Lennar

Selling the park

-
0

sarah@sfbg.com

GREEN CITY Considering that it exists just a short hop from the industrial grind of Third Street, Candlestick Point State Recreation Area is a surprisingly wild and peaceful 150-acre bayshore park.

On a recent afternoon, a man practiced his golf swings, a group fished off a pier, and a lizard darted across a trail and into a clump of wildflowers, all apparently unaware of the storm gathering around the future of this waterfront habitat.

State Sen. Mark Leno’s Senate Bill 792 would give the State Lands Commission and State Parks Department the authority to negotiate an exchange of 42 acres in the park for patches of land on the former Hunters Point Naval Shipyard, allowing Lennar Corp. to build condos in the state park and reducing Bayview’s only major open space by 25 percent.

Leno claims that SB 792 "will help realize one of the few remaining opportunities for large-scale affordable housing, parks, open space, and economic development in San Francisco by authorizing a key public-private land exchange necessary for the development of Hunters Point/Candlestick Park."

"A lot of this property is dirt, and much of it is used by the 49ers for parking. It’s not high quality park land," Leno told the Guardian.

In addition to adding some amendments suggested by the Sierra Club, Leno said state and federal agencies must approve the deal, which would also require a full environmental impact report. "There will be no environmental shortcutting," Leno said.

But environmental advocates are outraged that Mayor Gavin Newsom and his chief economic advisor, Michael Cohen, are trying to get state legislators to facilitate an unpopular land swap that allows an out-of-state developer to build thousands of condos on state tidelands in exchange for strips and pockets of the toxic shipyard (see "Eliminating dissent," 6/17).

"When Michael Cohen asked us to endorse what they were calling a conceptual framework, he called it a rush to the starting line and promised us a full and robust discussion of the actual proposal," Kristine Enea, who works for the India Basin Neighborhood Association, said of last year’s Proposition G. "We’re not trying to stop the development, but we want a discussion. And we’re raising questions that otherwise won’t be raised until after the environmental impact report is completed."

In April, Newsom wrote to Sen. Fran Pavley, who chairs the state’s Senate Committee on Natural Resources and Water, claiming that plans for the shipyard and Candlestick Point had already been endorsed by the San Francisco Board of Supervisors and overwhelmingly approved by voters in June 2008.

"By utilizing a true public-private partnership, this [SB 792] will cause tens of millions of dollars of public open space investment to state park lands and public trust lands, at no cost to the state or the city’s general fund, providing a significant benefit to the state as well as to the citizens of San Francisco," Newsom wrote.

As part of the land swap, Lennar would pay fair market value for much of the parkland, with estimates of about $40 million that would go to the state for managing the remaining acreage. Lennar proposes to build 7,850 housing units on Candlestick Point, and it’s unclear how many of those will go into what is now a state park.

Critics say Newsom is trying to use Prop. G like a hammer to force through legislation that wouldn’t pass locally and would destroy the park’s current functions and wildlife habitat, forever changing life in Bayview Hunters Point, due to the scale and socioeconomic and environmental impacts of Lennar’s proposed redevelopment.

Created by the legislature in 1977, CPSRA is the state’s first urban park. It offers panoramic views of the wind-whipped bay, San Bruno Mountain, and Yosemite Slough, the only unbridged waterway in the city’s southeast sector. And while it’s not typically crowded, the park is well-used by residents, who like to hike and jog, walk their dogs, and windsurf adjacent to Monster Park stadium.

Saul Bloom — whose nonprofit group, Arc Ecology, angered Cohen and Newsom in February when it published "Alternatives for Study," a draft report that identified deficiencies in Lennar’s current proposal — admits that a section of the park is a weed-filled lot that 49ers fans use for parking on game days.

"But the leasing for parking contributes $800,000 toward park maintenance annually," Bloom told the Guardian, noting that this is a vital source of funding in tough times.

He also noted that the California State Parks Foundation recently raised $12 million to restore Yosemite Slough and the California Solid Waste Management Board (whose members include former Sen. Carole Migden, whom Leno defeated last year) recently completed a $1 million rehabilitation of a former construction debris field on the state park property.

But neither this nor the state Budget Conference Committee’s recent decision to institute a $15 surcharge on vehicle license fees of noncommercial vehicles as a dedicated funding source to keep California’s state parks open will save CPSRA from being hobbled if SB 792 is approved in its current state.

"Surely other land can be used for building condos. Affordable housing and condo residents need open space too," said Peter Barstow, founding director of Nature in the City, noting that the 42-acre parcel of contested land represents 25 percent of the park, but only 5 percent of the 770 acres the developer has at its disposal to build 10,500 units of proposed housing.

"Any loss in acreage would seriously diminish the ability of the park to serve the city’s needs, especially with 10,500 new units proposed for the Lennar development," Barstow said.

He said some "logical swapping" is possible. "But they are doing some numbers game, in which they are counting a huge amount of parkland that is already there."

"We should be thinking how to connect these ecologically isolated islands," Barstow said, who sees this debate as an opportunity to link CPSRA to wildlife corridors in McClaren Park and Bayview Hill. "The development should be in the interest of the people, critters, wildlife and plants in the Bayview, not in those of someone in an office thousands of miles away."

He also scoffed at proponents’ arguments that the density of the development means that it is smart urban growth. "Just because a development is dense is not an argument to build it on a park."

Cohen recently told the Guardian that the 77 acres of the 49ers stadium and all the paid parking inside its facility will be filled with "mainly retail and entertainment," while the 42 acres of state park would be used to build condos.

Meredith Thomas of the Neighborhood Parks Council noted that her group "fully supports the revitalization and redevelopment of the Candlestick Point/Shipyard area … But when folks voted for Prop. G in June 2008, nowhere did the measure say that by voting for it, you are agreeing to sell parkland."

"We are always concerned when municipal land that is being used as a park is put up for sale," Thomas said. "While it’s a state park, it really functions as a neighborhood park for those who use it. I think what happens when we plan for large developments is that we don’t do enough to plan for parks with the density increase that’s coming."

The Sierra Club has been leading the charge against the bill. "We lose 40 acres but gain a bathroom," Arthur Feinstein, the Sierra Club’s local representative jokingly told the Guardian. "Now that’s a good deal!"

Observing that the organization’s position is "no net loss of acreage, no loss of biodiversity, no loss of wildlife corridors," Feinstein said, "There are a ton of alternatives to this plan and no reason to destroy 25 percent of the park or build a bridge and a road over Yosemite Slough."

With Arc’s studies showing that the bridge, which will cost $100 million to construct, only shaves two minutes off travel time, Feinstein added: "This is a road to nowhere. It’ll cost $50 million a minute."

He also said that allowing a company to buy state parkland "sets a terrible precedent… Then every state park is at risk from developers as the state’s budget woes grow. I hope Sen. Mark Leno sees this."

"No one would ever think put housing on Crissy Field," Feinstein continued. "But in the Bayview, the attitude is, why not? That whole mentality has made the area into an environmental justice community. Even when it’s given something, it comes in a costly way to the community, but a cheap way for the developers."

Lennar’s shipyard: more toxic than you think

-
0

news@sfbg.com

OPINION "So, what do you want us to do?"

That was the question from a staff member at the Bay Area Air Quality Management District (BAAQMD) after he passed along reports of Lennar Corp.’s latest repeated releases of toxic dust containing asbestos, arsenic, lead, and other metals into the air in Bayview-Hunters Point, one of the last remaining African American communities left in San Francisco.

After grudgingly levying more than $500,000 in fines against Lennar in 2008 for earlier brazen violations (after fierce community pressure), why is BAAQMD’s enforcement of clean-air standards against a notorious corporation on a dangerously toxic site still a negotiation?

After years of broken promises and half-hearted mitigation, the toxic partnership between the city and Lennar to develop the shipyard continues to threaten public resources and poison our communities in more ways than one.

In the last few months, with the help of the Mayor’s Office, Lennar is backing away from the promises it made in Proposition G. Instead of making 32 percent of its housing at the shipyard "affordable" to city residents (never mind that this definition of "affordable" is still well out of the reach of the great majority of Bayview residents), Lennar is now placing responsibility back on the city to build the affordable housing. As the Mayor’s Office prepares to use public money to subsidize Lennar’s broken promises, this revised arrangement blows a huge hole in the budget of the Mayor’s Office of Housing and threatens to destroy 30 years of efforts to create and preserve affordable housing elsewhere in the city.

As reported by Sarah Phelan last week ("Eliminating dissent," 6/17/09), state Sen. Mark Leno has legislation that seeks to trade 25 percent of Candlestick Point State Recreation Area for small strips on the shipyard so Lennar can build condos on the parkland (see "Selling the park" in this issue).

With the consent of City Hall, the Navy and Lennar continue to make deals in a backroom, with no public participation. The plan for development of the shipyard is getting even more toxic than you think, and its dangers threaten everyone in San Francisco.

That’s why a large coalition of grassroots organizations is joining forces for a community protest at the front gate of the Hunters Point Shipyard at 1 p.m. Tuesday, June 30. If the government won’t protect our communities from contamination and corporate greed, then we will do it ourselves.

For details, call Greenaction at (415) 248-5010 x107. *

Kelly is president of the Potrero Boosters Neighborhood Association. Schwartz is co-director of People Organized to Win Employment Rights (POWER). Harrison is a community organizer at Greenaction for Health and Environmental Justice. Brooks is the campaign coordinator for Our City.

Eliminating dissent

-
0

sarah@sfbg.com

For years, the Hunters Point Shipyard Restoration Advisory Board has served as the Bayview-Hunters Point community’s main voice in the U.S. Navy’s environmental cleanup plans for the toxic former naval station. But the committee is suddenly being disbanded just as the cleanup enters a crucial phase.

Used for shipbuilding and submarine maintenance and repair, and the decontamination, storage, and disposal of radioactive and atomic weapons testing materials, the shipyard was added to the Superfund national toxic site cleanup list in 1989. But it is also at the heart of where Mayor Gavin Newsom has partnered with Lennar Corp. on the city’s biggest development proposal, involving 10,500 homes and a new stadium for the 49ers.

As the Navy prepares to release a series of important studies and reports concerning the cleanup of the dirtiest parcels on the former shipyard, community members were outraged by the Navy’s announcement in late May that it is preparing to dissolve the RAB in the next 30 days.

In July the Navy will release draft feasibility studies for the cleanup of Parcel E, along with a final remedial investigation/feasibility study for Parcel E2, the dirtiest parcel on the base, and a radiological data-gathering investigation in the sediment surrounding Parcel F, which is the underwater portion of the base.

Some insiders say the announcement was not unexpected, given an escautf8g series of confrontational RAB meetings with the Navy over the last two years. But they fear the community will lose its ability to give the Navy direct, timely, and meaningful feedback, even if many believe the Navy wasn’t listening.

"The Navy fully supports the need for open, meaningful dialogue with the diverse Bayview-Hunters Point community regarding our environmental cleanup actions and decisions. However, the RAB is not fulfilling this objective," the Navy’s Laura Duchnak wrote in a May 22 letter to the RAB.

In her letter, Duchnak said the RAB meetings no longer provide community input on the Navy’s environmental cleanup program, that their atmosphere is not productive to effective public discourse, and that Navy attempts to improve the process have failed. "The revised community involvement program may include community environmental forums, including using Internet-based technologies to more easily reach a diverse audience, expanded monthly progress reports and fact sheets, and hosting technical discussions and tours of cleanup sites for interested community members," Duchnak wrote.

Duchnak’s announcement followed a tense January meeting in which RAB members reacted with horror when the Navy announced it was moving forward with controversial plans to cap radiologically-affected areas on the shipyard’s Parcel B instead of digging and hauling them, which the community preferred (see "Nuclear Fallout," 07/16/08).

Led by RAB co-chair Leon Muhammad, who teaches at the Nation of Islam’s Center for Self Improvement, which has been repeatedly dusted by unmonitored asbestos (see "The corporation that ate San Francisco," 03/17/07), and joined by newly sworn-in members Archbishop King, Marie Harrison, and Daniel Landry, the board voted to seek a civil grand jury investigation into whether local truckers are getting their fair share of the Navy’s shipyard contracts.

Members then voted to remove the city’s public health representative Amy Brownell from the RAB, and to call for the stoppage of all work on the yard until the Department of Defense, the Navy, and the city can prove, as Muhammad said, "where the ongoing dust exceedences are coming from."

The final straw, insiders say, occurred in February when members voted to remove the Navy’s RAB co-chair Keith Forman from the advisory board. Eric Smith, who was sworn onto the RAB in January but did not vote to remove Brownell and Forman, said the Navy’s dissolution response wasn’t surprising.

"The dissolution of RAB is not a good thing in terms of what it is supposed to do. But it was also doing things that were dysfunctional," Smith said. "The bitter irony is that the folks who caused the trouble were trying to get the Navy to sit up and take notice."

Smith said there is frustration with the Navy’s communication style, which the community feels is patronizing. "But the RAB was naïve to think the Navy would allow a forum over which it has unilateral authority to become a platform for attacks," Smith said.

RAB member Kristine Enea, who missed the RAB’s last two meetings, confirmed that the atmosphere got increasingly confrontational but added that the Navy ignored suggestions her calls for wider community involvement.

