries, sci-fi fans, gamers, and gaymers at this party, which features dancing, a costume contest, drink specials, and more.
LaborFest 2014 ILWU Local 34 Hall, 801 Second St, SF; www.laborfest.net. 10am-1pm, free. “Life and Death! The Attack on OSHA, Workers Health and Safety, and Injured Workers” public forum. Also National Japanese American Historical Society, 1684 Post, SF. 2pm, free. “ILWU and Japanese Americans” presentation. Also ILWU Local 34 Hall. 7:30pm, donation. “Movement Energy: A History of May Day and the Eight Hour Day,” performance by the Rockin’ Solidarity Chorus, Sat, 7:30.
Sara Lautman Cartoon Art Museum, 655 Mission, SF; www.cartoonart.org. 1-3pm, free. The July cartoonist-in-residence shares and discusses her work.
“Meet Your Maker” David Brower Center, 2150 Allston, Berk; www.browercenter.org. Noon-6pm. Free. Celebrate the alternative economies of the Bay Area at this event featuring artisans from Treasure Island Flea, educators from Institute of Urban Homesteading, Urban Ore scavengers, and more, plus a craft market, food trucks, workshops, presentations, and more.
SUNDAY 20
“How a Chinese Game Shaped Modern America” Contemporary Jewish Museum, 736 Mission, SF; www.thecjm.org. 1-2pm, free with museum admission ($10-12). Stanford’s Annelise Heinz discusses mah jongg’s journey from China to America’s Jewish community, with a focus on the Catskills and San Francisco. Part of the CJM’s new exhibit, “Project Mah Jongg.”
LaborFest 2014 First Unitarian Universalist Church, 1187 Franklin, SF; www.laborfest.net. Noon-2pm, free. Reception for “Union Artists and Labor Art,” with works by Attila Cziglenyi, Carol Denny, David Duckworth, and others. Also 240 Second St, SF. Noon, free. “Irish Labor History Walk.” Also Niles Station, 37001 Mission, Fremont. 2pm, $7-12. “All Aboard the Niles Canyon Train and Films,” train ride and film screening at the Edison Theater.
TUESDAY 22
“We Are CA: Glen Denny and Yosemite in the Sixties” California Historical Society, 678 Mission, SF; www.californiahistoricalsociety.org. 6-8pm, $5. Veteran Yosemite climber Denny shares photographs and recounts his experiences climbing with the 1960s icons of “Camp Four.”
Although the mid-Market Street headquarters of Twitter was targeted with protests by the city’s largest employee union this spring, Zendesk was technically the first company to take advantage of what came to be known as the Twitter tax break.
Crafted by Mayor Ed Lee along with Sups. David Chiu and Jane Kim in 2011, that controversial policy lured the elite tech sector to the central core with the promise of payroll-tax exclusion — leading progressives to deride it as corporate welfare, served up to an industry already soaked in venture capital.
In the years since, the property values around mid-Market have swelled — ushering in the revitalization fervently desired by Lee and his political allies, but also putting the squeeze on long-term tenants who couldn’t keep pace with rising rents.
Some area nonprofits have been sent packing for the East Bay, while a group of relatively low-income tenants residing at nearby 1049 Market Street continue to float in a state of limbo, having been threatened with evictions that haven’t been carried out yet but also haven’t been rescinded.
When members of the media were invited to survey Zendesk’s sprawling new corporate headquarters July 9, spanning eight floors of newly renovated office space, I took the opportunity to witness firsthand the mid-Market facelift ushered in by the Twitter tax break.
What we found was a meticulously crafted corporate space populated by hip, well-intentioned employees, who seemed as if they inhabit an altogether different city — maybe a different world — than that of low-income residents living in the surrounding neighborhood.
MAYORAL LOVE
“My, how things change so rapidly,” Mayor Lee said when he took the stage at Zendesk. “Two years ago, [Zendesk CEO Mikkel Svane] and I, and Sup. Kim, were celebrating the expansion from one floor to two floors. And just in literally two years, we’re celebrating a fantastic IPO.”
Zendesk’s May 15 IPO was hailed by investors as a sign that cloud computing stocks could perform well, raising just under $100 million on its first day of public trading.
Lee thanked Zendesk for its contributions to the community. The company had just announced its intention to open up its basement space for community programs and dinners for neighborhood groups, in partnership with area nonprofits and childcare providers. Under its community benefit agreement with the city, a required tradeoff for the tax break, the company commits volunteer service to activities like serving hot lunch to destitute clients at the St. Anthony’s Foundation.
“Already, being a major resident in mid-Market, I congratulate you on working so closely with our Office of Economic Development staff, our … nonprofits, our arts community,” the mayor said. “This building compliments so much of what I’ve envisioned for Market Street — to bring it back as a grandiose place. “
“The sense of being part of San Francisco reverberates with all your employees,” he added with an approving smile.
Zendesk, which sells customer-service software that’s widely used even if not well known outside the tech industry, has more than tripled in size in just a few years, expanding from 80 employees to more than 360 since 2011.
The grand opening bash was held on the basement level, equipped with a stage, amphitheater, and bar, with natural light filtering through the first floor. The mood was celebratory, with catering staff circulating through with trays of hors d’oeuvres and fresh-baked treats. Lee and Sup. Kim mixed with the crowd and delivered short speeches. Zendesk staff even presented Kim with a birthday cake, candles ablaze.
The unveiling of Zendesk’s crisp new headquarters was paired with the launch of a new initiative, the Mid-Market Business Association. With membership including Zendesk, Spotify, Zoosk, Benchmark Capital, WeWork, Silicon Valley Bank, and Koch Ventures, the newly formed group aims to spur even more business activity along Market Street between 5th and 10th streets.
It “came about organically,” explained Zendesk’s Tiffany Apczynski, who heads up the company’s corporate responsibility programs. “We’re all neighbors.” The Mid-Market Business Association “is mainly going to be focused on getting ground-floor retail space filled,” she added.
I asked Svane about working in the neighborhood. “The week we moved in, there was a murder,” right across the street from its first Mid-Market space, he said. “We did this thing, like if you’re working after dark, just take a cab — we’ll pay for it.” Three years later, “we’ve had no incidents,” Svane said, adding that he was glad to have Zendesk staff engage in community volunteer work. “It’s great to get people out there,” he said. “Like it’s really changed people — it makes them smarter, more well-rounded.”
RAGS TO RICHES
Mid-Market used to be the type of neighborhood that middle-class white people might refer to as “gritty.” Years ago, then-Mayor Gavin Newsom bemoaned the stubborn blight of the area, vowing to do better, and Lee echoed that sentiment in the early days of his administration.
A few short years later, some long-term nonprofits and businesses have found it tough to adjust to the new market forces. And with venture-capital firms and tech companies flooding in, the contrast between rich and poor is jarring. In the area surrounding Zendesk’s gleaming new headquarters, it’s typical to see homeless people rummaging through shopping carts, or curled up in sleeping bags in storefront doorways.
Not far from Zendesk’s new headquarters, on Golden Gate Avenue, the Tenderloin Outpatient Clinic has found it must relocate due to a steep rent increase. Cindy Gyori, executive director of the clinic’s parent organization, Hyde Street Community Services, said she’s hoping to move the clinic to medical offices on Nob Hill but it has run into neighborhood resistance. The clinic, which has been in operation since 1975, serves about 1,200 clients per year. If the pending move doesn’t go as planned, then the clinic could be forced to shut its doors, Gyori said.
A city analysis from several years ago showed that a full 31 percent of the households in the densely populated Mid-Market neighborhood, mostly single-room occupancy hotels, earned less than $15,000 a year, making it three times as poor as the citywide average.
A Central Market Economic Strategy for revitalizing the area, published by the city’s Office of Economic and Workforce Development in November 2011, listed guiding principles voiced by community stakeholders at the time. Among them was: “Prevent displacement of existing residents and businesses.”
But in the face of market forces, revved up by the high interest in mid-Market created by the payroll tax exclusion zone, those guiding principles haven’t exactly panned out.
Last fall, a mass eviction facing long-term tenants at 1049 Market made headlines. Attorney Steve Collier, of the Tenderloin Housing Clinic, continues to represent some of those tenants. While the eviction notices they received have long since expired, they haven’t been kicked out, but they also haven’t been given assurance that they can stay.
“For some reason the landlord hasn’t been accepting rent,” Collier said. “The tenants know to save the rent money. But it’s always hard for people who are low income to save.”
Just before he left after touring Zendesk, we caught up with Mayor Lee to ask him a few questions, including whether he thought enough was being done to assist nonprofits being displaced from the area.
“We have a lot of focus on how to help nonprofits,” Lee responded, adding that he thought a solution was to “create even more public-private partnerships between nonprofits and tech,” and that “we need to bridge that more quickly.”
DANISH MODERN-SLASH-NIRVANA
Zendesk’s new headquarters is a veritable fortress, housed in a 1909 building at 1019 Market that was once a department store. Renovations were completed in June, exposing historic wood beams and brick walls to complement the spacious workspaces, all featuring white and green hues for consistent corporate branding.
The building renovations cost $9.5 million, the same amount as the 2012 purchase price. When a reporter asked Jay Atkinson, a managing partner at building owner Cannae Partners about the sale price, Atkinson gave the number and then quipped, “Less than it’s worth today.”
Compared against the recently surging property values, that $19 million investment might now be considered small potatoes.
Just across the street, the recent flip of Zendesk’s other Mid-Market office space, at 989 Market, underscores the dramatic commercial property value increase in what the buyer termed the “rapidly-evolving Mid-Market district.”
ASB Real Estate nabbed the six-story building — which Zendesk shares with Zoosk, a social dating service — for $61.3 million. As the San Francisco Business Times reported, that’s more than double what the building sold for in 2011.
“Led by Twitter, Spotify, Yammer, and Intuit, new and expanding technology companies have made the Mid-Market District a location of choice,” ASB President Robert Bellinger said in a prepared statement, “leading to a market renaissance, from which our investors can take advantage.”
Back at 1019 Market, side office nooks and conference rooms were interspersed throughout the new space, with signs taped into the windows bearing enigmatic labels such as S’MORES, or FEATHER.
Ainsley Hill, a Zendesk staffer, led reporters on tours of the newly renovated space, describing how it had been configured “to our core brand values: airy, humble, valued, uncomplicated.” The aesthetic, Hill explained, might be described as “Danish Modern,” true to the company’s Scandinavian roots.
Danish Modern with a splash of California-style zen, you might say. The corporate logo is a cartoon Buddha wearing a telemarketers’ headpiece. Ergonomic workspaces are highly prioritized at Zendesk: That means adjustable desks, which can be lowered to the point where “you can actually sit on an exercise ball, and still be ergonomic,” Hill noted. Some choose to raise their desks and stand upon memory-foam pads (priced at $100 a pop) to support spinal health while working.
Svane, Zendesk’s genuinely approachable and gregarious CEO, could not express enough appreciation for the mayor. “Ed Lee has just been such a fantastic supporter,” he said. “I got his number, he got my number. He’s very hands-on with these things. Ultimately, we all have the same goal — to see mid-Market become a fantastic space.”
