Landlords

Endorsements 2010: State races

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GOVERNOR

EDMUND G. BROWN

We have issues with Jerry Brown. The one-time environmental leader who left an admirable progressive legacy his first time in the governor’s office (including the Agricultural Labor Relations Board, the California Conservation Corps, and the liberal Rose Bird Supreme Court) and who is willing to stand up and oppose the Diablo Canyon nuclear power plant has become a centrist, tough-on-crime, no-new-taxes candidate. And his only solution to the state budget problems is to bring all the players together early and start talking.

But at least since he’s started to debate Republican Meg Whitman face to face, he’s showing some signs of life — and flashes of the old Jerry. He’s strongly denouncing Whitman’s proposal to wipe out capital gains taxes, reminding voters of the huge hole that would blow in the state budget — and the $5 billion windfall it would give to the rich. He’s talking about suing Wall Street financial firms that cheated Californians. He’s promoting green jobs and standing firm in support of the state’s greenhouse-gas emissions limits.

For all his drawbacks (his insistence, for example, that the Legislature shouldn’t raise any taxes without a statewide vote of the people), Brown is at least part of the reality-based community. He understands that further tax cuts for the rich won’t solve California’s problems. He knows that climate change is real. He’s not great on immigration issues, but at least he’s cognizant that 2 million undocumented immigrants live in California — and the state can’t just arrest and deport them all.

Whitman is more than a conservative Republican. She’s scary. The centerpiece of her economic platform calls for laying off 40,000 state employees — thereby greatly increasing the state’s unemployment rate. Her tax plan would increase the state’s deficit by another $5 billion just so that a tiny number of the richest taxpayers (including her) can keep more of their money. She’s part of the nativist movement that wants to close the borders.

She’s also one of the growing number of candidates who think personal wealth and private-sector business success translate to an ability to run a complex state government. That’s a dangerous trend — Whitman has no political experience or background (until recently she didn’t even vote) and will be overcome by the lobbyists in Sacramento.

This is a critically important election for California. Vote for Jerry Brown.

 

LIEUTENANT GOVERNOR

 

GAVIN NEWSOM

Why is the mayor of San Francisco running for a job he once dismissed as worthless? Simple: he couldn’t get elected governor, and he wants a place to perch for a while until he figures out what higher office he can seek. It’s almost embarrassing in its cold political calculus, but that’s something we’ve come to expect from Newsom.

We endorsed Newsom’s opponent, Janice Hahn, in the Democratic primary. It was hard to make a case for advancing the political career of someone who has taken what amounts to a Republican approach to running the city’s finances — he’s addressed every budget problem entirely with cuts, pushed a “no-new-taxes” line, and given the wealthy everything they wanted. His immigration policies have broken up families and promoted deporting kids. He’s done Pacific Gas and Electric Co. a nice favor by doing nothing to help the community choice aggregation program move forward.

Nevertheless, we’re endorsing Newsom over his Republican opponent, Abel Maldonado, because there really isn’t any choice. Maldonado is a big supporter of the death penalty (which Newsom opposes). He’s pledged never to raise taxes (and Newsom is at least open to discussion on the issue). He used budget blackmail to force the awful open-primaries law onto the ballot. He’s a supporter of big water projects like the peripheral canal. In the Legislature, he earned a 100 percent rating from the California Chamber of Commerce.

Newsom’s a supporter of more funding for higher education (and the lieutenant governor sits on the University of California Board of Regents). He’d be at least a moderate environmentalist on the state Lands Commission. And he, like Brown, is devoting a lot of attention to improving the state’s economy with green jobs.

We could do much worse than Newsom in the lieutenant governor’s office. We could have Maldonado. Vote for Newsom.

 

SECRETARY OF STATE

 

DEBRA BOWEN

California has had some problems with the office that runs elections and keeps corporate filings. Kevin Shelley had to resign from the job in 2005 in the face of allegations that a state grant of $125,000 was illegally diverted into his campaign account. But Bowen, by all accounts, has run a clean office. Her Republican opponent, Damon Dunn, a former professional football player and real estate agent, doesn’t even have much support within his own party and is calling for mandatory ID checks at the ballot. This one’s easy; vote for Bowen.

 

CONTROLLER

 

JOHN CHIANG

Chiang’s been a perfectly decent controller, and at times has shown some political courage: When Gov. Arnold Schwarzenegger tried to cut the pay of state employees to minimum-wage level, Chiang refused to go along — and forced the governor to back down. His opponent, state Sen. Tony Strickland (R-Los Angeles), wants to use to office to promote cuts in government spending. Vote for Chiang.

 

TREASURER

 

BILL LOCKYER

Lockyer’s almost certain to win reelection as treasurer against a weak Republican, Mimi Walters. He’s done an adequate job and pushed a few progressive things like using state bonds to promote alternative energy. Mostly, though, he seems to be waiting for his chance to run for governor — and if Jerry Brown loses, or wins and decides not to seek a second term, look for Lockyer to step up.

 

ATTORNEY GENERAL

 

KAMALA HARRIS

This is going to be close, and it’s another clear choice. We’ve had our differences with Harris — she’s trying too hard to be a tough-on-crime type, pushing some really dumb bills in Sacramento (like a measure that would bar sex offenders from ever using social networking sites on the Internet). And while she shouldn’t take all the blame for the problems in the San Francisco crime lab, she should have known about the situation earlier and made more of a fuss. She’s also been slow to respond to serious problem of prosecutors and the cops hiding information about police misconduct from defense lawyers that could be relevant to a case.

But her opponent, Los Angeles D.A. Steve Cooley, is bad news. He’s a big proponent of the death penalty, and the ACLU last year described L.A. as the leading “killer county in the country.” Cooley has proudly sent 50 people to death row since he became district attorney in 2001, and he vows to make it easier and more efficient for the state to kill people.

He’s also a friend of big business who has vowed, even as attorney general, to make the state more friendly to employers — presumably by slowing prosecutions of corporate wrongdoing.

Harris, to her credit, has refused to seek the death penalty in San Francisco, and would bring the perspective of a woman of color to the AG’s office. For all her flaws, she would be far better in the AG’s office than Cooley. Vote for Harris.

 

INSURANCE COMMISSIONER

 

DAVE JONES

Jones, currently a state Assemblymember from Sacramento, won a contested primary against his Los Angeles colleague Hector de la Torre and is now fighting Republican Mike Villines of Fresno, also a member of the Assembly. Jones is widely known as a consumer advocate and was a foe of Prop. 17, the insurance industry scam on the June ballot. A former Legal Aid lawyer, he has extensive experience in health-care reform, supports single-payer health coverage, and would make an excellent insurance commissioner.

Villines pretty much follows right-wing orthodoxy down the line. He wants to replace employer-based insurance with health savings accounts. He argues that the solution to the cost of health insurance is to limit malpractice lawsuits. He wants to limit workers compensation claims. And he supports “alternatives to litigation,” which means eliminating the rights of consumers to sue insurance companies.

Not much question here. Vote for Jones.

 

BOARD OF EQUALIZATION, DISTRICT 1

 

BETTY YEE

The Board of Equalization isn’t well known, but it plays a sizable role in setting and enforcing California tax policy. Yee’s a strong progressive who has done well in the office, supporting progressive financial measures. She’s spoken out — as a top tax official — in favor of legalizing and taxing marijuana. We’re happy to endorse her for another term.

 

SUPERINTENDENT OF PUBLIC INSTRUCTION

 

TOM TORLAKSON

We fully expected a November runoff between Torlakson and state Sen. Gloria Romero. Both Democrats had strong fundraising and political bases — and very different philosophies. Romero’s a big charter school and privatization fan; Torlakson has the support of the teachers unions. But to the surprise of nearly everyone, a wild-card candidate, retired Los Angeles educator Larry Aceves, came in first, with Torlakson second and Romero third. Now Aceves and Torlakson are in the runoff for this nonpartisan post.

Aceves is an interesting candidate, a former principal and school superintendent who has the endorsement of the San Francisco Chronicle and the San Francisco Green Party. But he’s too quick to take the easy line that the teachers’ unions are the biggest problem in public education, and he wants the unilateral right to suspend labor contracts.

Torlakson wants more charter-school accountability and more funding for primary education. He’s the far better candidate.

 

STATE SENATE

 

DISTRICT 8

Leland Yee

Yee’s got no opposition to speak of, and will easily be re-elected. So why is he spending money on a series of slick television ads that have been airing all over San Francisco, talking about education and sending people to his website? It’s pretty obvious: The Yee for state Senate campaign is the opening act of the Yee for San Francisco mayor campaign, which should kick into high gear sometime next spring. In other words, if Yee has his way, he’ll serve only a year of his next four-year term.

Yee infuriates his colleagues at times, particularly when he refuses to vote for a budget that nobody likes but everyone knows is necessary to keep the state afloat. He’s done some ridiculous things, like pushing to sell the Cow Palace as surplus state property and turn the land over to private real estate developers. But he’s always good on open-government issues, is pushing for greater accountability for companies that take tax breaks and then send jobs out of state, has pushed for accountability at the University of California, and made great progress in opening the records at semiprivate university foundations when he busted Stanislaus State University for its secret speaking-fees deal with Sarah Palin.

With a few strong reservations, we’ll endorse Yee for another term.

 

STATE ASSEMBLY, DISTRICT 12

 

FIONA MA

A clear hold-your-nose endorsement. Ma has done some truly bad things in Sacramento, like pushing a bill that would force the San Francisco Unified School District to allow military recruiters in the high schools and fronting for landlords on a bill to limit rent control in trailer parks. But she’s good on public power and highly critical of PG&E, and she has no opposition to speak of.

 

STATE ASSEMBLY, DISTRICT 13

 

TOM AMMIANO

Ammiano’s a part of San Francisco history, and without his leadership as a supervisor, we might not have a progressive majority on the Board of Supervisors. Ammiano was one of the architects of the return to district elections, and his 1999 mayoral campaign (against Willie Brown) marked a turning point in the organization, sophistication, and ultimate success of the city’s left. He was the author of the rainy day fund (which has kept the public schools from massive layoffs over the past couple of years) and the Healthy San Francisco plan.

In Sacramento, he’s been a leader in the effort to legalize (and tax) marijuana and to demand accountability for the BART Police. He’s taken on the unpleasant but critical task of chairing the Public Safety Committee and killing the worst of the right-wing crime bills before they get to the floor. He has four more years in Sacramento, and we expect to see a lot more solid progressive legislation coming out of his office. We enthusiastically endorse him for reelection.

 

STATE ASSEMBLY, DISTRICT 14

 

NANCY SKINNER

Skinner’s a good progressive, a good ally for Ammiano on the Public Safety Committee, and a friend of small business and fair taxation. Her efforts to make out-of-state companies that sell products in California pay state sales tax would not only bring millions into the state coffers but protect local merchants from the likes of Amazon. We don’t get why she’s joined with Berkeley Mayor Tom Bates to try to get rid of Kriss Worthington, the most progressive member of the Berkeley City Council, but we’ll endorse her for re-election.

 

STATE ASSEMBLY, DISTRICT 16

 

SANDRE SWANSON

Swanson’s a good vote most of the time in Sacramento, but he’s not yet the leader he could be — particularly on police accountability. The BART Police murdered Oscar Grant in Swanson’s district, yet it fell to a San Franciscan, Tom Ammiano, to introduce strong state legislation to force BART to have civilian oversight of the transit cops. Still, he’s done some positive things (like protecting state workers who blow the whistle on fraud) and deserves another term.

 

>>BACK TO ENDORSEMENTS 2010

Downtown money hits district races

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Downtown cash is pouring into the district supervisorial races.

Ethics Department filings show that an alliance backed by the Chamber of Commerce, the SF Police Officers Association and United Health Care Workers West is dropping major money on Steve Moss in D10, Scott Wiener in D8 and Theresa Sparks in D6. 

Called the “Alliance for Jobs and Sustainable Growth,” the coalition supports the building of a mega-hospital on Cathedral Hill.

The independent expenditure alliance puts UHW, part of the Service Employees International Union, in the odd position of using membership money to attack progressive politics in San Francisco – potentially undermining years of work by another SEIU affiliate, Local 1021.

Campaign disclosure forms show that the Chamber-Police-UHW alliance has spent $20,000 on bilingual (English/Chinese) door hangers for Moss that feature photos of Chamber of Commerce President Steve Falk and United Healthcare Workers political director Leon Chow.

These same interests also spent $20,000 on robo-calls for Moss, with a heavy focus on Visitacion Valley in an effort to secure the Asian vote in the crowded D10, where there is a strong likelihood that the race will be decided by second and third place votes

Word on the street in the Bayview is that former Mayor Willie Brown is pissed off that the Chamber is backing Moss, instead of African American candidate Lynette Sweet, and that termed out D10 Sup. Sophie Maxwell is angry that big corporations are trying to buy an election in the poorest and most ethnically diverse district in town.

But unlike the rumor mill, the money trail doesn’t lie. And from that perspective this is looking like a replay of the June 2008 election, when big businesses bought support for Lennar’s Candlestick Point/shipyard development by claiming it would create thousands of jobs building condos that most workers can’t afford—jobs that have yet to materialize.

This time the battle cry is for jobs building a massive hospital, even though few workers will likely get service from this hospital, which is designed to serve as a regional center for high-end health care.

So far, the same alliance of police and corporate money has plunked down $17,000 for bilingual (English and Chinese) door hangers in support of Theresa Sparks in D6 and another $17,000 for bilingual robo-calls in support of Sparks.

And so far, Scott Wiener has gotten the relatively short end of the corporate money stick: the Alliance has only spent $15,000 on a door hanger in support of Wiener.

This means that the alliance spent $90,000 in a two-week period in September. The numbers lend credence to DCCC Chair Aaron Peskin’s belief that the alliance has a war chest of $800,000, which it intends to use to put pro-downtown candidates into power.

Asked about the support of this alliance, Sparks, Wiener and Moss gave markedly different replies that reveal as much about each candidate as the money behind them.

D6 candidate Theresa Sparks suggested that the Alliance was spending more on her and Moss’ D10 campaign, because it felt Wiener was further ahead in the D8 race than she is in D6 or Moss is in D10.

And Sparks was openly supportive of the Cathedral Hill hospital project. “I’ve been very supportive of that project,” Sparks told us.

Sparks also observed that it was logical that the Chamber would support her.

“D6 has one of the largest numbers of small businesses and one of my biggest platforms has been economic growth, and I think the Chamber has been very supportive of job creation,” Sparks said.

By comparison, Scott Wiener told the Guardian that he has not taken a position on CPMC’s proposed mega hospital on Cathedral Hill.

“Those kind of issues could come before the Board, in terms of CEQA issues, and so I could be conflicted out,” Wiener said.

When the Guardian noted that the Alliance has so far not spent any money on phone banking for Wiener in D8, Wiener said, “I have volunteers doing phone banking.”

As for Moss, he told the Guardian that said he doesn’t have a position on the mega-hospital.

“I haven’t seen the plan,” Moss said. “But I understand that there seems to be an agreement that would maintain St. Luke’s with about 300 beds, but that there is a deep suspicion among the nurses that it’s not economically viable. And there seems to be a much greater need for a hospital in the southeast.”

Moss, however, is with downtown on other key issues: He supports the sit-lie legislation on the November ballot. He also reiterated that he likes the rabidly anti-tenant Small Property Owners Association, whose endorsement he called a “mistake” during a previous interview with the Guardian.

“Landlords feel that they are responsible for maintaining costly older buildings and that they are not provided with ways to upgrade their units in ways that share costs with tenants,” Moss, who sold a condo on Potrero Hill in 2007 for the same price that he paid for the entire building in 2001, and owns a 4-floor rent-controlled apartment building in D8, near Dolores Park, that he bought for $1.6 million in 2007, and where he lived from December 2007 to February 2010.

Moss refused to provide a copy of the lease on his current rental at Vermont and 18th St—something that the Guardian requested in light of an email from his wife that indicated that the family intended to move back to Dolores Park of Moss loses the race.
‘That’s private information,” Moss said, claiming that he does not plan to move back into his apartment building in D8, if he loses in November.

Moss claimed that UHW endorsed him because his position on politicians and unions.
“I agreed that politicians should get not involved in union politics,” Moss said. “The United Healthcare Workers seem to be a worthy group,” he added. “All they said was that they wanted to make sure that they had access.”

All this campaign money drama is playing out against the backdrop of a punishing battle between United Healthcare Workers West and the rest of SEIU. And as these recent filings show, UHW is spending a huge amount of its membership dues to undermine the city’s progressive infrastructure by trying to elect candidates who are not progressive, even though its progressive sister union has endorsed Rafael Mandelman in D8.

SEIU 1021 member Ed Kinchley, who works in the Emergency Room at SF General Hospital, is furious that UHW is pouring all its money into downtown candidates like Moss, Sparks and Wiener and trying to undermine everything that its progressive sister union is trying to do.

“UHW basically isn’t participating in the Labor Council, it’s just doing its own thing,” Kinchley said.

Kinchley noted that UHW is currently in trusteeship, and is being controlled by its International, and not its local membership, thus explaining why it’s doing this dance with forces like the Chamber and the Building Owners and Managers Association, which have long been the enemy of labor.

“Sutter wants a monopoly on private healthcare, and people like Rafael Mandelman in and Debra Walker have been strong supporters of public healthcare,” Kinchley said, Kinchley also noted that he wants supervisors who are willing to state their support for public health care, rather than dodging the issue and hedging their bets, right now.

“I want someone who can straight-up say, here’s what’s important for families in San Francisco, especially something as important as healthcare,” Kinchley said. “but it sounds like UHW is teaming up with the Chamber and supporting people who are not progressive.”

“And it’s not OK for somebody in D10 to say they haven’t seen CPMC’s plans, when people from D10 use St. Luke’s all the time for healthcare, because it sounds like Sutter wants to change St. Luke’s into an out-patient clinic for paying customers,” he continued.

SEIU 1021 activist Gabriel Haaland accused the Chamber, the Building Owners and Managers Association, UHW and the Police Officers Association of putting together a massive political action committee, “to try and steal the election through corporate spending.”

All this leaves the Guardian wondering how Leon Chow, the political director of UHW, who has done good work in the past on health care issues, is feeling about seeing his photograph spreads all over town alongside that of Chamber of Commerce President Steve Falk on door hangers in support of Sparks, Wiener and Moss.
 
As of press time, Chow had not returned our calls, but if he does, we’ll update this post.

The test of the Tenderloin

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caitlin@sfbg.com

This is a story about love and money. Or a story about love, money, and location. — Rebecca Solnit, Hollow City (Verso 2000)

It’s a sunny day in the most maligned neighborhood in San Francisco. I’m walking down a busy sidewalk with an excited Randy Shaw, long-time housing advocate. He’s giving me a tour of his Tenderloin.

“There’s history everywhere you look here,” he notes as we rush about the dingy blocks of one of the city’s most densely populated, economically bereft communities. In a half-untucked navy button-down and square-frame glasses, Shaw reels off evidence of this legacy faster than I can write it down and still maintain our walking pace.