"It’s ironic that the Navy had decided to respond to criticisms, which include the charge that it is a poor communicator, by cutting off communications with the community," said Enea, who works at the India Basin Neighborhood Association. "Dissolving the RAB is a drastic step. There is so much going on, and so much that we need to know."

But Enea hopes IBNA can help fill that void, noting that the association has applied for a US Environmental Protection Agency technical assistant grant to review shipyard clean-up documents, provide fact sheets, and host community meetings.

The Sierra Club’s Arthur Feinstein said that his group’s main concern around the dissolution is that Parcel E2, which contains an industrial and radiologically-impacted dump that burned for six months in 2000, and Parcel F are both coming up for analysis.

"These are some of the most significantly contaminated areas on the shipyard, so the timing is terrible," Feinstein told the Guardian, observing that some RAB members did not appear to be looking for solutions and were so aggressive they destroyed meetings.

"Unfortunately there weren’t enough forceful people to say ‘shut up and sit down,’" Feinstein said. "But without a RAB, there will be no public forum where folks are able to get and read materials ahead of the meeting, and then ask and submit questions."

Harrison, a member of the environmental justice group Green Action, believes the Navy’s intent is that there be no meaningful interaction with the community. "When you don’t toe the line and play like good little children, the Navy shuts you down," said Harrison, whose group, along with the Nation of Islam and the Caravan for Justice, are planning a June 30 demonstration at the shipyard to protest the move.

In another point of controversy, Sen. Mark Leno has legislation that seeks to trade 25 percent of Candlestick Point State Recreation Area, the only major piece of open space in the Bayview, for small strips on the shipyard so Lennar can build condos on the parkland.

Noting that Sen. Leland Yee and Assembly Members Tom Ammiano and Fiona Ma oppose the parks-for-condos plan (see "Going Nuclear," April 29), Harrison said, "What possessed anyone to believe that we’d say, okay, take the only open space in the Bayview, and in exchange we’ll accept contaminated land scattered around on the shipyard?"

Environmental advocates believe the Sierra Club intends to fight Leno’s legislation with a challenge under the California Environmental Quality Act, but Leno told the Guardian that he is "continuing to work and meet with the lobbyists for the Sierra Club here in Sacramento to see if there are any additional amendments we can take that would get them to a neutral position on the bill.

"I think there is a good possibility we can get there," Leno said.

In February, Arc Ecology released a 133-report titled "Alternatives for study" that recommended the removal of the Parcel E2 landfill and explored changes in land use arrangements in the current redevelopment proposal to avoid environmental impacts (see "Concrete Plans," Feb. 4). Unfortunately, they were largely ignored by the Mayor’s Office of Economic and Workforce Development, which is working with Lennar on the public-private development deal.

Arc Ecology executive director Saul Bloom remains undaunted, recalling how 87 percent of voters citywide supported Proposition P, an advisory measure he wrote and that then-Sups. Ammiano, Leno, Michael Yaki, and the late Sue Bierman placed on the ballot in 1989 to establish community acceptance criteria for the shipyard, under federal toxic cleanup guidelines.

"The Navy had offered their opinion that voters in San Francisco, and especially in the Bayview, would accept a nonresidential industrial level cleanup for the shipyard because they were primarily interested in jobs," Bloom recalled. "We said that this was a mischaracterization and we’d go ahead and prove them wrong."

He believes the current struggle with the Navy over the RAB, and with the city and Lennar over Arc’s alternatives, are "emblematic of the problem facing the Bayview with regard to accessing good information and being told the straight story on health and development issues."

Saving the southeast

-
0

sarah@sfbg.com

foreclosures0509.jpg
This map of all foreclosures in San Francisco shows a heavy concentration in the southern part of the city, home to many low-income communities of color.

When Mayor Gavin Newsom and Sup. Sophie Maxwell convened a task force in July 2007 to figure out why African Americans are leaving San Francisco and how to reverse this trend, the subprime loan market crisis was about to send a shock wave of home foreclosures sweeping through southeast San Francisco.

Hope SF, the promised rebuild of the city’s public housing projects, is underway at a cost of $95 million. The city’s certificates of preference program, giving housing priority to black residents displaced by redevelopment, has been expanded and extended. But little has been done to address the immediate problem.

Instead political leaders have focused on a plan to subsidize Lennar Corp.’s construction of thousands of new condos in the southeast section of the city — the heart of the San Francisco’s remaining African American community — and have done nothing to promote a plan that could convert hundreds of foreclosed homes into affordable for-sale or rental units there, right here, right now.

African American Out Migration Task Force (AAOMTF) members recall warning that the crisis would likely hit San Francisco’s already dwindling black population extra hard. And Sup. John Avalos, who was running for election in District 11, remembers seeing impacts in the Excelsior District as early as 2007.

"I was telling people in early 2007 that this was a problem in District 11, and even real estate people didn’t believe me," recalled Avalos, who is exploring legislation to hold banks accountable and spoke at an ACORN protest in support of Excelsior homeowner Genaro Paed, a Filipino native who just staved off eviction orders pending the outcome of his lawsuit against Washington Mutual concerning what Paed describes as "a predatory loan" secured in 2006.

Avalos also planned to introduce legislation on May 12 that would expand protection of renters, including those in foreclosed homes who are now being evicted by banks.

This isn’t the first time city leaders have studied the African American exodus or ways to prevent low-income and minority households from being preyed upon or displaced. Indeed, this task force’s initial findings, (released last summer after Lennar spent millions to persuade voters to support building 10,000 condos in the city’s southeast) suggests San Francisco’s entire black community is at risk unless proactive and immediate steps are taken.

According to U.S. Census data, the city’s African American population shrank to 6.6 percent of the city’s total population by 2005 (a 40 percent decline since 1990) and will likely slip to 4.6 percent by 2050, according to the California Department of Finance. And these findings were made before the foreclosure crisis heated up.

In 2008 Maxwell and other elected officials convened a Fair Lending Working Group (FLWG) to figure out how to respond to the wave of foreclosures. By year’s end, there were 667 home foreclosures in San Francisco, almost all in the city’s southeast sector.

These numbers sound small compared to Contra Costa County or Oakland, where thousands of foreclosures occurred. And they aren’t big enough to qualify for the first round of President Barack Obama’s National Stabilization Program grants, which were released earlier this year. Based on a census-driven formula, the grants sent $8 million to Oakland and no money to San Francisco.

But with half the city’s foreclosures in the Bayview, home to most of the city’s remaining African Americans, the fact that little has been done to save these homes — or to follow early recommendations to do so — is a gentrification crisis in the making.

Ed Donaldson, housing counseling director at the San Francisco Housing Development Corporation in the Bayview District, served on the FLWG and remembers suggesting a two-tier track. First, take steps to protect renters in places that have been foreclosed and second, buy as many foreclosed properties as possible with the aim of reselling or leasing them as affordable units. While the FLWG liked the renter protection angle, it did not support the foreclosure acquisition program.

"The idea fell on deaf ears," recalls Donaldson, who was disappointed his foreclosure purchase plan didn’t make it onto FLWG’s recent recommendation list. FLWG members include financial institutions such as Wells Fargo, Washington Mutual, and Patelco Credit Union; community-based organizations such as Housing and Economic Rights Advocates, SFHDC, Mission Economic Development Agency; and city agencies. The agency also has received staff support from Assessor-Recorder Phil Ting, the Mayor’s Office of Housing, Treasurer Jose Cisneros and the Office of the Legislative Analyst.

"We’d already seen the spike in foreclosure numbers, so how did these recommendations get pushed out? We need something with teeth," Donaldson said.

SFHDC executive director Regina Davis says she suggested a foreclosure purchase and resale plan as an AAOMTF member and was concerned when she noticed that her recommendation was not included on the list discussed at the April 23 meeting. Billed as a closing-out session, that meeting took place at the San Francisco Redevelopment Agency and was attended by Davis, chair Aileen Hernandez, Redevelopment director Fred Blackwell, the Rev. Amos Brown, Barbara Cohen of the African American Action Network, Tinisch Hollins of the Mayor’s Office of Criminal Justice, and former supervisor and assessor Doris Ward, among others. The AAOMTF is finishing up its work this week.

"I got involved because I believed that in exchange for participation, we would see things done and/or funded. Part of what we want to see are real action items that keep African Americans in San Francisco or bring them back. So we really want this issue to move forward with substance," Davis told the Guardian.

Recognizing that San Francisco is facing massive budget constraints, SFHDC is proposing to borrow $1.5 million from Clearinghouse CDFI, a Los Angeles community development financial agency, to acquire and rehabilitate these foreclosed properties.

Davis’ group would then turn it around and offer residents several options: buy (if the prospective buyer qualifies for the city’s $150,000 downpayment assistance and a $50,000 loan from the California Housing Financing Agency); lease (in which SFHDC sells the home to the buyer but leases the land, making the price affordable), lease-to-own. Or, Davis adds, people could rent the units at affordable rates.

But to make the plan work, SFHDC need the banks to sell the properties AT below market rates. Noting that foreclosed properties are still selling in the Bayview for $400,000, Davis says her nonprofit intends to purchase 100 to 200 homes during a 24-month period at less than $200,000 mark.

Yet Davis remains optimistic about the plan’s chances as SFHDC negotiates with major banks for a 50 percent discount, noting that there is a monthly average of 50 foreclosures in the Bayview-Hunter’s Point, and SFHDC has access to 100 qualified buyers.

Blackwell said the Redevelopment Agency hasn’t developed an initiative or a funding pool to respond to the foreclosures in the city’s southeast sector. But, he said, the agency is looking at ways to apply for National Stabilization Program funds even though "federal guidelines mostly don’t apply well in expensive markets like San Francisco.

"We are engaged in advocacy so San Francisco can take advantage of any federal stabilization funds, but we don’t have an agency-specific proposal," he continued.

"Frankly, I think community-based organizations are the best to do programs like that, especially since there is so much anxiety about the Redevelopment Agency and property acquisition in the southeast," Blackwell added.

He believes that given the city’s current budgetary constraints, the AAOMTF "will likely look for leadership from the Mayor and the Board of Supervisors in cases where members have made recommendations and there is an opportunity to bring in public money."

Blackwell feels the city is still getting its mind around its foreclosure problem. "We’ve been spared the wholesale neighborhood-by-neighborhood devastation that places like Antioch faced," Blackwell said. "So, there wasn’t the same sense of urgency. And there’s a need to look more closely at the data. A lot of the information is based on anecdotes."

Yet the feds seem willing to help if city officials take the initiative. Larry Bush, spokesperson for the U.S. Department of Housing and Urban Development’s regional office, says San Francisco and Oakland could file a joint foreclosure plan application.

"If they can identify 100 homes, they’d be eligible for $5 million," Bush said, noting one snag that could unravel the plan locally. "Foreclosed properties must be vacant for at least six months. And as you know, in San Francisco, foreclosed homes still sell."

Maxwell says the city could do more to confront predatory lenders and enforce tenant rights, as well as developing a plan to buy foreclosed properties. "But in San Francisco it’s an issue because of relatively high prices," she told us.

Yet the city’s high prices are the very problem pushing out low-income residents. African American home ownership actually increased after 1990, even as out-migration among black renters increased. But now, if the foreclosures stand, that exodus will likely accelerate.

Asked if she supports SFHDC’s current foreclosure plan, Maxwell said, "It makes sense to me. If that could be done, it would be optimal."

Myrna Melgar of the Mayor’s Office of Housing says she’s not sure that a foreclosure resale plan would work in San Francisco for folks who bought a couple of years ago, when house prices hit $700,000, only to see house prices fall to around $400,000.

"San Francisco is a very different universe from Detroit," Melgar said. "Properties don’t sit around empty and vacant. They are bought by speculators who are betting that in two or three years, their values will go up. So if we had money to buy these properties, which we don’t, we’d be in competition with the speculators, who have lots of money with no strings attached, and who drive the prices up."

Another difference, Melgar said, is that San Francisco banks are holding onto 50 percent of their foreclosed properties, whereas Antioch banks are only holding onto 22 percent. "We’d like to keep folks in the homes," Melgar said. "But it’s a policy issue related to the reality that we have such limited funds."

Don’t shoot the shipyard messengers

-
3

Rev. Amos’ Brown’s recent op-ed in the Examiner is the latest in a string of attacks on anyone who suggests that anything about Lennar’s redevelopment plan could be improved.

These types of attacks are called “shooting the messenger.” And while they can be effective in silencing critics, they don’t address the problems contained in the message that the (now smeared) messenger was delivering.

In this latest instance of shooting the messenger, Amos’ target is the outspoken Minister Christopher Muhammad, who leads the Nation of Islam mosque on Third Street in Bayview Hunter’s Point and represents the Muslim school that sits adjacent to the shipyard.

Muhammad, who is good at firing up his followers with feisty soul-shaking speeches, has taken to comparing Florida-based developer Lennar to an invasive Burmese python, ever since Lennar failed to control toxic asbestos at the shipyard.

Muhammad also has taken to saying that if Lennar had screwed up in Pacific Heights and the kids at the school had been white, the response from Mayor Gavin Newsom and corporation would have been very different—and Lennar would likely have been fined more than $500,000, which is equal to the cost of one of the 10,500 condos that they are planning to build on the shipyard and Candlestick Point in the next decade.