I asked Svane what he thought about the trend of displacement that had been affecting some long-term tenants in the area, particularly nonprofits. “As this neighborhood becomes more popular, it’s really hard to keep rents down,” he said. “There will be change. It’s hard to avoid.”
The J-POP Summit returns to Japantown Sat/19-Sun/20, unleashing a riot of Japanese pop culture. We’re talking a fashion competition sponsored by frill peddlers Baby, The Stars Shine Bright (theme: “Toyland Parade”); an amateur dance contest in homage to Japanese meme “ODOTTEMITA” (which means, apparently, “I tried dancing it”); a film festival (heavy on the anime); and musical performances (including girl-group sensation Tokyo Girls’ Style, who also have two movies screening the fest, and the intriguingly-named girl-punk trio Akabane Vulgars on Strong Bypass). Plus: cosplay galore, a scavenger hunt, and a Pocky eating contest — first prize is a year’s supply. www.j-pop.com
PHONO DEL (ACTUAL) SOL
Thao Nguyen and the Get Down Stay Down’s performance was a stand-out at this year’s Phono del Sol festival, which went down July 12 in Potrero del Sol Park. Other highlights: Nick Waterhouse with a full backing band, SF’s own A Million Billion Dying Suns, and lots of super-happy little kids and dogs running around on a surprisingly warm San Francisco summer day. See our Noise blog at SFBG.com for more. PHOTO BY ERIN CONGER
FAREWELL, TOMMY
Tommy Ramone, the last surviving member of the original Ramones, died on Friday, July 11 at the age of 65, after battling stomach cancer for the past year. The drummer, whose real name was Thomas Erdelyi, was the iconic punk band’s de facto manager for the early years of their career. In an early press release-bio the likes of which we would be thrilled to receive today, he wrote “The Ramones all originate from Forest Hills and kids who grew up there either became musicians, degenerates, or dentists. The Ramones are a little of each. Their sound is not unlike a fast drill on a rear molar.”
BAY GUARDIAN WINS
Congratulations to Bay Guardian Art Director Brooke Ginnard and her collaborating artists, who took first place for cover design in the annual Association of Alternative Newsmedia Awards. AAN represents all alternative newsweeklies in the country. www.aan.org
ART HERE NOW
Yerba Buena Center for the Arts’ essential, sprawling seventh triennial survey of the local art scene, Bay Area Now, opens with, what else, a big party Fri/18 (8pm-11pm, $12–$15. YBCA, 701 Mission, SF. www.ybca.org/ban7). BAN7 is even more inclusive than ever this year, with a host of artists exhibiting in a big, museum-like show for the first time, and programming that includes, performance, film and video, visual arts, and community engagement. “BAN7’s core idea is to decentralize the curatorial process, and centralize the public presentation of some of the most exciting artistic voices in the region today,” the curators say. Even Bay Guardian Senior Arts Editor Cheryl Eddy got into the act, programming the eternal Death Wish III on August 9, featuring a score by Jimmy Page.
QUAN VERSUS DOG
Oakland Mayor Jean Quan already faces a small army of rival candidates for November — more than 20! — and her newest opponent may be the strongest (cutest?) challenger yet: Einstein the dog. Yes, this pup is for the 99 percent, and his website claims the furry candidate endured Occupy Oakland’s flashbang grenades “just a few paw-strides” away from him. “Woof!” is a good campaign slogan, right? www.einsteinforoakland.org
GOOGLE NEXT DOOR
Looks like Google‘s newest Street View will be San Francisco’s Embarcadero. The tech giant just bought an Embarcadero high-rise for $65 million, just spitting distance from the One Market Plaza, where they also leased new space. Now that more Googlers are in SF proper, will they ditch the UFO buses for Muni?
PARKER THE REPUBLICAN?
Sean Parker, former Facebook president and Napster co-founder is gearing up for his new title: uncle elephant moneybags. Parker is now throwing gobs of money at national Republicans, Politico reported, giving over half a million dollars to Senate and House conservatives. Closer to home, Parker contributed $49,000 the right-leaning Restore Transportation Balance in San Francisco group, which feels bikes and Muni get too many perks in the city. Yeah, right.
NEW PARK, NO HOUSING
The Francisco Reservoir, located near Russian Hill, has been sitting there unused and taking up space since about 1940. Thanks to a deal between the San Francisco Public Utilities Commission and the Recreation and Parks Department, the decommissioned reservoir will finally be converted into a park. Bravo! But there’s one small catch. Apparently nobody ever considered using a portion of this sprawling parcel, considered “surplus property” owned by the SFPUC, for affordable housing. City law mandates this as first-priority use for “surplus” land, but the SFPUC is exempt from the rule. John Stewart, who builds affordable projects but has no interest in the property, said he tried to float the idea of housing for teachers and firefighters as part of the Francisco Reservoir plan. But surrounding neighbors, who raised more than $9 million through their own connections to put toward the park, responded with what he termed “polite silence.” In the area he thought might work for housing, their plan showed a dog run.
San Francisco is getting a new park – but the deal has left some wondering why a small portion of the new parkland couldn’t have been set aside to build housing for teachers and firefighters.
On July 8 members of the San Francisco Public Utilities Commission voted unanimously, amid a flurry of congratulatory exchanges, to transfer the Francisco Reservoir to the Recreation and Parks Department. Nearly everyone who weighed in during public comment praised the decision to convert the reservoir site into open space for the surrounding neighborhood. Located near Russian Hill on Hyde Street just above Bay Street, the Francisco Reservoir has gone unused for the better part of century.
One speaker did offer some balance. “We have the mayor and the Board of Supervisors constantly hitting us over the head saying we need housing,” she pointed out. “We have to start somewhere.”
Under city law, publicly owned “surplus property” – as the Francisco Reservoir is categorized – must be considered for affordable housing before city departments may let it go for any other use.
Yet during years of discussion between neighbors and city officials to discuss this 4-acre parcel, the idea of building affordable housing apparently didn’t even receive minimal consideration.
Instead, the affluent neighbors wanted a park – and managed to raise nearly $10 million in private funding through several neighborhood associations to help make it happen. That money has been pledged for a park endowment, to cover development and maintenance purposes.
According to City Attorney spokesperson Matt Dorsey, the city’s “enterprise agencies” are exempted from the affordable housing requirement in the surplus property ordinance – this applies to surplus parcels under the ownership of the Port, the SFPUC, the SFMTA, and the Recreation & Parks Department.
A memorandum of understanding approved by the SFPUC, which must win the approval of the Board of Supervisors and the mayor before being finalized, grants some $10 million from the Recreation and Park Department’s open space fund to purchase the Francisco Reservoir from the SFPUC.
Open space is generally a wonderful amenity in an urban environment, particularly for land that hasn’t been used in decades. As Jan Blum noted at the hearing, the parkland will provide environmental benefits such as “habitat for migratory birds, as well as local wildlife.”
But the city’s decision to convert surplus property to open space comes just as Mayor Ed Lee is seeking to build 30,000 new housing units to stem the affordability crisis.
John Stewart, a prominent affordable housing developer appointed to serve on Lee’s affordable housing task force, told the Guardian that he got nowhere when proposing the idea of affordable housing construction for a small portion of the Francisco Reservoir parcel.
Stewart, who emphasized to the Bay Guardian that his company has no financial ties nor interest in developing a project there, penned an editorial for the San Francisco Business Times earlier this year on the Francisco Reservoir transfer, asking, “Why not expand the conversation to include the subject of housing?”
The idea was not well received. “I did not even propose tax-credit, tax-driven, very low income housing,” Stewart noted. “I proposed moderate-income, for teachers and nurses.”
The neighborhood plan showed the area at the end of the parcel, where Stewart thought housing could go, as a dog run.
Sup. Mark Farrell, who represents District 2, where Francisco Park would be located, was deeply involved in discussions about converting the reservior into a park. Farrell’s office didn’t return calls seeking comment, nor did the SFPUC.
“Sup. Farrell didn’t want me speaking to these groups,” Stewart said. “Nobody said, come by, come to our coffee klatch, make the case and we’ll at least talk it over. Nobody wanted to discuss it – that was clear. There was polite silence. But there was silence,” he said. “And their view is – and it’s understandable – they really want to have the whole thing.”
Opponents of the anti-speculator tax that will appear on the November ballot blasted the proposal in a City Hall hearing yesterday [Thu/10] — pledging to defeat the measure in court even if voters approve it — but they were overwhelmed by a strong turnout from supporters who said real estate speculation drives up the cost of housing without adding any value.
“We can sue you in court on the many of the unconstitutional aspects of this and we will do that,” Janan New, director of the San Francisco Apartment Association, said of the measure that would charge a 24 percent tax on properties flipped within a year of purchase down to a 14 percent tax if flipped within five years.
New and other allies — including San Francisco Association of Realtors, Small Property Owners of San Francisco, and Sup. Katy Tang — claimed that the measure is illegally retroactive because it affects those who recently bought property and that it doesn’t account for people who need to sell their properties because of job loss or other life changes.
“This is almost tantamount to a confiscation of property,” Peter Rich of SPOSF said at the hearing.
But Sup. David Campos — who placed the measure on the ballot along with Sups. Eric Mar, Jane Kim, and John Avalos — refuted allegations that the measure isn’t legally sound and carefully questioned City Attorney’s Office staff to clarify the laws that allow for the measure.
“I know there’s a lot of ulterior motives here because we do know this is going to be challenged in court, so I want to be very clear,” Campos said in response to a line of questioning from Tang, who continued to maintain, “So it’s retroactive in a sense” after being told by the deputy city attorney that it wasn’t retroactive because the tax only applies to future property sales.
The anti-speculation tax was first introduced by then-Sup. Harvey Milk shortly before his assassination in 1978 (Dianne Feinstein killed the measure after becoming acting mayor), and it was revived this year during a series of tenant conventions and sponsored by Mar.
“What we’re proposing is very reasonable to deal with the affordable housing crisis,” Mar said at the hearing, noting that it exempts single-family homes, projects larger than 29 units, and sales triggered by the death of the property owner. “It’s been crafted with enough exemptions to protect the small guy and really go after the profiteers.”
During the public comment period, where supporters on the measure vastly outnumbered opponents, several speakers referenced Harvey Milk and said housing in San Francisco wouldn’t be so expensive today if the measure had passed back then, a time when evictions and displacement were also on the rise.
“He was assassinated before it came to fruition. The parallels to that time and today are striking,” testified Tom Temprano, president of the Harvey Milk LGBT Democratic Club, who urged supervisors to “honor the legacy of Harvey Milk by passing this thoughtful and well-crafted legislation.”
Brian Basinger, head of the AIDS Housing Alliance, played old video footage of Milk talking about the measure back in 1978, shortly after he was evicted from his Castro Street camera store by a landlord seeking higher rents, noting that profiteering forces San Franciscans to spend too much on housing and have too little left over for other needs.