To our left, Hyde Street Studios, where the Grateful Dead recorded its 1970 album American Beauty. Across the street, a ramshackle building that once housed Guido Caccienti’s Black Hawk nightclub, where the sounds of jam-fests by the likes of Billie Holiday and John Coltrane would echo out onto the streets during its heyday in the 1950s. Throughout its history, the Tenderloin has been renowned for its nightlife: music, theater, sex work — and the social space that occurs between them.

Shaw came to the Tenderloin 30 years ago as a young law student and founded and built the Tenderloin Housing Clinic, a nonprofit agency that is now one of the largest property owners in the neighborhood and employs more than 250 full-time workers. Shaw has spent the last few decades fighting to improve conditions in the single-room occupancy hotels, or SROs, once notorious for malfunctioning heating systems and mail rooms that would dump the letters for their hundreds of low-income residents into a pile on the floor rather than fit them into personal lock boxes (which now line the walls of THC’s lobbies).

But that activism isn’t the reason for this tour. No, today Shaw is showing me why tourism can work in the Tenderloin. The heavy iron gate of an SRO is quickly buzzed open as the doorman recognizes him. Inside, working-class seniors mill about aided by walkers — this particular property is an old folks’ home — but over our heads, affixed to a majestically high ceiling, looms a triple-tiered glass and metal chandelier, evidence of the area’s architecturally important past.

“When I show people this,” Shaw smiles at my amazement at this bling in a nonprofit apartment building, “they’re amazed at the quality of the housing.” Further down the road, we peep in at a vividly Moorish geometric vaulted ceiling and a lobby that once housed a boxing gym where Miles Davis and Muhammad Ali liked to spar. Both are now home to the inner city’s poorest residents.

Of course, it’s not just tours that we’re talking when it comes to Shaw’s plans for the future. Shaw has acquired a 6,400-square-foot storefront in the Cadillac Hotel on the corner of Eddy and Leavenworth streets, where he plans to open the Uptown Tenderloin Museum in 2012. He says it will showcase the hood’s historical legacy as well as house a nighttime music venue in the basement. The increased foot traffic, he says, will do good things for public safety (a problem that has been identified as a high priority by the resident-run Tenderloin Neighborhood Association) and bring business to the neighborhood’s impressive collection of small ethnic restaurants.

An increased focus on the Tenderloin’s heritage and public image, Shaw says, will translate to more jobs and a better quality of life for the people who live here. “My goal is to have this be the first area in an American city where low income people have a high quality of life,” he says.

If Shaw is correct, it will indeed be a first. Many cities have attempted to transform low income areas with arts districts — and the end result has typically been the displacement of the poorer residents. Coalition on Homelessness director Jennifer Friedenbach described the process: “Gentrification follows a very specific path. First come police sweeps, then the arts, then the displacement. That’s the path that we’re seeing. Hopefully we’ll be able to avoid the displacement part,” she says.

It’d be great if the Tenderloin took the road less traveled — but will it?

Shaw’s best-case scenario seems unlikely, according to Chester Hartman, a renowned urban planning scholar and author of the numerous studies of San Francisco history and the activist handbook Displacement: How to Fight It (National Housing Law Project 1982). Hartman doubts the Tenderloin will remain a housing option for the city’s poor, given its central location and market trends. “The question is, what proportion will move and what will stay?” he said in a phone interview.

Earlier this summer, the National Endowment of the Arts awarded the SF Arts Commission $250,000 toward an arts-based “revitalization of the mid-Market neighborhood.” The area, which is adjacent to the Tenderloin, is considered by many to be the more outwardly visible face of the TL. In truth, the two neighborhoods share many of the same issues and public characteristics, including high density living and prominent issues with drugs.

Amy Cohen, Mayor Gavin Newsom’s director of neighborhood business development, said the Newsom administration is using the money “to implement arts programming that would have an immediate impact on the street. These activities would then build momentum for the longer-term projects.” At this point, plans for that “immediate impact” have started with the installation of lights on Market Street between Sixth and Eighth streets. Two other projects are also in effect: a city-sponsored weekly arts market on United Nations Plaza and an al fresco public concert series.

It’s hard to distinguish these moves from a general trend toward rebranding the image of the Tenderloin. These streets have already seen Newsom announce a historic preservation initiative that put $15,000 worth of commemorative plaques on buildings; it was also announced they would be added to the National Register of Historic Places, a move that allows property owners deep tax cuts for building renovations.

Cohen said her office has spent time trying to attract a supermarket (something the neighborhood, although flush with corner stores, currently lacks), but efforts seem to be faltering. “Grocery store operators and other retailers perceive that the area is unsafe and have expressed concerns about the safety of their employees and customers,” Cohen said. “The arts strategy makes sense because it builds on the assets that are there. Cultivating the performing and visual arts uses that are already succeeding will ultimately enhance the neighborhood’s ability to attract restaurants, retail, and needed services like grocery stores.”

These days, many of the small businesses in the area have window signs hyping “Uptown Tenderloin: Walk, Dine, Enjoy” over graphics of jazzy, people-free high-rises. Looking skyward, one observes the recent deployment of tidy street banners funded by the North of Market/Tenderloin Community Benefit District that pay homage to the number of untouched historic buildings in the neighborhood. The banners read “409 historic buildings in 33 blocks. Yeah, we’re proud.”

Figuring out who benefits from these new bells and whistles can seem baffling at times. Even the museum plan, which Shaw says will draw inspiration in part from New York’s Tenement Museum, has drawn criticism. A July San Francisco Magazine blog post was subtitled “An indecent proposal that puzzled even the San Francisco Visitors Bureau” and likened Shaw’s attempts to the “reality tourism movement” that takes travelers through gang zones in L.A. and poverty-stricken townships in South Africa.

This seems to be a misconstruction of what he’s attempting. “You know what no one ever calls out? The Mission mural tours, the Chinatown tours,” Shaw says.

And Shaw scoffs when I bring up that PR bane of the urban renewer: gentrification. He takes me through a brief rundown of the strict zoning laws in the Tenderloin, adding that many people don’t believe that poor people have the right to live in a high-quality neighborhood: “I haven’t been down here for 30 years to create a neighborhood no one wants to live in.”

Indeed, thanks to the efforts of Shaw and others, it would be hard for even the most determined developers to get rid of the SRO housing in the Tenderloin.

In the 1980s, community activists struggled to change the zoning designation of the neighborhood, which lacked even a name on many city maps. The area was zoned for high-rise buildings and was being encroached on by the more expensive building projects of tourist-filled Union Square, Civic Center, and the wealthier Nob Hill neighborhood. Their success came in the form of 1990s Residential Hotel Anti-Conversion Ordinance, which placed strict limits on landlords flipping their SROs into more expensive housing.

Hartman remains unconvinced of the efficacy of the protective measures activists have won in years past; indeed, even SRO rental prices have soared. According to the Central City SRO Collaborative, in the decade after the Anti-Conversion Ordinance, rental prices increased by 150 percent, not only pricing residents out of the Tenderloin but out of the city. “Where do they move?” Hartman asked. “It’s probably the last bastion of low-income housing in the city. That changes the class composition of the city.”

“The neighborhood has been changing slowly but steadily,” says District Six Sup. Chris Daly when reached by e-mail for comment on the Tenderloin’s future. He writes that rents in the neighborhood have been consistently rising and that several condo development proposals have crossed his desk. Daly has been involved in negotiating “community benefits” and quotas for low income housing in past mid-Market housing projects, but has been disappointed by subsequent affordable housing levels in projects like Trinity Plaza on the corner of Sixth and Market streets. In terms of the Tenderloin, he said, “it is untrue to say that the neighborhood is immune from gentrifying forces. It is shielded, but not immune.”

But some see the influx of art-based attention to the area as a possible boon to residents. Debra Walker, a San Franciscan artist who is running for the District 6 supervisor post, said she believes arts can be used “organically to resolve some of the chronic problems in the Tenderloin, street safety being the primary one in my mind.”

Though most of her fellow candidates expressed similar views when contacted for this story, western SoMa neighborhood activist Jim Meko said he thinks artists in the area are being used to line the pockets of the real estate industry. “The idea of creating an arts district is an amenity that the real estate dealers want to see because it makes the neighborhood less scary for their upper class audience” he says.

The area clearly has a rich legacy of nightlife, arts, and theater. The Warfield is here, as is American Conservatory Theater, the Orpheum, and the Golden Gate. So is the unofficial center of SF’s “off-off Broadway district,” which includes Cutting Ball Theater and Exit Theater. The Exit has been located in the TL since its first performance in 1983, held in the lobby of the Cadillac Hotel, and sponsors the neighborhood’s yearly Fringe Festival. There are art galleries and soup kitchens, youth and age, and more shouted greetings on the streets than you’ll hear anywhere else in the city.

No one is more aware of this diversity of character than Machiko Saito, program director of Roaddawgz, a TL creative drop-in center and resource referral service for homeless youth. I met Saito in the Roaddawgz studio, which occupies a basement below Hospitality House, a homeless community center that also houses a drop-in self-help center, an employment program, men’s shelter and art studio for adults in transition.

Despite its being empty in the morning before the open hours that bring waves of youth to its stacks of paints and silk-screens, Roaddawgz is in a glorious state of bohemian dishevelment that implies a well-loved space. It could be a messy group studio if not for the load-bearing post in the center of the room covered with flyers for homelessness resource centers and a “missing” poster signed “your Mom loves you.”

We talk about how important it is that the kids Saito works with have a place like this, a spot where they can create “when all you want to do is your art and if you can’t you’ll die.” A career artist herself, she cuts a dramatic figure in black, safety pins, and deep red lipstick painted into a striking cupid’s bow. Her long fingernails tap the cluttered desk in front of her as she tells me stories from the high-risk lives that Roaddawgz youth come to escape: eviction, cop harassment, theft, rape.

The conversation moves to some of the recent developments in the area. Saito and I recently attended an arts advisory meeting convened by the Tenderloin Economic Development Corporation’s executive director, Elvin Padilla, who has received praise from many of the TL types I spoke with regarding his efforts to connect different factions of the community. Attendees ranged from a polished representative from ACT, which is considering building another theater, for students, in a space on Market and Mason streets, to heralded neighborhood newbies Grey Area Foundation, to Saito and longtime community art hub Luggage Store’s cofounder Darryl Smith. Talk centered on sweeping projects that could develop a more cohesive “identity” for the neighborhood.

I ask Saito how it felt for her to be involved with a group whose vision of the neighborhood might be focused on slightly different happenings than what she lives through Roaddawgz. She says she’s been to gatherings in the past where negative things about the Tenderloin were highlighted. Of Padilla’s arts advisory meeting, she says, “I think that one of the reasons I wanted to go was that it’s important [for attendees] to remember that there’s a community out there. Things can get really complicated. It’s hard to come up with decisions that affect everyone positively. If we’re going to say, ‘The homeless are bad; the drug addicts are bad; the business owners that don’t beautify their storefronts…” She trails off for a moment. “I don’t want to lose the heart of the Tenderloin.”

In yet another Tenderloin basement — this one housing the North of Market-Tenderloin CBD, an organization that is known for its work employing ex-addicts and adults in transition — Rick Darnell has created the Tenderloin Art Lending Library. The library accepts donated works from painters and makes them available for use by Tenderloin residents, many of whom have recently moved into their SRO housing and are in need of a homey touch.

Darnell is rightfully ecstatic at the inclusive nature of his library, but has been hurt over its reception at an arts advisory meeting he attended to publicize its creation. “Someone whispered under their breath ‘I would never lend anything to anyone in the Tenderloin,’ ” he tells me. The exclusion that Saito and Darnell sometimes feel highlights the reality that the definition of the Tenderloin might well vary, even among those who are set on making it “a better place.” The arts community appears to suffer from fractures that appear along the lines of where people live, their organizational affiliation, their housing status, and how they think art should play a role in community building.

Sammy Soun is one Tenderloin resident who would welcome an increased focus on art in the Tenderloin. Soun was born in a Thailand refugee camp to Cambodian parents fleeing the civil wars in their country. He grew up in the Tenderloin, where his family lived packed into small studios and apartments.

But he was part of a community, with plenty of support, and lives in the neighborhood to this day, as do one of his four siblings and his daughter. Soun paints, does graffiti, draws — he’s considering transferring from City College to the San Francisco Art Institute. He has worked at the Tenderloin Boys and Girls Club for nine years, giving back to the kids he says “are the future. They’re going to be the ones that promote this place or keep it going — if they want to.” His sister, cousins, and uncles still live in the neighborhood. You might say he has a vested interest in the area’s future.

He finds the incoming resources for the Tenderloin arts scene to be a mixed bag. Soun has never been to the Luggage Store, although it’s one of the longtime community art hubs in the area. He can’t relate to the kinds of art done at the neighborhood’s recent digital arts center, Grey Area Foundation for the Arts, though he says the space has contacted him and friends to visit. His disconnect from the arts scene implies that future arts projects need to work harder on their community outreach — or even better, planning — with artists who call the Tenderloin home.

But Soun loves the new Mona Caron mural the CBD sponsored on the corner of Jones Street and Golden Gate Avenue. Well-known for her panoramic bike path mural behind the Church Street Safeway, Caron painted “Windows into the Tenderloin” after dozens of interviews and tours of the neighborhood with community members. Its “before and after” panels are a dummies’ guide for anyone seeking input on ways to strengthen the Tenderloin community — though the “after” does show structural changes like roads converted into greenways and roof gardens sending tendrils down the sides of buildings, the focal point is the visibility of families. Where children were ushered through empty parking lots single-file in the “before” section, the second panel shows families strolling, children running, a space that belongs to them.

Our interview is probably the first time somebody has asked Soun where he thinks arts funding in the Tenderloin should go. “For projects by the kids in the community,he said.

Truth be told, more art of any kind can only make the Tenderloin a better place — but if you’re trying to improve quality life, focus needs to be on plans that positively affect residents of all ages — art can be a vital part of that, but it should be one part of a plan that ensures rent control, safe conditions, and access to services. After all, if you’re going to rebrand the Tenderloin, you might want to look at the painting on the wall.

New website features worst landlords ever

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Tenants Together, a statewide nonprofit advocating for tenants’ rights, has launched a new website that allows tenants to nominate their landlords as the worst ever in California.

The Landlord Hall of Shame features a listing of landlords who’ve been suggested, officially nominated, or installed by vote into the Hall of Shame. The aim is to spotlight landlords who disrespect tenants’ rights, try to force tenants out for their own economic gain, or act in some other egregious way that makes life miserable for a renter. While none of them will be dubbed Hall of Shamers until December, a couple of official nominees already sound like tough contenders.

One of them is David Taran of Page Mill Properties, who has been embroiled in an ongoing battle with Tenants Together after imposing exorbitant rent hikes in an effort to force tenants out of a rent-controlled housing complex in East Palo Alto.

The purpose of the website is two-fold, according to Dean Preston, executive director of Tenants Together. It can be a deterrent to landlord misconduct, but it can also help the tenant advocacy group gather information about problem landlords.

“There are a lot of bad landlords out there that get away with doing the same thing over and over again,” Preston said, “Because no one knows that they did it before. A lot of landlords operate in multiple communities, so people in one city may not necessarily know what they’ve done in another city.”

Preston said that Tenants Together expects to nominate a couple landlords every month. Official nominees are those that the group has researched and found that “their conduct has risen to the level where we should call them out publicly,” he added.

On the list of suggested nominees is Laramar SF, a property management company that has taken over management in many San Francisco properties formerly controlled by Skyline Realty or CitiApartments. The Hall of Shame website is sure to note that if some one has been suggested as a nominee, it’s “not an indication that they have done anything wrong or are bad landlords.” But if tenants visiting the site wish to share comments about their experience with a nominated landlord or add a new one to the roster, they can simply fill out an online form.

“We think this really has the potential to make some landlords think twice about abusing their tenants,” Preston said. “It will make bad landlords realize that there is a spotlight on them.”

The District 8 dilemma

13

tredmond@sfbg.com

Gabriel Haaland, a longtime queer labor activist, was talking to a friend from District 8 the other day, chatting about the race for a supervisor to fill the shoes of Harvey Milk, Harry Britt, Mark Leno, and Bevan Dufty. “She told me that she didn’t know who to vote for,” Haaland said, “because she didn’t know who the progressive was in the race.”

For supporters of Rafael Mandelman, that’s a serious challenge. “The polls are very consistent,” Haaland said. “Most of the voters in D-8 would prefer a progressive over a moderate, and when they know who the progressive is, they support that candidate.”

But oddly enough, although District 8 — the Castro, Noe Valley, and parts of the Mission — is one of the most politically active parts of the city, where voter turnout is consistently high, the supervisorial race is getting only limited media attention. The neighborhood and queer papers are doing a good job of covering the race, but for the rest of the media, it’s as if nothing’s happening. And that’s left voters confused about what ought to be a very clear choice.

The San Francisco Chronicle featured the District 6 race on the front page Sept. 19, with a long story about how demographic changes in the South of Market area would affect the successor to Sup. Chris Daly. District 10, with the mad political scrum of 22 candidates, no clear front runner and endorsements all over the map, has received considerable media attention.

Yet D–8 — which offers by far the most striking distinctions between candidates and the sharpest divisions over issues — has been flying under the radar.

Three major candidates are in the race, two gay men and a lesbian. All of them, for what it’s worth, are lawyers. Rafael Mandelman, who works for a firm that advises cities and counties, has the support of the vast majority of progressive leaders and organizations. Rebecca Prozan, a deputy district attorney, and Scott Wiener, a deputy city attorney, are very much on the moderate-centrist (some would say, by San Francisco standards, conservative) side of the political spectrum.

“As Barbara Boxer has said in her ads, the choice is clear,” Aaron Peskin, chair of the local Democratic Party and a Mandelman backer, told us. “Not to exaggerate, but this is like Boxer v. Carly Fiornia, and Rafael is our Boxer.”

Yet by almost all accounts, Wiener is ahead in the race.

 

ON THE ISSUES

The San Francisco Board of Supervisors has been roughly divided in the past decade between the progressive camp and moderate camp. And while those labels are hard to define (the Chronicle won’t even use the term “progressive,” preferring “ultraliberal”), most observers have a basic grip on the differences.

The moderates, who tend to support Mayor Gavin Newsom, are social liberals but fiscal conservatives. They talk about the city surviving budget red ink without major tax increases. They talk about controlling government spending and increasing public safety. The progressives generally see local government as underfunded after four years of brutal cuts and support the idea of raising new revenue to fill the gap. They support tenants over landlords, seek stronger protections for affordable housing, support Sanctuary City, and oppose sit-lie.

Certainly with Wiener and Mandelman, it’s abundantly clear where the candidates fall. The two agree on some things (they both oppose Prop. B, the pension-reform measure that would reduce health care payments for the children of city employees) and they both support nightlife. But overall, they take very different political stands.

Wiener told us, for example, that the city’s structural budget problems won’t be solved without cuts. “We’re not going to able to tax our way out of this,” he said in an endorsement interview. “We have to lower our expectations for government.”

Other than Muni, public safety, and core public health services, cuts “will have to be across the board,” he said. “What are the things we really can’t do without?”