Muhammad, who has been making these comments at just about every commission, hearing, and meeting citywide, recently took his show on the road to embarrass Newsom at the townhalls in Napa and San Jose, where the man who wants to be California’s next governor was hoping to seduce supporters with speeches and a sunny smile, not be shouted down by a black minister shouting about asbestos and poor innocent children.

Last month, Newsom responded to Muhammad’s crashing of his gubernatorial run in what seemed like sour grapes manner: according to columnists Matier and Ross, Newsom saw that a letter was fired off to Muhammad’s school, with the help of Brown, demanding that $24,000 (of unpaid back rent totaling $168,000) be settled in 30 days, or the school—and with it the kids—will face eviction.

Going nuclear

-
0

news@sfbg.com

April Fool’s Day is known as a day for practical jokes designed to embarrass the gullible.

But Assembly Member Tom Ammiano’s legislative aide Quentin Mecke says the April 1 letter that Ammiano and fellow Assembly Members Fiona Ma and state Sen. Leland Yee sent Mayor Gavin Newsom urging him not to support a proposal to bury a radiologically-contaminated dump beneath a concrete cap on the Hunters Point Shipyard was dead serious.

In their letter, Ammiano, Ma, and Lee expressed concern over that fact that federal officials don’t want to pay to haul toxic and radioactive dirt off the site before it’s used for parkland. They noted that an "estimated 1.5 million tons of toxics and radioactive material still remain" on the site.

A 1999 ordinance passed by San Francisco voters as Proposition P "recognized that the U.S. Navy had for decades negligently polluted the seismically-active shipyard, and that the city should not accept early transfer of the shipyard to San Francisco’s jurisdiction, unless and until it is cleaned up to the highest standards," the legislators wrote. "Given the information we have, a full cleanup needs to happen," Mecke told us.

But Newsom’s response so far suggests he may be willing to accept the Navy’s proposal.

WAR WASTE


From the 1940s to 1974, according to the Navy’s 2004 historical radiological assessment, the Navy dumped industrial, domestic, and solid waste, including sandblast waste, on a portion of the site known as Parcel E. Among the materials that may be underground: decontamination waste from ships returning from Operation Crossroads — in which atomic tests in the South Pacific went awry, showering Navy vessels with a tidal wave of radioactive material.

"We have serious questions about the city accepting what is essentially a hazardous and radioactive waste landfill adjacent to a state park along the bay, in a high liquefaction zone with rising sea levels," the letter reads. "We understand that the Navy is pushing for a comparatively low-cost engineering solution which the Navy believes will contain toxins and radioactive waste in this very unstable geology. We hope that you and your staff aggressively oppose this option."

Keith Forman, the Navy’s base realignment and closure environmental coordinator for the shipyard, told the Guardian that the Navy produced a report that did a thorough analysis of the site.

The Pentagon estimates that excavating the dump would cost $332 million, last four years, and cause plenty of nasty smells. Simply leaving the toxic stew in place and putting a cap on it would cost $82 million.

Espanola Jackson, who has lived in Bayview Hunters Point for half a century, says the community has put up with bad smells for decades thanks to the nearby sewage treatment plant. "So what’s four more years?" Jackson told the Guardian.

Judging from his April 21 reply to the three legislators, who represent San Francisco in Sacramento, Newsom is committed only to a technically acceptable cleanup — which is not the same thing as pushing to completely dig up and haul away the foul material in the dump.

He noted that during his administration federal funding for shipyard clean-up "increased dramatically, with almost a half-billion dollars secured in the last six years." Newsom also told Ammiamo, Ma, and Yee that the city won’t accept the Parcel E landfill until both the state Department of Toxic Substances Control and the federal Environmental Protection Agency "agree that it will be safe for its intended use."

The intended use for Parcel E-2 is parks and open space, said Michael Cohen, Newsom’s right-hand man in the city’s Office of Economic and Workforce Development. The Navy won’t issue its final recommendations until next summer. "That’s when regulatory agencies decide what the clean up should be, whether that’s a dig and haul, a cap, or a mix of the two, " Cohen explained.

TRUCKS OR TRAINS?


Part of the Navy’s concern is the expense of trucking the toxic waste from San Francisco to a secure landfill elsewhere — someplace designed to contain this sort of material (and someplace less likely to have earthquakes that could shatter a cap and let the nasty muck escape).

David Gavrich and Eric Smith say the Navy is looking at the wrong solution. Gavrich, founder of the shipyard-based Waste Solutions Group and the San Francisco Bay Railroad, which transports waste and recyclables, and Eric Smith, founder of the biodiesel-converting company Green Depot, who shares space with Gavrich and a herd of goats that help keep the railyard surrounding their Cargo Way office weed-free, say the military solution is long-haul diesel trucks. But, he observes, the waste could be moved at far less cost (and less environmental impact) if it went by train.

Saul Bloom, executive director of Arc Ecology, a nonprofit that specializes in tracking military base reuse and cleanup operations, would also like to see the landfill removed, even though he’s not sure about the trucks vs. train options.

"We don’t have confidence about having a dump on San Francisco Bay," Bloom said. "I’m concerned about the relationship between budgetary dollars and remediation of the site. I’m concerned that the community’s voice, which is saying they’d like to see the landfill removed, is not being heard."

Mark Ripperda of EPA’s Region 9 told us that community acceptance is important, but a remedy must also be evaluated using nine specific criteria.

"A remedy must first meet the threshold criteria," Ripperda said. "If it passes the threshold test, then it is evaluated against the primary balancing criteria and finally the modifying criteria are applied."

Noting that he has not received any communication from either the Assembly Members or the Mayor’s Office concerning the Parcel E-2 cleanup, Ripperda said that "the evaluation of alternatives considered rail, barge, and truck transport, with rail being the most favorable transportation mode for the complete excavation alternative. However, the waste would still be transported and disposed into a landfill somewhere else and the alternatives must be evaluated under all nine criteria."

Ripperda said it’s feasible to remove the worst stuff — the "hot spots" — and cap the rest. "A cap will eliminate pathways for exposure and can be designed to withstand seismic events," he told us. "The landfill has been in place for decades and the groundwater data shows little leaching of contaminants."

Meanwhile Newsom has tried to redirect the problem to Ammiano, Ma, and Yee, saying he seeks their "active support in directing even more state and federal funds" toward cleaning up the shipyard. He made clear he wants to move the redevelopment project forward — now.

Sen. Mark Leno is carrying legislation that includes a state land swap vital to the city’s plans to allow Lennar Corp. to build housing and commercial space on the site.

But while Cohen claims the aim of the land trade is to "build another Crissy Field," some environmentalists worry it will bifurcate the southeast sector’s only major open space. They also suspect that was the reason Leno didn’t sign Ammiano’s April 1 letter.

Leno says that omission occurred because Sacramento-based lobbyist Bob Jiroux, who Leno claims drafted the letter, never asked Leno to sign. (Jiroux refused to comment.)

Claiming he would have signed Ammiano’s letter given the chance, Leno described Jiroux as a "good Democrat" who used to work for Sen. John Burton, but now works for Lang, Hansen, O’Malley, and Miller, a Republican-leaning lobbying firm in Sacramento whose clients include Energy Solutions, a Utah-based low-level nuclear waste disposal facility that stands to profit if San Francisco excavates Parcel E-2.

Ammiano dismisses the ensuing furor over Energy Solutions as a "tempest in a teapot.

"I signed that letter to Newsom because of the truth that it contains," Ammiano said. "Sure, there’s crazy stuff going on. But within the insanity, there’s a progressive message: the community wants radiological contaminants removed from the shipyard."

Uncivil unions

-
0

steve@sfbg.com

Who really cares about an appointment to the Golden Gate Bridge, Highway and Transportation District Board of Directors? There isn’t a delicate balance of power on the board or any major initiative at stake in this fairly obscure district. San Francisco certainly has more pressing issues and concerns.

Yet the Board of Supervisors’ April 14 vote to reject Larry Mazzola Jr. and select Dave Snyder for that board says more about San Francisco’s political dynamics, the state of the American labor movement, the psychological impact of the recession, how the city will grow, and the possibilities and pitfalls facing the board’s new progressive majority than any in recent memory.

It was a vote that meant nothing and everything at the same time, a complex and telling story of brinksmanship in which both sides of the progressive movement arguably lost. And it was a vote that came at a time when they need each other more than ever.

"It was a win for the Newsom-oriented elements of labor," Sup. Chris Daly, who helped spark the conflict, told the Guardian.

The bloc of six progressive supervisors who shot down Mazzola — who helps run the powerful plumbers union and was the San Francisco Labor Council’s unwavering choice for an appointment that has traditionally been labor’s seat on the bridge board — is the same bloc the unions helped elected last year. It is also the same bloc that has been fighting the hardest to minimize budget-related layoffs.

The vote says a tremendous amount about the crucial alliance between progressives and labor, how that delicate partnership formed, and what the future holds.

PLUMBERS VS. PROGRESSIVES


The Mazzola name carries a lot of weight in San Francisco labor circles. The Web site for the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry Local 38 (UA 38) features a photo of U.S. Secretary of Labor Hilda Solis standing between Larry Mazzola Sr. and Larry Mazzola Jr., the father and son team that runs the union.

But the Mazzolas and their union are also controversial. As the Guardian has reported ("Plumbers gone wild," 2/1/06), the union owns a large share of the Konocti Harbor Resort (which a lawsuit by the Department of Labor said was a misuse of the union’s pension funds) and owns the Civic Center Hotel, which tenants and city officials say has been willfully neglected by a union suspected of wanting to bulldoze and develop the site. The plumbers and other members of the building trades have also fought with progressives over development issues and generally back moderate-to-conservative candidates.

Sup. Chris Daly and several progressive groups locked horns with the union over the hotel a few years ago, and Mazzola Sr. responded by opposing Daly’s 2006 reelection campaign, targeting him with nasty mailers and donating office space to Daly’s opponent, Rob Black. Yet more progressive unions like Service Employees International Union Local 1021, which represents city employees, convinced the Labor Council to back Daly and union support helped Daly win.

So when Mazzola Jr. came before Daly’s Rules Committee last month, the supervisor unloaded on him, and Mazzola gave as good as he got, telling Daly he didn’t want his support and defiantly telling the committee he didn’t know much about the bridge district, or its issues, but he expected the job anyway. Those on all sides of the issue agree it was a disaster.

"He was just patently unqualified for the position," Daly told the Guardian. Mazzola tells us his experience with labor contracts would be an asset for the position, but he admits the committee meeting didn’t go well. "I was caught off-guard and put in a defensive mode that altered my planned presentation," Mazzola told us.

Whatever the case, Sup. David Campos joined Daly in keeping the Mazzola nomination stuck in committee while the progressive supervisors privately asked labor leaders to offer another choice. "We said, ‘Give us anyone else as long as they can intelligently talk about transportation issues and the bridge district," Daly said.

But labor dug in. "It seemed as though the board was trying to dictate to labor what labor should do," Michael Theriault, who heads the San Francisco Building and Construction Trade Council. And the other unions decided to back the trades, for a number of complicated reasons.

"The reason we supported Larry Mazzola is because this was important to the plumbers union," said Mike Casey, president of the Labor Council and head of Unite Here (which includes the Union of Needletrades, Industrial and Textile Employees and the Hotel Employees and Restaurant Employees International Union). "To the extent we can support the trades, we want to."

So when the four most conservative members of the Board of Supervisors used a parliamentary trick to call the Mazzola nomination up to the full board on April 14, the stage was set for the standoff.

THE STATE OF LABOR


Labor is truly a house divided, despite its universal interest in minimizing recession-related layoffs and taking advantage of a new Congress and White House that is generally supportive of labor’s holy grail: the Employee Free Choice Act, which would make it far easier to form unions.

The April 25 founding convention of National Union of Healthcare Workers (NUHW) in San Francisco caps a years-long battle between Sal Rosselli’s United Healthcare Workers (UHW) and their SEIU masters (see "Union showdown," 1/28/09). Rosselli and many others say SEIU under Andy Stern has become undemocratic and has climbed in bed with corporate America, while SEIU says getting bigger has made the union better able to advocate for workers. Both accuse the other of being power-hungry and not fighting fair.

"Inside SEIU, we’ve been struggling for four years basically on a difference of ideology and vision of what the labor movement is," Rosselli told us. David Regan, who SEIU named as a UHW trustee after ousting Rosselli, told us the union divisions have been overstated by the media. "Everyone is together in pushing the Employee Free Choice Act," he said, glossing over the fact that the legislation is in trouble and recently lost the support of U.S. Sen. Dianne Feinstein.

Nationally, SEIU has been at war with all of the most progressive unions. The union recently made peace with the California Nurses Association after a particularly nasty struggle that involves many of the same dynamics as SEIU vs. NUHW, including accusations by CNA that SEIU was a barrier to achieving single-payer healthcare and was illegally meddling in its internal affairs.

