Mayor Ed Lee

Why Mirkarimi pled guilty

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Sheriff Ross Mirkarimi didn’t want to cop a plea. He knew the damage it  would cause to his political career and he was prepared to fight the charges. But when it became clear that he was losing every single motion around the admissibility of evidence, even when he and his attorney, Lidia Stiglich, were convinced they were right on the merits — and when it was clear from juror surveys that virtually everyone in town had read the salacious press accounts and it was impossible to find a neutral jury, he decided he had no choice.

That’s what people close to the sheriff told me shortly after Mirkarimi unexpectedly agreed to plead guilty to misdemeanor false imprisonment. It may seem an odd plea for a sheriff, but it was a way to get rid of the more serious charges. A domestic violence conviction would seriously interfere with Mirkarimi’s job — among other things, nobody with a DV rap can possess a gun — not that the sheriff of San Francisco needs to carry a gun, but in the law-enforcement world, domestic violence is (properly) taken very seriously.

The calls for the sheriff to resign have already started. An informal sfgate poll on the subject is already posted.

I talked to Mirkarimi shortly after he appeared in court, and he told me he has no plans to step down. “I wanted to resolve this matter and move forward with the important work of the department. And I terribly miss my family and I want to be re-united.”

That’s going to be tough — someone will probably try to mount a recall effort and every single detail that has come out so far in the news media will be repeated if and when he runs for re-election in three years. In politics, that’s a long time away — but these kinds of charges never disappear.

People close to the sheriff told me that that Mirkarimi was concerned that he couldn’t find a jury that hadn’t already convicted him in their minds. “The questionnaires were very clear,” one ally said. “Nearly everyone had read the newspapers and already had some kind of a negative opinion.”

Among other things, his friends said, Mirkarimi was concerned that  a former girlfriend, Christina Marie Flores, would be allowed to testify against him — despite what his team considered serious questions about her credibility.

Flores used to be my next-door neighbor and I’ve always been friendly with her. I was on her TV show once. But the news media accounts have essentially ignored a detail that was in one of Mirkarimi’s defense motions:  After they broke up, Flores sent Mirkarimi a hate poem in which she not-terribly subtly threatened to damage his political career.

I’m not going to quote all of the emails cited in the brief (breakup+email=bad news); suffice to say that until December, 2008, Flores was clearly in love with Mirkarimi and sending him passionate notes asking him to reconsider what was obviously a move by Mirkarimi to end the relationship. (And yeah, there were nude pictures that Mirkarimi was supposed to “enjoy when you miss me.” Gak.)

On Jan 2, 2009, the brief states, “having understood that the relationship with Mirkarimi was over, Flores sent Mirkarimi a lengthy hate poem. In startling contrast to her prior e-mails to Mirkarimi, Flores now called Mirkarami `the worst type of waste of air’ and said that there ‘are smarter and more handsome men BY FAR.’

“Flores ended the poem with the following:

So as 2009 rolls in and you roll out
I remember what my life was all about
Surrounded by so many of my friends
I am rich and happy with how my story ends

Except one thing.

I have never had the distinct pleasure
Of meeting such an idiot of such great measure
That freely let me know of things
That could unwind plans of what his political future brings

Yes, I do know those, some of whom you hate.
Who could have a say in your fate
And long friendships with some that you despise
That after the fact have opened my eyes.

What to do with the ball in my court …
Let us see what happens.”

Don’t know who “some of whom you hate” means, but Mirkarimi has had a contentious relationship the San Francisco Police Department. Flores is the daughter of a police officer and the ex-wife of another officer, who happens to be a domestic violence inspector.

Three years after that poem was written, when she heard about the DV allegations against Mirkarimi, she filed a police report alleging similar behavior. She also talked to two newspapers, the Chronicle and SF Weekly.

In her statement to the district attorney’s office, the brief states, “Flores conceded that she wanted to go public for personal reasons: ‘He said that that woman from Venuzuela (Lopez) knew about our relationship and it didn’t matter to her … which I think is a lie. And that’s probably why I’m here because I don’t think she knew.’”

Doesn’t mean that anything she claims about Mirkarimi was untrue. A woman who is mad at her ex-boyfriend for whatever still has every right to complain about domestic violence, even later; if she was physically abused, then what happened at other points in the relationship doesn’t change anything.
But it’s interesting that the daily papers, which reported freely on the prosecution’s side of this story, haven’t mentioned the equally fascinating (and tawdry) allegations in the defense brief.

It’s the kind of thing that, Mirkarimi’s allies say, made it hard to find a fair jury.

Judges these days go out of their way not to exclude evidence in DV cases, and the fact that this was such a high-profile political case made that even more dramatic. Ruling that the videotape of Mirkarimi’s wife crying and showing a bruise and the testimony of an ex-girlfriend who said he abused her inadmissible would most likely have forced the district attorney to drop the charges. Very few judges would want to take that risk.

So now Mirkarimi has to deal with the fallout, and it raises the question: Can the progressive community accept and once again support a sheriff who has all of this baggage? Is there anything Mirkarimi can do to convince his allies and the voters that either (a) the charges were overblown or (b) he’s learned from this, is going into counseling, is a changed person, and can seek political redemption?

The city forgave Gavin Newsom when he had sex with his close friend’s wife (after he allegedly went into treatment for alcohol abuse) and forgave Willie Brown when he impregnated a campaign fundraiser (because nobody cares about that sort of thing these days), but domestic violence is a very different deal. As it should be.

Any yet, some people are clearly willing to give him a chance. Alix Rosenthal, a longtime leader on women’s issues who supported Mirkarimi for sheriff, told me that she doesn’t think he should step down.

“I think this whole thing has been blown way out of proportion,” she said.

Mirkarimi, she noted, needs to publicly go into counseling with his wife (which he can’t do until the stay-away order is lifted — seriously, right now he can’t even go to counseling with his wife) and he needs to make it clear that he’s addressing anger-management issues. But she thinks he can still play a role in the progressive community.

There will be other progressives who disagree, and Mirkarimi will have to win them over. And all the while, the supporters of Chris Cunnie, the former Police Officers Association president who lost to Mirkarimi in the fall, aren’t going to let this go away quietly.

UPDATE: The Chron is already calling on Mayor Ed Lee to “investigate” the sheriff for misconduct. Investigate? As if there’s anything that hasn’t already become public? The real message is that the Chron wants Lee to try to get rid of Mirkarimi. And so it begins.

Olague explains her support for RCV repeal measure

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  Sup. Christina Olague has drawn ire from progressive circles over her pivotal co-sponsorship of a proposed charter amendment that aims to eliminate Ranked Choice Voting in all citywide races. It takes six members of the Board of Supervisors to place the repeal measure on the November ballot and she is the sixth co-sponsor.

Olague has long ties to the progressive community and was appointed by Mayor Ed Lee to the District 5 seat, one of the city’s most progressive, in January after Ross Mirkarimi was elected Sheriff. This week, she joined Sean Elsbernd, Carmen Chu, Scott Wiener, and Malia Cohen – all considered moderate/conservative supervisors – in supporting Sup. Mark Farrell’s proposal to replace RCV with runoff elections for the mayor’s race and other citywide offices.

“To me, this isn’t a progressive or moderate issue. This is a democratic one here in San Francisco,” Farrell said during Tuesday’s Board of Supervisors meeting, where he introduced the measure, which will have a hearing next month. “Ranked Choice Voting has continued to confuse and disenfranchise voters here for over a decade and, in my opinion, it’s time to restore our voting system to the one person, one vote rule.”

Farrell’s sentiments mirror a similar line trumpeted by the San Francisco Chamber of Commerce, a supporter of runoff elections and longtime opponent of RCV. A recent poll commissioned by the Chamber, which claims 58 percent of respondents prefer runoff elections, has been discounted as biased and based on misleading statements. Farrell, who was elected to the District 2 seat in November using RCV, said he would have prefers to eliminate RCV altogether in San Francisco but said, “This is a significant step in the right direction.” A proposed ballot measure by Farrell and Elsbernd to eliminate RCV was rejected by the Board of Supervisors last month.

Steven Hill, who helped crafted the city’s voter-approved RCV system, criticized the move to repeal it: “Critics of RCV have long maintained that voters are confused and even disenfranchised and yet they have offered no credible evidence to support these claims. In fact, the evidence shows just the opposite, that voters understand what they have to do with RCV, which is to rank their ballots, 1, 2, 3, and they are using their ranked ballots effectively.”

In an interview conducted as she was departing the Westbay Community Center on Thursday, Olague initially rebuffed our request to discuss her support for Farrell’s amendment (just as she had an earlier request by the Guardian), but she ultimately relented.

Here’s what she had to say:

Olague: “What it is is that it begins a conversation.  There was talk of eliminating RCV altogether, which I certainly don’t support.  There was talk from a lot of different corners, not just moderate circles, but progressive circles as well, that maybe we need to examine it and see how has it or has it not really been – has it really helped us reach our goals in the way that we had originally intended that it would.”

SFBG: What were those goals?

Olague: “I think it was to try to make sure that more progressives were elected… and make it easier for people who had lesser means to prevail… So I think maybe it is time to reflect on that a little bit.”

SFBG: What parts of RCV don’t you like or don’t support?

Olague: “Well, I think it’s just time to have a conversation about it.  I’m not even sure that I’m against it, per se. When I signed on to it, I believed it was looking at keeping some of the citywide races, where there are fewer numbers of candidates engaged, to reverting back to a runoff, and keeping the races where we have a diversity of candidates and numerous candidates, which are the district races, as they are – which is ranked choice voting.”

“Now there’s some people who say what we need to do is, well, maybe revisit that and maybe just, rather than have it apply to all citywide races, maybe it should just apply to the mayor’s race.”

“So I think there needs to be a conversation and there needs to be a reflection on its effectiveness.  I think that’s what [Sup. John] Avalos and even [Sup. David] Campos were thinking that there needs to be more education – and I do think there needs to be more education as it relates to RCV.”

SFBG: Voters don’t seem to be confused about filling out an RCV ballot, but maybe there’s confusion about how votes are tallied and candidates are eliminated.  It would appear that there’s a myth being spread that voters are confused about filling in a RCV ballot, but that doesn’t appear to be the case…

Olague: “Do you know that?  I think when you talk to people out there on either side of spectrum, politically, I think there’s still a lot of – I don’t think that people have necessarily concluded that this is the most effective way of achieving certain goals.  But, you know, I think it starts a conversation and it may end up that the voters decide, you know, let’s just leave it the way it is, we’re happy with it.”

SFBG: And how would you feel if RCV is completely eliminated?