Wiener supports the sit-lie proposal, saying that he doesn’t think the local police have the tools they need to get poorly behaving people off the streets. He doesn’t support Sup. Ross Mirkarimi’s measure mandating foot patrols because, he told us, he doesn’t think the supervisors should micromanage the Police Department.

Sup. Bevan Dufty, who currently holds the D–8 seat, has voted with the progressives occasionally — but almost never on tenant issues. And Wiener, who has the support of the rabidly anti-tenant Small Property Owners of San Francisco, is likely to follow that approach. Although he told us he supports rent control (which just about everyone in local politics agrees on at this point), he’s not a fan of additional protections against evictions and condo conversions. “I’m not prepared to go beyond what we have now” on eviction protections, he said. He supported Newsom’s plan to allow people to buy their way out of the waiting list and lottery for condo conversions.

And when it comes to public power, he’s to the right of the incumbent: Dufty has said repeatedly that he supports the city taking over Pacific Gas and Electric Co.’s infrastructure and putting the city in control of a full-scale public power system. Wiener says he supports community choice aggregation (CCA), but not full-scale public power.

Mandelman is a big supporter of local government and says, without hesitation, that the city needs more revenue. “The public sector is dramatically underfunded,” he told us in a recent interview. “There’s great wealth in the city and it needs to be tapped to preserve public services.” Mandelman said he’s not “tax happy,” but told us that the structure of how the city raises revenue is a mess. He supports a top-to-bottom review of the city’s revenue base with the goal of making taxation more progressive — and bringing in enough money to fund crucial services.

Mandelman is a foe of sit-lie, which he sees as punitive and ineffective. He opposes gang injunctions and supports Sanctuary City. And he’s a strong advocate for tenants, supporting stronger eviction protections and limits on condo conversions that take away affordable rental stock.

“You have to look at the candidates and ask what their priorities are,” he said. “Are the displacement of long-time residents critically important or something that’s not on the top of the list? Do you believe we need to rebuild the safety net? Or is queer politics all about property values?”

Prozan told us that she’s the one who can “bring the two sides together” and said that, like Dufty, she is “right up the middle.” She supports the hotel tax and the vehicle license fee and opposes sit-lie, but also thinks gang injunctions are a useful tool for law enforcement. She doesn’t see any reason to split appointments between the mayor and the supervisors for the board that oversees Muni or the Redevelopment Agency. She doesn’t think the city can or should do anything more about the conversion of rental property to tenancies in common, but supports the idea of taking over foreclosed properties to create housing for teachers, cops, and firefighters. So it’s safe to say the Prozan would probably be similar to the incumbent — with the progressives on a few things, against them on others.

 

UNDER THE RADAR?

Wiener and Mandelman agree on two basic points: there are stark differences between the candidates — and the city’s major media outlets aren’t paying enough attention. That’s probably because the relatively tame politics doesn’t compare to the sort of wild excitement you see in Districts 6 and 10.

“There’s less chaos than some of the other districts,” Wiener said. “The three major candidates are all hard-working, respected people who have all lived in the district a while.”

He also agreed that he and Mandelman have “very different visions” for the district and the city, and that there are sharp contrasts and divisions between the two candidates.

Prozan also argued that the political differences on issues aren’t going to be the only — or even the deciding — factor for many voters. “I think they’re looking for who’s got the courage and independence to do what’s right,” she told us.

But Mandelman told us there’s a crucial story here that needs to be told: “It’s a definitional fight about what the queer community is about in 2010. As goes D–8, so goes San Francisco.”

Lembi’s legacy

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steve@sfb.com

Two of the most outrageous and intransigent political narratives in progressive San Francisco converge at the Hotel Frank near Union Square.

The first involves the relatively new namesake of a boutique hotel formerly known as the Maxwell Hotel San Francisco, Frank Lembi, the nonagenarian who was once one of the city’s largest and most notorious landlords, running CitiApartments, Skyline Realty, Lembi Group, and other related corporations with his recently deceased son, Walter, and others.

Since the Guardian first reported on allegations of illegal and unethical tactics intended to force protected renters from their homes in an award-winning three-part series (“The Scumlords,” March 2006), Lembi’s empire was sued by the City Attorney’s Office and its former tenants (“SF vs. Frank Lembi,” 10/6/09), followed by a financial crash that involved banks foreclosing on dozens of the group’s properties (“Triumph of tenacity,” 6/1/10).

That downfall has now dovetailed into a second prominent San Francisco story: the ongoing contractual impasse and labor unrest between the city’s corporate-owned hotels and workers represented by Unite-Here Local 2, whose list of boycotted local hotels grew to 10 with the addition of the Hotel Frank earlier this month.

After the Hotel Frank and Hotel Metropolis were foreclosed on by Wells Fargo Bank earlier this year, longtime union workers at the two hotels say their rights have been violated, their benefits slashed, and their workloads increased unilaterally by the bank’s management company, Provenance Hotels, whose representatives refused to comment for this story.

“These are troubling signs of the kind of relations they want to have with Local 2,” Anand Singh, a lead organizer with the union, told the Guardian.

Together, the stories that converge at the Hotel Frank are about the plight of renters and workers in San Francisco, and whether they can maintain their economic standing against attacks from powerful corporate interests.

Corporations run by members of the Lembi family once controlled more apartments in San Francisco than any other landlord, growing rapidly in the 1990s and early 2000s using highly leveraged real estate purchases and renting units under CitiApartments and other names.

Tenants in rent-controlled apartments are protected under various San Francisco laws, but as the Guardian has reported and the city’s ongoing lawsuit against the Lembi empire alleges, the group’s business model was based on trying to force, intimidate, and cajole tenants into vacating those units in order to increase rents. Those complaints were also the subject of well-attended City Hall hearings in 2006 and a campaign called CitiStop organized by the San Francisco Tenants Union.

A separate class action lawsuit by former Lembi tenants brought by the San Francisco law firm Seegar Salvas LLP in 2009 alleges that the Lembi corporations also routinely refused to return the security deposits of former tenants. Both lawsuits are ongoing, with plaintiffs’ attorneys noting that the courts have fined the Lembi corporations for not cooperating with the discovery process.

Yet while the name Frank Lembi had been tarnished in progressive political circles, it was until only recently celebrated in the business press and by downtown organizations such as the San Francisco Apartment Association, which lauded Lembi as a tough-minded visionary. And it was a name that Frank Lembi’s daughter sought to memorialize in 2007 when the company she ran, Personality Hotels, added the York and Maxwell hotels to its string of four boutique hotels near Union Square.

Yvonne Lembi-Detert changed the name of the Maxwell to the Frank Hotel and rechristened the York as Hotel Vertigo after the Alfred Hitchcock movie set in San Francisco. Those familiar with the deal say she paid top dollar for the hotels — $35 million for the Maxwell, which had sold a few years earlier for $18 million. She then borrowed another $10 million to renovate the hotel she had renamed for her father, putting up the Hotel Metropolis in the Tenderloin as collateral.

“This was a vanity project, nothing more and nothing less, Yvonne’s legacy to father Frank,” one worker at the hotels told the Guardian.

Officials at Personality said Lembi-Detert was on vacation and unavailable for comment, but Director of Operations David Chin told us, “The purchase price was what the market bore at the time” and that the renovations were prudent. “The factor that drove the hotel to foreclosure was really the economy.”

Although the loans for the hotels came from a Japanese-based corporation called Nomura, they were packaged along with other troubled loans into collateralized debt obligations (CDOs) — those toxic financial instruments that played such a key role in the crash of the banking system in 2008 — eventually coming to be controlled by Well Fargo.

As the Hotel Frank was put through extensive and expensive renovations that were never completed, the economy turned sour and the Lembis fell far behind in their loan payments. Wells Fargo finally took ownership of both the Frank and the Metropolis in May, contracting the management out to Provenance, which moved quickly to try to turn the financially troubled hotels around.

Workers at the two hotels, most of whom had been there for decades, say the new management team took an aggressive posture from day one, announcing increased workloads, longer work days, suspended vacation pay, and new medical plans with steeply higher costs to workers.

But they arrived in a town with a hotel union energized by clashes with management at hotels all over the city, so the workers at the hotels resisted the changes and their Local 2 colleagues have rallied to their defense. When thousands of workers and their progressive supporters marched through the streets of San Francisco to the Grand Hyatt in July, they stopped at the Hotel Frank along the way and unfurled a banner that read “Frank and Metropolis Hotel Workers United to Fight Provenance and Wells Fargo.” And on Sept. 8, both hotels were added to Local 2’s boycott list.

Singh said Provenance is unfairly trying to hold workers at the hotel responsible for the bad financial decisions that the Lembis made, and he called on Wells Fargo to absorb those financial losses without having its agents attack the union.

“It was not based on anything the workers have done,” Singh said of the financial situation at the hotels. “This huge bank is asking the workers to bear the brunt of this financial strategy even after being bailed out by taxpayers.”

The news that didn’t make the news in SF

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Every year, the Guardian features the Top 10 Project Censored stories presented by the Sonoma State University project that spends all year analyzing which stories the mainstream media missed. But which stories did not find their way into the mainstream press here in the San Francisco Bay Area?

News outlets other than the Guardian typically ignore Project Censored (unless you count SF Weekly’s snark), so you might say that even Censored tends to be censored. Other than that, we note that issues not hand-delivered via press release or PR campaign might receive less attention than those obvious stories. Using a rather unscientific process of surfing alternative news sites online to find out which stories didn’t get a lot of play in the mainstream, we’ve come up with an assortment of Local Censored stories – though this is by no means a comprehensive list. What other news didn’t make the news?

Local Censored stories:

* What we didn’t hear about when PG&E was pushing Prop 16

Speaking at an informational hearing in Sacramento in February 2010 about Pacific Gas & Electric Co.’s ballot initiative, Proposition 16, former California Energy Commissioner John Geesman noted that the state’s most powerful utility company was using customer money to finance a bid to change the state constitution for its own purposes. Prop 16, which earned a thumbs-down from voters in the June election, would have created a two-thirds majority vote requirement before municipalities could set up electricity services separate from PG&E. While there was no shortage of reporting about the astounding sums of cash that PG&E sank into Prop. 16, hardly anyone aside from Geesman picked up on the more salient point of what PG&E was not spending its money on.

“California’s investor-owned utilities face a Himalayan task in modernizing our electricity system and building the infrastructure necessary to serve a growing economy,” Geesman wrote on his blog, titled PG&E Ballot Initiative Fact Sheet. “They ought to focus on that, rather than manipulating the electorate to kneecap their few competitors.” It is now abundantly clear that PG&E’s aging gas pipelines in San Bruno were badly in need of replacement – and the utility’s neglect opened the door the catastrophic explosion that occurred Sept. 9, resulting in tragic loss of life and destroying homes. “The current leadership at PG&E has lost its way. Nobody is minding the ship,” senator Mark Leno told the Guardian shortly after the blast. “Enough with the self-initiated, self-serving political campaigns. … How about focusing on the current mission — to provide gas and electricity safely, without death and destruction?”

PG&E Ballot Initiative Fact Sheet: http://pgandeballotinitiativefactsheet.blogspot.com/
Huffington Post: http://www.huffingtonpost.com/christine-pelosi/deadly-priorities-why-did_b_713800.html

* What you might not have read about Johannes Mehserle’s murder trial
 
If you looked to Colorlines.com, Blockreportradio.com, the San Francisco Bay View, or Indybay.org for coverage of Johannes Meherle’s murder trial for the fatal shooting of Oscar Grant, then you got a different picture from the one offered by mainstream Bay Area news outlets. There may well be plenty of details about the trial that didn’t make the cut for mainstream news, but one particular point caught our eye as something that should’ve warranted more prominent coverage, or at very least sparked deeper questions from mainstream press. According to the witness testimony of Jackie Bryson, who was with Grant on the train platform the night of the shooting, Grant’s friends immediately urged BART police to call an ambulance after Grant had been shot, but police didn’t do it right away.

Here’s the report from Block Report Radio: “Jack Bryson said he yelled at Oscar after he was shot to stay awake and to the police to call the ambulance. The unidentified officer who was on Bryson declared, ‘We’ll call the ambulance when you shut the fuck up!’ Bryson went on to say that he was never searched on the Fruitvale platform or at the Lake Merritt BART police station, which seems ridiculous if you consider the earlier testimony of former BART police officers Dominici and Pirone, who were involved in the murder and who testified last week that they had felt threatened by Oscar Grant and his friends.” So, if it’s true that Grant’s friends were told to “shut the fuck up” when they were urging BART cops to call an ambulance, and that the supposedly threatening parties weren’t ever searched, why didn’t these points receive as much attention in the media as, say, the claim that years earlier, Grant may have resisted arrest? After witnessing the death of his friend, Bryson said in his testimony, he was detained for hours while wearing handcuffs pulled so tight that his wrists hurt, only to be told afterward that since he had not been read his Miranda rights, he was not under arrest. To be fair, the detail about calling the ambulance did make it into the Chronicle, near the bottom of a blog post, under the subhead, “Friend’s claim.”

Block Report Radio: http://www.blockreportradio.com/news-mainmenu-26/894-jack-bryson-hits-the-stand.html
Colorlines: http://colorlines.com/archives/2010/06/defense_opens_with_gripping_testimony.html

* Homelessness on the rise in San Francisco

The controversy surrounding Prop L, a proposed ordinance to ban sitting and lying down on the sidewalk, has been widely reported on — but there’s a more pressing issue related to homelessness that hasn’t gotten nearly as much ink. An article in New America Media, “Shelters predict homeless count to skyrocket,” highlighted a perceived surge in San Francisco’s homeless population, evidenced by overwhelmed service providers who can hardly keep up with demand. “We’re serving 200,000 more meals per year than two years ago, but we haven’t had the capacity to add staff,” the chief executive officer of the Glide Foundation noted in the article. The drop-in center, she added, no longer had enough seats to accommodate those in need. According to a fact sheet issued by the Coalition on Homelessness in July of 2009, 45 percent of respondents to a COH survey were experiencing homelessness for the first time. The overwhelming majority of respondents, 78 percent, became homeless while living in San Francisco.

New America Media: http://newamericamedia.org/2010/04/shelters-predict-homeless-count-to-skyrocket.php
Coalition on Homelessness: http://www.cohsf.org/en/

* The long wait for Section 8

It isn’t easy for a tenant with a Section 8 voucher to find housing in the San Francisco Bay Area. In San Francisco, there’s a barrier to getting the voucher in the first place, since the waitlist is currently closed. Those who have vouchers are often passed over by landlords, and the string of denials can drive people to unstable housing situations such as extended hotel stays. An article in POOR Magazine features the story of Linda William, a woman who left a San Francisco public housing project with a Section 8 voucher in hand only to embark on a wild goose chase, ultimately winding up in a low-end motel outside Vallejo. “Well whaddya know,” William told the POOR magazine reporter, “I found closed wait lists on almost all the low-income housing units in all of those places and all the rest of the landlords wouldn’t even return my calls when I told them I had section 8.” An article by Dean Preston of Tenants Together that appeared in BeyondChron, meanwhile, spotlights the issue of landlord discrimination against Section 8 tenants.  “In the Section 8 voucher program, participating tenants pay 30 percent of their rent and the Housing Authority pays the balance to the landlord,” Preston writes. “It takes years for eligible tenants to be able to participate in the program. Once tenants get off the wait list, the landlord must sign a payment contract with the housing authority in order to receive the portion of the rent paid by the government. By refusing to sign onto the program, some landlords seek to force rent controlled tenants into situations where they cannot pay their rent.”
POOR Magazine: http://www.poormagazine.org/node/3277
BeyondChron: http://www.beyondchron.org/news/index.php?itemid=8012

* San Francisco’s trashy secret

Despite being thought of as a beacon of sustainability, San Francisco’s not-so-green waste stream is something that didn’t make the front page of many papers – except, of course, this one. Sarah Phelan’s “Tale of Two Landfills,” a Guardian cover story this past June, examined San Francisco’s decidedly unenlightened policy of transporting waste far outside of the city despite a goal of reducing waste to zero in the next 10 years. Here’s an excerpt: “It’s a reminder of a fact most San Franciscans don’t think much about: The city exports mountains of garbage into somebody else’s backyard. While residents have gone a long way to reduce the waste stream as city officials pursue an ambitious strategy of zero waste by 2020, we’re still trucking 1,800 tons of garbage out of San Francisco every day. And now we’re preparing to triple the distance that trash travels. ‘The mayor of San Francisco is encouraging us to be a green city by growing veggies, raising wonderful urban gardens, composting green waste and food and restaurant scraps,’ Irene Creps, a San Franciscan who owns a ranch in Wheatland, told us. ‘So why is he trying to dump San Francisco’s trash in a beautiful rural area?’”

SFBG: http://www.sfbg.com/2010/06/15/tale-two-landfills

* The real unemployment rate

The Bureau of Labor Statistics makes a distinction between so-called “discouraged workers” who have stopped looking for jobs, and the jobless who are actively seeking employment, so the official unemployment rate (9.7 percent in San Francisco, according to the most recent data) may be much lower than the actual unemployment rate.

We haven’t seen any brilliant local reporting on this issue, but the problem is summed up nicely in this YouTube video produced by a personal finance software firm.

http://www.youtube.com/watch?v=Ulu3SCAmeBA&feature=player_embedded

Five things you should know about Steve Moss

29

Sarah@sfbg.com

In August 2010, Steve Moss, who is running for District 10 supervisor, took out an ad in the Potrero View, which he owns, titled “Five things you need to know about Steve Moss.”

The ad, paid for by Moss’ political campaign, stated that Moss “edits and publishes this very paper (but got its endorsement on his own merits).” A year earlier, when Moss filed for the D–10 race, he promised in the View that “the paper will not endorse any of the contenders.” Reached by phone, Moss said that part of the ad was intended as a joke.

The other four bullet points seemed to be factual statements about Moss’ accomplishments. But Moss’ misleading ad got the Guardian taking a closer look, and, along the way, we found a lot of other things you probably didn’t know about Moss.

As far as we know, none of these things are illegal, and Moss can certainly argue that none of them are wrong. But since this is a progressive district, we thought voters would want to know a little more before the November election.

1. He’s a carpetbagger

Moss portrays himself as a District 10 resident who spent the last decade raising his family on Potrero Hill. In fact, during 2008 and 2009, Moss wasn’t living on Potrero Hill at all. When he filed his intent to run in the D–10 race in 2009, he was living near Dolores Park in a four-floor, four-unit, $1.6 million apartment building he owns. And shortly before he filed his intent to seek office, Moss’ wife told friends that the family was only moving to District 10 so Moss could run for supervisor, and that if he lost, they would be moving back to the Dolores Park area.

In his declaration of intent to run, a legal document he signed under penalty of perjury Aug. 4, 2009, Moss listed his address as 2325 Third St. That address is where the View; Moss’ nonprofit San Francisco Community Power; and M.Cubed, Moss’ private consulting company, share space. It’s also where where the Moss campaign asked supporters to send checks. It’s not where Moss was living with his family.