SEIU is also accused of breaking up Unite Here, which fought the most high-profile labor battle here since Newsom became mayor in its contract fight with the big hotel chains. Last month, a large faction from the old Unite affiliated with SEIU, whose officials say they were just helping out after the end of what all knew was a bad marriage. "This is an example of a merger that didn’t take," SEIU spokesperson Michelle Ringuette told us. But the building trades have backed Unite Here in its fight against Sterns’ SEIU. As Casey told us, "We’re in a major fight over our right to exist. There’s no other way to characterize it."

Yet in San Francisco, SEIU plays a different role. Local 1021 is the advocate for the little guy, representing front-line city workers who deliver social and public health services. It is the union facing the deepest layoffs in the coming city budget fight and is still negotiating contract givebacks with the Mayor’s Office. The union’s biggest allies in City Hall are the exact same six supervisors who voted against Mazzola.

So why this standoff? SEIU, Unite Here, and other progressive unions share the Labor Council with the building trades, which are traditionally more conservative and friendly with downtown and, these days, starting to really get desperate for work. "We have thousands of guys on the verge of losing their homes and families," Theriault said. "We are desperate."

That was one reason the San Francisco Labor Council last year cut a deal with Lennar Corporation to back Proposition G, which lets Lennar develop more than 10,000 homes in the southeast sector of the city. Daly, who wanted firmer guarantees of more affordable housing, was livid over the deal and has been at odds with the council ever since. But Daly said labor’s undercutting of progressives goes back even further and includes the early reelection endorsement Rosselli’s UHW gave Newsom in 2007, which helped keep big-name local progressives out of the race.

Tenants groups, affordable housing advocates, and alternative transportation supporters form the backbone of progressive politics, but on development projects, they often clash with the trade unionists who just want work. And labor expects support from the progressive supervisors. As Mazzola pointed out, "It was labor that got most of those guys elected."

But labor has its own fights on the horizon. SEIU fears deep city job cuts if the Mayor’s Office can’t be persuaded to start supporting new revenue measures. NUHW is getting challenged by SEIU for every member the try to sign up. And Unite Here’s hotel contracts start expiring in six months, reopening its battle with downtown hotel managers.

"We’re going to be in a real war with some of those employers," Casey said. Yet he said its actually good time for the otherwise distracting fights with SEIU over how nice to play with big corporations. "I embrace this fight because I think this is exactly the struggle we need to have in the labor movement."

But the Mazzola fight was one that neither side relished.

TO THE BRINK


The Board of Supervisors chambers was filled with union members flying their colors on April 14, but the progressive supervisors were just as unified, voting 6-5 to reject Mazzola. All that was left was the political posturing, the decision of what to do next, and the fallout.

"I am disappointed and surprised by the board’s action," Sup. Sean Elsbernd (who voted for Mazzola and publicly called it "a sin" to deny him) told us, refusing to confirm the private joy over the outcome that many sources say he has expressed. "What shocked me is a majority of the board turned their back on labor."

Daly admits that the standoff hurt progressives. "I’m not sure who came up with it, but it’s certainly true that the Sean Elsbernds of the world were able to take full advantage of the situation to drive a wedge between unions and progressives," Daly said.

Yet Daly noted how ridiculous is was for Sups. Elsbernd and Michela Alioto-Pier to be publicly professing such fealty to labor while opposing revenue measures that would minimize layoffs. "At the same time the plumbers were attacking me, I was sponsoring paid sick days," Daly said. "It’s the six members of the board that are the most pro-labor who voted against Larry Mazzola."

Politically, Elsbernd says the progressives misplaced their hand. "I think the easy middle ground for them was to reject Mazzola and send it back to committee," Elsbernd said. Others echoed that point. Instead, supervisors appointed Synder, a widely acclaimed transportation expert who created the modern San Francisco Bicycle Coalition then started Transportation for a Livable City (now Livable City) before becoming the first transportation policy director for the San Francisco Planning and Urban Research Association (SPUR).

"I don’t like how that went down, and I’m not happy with the inability of the board and labor to come to an agreement," Snyder told us. "I was stuck in the middle. I wish they had sent someone the board could have agreed to."

After the vote, Snyder went back to the SPUR office and resigned. SPUR director Gabriel Metcalf admits that labor leaders lobbied him to pressure Snyder to withdraw his name, and that he asked Snyder to do so. But Metcalf said he didn’t want to lose Snyder, whose vast knowledge of transportation issues as been a real asset to SPUR. "It was his choice and not my preference."

"This issue is not why I left SPUR, but it was the precipitating event," said Snyder, whose progressive values have occasionally differed from SPUR’s stands. "My sense of social justice has more to do with class issues than I was able to pursue at SPUR."

In fact, the clashes between progressives and developers (who are often backed by the trade unions) often revolve around how much affordable housing and community benefits will be required with each project approval. Snyder said the defining question is, "How do we accommodate development in San Francisco and maintain progressive values in a capitalist economy?"

He didn’t answer that question, but it is one the building trades also understand. Theriault said he supports holding developers to high standards, even when progressives have block certain projects to get them. "I’m okay with that as long as I see the endgame," Theriault said.

He expects the progressive board to listen to labor more than Daly or Democratic Party chair Aaron Peskin, who Theriault said helped shore up the progressive opposition to Mazzola (which Peskin denies). "With the exception of Daly, the relationships are reparable. But they have to show some independence from Daly and Peskin," Theriault said. "The real fear for me is what comes next."

Theriault was referring to things like new historic preservation standards that supervisors will soon consider, as well as the string of big development projects coming forward this year. And for progressives, they hope their efforts to save city jobs will be followed by labor support for progressive candidates for the Board of Supervisors (such as Debra Walker and Rafael Mandelman) in next year’s election.

"The one thing I know about labor is, we’ve been screwed by politicians on the left and the right," Casey said. "Are we angry about this and disappointed? Yes. But does that mean the alliance between labor and progressives is dead? No. We’re going to work through this stuff, talk, take deep breaths, and move forward."

NUHW’s founding convention takes place April 25 from 10 a.m. to 5 p.m. at Everett Middle School, 450 Church St., San Francisco.

Sunday Streets corporate sponsorships, writ small

-
1

By Steven T. Jones

Responding to criticism of the corporate sponsorships of this year’s Sunday Streets events, which begin April 26, organizers say it was a necessary evil that will barely be noticeable to attendees of the six street closure events.

“It will be the same exact Sunday Streets that you saw last year,” Wade Crowfoot, who is coordinating the event for the Mayor’s Office, told us, promising that corporate signage and promotion would be minimal. “The average person will not be aware that there’s private entities funding the direct costs.”

Crowfoot headed up fundraising for the events, tapping many of the same entities that have funded Mayor Gavin Newsom’s political ambitions, including Lennar, PG&E, WebCor Builders, Clear Channel, and Warren Hellman. But with six events costing up to $300,000, he said the grassroots help from Livable City, San Francisco Bicycle Coalition, Walk SF and other progressive groups is more important that ever.

Members of those groups love the Sunday Streets concept and recognize the city’s fiscal realities, but say this isn’t ideal. “I would have loved to have a city-sponsored event,” Livable City director Tom Radulovich told us. “It ought to be the city’s responsibility to create safe recreational spaces for people.”

Lennar’s housing scam, redux

-
6

By Steven T. Jones

Our post the other day on how Lennar and its allies misrepresented promises to build 32 percent affordability into its 10,500 homes proposed in southeastern San Francisco has earned us indignant calls from the Labor Council and ACORN. But at the end of each of those conversations, my belief that the city is getting a raw deal has only been strengthened.

Sure, these organizations and the city are collectively getting millions of dollars from Lennar. But if construction of affordable housing in the part of town with the lowest income San Franciscans is the concern, as it rightfully should be, it’s clear that Lennar has gotten one helluva deal, thanks to Mayor Gavin Newsom and other establishment Democrats.

Lennar gets free land from the city and free cleanup money from the federal government. Then they build market rate units (in a real estate market that’s already oversaturated with them), except for the same 15 percent below market rate units that every other developer in town (most of whom pay for their land) is required to build. And then they give some of our land back to us to build more affordable units, at the public’s expense.

Please, somebody out there explain to me why this is such a great deal for San Francisco.

The Lennar family rewards you. Seriously.

-
0

Here’s a juicy lead: Seems Lennar is willing and able to give folks who register with the “Lennar family” discounts at Home Depot, Blockbuster, Ace Hardware and Target,

Does that mean Lennar is planning on trying to bring all of those big boxes into D10, home of the Bayview, Hunters Point Shipyard, Viz Valley and Candlestick Point, on the southeast of town?

Lennar breaks its affordable housing promise

-
10

Lennar_Logo.jpg
By Deia de Brito

Last year, Florida-based Lennar Corp. broke local ballot funding records at the time when it spent close to $5 million on its campaign to approve Proposition G, giving it the right to develop more than 10,000 homes in southeast San Francisco, and to defeat Proposition F, the alternative measure demanding that half these units be affordable.

Lennar, the Redevelopment Agency, and Mayor Gavin Newsom argued that 50 percent affordability would doom the project. But to win the support of the San Francisco Labor Council, the San Francisco Organizing Project (SFOP), and Association of Community Organizations for Reform Now (ACORN), Lennar agreed to increase the number of affordable units from the 25 percent it proposed up to 32 percent of the total, along with guarantees of using local union members in the construction.

But in its first residential project under that plan, revealed on Tuesday at the Redevelopment Agency, it proposes building 88 market rate ownership units at the shipyard’s Parcel A, with only 13 are set aside for families earning less than 80 percent of the Bayview’s Area Median Income. That’s less than even the 15 percent required of most projects in San Francisco, and less than half what the company promised San Francisco voters.

Sup. Chris Daly authored Prop. F and warned at the time that Lennar couldn’t be trusted. “It’s not surprising, but it is unfortunate,” Daly said of Lennar’s opening residential project. “They should either live up to their promises or we should kick them out of town.”

Green-collar heat

-
0

› sarah@sfbg.com

GREEN CITY Local residents, workers, and businesses are anxious to learn who and what will be stimulated by the billions of dollars that President Barack Obama authorized for release when he signed the American Recovery and Reinvestment Act.

Since January 2008, unemployment in the Bay Area has risen from 4.9 percent to 8.4 percent, according to the U.S. Department of Labor Statistics, and house prices and consumer spending are down.

Despite all the anxiety, representatives from local low-income community groups hope to turn Obama’s stimulus package into an opportunity to make local government accountable for creating decent green-collar jobs. And Sups. Eric Mar, John Avalos, Sophie Maxwell, and Board President David Chiu seem happy to help further the community in this environmentally friendly cause.

Mar scheduled a March 23 hearing of the board’s Land Use and Economic Development Committee "to obtain community input on the creation of jobs, particularly green-collar jobs, in San Francisco as the city positions itself for federal investment dollars."

"The hearing was the first step toward building a grassroots coalition to hold government accountable," continued Mar, who worries that the Mayor’s Office is not sharing enough information related to the stimulus package. "Labor and community groups, not just department heads and City Hall, should be at the table."

At the hearing, representatives from the city’s Office of Economic and Workforce Development said that a substantial part of the first wave of stimulus package dollars has already been allocated, mostly to shovel-ready projects such as the Doyle Drive rebuild and massive development projects at Treasure Island and the Hunter’s Point Shipyard.

OEWD representatives also indicated that more waves of formula funding are expected, for which San Francisco must compete with other cities, and that the city’s Department of Technology is constructing a Web site to track all local money from Obama’s $787 billion package.

OEWD deputy director Jennifer Entine Matz says community-based organizations, unions, and community colleges need to work together to ensure that people are successfully brought through any work program. "In many cases, green collar jobs are existing jobs," Matz said. "If we are successful in training people with green power technology, they will be more marketable here and beyond. We can also train and modify people in existing programs."

But representatives from the Chinese Progressive Association, PODER (People Organizing to Demand Environmental and Economic Rights), and POWER (People Organizing to Win Employment Rights) expressed their belief that stimulus package funds should go to help low-income communities, not rich corporations.

"Let’s make sure we stimulate quality to make sure we stimulate the economy," said PODER’s Oscar Grande, who warned against using the funds on low-paid jobs with few advancement opportunities. He and others suggested tracking what communities receive funding. "We want to go past the green hype, the green-washing, and the green lifestyle marketing," Grande said.

Raquel Pinderhughes, an urban studies professor at San Francisco State University who helped Berkeley’s Green Business Council and Oakland’s Green Jobs Corp program, defined green-collar jobs as "blue collar jobs in green businesses.

"Green collar jobs can function to get more people out of poverty," Pinderhughes said. "They can provide living wages. They have low barriers to entry. They provide an opportunity for occupational mobility. They are inherently dignified, and they have a shortage of entry-level workers, so there is room for people."

But Pinderhughes warned that cities must link improving environmental quality to social justice to avoid creating temporary jobs and preserve industrially zoned lands for green-collar jobs. She also said that cities must fund case management services "so folks don’t quickly drop out."

The Land Use Committee has scheduled an April 6 continuation to address a plethora of outstanding issues like how much money is going to specific corporations and departments, the division of funds between public transportation and freeway projects, and how much Lennar Corp. is getting for its Hunters Point Shipyard/Candlestick Point redevelopment project.

The LA Times nails APRI

-
1

Fascinating story in the LA Times today about the A. Philip Randolph Institute.