Olague: “Well it’s not going to be eliminated because there’s nothing in the charter amendment asking that RCV be eliminated.  What I was concerned about was that there was a push to eliminate it altogether, which I don’t support.  What this does, I figured I’ll meet them halfway because I can’t support a complete repeal of RCV and currently the way this charter amendment is drafted, what is does is it keeps RCV in the District elections.  That stays the same, and the citywide elections would be reverting back to a runoff, so it goes to a more citywide for a runoff, ranked choice voting for District [elections]. There is an argument to be made for why that should be the case.”

SFBG: Wouldn’t this eliminate a diversity of candidates if there were a repeal of RCV in citywide races?

Olague: “So let’s have the debate and people may decide, you know, if it’s not a good idea. People may decide they want to push to amend the charter amendment as it is before us.  Some people are thinking it should just apply to the mayor’s race and not other citywide races like public defender and others. So maybe there’ll be amendments to the charter amendment before it even hits the ballot.”

SFBG: Why do you think some people are up in arms over your support on this?

Olague: “I guess, you know, I mean – I just think that everyone is going to sit around and wait for something, right?  They’re, sort of, laying in wait, right? So it’s just what it is, you know – it’s like people are going to agree with me sometimes, they’re not going to agree with me other times.  There are some things that I am doing that is progressive, there are some things people will perceive as not being progressive.”

SFBG: Did you come to this decision by yourself, or was there any influence or pressure from others to vote the way you did on this?

Olague: “No.  I just think it’s funny because it’s like I don’t really succumb to pressure.  I’m willing to start the conversation at some kind of a compromise.  To me, this is as close to a compromise as we’re going to get and then it can start the conversation. So I think the conversation will start and people can assume all kinds of things, and they will.”

SFBG: So you voted in good conscience?  You didn’t have any doubts about your vote?

Olague: “I vote in good conscience, but sometimes you have to go with a compromise.  It’s not completely what you want and it might not be completely what you don’t want, but the alternative might be something that is completely unacceptable, which could be the complete elimination of RCV.”

 

A version of this story also appears on Fog City Journal, which is run by Luke Thomas.

SFPD-FBI spying restrictions could face mayoral veto

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If the San Francisco Police Department isn’t working with the FBI to secretly spy on law-abiding local residents – as a secret document released last year indicated they had the authority to do – then why are Police Chief Greg Suhr, Mayor Ed Lee, and others opposing legislation that would ban such surveillance?

That’s the question that longtime police policy expert John Crew of the American Civil Liberties Union of Northern California is asking as he tries to get two more members of the Board of Supervisors to join the six current co-sponsors of the legislation, which the board will consider on Tuesday, in anticipation of having to override a mayoral veto.

“What’s the harm?” Crew told us. “There’s something that doesn’t add up here.”

As we reported at the time, the ACLU last year obtained a 2007 memorandum-of-understanding between the SFPD and the FBI establishing procedures for the Joint Terrorism Task Force, in which SFPD personnel would be under the command of the FBI, circumventing local and state restrictions on domestic surveillance of people who haven’t committed any crimes.

After the ensuring controversy and under pressure from members of the Police Commission, Police Chief Greg Suhr issued Bureau Order #2011-07 to clarify that SFPD personnel are bound by local and state privacy protections. “With this Bureau Order, the language of the 2007 Memorandum of Understanding no longer applies and SFPD personnel are bound by the provisions of the 2011 Order,” SFPD Public Information Officer Albie Esparza told us last month.

Suhr and Lee have each made public statements indicating that the new legislation – developed by the ACLU and carried by Sup. Jane Kim with five progressive supervisors as co-sponsors – is redundant and unnecessary. But Crew and the ACLU made a Sunshine Ordinance request for any modifications to the MOU or communications with the FBI indicating that SFPD’s contractual obligations no longer apply, and there were no such documents.

“When you talk about civil rights, you put it in writing,” Crew said. “This really doesn’t add up. We’re getting conflicting explanations. And the bottom line is this problem has been solved in Portland.”

When a similar issue arose in Portland, Oregon, civil libertarians pressured the city to withdraw from its MOU with the FBI and create a new one that includes restrictions on the surveillance of people who were not suspected of any crimes, but who may have been subjected to FBI attention because they were Muslims or because of their political beliefs. And Crew said it didn’t harm the relationship of the two policing agencies.

At an emotional hearing last week before the Public Safety Committee, a long string of representatives from groups that have been singled out for FBI surveillance that violated protections under the California Constitution – Muslims, anarchists, anti-war activists, Occupy demonstrators, immigrant groups, environmentalists, animal rights activists, etc. – urged supervisors to stand up for them. The legislation has a long and diverse list of organizational supporters.

Sup. Scott Wiener – one of two supervisors that Crew is hoping to win over – told us, “I agree that local surveillance rules should govern. But I’m not convinced that we need this legislation.”

Wiener said he still hasn’t made up his mind, and he plans to speak with Portland’s mayor before Tuesday’s hearing.

So why wouldn’t he support legislation that simply made his position official city policy? Wiener said he’s wary of telling SFPD how to do law enforcement and with “reducing the ability of the department to be flexible in the future.”

Crew said representatives of the Mayor’s Office, which did not respond to our calls for comment, have told him that Lee would defer to the SFPD’s determination of whether to sign the legislation. “That’s a pretty stunning claim,” Crew said, “which does not bode well in terms of reasonable civilian control of the SFPD for the next few years. I sure hope they back off that.”

Kim, who has a good relationship with the Mayor’s Office, also did not return calls for comment. But Crew was incredulous about why anyone who believes in civil liberties would oppose this legislation, telling us, “This is not a radical stand here.”

The struggle for housing money at City Hall

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It’s barely March, and the next election isn’t until June and that’s just primaries and the Democratic County Central Committee, but we just started getting political mail anyway. It’s a piece from the Board of Realtors, denouncing plans for an increase in the real-estate transfer tax “to provide subsidized housing to people who want to live in San Francisco but don’t have the means to do so.” Mayor Ed Lee, the flier says, is backing this “outrageous” plan.

What, exactly, is going on here?

Well, for starters, the mayor is distinctly NOT pushing for an increase in the transfer tax, not right now, anyway. What he is doing is meeting with housing advocates and legislators and trying to come up with a stable source of funding for affordable housing — yes, for families and low-income people, many of them longtime residents who are being forced out by Ellis Act evictions, others of them people who work in the city and would rather live here than commute from Pinole, which everyone with any sense agrees is a good idea.

The problem: For years, San Francisco used Redevelopment Agency tax-increment money for affordable housing. Now that money’s gone, since the governor abolished redevelopment agencies. Actually, the money’s not gone, technically — the increased tax revenue from redevelopment project areas still exists. It’s just that the state is now taking a bunch of it, and other taxing entities like BART and the school district get some of it, and now it’s impossible to send bonds and borrow money against it. So what was once tens of millions for affordable housing is now a few million.

“We might have $20 million a year in the general fund,” said housing activist Peter Cohen. “But that’s compared to the $40 million or $50 million we had in the past, and it still leaves housing short.”

Lee has promised repeatedly to fix that problem, to find a way to make sure that there’s enough money that the nonprofits who build housing can plan and develop for the long term. Right now, it’s being called a Housing Trust Fund, but nobody knows exactly how it will actually work.

Remember: The city’s own General Plan states that 60 percent of all new housing should be available at below market rate. All of the regional growth projections say that San Francisco needs to build more housing — for its own workforce, not just for the rich. (And the local workforce, for all the tech jobs the mayor keeps hyping, is still mostly public-sector workers and service employees, most of whom can’t possibly afford the soaring rents and housing prices in this city.)

A lot of the existing affordable housing money comes from the city’s inclusionary housing law, which mandates that market-rate developers set aside a percentage of their new units (usually 20 percent) for lower-income people. Most developers eschew allowing poor people into their condo enclaves, so they pay a fee into a city fund instead.
But if we’re aiming for 60 percent, and we’re getting (at most) 20 percent, we’re a long ways off. Oh, and the developers are starting to argue that the 20 percent rule is too onerous and they can’t build enough condos for the rich if they have to throw scraps to the poor and middle-class, too.

And some supervisors are squawking about building more housing for the middle class, and right now in a zero-sum game, that means less for low-income people.
This all adds up to a mess for the mayor, and it’s no wonder some advocates are talking about raising the transfer tax — which, after all, is paid by the seller of a residential or commercial building, and while there are absolutely some houses underwater in San Francisco (and there should probably be an exemption in the tax for that situation), overall home prices are rising again, and many, probably most home sales these days involve substantial profit. It’s not a perfect tax, but it’s a tax on a class that is (generally) better off to support a class that is typically not so well off.

Here’s the problem: If the mayor supports a transfer tax, and that’s part of the final package, the realtors and the commericial building owners will no doubt put huge amounts of money into defeating it. That would mean Lee would have to raise a bucket of money and campaign really hard to pass it. But Lee’s demonstrated that he’s not the fighting type; he wants something that nobody serious will oppose. Which is why my sources at City Hall say that he wants the transfer tax off the table.

That could mean that the Housing Trust Fund will be a basic set-aside, a budgetary mandate that a certain amount of money go into a reliable fund for housing. That’s one of the city’s most pressing needs (really, if this becomes a city of just the rich, even those of us who own houses or have rent-controlled apartments won’t want to live here any more. Mayor Larry Ellison? Eeew.) So I’m okay with that. I’m not a big fan of set-asides, but this is the whole future of San Francisco we’re talking about.

So the realtors can take a chill pill — the mayor doesn’t want to get in a fight with you. Sigh.

SF allows bikes indoors, but its cycling goal is elusive

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When the Board of Supervisors this week voted 9-2 to require commercial building owners to allow employees to bring their bicycles indoors while they work, ordinance sponsor Sup. John Avalos hailed the legislation as an important step toward meeting the city goal of having 20 percent of all vehicle trips in the city be by bike by the year 2020.

“We are removing a barrier to people getting around the city by bicycle,” Avalos said at the March 6 hearing, noting that the measure addresses cyclists’ concern about bike theft and helps keep sidewalks uncluttered and racks and poles free for other cyclists to use.

While it’s true this may help make cycling a bit more attractive, San Francisco would have to take far bolder actions to get anywhere near meeting its 20 percent by 2020 goal, a target it set in 2010 with legislation sponsored by Board President David Chiu and one regularly touted in speeches by Mayor Ed Lee.

Just last month, the San Francisco Municipal Transportation Agency released its latest bike count survey, which showed that about 3.5 percent of vehicle trips in the city are taken by bike, a 71 percent increase in the last five years, gains the San Francisco Bicycle Coalition lauded as “impressive.” Yet to reach the city’s goal would require a 571 percent increase in the next seven years – one that would seem unattainable at this pace.