Indeed, evidence that came to light in a lawsuit between Moss and his wife, Debbie Findling, and a couple who co-own the property where Moss used to reside on Kansas Street, indicate that he moved out of D-10 in November 2007 and was living at 296 Liberty Street, in District 8, until February 2010.

In a July 8, 2009 e-mail to friends, filed in court in this lawsuit, Moss’ wife noted: “Steven has decided to run for city supervisor in District 10!!! (Sophie Maxwell’s term ends in November 2010) so we’ll be moving back to the hill in early spring! If you hear of any lovely rentals let us know. Or — I know it’s a crazy idea — but if you’re interested in swapping houses with us for a year as an even trade, you can move into our place on Dolores Park! (We’re hedging our bets in case he doesn’t win, we’d be moving back to Dolores Park after the elections. If he does win, we’ll find a long-term place to live … ).”

Reached by phone, Moss told us that it was only his candidate intention statement — a form that allows a candidate to start to raise money — that he filed while living at Liberty Street in 2009, not his official declaration of candidacy form. The language on the two forms is slightly different; the intent form only asks for a “street address” while the actual declaration of candidacy asks for a “residence” address.

Moss said he filed his declaration of candidacy a few days before the deadline, this summer. That form requires candidates to have resided in the district for not less than 30 days immediately preceding the date they file.

Moss insisted that he currently lives in a rental house at 2145 18th Street. “I’m planning to win,” Moss told us. “And we’re very much enjoying the house on Potrero Hill and hoping to stay there.”

2. He managed to avoid the condo lottery.

Moss and his wife bought a two-unit house on Kansas Street in May 2000 for $648,000 and filed for a condo conversion permit in 2002. San Francisco only allows only 200 condo conversions a year. It’s tough to get a permit, it’s very lucrative if you do, and most applicants — including two-unit buildings with a single owner — have to enter a lottery. But thanks to a strange short-term loophole in the law, Moss managed to get away without doing that.

The application, which got tentative approval in March 2004, notes that Moss and his wife — single owners of a two-unit building — did not win the lottery or qualify for a bypass. Asked how he managed this, Moss pointed to a loophole in legislation that former Sup. Jake McGoldrick passed in 2001. “The McGoldrick clause allowed us to directly convert it,” Moss said.

McGoldrick’s law tightened the conversion rules, but allowed two-unit buildings that, like Moss’, had only one owner-occupant, to slip through. The odd thing is that Andrew Zacks, a lawyer who represents landlords, and the Small Property Owners of San Francisco sued to overturn the McGoldrick legislation (not because of the loophole but because of the new restrictions) and the Superior Court ruled in January 2003 that the law was “unconstitutional on its face” and ordered that the city “shall not enforce this ordinance.” That should have ended the loophole, too.

Records show that Moss’ condo application was signed Feb. 10, 2003 by Planning’s Larry Badiner and received tentative mapping approval March 2004.

Department of Public Works Surveyor Bruce Storrs told us he thinks Moss’ case fell through the cracks. “It doesn’t say it was a McTIC,” Storrs said, using the nickname for McGoldrick’s condo conversion loophole, as he reviewed Moss’ file. “But it’s the only thing that makes any sense.”

There’s no indication that Moss did anything wrong, but he sure got a sweet deal. Records show that after he got his conversion permit, he sold the upper unit of Kansas Street in 2007 for more than he paid for the entire building in 2000.

3. He has the support of some very anti-tenant folks.

Attorney Zacks, who specializes in evictions and TICs, gave Moss $500, and the candidate claimed it was because his wife knows Zacks from the playground of the school where their kids both go. Pressed, Moss confirmed that Zacks is his attorney in a court case against the co-owners of the Kansas Street property and in another action he filed against a tenant in his Liberty Steet building in May 2009.

Moss also has the support of the Small Property Owners group, which opposes almost all tenants rights and is among the most conservative, pro-property rights groups in the city. He told us he made a mistake in seeking that endorsement.

And on Aug. 24, conservative campaign finance consultant Jim Sutton, who typically represents big business interests, filed papers representingThe Alliance For Jobs And Sustainable Growth,” which is financing three independent expenditure committees, one supporting Moss; another supporting Scott Weiner in D-8; and the third supporting Theresa Sparks in D–6.

4. He’s involved in a nasty lawsuit with his former neighbor.

Records show that after Moss and Findling subdivided their property on Kansas Street, they sold the upper unit to Edward Penrose and Heather Gibbons in 2007 and moved near Dolores Park.

Court filings suggest the couples remained friendly until March 2010, when Moss and Findling tried to sell the Kansas Street lower unit for $600,000 and ran into problems.

After the deal fell through, Moss and Findling turned around and sued Penrose and Gibbons, claiming that their behavior “constitutes a nuisance.”

In their complaint, Moss and Findling claim they suffered emotional distress, loss of sale, and diminution of the value of their lower unit on Kansas Street “due to the need, going forward, to disclose to buyers that [Penrose and Gibbons] have a propensity to engage in malicious and antisocial behavior.”

On July 30, Gibbons and Penrose countersued. They claim that when they offered to purchase 673 Kansas Street, Moss and Findling never disclosed that there was a boundary line dispute or prior instances of flooding, drainage, and grading problems that had damaged an abutting property.

Now Penrose and Gibbons are asking the court to rescind the purchase agreement whereby they obtained ownership of their Kansas Street condo.

Findling and Moss responded Aug. 31, claiming that “cross-complainants have unclean hands in that, beginning in the spring of 2010, they undertook efforts to interfere with the sale of the lower unit 673 1/2 Kansas] by making unfounded noise complaints and did discourage the buyer from consummating the transaction.”

Asked about this messy legal dispute, Moss said, “We were unhappy with the outcome of a sale in escrow that they disturbed.”

5. His nonprofit pays a bunch of money to his private consulting firm.

In 2001, Moss and two partners founded a private consulting company called M.Cubed. A few months later, Moss and his partners also founded SF Community Power, a nonprofit that started using M.Cubed as a consultant. “M.Cubed was subsequently awarded a contract from SF Community Power. I’m paid directly from SF Community Power, and I’m paid a consulting fee at M.Cubed, depending how much I work,” Moss told us.

Records show that as SFCP’s director, Moss made $48,000 in 2009 and $50,000 in 2008. But more than $1 million has moved from Moss’ nonprofit into Moss’ private consulting firm since 2001.

Moss confirms that SF Power has received $350,000, some of it from Pacific Gas and Electric Co. through the California Public Utilities Commission in 2010; $440,000 in 2009; and $500,000 in 2008 — and that some of those dollars went to M.Cubed.

“I intervene in regulatory cases on behalf of SF Community Power,” Moss said, “And then, if you win a case, you get compensation after the case.”

The Potrero View shares office space with the nonprofit and the consulting firm. Last year, SFCP paid $22,000 in rent, and the View paid SFCP $5,000 toward that rent.

Alhough Moss’ campaign asked supporters to mail contributions to the office that all three of Moss’ business entities share, his campaign finance records show that as of June 30, he had paid no rent for campaign headquarters. “I haven’t had a campaign headquarters,” Moss said. “It’s pretty much been at my house.”

Editor’s Notes

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Tredmond@sfbg.com

We’ve been doing a lot of reporting on Steve Moss, a candidate for supervisor in District 10 who lived in District 8 when he filed his initial election papers and launched his campaign. Moss, who owns a residential building on Liberty Street near Dolores Park, insists he is now a full-time resident of Potrero Hill, renting a nice place at 18th and Vermont — and that he moved in long before the legal deadline for declaring an official candidacy.

It’s actually not a high standard — city law says you only have to live in a district for 30 days prior to the filing deadline. And since Moss is hardly the only candidate to make a relatively recent relocation, it’s worth asking the question: how important is long-time residence to a candidate for district supervisor — and how long is long enough?

I’ve always supported district elections, in part — and this is critically important — because you can win in a district without raising a huge amount of money. When the universe of voters you’re trying to reach numbers around 30,000, you don’t need $500,000. You can knock on doors, go to neighborhood forums, mobilize volunteers for a get-out-the-vote operation, and get elected with the kind of money you can raise in a real grassroots campaign. That means downtown, the landlords, the developers, and big business interests don’t carry the day, the way they did when the board was elected at-large.

But the other goal of district elections was to ensure that every part of town got represented on the board — and to bring legitimate activists with roots in a community to the table. That means people who have more than a passing interest in where they live.

The first few times around, it wasn’t much of an issue — with the obvious exception of Ed Jew, and the possible exception of Michela Alioto-Pier, everyone who has been elected so far under the district system ran from a neighborhood where he or she had be living, and doing community work, for years.

But this time, people have been venue-shopping. I heard a lot of potential candidates over the past year talk about moving into one district or another to run, and I think we’ll see more of it in the future. It can get tricky; Moss, for example, owns the Potrero View newspaper and lived in D-10 for years, then moved out and bought a place near Dolores Park. When he decided to run for supervisor, he moved back. At least he has some history and ties to the community — but I don’t think there’s a lot of dispute over the fact that he moved back to run for office, and that if he hadn’t decided to run, he’d still be living on Liberty Street.

Jane Kim, president of the School Board, moved into District 6 about a year and a half ago — about the same time she started talking about running for supervisor from that district. Again: perfectly legal — although her ties to the neighborhood and to neighborhood activism aren’t anywhere near as strong as some of the other candidates in the race.

We’re going to have to watch this, carefully — and the 30-day requirement is clearly too weak. You should have to live in a district for at least a year before you can file even exploratory papers — and every neighborhood questionnaire should ask candidates to list every address they’ve lived in for the past five years. That might slow down the shopping a bit.

Steve Moss, carpetbagger

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UPDATE: Read Steve Moss’s response to this story here.

Steve Moss portrays himself as a District 10 candidate who has spent the last decade raising his family on Potrero Hill, working as a non-profit energy guy and publisher and editor of the Potrero View.

But in fact, during 2008 and 2009, Moss wasn’t living on Potrero Hill at all. When he filed his intent to run in the D. 10 race in 2009, he was living near Dolores Park, in a 4-floor 4-unit $1.6 million building he owns, and sending his daughter to Brandeis Hillel Day School, a private establishment near Daly City.

And shortly before he filed his intent to seek office, his wife told friends that the family was only moving to District 10 so Moss could run for supervisor, and that if he lost, they would be moving back to the Dolores Park area.

In his declaration of intent to run, a legal document he signed under penalty of perjury Aug. 4, 2009, Moss listed his address as 2325 Third Street, with a 94107 zip code. That address is where the View and Moss’s nonprofit San Francisco Community Power have their offices, along with M.Cubed, a private company that Moss and two other people founded.
In other words, the building is not where Moss was living with his family.

In fact, evidence that came to light in a lawsuit between Moss and his wife, Debbie Findling, and a couple who co-own the property where Moss used to reside on Kansas Street, indicate that he was living at 296 Liberty St, in District 8, until February 2010.

In a July 8, 2009 email to friends, filed in court as evidence in the lawsuit Moss’s wife noted:

“Steven has decided to run for City Supervisor in District 10!!! (Sophie Maxwell’s term ends in November 2010) so we’ll be moving back to the Hill in early spring! If you hear of any lovely rentals let us know. Or—I know it’s a crazy idea—but if you’re interested in swapping houses with us for a year as an even trade—you can move into our place on Dolores Park! (We’re hedging our bets in case he doesn’t win we’d be moving back to Dolores Park after the elections- If he does win, we’ll find a long-term place to live…).”

A three-day notice to cure or quit that Moss and Findling filed against one of their tenants at the Liberty Street address, which is also listed on public records as 841-849 Church Street, shows that between January 2008 and April 2009, Moss and his wife lived at the Dolores Park address.

For instance, Moss and Findling’s nuisance notice against this tenant notes that on “April 8, 2009, 7:10 a.m.—you pounded on the ceiling of your bedroom for several minutes and cursed repeatedly, “Shut the fuck up!”, severely annoying your landlords and scaring their daughter.”

Moss’s wife subsequently sent out a email in February 2010, alerting folks that the couple had moved from Liberty Street to their current address at 2145 18th Street, SF, CA 94107.

Reached by phone, Moss told us that it was only his candidate intention statement — a form that allows a candidate to start to raise money — that he filed while living at Liberty St. in 2009, not his official declaration of candidacy form. The language on the two forms is slightly different; the intent form only asks for a “street address,” where as the actual declaration of candidacy asks for a “residence” address.

Moss said he filed his declaration of candidacy a few days before the deadline, this summer. That form requires that candidates must have resided in the district for which they are running, for not less than 30 days immediately preceding the date they file. Under city law, candidates must continue to reside, if elected, in the district during their incumbency.
“I’m planning to win,” Moss told us. “And we’re very much enjoying the house on Potrero Hill and hoping to stay there.”
He added: “I have lived, worked and raised my family on Potrero Hill consistently for the last ten years.”

Pressed, Moss acknowledged that he owns an apartment building near Dolores Park. But he said he did not actually evict the nuisance tenant and has since rented out his own family’s apartment in the building.

‘We have not occupied it recently, we have a tenant there,” Moss said. Asked where he is living now, Moss said he’s renting at 18th and Vermont.

Moss confirmed that Andrew Zacks, an Ellis Act eviction specialist, is his attorney in the court case against the co-owners of the Kansas Street property and in the notice to cure that he filed on May 13, 2009.

When we called the city’s Ethics Department, a spokesperson said that they can’t comment on a specific race.
“But if someone signs a candidate form under penalty of perjury and they give an incorrect address, where they do not reside, that would add up to perjury,” the spokesperson, Mabel Ng, said.

On the Cheap listings

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On the Cheap listings are compiled by Paula Connelly. Submit items for the listings at listings@sfbg.com.

THURSDAY 26

The Bearded Gentleman Books Inc., 2275 Market, SF; (415) 864-6777. 7:30pm, free. Men have been growing and styling their facial hair for centuries. Hear facial hair expert Nick Burns read from his authoritative, detailed guide, The Bearded Gentleman: The Style Guide to Shaving Face, on 50 specific facial hair styles and how to grow and maintain them.

“On Artists and Institutions” Yerba Buena Center for the Arts, 701 Mission, SF; (415) 978-2787. 6pm, free. Curators Stuart Horodner and Betti-Sue Hertz and artist Sergio de la Torre discuss the relationship between local artists and their city’s arts institutions, and the meaning of “local” in an increasingly globalized art world. RSVP required, email tlam@ybca.org.

“Seedy Side of SF” Bender’s Bar and Grill, 806 South Van Ness, SF; (415) 824-1800. 8pm, free. Check out six short silent films from Grumblefish Films that depict the darker sides of San Francisco, with slapstick humor revolving around heavy drug use, hard boozing, jerk landlords, and more from the underbelly we all know and love.

BAY AREA

007 Jack London Square, 2 Webster, Oakl.; www.jacklondonsquare.com. 7:30pm, free. Practice your double agent skills at this free showing of the newest James Bond movie, Quantum of Solace, coupled with some James Bond trivia and DVD prizes. Prepare for the night by getting a martini, shaken of course, beforehand at one of the many surrounding bars.

FRIDAY 27

BAY AREA

Eat Real Festival Jack London Square, 2 Webster, Oakl.; www.eatrealfest.com. Fri. 2pm-9pm, Sat. 10:30am-9pm, Sun. 10:30am-5pm; free. Celebrate tasty, fresh, handmade food, with a focus on food craft, street food, artisan beers, and local wines at this three day food and culture festival, where no food item will be priced over $5. There will also be DIY lifestyle demonstrations, tons of live music, films, a lit fest, a Porchlight Storytelling performance on Sunday, and more.

SATURDAY 28

Climate Change, Adaptation, and the Gowen Cypress Meet in the Presidio at the parking area at the intersection of Pacific and Walnut, SF; www.wildequity.org. 10am, free. Join Brent Plater of the Wild Equity Institute and Dr. Daniel Gluesenkamp of the Bay Area Early Detection Network for a guided tour of the Presidio’s misplaced Gowen Cypress, an endangered species that is not native to the area.

Cow Palace Farmer’s Market Cow Palace, Lower Parking Lot, 2600 Geneva, SF; 9am-1pm, free. Get some fresh and affordable produce, baked and specialty goods, live music, and more at this community farmers market, happening every Saturday through October 16.

“Regeneration Art Walk” Meet at Intersection for the Arts, 446 Valencia, SF; (415) 626-2787. Noon, free. Attend this guided art walk on Valencia street of artwork curated and created by current and previous participants in Intersection’s Leadership Training Program, exploring regeneration as an integral aspect of growth in our personal lives and communities. Meet the artists and hear about their creative process and response to the theme of regeneration.

“Wondrous Strange” SFMOMA Artists Gallery, Fort Mason Building A, Fort Mason, Marina at Buchanan, SF; (415) 441-4777. 2pm, free. Attend the closing event for the exhibit, “Wondrous Strange: A Twenty-first Century Cabinet of Curiosities,” featuring works by more than a dozen Bay Area artists and including photography, sculpture, and painting, the exhibition explores themes such as evolutionary biology and history, progress and decadence, and the carnal and the intellectual.

SUNDAY 29

“Paint Out” Presidio Officer’s Club, 50 Moraga, SF; (415) 561-5500. 11am-5pm; free, $15 to enter. All artists working in any medium are invited to participate in this California Watercolor Association outdoor painting competition, where each artist has four hours to Select a subject and paint any scene visible from the grounds of the Presidio. Each artist can exhibit one completed work to be voted on for a chance to win cash prizes.

MONDAY 30

“Pint Sized Plays” Café Royale, 800 Post, (415) 441-4099. 8pm, free. Grab a beer and enjoy a series of original short plays by local writers presented in a range of tones and styles that involve people drinking beer and end once the beer is gone. Cheers!

“Up All Night” Hemlock Tavern, 1131 Polk, SF; (415) 923-0923. 7pm, free. Join in this Porchlight Storytelling Series Open Door event, where attendees are invited to tell their own five minute story about whatever it is that they were doing all night when they should have been in bed. Sign up sheet for participants will be available shortly before 7pm.

Ideas that work: a plan for a new San Francisco

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OPINION San Francisco is a city of tremendous riches and problems — a locus of wealth, inequality, innovation, creativity, and sometimes stifling resistance by political and economic power brokers. It’s time to break through. We have the ability, and opportunity, to create a whole new set of economic, social, and political relationships between people and government. On everything from municipal banking, to Muni reform, to public-controlled sustainable energy production and community-driven budgeting, we have a flood of ideas from thinkers and activists across the city.

The Aug. 14-15 Community Congress at the University of San Francisco will focus on turning those ideas into a political platform the city can implement. Last week, we described the vision; this week, we offer some proposals that will be discussed at the event; following the event, others will be posted at sfbg.com.

The event runs Aug. 14 from 9 a.m.–5 p.m. and Aug. 15 from 9 a.m.–1 p.m. at USF’s McLaren Conference Center. For information, go to www.sfsummitcongress.wordpress.com. (Karl Beitel and Christopher Cook)

1. A MUNICIPAL BANK


San Francisco is rich — it has $16.1 billion in assets, with a net worth of $6.5 billion, according to the city treasurer. With a little maneuvering and political will, roughly a half-billion of that money could be devoted to creating a municipal bank: a fiscally solvent, federally insured economic engine that would invest in community development projects serving underfunded activities and endeavors, providing significant economic and social benefits to the residents of San Francisco.