It focuses on James Bryant, the APRI president who earns $117,000 a year from the nonprofit while also working full-time for the city as a Muni station agent (at $68,000 a year), who hired his son as a $62,000 acting executive director and who charged APRI $5,000 in rent for the use of his half-million-dollar house.

“There is just a conflict of interest all over this thing,” said Ken Berger, president of Charity Navigator, an online review service. “It looks like something that should be reported to a government entity.”

Daniel Borochoff, president of the American Institute of Philanthropy, said Joseph Bryant’s job — the son says his salary last year was $62,000 — is similarly troubling.

“In effect, it’s like putting himself on the payroll,” Borochoff said of James Bryant.

The story also notes that Bryant is on the executive board for SEIU Local 1021 and that there’s an internal union complaint against him.

But it mentions only in passing that APRI has received $290,000 from Pacific Gas and Electric Company since 2005, and tens of thousands more from Lennar Corp;, and in many ways, that’s the real scandal here.

Because APRI, named after the legendary African American trade unionist, has become little more than a shill for PG&E and Lennar. APRI worked against the public power campaign, worked against city efforts to install peaker plants (and thus compete with PG&E for energy generation), and worked in favor of giving Lennar control of the entire Bayview Hunters Point revedelopment project.

It’s a bogus astroturf front group for corrupt big businesses. That’s the real issue with Bryant and his sleazy organization.

Why is this guy chairing the political committee for Local 1021, a progressive union that has always supported public power? Now that the whole world knows that he’s PG&E’s guy, he should resign from that job.

BVHP realtors to discuss black crisis

-
0

Diane Wesley Smith, owner/broker of DWS/BVHP Real Estate Services, says that a newly formed group, the Bayview Hunters Point Real Estate Professionals, will meet at 1 PM, Friday, March 6 to discuss the current real estate situation in Bayview Hunters Point and how folks can help protect the BVHP community.

Afraid that the current redevelopment plans for the BVHP won’t help folks who grew up and live in the community to get jobs or stay in the BVHP, including those who hope to live in public housing, but have felonies on their record, Wesley Smith believes the time is right for concerned citizens to come together and brainstorm about this ongoing crisis.

Part of this crisis has been documented by Mayor Gavin Newsom’s African American Outmigration task force, which showed that African Americans are leaving San Francisco at a higher rate than any other U.S. city. But a visit to the taskforce’s website suggests that the taskforce has not met since December 2007. Equally disturbing is the fact that the task force did not present its findings to elected officials until August 2008. In other words, voters were not able to access relevant data about the plight of their city’s African American community, until six weeks after they had voted on–and endorsed–a conceptual framework that is now being used to drive an urban design plan that has environmental and social justice groups raising their eyebrows.

Fast forward to March 2009 and Diane Wesley-Smith is hoping that folks can come together and reach out to the Obama administration to make sure that the federal government realizes that the city is moving forward with plans to simply cap a radioactively contaminated landfill in the BVHP, even though the mess was created by the federal government, lies next to the San Francisco Bay and will be capped adjacent to a massive condo development.

“At the very least, Lennar should have online disclosures about the condition of the land they plan to develop,” says Wesley Smith, noting that she is concerned about all the people living in the BVHP.

The Bayview Hunters Point Real Estate Professionals will meet at DWS/BVHP Real Estate Services, 4636 Third Street at Newcomb Avenue.

Warmest Regards,

Diane

Diane Wesley Smith, Owner/Broker
DWS/BVHP Real Estate Services
4636 Third Street
San Francisco, CA 94124
415 821-2847 Office
415 342-5970 Cellular

Money talks

-
0

› news@sfbg.com

The economy’s a mess, and the housing crisis, financial meltdown, and skyrocketing unemployment rates have left a lot of San Franciscans short of cash. But the flow of big downtown money into political campaigns hasn’t slowed a bit.

In fact, a tally of all 2008 monetary and in-kind political contributions logged in the SF Ethics Commission Campaign Finance Database shows that even in the face of the worst financial crisis since the Great Depression, money spent on local political campaigns in the city swelled to a whopping $20.6 million. That grand total, which does not include loans or so-called "soft money" like independent expenditures, is higher than that of any previous year recorded in the Ethics database, which tracks campaign spending back to 1998.

A review of the entire database paints of picture of how influence money flows in San Francisco: Six of the top 10 donors over the past 10 years are big businesses and downtown organizations that promote the same conservative political agenda. The campaign cash often wound up in the same few political pots — a handful of supervisorial campaigns and some coordinated political action committees.

And despite spending ungodly sums of money, downtown lost more races than it won.

More than half the total money spent in 2008 came from one source: Pacific Gas and Electric Co., which plunked down $10.2 million last fall for the No on Proposition H campaign against the San Francisco Clean Energy Act. That November ballot measure, which lost under PG&E’s barrage, would have paved the way for public power, initiating a process to make the city the primary provider of electric power in San Francisco with a goal of 50 percent clean-energy generation by 2017.

The powerful utility wasn’t only the biggest spender last year — it claims the No. 1 slot on a list of all campaign contributions spanning from 1998 to 2008, which the Guardian compiled using Ethics data. PG&E dropped a juicy $14.7 million into local political campaigns over that period, beating out runner-up Clint Reilly by more than $10 million.

Below are brief introductions to the 10 biggest spenders, 1998-2008.

They’ve got the power. The colossal sums PG&E has forked over to influence ballot measures over the years puts the utility in a category all its own. SF isn’t the only municipality where the company has poured millions into defeating a public power proposal. In 2006, when Yolo County put measures on the ballot to expand the Sacramento Municipal Utility District (SMUD), which would have edged PG&E out of the service area, the utility spent $11.3 million to try and keep it from happening.

Pay to the order of Clint Reilly. Reilly, the former political consultant, now runs a successful real estate company. While his name routinely comes up on the roster of campaign contributors, he owes his status as No. 2 to his 1999 campaign for SF mayor, into which he poured some $3.5 million of his own money. "Most of the money we give is for Democratic candidates or progressive politicians, or neighborhood-oriented issues," said Reilly, who also served as president of the board of Catholic Charities.

Committee on really high-paying jobs? Third in line is the Committee on Jobs, a political action committee that aims to influence local legislation affecting business interests. The PAC is bankrolled in part by the Charles Schwab Corporation, Gap, Inc., and Gap founder Don Fisher — all of whom surface on their own in our Top 30 list. With a grand total just shy of $3 million, the committee coughed up about $100,000 in campaign-related spending in 2008. Much of that funding went to similar political entities, including the SF Coalition for Responsible Growth, the SF Chamber of Commerce 21st Century Committee, and the SF Taxpayers Union PAC (see "Downtown’s Slate," 10/15/2008). This past November, the COJ also backed the Community Justice Court Coalition, formed to pass Proposition L, which would have guaranteed first-year funding for Mayor Gavin Newsom’s small-crimes court in the Tenderloin. Prop. L failed by 57 percent.

Bluegrass billionaire. San Francisco investment banker and billionaire Warren Hellman has dropped nearly $1.2 million over the years into local political campaigns, our results show. Dubbed "the Warren Buffet of the West Coast" by Business Week for his sharp financial prowess, Hellman co-founded Hellman and Friedman, an investment firm, in 1984. Hellman is known for putting on Hardly Strictly Bluegrass, an annual SF music festival. While he tends to contribute to downtown business entities such as the Committee on Jobs and the Golden Gate Restaurant Association, in 2008 he devoted $100,000 to supporting a June ballot measure, Proposition A, that increased teacher salaries and classroom support by instating a parcel tax to amp up funding for public schools.

Fisher king. Don Fisher, founder and former CEO of Gap, Inc., is another one of SF’s resident billionaires. While Gap, Inc. turns up in 17th place in our results, Fisher himself has poured more than $1.1 million into entities such as the Committee on Jobs, SFSOS, the San Franciscans for Sensible Government Political Action Committee, and other conservative business groups. Fisher’s total includes money from the "DDF Y2K family trust," a Fisher family fund that shows up in Ethics records in 2000. In that year, $100,000 from that trust went to support the Committee on Jobs’ candidate advocacy fund, and another $40,000 went to a pro-development group called San Franciscans for Responsible Planning.

Not a very affordable campaign, either. Sixth up is Lennar Homes, the developer behind the massive home-building project at Hunters Point Shipyard, which the Guardian has covered extensively. The vast majority of its $1 million reported spending was directed to No on Prop. F, a campaign sponsored by Lennar to defeat a June ballot measure that would have created a 50 percent affordable-housing requirement for the Candlestick Point and Hunters Point Shipyard development project. The measure failed, with 63 percent voting it down.

Chuck’s bucks. Charles Schwab Corp., which set up shop in San Francisco in the mid-1970s, is an investment banking firm that reports having $1.1 trillion in total client assets. The corporation ranks seventh in our Top 30 list, with some $973,000 in donations. In 27th place is Charles R. Schwab himself, the company’s founder and chairman of the board (and the guy they’re referring to in those "Talk to Chuck" billboards posted all over SF). If Schwab’s individual and corporate donations were combined, the total would be enough to bump Warren Hellman out of fourth place. Schwab’s dollars are infused into the Committee on Jobs, the San Francisco Association of Realtors, the Golden Gate Restaurant Association, SF SOS, and other downtown-business interest organizations. "We’re a major company here in the Bay Area and a major employer," company spokesperson Greg Gable told the Guardian. "We’re interested in political matters across the board — it’s not limited to any one party." But it’s limited to one pro-downtown point of view.

The brass. The San Francisco Police Officer’s Association is another major player, spending some $913,000 since 1998 on political campaigns. The organization backed candidates Carmen Chu, Myrna Lim, Joseph Alioto, Denise McCarthy, and Sue Lee for supervisors in 2008, contributions show. All but Chu lost.

At your service. SEIU Local 1021 and SEIU 790 crop up frequently in Ethics data, with a grand total of about $860,000 in spending over the years. SEIU representatives recently turned out en masse at a Board of Supervisors meeting to urge the supervisors to support a June 2 special election to raise taxes in order to boost city revenues and save critical services from the hefty budget cuts that are coming down the pipe.

Friends in high places. No real surprises here: the Friends and Foundation of the San Francisco Public Library contributed its money to, well, ballot measures that would have affected the library. In 2000, for example, the F and F plunked $265 thousand into an effort called the "Committee to Save Branch Libraries — Yes on Prop. A."

Top 30 San Francisco campaign donors, 1998-2008

1. Pacific Gas & Electric $14,831,486
2. Clint Reilly $4,138,089
3. Committee on Jobs $2,970,857
4. Warren F. Hellman $1,191,970
5. Don Fisher (incl. Don & Doris Fisher Y2K trust) $1,164,286
6. Lennar Homes $1,002,861
7. Charles Schwab Corporation $973,176
8. S.F. Police Officers Association $913,834
9. SEIU Local 1021 & SEIU Local 790 $860,979
10. Friends & Foundation of the S.F. Public Library $858,082
11. California Academy of Sciences $818,154
12. Residential Builders Association of S.F. $753,857
13. Steven Castleman $665,254
14. S.F. Association of Realtors $647,299
15. S.F. Chamber of Commerce $614,824
16. SEIU United Health Care Workers West & Local 250 $585,937
17. Gap, Inc. $573,959
18. California Issues PAC $556,238
19. Corporation of the Fine Arts Museums $541,474
20. Wells Fargo $464,899
21. Building Owners & Managers Association of S.F. $464,027
22. Bank of America $429,316
23. Golden Gate Restaurant Association $422,685
24. SF SOS $407,491
25. AT&T Inc. and affiliates $404,704
26. Clear Channel $391,783
27. Charles R. Schwab (individual) $362,250
28. Yellow Cab Cooperative $344,907
29. S.F. Apartment Association $280,376
30. San Franciscans for Sensible Government PAC $279,009

Concrete plans

-
0

› sarah@sfbg.com

In the fractious atmosphere that dominates meetings concerned with Lennar’s plan to redevelop the economically depressed southeast sector of San Francisco, reality is relative to one’s perspective on this ambitious project.

At these meetings, competing factions within the Bayview’s predominantly African American community typically accuse each other — as well as the mostly white engineers, planners, and scientists that Lennar and the city hired to flesh out the details of their vaguely worded but voter-approved conceptual framework — of being sellouts and traitors.

The Jan. 28 meeting, where two local advisory committees endorsed Lennar’s draft urban design plan for a 770-acre Candlestick Point/Hunters Point Shipyard development, was typical. It was held at the Southeast Community Facility, within sniffing distance of a seismically suspect sewage treatment plant.

The committee’s endorsement came at the end of a meeting that was full of what critics labeled "disingenuous claims" by representatives from Lennar, the Mayor’s Office, the San Francisco Redevelopment Agency, and the city’s Planning Department; recriminatory accusations by community members; and disruptive chants of "A-B-Uuuu!" by a female member of Aboriginal Blackmen United, who claimed that ABU members have been starved for work at Lennar’s development. Records show Lennar paid ABU trainees $11,300 in fiscal year 2005–06 for work at the Shipyard’s Parcel A.