“It’s a very ambitious but realistic goal,” SFBC director Leah Shahum told us, although she acknowledged it would require a drastic change in the city’s approach. “I’ve been impressed by how much Mayor Lee has touted the 20 percent by 2020 goal, but our city agencies need to step up their sense of urgency and commitment to meet that goal.”

The SFMTA is now finalizing a report on how to hit that 2020 target, which is scheduled for release next month. But agency spokesperson Paul Rose acknowledged the difficulty in meeting that goal: “It would take funding resources which at this point we don’t have.” He can’t yet say would it would take to meet the goal, which the report will outline, but he said, “We’re exploring what can be achieved with our available funding.”

Shahum said all studies by SFBC and other groups show concerns about safety is the biggest barrier to substantially increasing cycling in the city, and that most people need bike lanes – particularly paths physically separated from cars, known as cycle tracks – to feel safe. She praised the SFMTA for installing 20 miles of new bike lanes in the last two years, its fastest pace ever, “but that pace needs to double or triple to meet that goal.”

Instead, Mayor Lee has backed off a pledge he made last year to fast-track a short segment of bike lanes on dangerous sections of Oak and Fell streets that would connect two popular east-west bikeways: the Panhandle and the Wiggle. That project was delayed by a year for more meetings and work after motorists objected to the loss of street parking spots.

“We’re talking about three blocks. It’s relatively small in scope but huge in impacts,” Shahum said of the project. “If the pace of change on these three blocks is replicated through the city, it’ll take hundreds of years to meet the goal.”

In his run for mayor last year, Chiu regularly touted the 20 percent goal he set in 2010 after returning from a fact-finding trip to the Netherlands – where about 38 percent of vehicle trips are by bike – that he took with SFMTA Director Ed Reiskin, SFBC members, and officials from other cities. Chiu says that San Francisco might be further along than the SFMTA figures show, citing an SFBC poll showing that 5 percent of San Franciscans say they ride a bike daily and another 12 percent ride more than once a week.

“Whatever the current percentage is, we have a long way to go. We have to be bolder about specific projects and strategies,” Chiu told us. He said there is a growing recognition that promoting cycling is an important way to address traffic congestion and greenhouse gas reduction and that “segregated bikes lanes are the most efficient way to move the most people through areas of urban density.”

Chiu also said that San Francisco could be poised for rapid progress on the creation of new bikes lanes, citing early opposition to replacing parking spaces with parklets and the car-free Sunday Streets (which kicks off its new season this Sunday along the Embarcadero) events, with the business community and many neighborhood groups fearing that restrictions on motorists would hurt businesses.

“The experience has turned out to be exactly the opposite,” Chiu said, noting the explosion in demand for parklets and new Sunday Streets events in the last couple years, saying that a widening embrace of more cycle tracks and other biking infrastructure could be next.

Mayoral Press Secretary Christine Falvey told us, “The mayor is very much committed to the aggressive goals set to get to 20 percent by 2020 and the city is moving in the right direction. He has also always supported the Oak Fell project and we’re seeing progress. It will be complete in 2013 and he has been talking to the SFMTA about the project to keep up to date. San Francisco is on its way to becoming the most bicycle friendly city in the U.S. and in this era of limited public funding, the mayor is working with the SFMTA to explore what ways we can increase trips taken by bicycle with available funding and increased public awareness.”

She cited the Avalos legislation and the current installation of cycle tracks on JFK Drive in Golden Gate Park as examples of the city’s commitment to “move us toward the goal of 20 percent,” but many in the cycling community consider these efforts to be low-hanging fruit – easy, cheap, and non-controversial improvements – that won’t get the city anywhere near its stated goal.

Bike activist Marc Salomon is critical of the incremental approaches taken by SFBC and the city, saying that to make significant progress the city needs to address enforcement and the culture on the roadways, protecting cyclists from aggressive or impatient motorists and recognizing that many traffic laws don’t make sense for cyclists.

“We need to change the culture of the cops to make sure every street is a safe street,” he said. Shahum said that’s an issue SFBC is trying to address: “We are talking to them about how police could better enforce dangerous behaviors.”

Yet any efforts to promote cycling will likely be met with a backlash by motorists who resent losing space to cyclists and the fact that many cyclists routinely run stop signs and lights. Sups. Sean Elsbernd and Carmen Chu voted against the Avalos legislation, with Chu objecting to city staff evaluating businesses that seek waivers based on limited space or other factors, calling it a waste of precious resources.

But Avalos noted that his ordinance – which will be up for final approval on its second reading this Tuesday – has no enforcement mechanisms and “overall, this is a cost effective way to promote bicycling in the city. The costs are minimal.”

He also thanked the conservative Building Owners and Managers Association for supporting the legislation. Shahum said BOMA strongly opposed similar legislation almost 10 years ago and its embrace of it now shows how attitudes toward cyclists have changed. “There are so many more people biking now and the business community recognizes the benefits of having more of their employees biking,” she said.

Even politically moderate supervisors have been supportive of promoting cycling, with Sup. Scott Wiener saying at this week’s hearing, “It’s very important to make it as easy as possible to bike, and bike theft is a big issue in this city as well.”

D5 candidates and constituents scrutinize Olague

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San Francisco’s political lines are in the process of being redrawn. That’s true literally, with the current reconstitution of legislative districts based on the latest census, but it’s also true figuratively: old alliances based on identity and ideology are being replaced with uncertain new political dynamics. And nowhere is that more true than in District 5.

In a recent Guardian, we explored the implications of Sup. Christina Olague’s dual (and potentially dueling) loyalties between Mayor Ed Lee, who appointed her to the job, and the progressive political community with which Olague has long identified. Those seemed to play out yesterday when Olague bucked progressives to be the sixth co-sponsor of Sup. Mark Farrell’s proposed charter amendment to repeal ranked-choice voting for citywide offices.

Already, many of her progressive constituents – even those who have strongly supported her – have been privately grumbling that Olague hasn’t been accessible and expressing doubts about her ability to lead one of the city’s most progressive districts. Olague, who initially returned our calls immediately but said she’d have to get back to us about supporting Farrell’s legislation (I’ll add an update if/when she calls back), adamantly denied that she’s had a slow start.

“We’ve been working with constituents constantly,” she said, rattling off a list of nightly meetings. “I’m in the community all the time, getting coffee with folks…We’re working on multiple issues here.”

Michael O’Connor – who owns The Independent and other businesses and who ran in D5 in 2004 and may run again this year – supports Olague but questions the conventional wisdom that her progressive roots and mayoral support make her a lock for reelection this year.

“Olague is an awesome person and she would be a great supervisor in District 9,” O’Connor said, citing her strong ties to the Mission District and work with the Mission Anti-Displacement Coalition. “But she’s very beatable in D5 because she doesn’t have the deep connections to the community.”

That’s a belief that is shared by others, including London Breed – the executive director of the African American Art & Cultural Center for the last 10 years – who jumped into the race last week and threatened to cut into Olague’s support among Mayor Lee’s supporters.

With Attorney General Kamala Harris and other Lee supporters by her side, Breed cast herself as a more authentic and grassroots representative for the district where she was raised. Or as Harris said, “London understands the challenges and strengths of the district. She is, bar none, the best voice for District 5.”

Left unsaid was the split that her candidacy created among supporters of Lee, whose ascension to Room 200 was engineered largely by former mayor Willie Brown and Chinatown power broker Rose Pak. Brown (along with some of the city’s most influential African American ministers) strongly backed Breed for the D5 appointment, while Pak wanted her ally Malcolm Yeung, although she reportedly got behind Olague in the end.

Breed told us that she was supportive of Olague and that “I’ve been adamant about people giving her a chance and working with her.” But she said that it’s already become “clear that she just doesn’t have what it takes and was probably not going to get there,” based on “the feedback and phone calls I got with the experience people had in meeting her.”

“She’s familiar with planning, but not necessarily with the neighborhood and all its community groups,” Breed said. As for crossing Mayor Lee with her decision to run, Breed told us, “This was a hard decision for me to make because I work with many of these people and have good relationship with him.”

Progressive D5 candidates, such as City College Board President John Rizzo, are waiting to take advantage of votes on which Olague breaks with the progressives to carry water for the mayor. As he told us, “The mayor doesn’t get to make this decision, it’s the voters of this district that will decide.”

Like Breed, Rizzo also emphasized his long ties to the district. “I respect Christina and like Christina, but my connections are very deep,” he said, citing his 26 years of living and working as an environmental activist in the district. “I have a record of going out and taking the initiative and making things happen.”

Thea Selby, president of the Lower Haight Merchants and Neighbors Association, has also been running an active campaign for the D5 job, including highlighting Olague’s split loyalties. “She literally switched camps to help chair the Run Ed Run committee,” she told us. Julian Davis, who ran for D5 supervisor in 2004 and has been rumored to be mulling another run, said that it’s disconcerting just how many elected officials in San Francisco started off with the advantage of being appointed to the office: “It’s not participatory democracy the way we envision it.”

Selby and others will be closely watching how Olague votes this year, and trying to differentiate when those votes are significant (such as being the swing vote to place the challenge to RCV on the ballot) or not (including Olague’s early vote to override Lee’s veto, which fell two votes short of the eight needed). “We need to look and see how she votes on things – and when it matters and when it doesn’t,” Selby said.

Yet already, even before the really big and controversial votes like the upcoming 8 Washington and CPMC projects, Olague is feeling the polar tugs on issues such as bicycling. Many bike advocates are mad that Lee has delayed promised bike lanes on Oak Street and with a rash of tickets that cyclists on the Wiggle have received.

“I’ve long been an advocate of biking, but I know there are issues related to parking in the neighborhood,” Olague told us, straddling the issue. “Parking for some reason is a very controversial issue in the city.”

And where does she come down on the stepped up enforcement of bikes rolling stop signs on the Wiggle? “I want to sit down with the Bike Coalition and see what they think,” Olague said.

Meanwhile, Breed – who is widely considered a political moderate, which could cause her problems winning in D5 – is also trying to position herself as more independent than Olague. “I’m about being progressive,” she told us, citing her recent hiring of a case worker at the AAACC to help young African Americans work through barriers to success. “To me, that’s what being progressive is.”

Breed readily acknowledged her early political support from Brown, who appointed her to the Redevelopment Commission when he was mayor, but said that she would still take a tough stand against Lennar and other developers to ensure the needs of current San Franciscans are being met by new projects.

“I’ve told people, this does not mean you have my support,” Breed said of her political contributors and her support of Lennar’s massive redevelopment of the southeast part of the city. “As my grandmother used to say, all money ain’t good money.”