With its own public bank, San Francisco could begin to fund and promote more community-centered forms of economic development. Worker co-ops, for instance, could get loans for projects that are socially beneficial and economically viable. The bank could also help generate new homegrown industries that produce both revenue and social value to the city. This would help democratize the city economy, giving financial muscle to community-based projects and neighborhood-serving businesses.

Over a period of three to five years, a modest portion of the city’s liquid investments can be transferred to create to the new bank. The bank could use this pool of capital to extend low-interest, long-term loans for projects located in San Francisco. The bank would offer a full spectrum of retail banking services, such as money market accounts, to attract additional deposits to supplement funds from the city.

A municipal bank has potential to grow into a major economic force in the city for financing community-centered development. With the right up-front commitment from the city, the total asset portfolio of loans and other investments would grow far beyond this initial public investment — representing a significant infusion of loan capital into currently underserved segments of the credit market in San Francisco.

The municipal bank would be a member-owned, federally chartered, and federally insured credit union. It would engage in rigorous vetting of loan applicants. But because the bank would not run as a profit-maximizing enterprise, loan officers would explicitly consider projects in light of their economic viability and potential contribution to the economic, social, and cultural well being of San Francisco.

Priority could, for instance, be given to loans for affordable housing development and community economic development. In particular, the bank could prioritize businesses and enterprises that represent alternative models of ownership such as worker co-ops and worker collectives, and smaller, community-serving, locally-based, social enterprise-type businesses.

To ensure that the bank’s lending activities reflect the need for more democratic modes of credit and finance, governance and oversight could include representation from social groups and constituents normally excluded from corporate governance. The bank’s member-owners would elect the board of directors.

Municipal bank funds would be completely separate from the city’s general fund, with strict firewalls imposed to assure that lending activities do not become intermingled in any way with the annual appropriations process.

By creating its own bank, San Francisco would be a national model for community-based development and economic democracy. It would be a national first, and has the potential to transform how cities think about local economic development. (Beitel)

2. HOUSING SAN FRANCISCO


Since the beginning of the dot-com boom, San Francisco has seen displacement of low-income families from rent-controlled housing in alarming numbers. Much of this displacement has been happening through conversion of small residential apartment buildings (between four and 12 units) into tenancy in common units. Small-site displacement tends to target seniors, disabled people, and working class families — and many of the units that were converted were, under rent control, de facto affordable housing.

In addition, over the past 15 years the city has lost 4,370 units due to Ellis Act evictions. At the same time, the city’s housing production model favors larger projects because of the economies of scale possible for new construction of big projects, with 70 or more units. While these projects are important in adding to the city’s affordable housing stock, sites to accommodate giant developments are in short supply.

So how do we address San Francisco’s chronic affordable housing crisis. First, stabilize low-income communities and preserve diverse neighborhoods by encouraging the city to invest in developing a small sites acquisition and rehabilitation program that could help nonprofits take over and operate affordable rental housing for low-income tenants. That property could also be converted to limited equity housing cooperatives and community land trust properties.

Next, the city should ban all TICs from becoming condos. The city can give landlords and speculators a choice: If you want your property to be eligible for condo conversion, with all the economic benefits that come with that designation, then you need to follow the process and abide by tenant protections in the condo law. If you want to ignore the condo law, then you’re stuck with a TIC.

To further protect renters, prior to sale of a renter-occupied unit, the city could require the owner to offer tenants the right to buy the unit, at a price based on the last best offer from a bona fide purchaser.

The Rent Board also needs reform. The panel, which oversees rent increases, consists of five members: two landlords, two tenants, and one homeowner. All are appointed by the mayor. We suggest three tenants, two landlords, and two homeowners — with the appointments split between the mayor and the supervisors.

There also must be a permanent, local source of funding for affordable housing development. A progressive increase in the real estate transfer tax could generate $45 million annually.

We further support Sup. Ross Mirkarimi’s proposed legislation that would protect resident’s rights during relocation and ensure their right to return to buildings that have been redeveloped. (Amy Beinart and the Council of Community Housing Organizations)

3. THE CRISIS IN CARE


More than any other American city, San Francisco relies on a network of faith- and community-based nonprofits to deliver critical health and human services to its poorest and sickest residents. More than 15,000 people are employed in this sector, which had a total budget of almost $800 million in 2000.

Health and human service nonprofits play a significant role in providing a substantial portion of the city’s services for seniors, people with AIDS, the homeless, children and youth, people with special physical and mental needs, and those who suffer from substance abuse.

Yet this critical sector finds itself bearing the brunt of cuts and reduction in services caused by the fiscal crisis facing San Francisco.

So what can we do? Here are seven suggestions.

First, conduct a coordinated citywide health and human services needs assessment driven by neighborhoods and communities.

Second, working with service users, service providers, and city employees, create a 10-year plan for health and human services that can guide yearly budget considerations.

Third, as the city implements the 2009 ballot measure that calls for a two-year budget cycle informed by five-year financial plans, require department heads and commissions to include the perspective of professional service providers and service users, including a standards analysis plan and a narrative about the impact on services.

Fourth, open a dialogue with the foundation community on addressing the changing needs of the nonprofit human services community, including community needs, accountability, and funding cycles.

Fifth, depoliticize the request-for-proposals (RFP) process by moving it out of city departments and into the Controller’s Office.

Sixth, require city departments that contract with nonprofit health and human service providers to complete their implementation of the recommendations to streamline the city’s contracting and monitoring processes approved by the 2003 City Nonprofit Contracting Task Force, and ensure that current procedures and processes are consistent with those recommendations.

And seventh, preserve services for the most vulnerable San Franciscans by focusing on revenue solutions to the city’s ongoing structural budget deficit, including November 2010 campaigns to increase the hotel tax and the real property transfer tax. (Debbi Lerman, Human Services Network)

4. BUILDING WORKER COOPERATIVES


Although these are hard times, there’s an opportunity for San Francisco to realize a new model of economic sustainability — by supporting worker cooperatives.

The worker cooperative model is a business form well-suited to the diverse needs of urban areas and is already viable in a broad variety of sectors including manufacturing, service, and retail. A key aspect of worker cooperative development is that its goal is not just the creation of jobs; it’s also about making business ownership accessible.

An inspiring new model of economic development is currently taking place with the Evergreen Cooperatives in Cleveland. In an ambitious effort, anchor institutions such as the local universities, hospitals, and the City of Cleveland have established procurement agreements with developing worker cooperatives rooted in the struggling urban communities of Cleveland (where unemployment rates are as high as 25 percent). The goal is to redirect the estimated $3 billion that these anchor institutions spend on goods and services toward worker cooperatives in the communities where these institutions are located. The first two business models underway are a commercial laundry service and a solar installation company.

There’s also a lot of inspiring work already being done by the worker cooperative community in the Bay Area. The Arizmendi Association continues to develop new worker-owned bakeries despite the economic recession. This fall, Arizmendi will launch its second SF location in the Mission District, creating new jobs and opportunities for local residents to have ownership over their work. Rainbow Grocery and Other Avenues are two extremely successful, long-lasting worker-owned grocery stores in San Francisco.

The city ought to officially recognize the worker cooperative model as both viable and preferable, and include it in the city’s various efforts of economic development. And city officials should take a leadership role in reimagining what a vibrant economy could look like and begin to promote worker cooperatives as central to that vision. (Poonam Whabi, Rick Simon, Steve Rice, Inno Nagara, and Nadia Khastagir)

Newsom’s extortion

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The mayor really wanted the supervisors to get rid of two reform measures that would have shifted to the board some of the appointments to the Recreation and Park Commission and Municipal Transportation Agency. The landlords really wanted the board to scrap a plan to reform the Rent Board. And both got exactly what they wanted.


I agree that the budget has some good news, that Newsom has agreed to fund more than $40 million worth of necessary services that he initially wanted to cut. But the price was high: The supervisors had to go along with Newsom’s attempt to undermine structural reforms at two city agencies. The mayor essentially held the board hostage: If he didn’t get his way on issues totally unrelated to the budget, then he’d refuse to pay for a long list of things that the supes wanted. (And these weren’t pet projects of board members; we’re talking about life-saving essential services. The mayor in effect said that he’d allow desperately sick people to die on the streets for lack of a bed at SF General if the board tried to take away his ability to pack Rec-Park and MTA with his favorite political hacks. Sweet guy, huh?)


Is balanced representation on two important city agencies worth the price of $43 million in cuts to essential programs? That’s a nasty question, and the mayor put the board in a very bad position. In the end, the supes could have stood up to his extortion, and didn’t.


Meanwhile, the landlords threatened to spend millions to defeat a measure reforming the Rent Board — and then they threatened to also pour money in to supporting Public Defender Jeff Adachi’s pension measure, which labor is really nervous about. And there was always the implied threat that landlord money would go into the district supervisor races. So progressives decided that they couldn’t win that battle and the rent board measure died


And, of course, Newsom’s sit-lie law and his plan to kick members of the Board of Supervisors (but not himself) off the Democratic County Central Committee are both still on the ballot. He didn’t give up a thing.


So the landlords and the mayor won this round, but the supes can still fight back. What Newsom did was unconscionable; it’s not as if he was negotiating a tax hike measure against cuts, or a measure that would have mandated new spending against reductions somewhere else. He took two items that had nothing to do with finance and made them bargaining chips in the budget discussions.  If the supervisors did that, they’d be violating state law, which forbids vote trading.


So what San Francisco needs now is a law that bars the chief executive from vote-trading, too. Let’s get that introduced and approved — and see if Newsom wants to veto it.

Small biz should support Chiu tax plan

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EDITORIAL It’s rare to see a fairly conservative city agency, created in part to make it harder for progressives to push measures that might affect business, come down in favor of a new business tax. But the San Francisco Office of Economic Analysis has concluded that the proposal by Board of Supervisors President David Chiu to change the local payroll tax and impose a new tax on commercial rents would actually help local businesses, particularly small businesses. The proposal presents a crucial opportunity for progressives to make the case that the Chamber of Commerce and big downtown corporations are not advancing the interests of small businesses — and local merchant groups need to pay attention.

Chiu has taken on a problem that has lingered in San Francisco for decades. The city’s business tax is terribly regressive: Only 10 percent of the companies in town even pay the payroll tax, in part because banks, insurance companies, and financial services firms are exempt under state law. That means the burden falls the heaviest on small and medium-sized companies — the ones that provide most of the net job growth in the city.

The new proposal would make the flat payroll tax more progressive and would exempt more small businesses. It would also raise $28 million more a year for the cash-strapped municipal coffers by taxing commercial rents of more than $60,000 a year.

The commercial rent levy would force the big outfits that now pay no city taxes whatsoever to take on at least some of the burden of financing San Francisco government. Smaller companies with modest leases, and small commercial landlords, wouldn’t pay the new tax at all.

Chiu originally had proposed an even broader tax, which would have raised more than $35 million. But after the Small Business Commission expressed concerns, he changed the measure, reducing the burden on small business even further. And at this point, Ted Egan, the city’s chief economist at the Office of Economic Analysis, reports that the tax would lead to greater job creation in the private sector (because of the reduction in the payroll tax) as well as greater job creation in the public sector (because of the additional revenue to the city).

It’s the kind of idea that ought to have broad-based support — progressives looking to fund crucial services see it as a way to bring in money, and small businesses ought to see it as a way to cut taxes and create jobs in the sector of the city that most needs economic stimulus.

Unfortunately, the response from small business leaders hasn’t been encouraging. The commission hasn’t taken a stand on the measure; on July 12th, the panel deadlocked 2-2, with one member absent and two slots still vacant (the mayor hasn’t filled them). That lets the big downtown players — the Chamber, the Building Owners and Managers Association, the Committee on JOBS, etc. — in a position to claim that the Chiu proposal is anti-business.

We’ve seen this pattern far to often. Small business groups allow big corporations, which have no interest in the real issues that impact local merchants, stick the little folks out front on political issues. We’ve seen it over the years with public power, commercial rent control, downtown development, and taxes — and it needs to stop.

The Small Business Commission, the Council of District Merchants, all the local community merchant groups, and anyone else who really cares about the interests of small business in San Francisco should support the Chiu measure. It’s a tax plan that’s good for small business. And if the advocates don’t realize that, they’re hurting themselves, the customers, and the city.

Small biz should support Chiu tax plan

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A new proposal to make the flat payroll tax more progressive and exempt more small businesses

EDITORIAL It’s rare to see a fairly conservative city agency, created in part to make it harder for progressives to push measures that might affect business, come down in favor of a new business tax. But the San Francisco Office of Economic Analysis has concluded that the proposal by Board of Supervisors President David Chiu to change the local payroll tax and impose a new tax on commercial rents would actually help local businesses, particularly small businesses. The proposal presents a crucial opportunity for progressives to make the case that the Chamber of Commerce and big downtown corporations are not advancing the interests of small businesses — and local merchant groups need to pay attention.

Chiu has taken on a problem that has lingered in San Francisco for decades. The city’s business tax is terribly regressive: Only 10 percent of the companies in town even pay the payroll tax, in part because banks, insurance companies, and financial services firms are exempt under state law. That means the burden falls the heaviest on small and medium-sized companies — the ones that provide most of the net job growth in the city.

The new proposal would make the flat payroll tax more progressive and would exempt more small businesses. It would also raise $28 million more a year for the cash-strapped municipal coffers by taxing commercial rents of more than $60,000 a year.

The commercial rent levy would force the big outfits that now pay no city taxes whatsoever to take on at least some of the burden of financing San Francisco government. Smaller companies with modest leases, and small commercial landlords, wouldn’t pay the new tax at all.

Chiu originally had proposed an even broader tax, which would have raised more than $35 million. But after the Small Business Commission expressed concerns, he changed the measure, reducing the burden on small business even further. And at this point, Ted Egan, the city’s chief economist at the Office of Economic Analysis, reports that the tax would lead to greater job creation in the private sector (because of the reduction in the payroll tax) as well as greater job creation in the public sector (because of the additional revenue to the city).

It’s the kind of idea that ought to have broad-based support — progressives looking to fund crucial services see it as a way to bring in money, and small businesses ought to see it as a way to cut taxes and create jobs in the sector of the city that most needs economic stimulus.

Unfortunately, the response from small business leaders hasn’t been encouraging. The commission hasn’t taken a stand on the measure; on July 12th, the panel deadlocked 2-2, with one member absent and two slots still vacant (the mayor hasn’t filled them). That lets the big downtown players — the Chamber, the Building Owners and Managers Association, the Committee on JOBS, etc. — in a position to claim that the Chiu proposal is anti-business.

We’ve seen this pattern far too often. Small business groups allow big corporations, which have no interest in the real issues that impact local merchants, stick the little folks out front on political issues. We’ve seen it over the years with public power, commercial rent control, downtown development, and taxes — and it needs to stop.

The Small Business Commission, the Council of District Merchants, all the local community merchant groups, and anyone else who really cares about the interests of small business in San Francisco should support the Chiu measure. It’s a tax plan that’s good for small business. And if the advocates don’t realize that, they’re hurting themselves, the customers, and the city.

Bad faith

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steve@sfbg.com

Mayor Gavin Newsom and his business allies are actively trying to sabotage the various revenue measures that have been put forth by the labor movement and progressive members of the Board of Supervisors, employing deceptive rhetoric, sneaky tactics, and a refusal to bargain in good faith.

In fact, Newsom — the Democratic nominee for lieutenant governor — is so averse to supporting anything that could be called a “tax” that he rejected a hard-won compromise measure created by powerful developers, affordable housing advocates, a pro-business think tank, the building trades, and his own directors of housing and economic development.

Just as that story was breaking in the New York Times (produced by Bay Citizen) on July 9, members of the Board of Supervisors Budget and Finance Committee discovered that Newsom’s proposed ballot measure to close loopholes in the city’s hotel tax that favored airline employees and online travel companies — a widely supported change, but one worth just $6 million per year — contains language that would nullify any increases in the hotel tax. Earlier in the week, labor unions turned in signatures on an initiative to increase the hotel tax by 2 percent, which would bring in more than $30 million per year.

“This poison pill is an intentionally deceptive, underhanded move,” Gabriel Haaland, an organizer with Service Employees International Union Local 1021, which sponsored the hotel tax, told us. “It’s so frustrating. It’s not even a good faith fight. He’s trying to create confusion and fool the voters. If our measure passes fair and square, it should be implemented.”

Meanwhile, Newsom and business groups have been attacking a reform measure by Board President David Chiu that would make the currently flat payroll tax more progressive, exempt more small businesses from paying it, and create a commercial rent tax to spread the tax burden more widely than the 10 percent of businesses who now pay tax to the city.

Critics complained that the measure would hurt local businesses — but that’s just not true. The city’s Office of Economic Analysis concluded that Chiu’s original proposal would have no effect on private sector jobs and would generate $34 million annually for the city, preserving some government jobs and spending.

Then Chiu amended the measure to spare even more small businesses. Now the OEA says that the measure would actually create private sector jobs — and still bring $28 million in to the city. Yet Newsom and the business community are still withholding their support.

This trio of Machiavellian moves comes just a week after Newsom pulled out of budget negotiations with board progressives concerning about $40 million in board add-backs to programs that Newsom proposed to cut after they wouldn’t agree to his precondition that they withdraw unrelated measures proposed for the November ballot, such as splitting appointments to the Rent, Recreation and Park, and Municipal Transportation Agency boards and requiring police officers to do foot patrols.

The series of events has led many progressives to say that conservative ideological blinders — a knee-jerk opposition to anything that saves government jobs and services or that Republicans might criticize — is the only logical explanation for the intransigent stance adopted downtown and by Newsom.

“It’s ideological. It’s not economic, and it’s not even political,” said Calvin Welch, the affordable housing activist who helped negotiate the transfer tax compromise with developer Oz Erickson, San Francisco Planning Urban Research Association director Gabriel Metcalf, Mayor’s Office of Housing Director Doug Shoemaker, and others.

That measure would have created a transfer tax on sales of properties over $875,000 and generated approximately $50 million annually for affordable housing (funds that were drastically reduced in Newsom’s proposed 2010-11 budget) while cutting in half the current requirements and fees on market-rate developers to create below-market-rate units. The plan would have stimulated both types of housing and created desperately needed construction work — an approach those involved called an elegant solution to several problems.

“To me, this was a win-win, solving two problems that are each a big deal,” Metcalf told us. “I don’t know what his reasons were for not supporting it. I was surprised.”

But Welch said, “It collapsed straight up because the mayor didn’t want to support a tax.” Although Newsom told the Times it was because there wasn’t broad enough consensus yet, “the mayor’s reason is whole-cloth bullshit,” Welch said, noting the role of the Mayor’s Office in brokering the deal. “The mayor walks away from it because everyone wasn’t in the room? Well, it’s your room, motherfucker. Show some leadership.”