Fanning the flames was a report that local environmental nonprofit Arc Ecology released last month. Arc’s report faults Lennar’s urban design plan for not including comparisons with realistic alternatives and for failing to study the cumulative impact of the 15 developments, covering 1,500-2,000 acres, currently underway on the eastern waterfront.

"The practice of ‘island’ development prevents the city from conceiving a cohesive vision for the east waterfront," Arc Ecology’s January 15 report states. "Moreover, the piecemeal approach cannot adequately address the practical consequences of the addition of 50,000 new residences to the area."

Noting that Lennar’s proposal calls for a 60 percent increase in the neighborhood’s population as more than 20,000 new residents join the 33,000 people who already live in the neighborhood, Arc’s report lists alternatives that "would strengthen the economic, social and environmental benefits, while avoiding and reducing some significant impacts."

Financed by a California Wellness Foundation grant, Arc’s report stressed that it does not disagree with the stated objectives of Lennar’s development plan as laid out in Proposition G, which voters approved in June. In fact, the organization did little to voice its concerns before the election.

But the report has ruffled the feathers of city leaders, who seem hell-bent on moving the project forward and applying for funding from the federal economic stimulus package. The report calls for a focus on doing "bottom-up" ecological planning, creating real economic opportunities for the Bayview community, relocating the proposed football stadium, and removing the shipyard’s highly contaminated Parcel E2 from the project.

Noting that Lennar’s environmental impact report has yet to be completed, and that there has been no time to study Arc’s report, Citizens Advisory Committee member Scott Madison argued that delaying the endorsement would have no impact on Lennar’s home building or job creation schedule. "It’s not going to slow down anyone getting a job by even one day if we take a few days," Madison said. "But once we approve this — even a draft, even if folks are amenable to some changes — it has a certain kind of semi-concrete to it that’s difficult to chip away."

CAC member Diana Oertel voiced her objections to Lennar’s plan to divide the 170-acre Candlestick Point State Recreation Area, the Bayview’s only large open space that provides a place for recreation and an escape from urban living. "It’s not acceptable to me to see that area cut in half, gentrified, prettified, with housing going to edge of the park," Oertel said.

Project Area Committee member Leon Muhammad said there was no way the urban design plan should be endorsed "until we have addressed all the issues, until they come up with a complete plan that makes sense, not a half-baked plan."

But then PAC member Cedric Jackson asked to hear from folks in the audience who were hungry for jobs — at which point ABU folks yelled and raised hands. "I saw 80 percent of the community stand up and say, move this process forward," Jackson then asserted. "In 2000, we were 70 percent of the community, now we’re less than 50 percent. There is an out-migration and it’s not because we don’t like San Francisco, but we’re being forced out economically. So the longer you delay, the less of us will be there, especially with the economic conditions we’re facing."

Seconded by PAC member Gary Banks, Jackson moved to endorse Lennar’s draft design plan as-is, with only PAC members Muhammad and Kristine Enea, and CAC members Oertel, Madison, and Carmen Kelley dissenting.

Reached after the meeting, ARC Ecology’s Saul Bloom acknowledged that many of the problems people face in the Bayview are related to "tension over jobs." Yet he was surprised by the strong-arm tactics by proponents of a project that won’t generate jobs for at least another year.

"There’s this blind panic, this belief that if you hold up anything, you are going to stop the whole plan," Bloom told the Guardian. He hopes that now that the vote has passed, the city and Lennar will make good on verbal promises, made before and during the Jan. 28 meeting, to review Arc Ecology’s report.

"As Scott Madison pointed out, if we’d listened to these same we-have-to-vote-yes-now voices the last time around, when we were asked to endorse Phase A, we’d never have gotten the community-benefits program," Bloom said, adding that many of the current committee members are new and inexperienced. "So it’s hard for them to see through the rhetoric and pain."

"None of us want to derail the plan," continued Bloom, whose group also receives funding from the SFRA, which is overseeing the project. "What incentive do we have? Do we want to piss off the developers, contractors, and commissioners when our contract is up?"

"The city is under the impression that there is a broad base of support for this project, by virtue of Prop. G," Bloom said. "But they are unaware of the depth of dissatisfaction citywide with this project. People are saying, ‘this is insane.’<0x2009>"

Bloom believes ARC’s report raised the ire of city leaders because they feared it would fall into the wrong hands and be used in a political campaign. "But I believe the city has let the community down by not facilitating a dialogue," Bloom observed.

In addition to questions about location of the stadium, the design of the park, the bridge over Yosemite Slough, and plans to cap a radiologically impacted landfill on Parcel E2, Bloom says the hidden story in all of this is the "unstudied cumulative impacts of the all the city’s development projects on the eastern waterfront."

Together, these projects will create 30,000 new units and attract 50,000 new residents, with Lennar’s CP/HPS development creating 10,500 units, 75 percent of which are slated to sell at market-rate prices, with condos beginning at the $500,000 mark.

"Lennar can’t possibly think they can build this number of houses and sell them at these prices, at least not for the next four years," Bloom said. "The city should have had a public dialogue about the stadium options instead of pulling a plan directly off the shelf that a reliable stadium development firm did. They say they’ve studied all these other options, but where are the studies?"

Bloom notes that Prop. G was not a mandate to build a bridge over Yosemite Slough, and that the city is currently miscounting the parks and open space acreage.

"You wonder why people have no faith," Bloom said. "To whom did the city make the overwhelming case about the park, or about putting a bridge over the slough? It seems their attitude was, ‘Bayview is a crummy neighborhood, so let’s bulldoze and rebuild it,’ whereas we look at the park and say it’s a promise unfulfilled."

He believes that Arc’s recommendation to remove Parcel E2 is a no-brainer: "You are protecting public health and the environment, creating jobs that help people pay their mortgages, and you are making the property more marketable, so value increases."

With the city having publicly committed to reviewing Arc’s material, Bloom is hopeful that the city will put the results of that study into the EIR. "We are not promoting any particular outcome," Bloom said, observing that if Lennar builds 10,000 units, BVHP will no longer be a predominantly African American neighborhood. "We are trying to be the entity that raises the difficult questions that people in city have felt, but [have] been afraid to voice, because they fear those questions will be used to stop the project in its entirety."

Reached by phone, Michael Cohen of the Mayor’s Office of Economic and Workforce Development noted that Lennar’s draft urban-design plan was completed five months ago, has been vetted extensively, and now includes 32 specific modifications based on those hearings.

"These are issues that will be addressed further," Cohen said of Arc’s report. "Some are infeasible, based on extensive technical studies. But we believe that if there is a stadium, it’s in absolutely the right position and that ARC doesn’t have an alternative plan. They haven’t done the necessary studies and they haven’t presented alternative plans that actually work."

As for Arc’s contention that Parcel E2 could be dug up and hauled out, Cohen notes that the city is in a legally binding agreement with the United States Navy, which is obligated to clean up the shipyard to a standard consistent with the city’s intended use. "We don’t control what the remedy is…. [If state and federal environment regulators] say the Navy has got to dig and haul so we can safely use it as a waterfront park, then that’s what they’ll do."

Cohen insisted that the Alice Griffith public housing project will be rebuilt, whether the 49ers stay or not, and that Lennar’s project will invest $10 million to turn "a grossly underused state park into a site comparable to Crissy Field."

Are Lennar’s joint ventures a Ponzi scheme?

-
3

300px-21rampell.xlarge1.jpg
One of the greatest swindlers in American History, Charles Ponzi’s name has become synonymous with any scam that pays early investors returns from the investments of later investors.

Text by Sarah Phelan

I’ve written about Lennar’s rise from a Florida-based small home builder 55 years ago to a nationwide mega developer that was gobbling up land rights and boosting only upward growth, until about two years ago. I’ve also explored its extensive use of joint ventures and limited liability companies and what the economic downturn could mean for Lennar’s proposed developments at San Francisco’s Hunters Point Shipyard and Candlestick Point.

And last week, I asked whether Vallejo’s loss, when Lennar declared bankruptcy at Mare Island as part of a LandSource restructuring deal, could somehow have become Lennar’s gain.

And now comes news that Lennar’s stocks took a nasty nose dive last week, when Barry Minkow, who served time for stock fraud, but now apparently investigates fraud in between being a pastor in San Diego, accused Lennar of using its joint ventures like a Ponzi scheme.

Is Vallejo’s loss Lennar’s gain?

-
0

images.jpg
From Vallejo’s “Discover Vallejo” site.

Text by Sarah Phelan

“Due to the Company’s termination of its right to purchase certain LandSource assets, the Company recognized deferred profit of $101.3 million in the fourth quarter of 2008 (net of $31.8 million of write-offs of option deposits and pre-acquisition costs and other write-offs) related to the recapitalization of the Company’s LandSource joint venture in 2007.”

I’m no expert on investor relations, but it seems that the above paragraph, excerpted from Lennar’s December 18 2008 8-K report, means that by filing bankruptcy at Mare Island last summer, Lennar either spared its shareholders from further loss, or earned them a profit.

Either way, the financial calculation that lurks behind that deal feels like cold comfort to communities like San Francisco whose last pieces of undeveloped lands are caught up in Lennar’s shareholder-driven financial web.

Unsteady ground

-
0

› sarah@sfbg.com

If you’ve been tracking Lennar Corp.’s massive redevelopment project at Hunters Point Shipyard in San Francisco, then you probably know that several years ago, after the Florida-based megadeveloper won an exclusive negotiating agreement with the city, it formed a limited liability company, Lennar-BVHP, LLC, to handle operations on Parcel A of the former naval shipyard.

Parcel A is the only parcel of the shipyard that the Navy has released to the city as cleaned up and ready for development. And since "Lennar-BVHP" pops up in court filings related to the developer’s failures to properly monitor asbestos at Parcel A — failures that led Lennar to enter into a half-million dollar settlement with the local air district in July — that entity has been central to activists’ efforts to uncover the giant developer’s local business secrets.

So we noted with interest the fact that that "Lennar-BVHP" has now sold its development rights at Candlestick and the Shipyard to "HPS Development Co., LLC" — just as an environmental review is being prepared of the entire shipyard, including some of its most toxic and radiologically impaired hot spots.

The transaction took place quietly in August, but was mentioned at a Dec. 16 meeting of the San Francisco Redevelopment Commission, during which the Agency authorized a reimbursement-related amendment to the "Lennar-BVHP-HPS Development Co." acquisition agreement.

During this same Dec. 16 meeting, the SFRC also amended a contract with environmental consultants PBS&J/EIP Associates to add tasks and increase the budget so as to complete the long-awaited environmental review of the combined Hunters Point Shipyard/Candlestick development project. Until the EIR is complete and certified, nothing can move forward.

But before we get to the implications of the environmental review for Lennar’s proposed Candlestick Point/Shipyard development, it’s worth rewinding the tape to early 2008 to clarify just how, why, and when Lennar-BVHP became HPS Development — and what that transfer means.

BIG-SPENDING DEVELOPER


In the first six months of 2008 (see "Promises and reality," 04/23/08), Lennar spent more than $5 million to help ensure the victory of Proposition G, which folded the Shipyard and Candlestick Point into one huge redevelopment project, one that could include a new stadium for the 49ers.

And just as urban planners were beginning to wonder if Lennar really would be able to sell proposed luxury condominium complexes on heavily polluted Shipyard land — in the face of a nationwide real estate nosedive — the Irvine-based investment and development company Scala Real Estate Partners announced, in February 2008, that it had signed a multimillion-dollar letter of intent related to Lennar-BVHP’s development.

Founded by former executives of the Perot Group’s real estate division, Scala said it planned to invest up to $200 million — and have equal ownership interests — in the project.

The investment fulfilled a city-issued mandate that Lennar find a financial backer to guarantee its proposed multibillion-dollar project, regardless of market conditions.

Then this fall, Lennar demanded and got approval from the Redevelopment Commission for an additional 500 homes and a 7.5 percent increase in its profit margins (see "Bait and Switch," 11/05/08), as part of an Oct. 27 draft financing plan for the Candlestick Point/Shipyard proposal.

But at the time that this financing plan was negotiated, Lennar-BVHP had, in fact, already sold all of its title and interest in the project land and assigned all its rights and obligations under the related financing documents to HPS Development Co., LP, which filed a business license with the state on Aug. 28.

Records filed with the California Secretary of State show that HPS Development Co., LP, lists yet another limited liability company, CP/HPS Development Co., GP, LLC, which filed a license with the state on Dec. 11, as its general partner. Lennar Urban’s Kofi Bonner is listed as the authorized person for CP/HPS development. And HPS Development Co., LP’s office address is listed as being c/o Lennar Urban’s 49 Stevenson Street, Suite 600 address.

Land-use lawyer Sue Hestor told the Guardian that the move to form HPS Development Co., LP suggests that Lennar ran out of money.

"Forming a limited liability company means that people are just putting their money into that project," Hestor said. "It’s a way to segregate it from other projects."

TOXIC MELTDOWN


The Redevelopment Agency also renegotiated the terms of its contract with consultants PBS&J for an environmental review of the combined Hunters Point Shipyard/Candlestick Development Project Dec. 16th — and the results of that study could shed light on some very scary prospects.

According to Redevelopment Commission documents, the Agency and Planning Department staff, working with the Mayor’s Office, have dentified a number of additional tasks that are necessary to adequately complete this review.