On Breed’s entrance into the race, Olague told us, “It was expected, so I’m not surprised.” Olague said that she’s begun to set up her election campaign, but that most of her focus has been on getting up to speed at City Hall and in D5: “I’m just trying to focus on the work of the district.”

The case against 8 Washington

35

tredmond@sfbg.com

In city planning terms, it’s a fairly modest project: 134 condos, no buildings more than 12 stories tall, on a 27,000-square-foot site. It’s projected to meet the highest environmental building standards and offers new open space and pedestrian walkways. It’s near Muni, BART, and ferry lines. And the city will collect millions of dollars in new taxes from it.

But the 8 Washington project, which will come before the Planning Commission March 8, has become a flashpoint in city politics, one of the defining battles of Mayor Ed Lee’s administration — and a symbol of how the city’s housing policy has failed to keep pace with the needs of the local workforce.

Put simply, it will create the most expensive condos in city history, housing for the richest of the 1 percent on the edge of the waterfront — and will further push San Francisco toward becoming a city that caters almost entirely to the very wealthy.

So in a city where the growing divide between the 1 percent and the rest of us has become a central issue and where the lack of affordable housing is one of the top civic concerns, 8 Washington is an important test. By any rational standard, this sort of development is the last thing San Francisco needs.

But some of the best-connected lobbyists in the city are pushing it. One of the mayor’s closest allies, Chinatown powerbroker Rose Pak, is a leading advocate — and the final outcome will say a lot about city politics in the Lee administration.

There are all sorts of half-truths and misleading statements by supporters of 8 Washington. Here are the five main reasons the project shouldn’t be approved.

1. It fills no housing need. San Francisco has no shortage of housing for the very rich; the dramatic need, outlined in both regional planning documents and the city’s own General Plan, is for low- and moderate-income housing for the people who actually work in this city (see “Dollars or sense?” 9/28/10). While San Francisco is getting richer by the day, the core workforce — public employees, workers in the hotel and restaurant industry, service workers, construction and trade workers, and a majority of the people in the lower levels of the finance and tech sector — are being priced out of the city. That means more people working here and living far out of town, often commuting by car, in what everyone agrees is an unsustainable situation. Meanwhile, more and more high-paid workers from Silicon Valley are living in San Francisco — again, commuting to distant jobs, either by car or by corporate bus.

The city’s General Plan states that some 60 percent of all new housing built in the city should be below market rate. San Francisco desperately needs housing for its workforce. This type of project simply puts the city deeper in the hole and further from its housing goals.

2. It’s a reward for bad actors. The main developer of this project is Simon Snellgrove, but one of his partners is, by necessity, Golden Gateway, which owns a significant part of the land — and which has been flouting at least the spirit if not the letter of city and state law and costing San Francisco tens of millions of dollars.

As project opponent Brad Paul has noted in written testimony, when Timothy Foo, the current owner, bought the complex from Perini Corp. about 20 years ago, he used a loophole in state law that allowed him to avoid a formal transfer of ownership. That means the property wasn’t re-assessed, costing the city about $1.5 million a year. According to the Assessor’s Office, the deal wasn’t illegal (and these tricks to avoid reassessment are relatively common) but still: He’s costing the city millions by using a loophole not available to most people.

Golden Gateway, which was built in a redevelopment area as middle-class housing, is now renting out apartments as short-term tourist or corporate rentals. There are dozens of examples right now on Craigslist. City law bars the owners of rental housing from converting it to hotel rooms, but a loophole in that law makes what Foo’s outfit is doing technically legal. But he’s clearly violating the spirit of the city ordinance that seeks to protect rental housing from hotel conversions.

One of the main aesthetic complaints about the area — something Snellgrove’s lobbyists have tried to use to support the project — is the ugly fence that now surrounds the Golden Gateway Tennis and Swim Club. But who do you suppose put that fence there?

Do we as a city want to be giving special zoning benefits to companies that try to circumvent tax and housing laws?

3. It’s an environmental disaster. Snellgrove and his architects, Skidmore Owning and Merrill, are seeking LEED platinum certification for the project, saying that its energy-efficiency, water use, and green building materials will make it one of the most sustainable structures in San Francisco. It is, the project website notes, close to all types of public transit.

But LEED doesn’t take into account what the building is used for (see “Is LEED really green,” 7/5/11) — and in this case, the use makes a huge amount of difference.

People who buy multi-million-dollar condos don’t tend to take Muni or BART when they go places. That’s not conjecture, it’s a proven fact. A 2008 study by the American Public Transportation Association notes, bluntly, that wealthier people are more likely to drive cars. When you move into the stratospheric regions of the ultra-rich, that’s even more true. A 2011 report on the Charting Transport website notes: “The very rich tend to shun public transport.”

The current zoning in the area allows for one parking space for every four residential units. Snellgrove is asking for one space per unit — in other words, he figures every single buyer will have a car.

Many of the people who buy these condos won’t be working or even living most of the time in San Francisco. These are condos for world travelers, second and third homes for people who want to spend a few weeks a year in San Francisco. “They aren’t going to be living here all year,” Christina Olague, a former Planning Commission member who is now the District 5 supervisor, told us last July.

If five of the 165 residents of 8 Washington fly in a private or corporate jet from, say, New York to their SF pad once a month, the project will cause the use of jet fuel equivalent to what a normal family would use driving a car for 330 years, Paul noted.

“How many solar panels are needed compensate for burning 396,000 gallons of jet fuel a year?” he asked.

Then there’s the construction issue. If the developer’s projections are correct, as many as 20,000 dump truck runs will be trundling along the Embarcadero for several months, one every two minutes — and it could be happening right as the traffic nightmare called the America’s Cup is hitting the waterfront.

It also goes against some 40 years of waterfront planning policy, all of which as focused on downzoning and creating open space. This would be the first upzoning of San Francisco waterfront property in decades.

4. It will wipe out what is mostly a middle-class recreation facility. The Golden Gateway Tennis and Swim Club will be closed for three years, then (possibly) reopened later as a smaller facility. The club — with two outdoor pools and six tennis courts — sounds like something for the elite, and it’s managed by the upscale Bay Club, but a lot of the users are longtime Golden Gateway residents and seniors. “I would say 30 or 35 percent of the users are seniors,” Lee Radner, chair of Friends of Golden Gateway, told me. Most, he said, are middle-class people, and the expense isn’t that high. “My wife and I pay $3 a day to use the pool,” he said. “I swim every day, and it would cost more than that to use the public pools in the city.” He added: “There are some wealthier people, of course, but many of us are retired and on fixed incomes.”

We’re talking about 90,000 total square feet of outdoor recreation space — which dwarfs the 20,000 square feet of open space the developer promised to provide.

5. The city doesn’t get much out of the deal. In exchange for upzoning the waterfront, creating a big all of buildings and screwing up the city’s housing balance, what does the San Francisco general fund get? Not a lot. The estimates for new tax revenue run about $1.5 million a year of the next 60 years — and when you translate that to what economist call “net present value,” the cash equivalent today of that revenue stream, it’s about $30 million. The Port of San Francisco is talking about creating a special infrastructure financing district — sort of the equivalent of a redevelopment area — to pull that money out in advance, which may not even be legal (since part of the land is a former redevelopment area, the state law that allows these special finance districts may not apply). But even so, a Jan. 14 Port memo suggests that the agency has plans to spend all that money on its own infrastructure — setting up a potential battle between the supervisors and the Port Commission over where the money, if it actually can be collected up front, will go.

Like any developer, Snellgrove will pay into the city’s affordable housing fund — in this case, about $9 million to pay for the equivalent of 27 units. No affordable units will be on site, of course; that would detract from the uber-wealthy ambience of the place. And it’s not clear when those units would be built. “Nobody builds 27-unit buildings any more,” Paul, a former deputy mayor for housing, said. “We’ll have to wait until there’s enough money for a bigger project, somewhere, sometime down the road. That’s what we’re getting here.”

Either way, it’s not a huge benefit for allowing this disaster of a project — and it’s a terrible statement for San Francisco to make. At a time when the mayor has cleared the Occupy protesters — who are talking about how little the rich pay in taxes — off the waterfront, the city is preparing to move in the exceptionally rich, who aren’t paying anywhere near their fair share in tax revenue to local government.

(Nobody knows for sure whether the costs of servicing high-end residential exceed the revenue the city gets from property taxes. In 1971, the Guardian put together the first-ever cost-benefit study for highrise office development, which showed that commercial buildings cost the city more than they paid; that’s been confirmed and demonstrated over the years to the point where it’s hardly even an argument any more. The supervisors ought to ask the city economist or the budget analyst to do the same sort of analysis for luxury condos.)

There’s another element here: Mayor Lee made a point during his campaign to say over and over again that he was an independent thinker, that powerful and influential allies like Rose Pak would not be calling the shots at City Hall. This will be his first major test: Pak and lobbyist Marcia Smolens are working hard to promote 8 Washington. And we’re already getting some disturbing signals out of the mayor’s office.

Lee told us that he has “no thoughts” about the project and hasn’t been paying any attention to it. That’s an odd stance, considering that his own Port Commission is pushing it and staffers in his office are working with the developer. This is a big priority for Pak, and the notion that she has never mentioned it to the mayor defies reason. Board President David Chiu, who talks to the mayor regularly, opposes the project, which is in Chiu’s district.

It’s hard to imagine that anyone who pays attention to local politics could be missing what will be one of the landmark votes this spring on the Planning Commission — which will take up the project March 8 — and the Board of Supervisors.

The mayor, may, indeed, be ignoring everything that supporters and opponents of 8 Washington have said and may be waiting until the Planning Commission vote to take a position. But if he’s just ducking questions because he’s planning to support it, he’s making a big mistake.

This is a chance for San Francisco to go beyond the platitudes about building housing, go beyond the hype about “green” buildings, see through the fraud about community benefits and consider what this really is: A special favor for a developer who wants to cater to the top 1 percent of the 1 percent and move San Francisco even closer to being a city of, by, and for the elite. The only reasonable vote on 8 Washington is No.

Mayor Lee makes demands on SFUSD

9

“You thought you felt an earthquake Sunday night. Actually, that was me.”

Assemblymember Tom Ammiano was on the phone, talking to me about Mayor Ed Lee’s plan to demand some changes in the way the San Francisco Unified School District manages its property — and to hold up the $6 million the city owes the district until that happens. The mayor says there will be “strings attached” to the rainy-day fund money that would normally go to help SFUSD avoid teacher layoffs — and while it’s not exactly clear what those strings are, except that the mayor wants surplus property to be developed or sold, it’s not what Ammiano had in mind when he created the fund as a supervisor.