Newsom Press Secretary Tony Winnicker refused to discuss these issues by phone, responding to our written inquires by noting that Newsom opposes taxes and thinks the best way to address budget deficits are privatizing city services and pension reform (although he opposes Public Defender Jeff Adachi’s initiative, the only pension reform measure on the fall ballot).

“The mayor is opposed to the Board of Supervisors’ proposals to increase taxes because they’re not needed to balance the budget and they will strangle our still young economic recovery,” Winnicker wrote, refusing to answer follow-up questions or support a statement about Chiu’s measure that the OEA concludes is not accurate.

Like many political observers of all stripes, those from downtown and progressive circles, Welch criticized Newsom for his lack of engagement with city business and its long-term fiscal outlook, contrasting him with former Mayor Willie Brown, who met regularly with former Board of Supervisors President Tom Ammiano even as the two ran a bitter campaign for mayor against one another in 1999. “They dealt with the city’s business like two adults who cared about the city,” he said.

Welch acknowledged that there was still work to be done building political support for the transfer tax measure. He and other progressives would have had to win over city employee unions who wouldn’t like the budget set-aside aspect, and Erickson and Metcalf would need to placate some of their downtown allies who oppose taxes on ideological grounds. But given how downtown groups are behaving right now, that might not have been an easy sell.

“There are members of the small business community that are averse to any taxes,” said Regina Dick-Endrizzi, director of the city’s Office of Small Business and staffer to the Small Business Commission, which was withholding a recommendation on the Chiu measure but planned to meet again to consider it July 12 (look for an update on the sfbg.com Politics blog). She said the small business community is having tough times and “they are just not sensitive to keeping city workers employed.”

Larger commercial interests are being even more forceful in opposing the revenue measures. While a parade of workers, social service providers, and progressive activists testifying at the July 9 Budget Committee hearing implored supervisors to place all the proposed revenue measures on the ballot, representatives from the Building Owners and Managers Association (BOMA) and San Francisco Chamber of Commerce were the only two speakers urging supervisors to drop the measures and focus instead on creating private sector jobs.

“You’re trying to create a little revenue here and it’s not going to work,” said Ken Cleaveland, director of BOMA SF, arguing that big banks and financial services companies — entities exempt from the payroll tax that Chiu is hoping to target with the commercial rent tax — will buy their buildings to avoid paying the tax. “They aren’t going to create more jobs and they really aren’t going to create more revenue.”

Yet Chiu noted that it was the business community and fiscal conservatives who pushed to create the Office of Economic Analysis, whose work they have regularly used to attack progressive legislation. Now that the office has concluded that a piece of progressive legislation is good for the local economy, Chiu told Cleaveland and the Chamber spokesperson Rob Black at the hearing, “I ask you to respect the work this office has done.”

Black said the Chamber board will consider Chiu’s amended legislation, but said businesses are in no mood to help the city. “How many times have you gone to your neighborhood merchant and had them say, ‘Gee, my rent’s too cheap’?<0x2009>” he said during his testimony.

Yet Chiu said landlords of small tenants (those paying less than $65,000 in rent per year) are exempt from the rent tax and only 26 percent of SF businesses would pay any city business tax under his plan. “I hope the mayor will support this proposal and the business community will give it a good look,” Chiu said as the hearing ended.

At the beginning of the hearing, Chiu framed the dire situation facing San Francisco, citing Controller’s Office figures showing this year’s $500 million budget deficit (out of a $6 billion total budget) will be followed by a $700 million deficit next year and a $800 million gap the following budget cycle as a result of a deep structural budget imbalance.

“We have budget deficits as far as the eye can see,” Chiu said at the hearing. “We have to consider measures that will provide more stable sources of revenue.”

He also noted that city employee unions have agreed to give back about $250 million in salary and had their ranks reduced by about 2,000 workers in the last two years. So he and the other progressive supervisors say it’s time for the rest of San Francisco to help address the problem.

“We, as a city, should not be trying to balance this budget simply through cutting,” Sup. David Campos said.

Sup. John Avalos, the committee chair, amended his transfer tax measure in the wake of Newsom’s rejection of the deal by making it a simple 2 percent tax on properties that sell for more than $5 million, and 2.5 percent tax on properties over $10 million. He estimates it will bring in about $25 million per year from the city’s wealthiest corporations and landlords.

“That’s who we’re socking it to,” Avalos told us, saying he was disappointed the compromise fell through. “The amendment is going to be more progressive than what was originally planned.”

Even Sup. Sean Elsbernd, a strong fiscal conservative who announced early in the hearing, “You want to do that [balance future budgets] by adding taxes, but I want to do it through ongoing service cuts,” later told the Guardian that he was intrigued by the amendments Avalos and Chiu made to their measures and has not yet taken a position on them.

Sup. Ross Mirkarimi is also sponsoring a measure to increase the city’s tax on parking lot operators from 25 percent to 35 percent, the first change to that tax in 30 years, and will include valet parking for the first time. The measure would bring in up to $24 million per year, and OEA analysis shows it would decrease the number of cars trips by 1.3 percent, another benefit.

SFMTA supports the measure, with board member Cameron Beach testifying that the money will be used to subsidize Muni and “it links the use of private automobiles and is consistent with the city’s transit-first policy.” Mirkarimi, who chairs the Transportation Authority, also has proposed a $10 local vehicle license fee surcharge that would bring in another $5 million per year for Muni.

All the revenue measures require six votes by the full Board of Supervisors, which is scheduled to consider them July 20, after which they would need a simple majority approval by voters in November to take effect.

The mayor has the authority to directly place measures on the ballot, so the committee hearing on his hotel tax loophole measure and a $39 million general obligation bond that he’s proposing to create a revolving loan fund for private sector seismic improvements were mere formalities, so supervisors criticized aspects of each but were unable to make changes.

Avalos even grudgingly acknowledged the hotel tax poison pill was an effective way to kill that revenue source, saying at the hearing, “This is very smart. I don’t agree with it, but it’s very smart.”

Haaland was less charitable, criticizing a provision designed to confuse voters. “This kind of move means both measures won’t pass because now we have to oppose [Newsom’s measure],” he said, criticizing the mayor for running away from the hard decisions facing the city. “He won’t be around next year, when we have an even bigger structural budget deficit, to clean up this mess. Absent new revenue sources, this city starts to fall apart.”

Sparks reveals her conservativism in exchange with Walker

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During the District 6 supervisorial candidate debate that San Francisco Young Democrats held last week, a two-question exchange between two of the leading candidates – progressive Debra Walker and downtown-backed Theresa Sparks – offered a revealing look at their starkly different worldviews and priorities, which is more important in this race than people’s machine politics conspiracy theories.

During the second portion of the event, candidates were allowed to ask a question of another candidate, and Walker and Sparks focused on one another with pointed questions (this occurred at around the 30-minute mark, although the video doesn’t seem to allow users to forward to that point, forcing you to endure the often insipid commentary).

Walker went first, asking Sparks why, during her more than four-year tenure on the Police Commission – a body in charge of disciplining police officers accused of serious misconduct after citizen complaints are investigated and found valid by the Office of Citizen Complaints, with each case assigned to a particular commissioner – Sparks didn’t hold any hearings or act to punish any officers.

Sparks said the accusation wasn’t true, and that she did hold one hearing during that time, and then said that the Police Commission is prohibited by the city charter from intervening in the internal workings of the Police Department, implying that the body isn’t actually in charge of disciplining officers. Walker said Sparks was wrong and tried to ask a follow-up question and was cut off by moderator Melissa Griffin.

So this week, I called both candidates to try to get to the bottom of the dispute. “She indicated it’s not the commission’s job to focus on these things, and that’s absolutely not the case,” Walker said. “She was incorrect saying it wasn’t the job of commissioners to do this.”

And when I talked to Sparks, she didn’t dispute that fact, but conveyed how complicated the process was when officers are accused of serious misconduct (minor misconduct just goes to the chief), with lawyers seeking stipulated settlements and whatnot, and repeatedly emphasizing “it’s a bad system.” One reason it’s so bad is her own lack of qualifications: “You can’t have people like me, whose only legal background is watching Law and Order, trying to handle these cases.”

Sparks was appointed by Mayor Gavin Newsom, who is backing her supervisorial bid, which is also expected to have strong support from the San Francisco Police Officers Association. She wouldn’t say how many cases she was assigned during her tenure, but OCC records show more than 300 cases assigned to the commission during her tenure and the long backlog left in her wake has been the subject of criticism by everyone from Police Chief George Gascon to new Police Commission Jim Hammer.

Rather than supporting this civilian oversight of problem officers, Sparks wants to turn those duties over to Gascon’s office, telling us, “We need to give this chief more authority to fire officers rather than going through this ridiculous process.”

At the debate, after seeming stung by a question she jokingly called a “softball,” Sparks fired back by asking Walker whether she supported the proposed tax measures now being considered by the Board of Supervisors to help close the city’s large budget deficit, framing the question by saying they would hurt small business.

Walker answered by voicing her support for small business, but noting how essential city services such as public health programs were being deeply cut and that the city needed new revenue to deal with its structural budget deficit, although she said that she had yet to decide which of the tax measures she supported considering none have been approved for the ballot yet.

This week, Moody’s Investor Services lowered the citys’ credit rating precisely because Newsom’s budgets have not addressed that structural budget deficit, and even the Controller’s Office has ordered more than a $100 million placed on reserve because of doubts about the mayor’s revenue assumptions.

So for Sparks to characterize the need for new revenue as an unfair attack on small business indicates a short-sighted, right-wing approach to municipal finances, an approach Walker rejects, telling us, “I think we need to be responsible and do the right thing in dealing with the city’s needs…It’s going to cost us and the people who come after us more and more because of these cuts.”

When I spoke with Sparks, noting the Moody’s report, she seemed to back away from how she was trying the characterize the revenue measures at the debate. “I do think the city needs new revenue, but I don’t think that taxing small business is the way to go,” she said, referring to a proposal by Sup. David Chiu to tax commercial rents, which would be paid by the landlords.

So I asked Sparks whether she supported any of the proposals or if she was advocating any other revenues measures, and she said, “Quite honestly, I need to think about that because I do think we need more revenue.”

Which is pretty much the same answer Walker gave in a far more honest and direct way in that debate, without trying to pander to the fears of small businesspeople. The bottom line is that the downtown corporations who are backing Sparks have done nothing to help the city during this prolonged recession, while demanding even greater police responses to deal with poor people sitting on sidewalks and other perceived problems, and that hypocrisy should be front and center in this election.

Bucharest calling

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arts@sfbg.com

FILM In the five years since Cristi Puiu’s improbable epic, The Death of Mr. Lazarescu (2005), a small group of philosophically-inclined filmmakers who were still young during the last days of Ceausescu have been disproportionately responsible for the minor masterpieces of world cinema. None of the Romanian films at Cannes (including Puiu’s follow-up, Aurora) nabbed a prize this year. But the three features in the Pacific Film Archive’s “Tales from the Golden Age: Recent Romanian Cinema” series — Lazarescu, 4 Months, 3 Weeks and 2 Days (2007), and Police, Adjective (2009) — were all heavily garlanded. They gain power when seen in series, where their common syntax comes into focus.

All three films unfold as underground odysseys. A character is tested in a series of trials flowing, directly or indirectly, from the state. In Lazarescu, the eponymous figure is sent upon a Styx-like course of hospitals, accompanied first by reproachful neighbors and then a willful medic. By the time the doctors correctly diagnose his original complaint of the stomach and head, his neurological condition has deteriorated to the point that he can no longer form the words himself. In 4 Months, we trace a young woman’s movements through the city as she ensures a safe course for her friend’s illegal abortion (the film is set two years before Ceausescu’s fall). As more and more is asked of her promise, the film’s handheld style comes to seem charged by irreversibility. In Police, Adjective, we watch a quiet young detective trail a dead-end case: he’s been assigned to gather evidence for a uselessly punitive drug bust of a few teenaged hash-smokers. When he finally refuses to order a raid, he gets an unexpected linguistics lesson from his chief (played with appalling charisma by Vlad Ivanov, the abortionist in 4 Months; in both films he seems the very embodiment of the banality of evil) who dismantles the detective’s logic word by word.

With narratives like case histories, peeling back a social situation until its very marrow is exposed, these films take no shortcuts to empathy. Morality is specifically broached, and each centers on protracted, tangled negotiations carried off by wonderful acting. The apparent detachment of the long-take style is deceptive. In fact, the films’ scenarios are rigorously worked out to express moral quandaries with concern for those on the receiving end. The ostensible real time of the long take is easily distended by exigent circumstances; the decision not to cut gives a taste of the agony, powerlessness, and tension that meet the characters. Indeed, the observational camera is an insinuation, drawing us into the complex ethical mechanics at the level of action and plot. They induce the presence of mind required to dislodge a nasty splinter. It’s difficult to imagine an American documentary taking on health care with an unblinking intransigence on par with Lazarescu, and this, more than the formal style, accounts for critics using the language of ethics and truth to describe the film.

By positioning individual characters at the margins of a centralized bureaucracy, the Romanian films certainly do illuminate untruths. Several of the broad shorts in the new omnibus film, Tales from the Golden Age, threaten to turn the gnomic quality of the Romanian films into shtick, but in the context of the PFA series, these “urban legends from the Ceausescu era” put a gentle historical spin on some of the leitmotifs of the earlier features. The best by far is The Legend of the Air Sellers, a tender 4 Months-meets-John Hughes film in which a teenage girl joins up with a scruffy older guy for a decidedly low-tech scam: they take bottles from local residents under the premises of collecting water and air samples for the state and then redeem the glass for change. The con is revealing of a central paradox of the period: that citizens could be frustrated by the state of things while at the same time credulous that the state would fix them. The girl is a natural capitalist, farming out bottle collecting to unwitting landlords; the boy, for his part, only really wants to watch VHS tapes on a prized video player.

Harun Farocki and Andrei Ujica’s found footage essay-film, Videograms of a Revolution (1992), is the outlier of the series both in terms of age and form, but in its methodical analysis of the Romanian Revolution of 1989 as a paradigmatic modern event, the film draws very close to the social relevance of the recent Romanian films — much closer than the nostalgia-tinged episodes of Tales from the Golden Age. Two sequences in Videograms loom large for the Romanian films in the PFA series. In the first, Ujica’s voice-over identifies an initial spark for the revolution in a moment of intercessional static, when an official camera trained upon Ceausescu’s scripted reality pans to observe a disturbance in the crowd, “more out of curiosity than resolve.” Then there are those bundled shots depicting newly victorious revolutionaries dug in at the political headquarters and TV station (an important location for Police, Adjective director Corneliu Poumboiu’s 2006 film, 12:08 East of Bucharest). Attempting to forge their initial reforms, they flail at the deeply ingrained restraints of institutional language.

Toward the end of Videograms, we watch dramatic embedded footage of ragtag revolutionaries and other civilians taking cover from sniper fire coming from one of the oppressive high-rise buildings that play such a prominent part in the Romanian cinematic imagination. Ujica’s voice-over takes analytical measure of the scene: that the belief in an enemy is a binding legacy, a “recollected habit,” and that the unspoken fear so long deployed by Ceausescu’s regime as “internal tactic of deterrence” will not simply vanish. The new Romanian cinema was surely born in the shadows of this phantom fighting.

TALES FROM THE GOLDEN AGE: RECENT ROMANIAN CINEMA

June 11–June 27, $5.50–$9.50

Pacific Film Archive

2757 Bancroft, Berk.

(510) 642-5249

www.bampfa.berkeley.edu

Another bloody budget

6

rebeccab@sfbg.com

In the days since June 1, when Mayor Gavin Newsom unveiled his proposal for San Francisco’s $6.48 billion budget for the next fiscal year, public sector employees and community organizations have been poring over the hefty document to determine how their jobs, services, and programs survived cuts made to close a $483 million shortfall.

For police and firefighters, a key Newsom constituency, the news is good. There were no layoffs to San Francisco firefighters, and while members of the Police Officer’s Association gave up $9.3 million in wage concessions under the lucrative contract Newsom gave them a few years ago, police officers will still receive a 4 percent wage increase on July 1.

For others, the release of the mayor’s budget signified a tough fight looming before the Board of Supervisors, one with high stakes. Cuts to homeless services, mental health care, youth programs, and housing assistance, along with privatization proposals, have raised widespread concern among labor and liberal advocacy organizations. Public input on the budget will continue at the Board of Supervisors Budget and Finance Committee until July 15, when the amended document is considered by the full board.

At a June 1 announcement ceremony, Newsom asserted that the budget was balanced “without draconian cuts,” saying, “We were able to avoid the kind of cataclysmic devastation that some had argued was inevitable in this budget.”

Nearly a week later, Board President David Chiu told the Guardian that sort of cataclysm wouldn’t be staved off for long if the city continues on the course of repeatedly making deep budget cuts without proposing any significant new sources of revenue.

“Now that the smoke has cleared, it is clear that the mayor’s proposed budget is perfect for a mayor who is only going to be around for the short term, but it does not address the long-term fiscal crisis that our city is in,” Chiu said. “Next year, we’re looking at over a $700 million budget deficit. The year after that, we’re looking at almost an $800 million budget deficit. The budget proposal that Newsom put out balances the … deficit on many one-time tricks and assumptions of uncertain revenue.”

Meanwhile, advocates said even the cuts proposed this time would bring serious consequences, especially with unemployment on the rise, state programs being cut in Sacramento, and families feeling the pinch more than ever.

“Poor and working class families, and families of color in San Francisco, are facing kind of an assault on funding and on safety net services on multiple levels,” said Chelsea Boilard, family policy and communications associate for Coleman Advocates for Children and Youth. “I think a lot of it is that families are concerned about their ability to stay in the city and raise their kids here.”

 

“NO NEW TAXES”

During the budget announcement, Newsom emphasized the positive. He found $12 million in new revenue simply by closing a loophole that had allowed Internet-based companies to avoid paying that amount in hotel taxes. He said 350 currently occupied positions would be cut, but noted that it was less than a cap of 425 that public sector unions had agreed to. Cuts were inevitable since the ailing economy inflicted the city’s General Fund with significant losses, particularly from business and property tax revenues.

Nonetheless, Newsom’s budget is already coming under fire from progressive leaders. For one, there are no new revenue-generating measures in the form of general taxes, which could have averted the worst blows to critical safety-net services and might help remedy the city’s economic woes in the long-term.

“There are no new taxes in this budget,” Newsom declared. “I know some folks just prefer tax increases. I don’t.”

Yet Chiu said many of Newsom’s assumptions for revenue were on shaky ground, prompting City Controller Ben Rosenfield — Newsom’s former budget director — to place $142 million on reserve in case the projected revenues don’t pan out.

“These budget deficits continue as far as the eye can see,” Chiu noted. “Even if those amounts come in, something like 90 percent of them are one-time fixes. So even if the mayor is right, it doesn’t solve next year’s problem, or the year after. Which is why many of us at the board believe that we have to consider additional revenue proposals to think about the long-term fiscal health of the city.”

Sup. John Avalos, chair of the Budget and Finance Committee, described Newsom’s budget as “pretty much an all-cuts budget,” noting that he and Chiu planned to introduce revenue-generating measures. They were expected to introduce proposals — including an increase in the hotel tax and a change in the business tax — at the June 8 board meeting.