These include the addition of an "analysis of windsurfing off Candlestick Point and evaluations of greenhouse gases and sea-level rise."

The most interesting part of the study, however, may be the analysis of geology and soils, to be prepared by Geotechnical Consultants, Inc. That report will look at the phenomenon known as liquefaction — the tendency of landfill to melt into liquid during a major earthquake.

The development zone is situated on a heavily polluted Superfund site, within a stone’s throw from an existing residential community.

As the executive summary in the Redevelopment Commission’s Dec. 16 agenda, notes: "The Project Areas are underlain predominantly by historic artificial fill with moderate to high liquefaction potential, followed by tidal flats and bay mud deposits that are typically soft, weak, and highly compressible…. These include temporary soil/slope instability caused by grading; erosion potential and increased hazards produced by potential failure of foundation support; and strong seismic groundshaking."

Just what kind of liquefaction risks are involved?

According to a February 2005 memo from Navy environmental coordinator Keith Forman to the Hunters Point Shipyard Restoration Advisory Board, the USGS Hazard Zone Map, which represents potential liquefaction risks, is intended for planning purposes and is not intended to be site specific.

"It depicts the general risk within neighborhoods and the relative risk from community to community," stated Forman.

But that report concluded that during a 7.9 earthquake, Parcel E-2, which is the landfill site where an underground fire burned for months in 2000, may have a lateral shift of 4 to 5 feet and a settlement of about 10 inches.

"This amount of lateral shift and settling could cause some small breaches in a containment remedy, but would be quickly and easily repairable," Forman added.

But the Navy and the city are proposing to cap Parcel E-2, rather than excavate and remove contaminants, which are thought to include PCBs and radionuclides — and there’s some fear that Hunters Point could be the next Hurricane Katrina when the inevitable major earthquake hits.

Members of the Health and Environment/Education Committee of the Bayview Hunters Point Project Area Committee invited Thomas L. Holzer of the US Geological Survey in Menlo Park to give a Dec. 5 beginner’s course in liquefaction — and his remarks were grounds for some serious concern.

Dressed in a gray and white tweed jacket with suede elbow patches, Holzer described how "sand becomes like liquid, capable of flowing" during an earthquake.

"More importantly, where you have groundwater contamination, fluids are discharged to the surface of the contaminated water, from a depth of 40 to 50 feet," Holzer said.

Noting that according to the USGS, a 6.7 earthquake has a 62 percent chance of hitting the region in the next 30 years, Holzer told the crowd, "If it is close enough to Hunters Point, then it’s probably enough to trigger liquefaction in susceptible materials."

In theory, then, the toxic material that the city buried under a cap could become a major hazard. "The soil liquefies, the ground gets to slosh around, and because movement isn’t always uniform, you can get cracks," he said.

As Holzer told the Guardian after the meeting, "Different people and different entities will issue different levels of risk. For some, everything has to do with profitability. So, San Francisco has some soul searching to do. Is it worth it to fast-track a project that has the potential to impact the whole city, should a major earthquake hit? Because then it would no longer be just about Bayview–Hunters Point."

Wise words, given the reality that Lennar continues to hurt financially.

"In 2009, cash generation will continue to be our top priority," Lennar president and CEO Stuart Miller said Dec. 18, as Lennar’s fourth quarter revenues showed a 41 percent decrease.

"We will convert inventory to cash and reduce both our land purchases and homebuilding starts," Miller promised, blaming falling home prices, increased foreclosures, tighter credit, and volatile equity markets for eroding consumer confidence, depressing home sales, and furthering the decline of the housing market.

Green and black

-
0

news@sfbg.com

GREEN CITY The 2008 San Francisco Green Festival, held Nov. 14-16 at the Concourse Exhibition Center, is a well-established environmentalist event that featured more 1,000 vendors and was overseen by 1,600 volunteers, all united in promoting a greener future.

Yet the event’s keynote speaker, Cornel West, along with Van Jones of the Oakland-based Green Jobs for All and San Francisco-based Muslim minister the Rev. Christopher Muhammad, all conveyed an expanded definition of environmentalism that emphasized social justice and concerns specific to African American communities.

The idea behind this fusion of black and green is that our traditional view of environmentalism, with its focus on the health of ecosystems, needs to be expanded to social systems as well. In that context, Muhammad’s long fight against Lennar Corp.’s reckless approach to developing Bayview-Hunters Point (see "Question of intent," 11/28/07), in which his Muhammad University of Islam was exposed to toxic asbestos dust, takes on new dimensions.

As the first speaker of the day Nov. 15, Muhammad’s speech was geared toward local issues of concern. Muhammad continued to shed light on the "environmental racism" taking place in the Bay Area communities of Bayview-Hunters Point, North Richmond, and West Oakland, referring to the injustice as San Francisco’s "dirty little secret." Environmental racism ranges from citing polluting industries in poor communities of color to inequities in who has access to healthy food and preventive medical care.

Muhammed brought to light the issue of San Francisco’s declining middle class and minority populations, citing rising crime rates and housing costs as culprits. He also commended the Green Festival for bringing people together to hear about an expanded scope for environmentalism. "It’s a place where people can come and be informed about issues that impact them that have historically been left out in terms of this whole [green] movement," Muhammed said.

The last scheduled speaker of the day was prominent social critic and Princeton professor Cornel West, author of the new book Hope on a Tightrope (Hay House). Muhammad has worked with West in the past and praised him as a fellow advocate for social justice: "I’ve met with him on a number of occasions and worked with him on various projects. He’s an ally."

West stressed the importance of addressing social justice by saying, "There’s a need to target [environmental racism]. You need a coalition in order to bring hard pressure to bear, so it can become more of a national issue."

In many ways, the people are showing signs of resistance to change, as with the passage of Proposition 8, which bans same-sex marriage in California, a result he calls "catastrophic." Still, he said, now, after a historic presidential election, is the moment to begin the transition. "It’s the end of an era. Thirty years of a country sleepwalking is over," West proclaimed to the cheering crowd.

He warned everyone not to believe that change will come overnight, reminding the crowd that it is ultimately up to us to push the change that we so desperately crave. "It’s not just about one messianic figure on his way to the White House," West said.

Green energy is the future of this country, West said, and one of the many ways we can foster positive change. The potential to lift up communities of color as part of the transition to new energy sources has been a big focus for Van Jones of Oakland’s Green for All, who spoke Nov. 16 about his new book, The Green Collar Economy (HarperCollins). He said we must "invent and invest our way" out of our current "gray economy" and into the new "green economy."

West also said the American people are still coming to understand the nature of the problems we face. "America has grown old, we’ve grown wealthy, but we have yet to grow up." But he ended his speech on an upbeat note, saying this age of conservation and greater awareness will create what Sly Stone called the "age of everyday people."

This year’s Green Festival exposed attendees to nontraditional environmental problems that pollute our social environment. The take-away from this new focus was that "going green" involves more than just driving a hybrid car and shifting to compact fluorescent lights — it means truly transforming our communities.

Bait and switch

-
0

> sarah@sfbg.com

The San Francisco Redevelopment Agency has endorsed a draft financing plan for Lennar’s massive proposed Hunters Point Shipyard/Candlestick Point development project, one that increases the company’s housing entitlements and profits.

The agency’s endorsement came during a hastily convened Oct. 27 special meeting, raising the eyebrows of Lennar’s critics. So did the details of the agency’s non-binding financial agreement with Lennar, which two citizens’ committees in the Bayview–Hunters Point community had jointly endorsed a week earlier.

Bayview–Hunters Point resident Francisco Da Costa claimed that "there was almost no public notice of the plan," while Leon Muhammad, who sits on the Bayview–Hunters Point Project Area Committee, fretted that some committee members have business ties and connections with Lennar.

"A group that supposedly represents the interests of the community needs to have transparency and full disclosure," stated Nation of Islam Rev. Christopher Muhammad, who has been a staunch critic of Lennar ever since the developer failed to properly monitor and control asbestos adjacent to his group’s K-12 University of Islam school.

"Lennar never intended to do anything with this land but bank it," Muhammad opined about the public land that Lennar is getting for free. "And now they are hoping to squeeze more profit out of the deal, so they can hedge to where they can make it more attractive to sell."

Alicia Schwartz of People Organized to Win Employment Rights (POWER) observed that the deal is likely being driven by Mayor Gavin Newsom’s unrequited desire to see the Olympics come to San Francisco — a dream that was squashed two years ago, Schwartz recalls, "amid a hoopla around toxicity at the shipyard."

Sup. Chris Daly, who has argued that Lennar’s recent $500,000 settlement with the Bay Area Air Quality Management District over Lennar’s asbestos violations was "too small and poorly handled," said he wasn’t surprised by the latest deal: "That Lennar wants to pull a fast one is not news."

But with the financing deal likely headed for the full Board of Supervisors this month, Lennar’s critics are worried that the city is being rushed into a deal that has already changed since voters approved Proposition G in June, supporting the vague outlines of Lennar’s project.

They note that while Prop. G specified that the project would create "between 8,500 and 10,000 homes" in the depressed southeast sector, the financing deal that Redevelopment endorsed last week specifies 10,500 homes —and a demand that the agency and the city cooperate to help increase Lennar’s annual rate of return.

Stephen Maduli-Williams, the agency’s deputy executive director, told the Guardian that it was always the agency’s intention to finalize Lennar’s draft financing plan by the end of 2008. Asked if Lennar increased the number of proposed housing units by reducing unit size or increasing building height, Maduli-Williams told us, "They did it by finding a way to squeeze more units into the existing space. They redesigned one of the roads."

"Things are probably going to change again in the next year or two," Maduli-Williams said. "This is a living document. And overall, it is a really nice real estate deal."

Yet critics of Lennar are openly wondering whether it’s nice for the beleaguered company, which had rapidly plummeting stock value even before the recent real estate meltdown, or nice for the city. Maduli-Williams said the deal works for all parties.

"We have strong financial partners," he said. "Any investors that look at the deal know that is it really solid. It includes mostly $600,000 homes, which are cheap by San Francisco standards. And we are not looking to break ground for another three years, by which time the economy, hopefully, will be in good shape."

Maduli-Williams also observed that despite nationwide housing woes, San Francisco remains "one of two or three top destination spots where there is only so much land left and where folks have very high incomes."

But the health of the San Francisco real estate market (compared to the rest of the nation) combined with Lennar’s ongoing financial woes, including a June 8 bankruptcy at Mare Island, is precisely why some folks are questioning Lennar’s increased profit demands. But Maduli-Williams said, "San Francisco cannot be compared to Mare Island."

According to the draft financing deal (which is non-binding), Lennar, the city, and the agency "will work cooperatively to reduce risks and uncertainties" and "find additional efficiencies and values," to achieve Lennar’s proposed 22.5 percent annual profit margin.

As Maduli-Williams explained, if the developer puts up $800 million in equity and wants a 22 percent return, it would have to get $1.2 billion in land sales. "And just like any developer, they want to get the highest return possible," he said, adding that the project’s proposed community benefits are "hard wired into the deal" and thus are "not threatened" by Lennar’s proposed target return increase.

Lennar’s proposal, which represents a 7.5 percent increase over current project projections, has also received validation from CBRE Consulting, which is a subsidiary of CB Richard Ellis — a global real estate firm headed by Sen. Dianne Feinstein’s husband, Richard Blum.

In an Oct. 15, 2008 memo (coincidentally written the day President Bush announced a partial nationalization of the US banking system) to Michael Cohen, who heads the Mayor’s Office of Economic and Workforce Development, CBRE’s Mary Smitheram-Sheldon and Thomas Jirovsky observed that, "Based on Consultants’ extensive experience in evaluating large scale mixed-use developments, including military base reuse plans, we are of the opinion that the proposed 22.5 percent per annum target return …is reasonable."

Earlier this year, as Lennar spent $5 million to support Prop. G, CBRE declared that 50 percent affordability in Lennar’s proposed mixed-use development at the shipyard, as was being recommended in Daly’s Prop. F, was "not financially feasible."

At the city’s request, CBRE analyzed Prop. F and concluded in a memo to Cohen that it would reduce Lennar’s revenue by at least $1.1 billion. Reached by phone this week, Jivorsky acknowledged that his firm has done work for different developers around the country for years, including Lennar.

"But we are not working on anything for Lennar in San Francisco," Jivorsky told the Guardian. "Our client is the city of San Francisco and we take our job very seriously. We would never make recommendations that we didn’t believe were in the city’s best interests."

Meanwhile, Cohen told the Guardian that the strain for real estate capital is likely going to push the rate of return demand up even more. Noting that the city agreed to 25 percent returns at Lennar’s previous Treasure Island and Hunters Point Shipyard deals, Cohen said, "Real estate is considered to be a greater risk than it was six months ago, even in San Francisco. So, it’s not so much that we have to negotiate this as have to understand what is required for private capital to invest."

Cohen believes that when the construction plans — which currently have few details spelled out — get more detailed, they will help increase the project’s rate of return. "Which is why," Cohen added, "the developer’s partners are willing to spend a boatload of money."

On Aug. 19, the Redevelopment Agency approved the addition of Kimco Developers and MACTEC Development Corporation as Lennar BVHP’s retail and infrastructure partners, and Scala Real Estate Partners, Hillwood Development, and Estein Associates USA Ltd. as Lennar BVHP’s equity partners.