“The mayor is trying to hold the school district hostage,” Ammiano said. “And it’s not well advised.”

It’s also really odd: For one thing, as School Superintendent Carlos Garcia told me in a phone interview, any money the district got from selling off surplus property would be earmarked for use in facilities development and couldn’t go to pay teachers or prevent program cuts. “He wants to see how we’re using the property, and that’s fine, I’m happy to share that with him,” Garcia said. “But selling property doesn’t help. Even if we sold everything, we’d still need the money from the Rainy Day Fund.”

The district is constantly looking at ways to use its surplus property, and does a study on the topic every two years. But it’s not simple — for one thing, enrollment is growing, and it’s entirely possible that some sites that are now surplus will be needed in the next few years. And Garcia is properly cautious about getting rid of public property without a very good reason.

He’s a little curious, too, about what the mayor has in mind. “This did come a little bit out of the blue,” he told me.

The whole situation creates another disturbing conflict, one I’ve been worried about for years. The mayor’s education advisor, Hydra Mendoza, also sits on the School Board. What happens when the guy who pays her salary at her day job — Mayor Lee — takes a position that’s directly at odds with the interests of the job the voters gave her, as a board member? I see that happening right now, and I don’t know how it’s going to play out.

With any luck, the mayor will come to his senses, cut the check and stop trying to tell the school district how to manage its property. If not, his education advisor is going to be in a bit of a pickle.

Mendoza told me she doesn’t see it that way — in fact, she said she doesn’t think the mayor will really hold up the $6 million. “It’s part of an ongoing conversation,” she told me. “People keep telling the mayor that the school district has all this surplus property and needs to sell it before they get any city money. The mayor is just responding to that, saying ‘is there another source of revenue?’ Because the rainy day fund is going to dry up.

“How that got portrayed as ‘strings’ I don’t know.”

She did say, however, that the mayor “has been very clear that he wants to look at other revenue streams” and wants to see a plan in place to use the surplus property. Even though, of course, it’s not that simple and Mendoza was quick to agree that you can’t just put a tech company in a building that’s part of a school site.

She also insisted that there’s no conflict here. “It works well for me and the district,” she said. “If I wasn’t here, the perception of the district at City Hall would be different.”

But still: We’re very close to a situation where the mayor is on one side of an issue and the school district is on the other, and there’s critical money involved, and Mendoza is in the middle. “We haven’t come to those crossroads,” she said. “I haven’t been put in that situation. We’ve had a lot of civil conversations.”

But it’s out there, and it’s a potential problem.

 

Editorial: The case against the 8 Washington tower

27

Editorial note: In 1971, at the height of the Alvin Duskin anti-highrise battle, the Guardian did a special first ever cost benefit study for high rise office development.

We found that highrises cost the city  more in services than they produce in revenue.  This meant that the commercial high rise boom could be fought on economic grounds, not just aesthietic and environmental grrounds, and the Chamber of Commerce/Big development gang could never adequately refute our findings.  In fact, they are now taken for  granted. So, as the 8 Washington battle is poised to open the floodgates even further for a forest of market rate residential  buildings, it’s time for the city to do its own study to determine the economics of high end  residential buildings.  Does the cost of servicing luxury residential buildings exceed the taxes they pay? We and many others in the neighborhoods are certain that market rate housing doesn’t pay for itself. But the facts are needed and so we urge the supervisors to direct the budget analyst or the city economist to do a similar analysis  for luxury condos.  Below is Executive Editor Tim Redmond’s powerful argument against 8 Washington.

By Tim Redmond

tredmond@sfbg.com

In city planning terms, it’s a fairly modest project: 134 condos, no buildings more than 12 stories tall, on a 27,000-square-foot site. It’s projected to meet the highest environmental building standards and offers new open space and pedestrian walkways. It’s near Muni, BART, and ferry lines. And the city will collect millions of dollars in new taxes from it.

But the 8 Washington project, which will come before the Planning Commission March 8, has become a flashpoint in city politics, one of the defining battles of Mayor Ed Lee’s administration — and a symbol of how the city’s housing policy has failed to keep pace with the needs of the local workforce.

Put simply, it will create the most expensive condos in city history, housing for the richest of the 1 percent on the edge of the waterfront — and will further push San Francisco toward becoming a city that caters almost entirely to the very wealthy.

So in a city where the growing divide between the 1 percent and the rest of us has become a central issue and where the lack of affordable housing is one of the top civic concerns, 8 Washington is an important test. By any rational standard, this sort of development is the last thing San Francisco needs.

But some of the best-connected lobbyists in the city are pushing it. One of the mayor’s closest allies, Chinatown powerbroker Rose Pak, is a leading advocate — and the final outcome will say a lot about city politics in the Lee administration.

There are all sorts of half-truths and misleading statements by supporters of 8 Washington. Here are the five main reasons the project shouldn’t be approved.

1. It fills no housing need. San Francisco has no shortage of housing for the very rich; the dramatic need, outlined in both regional planning documents and the city’s own General Plan, is for low- and moderate-income housing for the people who actually work in this city (see “Dollars or sense?” 9/28/10). While San Francisco is getting richer by the day, the core workforce — public employees, workers in the hotel and restaurant industry, service workers, construction and trade workers, and a majority of the people in the lower levels of the finance and tech sector — are being priced out of the city. That means more people working here and living far out of town, often commuting by car, in what everyone agrees is an unsustainable situation. Meanwhile, more and more high-paid workers from Silicon Valley are living in San Francisco — again, commuting to distant jobs, either by car or by corporate bus.

The city’s General Plan states that some 60 percent of all new housing built in the city should be below market rate. San Francisco desperately needs housing for its workforce. This type of project simply puts the city deeper in the hole and further from its housing goals.

2. It’s a reward for bad actors. The main developer of this project is Simon Snellgrove, but one of his partners is, by necessity, Golden Gateway, which owns a significant part of the land — and which has been flouting at least the spirit if not the letter of city and state law and costing San Francisco tens of millions of dollars.

As project opponent Brad Paul has noted in written testimony, when Timothy Foo, the current owner, bought the complex from Perini Corp. about 20 years ago, he used a loophole in state law that allowed him to avoid a formal transfer of ownership. That means the property wasn’t re-assessed, costing the city about $1.5 million a year. According to the Assessor’s Office, the deal wasn’t illegal (and these tricks to avoid reassessment are relatively common) but still: He’s costing the city millions by using a loophole not available to most people.

Golden Gateway, which was built in a redevelopment area as middle-class housing, is now renting out apartments as short-term tourist or corporate rentals. There are dozens of examples right now on Craigslist. City law bars the owners of rental housing from converting it to hotel rooms, but a loophole in that law makes what Foo’s outfit is doing technically legal. But he’s clearly violating the spirit of the city ordinance that seeks to protect rental housing from hotel conversions.

One of the main aesthetic complaints about the area — something Snellgrove’s lobbyists have tried to use to support the project — is the ugly fence that now surrounds the Golden Gateway Tennis and Swim Club. But who do you suppose put that fence there?

Do we as a city want to be giving special zoning benefits to companies that try to circumvent tax and housing laws?

3. It’s an environmental disaster. Snellgrove and his architects, Skidmore Owning and Merrill, are seeking LEED platinum certification for the project, saying that its energy-efficiency, water use, and green building materials will make it one of the most sustainable structures in San Francisco. It is, the project website notes, close to all types of public transit.

But LEED doesn’t take into account what the building is used for (see “Is LEED really green,” 7/5/11) — and in this case, the use makes a huge amount of difference.

People who buy multi-million-dollar condos don’t tend to take Muni or BART when they go places. That’s not conjecture, it’s a proven fact. A 2008 study by the American Public Transportation Association notes, bluntly, that wealthier people are more likely to drive cars. When you move into the stratospheric regions of the ultra-rich, that’s even more true. A 2011 report on the Charting Transport website notes: “The very rich tend to shun public transport.”

The current zoning in the area allows for one parking space for every four residential units. Snellgrove is asking for one space per unit — in other words, he figures every single buyer will have a car.

Many of the people who buy these condos won’t be working or even living most of the time in San Francisco. These are condos for world travelers, second and third homes for people who want to spend a few weeks a year in San Francisco. “They aren’t going to be living here all year,” Christina Olague, a former Planning Commission member who is now the District 5 supervisor, told us last July.

If five of the 165 residents of 8 Washington fly in a private or corporate jet from, say, New York to their SF pad once a month, the project will cause the use of jet fuel equivalent to what a normal family would use driving a car for 330 years, Paul noted.

“How many solar panels are needed compensate for burning 396,000 gallons of jet fuel a year?” he asked.

Then there’s the construction issue. If the developer’s projections are correct, as many as 20,000 dump truck runs will be trundling along the Embarcadero for several months, one every two minutes — and it could be happening right as the traffic nightmare called the America’s Cup is hitting the waterfront.

It also goes against some 40 years of waterfront planning policy, all of which as focused on downzoning and creating open space. This would be the first upzoning of San Francisco waterfront property in decades.

4. It will wipe out what is mostly a middle-class recreation facility. The Golden Gateway Tennis and Swim Club will be closed for three years, then (possibly) reopened later as a smaller facility. The club — with two outdoor pools and six tennis courts — sounds like something for the elite, and it’s managed by the upscale Bay Club, but a lot of the users are longtime Golden Gateway residents and seniors. “I would say 30 or 35 percent of the users are seniors,” Lee Radner, chair of Friends of Golden Gateway, told me. Most, he said, are middle-class people, and the expense isn’t that high. “My wife and I pay $3 a day to use the pool,” he said. “I swim every day, and it would cost more than that to use the public pools in the city.” He added: “There are some wealthier people, of course, but many of us are retired and on fixed incomes.”

We’re talking about 90,000 total square feet of outdoor recreation space — which dwarfs the 20,000 square feet of open space the developer promised to provide.

5. The city doesn’t get much out of the deal. In exchange for upzoning the waterfront, creating a big all of buildings and screwing up the city’s housing balance, what does the San Francisco general fund get? Not a lot. The estimates for new tax revenue run about $1.5 million a year of the next 60 years — and when you translate that to what economist call “net present value,” the cash equivalent today of that revenue stream, it’s about $30 million. The Port of San Francisco is talking about creating a special infrastructure financing district — sort of the equivalent of a redevelopment area — to pull that money out in advance, which may not even be legal (since part of the land is a former redevelopment area, the state law that allows these special finance districts may not apply). But even so, a Jan. 14 Port memo suggests that the agency has plans to spend all that money on its own infrastructure — setting up a potential battle between the supervisors and the Port Commission over where the money, if it actually can be collected up front, will go.