“So when you look at that, it’s going to affect the larger economy,” Milk said of real estate speculation.
Gen Fujioka, who works at Chinatown Community Development Center and spoke for San Franciscans Against Real Estate Speculation, cited recent evidence of properties snapped up by speculators and quickly flipped for profits of 50 percent of more.
“Basically, what we’re seeing today is an escalation in the sales prices of multi-unit buildings beyond what people can pay in rent,” Fujioka testified, noting how that essentially forces landlords to evict rent-controlled tenants to make the investments pencil out. “That kind of price escalation is causing instability in our communities.”
But opponents lashed out at the measure and the characterization that they were profiteering in ways that hurt people. “It’s a housing tax and it doesn’t make sense to have a housing tax in the most expensive city in the country,” said Jay Chang of the Association of Realtors.
Aaron Jones said he and his wife invested their children’s college savings in a small apartment building, and that they’re good landlords who should be able to sell the property when they want to without penalty.
“We can’t sell until 2017 with this retroactive, punitive tax,” Jones said, saying there were many other small investors like him who were afraid to speak up because “in San Francisco, to be an investor — not a speculator — is to be the devil.”
But supporters of the measure say their intention isn’t to demonize property owners but to do something about the eviction and displacement crisis that is changing the face of the city, and to create a disincentive to bad behavior.
“It’s really the most vulnerable people who are being affected by evictions,” said Erin McElroy of the Anti-Eviction Mapping Project, citing her group’s research showing 72 percent of recent evictions have been of the elderly or disabled.
“Speculation is the commodification of housing and housing is essential,” said Chris Durazo of the Veterans Equity Center.
Campos said most landlords should support the measure as check against speculators that are pushing up the price of housing, triggering evictions, and creating a divisive politcal climate: “Speculators are giving landlords in San Francisco and property owners in San Francisco a bad name.”
Plans to ease San Francisco’s often overlooked home foreclosure crisis will have to wait a bit longer. The San Francisco Board of Supervisors this week delayed a resolution that would show the city’s “intent” to save underwater mortgages in favor of a resolution that might actually have begin to intervene in underwater mortgages.
“The idea of people losing their homes is very disheartening,” Sup. John Avalos told the Guardian. “I’m looking forward to an ordinance that would actually allow San Francisco to join a JPA [Joint Powers Authority] and enable us to have leverage over banks.”
“The resolution in support of Richmond’s work is not as timely as it was and I want to make sure I can work with you colleagues about the relationship around how we can actually have an ordinance to join a JPA with the city of Richmond and have all of our questions answered as we’re going through that process,” he told the Board of Supervisors on Tuesday.
Eminent domain is a law that allows the government to purchase private property for public use, including nontangible assets such as mortgages. The use of eminent domain to acquire underwater mortgages (when mortgage payments that exceed the value of homes) could be a godsend for homeowners who have been bamboozled by predatory lenders.
Yet Richmond, receiving national attention for the gutsy strategy, faced intense criticism—even federal lawsuits—from banks and financial institutions of late. Certain banks and financial institutions warned lending would halt if the strategy were attempted. Although Richmond recently braved attempts to quash its principal reduction plan, a JPA with San Francisco would allow both cities to leverage some power over banks.
“One city doesn’t have the resources to do it alone,” Sup. David Campos, who co-sponsored the resolution, told the Guardian. “Collectively joining forces can do it, and can be strengthened by taking a regional approach.”
Yet Avalos explained that he has already experienced disagreement from banks, including Well Fargo. “We are swimming against the tide—against the institutions of our banks that have a stronghold on how local loans and mortgages are kept at high interest rates, on the ability homeowners have to renegotiate loans, and on how we can improve the actual principal of our loans,” he told the Board of Supervisors, which was met by public applause.
“People don’t feel a sense of urgency about the housing crisis, and we need to convince them,” Avalos told the Guardian. “Overall we’re two years from the Occupy movement that challenged banks, and people have forgotten the feeling of the time where people questioned how much power banks had over the loan modification.”
In San Francisco, focus has indeed shifted toward out-of-control rents, though fallout from the mortgage crisis still persists. Over 300 underwater mortgages are concentrated in San Francisco’s working class communities, 90 percent of which contain predatory features, according to the Mortgage Resolution Partners, a company helping Richmond administer and finance their principal reduction plan.
Although roughly 64 percent of San Francisco residents are renters, some working class community member still own their homes, and some, like Carletta Jackson-Lane—who has lived in District 10 for 27 years and who spoke at this week’s meeting during public comment—feels that the African American community has been hit especially hard by foreclosures.
“Don’t forget that foreclosures are directly related to the outward migration of African American families out of San Francisco,” she said. “The reality is that in the Mission, there’s a different impact because they were mostly renters.
“The other impact in the African American community—especially in District 10—is that they were single family property owners, so when the foreclosure crisis happened, it knocked them out,” she explained. “And that’s multiple generations.”
Avalos sent the resolution back to committee for modification, and he expects a resolution to be voted on in August. “I don’t want San Francisco to be a place where only the wealthy can survive,” Avalos said. “But in order to make serious changes we have to break a few eggs.”
When asked what those eggs were, he responded, “What currently is.”
Construction on the first 1,000 of up to 8,000 new homes planned for Treasure Island could begin as soon as next year after the State Appeals Court this week rejected a challenge of the project’s environmental impact report by Citizens for a Sustainable Treasure Island, a grassroots group led by former supervisor Aaron Peskin.
The group challenged the project’s unanimous 2006 approval by the Board of Supervisors after its terms were modified the next year by the developers, Wilson Meany and Lennar Urban, to increase the number of homes and decrease their affordability. The project Peskin helped approve was 6,000 homes, 30 percent of them affordable, but now it’s up to 8,000 homes, 25 percent affordable.
More recently, stories by the Center for Investigative Reporting/Bay Citizen, San Francisco Chronicle, and others have also found evidence of lingering radiological contamination on the island from its days as a US Navy base, something that Peskin told us should raise concerns about the project.
“Obviously, we are disappointed in the court ruling and are very concerned it ignores the now widely reported news that Treasure Island is much more contaminated, by radiologically contamination, than we knew,” Peskin told us. As for whether his group intends to appeal the case to the California Supreme Court, he said, “We are assessing our options.”
Wilson Meany principle Chris Meany didn’t immediately return Guardian calls for comment (we’ll update this post if and when we hear back), but in a press release, he said, “After several years of unnecessary and costly litigation, we can finally begin building more homes for people who want to live in San Francisco.”
In addition to the homes, the project includes up to 500 hotel rooms, 450,000 square feet of retail space, 100,000 square feet of office space, and 300 acres of open space. To compensate for projections that rising seas caused by global warming would inundate the artificial island by the end of the century, its height will be raised substantially, with the EIR noting there will be about 100,000 trucks of landfill coming over the Bay Bridge during construction.
Traffic generated by the project has been a major concern of transportation officials from the beginning. San Francisco Transportation Authority Executive Director Tilly Chang said the challenge was, “How do you keep the Bay Bridge flowing and not muck up traffic?”
The plan calls for expanded bus and shuttle service to Treasure Island, new ferry service from the Ferry Building, and both expensive parking on the island for non-residents and a toll for driving onto the island, most likely set at $5, Chang said. The ferry service is set to launch around when the first phase of housing construction is complete, probably in 2018.
Meanwhile, work has already begun on a project to replace and improve the freeway ramps at adjacent Yerba Buena Island and the bridge that connects them to Treasure Island. SFTA Deputy Director for Capital Projects Lee Sage said the ramps will give much more time for cars to slow down or accelerate as they enter or exit the freeway there.
“It’s going to be very complicated, but we’re on target,” he said, estimating the eastside ramps will be done in 2016 and the westside ones a few years later.
Just last month, the Board of Supervisors approved terms accepting Treasure Island from the US Navy. Later this month assuming that the issue of radiological contamination doesn’t derail the transfer — the city and project developers are scheduled to pay the Navy $55 million for Treasure Island and complete the deal.
But Peskin’s group and its attorney Keith Wagner, objected to the transfer in a June 25 letter to the Navy, calling for more studies on the substantially increased density of development on the island and more thorough testing and cleanup of contamination.
Wagner wrote, “In summary, the Navy’s 2003 EIS, on its own terms, did not evaluate the true nature of the City’s far more expansive contemporaneous development plans/proposals, let alone the even more expansive development plans that were ultimately devised and approved by the City in 2011; in the decade since the 2003 EIS was finalized, the Navy has developed significant and substantial new information indicating the nature, scope and severity of radiological and hazardous materials across NSTI that could impact the City’s 2011 development plans.”
Nearly 100 nonprofit workers and their allies, hungry for a raise, marched through the corridors of City Hall today and shouted down the Board of Supervisors at its weekly meeting. “Supervisors can’t you see? Inequality is killing me!” the protesters shouted at the board. Protesters linked arms across the wooden barricade between the supervisors’ seats and the audience, and 11 were detained for their act of civil disobedience.
The nonprofit workers are taking aim at Mayor Ed Lee’s proposed budget, which gives the workers a 1.5 percent cost of living funding increase they say is not enough to offset rising rents, healthcare costs, and other expenses in San Francisco. After doing the math, they say, for-profit contractors are getting as much as a 3 percent boost, which they’re calling a double standard.
Mostly, the workers are feeling exhausted and underpaid. Darien Lomeli, a counselor at Progress Foundation’s Rypins House, helps mentally ill seniors connect with housing services and navigate exceedingly low incomes — but now she says she’s facing those same hurdles herself. Last year, she finally got a 1.9 percent raise, but had no raises at all for over six years.
“We can’t survive on what we’re paid,” she said. Lomeli grew up in San Francisco but was priced out to Redwood City some time ago.
Raw video clips of the nonprofit workers’ Board of Supervisors action today. Alysabeth Alexander of the SEIU is the first speaker, shortly before 11 protesters were cuffed (with plastic) and detained.
But it’s not just about individual challenges, she said, low pay engenders high turnover in the nonprofit sector, which hurts those she helps. “The turnover rate,” she said, “is skyrocketing.”
The homeless seniors she works with need help from people they trust. Navigating services is also exceedingly difficult for trainees, and constantly training new workers is a drain on resources, she said.
— Joe Fitz Rodriguez (@FitzTheReporter) July 8, 2014
Sup. David Campos told the Guardian a cost of living adjustment for nonprofit workers was on the table during budget negotiations, but was eventually dropped. Now he and Sups. Eric Mar and Norman Yee are working on a solution.
“It’s just a conversation at this point,” Nick Pagoulatos, an aide to Mar, told the Guardian. More research needs to be done to find the dollars in the budget that could go towards the funding increases, which the SEIU estimates would cost somewhere near $6.8 million annually. “The timing of when or if [an increase] could move forward is up in the air,” Pagoulatos said.
Cost of living is just the latest in a series of fiscal hits the nonprofit sector has taken to the chin in San Francisco of late. The tech sector boom downtown and in South of Market have raised the rents on many surrounding nonprofits, which some have said led to the closure of over 1,000 nonprofit agencies in San Francisco since 2011. Mayor Lee and the board provided $4.5 million in the 2014-15 budget to offset rent increases for nonprofits in the city.