Cohen also hopes that the 49ers’ intentions towards San Francisco will be resolved by November 2009, when Lennar hopes to enter into an agreement with the football team. The 49ers continue to pursue plans to relocate to Santa Clara, and have not signaled any desire to remain here.

To date, Lennar’s draft financing plan includes an agreement that the developer will contribute $100 million in cash toward construction of a new 49ers stadium, and that the city will enter a long-term $1 ground lease with the 49ers for a 17.4-acre Hunters Point Shipyard site.

Meanwhile, disgruntled community advocates claim that since January, when Feinstein, House Speaker Nancy Pelosi and Mayor Gavin Newsom announced $82 million in federal funding for the cleanup of the Hunters Point Shipyard site, those funds have gone primarily to cleaning up the potential 49ers site.

Nix Lennar’s higher profit deal

-
0

EDITORIAL The troubled homebuilder that wants to develop the Hunters Point Shipyard and Candlestick Point has come back to the city asking for a higher profit level, more market-rate housing, more retail, and more office space. In essence, Lennar Corp. wants to change the deal voters approved in June. The supervisors should give this a hard look, hold hearings, and check the numbers, because the entire project is looking more shaky and dubious by the day.

Lennar is one of the nation’s largest residential development companies, but it’s been walloped by the drop in the housing market. A Lennar project at Mare Island recently went bust and is being auctioned off. The company’s stock has tanked. And some wonder if it will be able to get the financing necessary for a multibillion dollar project in San Francisco.

But Lennar is not only moving forward — it’s demanding more. In fact, as Sarah Phelan reports on page 16, the Redevelopment Agency just signed a deal with Lennar agreeing that the city and the project sponsor "will work cooperatively to reduce risks and uncertainties" and "find additional efficiencies and values" to achieve the developer’s proposed 22.5 percent annual return target.

That 22.5 percent — which is far more profit than many San Francisco businesses ever make and seems almost obscene in this economic climate — is up 7.5 percent from when the deal was first signed. And remember, Lennar gets the land — public land — essentially free.

Of course, a consulting firm the city hired to evaluate the deal finds that perfectly reasonable. The firm, CBRE Consulting, is a subsidiary of CB Richard Ellis, a global real estate firm headed by Richard Blum, who is married to Sen. Dianne Feinstein, a big supporter of the Lennar plan.

The original plan called for 8,500 to 10,000 housing units; that’s now up to 10,500. There’s no significant increase in community amenities, affordable housing, or infrastructure payments.

If this sounds a little funky, it is. From the start, Lennar has been playing around with the numbers and promising more than it may be able to deliver. And if the project starts to go belly up before it’s finished, Lennar will walk away and leave the city with the mess.

We’ve always been a bit dubious about the way the Redevelopment Agency turns to a single "master developer" and gives that private outfit exclusive rights to build on a large piece of land. The deal always seems to be a lot better for the builder than it is for the city.

And this one was bad from the start. At the most, Lennar would offer 25 percent of the units at below-market rates; that’s less than half the amount of affordable housing mandated in the city’s general plan. Much of the land on the site is toxic, and Lennar has been steeply fined by the air quality board for failing to control asbestos dust. The whole concept of a suburban-style community of luxury condos with special freeway access in southeastern San Francisco is inappropriate, if not bizarre.

But voters approved the program after Lennar spent millions on a ballot measure campaign, so the city has to continue working with the developer. But there’s nothing that says the supervisors have to sign off on changes in the deal that don’t serve San Francisco’s interests.

The board ought to demand, at the very least, that Lennar devote some of its higher profit margin to increasing affordable housing — and that the funding for community amenities should be set aside before the builders break ground on the luxury condos. Ideally this entire thing should go back to the drawing board. But short of that, any changes need to benefit the city, not the private developer.

Anniversary Issue: First, do no harm

-
0

> sarah@sfbg.com

Mayor Gavin Newsom announced last week that San Francisco is "on pace" to build a historic number of homes in a five-year period.

"Despite the housing crisis facing the nation, San Francisco is bucking the trends and creating a record number of homes," Newsom said. "Once again, San Francisco is leading the way."

But where?

Newsom notes that his housing-development plans will triple what San Francisco produced in the ’90s, and double the past decade’s housing production. He claims that he has increased the city’s production of affordable housing for low- and very-low-income households to the highest levels ever.

But he doesn’t point out that most people who work in San Francisco won’t be able to afford the 54,000 housing units coming down the planning pipeline.

The truth is that, under Newsom’s current plans, San Francisco is on pace to expand its role as Silicon Valley’s bedroom community, further displace its lower- and middle-income workers, and thereby increase the city’s carbon footprint. All in the supposed name of combating global warming.

So, what can we do to create a truly sustainable land-use plan for San Francisco?

•<\!s> Vote Yes on Prop. B

In an Oct. 16 San Francisco Chronicle article, Newsom tried to criticize the Board of Supervisors for not redirecting more money to affordable housing, and for placing an affordable housing set-aside on the ballot.

"There’s nothing stopping the Board of Supervisors from redirecting money for more affordable housing," Newsom claimed. "Why didn’t they redirect money to affordable housing this year if they care so much about it?"

Ah, but they did. Newsom refused to spend the $33 million that a veto-proof majority of the Board appropriated for affordable housing last year. Which is why eight supervisors placed Prop. B, an annual budget allocation for the next 15 years, on the Nov. 2008 ballot.

•<\!s> Radically redirect sprawl

The San Francisco Planning and Urban Research Association’s executive director, Gabriel Metcalf, notes that existing Northern California cities —San Francisco, Oakland, San Jose — already have street, sewer, and transit grids, and mixed-use development in place.

"So we don’t have to allow one more inch of suburban sprawl. We could channel 100 percent of regional growth into cities. Instead, we hold workshops and ask ‘How much growth can we accommodate?‘ The answer is none, because no one likes to change."

Metcalf said he believes people should be able to work where they want, provided that it’s reachable by public transit.

"What’s wrong with taking BART to Oakland and Berkeley, or Caltrain to San Jose?" Metcalf said.

•<\!s> Don’t do dumbass growth

Housing activist and Prop. B supporter Calvin Welch rails at what he describes as "the perversion of smart growth in local planning circles."

The essence of smart growth is that you cut down the distance between where people work and live, Welch explains.

"But that makes the assumption that the price of the housing you build along transit corridors is affordable to the workforce that you want to get onto public transit," Welch adds. "If it’s not, it’s unlikely they’ll get out of their cars. Worse, if you produce housing that is only affordable to the community that works in Silicon Valley, you create a big problem in reverse, a regional transit shortage. Because you are building housing for folks who work in a place that is not connected to San Francisco by public transit."

Welch says the city also needs to invest more in transit infrastructure.

Pointing to Market-Octavia and the Eastern Neighborhoods, Welch notes that while the City Planning Department is calling for increased density there, Muni is proposing service cuts.

"This is beyond bizarre," Welch said. "It will result in dramatic increases in density in areas that are poorly served by transit. That’s the dumbest kind of growth."

Welch says sustainable land use has local employment opportunities at its heart.

Noting that 70 percent of residents worked in San Francisco 20 years ago, Welch says that only a little over 50 percent of local jobs are held by San Franciscans today.

"Most local jobs are held by people who live outside San Francisco, and most San Franciscans have to go elsewhere to find work. It’s environmentally catastrophic."

•<\!s> Protect endangered communities

Earlier this year, members of a mayoral task force reported that San Francisco is losing its black population faster than any other large US city. That decline will continue, the task force warned, unless immediate steps are taken.

Ironically, the task force’s findings weren’t made public until after voters green-lighted Lennar’s plan to develop 10,000 (predominantly luxury) units in Bayview-Hunters Point, one of the last African American communities in town.

San Francisco Redevelopment Agency Executive Director Fred Blackwell has since recommended expanding his agency’s certificate of preference program to give people displaced by redevelopment access to all of the city’s affordable housing programs, an idea that the Board of Supervisors gave its initial nod to in early October. But that’s just a Band-Aid.

And community leader and Nation of Islam Minister Christopher Muhammad has suggested creating "endangered community zones" — places where residents are protected from displacement — in Bayview-Hunters Point and the Western Addition.

"It’s revolutionary, but doable," Muhammad said at the out-migration task force hearing.

•<\!s> Don’t build car-oriented developments

BART director and Livable City executive Tom Radulovich predicts a silver lining in the current economic crisis: "The city will probably lose Lennar."

He’s talking about two million square feet of office space and 6,000 square feet of retail space that Lennar Corp., the financially troubled developer, is proposing in Southeast San Francisco.

"We should not be building an automobile-oriented office park in the Bayview," Radulovich said. "Well-meaning folks in the Planning Department are saying we need walkable cities, but Michael Cohen in the Mayor’s Office is planning an Orange County-style sprawl that will undo any good we do elsewhere. This is the Jekyll and Hyde of city planning."

•<\!s> Buy housing

Ted Gullicksen at the San Francisco Tenants Union says that since land in San Francisco only increases in value, the city should buy up apartment buildings and turn them into co-ops and land-trust housing.

"The city should try to get as much housing off-market as possible, grab it now, while it’s coming up for sale, especially foreclosed properties," Gullicksen said. "That’s way quicker than trying to build, which takes years. And by retaining ownership, the city also retains control over what happens to the land."

•<\!s> Work with nonprofit developers

Gullicksen said that the city should work with small nonprofits, and not big master developers, to create interesting, diverse neighborhoods.

Local architect David Baker says nonprofits are more likely to build affordable housing than private developers, even when the city mandates that a certain percentage of new housing must be sold below market rate.

"Thanks to the market crash, very little market rate housing is going to be built in the next five years, which means almost no inclusionary," Baker explains. "During a housing boom, you can jack up that percentage rate to 15 percent, or 20 percent, but then the boom crashes, and nothing gets built."

Gullicksen says the good news is that planners are beginning to think about how to create walkable, vibrant, and safe cities.

"They are thinking about pedestrian-oriented entrances and transparent storefronts, about hiding parking and leaving no blank walls on ground floors. Corner stores, which are prohibited in most neighborhoods, are a great amenity.

"San Francisco needs to figure out where it can put housing without destroying existing neighborhoods, or encroaching on lands appropriate for jobs."

•<\!s> Design whole neighborhoods

Jim Meko, chair of the SoMa Leadership Council, was part of a community planning task force for the Western SoMa neighborhood. He told us that one of the most important things his group did was think about development and preservation in a holistic way.

"WSOMA’s idea is to plan a whole neighborhood, rather than simply re-zoning an area, which is how the Eastern Neighborhoods plan started," Meko said. "Re-zoning translates into figuring out how many units you can build and how many jobs you will lose. That’s a failed approach. It’s not smart growth. If you displace jobs, the economic vitality goes elsewhere, and people have to leave their neighborhood to find parks, recreational facilities and schools."

Meko noted that "housing has become an international investment. It’s why people from all around the world are snapping up condos along the eastern waterfront. But they are not building a neighborhood."

San Francisco, Meko said, "has the worst record of any US city when it comes to setting aside space for jobs in the service and light industrial sector. But those are exactly the kinds of jobs we need. The Financial District needs people to clean their buildings, and I need people to repair my printing press. But I don’t like having to pay them $165 an hour travel time."

•<\!s> Practice low-impact development

Baker recommends that the city stop allowing air-conditioned offices.

"We’ve got great weather, we need to retrofit buildings with openable windows," he said. "We should stop analyzing the environmental impact of our buildings based on national tables. This stops us from making more pedestrian friendly streets. And people should have to pay a carbon fee to build a parking space."

A citywide green building ordinance goes into effect Nov. 3 and new storm water provisions follow in January, according to the SFPUC’s Rosey Jencks.

This greening impetus comes in response to San Francisco’s uniquely inconvenient truth: surrounded by rising seas on three sides, the city has a combined sewer system. That means that the more we green our city, the more we slow down the rate at which runoff mixes with sewage, the more we reduce the risk of floods and overflows, and the more we reduce the rate at which we’ll have to pump SoMa, as rising seas threaten to inundate our sewage system.

The SFPUC also appears committed to replacing ten seismically challenged and stinky digesters at its southeast plant.

•<\!s> Strictly control the type of new housing

Marc Salomon, who served with Meko on the task force, told us he thinks the city needs to create a "boom-proof" development plan, "a Prop. M for housing." That’s a reference to the landmark 1986 measure that strictly limited new commercial office development and forced developers to compete for permits by offering amenities to the city.

The city’s General Plan currently mandates that roughly two-thirds of all new housing be affordable — but the city’s nowhere near that goal. And building a city where the vast majority of the population is rich is almost the definition of unsustainability.

"Too much construction is not sustainable at any one time, nor is too much uniform development," Salomon said. "If we see too many banks, coffee shops or dot-com offices coming in, we need hearings. We need to adopt tools now, so can stop and get things under control next time one of these waves hits. And since infrastructure and city services are in the economic hole, we need to make sure that new development pays for itself." *

1...567...10Page 6 of 10

48hills.org is the official publication of the non-profit San Francisco Progressive Media Center.
Contact us: info@48hills.org