Like any developer, Snellgrove will pay into the city’s affordable housing fund — in this case, about $9 million to pay for the equivalent of 27 units. No affordable units will be on site, of course; that would detract from the uber-wealthy ambience of the place. And it’s not clear when those units would be built. “Nobody builds 27-unit buildings any more,” Paul, a former deputy mayor for housing, said. “We’ll have to wait until there’s enough money for a bigger project, somewhere, sometime down the road. That’s what we’re getting here.”

Either way, it’s not a huge benefit for allowing this disaster of a project — and it’s a terrible statement for San Francisco to make. At a time when the mayor has cleared the Occupy protesters — who are talking about how little the rich pay in taxes — off the waterfront, the city is preparing to move in the exceptionally rich, who aren’t paying anywhere near their fair share in tax revenue to local government.

(Nobody knows for sure whether the costs of servicing high-end residential exceed the revenue the city gets from property taxes. In 1971, the Guardian put together the first-ever cost-benefit study for highrise office development, which showed that commercial buildings cost the city more than they paid; that’s been confirmed and demonstrated over the years to the point where it’s hardly even an argument any more. The supervisors ought to ask the city economist or the budget analyst to do the same sort of analysis for luxury condos.)

There’s another element here: Mayor Lee made a point during his campaign to say over and over again that he was an independent thinker, that powerful and influential allies like Rose Pak would not be calling the shots at City Hall. This will be his first major test: Pak and lobbyist Marcia Smolens are working hard to promote 8 Washington. And we’re already getting some disturbing signals out of the mayor’s office.

Lee told us that he has “no thoughts” about the project and hasn’t been paying any attention to it. That’s an odd stance, considering that his own Port Commission is pushing it and staffers in his office are working with the developer. This is a big priority for Pak, and the notion that she has never mentioned it to the mayor defies reason. Board President David Chiu, who talks to the mayor regularly, opposes the project, which is in Chiu’s district.

It’s hard to imagine that anyone who pays attention to local politics could be missing what will be one of the landmark votes this spring on the Planning Commission — which will take up the project March 8 — and the Board of Supervisors.

The mayor, may, indeed, be ignoring everything that supporters and opponents of 8 Washington have said and may be waiting until the Planning Commission vote to take a position. But if he’s just ducking questions because he’s planning to support it, he’s making a big mistake.

This is a chance for San Francisco to go beyond the platitudes about building housing, go beyond the hype about “green” buildings, see through the fraud about community benefits and consider what this really is: A special favor for a developer who wants to cater to the top 1 percent of the 1 percent and move San Francisco even closer to being a city of, by, and for the elite. The only reasonable vote on 8 Washington is No.

Herbwise: Shambhala Healing Center next on the federal chopping block

1

When Al Shawa, founder of Shambhala Healing Center, was asked about what he was going to do now that the federal government is trying to shut down his business, he was (understandably) irresolute. 

“I have no idea. Who comes first, the chicken or the egg? Do I blame the federal government or the city? Somebody did me wrong.”

Shawa opened his medical cannabis dispensary one short year ago on Mission Street. He knew he was close to Jose Coronado Playground, but that’s why he underwent an 18-month permitting process with the city, which assured him that the playground’s clubhouse was not being used. In late February, his landlord received a letter from US attorney Melinda Haag that asserted illegal trafficking of drugs were taking place near a children’s playground. His landlord, Haag informed, risked criminal prosecution, imprisonment, fines, and civil forfeiture if Shawa’s business wasn’t out of the space in 40 days. Similar letters were sent out to roughly 12 dispensaries last autumn. Those dispensaries are now closed.

But on Saturday morning, Shawa seemed confused, and not entirely hopeless that his small business could be saved. He sat in his back office, a man trimming weed one room over. “I would hope the city would stand firm and protect these entities,” he said from behind his desk, next to a bank of security cameras. “I don’t understand where it stands on this – it should be taking a leading role.”

Posted: these signs now greet patients at the Shambhala Healing Center. Guardian photos by Caitlin Donohue

Though the SF Board of Supervisors passed a resolution in support of cannabis dispensaries’ right to operate without federal persecution last October, Mayor Ed Lee has yet to speak out on the federally-compelled closures, besides to comment that he’ll kow-tow to the authorities on the matter of marijuana’s medicinal efficacy. We asked Lee’s office for comment when the Department of Justice requested Department of Public Health records for 12 Bay Area dispensaries in February (a move that preceded the previous round of letters from Haag), to no avail. 

Shawa had previously operated a clothing store named Privilege at the address, but opened up Shambala when a fire damaged his inventory. Since opening, he said he’s become attached to many of the regular patients. “You feel like your responsible for their wellbeing,” he said, before talking about how his dispensary passed out 200 turkeys to the community on Thanksgiving, and gave the nearby Folsom Street firehouse $5,000 worth of toys to distribute during the holiday season. 

Throughout the recent travails of the medical cannabis industry, one of the more frustrating issues has been the seemingly random way businesses have been targeted by federal agencies. Shawa’s is a case in point. While he grapples with the notion of shutting his doors, the owner of a restaurant across the street, Gus Murad of Medjool Restaurant and Lounge, is applying for a permit to open a new dispensary on the same block (as reported by Mission Local). 

Lupe Ruiz, who has been floor manager at Shambala since the dispensary opened, seemed likewise shaken and frustrated with the city’s lack of response in the matter. 

“I’m kind of devastated,” she told me in between helping patients. “How do you allow someone to open and then when things get hot you don’t say anything about it?” She recalled a picnic in Dolores Park Shambala recently organized for its patients at which people played ball games and got to meet each other.

The dispensary does seem to be a gathering place of sorts – on the morning I interviewed Ruiz and Shawa, patients consulted budtenders about the right strain of cannabis for them, joking and friendly-like. Shawa says that more than one patient has teared up when he told them that the dispensary’s future was uncertain. 

“Who listens to these stories?” Ruiz concludes sadly, with a sentiment that the rest of the medical marijuana community can surely sympathize with. “People are not being heard.”

SF Chamber poll distorts the facts…again

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The San Francisco Chamber of Commerce this week released its annual City Beat poll – promoting its results at the top of its website and feeding it to media outlets such as the San Francisco Examiner, which faithfully reported its finding, apparently without seeking underlying data – and once again the poll was marred by distortions and hidden agendas.

For example, the Chamber claims that 58 percent of the poll’s 500 respondents prefer runoff elections (up from 52 percent in 2011) and 31 percent prefer ranked-choice voting (down from 42 percent last year), with the balance refusing to answer or saying they don’t know. But what the Chamber doesn’t say is that voters were read a series of arguments for each system first, and the anti-RCV statement contained a flat-out inaccuracy.

“Critics of ranked choice voting say that it is a confusing system that results in lower voter turnout – as the last Mayoral election had the lowest overall voter turnout in more than 35 years. They say candidates are getting elected with extremely low number of votes which doesn’t represent the true will of the voters. Instead of ranked choice voting, they propose having run-off elections so that voters have a clear choice on something as important as Mayor,” the statement read.

Yet it’s simply not true that November’s 42.47 percent turnout was the lowest in 35 years (as you can see here). Off-year elections have far lower turnouts, as did the last mayoral election in 2007, which had a turnout of 35.6 percent. Even the hotly contested, pre-RCV November mayoral election of 2003 had a turnout of 45.67 percent, just a few percentage points higher that the low turnout that the question implies that RCV causes.

But Jim Lazarus, the Chamber’s vice president of public policy, won’t concede the error, telling the Guardian that respondents understand the statement to apply to only closely contested mayoral elections. “We believe the average voter realizes a competitive race is what we’re talking about,” Lazarus said, dismissing the 2007 mayor’s race as uncompetitive.

Yet Rob Richie, executive director of FairVote, which supports RCV, said the poll was deceptive and seems designed to achieve results that are consistent with public policy stands that the Chamber has taken. “I think they do a better job of making their arguments than the RCV arguments,” he said.

“Supporters of ranked choice voting say it gives voters more choices and does not force voters to vote twice in just five weeks on the same contest. They say it has resulted in more diverse representatives for the city. They also say that it encourages campaigns to find common ground and ways to work together because they must win supporters of other candidates,” reads the polling statement.

Richie concedes that supporters of RCV have made these statements, but he said they aren’t the strongest arguments or the ones they generally tend to lead with, such as how big spending by well-funded independent expenditure groups tend to dominate the low-turnout runoff elections, which more conservative candidates win every time in San Francisco.

But Lazarus claims the Chamber was trying to honestly gauge public opinion, not influence it in favor of Chamber positions. “We didn’t skew it, we’re trying to get honest answers,” he told us. “It doesn’t do us any good to fake the outcomes. We aren’t doing this for PR reasons or press releases.”

Yet many of the issues the poll dealt with are active campaigns in which the Chamber is trying to influence the decisions made at City Hall, such as its longstanding crusade to repeal the city’s payroll tax. In the poll results, 57 percent of respondents said the supported a “payroll tax decrease from 1.5 percent to 1 percent, making up the difference with other revenues.” In the Examiner story, the paper even deleted that last crucial clause.

Yet what neither the Chamber nor the Examiner told readers was that the question was set up with this statement: “It has also been suggested that reforming the city’s payroll tax system could spur job growth. I would like to read you some potential tax reforms that have been suggested to help spur job growth.”

But even with that repetition of “spur job growth” as a prompt, only 25 percent of respondents agree with the crusade of the Chamber and its allies in City Hall to “Eliminate the payroll tax all together, replacing lost revenue with higher license fees and taxes on businesses.”

On the half-dozen tax measures the poll asked about, none of which received majority support, the questions were set up with this statement, “Some members of the Board of Supervisors have suggested a vote on new taxes may be necessary to help solve this budget deficit,” referring to the oft-demonized legislative body that enjoyed 45 percent in this poll, rather than Mayor Ed Lee, who has made similar suggestions and enjoys 68 percent support.

The poll was conducted by David Binder Research, and Binder was out-of-town and unavailable to answer questions. Lazarus said the language in the questions was jointly developed by Binder and the Chamber.

Mayor Lee praises the importance of nightlife to SF

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Addressing a gathering of nightlife advocates at a California Music and Culture Association event last night, Mayor Ed Lee praised the economic and cultural role that the entertainment industry plays in San Francisco, announced plans to add a “nightlife unit” in the Mayor’s Office of Economic and Workforce Development, and even hinted that Halloween in the Castro might be returning after being shut down during the city’s so-called “war on fun.”

“If I’m going to be about jobs,” he said, referring to his near-constant emphasis on economic development, “it should be both for the day and for the night…I do recognize this as a business, as a serious contributor to the economic engine of city.”