Listings are compiled by Guardian staff. Submit items for the listings at listings@sfbg.com. For further information on how to submit items for the listings, see Selector.
WEDNESDAY 9
LaborFest 2014 Meet at SW corner of Geary and Laguna, SF; www.laborfest.net. 3-4:30pm, free. “Union Sponsored Affordable Housing in San Francisco: St. Francis Square Cooperative” walking tour.
Kim Stolz Book Passage, 1 Ferry Bldg, SF; www.bookpassage.com. 12:30pm, free. The author and media personality discusses Unfriending My Ex: And Other Things I’ll Never Do.
THURSDAY 10
Kjerstin Gruys Books Inc, 601 Van Ness, SF; www.booksinc.net. 7pm, free. The sociologist discusses her memoir Mirror, Mirror Off the Wall: How I Learned to Love My Body By Not Looking at It For a Year.
LaborFest 2014 518 Valencia, SF; www.laborfest.net. 7pm, donations accepted. “FilmWorks United: International Working Class Film and Video Festival:” Black and White and Dead All Over (Foster, 2013), followed by a discussion on the newspaper industry. Also: Berkeley City College Auditorium, 2050 Center, Berk; www.laborfest.net. 7pm, free. “FilmWorks United:” Coming for a Visit (Tourette, 2013).
Jervey Tervalon Book Passage, 1 Ferry Bldg, SF; www.bookpassage.com. 6pm, free. The author discusses his new thriller, Monster’s Chef.
FRIDAY 11
LaborFest 2014 First Unitarian Universalist Church, 1187 Franklin, SF; www.laborfest.net. 7pm, donations accepted. “FilmWorks United: International Working Class Film and Video Festival:” ASOTRECOL, The Struggle Against Transnationals in Colombia (2013).
“Off Shore: A Live Drawing Event and Fundraiser” Verdi Club, 2424 Mariposa, SF; www.soex.org. 6pm, $15-20. Southern Exposure’s annual “Monster Drawing Rally” fundraiser presents 120 artists drawing in shifts in front of a live audience.
“Punk: Convulsive Beauty” iHeartNorthBeach Art Gallery and Gifts, 641 Green, SF; www.pmpress.org. 5-11pm, free. PM press presents its new book, Dead Kennedys: Fresh Fruit for Rotting Vegetables, The Early Years, by Alex Ogg, featuring photographs by Ruby Ray and art by Winston Smith. Ray and Smith will also be exhibiting their artwork capturing the punk scene, circa 1977-1981.
SATURDAY 12
Tony Gilbert Green Apple Books, 506 Clement, SF; www.greenapplebooks.com. Noon, free. The author reads from Hannah and the Secret Mermaids of San Francisco Bay, alongside a display of original art from the story painted by Gail Weissman.
LaborFest 2014 Meet at 75 Folsom, SF; www.laborfest.net. 10am, free. “San Francisco Waterfront Labor History Walk,” with Lawrence Shoup and Peter O’Driscoll. Also: meet in front of Bill Graham Auditorium, 99 Grove, SF; www.laborfest.net. 10am, $20. “WPA Bus Tour.” Also: Fellowship of Unitarian Universalists, 1924 Cedar, Berk; www.laborfest.net. 7pm, free. Class War CD release party with Redd Welsh. Also: First Unitarian Universalist Church, 1187 Franklin, SF; www.laborfest.net. 7pm, donations accepted. “People’s Voices for a World of Harmony, Peace, and Justice.”
“Writers With Drinks: An Evening of Oversharing About Money” Make-Out Room, 3225 22nd St, SF; www.writerswithdrinks.com. 7:30pm, $5-20. With J. Bradford DeLong, Carol Queen, Farhad Manjoo, Frances Lefkowitz, and Charlie Jane Anders.
SUNDAY 13
“Bookish Beasts” Center for Sex and Culture, 1349 Mission, SF; www.sexandculture.org. Noon-6pm, free. Zine fest featuring authors whose work takes on sexuality, gender, and erotica.
MP Johnson Borderlands Books, 866 Valencia, SF; www.borderlands-books.com. 3pm, free. The author reads from Dungeons and Drag Queens. Attending in drag encouraged!
LaborFest 2014 ILWU 34 Hall, 801 Second St, SF; www.laborfest.net. 10am, free. “Staples, Our Public Post Office, Privativation, and Trust” panel discussion. Also: Manilatown Center, 868 Kearny, SF; www.laborfest.net. 4-7pm, donations accepted. “Revisiting the History of California Agricultural Workers and Filipino Labor” with a variety of speakers.
TUESDAY 15
Anoop Judge Booksmith, 1644 Haight, SF; www.booksmith.com. 7:30pm, free. The author discusses her Bay Area-set novel, The Rummy Club.
LaborFest 2014 Potrero Hill Neighborhood House, Southern Heights at De Haro, SF; www.laborfest.net. 10am, free. Potrero Hill history walk. Also: Modern Times Bookstore, 2919 24th St, SF; www.laborfest.net. 7pm, free. LaborFest Writers read their work. Also: San Jose Improv, 62 Second St, San Jose; www.sjimprov.com. 8pm, donations requested (make free reservations online). “LaborFest Comedy Night” with Will Durst and others. *
OPINION San Francisco is the second most unequal city in the nation. Working and middle-income people and families are being forced to flee the city they love. Between 2010 and 2013, Ellis Act evictions alone increased by 170 percent.
In 2013, a total of 3,662 San Franciscans were served with eviction notices. Over 1,000 of these tenants went to court without lawyers. According to court statistics, 90 percent of landlords hire attorneys, while only 10 percent of tenants have a lawyer. This inequity has made it more difficult for tenants to adequately assert their rights.
To level the playing field, the San Francisco Board of Supervisors Budget and Finance Committee just designated $1 million to fund 10 nonprofit housing attorneys to perform full scope legal services for any tenant facing eviction in San Francisco. We teamed up with tenant rights organizers and attorneys to fight for this budget allocation in order to address San Francisco’s affordability crisis. This funding will ensure that all San Franciscans facing eviction will receive legal assistance if they need it.
Crucial to ensuring economic diversity in this city is protecting our rent-controlled housing stock. Every time a tenant is evicted from his or her apartment, we lose another unit of price-controlled housing that is safe from the current astronomical market rental and sale prices. The board has passed local legislation that helps tenants remain in the city after an eviction, including Sup. Campos’ legislation increasing relocation assistance amounts after an Ellis Act eviction.
However, only the state Legislature has the power to change the law in a manner that would make a large impact on the frequency of evictions. Sadly, last week, Sen. Mark Leno’s bill that would have curbed Ellis Act evictions died in the Assembly Housing Committee. Leno said he will not further pursue the bill this year. Therefore, we must continue to act locally to deal with our housing crisis.
Legal representation for tenants is a crucial part of the fight against displacement. Several academic studies have shown that tenants are five to 10 times more likely to stay in their homes after receiving an eviction notice if they are represented by an attorney throughout the eviction process. Furthermore, having an attorney protects the tenants against abusive practices by landlords.
Tenant advocates report that illegal harassment by landlords is on the rise in an effort to force out tenants without having to resort to the formal eviction process. It is common practice for landlords to attempt to “buy out” tenants by offering a monetary sum to vacate a unit outside of the legal process. Vulnerable tenants, including immigrants and tenants who live in Section 8 housing, are often forced out of their units because they do not understand or assert their rights. Even if the action results in the tenants leaving, an attorney can help tenants avoid having an eviction on their record, which makes it much more difficult for the tenants to rent again.
We are fortunate to have 14 excellent nonprofit organizations in San Francisco that provide no- or low-cost legal services to tenants. However, these organizations have been woefully underfunded and do not have sufficient staff to address this housing crisis. The budget allocation of $1 million to fund 10 additional tenant attorneys will have a profound impact on San Francisco’s housing crisis. It will also make San Francisco one of the first cities in the country to provide a right to legal assistance to tenants facing eviction. Just as the Constitution allows an attorney for a person accused of a crime, a person threatened with the loss of his or her home should have legal assistance. San Francisco can and should lead the way when it comes to providing legal assistance to those tenants who need it.
Public Defender Jeff Adachi and Supervisor David Campos are elected officials in San Francisco.
Political tensions over evictions, displacement, real estate speculation, and rapidly rising housing costs in San Francisco are likely to heat up through the summer and autumn as a trio of November ballot measures are debated and combated by what’s expected to be a flood of campaign cash from developers and other real estate interests.
Topping the list is a tax measure to discourage the flipping of properties by real estate speculators. Known generally as the anti-speculation tax — something then-Sup. Harvey Milk was working on at the time of his assassination in 1978 — it was the leading goal to come out of a citywide series of tenant conventions at the beginning of this year (see “Staying power,” 2/11/14).
“To be in a position to pass the last thing Harvey Milk worked on is a profound opportunity,” AIDS Housing Alliance head Brian Basinger told us, arguing the measure is more important now then ever.
The measure has been placed on the ballot by Sups. John Avalos, David Campos, Jane Kim, and Eric Mar and is scheduled for a public hearing before the Board of Supervisors Rules Committee on July 10 at 2pm.
“It’s an absolutely key issue for San Francisco right now. Passing this measure will create a seismic shift in what we’re seeing with evictions and displacement in the city,” Sara Shortt, director of the Housing Rights Committee, told the Guardian.
The measure creates a supplemental surcharge on top of the city’s existing real estate transfer tax, a progressive rate ranging from a 24 percent tax on the sale of a property within one year of its purchase to 14 percent if sold between four and five years later.
In addition to levying the tax, the measure would also give the Board of Supervisors the power to waive that tax “subject to certain affordability-based restrictions on the occupancy of the real property,” giving the city leverage to expand and preserve deed-restricted affordable housing.
Meanwhile, there’s been a flurry of backroom negotiations surrounding the City Housing Balance Requirement measure sponsored by Sup. Jane Kim, which would require market rate housing projects to get a conditional use permit and be subjected to greater scrutiny when affordable housing falls below 30 percent of total housing construction (with a number exemptions, including projects with fewer than 24 units).
That measure is scheduled for a hearing by the Rules Committee on July 24 and, as an amendment to the City Charter, it needs six votes by the Board of Supervisors to make the ballot (the anti-speculation tax is an initiative that requires only the four supervisorial signatures that it now has).
Mayor Ed Lee and his allies in the development community responded to Kim’s measure by quickly cobbling together a rival initiative, Build Housing Now, which restates existing housing goals Lee announced during his State of the City speech in January and includes a poison pill that would invalidate Kim’s housing balance measure.
Together, the measures will draw key battle lines in what has become the defining political question in San Francisco these days: Who gets to live here?
COMBATING SPECULATORS
In February, Mayor Lee and his allies in the tech world, most notably venture capitalist Ron Conway, finally joined housing and other progressive activists in decrying the role that real estate speculators have played in the city’s current eviction and displacement crisis.