Because despite Newsom’s rosy assessment, many of his proposed cuts are deep and painful: the Recreation and Park Department would be cut by 42 percent (with its capital projects budget slashed by 90 percent), Economic and Workforce Development by 34 percent, Ethics Commission by 23 percent (basically eliminating public financing for candidates), Department of the Environment by 14 percent, Emergency Management by 10 percent, and the list goes on.

 

CUTS TO SOCIAL SERVICES

Progressives say Newsom’s budget reflects skewed priorities. While relatively little is asked of public safety departments, health and human services programs face major staffing and funding losses. “Poor people are being asked to shoulder the burden,” noted Jennifer Friedenbach, director of the Coalition on Homelessness.

Nearly $31 million would be slashed from the Department of Public Health, and more than $22 million would be cut from the Human Services Agency under Newsom’s proposed budget. While this reflects only 2–3 percent of the departmental budgets, there’s widespread concern that the cuts target programs designed to shield the most vulnerable residents.

Proposals that deal with housing are of special concern. “We have more and more families moving into SRO hotel rooms. We have families in garages. We have a really scary situation for many families,” Friedenbach said.

Affordable housing programs within the Mayor’s Office of Housing would get slashed from $16.8 million currently down to just $1.2 million, a 92 percent cut. Other cuts seem small, but will have big impacts of those affected. Newsom’s budget eliminates 42 housing subsidies, which boost rent payments for families on the brink of homelessness, for a savings of $264,000. Meanwhile, a locally funded program that subsidizes housing costs for people with AIDS would be cut, for a savings of $559,000.

Transitional housing would be affected, too, such as 59 beds at a homeless shelter on Otis Street, which Friedenbach says would be lost under Newsom’s budget proposal. “We’ve already lost more than 400 shelter beds since Newsom came to office, so that’d be a huge hit,” she said. Since the recession began, she added, the wait-list at shelters has tripled. The Ark House, a temporary housing facility that serves LGBT youth, would also be closed.

Overall, homeless services delivered by HSA would take a $12 million hit in Newsom’s budget, or about 13 percent, offset slightly by homeless services being increased by $2 million within the Mayor’s Office budget, a 71 percent increase.

Outpatient mental health services, such as Community Behavioral Health Services, would also be affected (See “Cutting from the bottom”), in violation of current city law. Several years ago, then-Sup. Tom Ammiano introduced legislation establishing a “single standard of care” to guarantee access to mental health services for indigent and uninsured residents.

“If timely, effective, and coordinated mental health treatment is not provided to indigent and uninsured residents who are not seriously mentally ill, those residents are at risk of becoming seriously mentally ill and hence requiring more expensive and comprehensive mental health care from San Francisco,” according to the ordinance, which was passed in June of 2005. Newsom’s budget proposes changing this legislation to enable cuts to those services, which would result in 1,600 people losing treatment, according to Friedenbach.

Unfortunately, advocates for the poor has gotten used to this ritual of trying to restore cuts made by Newsom. “There are some sacred cows that seem to survive year after year, and then we’re left fighting over what we can get,” said Randy Shaw, executive director of the Tenderloin Housing Clinic (THC).

The Central City SRO Collaborative, which supports tenants living in single-room occupancy hotels in the mid-Market Street area and is operated through THC, is slated to be cut by 40 percent along with three other similar programs — a replay from last year when the mayor proposed eliminating funding and the Board of Supervisors restored the cut.

“I think you’d see more fires, more people dying from overdoses. You’d see really bad conditions,” Jeff Buckley, director of the program, told us of the potential consequences of eliminating the inspections and resident training that is part of the program.

Funding was also eliminated for THC’s Ellis Eviction Defense Program, the city’s only free legal defense program with capacity to serve 55 low-income tenants facing eviction under the Ellis Act.

 

THREAT TO RENTERS

One of the most controversial proposals to emerge from Newsom’s budget is a way for property owners and real estate speculators to buy their way out of the city lottery that limits conversion of rental properties and tenants-in-common (TICs) to privately-owned condos if they pay between $4,000 and $20,000 (depending on how long they have waited for conversion), a proposal to raise about $8 million for the city.

“I went back and forth because I know the Board of Supervisors can’t stand this,” Newsom said as he broached the subject at the June 1 announcement. “I still don’t get this argument completely. Except it’s a big-time ideological discussion. It’s so darn ideological that I think it gets in the way of having a real discussion.”

Yet Ted Gullicksen, director of the San Francisco Tenants Union, said the argument is quite clear: making it easier to convert rental units into condos will accelerate the loss of rental housing in a city where two-thirds of residents are tenants, in the process encouraging real estate speculation and evictions.

“It will encourage TIC conversions and evictions because it makes the road to converting TICs to condos that much easier,” Gullicksen said. “It’s going to be a huge gift to real estate speculators.”

Newsom press secretary Tony Winnicker disputes that impact, saying that “these units were going to convert anyway, whether next year or six years. This merely accelerates that conversion without altering the lottery to protect jobs and services.”

But Gullicksen said the proposal obviously undermines the lottery system, which is the only tool tenant advocates have to preserve the finite supply of rent-controlled apartments, noting that even if the condos are later rented out, they will no longer to subject to rent control. That’s one reason why the Board of Supervisors has repeatedly rejected this idea, and why Newsom probably knows they will do so again.

Avalos said he and other progressive supervisors will oppose the proposal, despite the difficulties that will create in balancing the budget. “It’s kind of like putting a gun to our heads,” Avalos said of Newsom’s inclusion of that revenue in his budget.

To offset that revenue loss, Avalos has proposed a tax on alcohol sold in bars and Gullicksen is proposing the city legalize illegal housing units that are in habitable condition for property owners willing to pay an amnesty fee.

Some housing advocates were also struck by the timing of proposing condo conversion fees while also eliminating the Ellis Eviction Defense Program. “We’re really the only ones doing this,” Shaw noted. He said the program is crucial because it serves low-income tenants, many of whom are monolingual Chinese or Spanish speakers who lack the ability to pay for private attorneys to resist aggressive landlords.

 

PRIVATIZATION PROPOSALS RETURN

The Department of Children, Youth. and Families budget would be reduced by 20 percent under Newsom’s budget, with the greatest cuts affecting after school and youth leadership programs. Roughly a $3 million cut will result in the loss of around 300 subsidized slots for after school programs, said Boilard of Coleman Youth Advocates. Another $3 million is expected to come out of violence-prevention programs for troubled youth; an additional $1 million would affect youth jobs programs.

Patricia Davis, a Child Protective Services employee who lives in the Mission District with her two teenage sons, said she was concerned about the implications for losses to youth programs, particularly during the summer. “You can imagine what’s going to happen this summer,” she said. “I feel that a lot of kids are going to do a lot of things that they have no business doing.”

Davis, who says she’ll have to look for a new job come Sept. 30 because the federal stimulus package funding that supports her position will run out, said she was not happy to hear that police officers would be getting raises just as that summer school programs are being threatened with closure. “Couldn’t the 4 percent [raise] go somewhere else — like to the children?” she wondered.

Meanwhile, privatization proposals are causing anxiety for SEIU Local 1021 members, who recently gave millions in wage concessions and furloughs along with other public employees to help balance the budget. A proposal to contract out for jail health services cropped up last year and was shot down by the board, but it’s back again.

“When you make it a for-profit enterprise, the bottom line is the profit. It’s not about the health care,” SEIU Local 1021 organizer Gabriel Haaland told us. “It isn’t the same quality of care.”

Haaland said he believes the mayor’s assumption that the proposal could save $13 million should be closely examined. Other privatization schemes would contract out for security at city museums and hospitals.

Institutional police in the mental health ward at SF General Hospital and other sensitive facilities are well trained and experienced with difficult situations so, Haaland said, “the workers feel a lot safer” than they would with private contractors.

Regarding Newsom’s privatization proposal, Avalos said the board was “opposed last year and the year before, and we’ll oppose [them] this year.”

In the coming weeks, Avalos and other members of the Budget and Finance Committee will carefully go over Newsom’s proposed budget — which is now being sized up by Budget Analyst Harvey Rose’s office — and solicit input from the public. Chances are, they’ll get an earful.

“People are scared. They are scared to death right now,” Boilard said. “As it is, people’s hours are being reduced. And it’s getting harder and harder to find a job because so many people are out of work that the level of competition has gotten really fierce. This is the time that we need to invest in safety net services for young people and families more than ever — and all those services and programs and relationships that people depend on are disappearing.”

Steven T. Jones and Kaitlyn Paris contributed to this report.

Triumph of tenacity

rebeccab@sfbg.com

Nearly four years after City Attorney Dennis Herrera filed suit against Frank and Walter Lembi and their dizzying array of companies affiliated with CitiApartments for “an outrageous pattern of corporate lawlessness,” the powerful and notorious San Francisco landlords have watched their empire crumble.

The Lembi empire consisted of more 300 apartment buildings in San Francisco at its peak. Four Lembi subsidiaries that owned 16 buildings filed for Chapter 11 bankruptcy in February. Twenty Lembi properties were taken over by Lennar spin-off LNR in late May; another 24 buildings are slated to be foreclosed in early June; 51 were deeded back to UBS bank in lieu of foreclosure early last year; and still others are now held by court-appointed receivers and managed by Laramar, an unaffiliated property-management company.

CitiApartments still owns and manages a large portion of the buildings it controlled in its heyday, but it’s had to either restructure loans or get payment extensions to hold onto many of them, according to general counsel Ed Singer. The Lembi Group staff has dwindled, and a team of 18 dedicated solely to relocating tenants is now long gone.

For many renters in foreclosed units who managed to ride out what San Francisco Tenants Union director Ted Guillicksen has labeled CitiApartments’ “war of terror” against its occupants, the dust has finally settled. Gullicksen says that living in limbo is better than living under Lembi.

There are no more harassing phone calls pressuring them to move. No more sudden utility shutoffs. No armed agents showing up at the doorstep unannounced. No illegal construction projects clamoring away on the other side of paper-thin walls, destroying any hope of tranquility at home.

These are tactics CitiApartments used to drive people out, according Herrera’s 2006 complaint and an award-winning Guardian series (“The Scumlords,” March 25), in order to vacate units so they could be renovated and removed from rent control protections. A San Francisco Rent Board roster of 174 current and former Lembi properties as of May 25 lists no fewer than 1,890 cases associated with those buildings, the majority of them now settled.

While the sordid history of CitiApartments’ strong-arm tactics has been well-documented, tenant-rights advocates say the untold story of the Lembis’ rise and demise is that its entire business model hinged on evicting and relocating existing tenants — but that strategy failed, in large part because of a grassroots organizing effort that emboldened renters to stand their ground.

“The economic downturn played a role in it because the money stopped flowing,” says Gullicksen, who helped form the CitiStop Campaign in 2004 in response to reports of outrageous tactics. “But if the money kept flowing, I think they would have failed anyway. The end result was inevitable, given the tenant resistance.”

Darin Dawson moved into his apartment at 2 Guerrero St. in 1994 on a lease secured through the federal Housing Opportunities for People With AIDS program. Dawson, who was diagnosed in 1987, said things turned sour in 1998 when Trophy Properties I DE LLC — one of the Lembis’ dozens of subsidiaries — snapped it up.

Their first contact was to inform him that he would have to move “because we don’t allow those kinds of leases in our buildings,” he recalled. He fought it with the help of the Housing Authority and managed to stay put. It was the first in a series of standoffs that ultimately stopped last September when the property was repossessed.

“Basically, I just dug my heels in and knew that I couldn’t get evicted,” Dawson said. Nonetheless, he spent years embroiled in conflict with the Lembi subsidiary while also battling AIDS-related illnesses.

There was the time he was ordered to vacate his apartment for two weeks during a seismic retrofit only to find it trashed when he returned. “The floors were ripped up,” he said. “The ceiling was hanging in some places. There was black grease smeared all over the walls.” He repaired it himself. Then came the constant phone calls, which started off artificially cheerful but turned threatening if he refused to accept money to relocate.

Dawson pays a base amount of $635 per month for his rent-controlled studio, so he suspected he might be a target. Once a residential manager discreetly warned him that his name was on a “hit list” of tenants whom the owners wanted gone, he said.

According to a confidential document leaked to advocates by an anonymous source, tenants who paid the least came under the greatest pressure to relocate since San Francisco rent-control laws prohibit raising existing occupants’ rents to market rate. The document outlines how loan repayment and estimated profits were calculated wholly on the expectation that existing tenants would vacate, rather than relying on normal projections like natural turnover.

“Tenants with significantly below market rents are chosen for thorough screening to see if they might be relocated,” according to the document, a 2008 Credit Suisse prospectus concerning a pool of 24 buildings under Lembi ownership that have since been foreclosed. “Those tenants most below market and/or with the longest history are the priority for relocation.”

All 24 buildings in question — including properties on Larkin, Market, Cesar Chavez, Post, and Leavenworth streets, in addition to others — were subject to rent control. “At acquisition [Aug. 30, 2007], the portfolio was approximately 5 percent vacant,” it notes. “As of May 2008 the portfolio was 19 percent vacant, as a result of Lembi successfully executing their business plan of vacating units and rolling them to market.”

Although the paperwork spelling this out in stark terms didn’t surface until recently, advocates who worked on the CitiStop campaign essentially figured it out years ago. A collaboration between the Tenants Union, Pride at Work, and other advocacy groups, the campaign sent organizers door-to-door to inform tenants of their rights, hosted potlucks where people could swap horror stories and forge alliances, and staged demonstrations outside CitiApartments’ Market Street offices.

They tracked public records from the Assessor-Recorder Office and swooped in to warn tenants whose buildings had fallen into the Lembis’ clutches. It didn’t always work. According to the Credit Suisse document, Lembi had relocated 2,500 units as of August 2008, a fact pointed to as evidence of its “successful track record.” But the relocation team only drove out a small number of the lowest-paying tenants; the vast majority of those who took buyout offers left units that paid closer to market rate.

“They really needed to get more turnover than what they accomplished,” Gullicksen said. “The fact that they couldn’t is attributable to the CitiStop campaign.”

Singer rejected this assessment, saying the real problem was the economic downturn and the loss of capital availability. “I can see why they want to say that, why they want to take credit for bringing down the Lembis,” he said. “But I don’t think it would have made any difference if [tenants] left or not.”

A common complaint nowadays is that former tenants haven’t gotten their security deposits back, a matter that has spurred a class-action lawsuit against 57 corporate defendants associated with the Lembi Group.

“They’re claiming that they have no money,” Brian Devine, an attorney with Seeger Salvas LLP, told the Guardian. Devine estimates that he will end up representing several thousand tenants who are entitled to their deposits. In March, a judge awarded sanctions of $30,000 to Devine’s firm because the Lembi Group refused to cooperate with discovery, withholding documents necessary for the case to proceed.

Herrera has encountered a similar recalcitrance in his own suit and won court sanctions of $50,000 in February for the same reason. “We have been engaged in discovery for a long, long time,” noted city attorney spokesperson Matt Dorsey. “We’re hoping that the judge is at the edge of his patience.”

Singer said the problem was that there wasn’t enough “people power” to photocopy thousands of documents. The Lembis were never up to any nefarious purpose, Singer insisted — they only wanted to make the buildings nicer. As for the tenants who endured the most brutal relocation tactics? “I can understand why they didn’t want to leave,” he said. “Some of them didn’t leave — and they’re still there.”

Affordable housing group’s shady, “shameless” endorsements

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Editors note: This article orginally ran in October, 2000.T


he Brown machine’s soft money operation is churning out some very
duplicitous propaganda. While we haven’t seen many mailers attacking
independent candidates yet (they’re usually deployed in the final days
of the campaign, when the targets don’t have a chance to respond), we’ve
come across flyers that aim to portray business-friendly machine
candidates as champions of progressive causes.



Perhaps the most egregious comes from an organization called the
Affordable Housing Alliance.



Once a legitimate tenant advocacy group, the AHA does little these days
except endorse candidates and send out mailers during election season.
Numerous well-known tenant activists say the AHA reflexively promotes
the candidates of the Willie Brown machine — no matter where they
stand on tenant issues.



And from what we’ve learned about the group’s endorsement process, AHA
director Mitchell Omerberg isn’t even trying to give the group the
appearance of legitimacy.



Omerberg, who works as a deputy city attorney for San Francisco, was
active in the 1979 fight for rent control. We called him several times
and left messages at the AHA, at his home, and at his city office. He
never called us back or faxed us a copy of the group’s endorsements.
The shenanigans began when Omerberg invited candidates to speak at the
AHA’s endorsement meeting. Chris Daly, the District Six hopeful who has
inspired more enthusiasm from tenant activists than any other candidate
in the city, wasn’t even invited. Daly told us his campaign called
Omerberg to ask when the meeting was scheduled, and Omerberg never
called back.


At the Sept. 28 meeting, the candidates whom Omerberg did invite made
their speeches. Then the group’s supposed members voted on the club’s
endorsements. But it’s not clear who most of those members are or where
they came from.


Progressive activist Richard Ow, who probably attends more political
meetings than anyone in San Francisco, told us he didn’t recognize a
single other tenant activist among the voting members. Ow sits on the
boards of the San Francisco Tenants Union, the Housing Rights Committee,
and the Senior Action Network and is active in dozens of other tenant
groups.


The most egregious maneuver came at the end of the meeting. According
to District One supervisorial candidate Jake McGoldrick (one of the few
people who stayed until the end) Omerberg refused to open the ballot box
and tally up the votes there and then.



Instead, he insisted on taking the ballot box home with him.
Apparently Omerberg prefers to count the ballots alone: one former AHA
member, who asked to remain anonymous, told us he did the same thing
after at least two endorsement meetings in years past.


Alex Wong, chair of the Democratic County Central Committee, helped
Omerberg run the meeting, introducing the candidates and watching the
clock as they spoke. Wong, a Brown ally, told us he didn’t know if Omerberg had taken the ballots home with him; he says he, too, had left the meeting by that point. Then he got off the phone, saying he’d call
us back. He never did.



With Omerberg and Wong keeping mum, we couldn’t track down a copy of
the group’s endorsement list. (McGoldrick campaign manager Jerry Threet
says he asked Omerberg for a copy and Omerberg flat out refused.) But an
AHA mailer sent to tenant voters in the Richmond provides a clue.
“Renters have two choices in the November election,” the flyer
proclaims. “Michael Yaki will preserve rent control. Rose Tsai wants to
repeal it.”


Of course, Richmond renters have more than two choices. There are five
candidates on the District One ballot, including McGoldrick. McGoldrick
has been active on tenant issues for decades, including a term as a San
Francisco Rent Board commissioner from 1988 to 1992 and another as
cochair of the now defunct Housing and Tenants Council, an umbrella
coalition for the movement.


“Jake has a long history of being pro-tenant, from his days on the Rent
Board to doing grassroots work on every tenant campaign and every piece
of tenant legislation,” said Ted Gullicksen of the Tenants Union. The
city’s preeminent renters’ advocacy group, the Tenants Union gave
McGoldrick its enthusiastic endorsement. If you believe the AHA’s
mailer, he’s not even in the race.