Lee referenced the new Controller’s Office report that was requested by Sup. Scott Wiener, which concludes that the nightlife industry generates about $4.2 billion in annual economic activity in the city (that report will be the subject of a rally and hearing on Monday at City Hall starting on the steps at noon). And he said that the benefits of a vibrant nightlife scene also help make San Francisco an appealing city for other businesses, an indirect economic benefit.

“You’re all part of a great part of the city that keeps everyone refreshed,” Lee said, later adding, “I think we can do more at night. The young people who work gobs of hours need to have an entertaining evening.”

As he announced plans to add a nightlife unit to OEWD, the office that works with private companies looking to locate or expand here, he said, “We, as government, need to fast-track things that are successful.” Yet he also said that public safety is still a challenge and called for the industry to work closely with police to keep everyone safe.

Yet Lee spoke positively about Halloween in the Castro, a once-popular event that was canceled because Mayor Gavin Newsom and then-Sup. Bevan Dufty (who Lee recently hired as his new homeless czar) feared the city couldn’t control it, and Lee alluded to plans being developed to revive it in some form. “I hate to see any event that brought so many people to the city gone,” he said.

The event was held at The Grand, a club owned by CMAC board member and new Entertainment Commissioner Steven Lee. CMAC was formed two years ago in response to crackdowns on SF nightlife by city and state officials.

The war is over. Fun won.

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steve@sfbg.com

>>Read Sup. Scott Weiner’s op-ed on SF nightlife here

Two years ago, the war on fun that the Bay Guardian had been chronicling and decrying since 2006 — involving overzealous cops, NIMBY neighbors complaining about noise, escalating fees on outdoor events, and politicians scapegoating nightclubs for urban violence –- seemed to be reaching a peak of official intolerance.

The San Francisco Police Department and California Department of Alcoholic Beverage Control were running amok, with an especially troublesome pair of enforcers harassing disfavored club owners and guests, getting rough with patrons at private parties, and seizing laptop computers from DJs and cameras from those who documented the abuses (see “The new War on Fun,” 3/23/10). Then-Mayor Gavin Newsom and then-Police Chief Heather Fong and their underlings only fed the conflict with brash statements and by refusing to support the nightlife industry.

But today, all involved say the situation has turned completely around, with the nightlife industry asserting its importance to San Francisco’s culture and economy and getting key support from a new generation of political leaders. It may be too early to say the war on fun is over, but everyone is certainly enjoying a welcome cease-fire.

Police Chief Greg Suhr has longstanding relationships with many leaders in the nightlife community -– and he’s someone who says that he goes out regularly and has a son who plays drums for a local band.

“I consider many of the people in the entertainment community to be personal friends,” Suhr told us. “And if there’s a problem, I don’t think anyone has been shy about approaching me personally.”

At the same time, the industry has taken on a higher political profile in town since forming the California Music and Culture Association two years ago during the height of the conflicts with the city and the ABC. The group now has monthly meetings with a nightlife liaison that Suhr has assigned to work through issues.

“The lines of communication are open. Despite some differences in opinion, there is a growing sense of trust and respect that is developing in these meetings,” CMAC co-chair Alix Rosenthal told us.

Rather than bashing the nightclubs as a source of trouble, political officials have been openly courting CMAC, which holds regular public events and forums on nightlife issues, including an “Industry Cocktail Hour with Mayor Ed Lee” on the evening Feb. 29 from 5-7 p.m. at The Grand, a club owned by the newest Entertainment Commission member, Steven Lee.

Sup. Scott Wiener has also been a strong advocate for nightlife issues, and has commissioned a city study on the economic benefits of the nightlife industry, which he discusses in this week’s Guardian Op-ed and which will be the subject of March 5 rally and hearing at City Hall.

Preliminary results in the study, with was conducted by City Economist Ted Egan, show that the nightlife industry generates $4.2 billion in annual spending, $55 million in taxes, and employs 48,000 people. And those figures don’t include outdoor events such as street fairs or the Outside Lands Festival, which another recent study by concert organizers found generated $60.6 million in San Francisco and $6.6 million in surrounding communities last year.

“People coming into the city to enjoy themselves is our number one industry,” Suhr said, noting how important it is to balance public safety concerns with support for the city’s cultural and entertainment offerings.

Rosenthal said CMAC was happy that Wiener commissioned the study. “This study is going to be helpful,” she said. “We’ll have hard data to show how much the entertainment economy contributes to San Francisco’s entire economy.”

Sorting out the America’s Cup re-do

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I have to say this for Mayor Ed Lee: He’s not so stubborn or egotistical. He’s willing to listen. And when something really, really doesn’t make sense, he’s willing to let it slide.

Not like Gavin Newsom.

If Newsom were still the mayor (ick! gasp!), he’d be desperately trying to keep together the deal that gave five pieces of the waterfront to the sixth richest person on Earth for more than two-thirds of a century. He’d refuse to admit that maybe the promises of vast wealth accruing to the city from what’s really an untested event might be a little lower than projected. He’s be sucking up madly to Larry Ellison, promising him more and more city money if only His Larryness would bestow the greatness of his hotel, restaurant and condo manna upon us poor lowly San Franciscans.

The current mayor has a little more sense. But then, I don’t think Ed Lee spends much time dreaming about the Oval Office.

So now that Ellison’s team realized they weren’t going to be guaranteed enough of a profit on waterfront development and Lee realized that giving away any more of the store, or rushing this through any faster, was bad for the city, we have a deal that’s based on San Francisco hosting a sports event, not on extensive real-estate development on the waterfront. It’s better than it was, and I give the mayor credit for that.

But a few things are worth remembering:

The proverbial devil is in the proverbial details, and right now they aren’t so proverbial. There’s the minor matter of about $15 million worth of upgrades and repairs to the waterfront that’s needed for the race — and the city’s on the hook for it. Right now, it’s not clear where that money’s going to come from.

One option: The city could go back to giving Ellison some property or development rights. The Chron quotes Jennifer Matz, the mayor’s economic development director, saying that the rights to Seawall Lot 330 are still on the table (bad, bad idea). Stephanie Martin, spokesperson for Ellison’s operation, told me there are no long-term development plans included at all. Maybe the city will just pay cash from the General Fund to Ellison (seems unlikely; I’d love to watch that Budget and Finance Committee meeting.) Maybe the Port will sell revenue bonds and pay Ellison out of the projected new income from the event.

Or maybe some other deal that will be bad for the city and good for Larry will emerge, and we’ll all have to fight that one.

I realize that, if the attendance figures are anywhere near what’s projected, the city will still wind up millions of dollars to the good.

But I still don’t understand: Why are we paying Ellison to hold his race here? Yeah, it will bring tourists to the city — but as former Sup. Aaron Peskin points out, we don’t pay the Navy to bring Fleet Week and the Blue Angels to town. If anything, we should be charging these folks for the right to use so much public property for their own commercial gain. (Yes, the America’s Cup involves commercial gain. Ellison does it because he loves yacht racing and likes to win shit, but you don’t think that giant Oracle logo in 80 million pictures in newspapers and on TV isn’t worth a whole lot of money?)

Why isn’t a guy who counts as one of this generation’s great industrialists, with a fortune rivaling the Rockefellers and the Morgans and that gang, donating anything at all to San Francisco? Those old robber barons built libraries and museums and stuff for the benefit of the public. Come on, Larry — step up and help out here. Do the race, defend your Cup, then give something back to the city instead of asking the taxpayers to cover your tab.

PS: I read Randy Shaw’s attack (if that’s what this odd little piece was) on Aaron Peskin, and I wonder — what’s wrong with being a maverick who works from the outside to try to defend the city’s interests? I don’t always agree with Peskin (see: Home Depot) but I can tell you: There are a lot of people inside City Hall who are really, really happy that he’s out there doing what he’s doing. If nobody on the outside was taking on the America’s Cup deal, the city would absolutely be worse than it is. Peskin’s trying to save the city money. Why is that a bad thing?

Here’s what made me really laugh, though: Shaw criticizes Peskin for failing to support Malia Cohen and Jane Kim for supervisor, saying that he could have been mayor if he’d been working for candidates who ended up winning. Huh? Don’t progessives usuall go after pols who sell out their principles for political gain? If Peskin thought that Debra Walker and Tony Kelly would be better supervisors than Cohen and Kim, shouldn’t he be working for them instead of thinking about his own political future?

Odd where Randy Shaw is going these days.

 

 

Dramatic change in the America’s Cup deal

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Mayor Ed Lee has announced dramatic changes in the deal for the America’s Cup race, essentially eliminating the massive real-estate development contract with Oracle CEO Larry Ellison.

Under the new agreement, the city will work with Ellison to host the race — but that’s about the beginning and the end of it.

“There is no long-term development,” Stepahnie Martin, spokesperson for the America’s Cup Event Authority, told me.

The previous deal, set for a Board of Supervisors vote Feb. 28, has been scrapped, so there won’t be any board action tomorrow, Judson True, an aide to Board President David Chiu, told me.

That deal would have given the world’s sixth richest person a swath of valuable waterfront property, with 66-year leases and development agreements, in exchange for Ellison investing millions in renovating the aging piers.

But criticism over what some called a huge giveway of public land was diverting discussion of the yacht race and threatened to undermine the city’s ability to serve as the venue host. Some supervisors were demanding more guarantees that the city wouldn’t lose money on the deal, and Ellison’s team was unwilling to budge.

In a Feb. 27 press release, Lee announced that the teams will be building a race village at Piers 27-29 and consolidating the boat launching facilities at Pier 80, on the southern waterfront. The race village will be temporary, and when the yachts leave, Ellison won’t have title to that property.

He won’t have title or development rights at Pier 80, either, and the plan to let him build on Piers 30-32, 26 and 28 as well as a lot across the Embarcadero appears to be dead.

So the America’s Cup is moving back to what it should be — a sporting event, a race on the Bay, and not some bloated development agreement that involves leases lasting more than half a century.

It’s still not clear how this happened — except that the numbers clearly weren’t working out for either side. The scaled-back agreement prevents the city from losing a fortune if the race doesn’t draw the anticipated crowds, and protects Ellison from losing money on waterfront development plans that regulators (including the Bay Conservation and Development Commission) might never have approved.

The city will still pay the ACEA about $16 million to fix a few things necessary to make the race work, and it’s not clear where that money will come from,

Aaron Peskin, a leading critic of the old deal, told me he’s cautiously optimistic. “It sounds promising, we’re getting this event down to the proper size,” Peskin said.

But he said that he hasn’t seen a written agreement “so it’s hard to tell what is and isn’t still in the deal.”

No mattter what the final agreement looks like, it’s clear that Ellison’s control of the future of the central waterfront has been radically reduced. And it’s clear that the deal former Mayor Gavin Newsom cut with Ellison wasn’t going to work for the city.