“We have some of the best tenant protections in the country, but unchecked real estate speculation threatens too many of our residents,” Lee said in a Feb. 24 press release announcing his support for Sen. Mark Leno’s Ellis Act reform measure SB 1439. “These speculators are turning a quick profit at the expense of long time tenants and do nothing to add needed housing in our City.”
The legislation, which would have prevented property owners from evicting tenants using the Ellis Act for at least five years, failed in the Legislature last month. So will Lee honor his own rhetoric and support the anti-speculation tax? His Communications Director Christine Falvey said Lee hasn’t yet taken a position on the measure, but “the mayor remains very concerned about real estate speculators.”
Peter Cohen of the Council of Community Housing Organization said Lee and his allies should support the measure: “It seems so clearly aligned with the same intent and some of the same mechanics as Ellis Act reform, which had the whole city family behind it.”
“I think it would be very consistent with their position on Ellis Act reform to support the anti-speculation tax,” Shortt told us. “If the mayor and tech companies went to bat for the anti-speculation tax, and not against it, that would show they have real concern about displacement and aren’t just giving it lip service.”
Conway’s pro-tech group sf.citi didn’t returned Guardian calls on the issue, nor did San Francisco Planning and Urban Research Association, but their allies in the real estate industry strongly oppose it.
“As Realtors, our goals are to increase housing availability and improve housing affordability,” San Francisco Association of Realtors CEO Walk Baczkowski told the Guardian. “We don’t believe the proposal from Sup. Mar, which is essentially a tax on housing, will accomplish either of those goals.”
But supporters of the measure say real estate speculation only serves to drive up housing costs.
“We have been successful at bringing people around on the issue of real estate speculation,” Basinger told us. “But of course, there will be financed opposition. People will invest their money to protect their interests.”
“We know it’s going to be a fight and we’ll have to put in a lot of resources,” Shortt said, adding that it’s a fight that tenant activist want to have. “Part of what fuels all of this [displacement] is the rampant real estate speculation. We can’t put profits above people.”
MAYOR’S MEASURE
Falvey denies that Lee’s proposal is designed simply to negate Kim’s measure: “Build Housing Now specifically asks the voters to adopt as official city policy the Mayor’s Housing Plan to create 30,000 new homes by 2020 — the majority within reach of low, moderate, and middle income residents. This is not a reaction, but a proactive measure that lets voters weigh in on one of the mayor’s most important policy priorities.”
Yet the most concrete thing it would do is sabotage the housing balance measure, an intention it states in its opening words: “Ordinance amending the Planning Code to prohibit additional land use requirements such as conditional use authorizations, variances or other requirements on housing projects…based on a cumulative housing balance ratio or other similar criteria related to achieving a certain ration of affordability.”
Beyond that, it would have voters validate Lee’s housing goal and “urge the Mayor to develop by December 31, 2014 a Housing Action Plan to realize this goal.” The measure is filled with that sort of vague and unenforceable language, most of it designed to coax voters into thinking it does more than it would actually do. For example, it expands Lee’s stated goal of 30 percent of that new housing being affordable by setting a goal of “over 50 percent within reach of low and middle income households.”
But unlike most city housing policies that use the affordable housing threshold of those earning 120 percent of area median income (AMI) and below, Lee’s measure eschews that definition, allowing him and his developer allies to later define “middle income households” however they choose. Falvey told us “he means the households in the 50-150 percent of AMI range.”
The measure would also study the central premise of Mayor Lee’s housing policy, the idea that building more market rate housing would bring down the overall price of housing for everyone, a trickle-down economic argument refuted by many affordable housing advocates who say the San Francisco housing market just doesn’t work that way because of insatiable and inelastic demand.
“Within 60 days of the effective date of this measure, the Planning Department is directed and authorized to undertake an economic nexus analysis to analyze the impact of luxury development on the demand for middle income housing in the City, and explore fees or other revenue sources that could help mitigate this impact,” the measure states.
Shortt thinks the mayor’s measure is deceptive: “It’s clever because for those not in the know, it looks like a different way to solve the problem.” But she said the housing balance measure works well with the anti-speculation tax because “one way to keep that balance is to make sure we don’t lose existing rental stock.”
And advocates say the anti-speculation tax is the best tool out there for preserving the rental housing relied on by nearly two-thirds of city residents.
“It’s the best measure we have going now,” Basinger said of the anti-displacement tax. “Mayor Ed Lee and his tech supporters were unable to rally enough support at the state level to reform the Ellis Act, so this is it, folks.”
EDITORIAL The footprint of Big Tech companies and their employees continues to spread through San Francisco, gobbling up the vast majority of commercial office space this year, driving up rents, and creating pressure to build ever more office towers. With Wall Street and Silicon Valley investors focusing so much wealth on this one economic sector, in this one once-dynamic city, this trend is threatening to squeeze out every other civic interest and sector in its path.
For example, city officials have long-struggled with how to preserve light industrial spaces in the city, known as Production Distribution and Repair (PDR) in the parlance of planners, who recognize the importance of such jobs and services to a city, even though they have a hard time competing with other economic sectors on rent. Indeed, despite efforts to protect it, San Francisco now has one of the lowest proportions of PDR uses of any big city in the US, a worrying sign for future economic prosperity.
Nonetheless, the new out-of-town investor-owners of the PDR-zoned San Francisco Design Center are trying to improperly use a loophole to evict most of its tenants to let Pinterest take over most of the building (which it bought at a bargain because of the zoning). Only the political will of politicians — who crave the campaign cash of capitalists — stands in the way of perversions like this. And without that will, which is severely lacking in the city right now, the economically strong will roll over everyone.
Let’s call it: Big Tech sprawl. Like urban sprawl — in which developers covered the cheapest land with housing and shopping malls, then let the public sector subsidize the roads and other infrastructure to serve it and passed the environmental costs on to future generations — the Big Tech firms favored by the Mayor’s Office will continue to expand ever outward if left unchecked.
Even conservative City Economist Ted Egan has warned against the city putting too many eggs in the basket of an industry known for its volatility and boom-bust cycles, repeatedly calling for the city to diversify its economy. As in nature, healthy ecosystems are marked by their diversity, while monocultures can be quickly destroyed by shocks to the system. Just like housing developers will build nothing but luxury condos if we let them — capital always seeks to maximize its returns, the most basic law of economics — Big Tech will continue to sprawl outward, greasing its path with political contributions, if San Franciscans don’t fight to maintain this great city’s diversity.
Hey there, lovers and haters of the World Cup, if you missed out on the protest of Google and FIFA at Pride, there’s still time on the clock to score that goal: there will be another protest tomorrow [Thu/3] to support Brazilian transit workers and their quest for higher wages.
In solidarity with Brazilian protestors, a group of queer anarchists blocked the joint Google/FIFA float in the SF Pride Parade on Sunday. The group saw the float protest as an opportunity to draw together two issues linking San Francisco and Brazil: gentrification in the Bay Area and the displacement of Brazilians in order to make this year’s World Cup possible.
As the protestors said, “We couldn’t pass up the opportunity to connect issues of gentrification and evictions in the Bay Area with the violent displacement of Brazilians who live in the Favelas. The Google/FIFA float was a perfect target for direct action to raise awareness about these issues!”
According to Al Jazeera and Solidar Suisse, more than 150,000 people were evicted from their homes to create the World Cup arenas, including parking lots. Following the Brazilian government’s pacification initiative, Brazilian police occupied multiple favelas, or slums, housing around 1.5 million people total, near the airport and roads leading to the World Cup stadiums in order to make the communities more presentable. Besides minimizing gang activity temporarily, there are no programs implemented to help favela residents in the long run.
Brazilian transit workers also felt cheated by World Cup preparations. Despite Brazil’s underfunded transit system and low wages for workers, Brazil’s government poured $11.5 billion into World Cup preparations. Protestors with the Subway Workers Union of Sao Paulo were beaten and attacked with tear gas by police during a five-day strike for higher wages.
Brazilian Justice Ministry declared the strike illegal and implemented a $250,000 per day fee, and allowed the Brazilian government to fire employees that continue to strike. The workers suspended the strike before the Cup, but the 42 transit workers fired during the strike have not been reinstated.
The SF protest joins the Subway Workers Union in asking for the 42 fired workers to be reinstated. You can root for that goal Thu/3 outside the Brazilian Consulate, 300 Montgomery, SF. 4-5pm.
THEATER The Fourth of July kicked off a revolution once; could it happen again? Each year in Dolores Park the San Francisco Mime Troupe gives it a shot, kicking off its touring season of free outdoor shows with a musical-comical call to arms — an appeal to popular solidarity against the very real forces of oppression on a holiday gleefully synonymous with keg-tapping.
It’s a task the legendary 55-year-old artist-run collective pursues with passion and its own unique flair: a larger-than-life mix of Italian commedia dell’arte storytelling and American-style melodrama, with a smattering of original songs thrown in for good measure. It’s an eye and ear catching spectacle that this year hits close to home, wading into the conflicts and displacement churned by a rapidly transforming high-tech, high-cost city.
Ripple Effect is set in present-day San Francisco, or just offshore in the bay, in a small tour boat where three women of very different backgrounds reckon with one another. The boat’s captain is an ardent but paranoid Lefty activist (played by Velina Brown). Her passengers are a Vietnamese beautician and all-American immigrant (Keiko Shimosato Carreiro) and a newbie tech worker from small-town Nebraska (Lisa Hori-Garcia) whose popular app landed her a corporate job in the big city.
Against the backdrop of a yawning wealth gap, real estate speculation, an epidemic of evictions, Google bus protests, and diminishing diversity, Ripple Effect‘s three protagonists (all played by longtime Mime Troupe members) explore the tensions that divide them and the common ground beneath them. (The Mime Troupe is also linking the play to a series of community forums, at its Mission studio and after select performances, in which various community leaders will facilitate public dialogue around the show’s themes and the growing divide in the city.)
“It’s always tough because we do tour the shows, so we don’t want to make them too specific to San Francisco,” says Mime Troupe actor-writer Michael Gene Sullivan, who plays several secondary roles in Ripple Effect, including a certain wily CEO. “But we feel like there are so many issues going on within the city that people around the state, really around the country, will be able to relate to — not just housing and how the cities are changing, but also the struggle within the working class, the way people are being pitted against each other while the incredibly rich are getting incredibly richer. It’s just that it’s more pointed here.”
There is precedent for SF-centric plays in past Mime Troupe offerings. In fact, the company’s 1999 show, City For Sale, took on the housing crisis of the last real estate and dot-com bubble. But Sullivan says the issue has also changed. “This show, while it touches on [housing], is much more about a change in the culture of the city. Not just what does it mean to be living in San Francisco, but what is San Francisco now?”