On the other hand, Gullicksen said, “Yaki initiated legislation to stop
owner move-in evictions — but then, under pressure from landlords,
killed it himself. Since then he has consistently been against tenants
and with the real estate industry.”


That’s the candidate of the Affordable Housing Alliance. Yaki has a
strong claim on AHA support: he is backed by Willie Brown, of whom he
has been a stalwart ally, and Omerberg worked on Yaki’s 1998 campaign
for the board.


“As a tenant who went through an owner-move-in eviction, I strongly
believe in protecting our rent-control laws and stringently enforcing
protections for seniors and the disabled,” Yaki told us through his
consultant Ellie Schafer. “I am proud to have supported all the measures
which passed the Board of Supervisors expanding OMI and Ellis Act
protections.” (Note Yaki’s careful phrasing: he supported the measures
that passed, and opposed the measures that failed. The same can be said
for most of Willie Brown’s other appointees; that’s why those measures
passed and the others failed.)


The AHA also endorsed Meagan Levitan in District Three, according to a
Levitan mailer. Her opponent Aaron Peskin, who spoke at the endorsement
meeting, has the support of the Tenants Union and just about every other
legitimate tenant activist. Yaki and Levitan are both endorsed by the
Small Property Owners Association and the San Francisco Apartment
Association, which lobby for landlords.


The AHA’s endorsements of Yaki and Levitan were no surprise to longtime
members of the tenant movement. “Historically, the Affordable Housing
Alliance hasn’t endorsed credible pro-tenant supervisors,” Robert
Haaland of the Housing Rights Committee told us. “It’s a group that’s
used to perpetuate machine candidates. It’s another shameless example of
how the machine stays in power.”

Realtors send deceptive mailer to SF renters

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The San Francisco Association of Realtors, which has a long history of actively opposing the protection of tenants and rental housing, now wants tenants to believe it is on their side. The Realtors even recently formed and funded the Committee to Preserve Rental Housing to alert tenants about a ballot measure that they say favors dreaded rich people.

The only problem: It’s complete bullshit.

“Wealthy tenants will benefit most if Proposition F passes,” warns a mailer that landed this week in the mailboxes of San Francisco apartment dwellers, referring a local ballot measure that would allow renters to delay rent increases if they lose their job or their salaries dip by 20 percent or more.

But the mailer warns that the measure would somehow favor rich renters, citing this example: “Take a tenant whose annual income has dropped, for any reason, from $250,000 to $200,000. Under Proposition F, that tenant would be able to apply for financial hardship status and, at the discretion of a public official, qualify for financial relief.”

Yet the measure doesn’t really allow that scenario. Ted Gullicksen, director of the San Francisco Tenants Union, which helped draft the measure, points out that it only applies to renters who pay 33 percent or more of their incomes in rent, which in the Realtors’ example, would be a $5,500 per month home.

“Which, even in San Francisco, is pretty high,” he said. Plus, the Rent Board (that “public official” the mailer darkly warns of) could still tell that poor rich guy, sorry, you’re denied, perhaps it’s time to find a slightly cheaper place to live. But Gullicksen said he’s not surprised at such a deceptive attack from the Realtors (which formed the group on April 30 using campaign attorney Jim Sutton, downtown’s usual dirty trickster, according to an Ethics Commission filing).

“The Realtors over the years have increasingly taken the lead in fighting rent control measures, so they are now even more active than groups like San Francisco Apartment Association,” Gullicksen said, noting the Realtors have also pushed hard on ending condo conversion limits and other efforts to protect rental housing. “The individual Realtors are also landlords and speculators to a great degree.”

I called the Association of Realtors for comment and am waiting for a return call, but I’ll add their response as a comment if and when I hear back.

Gullicksen was confident renters would see through the mailer, particularly because it was required by law to include the line “major funding by San Francisco Association of Realtors.” He’s more worried about voter turnout, which could be low for the June 8 election. And even though two-thirds of San Franciscans are renters, they aren’t the most reliable voters and could constitute as low as 40 percent of voters in this election.

So if you rent, don’t be fooled and don’t forget to vote.

Ammiano property tax bill passes key committee

12

A bill by Assemblymember Tom Ammiano that would have a huge impact on the state’s budget and close a serious loophole in Prop. 13 cleared the Revenue and Taxation Committee today. AB 2492 won approval on a strict party-line 6-3 vote, with every Democrat in favor and every Republican opposed.


The measure is brilliant: It doesn’t undo Prop. 13 (which a lot of us would love to see, but is politically almost impossible). Instead, it simply defines property transfer in a way that forces commercial property owners to play by the same rules as everyone else.


It would bring in billions for the state — and has a great political twist. Homeowners, for better or for worse, are a powerful voting bloc — and although there hasn’t been much talk about it, over the years, residential property has had to shoulder more and more of the total tax burden. So if Ammiano can keep this debate alive, those more conservative homeowners who would never accept a change in Prop. 13 that might undermine their precious tax break might slowly come to realize that the law, as it’s written, is screwing them. (It’s particularly screwing people who brought property at the height of the boom, and are paying taxes far higher than their neighbors who bought a few years earlier.)


Ammiano told me he was encourged by the vote. The bill now goes to Appropriations, which shouldn’t be a problem since it won’t cost the state anything. And in a few weeks, it will be on the Assembly floor.


I don’t expect this governor to sign it, but if he vetos, it could be a great campaign issue — the Republicans are on the side of big landlords — and against homeowners.


By the way, our old pal Matt Smith at SF Weekly decided to take a swipe at me and the Guardian for our support for AB 2492, arguing that somehow it would benefit those of us who own homes. It’s a refrain I’ve heard from Smith before, and in the caption on his blog picture he talks about “getting in the game early and pulling up the ladder behind you.” I guess that’s about my opposition to more condos for millionaires, which has nothing to do with anything and no basis in reality. Building market-rate housing isn’t going to do anything to help middle-class people (and I assume Matt Smith falls in that category) buy homes in San Francisco.


The point of his blog is that we’re somehow pushing to protect our privileged position under Prop. 13. But anyone who knows me (and reads the Guardian) knows that’s nuts: I have long advocated the complete repeal of Prop. 13, and I’m one of the few people in town who wants higher taxes on myself. Besides, the Guardian’s owners, Bruce Brugmann and Jean Dibble, also own the commerical office building where we do business. So anything that could raise taxes on commerical landlords would directly affect the paper –and we still support it.


I called Smith today to give him a hard time about his item; you can accuse me of a lot of things, and attack my political positions (that’s easy; there are a lot of them, and some are pretty far out there). But don’t say I want to preserve my own (relatively) low property taxes, because that’s demonstrably wrong.


I’ll give Smith credit — he listened to me and reported my comments. But we could have avoided all of this if he’d just called me first.

Our 2010 Small Business Awards

culture@sfbg.com

The mallification of America continues apace, with faceless conglomerates training new generations of shoppers to look for the cheapest deals at bland big box outlets, regardless of what “cheap” might actually mean in terms of pollution, transportation, labor, and the local economy. (For starters, out of every $100 dollars spent at a big box, only $43 remains in the local economy, compared to $68 if you buy local.) But in San Francisco at least, the little guys keep on swinging, maintaining unique shops and service companies with a vibrant local feel and contributing to the patchwork of optimism, individuality, and community effort that make the city great. Each year, we honor several of them for sticking to their guns and pursuing their visions.

 

WOMEN IN BUSINESS AWARD

DEENA DAVENPORT, GLAMA-RAMA SALON

“The higher the hair, the closer to God,” a wise Southern drag queen once said. Here in San Francisco, one of our own heavenly salons, Glama-Rama, is about to get a whole lot more divine, expanding from its homey kitsch digs in SoMa to a new 2500 square foot space on Valencia Corridor, creating 16 new jobs. The driving force behind that expansion is owner Deena Davenport, who combined her hairdressing talent, natural business acumen, and deep connection to the local arts scene into a formula for sheer success when she opened Glama-Rama 11 years ago.

“My dream was not to have a business, but a community space,” Davenport told me. “I wanted a place for all my gifted friends to express themselves. Not just our excellent stylists, but artists, designers, musicians, event producers — we all came together to make this happen. I think that’s the key to our success. We work with all kinds of styles and we don’t price ourselves out of the nonprofit sector. That allows a great mix of clientele, and an element of comfort for everyone.”

Davenport, a creative blur, plans to kickstart a Valencia Corridor merchants association once she gets settled in, and dreams of a future in politics. (She currently hosts a show on Pirate Cat Radio and appears onstage in local productions.) “I’m fortunate to have always had great friends and great landlords — and to be in a business the Internet can’t compete with,” she says.

“By the way, the new space will be two shades of cream with gold accents,” Davenport adds, ever the stylish professional. “We’re taking off our Doc Martens and putting on some heels.” (Marke B.)

GLAMA-RAMA

304 Valencia, SF

415-861-4526

www.glamarama.com

 

GOLDEN SURVIVOR AWARD

CAFÉ DU NORD

It’s no secret that nightlife in San Francisco has taken a big hit lately. A combination of economic woes and persistent crackdowns by the Department of Alcoholic Beverage Control and local police, a.k.a. the War on Fun, has taken its toll — even on 100-year-old live-venue mainstays like Café Du Nord.

“It’s been tough for us and for everyone out there,” says Guy Carson, who took over the space with Kerry LaBelle in 2003. “They don’t call it ‘hard times’ for nothing. But we love what we do, and we know how to run a quality business. I’ve been promoting live shows since I was nine years old, so you know it’s what I love. You have to be willing to weather the storms.”

The intimate basement space retains its speakeasy vibe and velvet-curtained, cabaret-like setting, while playing host to mighty big names and burgeoning local upstarts. As a “venue with a menu” that serves food and puts on all ages and 18+ shows, Café Du Nord has been specifically targeted by the city and ABC for what Carson calls “differing interpretations of the law.” He looks forward to the upcoming launch of the new California Music and Culture Association, which will bring together several local venues and nightlife activists to fight the tide of local nightlife repression. “When we all work together, we can return the city’s nightlife to its former glory,” Carson says. (Marke B.)

CAFÉ DU NORD

3174 Market, SF

(415) 861-5016

www.cafedunord.com

 

GOOD NEIGHBOR AWARD

OPPORTUNITY FUND

Eric Weaver put his first nonprofit loan package together in 1995. His small startup, called Opportunity Fund, helped brothers who wanted to expand their pet shop borrow $17,000 for aquariums and fish. The deal worked out well; the pet store prospered, the money got repaid, and Opportunity Fund was on its way to becoming one of the most successful microlending outfits in California.

Weaver, a Stanford MBA and the fund’s CEO, now oversees a staff of 35 that makes loans to small businesses, most of them minority owned, that might have trouble getting financing from a traditional bank. And the nonprofit continues to grow by helping entrepreneurs in the Bay Area get the financing they need to create jobs and build community businesses. “We just made our 1,000th loan,” he told me. “We’re on target to make 200 loans this year, more than ever.”

Unlike most banks, Opportunity Fund sees its clients almost as partners. The staff takes time to help borrowers work up a successful business plan and learn how to manage their finances. “We do one-on-one business counseling with almost all of our clients,” Weaver said.

The group also helps finance affordable housing developments and offers individual development accounts (IDAs)— special savings accounts that come with financial training and grants — for everything from education to home purchases to putting aside the cash it now takes to become a U.S. citizen.

A recent study showed that Opportunity Fund has created or retained 1,200 in the Bay Area. “With a median loan size of $7,000, and a focus on making loans to people who have historically been underserved by banks, Opportunity Fund has been a particularly valuable resource for women, minority, and low-income entrepreneurs,” Weaver noted. He added that 73 percent of Opportunity Fund borrowers are members of an ethnic minority, and 90 percent of borrowers have incomes at or below 80 percent of area median income.

Imagine a traditional bank making a statement like that. (Tim Redmond)

OPPORTUNITY FUND

785 Market Street, Suite 1700, SF

408-297-0204

opportuityfund.org

 

CHAIN ALTERNATIVE AWARD

NORTHERN CALIFORNIA INDEPENDENT BOOKSELLERS ASSOCIATION

Independent booksellers are a wonder. Up against giant chains like Wal-Mart, facing technological changes like Kindle and online behemoths like Amazon.com (which doesn’t even have to pay state sales taxes), it’s hard to believe they can even survive. Yet they do — in fact, the Northern California Independent Booksellers Association keeps growing.

“The mainstream press wants to write about bookstores closing,” Calvin Crosby, NCIBA’s vice president, told me. “But actually, stores are opening. We have two new members this year.”

The booksellers group keeps the small, community-based stores in the public eye, with promotions, events like the annual NCIBA awards (see page 28) and political lobbying (NCIBA is a big supporter of a bill by Assembly Member Nancy Skinner, D-Berkeley, that would force Amazon to pay sales tax).

One of the group’s biggest tasks is education — reminding the public that local bookstores serve a critical function. “I was at a book-signing recently with a major author, and a bunch of people showed up with books they bought on Amazon and they wanted to trade them for signed copies,” Crosby, who is community relations director at Books Inc., recalled. “I had to explain to all of them that Amazon doesn’t pay taxes and hurts the locals.”

And with 300 bookseller members, NCIBA is helping preserve the notion that buying a book from someone who actually cares about books is an idea whose time will never pass. (Redmond)

NCIBA

1007 General Kennedy, SF.

415-561-7686

www.nciba.com

 

SMALL BUSINESS ADVOCATE AWARD

KEITH GOLDSTEIN

“Money spent in a small business — far, far more of it stays here in the neighborhood than with a chain store,” says Keith Goldstein, president of the Potrero Hill Association of Merchants and Businesses. A Potrero Hill resident since 1974, and owner of Everest Waterproofing and Restoration, Inc., Goldstein has spent the last six years with the merchant’s association promoting a sense of community in the inclined blocks of Potrero.

He’s overseen the growth of the Potrero Hill Festival from what he calls “a small affair” to a yearly event that’s “great for residents and businesses,” and also serves on the Eastern Neighborhood Advisory Committee, where he works on issues, like new transit plans, that affect local businesses.

Somehow he has found the time to start SEEDS (www.nepalseeds.org), a group that provides infrastructure and health support to underserved Tibetan villages, and is involved in Food Runners (www.foodrunners.org), an organization that links homeless shelters to food sources.

The superlative community member incorporates the ‘buy local’ mentality into every aspect of his life, even placing the administration of the health care plan for his 50 employees into the hands of a fellow Potrero Hill Merchant’s Association member. “It’s all richly rewarding,” Goldstein says of his hands-on role in his neighborhood’s economic viability. “I like to walk around the hill and be able to chat with my neighbors about quality of life issues.” (Caitlin Donohue)

KEITH GOLDSTEIN

Potrero Hill Association of Merchants and Businesses

1459 18th St., SF.

(415) 341-8949

www.potrerohill.biz

 

EMPLOYEE-OWNED BUSINESS AWARD

RED VIC MOVIE HOUSE

“Once it got going, it was like a perpetual-motion machine. And I have to say, I think it was the collective nature of the thing that’s kept the Red Vic going this long,” says Jack Rix, long time worker and cofounder of the Red Vic Movie House, which celebrates its 30th anniversary this year.

The Red Vic’s employees put a lot into the neighborhood theater’s showings of unique and classic flicks. Each worker-owner does a little of everything, from sweeping the lobby floor to washing dishes. “We’re all utility players here, this is very much a labor of love,” Rix says. Launched in 1980 by community organizers, the theater’s focus has not only been on providing great movies but doing it sustainably, installing solar paneling on the roof and eschewing paper products. “Back then I don’t think the phrase ‘green’ existed,” Rix recalls. “We were trying to be ‘green’ and we didn’t even know it!”

The Red Vic’s workers aren’t the only ones with a certain affection for the theater’s bench seating, environmentally friendly ceramic coffee mugs, and wooden popcorn bowls. Rix says some Upper Haight residents will wait for blockbusters to make their way out of “corporate” movie cinemas to the Red Vic’s second-run screen. “We’re very much a community theater,” he says proudly. (Donohue)

RED VIC MOVIE HOUSE

1727 Haight, SF

(415) 668-3994

www.redvicmoviehouse.com

 

CHAIN ALTERNATIVE AWARD

OTHER AVENUES

Nestled in a part of the city best known for its tiny pastel homes and bracing sea breezes, Ocean Beach’s Other Avenues is everything you could desire in a neighborhood grocery store: Warm atmosphere, vast swaths of bulk food bins, and a well-edited health food selection, including vitamins, medicines, and cheery shelves of produce. Plus health insurance for all its knowledgeable employees.

Trader who? No need for big box stores near Other Avenues, which has earned a loyal clientele in the 36 years since it first opened its doors. “Since we’re a co-op, I like to think of us as a giant organism,” says Other Avenues worker Ryan Bieber. “Occasionally we lose parts and regrow them. A lot of customers have been coming here for 10, 20 years.” Their loyalty might be in response to Other Avenues’ commitment to keeping its beachside clientele healthy and well. “The aim is to make sure that people have access to things like this,” says Bieber.

Asked what he thinks would happen if one of the chain grocery behemoths encroaches on the shop’s territory, Bieber is unconcerned. “I think people will come here regardless. [We] have been doing this forever and we take pretty good care of ourselves. I think our customers really respond to that. We wouldn’t want a world where there was only Whole Foods — that’d be too boring!” (Donohue)

OTHER AVENUES

3930 Judah, SF

(415) 661-7475

www.otheravenues.coop

 


ARTHUR JACKSON DIVERSITY IN SMALL BUSINESS AWARD

RAYMOND OW-YANG

Raymond Ow-Yang tends to downplay the impact he’s had on the North Beach-Chinatown artistic landscape. The owner of New Sun Hong Kong restaurant, Ow-Yang put up the funds to have the iconic Jazz Mural painted on the Columbus and Broadway walls of his Chinese restaurant. The artist Bill Weber approached him in 1988 — securing an approximately $70,000 aesthetic gift to the community that Ow-Yang has never sought public recognition for.

“Back then you’re young, you have no brain. I thought, this is nice — it’s something you do because you feel like it,” Ow-Yang recalls dismissively.

“Nice”is an understatement. The mural, which depicts famous San Francisco figures and scenes, has become one of the neighborhood’s visual joys, stopping tourists in their photo-snapping tracks. The gift reflects Ow-Yang’s commitment to the streets he grew up on

He immigrated to Chinatown from Canton in 1962, at age 13. A lifelong entrepreneur, Ow-Yang owned a photo studio, a floral shop, and a restaurant in Oakland’s Chinatown (the original Sun Hong Kong) before opening at 606 Broadway in 1989. The restaurant is open until 3 a.m. every day — a timetable residents can appreciate for more reasons than just Ow-Yang’s post-bar won ton soup. “Before, people were afraid to walk through this area,” says the businessman. “Now there’s a lot more foot traffic — the city even put up traffic lights. With the bright lights [from New Sun Hong Kong], it’s a lot safer in this area.” (Donohue)

RAYMOND OW-YANG

New Sun Hong Kong

606 Broadway, SF

(415) 956-3338