Ripple Effect is a departure in some other ways too. It’s a more concentrated drama, less concerned with a particular impending disaster to push the plot than in the precise relationship between the main characters. “In this show the dilemma is, to a large extent, how the characters see each other,” notes Sullivan. To this end, Sullivan, head writer for the collective since 2000, shared the writing this time around with Bay Area playwrights Eugenie Chan and Tanya Shaffer, each of whom explored specific aspects of the characters’ back stories. The show also sports two directors (Hugo E. Carbajal and Wilma Bonet) and comes with a new musical team: composer-lyricist Ira Marlowe and musical director Michael Bello, who together fill roles covered in recent years by Pat Moran.
The Mime Troupe has not been immune to the financial upheaval shaking the city. Last year, the collective had to launch an emergency fundraising campaign called the Cost of Free to make up for a serious budget shortfall that jeopardized its ability to offer its annual show. Velina Brown, Sullivan’s life partner as well as fellow artist, explains that the 2008 economic downturn had reduced the offerings of arts foundations by as much as 40 percent. “Being already a really lean organization anyway, 40 percent going away is huge.” But where another theater might have folded up shop, the Mime Troupe, with help from its audience, bounced back.
“One of the things that’s helped us over the years with all these ups and downs is that we are a collective,” says Brown. “It’s not all on one or two people and if they feel like that’s it, then that’s it — there’s a larger group of people that have to agree that that’s it before the doors close. We also own our building, and that has definitely saved our behinds. We haven’t had to be at the mercy of a landlord — who says, “Hey, I could get 10 times what you people are paying” — and kicked to the curb.”
“Because we’re a collective it takes people a lot longer to get burned out,” agrees Sullivan. “Because we’re worker-owners of our company we are willing to put in more time, do things for a little less pay, come to meetings when we’re not paid to be there. We do get paid; it’s an [Actors] Equity company. But we have a sense of ownership you don’t get at other places, and that also helps the company in the most difficult times.” *
Listings are compiled by Guardian staff. Submit items for the listings at listings@sfbg.com. For further information on how to submit items for the listings, see Selector.
WEDNESDAY 2
Jean Kwok Book Passage, 1 Ferry Bldg, SF; www.bookpassage.com. 6pm, free. The author discusses her new novel, Mambo in Chinatown.
Craven Rock Long Haul Info Shop, 3124 Shattuck, Berk; www.thelonghaul.org. 7pm, free. The author reads from cultural-studies tome Days and Nights in a Dark Carnival. Yes, it’s about Juggalos.
Judy Wells and Dale Jensen Books Inc, 1344 Park, Alameda; (510) 522-2226. 7pm, free. The poets read as part of the Last Word Reading Series, followed by an open mic.
THURSDAY 3
“Target Independence Day Celebration” Craneway Pavilion, 1414 Harbour Way South, Richmond; www.oebs.org. 6:30pm, free. Oakland East Bay Symphony performs patriotic works to celebrate Independence Day, followed by a fireworks display.
FRIDAY 4
Fourth of July at the Berkeley Marina Berkeley Marina, 201 University, Berk; www.anotherbullwinkelshow.com. Noon-10pm, $15. Family-friendly fun with live entertainment, pony rides, arts and crafts, and fireworks (9:30pm).
July 4th Festival of Family Fun Jack London Square, Broadway and Embarcadero, Oakl; www.jacklondonsquare.com. 11am-4pm, free. Fun activities for families including a petting zoo, balloon artists, face paint, bubble wrangling, and more.
Pier 39 Fourth of July Pier 39, SF; www.pier39.com. Noon, free. The family-friendly fun begins at noon with live music from the USAF Band of the Golden West, followed by Tainted Love. At 9:30pm, enjoy the traditional fireworks display over the bay.
SATURDAY 5
Fillmore Jazz Festival Fillmore between Jackson and Eddy, SF. www.fillmorejazzfestival.com. 10am-6pm, free. Also Sun/6. The largest free jazz fest on the West Coast fills 12 blocks with music, arts and crafts, gourmet food, and more.
LaborFest 2014 Redstone Building, 2940 16th St, SF; www.laborfest.net. 11am-5pm, free. Street fair in honor of the 100th anniversary of the San Francisco Labor Temple. Also today: Noon, meet at 518 Valencia, SF. Free. Labor bike tour with Chris Carlsson (ends at Spear and Market). 2pm, meet at Harry Bridges Plaza Tower, Embarcadero at Market, SF. Free. SF General Strike walk led by retired ILWU longshoreman Jack Heyman and others. 7pm, ILWU Local 34 Hall, 801 Second St, SF. Donations accepted. “FilmWorks United” screening of Miners Shot Down (Desai, 2014).
SUNDAY 6
LaborFest 2014 First Unitarian Universalist Church, 1187 Franklin, SF; www.laborfest.net. 9:30am, free. “Working Class Housing, Ethnic Housing: Hunters Point and Bayview” panel discussion. Also today: 9:45am, meet at Coit Tower entrance, One Telegraph Hill, SF. Free. Coit Tower mural walk with Peter O’Driscoll, Gray Brechin, and Harvey Smith. 11am, meet at 18th St and Tennessee, SF. Free. Dogpatch and Potrero Point walk with Nataly Wisniewski of SF City Guides. Noon, meet at One Market St, SF. Free. Labor history and Market St. walk with Chuck Schwartz of SF City Guides. 2pm, Bird and Beckett Bookstore, 653 Chenery, SF. Free. Author Zeese Papanikolas discusses the Ludlow Massacre. 7pm, 518 Valencia, SF. Free. “Labor, Privatization, and How to Defend Public Education” discussion.
Temescal Street Fair Telegraph between 40th and 51st Sts, Oakl; www.temescaldistrict.org. Noon-6pm, free. Three food courts and multiple stages showcasing local performers (including an entire stage just for kids with magicians, jugglers, and more), plus 150 booths with local crafts, artworks, and more.
MONDAY 7
LaborFest 2014 Meet at Portsmouth Square, Washington St, SF; www.laborfest.net. 10am, free. Chinatown walk with Mae Schoeing of SF City Guides. Also today: 7pm, Bird and Beckett Bookstore, 653 Chenery, SF. Free. Poetry reading by Nellie Wong and Alice Rogoff.
TUESDAY 8
LaborFest 2014 Meet at the corner of Stockton and Maiden Lane, SF; www.laborfest.net. 10am, free. “Rising Steel: Two Centuries of San Francisco Architecture” walking tour. Also today: 6-9pm, Pacific Media Workers Guild, 433 Natoma, SF. Free. “Méndez Rising: Spotlight on the Revolutionary Works of an Artist for Social Justice,” tribute to the art of Leopoldo Méndez. *
STREET FIGHT With most city officials supporting the accommodation of private transit in some form, the San Francisco Municipal Transportation Agency is now vetting where tech workers should board and egress the private corporate commuter buses that ply the 101 and I-280 between San Francisco and Silicon Valley suburbs. A list of proposed bus stops was circulated in June, and the first round of bus stop proposals is set for approval in August.
Short of a proper environmental study, which is the subject of ongoing litigation, the list deserves more scrutiny and deliberation because certain areas of the city — such as Hayes Street in the Western Addition and 18th Street in the Mission — might be effectively made into Google Bus sewers.
I hope SFMTA is open to reconsidering some of these proposed bus stops.
Rather than jamming oversized interstate highway-scale coaches on human-scaled, walkable, and bikeable streets with important Muni routes, SFMTA ought to steer them where they are more appropriate: on the wider, car-oriented streets that bifurcate the city.
For example, the current proposal for private commuter buses in the Western Addition is to have these mammoth and incongruent buses running on Hayes Street using Muni stops at Clayton, Steiner, Laguna, and Buchanan.
This is bad news for passengers on the 21-Hayes, a key neighborhood-serving electric trolley bus that has gotten short shrift in the city planning process. With 12,500 boardings daily, the 21-Hayes is often at capacity every morning before it crosses Van Ness.
Just last week, I was on a packed 21 that was blocked (illegally) by a huge corporate bus on Hayes. With an already dense and slow traffic situation, this added at least 30 seconds to the trip before the 21 could access its stop. Repeat that multiple times in the morning and afternoon and you can see that this will be a mess. It’s not worth the dollar the SFMTA collects for such stops, that’s for sure.
Concentrating the private buses on the 21 line (or the 33 in the Mission) will block Muni where Muni is already slow, unreliable, and overcrowded. It will also diminish walkability and bicycle safety on Hayes and other streets identified in the current list (including the commercial corridors on Divisadero and 18th Street in the Mission.)
Rather than streets such as Hayes, SFTMA should redirect the private buses to the multilane, one-way couplet on Fell and Oak streets, only one block south. Along the corridor, SFMTA could collaborate with the private systems to establish new bus stops (red paint) at Clayton, Masonic, Divisadaro, Fillmore, and near Octavia. This scheme would limit clunky turn movements onto neighborhood streets by oversized buses and contribute to traffic calming.
In the mornings, the buses would pick up passengers on Oak Street, starting along the Panhandle, then travel towards Octavia Boulevard before swinging onto the freeway southbound. In the evenings the buses would exit the freeway at Octavia, and stop at drop-off hubs on Fell, between Octavia and Laguna, and then stop incrementally toward Golden Gate Park.
Additionally, the city needs to consider a space for the underpaid, nonunionized drivers to pull over and rest before and after long segments of freeway driving. We want these buses to be safe.
Similar arrangements should be made to spare 18th Street in the Mission from reverting to a Google bus sewer, with emphasis on private corporate bus stops on South Van Ness or Guerrero-San Jose. Surely there are other examples in other parts of the city.
The urgent affordable housing crisis aside, this could be a win-win from a transportation perspective. Tech workers would no longer get blamed for blocking Muni and they can know that while waiting for their bus, they are contributing to calming erstwhile hazardous streets.
There’s a lot of opportunity to combine these new bus stops with traffic calming at dangerous intersections such as Fell and Masonic or Oak and Octavia, all without mucking up Muni or diminishing the walkable human scale of nearby neighborhood commercial streets. And hey, since this is all a “pilot program,” no pesky and expensive EIR is needed — right?
Thinking long-term, this scheme could be a template to jumpstart making this ridiculous private transit system into a regional public bus system modeled on AC transit or Golden Gate Transit, a service open to all. Our car-centric streets are ripe for express bus service and this would help relieve parallel lines like the N-Judah, while enabling the city to attain its aspiration of 30 percent mode share on transit.
And for Mayor Ed Lee and pro-tech-bus members of the Board of Supervisors, it helps with their “vision zero” rhetoric of increasing pedestrian safety because placing the buses on car-centric one-way couplets can help calm traffic.
With a little cajoling by the mayor, he could get his tech sponsors to underwrite streetscape and beautification at the bus stops along these kinds of streets.
After all, Mayor Lee needs to find the money, because last month he betrayed pedestrian and bicycle safety and Muni when he abandoned support for increasing the Vehicle License Fee locally this fall, all the while misleading the public about the important role of Sunday metering. Perhaps it’s time for a tax or license fee on the ad hoc private transit system?
SLOWING DOWN
Speaking of vision zero, Sup. Eric Mar deserves hearty thanks for proposing to reduce speed limits citywide. This is one of the most effective ideas to come from the progressive wing of the Board of Supervisors in a long time and should be implemented yesterday. Higher speeds maim and kill, and the faster cars go the more voracious the appetite for both fuel and urban space.
With reduced speed, the motorist would still be able to drive, just more slowly, perhaps with less convenience than now. But over time the options of cycling, of walkable shopping, and improved public transit would synchronize more seamlessly as car space is ceded to separated cycletracks and transit lanes.
My suggestion is to make the city navigable by car at no greater than 15 miles per hour, a speed deemed not only to be comfortable on calmed pedestrian streets, but also to minimize injury and fatalities when there are collisions. Ultimately, our efforts to curb global warming, reduce injury and death from automobility, and make the city more livable obliges us to slow down, so looking at speeds is a step forward.
Street Fight is a monthly column by Jason Henderson, a geography professor at San Francisco State University and the author of Street Fight: The Politics of Mobility in San Francisco.
OPINION This week, San Franciscans learned that they will not be able to rely on Sacramento to fix the housing crisis. State lawmakers voted down Senate Bill 1439, which would have stopped speculators from using the Ellis Act to evict and convert buildings to upscale offices and TICs. One Assembly Democrat said that San Franciscans were “exaggerating the problem.” That same day, my office received Ellis Act eviction notices for 21 tenants from an artist building at 16th and Mission streets. The building has a new buyer, and it will soon be a high-end commercial space.
I was a tenant rights attorney during the first dot-com boom, and without question, this new housing crisis is much worse. The gentrification is more widespread and permanent. This time around, the evicted teachers, musicians, and artists are not simply moving down the street to smaller units, they are being priced out of San Francisco altogether.
We need to decide now, as San Franciscans, what we want our city to feel like in a decade. Here are five things I believe we need to do now to address the crisis:
1. Collaborate with tech leaders, rather than vilify them. I have been as guilty as the next person in blaming and berating big tech, ignoring the fact that many of my neighbors, clients, and friends are long-time San Franciscans who work in the tech industry. Enough blaming. We need to somehow bring tech to the table to help create large-scale solutions to the housing crisis. It may not be easy to do.
Earlier this year, Marc Benioff, the CEO of Salesforce, criticized tech companies for being “stingy” in giving to their communities, and I have heard nonprofit fundraisers echo this. If true, we need to find out why. On the other side, our healthy anti-corporate, ‘us and them’ mindset, which is deeply rooted in San Francisco’s political tradition, is not serving us in collaboratively addressing the housing crisis.
While there are a handful of high-profile examples of tech workers wrongfully displacing tenants, tech workers are not the real problem. It is true that tech money drives up prices, but the real villains are the predatory speculators who are profiting from our shared crisis. The bottom line is, like it or not, tech is here to stay, and tech leaders have the resources to fund the arts, help our schools, and yes, help us address the housing crisis.
2. Stop illegal mergers of multi-unit buildings into single-family mansions. It is not enough to have regulations in place to prevent mergers. Real estate speculators are merging units surreptitiously, without permits. The Department of Building Inspection needs to actively police projects. And all San Francisco residents need to share in the responsibility of ensuring that speculators are not doing major construction without permits in our neighborhoods.
3. Support legislation to stop landlords from renting their units as hotel rooms. It is estimated that more than a 1,000 units in San Francisco are being rented out full-time for short-term corporate or tourist use. We need a law to get these units back into the permanent housing stock.
4. Donate to the Community Land Trust and the Community Arts Stabilization Trust. Community land trusts are buying property to permanently preserve residential housing and art space. We need to do more to support these organizations. Other cities do a much better job than San Francisco in partnering with corporations to preserve culture.
5. Support an anti-speculation tax. Tenant activists have introduced an anti-speculation tax designed to stop real estate flipping. Our office sees the same LLCs flip properties time and time again.
Ultimately it is up to all San Franciscans to embrace this cause if we hope to preserve the diverse and complex character of our city. One thing is sure: We cannot wait to add our voices, or it will be too late.
There were a couple of big changes for the Bay Guardian this week. We and our sister newspapers within San Francisco Media Company — San Francisco Examiner and SF Weekly — moved into the Westfield Mall. Yes, the mall, but in the fifth floor business offices formerly occupied by the San Francisco State University School of Business extension program. The company, owned by Black Press in Canada and Oahu Publications in Hawaii, also named Glenn Zuehls as the new publisher and Cliff Chandler, who worked for the Examiner for years, as the senior vice president of advertising. Zuehls, who comes from Oahu Publications, replaces Todd Vogt as the head of SFMC. Zuehls and Chandler told the staff of all three papers that their primary goal is to grow the company’s revenues.
QUEER SPIRIT ROILS PRIDE
Even as an awareness of the ever-growing commercialization of SF Pride dawned on younger participants, a spirit of activism also took flight. Community grand marshal Tommi Avicolli Mecca led a fiery parade contingent (above) of housing activists in Sunday’s parade, protesting skyrocketing evictions in San Francisco. The anti-eviction brigade staged a die-in in front of the official parade observation area. Friday’s Trans March was the biggest so far, and Saturday’s Dyke March featured a huge contingent marching under the banner “Dykes Against Landlords.” Meanwhile, hundreds of protestors targeted a Kink.com prison-themed party, saying it glorified a prison-industrial complex, which “destroys the lives of millions of people.” Seven of the protestors were arrested, and charges of police brutality are being investigated.
LESBIANS BASHED AT PRIDE
While there were some disturbing anecdotal reports of homophobic slurs and queer bashing at Pride this year (including one of a Sister of Perpetual Indulgence and her husband being attacked at Pink Saturday), San Francisco Police Department spokesperson Albie Esparza said police are only investigating one incident so far as an actual hate crime. It occurred on June 28 around 5:30pm near the intersection of Mission and Ninth streets when two young lesbians were subjected to homophobic taunts and then severely beaten by five young male suspects, all of whom remain at large. They’re described at 16 to 20 years old, two black, three Hispanic. Esparza said hate crimes are defined as attacks based solely on being a protected classes, so that doesn’t include robbery or assaults in which racism or homophobic slurs are used, if that doesn’t seem to be the motivation for the attacks.
LIFE’S A STAGE
Hark! It must be summer, because all the companies dedicated to outdoor theater are opening new productions in parks across the Bay Area. Aside from the San Francisco Mime Troupe’s Ripple Effect (see feature in this issue; www.sfmt.org), Marin Shakespeare is presenting As You Like It in San Rafael (pictured), with Romeo and Juliet opening later in July (www.marinshakespeare.org); Free Shakespeare in the Park brings The Taming of the Shrew to Pleasanton and beyond (www.sfshakes.org); and Actors Ensemble of Berkeley goes stone-cold Austen with Pride and Prejudice in John Hinkel Park (www.aeofberkeley). AS YOU LIKE IT PHOTO BY STEVEN UNDERWOOD
TEN YEAR GRIND
Kids and pro skaters from One Love boards tore up “the island” — between the Ferry Building and the Embarcadero — with flips, kick tricks and plants June 29, celebrating the tenth anniversary of the much loved skate spot. Local Hunters Point pro skater Larry Redmon sat watching the new generation of skaters and offering pointers. Sure downtown has more grind blockers then it did a decade ago, but as Redmon says, “We out here.” PHOTO BY PAUL INGRAM
THE WILLIE CONNECTION
Muni’s workers and the SFMTA reached a final labor deal over the final weekend of June, but Mayor Ed Lee is telling news outlets the real dealmaker was former mayor Willie Brown. “He’s someone who understands the city, understands labor, the underlying interests,” SFMTA Director Ed Reiskin told various news outlets. Reports say Brown went unpaid by the city for the deed. That’s hard to believe: Anyone who knows Slick Willie knows he seldom does anything for free.
WAXING NOSTALGIC
The new Madame Tussauds wax museum attraction opened June 26 at Fisherman’s wharf — and includes SF-specific figure replicas like Mark Zuckerberg, Harvey Milk, and, of course, our real mayor, Nicolas Cage (pictured). See the Pixel Vision blog at SFBG.com for more creepy-ish pics and a review.
SHARON SELLS OUT (THE INDEPENDENT)
Despite her catalog full of confessional songs about nasty breakups and other dark subject matter, Sharon Van Etten was all smiles during two sold-out shows at the Independent June 29 and June 30. Leaning heavily on songs from her new album, Are We There, Van Etten and her four-piece band even led the adoring crowd in a cheerful sing-along at one point. On her next pass through town, we expect to be seeing her on a much bigger stage.
UNION PROUD
If BBQ and black-market fireworks aren’t your idea of showing civic pride, make your way over to the Mission’s Redstone Building (2940 16th St. at Capp) for a street fair Sat/5 with local musicians, poets, visual artists, and more, to mark the 100th anniversary of the SF Labor Temple and call attention to current labor issues like the fight for a $15 minimum wage. Built by the city’s Labor Council in 1914, the building formerly housed SF’s biggest labor unions and was the planning center for the famous 1934 General Strike. This celebration is part of Labor Fest, now in its 20th year, which runs throughout July around the Bay Area — for more: www.laborfest.net
Not many plays feature an all-Latino cast, let alone all El Salvadoran. But Paul Flores’ Placasplaced brown actors and a brown experience center stage. The 2012 production explored a father and ex-gang member’s struggle, leading his son out of a hard life of drugs, violence, and perhaps death.
“You had older generations coming to see the play right alongside their grandkids,” Flores told the Guardian. The play’s premiere venue packed its 500-seat capacity, and sold out seven out of its eight nights in San Francisco. “We tapped a community thirsty to hear its stories told.”
Placas is the kind of creative work not being funded often enough by the city’s largest arts grant organization, critics are saying. At a contentious San Francisco Board of Supervisors Budget and Finance Committee hearing on June 20, artists told supervisors that programs serving diverse communities were severely underfunded, and alleged the city’s major arts funder, Grants for the Arts, awards money disproportionately to art forms favored by white audiences.
Spurred by public outcry and city studies, Sups. Eric Mar and London Breed recommended the transfer of $400,000 in unused funding from GFTA to another city arts funder, the Cultural Equity Grants (which funded Placas), to direct arts money to people of color.
The transfer won’t be approved until it goes before the full Board of Supervisors next month. But as San Francisco studio and housing rents soar, Mar said this was vital to keeping diverse artists in the city.
“I think the crisis for arts groups now is many of them are being displaced,” he told the Guardian. “How can the city subsidize groups with low rent or free rent, and how could we support small groups [to prevent them from] being displaced?”
Above is a PDF of the Budget Legislative Analyst’s report, as it breaks down lack of funding to diverse programs. The report has relevant sections highlighted.
The Guardian reached out to City Administrator Naomi Kelly for comment (her office ultimately directs arts grants funding). She was unavailable for an interview before we went to press, but her spokesperson Bill Barnes told us, “I don’t think we should be in a position of having governments regulate artistic content.”
But in a way, the government already does. The GFTA funding is made up of city dollars, and for decades its funding priorities have scarcely changed, favoring many of the largest mainstream organizations.
GFTA funds many arts organizations, but a recent report by the Budget and Legislative Analyst’s Office found it awarded about 70 percent of grants to organizations with mostly white artists who mostly cater to white audiences. The San Francisco Symphony, San Francisco Ballet, San Francisco Opera, City Arts, the Exploratorium, the Museum of Modern Art, and the American Conservatory Theater received over one-third of GFTA funding over the past five years, the report found.
“The Bay [Area] will soon be 70 percent people of color,” Andrew Wood, director of the SF International Arts Festival, told the Guardian. “Why invest so heavily in organizations that are such a minority of the population?”
Taken on its face, the findings show a stark divide between funding for smaller, struggling minority arts groups and large, independently funded arts groups with predominantly white patrons. The report divided the diversity of GFTA arts funding into three categories: people of color (Asians, African Americans, and Latinos), ethnic minorities (Arab/Middle Eastern/Jewish), and LGBT organizations. The funding for these categories remained steady at about 20, 2, and 5 percent of arts funding, respectively, since 1989.
The lack of funding is one thing, but critics say the pattern indicates an outright dismissal of the broader community. In a mass email entitled “The State of the Arts in San Francisco” sent to the arts community from a group calling itself Arts Town Hall Organizing Committee said the outcry against critiques of GFTA’s diversity funding was “advanced by fringe members of the arts community.”
Realizing it called Black, Asian, and Latino artists a “fringe community,” the San Francisco Arts Alliance (a signatory to the email comprised of San Francisco’s symphony, opera, and other GFTA funded organizations) quickly backpedaled. It said the email was sent on their behalf by the public relations firm Barnes Mosher Whitehurst Lauter & Partners, a group that often runs astroturf campaigns for mainstream organizations.
One reason for GFTA’s inability to fund diverse arts groups may be a lack of trying: The BLA found the GFTA “does not have a definition or criteria for granting funds to people of color organizations.”
This color blindness is a problem, Wood told us. “[The money] the city invests in the War Memorial Opera House compared to the Bayview Opera House, also city owned, is completely out of whack,” he said. The Bayview Opera House was one among six “cultural institutions” to receive a portion of a $400,000 GFTA award, according to the organization’s 2013/14 annual report. Conversely, GFTA awarded the San Francisco Opera $653,000 the same year.
“They’re two different universes,” Wood said.
Allocating more funding for the Cultural Equity Grants was an oft-mentioned method for better supporting disadvantaged artists, the report found, even though GFTA and CEG share many of the same grantees.
Some say the report’s numbers don’t add up. San Francisco Arts Commission Director of Cultural Affairs Tom DeCaigny, a longtime local artist, disagreed with how the BLA defined which groups were white, ethnic, or otherwise.
“The methodology in the report assigns people an identity, and I know some of our grantees were referred to as white when they’re not,” DeCaigny told the Guardian. “We would want to see organizations self identify.”
Those faults undermine the value of the BLA’s findings, although he said, “I’m hesitant to comment on the value of that report.”
But some in the arts community felt DeCaigny’s opinion aligns suspiciously closely to the mayor’s priorities: funding the preferred arts organizations of his wealthy donors (like the symphony). We reached out to the San Francisco Symphony for comment but its representatives told us it would be unable to respond before our deadline.
DeCaigny defended the symphony, noting its annual Lunar New Year and Day of the Dead concerts serve diverse audiences. For the economically disadvantaged, he said, the symphony offers free concerts open to the public in Dolores Park, and that the symphony’s “artists are very diverse.”
DeCaigny pointed out the San Francisco Symphony Orchestra’s youth programs (shown above) are notably very diverse.
The donors are mostly white, he said, “but that’s true in other sectors as well. It has more to do with how wealth is distributed in our society.”
But Flores, Placas’ director, explained the need for ethnically diverse art was not just about who consumes it, but what message the art is sending to the audience. Nothing revealed this more, he said, then when he took Placas on tour across the United States. While in New York City, he conducted an informal poll.
“I asked ‘when I say San Francisco, what do you think of?’ They said the 49ers, the San Francisco Giants, the Golden Gate Bridge. They didn’t think gangs, pupusa, cumbia,” he said. That’s why Placas, which told the story of gang life among San Francisco Salvadorans, had such impact in the city and even beyond its borders.
“I love telling stories about San Francisco,” Flores told us. “The symphony doesn’t do that, the opera doesn’t do that. What does that? Locally generated art.”
The Board of Supervisors Budget and Finance committee is tentatively slated to hold a hearing on allegations made in the BLA report on July 16.
A major real-estate firm contributed $1 million to the America’s Cup Organizing Committee at the behest of Mayor Ed Lee, right around the time it sought city approval to expand a downtown tech office building that was already under construction.
Kilroy Realty, the developer of a 30-story building that will house more than 400,000 square feet of office space for Salesforce.com, won approval in August of 2013 to add an additional six floors to its 350 Mission commercial office space project. That building is one of three in the Transbay area that will house Salesforce.com offices.
Kilroy sent one check for $500,000 to the America’s Cup Organizing Committee on June 24, 2013, and a second one for the same amount on Jan. 31 of this year.
While it’s impossible to say for sure whether the generous gifts had anything to do with the request for approval for a major building expansion, the “behested payment” reports documenting the transactions did draw the attention of the San Francisco Civil Grand Jury, which included them in a report titled “Ethics in the City: Promise, Practice, or Pretense?”
In another example highlighted in the report, Mayor Lee accepted travel funds for a trip to China and Korea last October. Contributors who provided more than $500 apiece for that trip included Uber and Airbnb, both tech-based companies whose businesses stand to be directly impacted by city policies.
Uber has been sparring with the San Francisco International Airport over its drivers’ unauthorized passenger drop-offs as of late, while Airbnb long skirted its responsibility to pay the city’s hotel tax and is now the subject of legislation regulating short-term housing rentals. It’s interesting that each of these companies felt compelled to donate toward the mayor’s travel fund, given the city’s attempts to regulate them.
The Civil Grand Jury report highlights the shortcomings of the San Francisco Ethics Commission, an agency tasked with ensuring that government operations aren’t tainted by conflicts of interest or official misconduct.
Citizen watchdogs of San Francisco government have sought to eliminate pay-to-play politics for years.
Back in 2000, San Francisco voters approved a ballot measure seeking to bar elected officials from accepting campaign donations or gifts from corporations or individuals who had received city contracts or “special benefits.”
Known as Proposition J, that measure sought to eliminate the undue influence of deep-pocketed, well-connected players in local government.
It was popular and won by a landslide: No ballot arguments were registered against it, and the measure won with 82.66 percent of the vote.
Nevertheless, the Civil Grand Jury report noted, Prop. J was “amended out of existence” – through an effort led by none other than the Ethics Commission.
“The Ethics Commission proposed repealing Proposition J at their April 2003 meeting,” the report notes.
That proposal was part of an effort to “recodify conflict of interest laws,” the Civil Grand Jury found. Some laws were amended. Others were tweaked so that amendments could be made in the future, without voter approval.
After winning approval from the Board of Supervisors, that package of legislative changes became Proposition E on the 2003 ballot. “In 2003, voters approved Proposition E that recodified the ethics laws; however, it also had the undisclosed effect of deleting Proposition J language,” the Civil Grand Jury noted. “Thus, the concept of regulating public officials’ relations with those who receive ‘public benefits’ from them (Proposition J’s intent) was totally eliminated from San Francisco law.”
The report also takes the Ethics Commission to task for being too lax when it comes to addressing potential conflicts of interest.
It goes so far as to recommend that the agency hand over control of its major enforcement investigations to the Fair Political Practices Commission, a state agency with a more robust team of investigators who might produce better results.
“The Ethics Commission lacks resources to handle major enforcement cases,” the Civil Grand Jury notes. “These include, for example, cases alleging misconduct, conflict of interest, violating campaign finance and lobbying laws, and violating post-employment restrictions.”
OPINION I get it, as Harvey Milk famously said: “You gotta give them hope.” But how do you do that when the LGBT community you love so much is being priced and evicted out of the city?
When immigrants, people of color, artists, the poor and working-class, people with AIDS, seniors, persons with disabilities, and so many others are being pushed out — like you, Harvey, were forced out of your camera store and apartment on Castro Street when your rent was tripled. Just before an assassin’s bullet took you from us, you were preparing an anti-speculation tax to deal with the rising rents and displacement caused by speculators and real estate investors.
We tried to curb their dirty work via a state bill limiting use of the Ellis Act, but Democrats buckled in to pressure from the real estate industry that owns them. Shame on Democratic House Speaker Toni Atkins from San Diego, an out lesbian, whose inaction on the bill helped kill it.
Our only hope is the anti-speculation tax on the November ballot. Brian Basinger of the AIDS Housing Alliance is calling it the Harvey Milk Anti-Speculation Tax.
The stakes are high right now. Our housing crisis is destroying our community. According to the Anti-Eviction Mapping Project, which tracks displacement throughout the city, District 8 (which includes the Castro) has the highest rate of Ellis Act and Owner Move-In evictions, almost 2,000 units emptied since 1997. That doesn’t include buyouts and threats of evictions, de facto evictions that have pushed out many more, most of them tenants with AIDS. Far too many people with AIDS are homeless in a city that used to be called the “model of caring.”
The motive for these evictions is obvious. A two-bedroom across the street from my Castro apartment rents for $4,200. An apartment above the new Whole Foods at Sanchez and Market can cost you as much as $8,000. A month! I don’t want to upset you, Harvey, so I won’t tell you how high commercial rents are, and how poorly neighborhood businesses are faring these days.
The economic disparity has never been greater. Two Williams Institute studies show that our community is as poor as, and in some instances poorer than, other communities. In our city’s latest homeless count, 29 percent of respondents identified as LGBT and an additional 3 percent as transgender. Other reports say that 40 percent of the city’s homeless youth are queer.
Forget Altoona, that homeless queer kid in the Haight or Castro needs a sense of hope. We have a sit/lie law similar to the one you opposed that prevents these kids from getting subsidized housing if they have an unpaid citation. They sleep in the park because they’re not safe in the shelters. Sadly, Human Rights Campaign and Equality California have never made them — or the poor — a priority.
Cranes and rainbow flags may be all the rage in Upper Market these days, but what’s being built will not be affordable to homeless, poor, or working class (even some middle-class) people. The Castro has only one affordable housing project in the pipeline: 110 units for LGBT seniors at 55 Laguna. Our D8 supervisor and City Hall have let us down big time.
Harvey, I want to think that 10 years from now, our community will still have the Castro as a refuge. I want to believe that poverty, homelessness, and hunger will be greatly reduced. That we can stop the evictions. That we can give young people a piece of the dream. That we can provide seniors a secure place to spend their final days. That we can have elected officials who truly represent us, as you did.
I really want to have hope.
Tommi Avicolli Mecca, a longtime queer and housing rights activist (and an organizer of the first Philadelphia Pride march in 1972), is a grand marshal of this year’s Pride Parade.