It also showed something that I’ve seen over and over again in these city deals with private parties: If the public refuses to go along, most of the time the Larry Ellisons of the world — the same people who insist they won’t move an inch and that the deal can’t be changed — will eventually back down.

 

 

Have conservatives hijacked the Small Business Commission?

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Is the Small Business Commission really advocating for small businesses, or has the commission been hijacked by bankers and real estate developers aggressively pushing a right-wing agenda of unchecked growth and cuts to government regulation, programs, and fees? And why has the Mayor’s Office stacked the commission with these ideologues and worked behind-the-scenes to keep them in leadership roles?

Those are just a couple of the questions that have been raised by Mayor Ed Lee’s recent effort to amend the charter to give this commission broad authority over the city’s legislative agenda, which was dropped in the face of widespread opposition, and by his office’s alleged calls to their appointees urging them to vote for developer Luke O’Brien as vice president and banker Stephen Adams as president (simply reversing the roles they had played last year).

Traditionally, sources say the commission has sought to balance leadership between the mayor’s four appointees and the three appointed by the Board of Supervisors. But these days, the Mayor’s Office (mostly Chief of Staff Steve Kawa, we’re told) and its appointees (which include two bankers and one developer), at the urging of pro-development groups Coalition for Responsible Growth (CRG) and Plan C, seems to want to consolidate their control and push their agenda.

Neither Kawa nor Press Secretary Christine Falvey would address our direct question about the Mayor’s Office interfering with the internal working of supposedly independent commissions, but the Examiner today had a story about the Mayor’s Office doing the same thing on the Planning Commission with its leadership vote this week.

“If the Mayor’s Office feels the need to interfere in commission votes, it interferes with internal commission matters and the spirit of the commission,” Board President David Chiu, who has been following the Small Business Commission dynamics, told the Guardian.

Outgoing commission member Janet Clyde, who runs the legendary Vesuvio bar in North Beach, said she has long been bothered by the changing tone and dynamics on the commission: “There is definitely an agenda that is driven by the Mayor’s Office, a more conservative view…There is a big business agenda in small business clothes.”

And she said that change has been pushed by Plan C, CRG, and other fiscally conservative groups that backed Lee’s mayoral campaign. “They really saw an opportunity to use the Small Business Commission to push their agendas.”

The CRG board includes three members of Murphy O’Brien Real Estate Investments, including O’Brien and Mel Murphy, who is a mayoral appointee to the Building Inspection Commission, where he also regularly advocates for real estate interests. CRG, which did not return our calls for comment, testifies regularly at City Hall in favor of development and against regulation. Clyde and current commission member Kathleen Dooley say O’Brien has been especially aggressive in pushing his ideological agenda.

O’Brien ignored repeated Guardian requests for comment, and when we finally reached him by phone, he said, “I have no interest in talking to you.”

In December, in his role as president, O’Brien called a special hearing to discuss the Eastern Neighborhoods Plan, the massive land use plan passed a few years ago after dozens of public hearings to work out its myriad complicated details and balance the preservation of light industrial properties with housing development, providing city services, and other considerations.

“This thing really needs to be thought out a little bit more,” O’Brien said at the hearing in a video clip that is prominently displayed on the CRG website.

Commission Executive Director Regina Dick-Endrizzi defended that hearing and others that have ventured into planning, regulation, and land uses issues that seem to be the purview of other city commissions. “Every business we talk to that wants to be in a brick-and-mortar space, it’s all about land use,” she said, noting that at the commission’s last annual retreat, “they decided to take a look at impact fees and their implications.”

She also noted that the city defines small businesses as having fewer than 100 employees, and that both developers and bankers are legitimate small business advocates, noting how important loans and other capital sources are to small business survival. Mayoral spokesperson Christine Falvey also defended the appointments and their focus: “The Commission has a diverse group of individuals to represent small business. The agenda is not controlled by any one group. There is a diverse group of voices and all deserve to be heard.”

Falvey also said it’s important to have bankers like Adams, a branch manager of Sterling Bank & Trust, on the commission: “The Mayor understands the important link between conventional banks and micro lenders. While there are moderate improvements in the lending environment, understanding the current status of access to capital is critical information for the Commission in its role to advise and make recommendations to the Mayor and Board of Supervisors on policy matters and City regulations that affect either the ease or difficulty in doing business in San Francisco.”

But progressive members of the Board of Supervisors – including Sup. Christina Olague, a mayoral appointee, in her recent interview with the Guardian – have regularly derided the narrow focus and ideological agenda of the commission, particularly its mayoral appointees. Some privately call it the “Small-Minded Business Commission.”

“We need some diversity on this commission. It can’t be all white men with a particular point of view,” Dooley said.

That could begin to happen on Tuesday when the Board of Supervisors is slated to replace two of its outgoing appointees, Michael O’Connor and Janet Clyde, with two that have been recommended by the Rules Committee: Monette White, who runs Food for Soul, “an upscale restaurant and holding company,” and William Ortiz-Cartagena, CEO of Gentle Parking, which managing parking lots in the city.

But that won’t go very far in changing a commission that seems focused on using the “small business” fig leaf to push a more broad and ideological pro-business agenda. Even Chiu, who is strongly pro-business, told us, “The Small Business Commission needs to be focused on the plight and issues of small businesses.”

Campaign cash roundup and questions about our sleeping watchdog

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Oliver Luby – the last true public-spirited employee at the Ethics Commission (a campaign lapdog when it should be a watchdog) before being forced out in 2010 – has written an insightful and comprehensive analysis of spending by candidates and outside groups during last year’s election. It’s published by CitiReport.

Among his findings are that the largely unregulated spending by supposedly independent third-party groups totaled $3.6 million, with $1.4 million of that going to support Mayor Ed Lee, and much of it coming so late in the race that voters weren’t able to factor its sources into their decisions.

Those outside groups spent almost as much to elect Lee as the campaign itself raised, which was almost $1.6 million. When those two figures are combined, and one subtracts the $419,891 in independent expenditure (IE) spending in opposition to Lee, the appointed mayor and his supporters spent $33.87 for each first place vote he received, or about 2.5-times that of second-place finisher John Avalos, whose $757,327 in “supportive financing” works out to $13.25 per vote.

Luby has long called for Ethics to get tougher on violators of campaign finance law, playing whistleblower at several key points in his career, starting in 2004 when he and then-staffer Kevin DeLiban exposed notorious campaign attorney Jim Sutton’s alleged scheme to illegally launder unregulated funds being collected for then-Mayor Gavin Newsom’s inauguration into paying off some of his $550,000 campaign debt.

In his latest piece, Luby again calls out his old bosses at Ethics for ignoring local laws against maxing out donations to many candidates in order to buy influence at City Hall. Donors are limited to an “overall contribution limit” that equals the maximum individual donation of $500 times the number of offices open, which was three in this election. It allows the city recoup from the campaigns money collected in excess of that, which Luby said totals $29,111 in this election.

“The SF Ethics Commission does not enforce this law. Supervisor Scott Wiener wants to help them get rid of it,” Luby wrote. Ethics Commission Executive Director John St. Croix was out of the office and hasn’t returned a Guardian call for comment.

Among those whose excessive contributions would be diverted to city coffers are Planning Commissioner Michael Antonini (perhaps the city’s most powerful Republican), PR powerhouse Sam Singer, medical marijuana activist Kevin Reed, political fundraiser Wade Randlett, city staffer-turned-developer Michael Cohen, moderate Democrat Mary Jung, and Coalition for Responsible Growth (a pro-development group) President Rodrigo Santo. Not surprisingly, they all contributed to Lee, whose campaign would be on the hook for the most in givebacks, $7,725, followed by David Chiu’s mayoral campaign at $4,700.

Finally, for all their talk about fiscal responsibility, Lee and his supporters couldn’t seem to live within their means in this election. Lee’s campaign finished about $275,000 in debt, while two of the pro-Lee IEs also finished in the red: SF Neighbor Alliance ($11,338) and Progress for All ($35,890), the ethically challenged creators of the “Run Ed Run” campaign that purported to talk Lee out of his pledge not to run for a full term in the office he’d been appointed to.

These are just some of the findings in Luby’s voluminous reporting, so check it.

Guardian editorial: The DA and mayoral corruption

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EDITORIAL The indictments of two executives of an airport shuttle company on charges of laundering campaign money are, in themselves, a rarity and something to celebrate: the district attorney of San Francisco is actually attempting to enforce the laws against political corruption. That’s unusual in this city, and worthy of note.

But at this point, the entire sum total of prosecutions involving the scandal-ridden campaign of Mayor Ed Lee amounts to a pair of cases against people who made what appear to be illegal contributions. As of today, the message that’s being sent is that nobody in the Lee campaign did anything wrong. And that seems a little bit curious.

Lee’s late entry into the race — after he’d promised for months not to run — and his refusal to abide by the rules of public financing forced his supporters to raise a large amount of money very quickly. There were so-called independent expenditure committees collecting donations and running parallel campaigns that, by law, should have been entirely distinct from Lee and his official effort. We’ve always been dubious about the supposed lack of coordination.

Then there were the well-documented instances of irregularities serious enough that every other candidate in the race asked for state and federal monitors to watch the election. Several eyewitnesses told local reporters that they saw volunteers for one of the supposedly independent groups filling out absentee ballots for voters, using a special template that ensured the votes would go for Lee. Some said they saw ballots being collected at a makeshift voting booth. In a video provided by the campaign of State Sen. Leland Yee, it appears that volunteers were both filling out ballots and placing them in bags — both clear violations of law.

Gascon’s announced investigations of all the allegations — but more than three months later, nothing has come of it. His office won’t confirm or deny whether investigations are ongoing or whether any further indictments may be forthcoming. But at the Chinese New Year Parade, Chinatown powerbroker and Lee ally Rose Pak announced that she had heard Gascon was investigating her.

There’s been plenty of time to collect evidence, and Gascon has a responsibility to let the public know, as quickly as possible, what’s happened to the rest of the allegations. If everyone in the Lee campaign is really innocent, and none of the independent groups supporting the mayor did anything wrong, he should say that, and present the evidence.

It doesn’t help Lee, the city, or the integrity of the voting process to have these cases drag out. Gascon needs to conclude them, expeditiously.

Who gets to live here?

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yael@sfbg.com

Housing policy — which determines who will be able to live in San Francisco — has been a hot topic at City Hall these days.

At a Board of Supervisors Land Use and Economic Development Committee meeting on Feb. 13, representatives from the Mayors Office of Housing (MOH) reported on the state of middle-income housing in San Francisco, at the request of Sup. Scott Wiener. “Middle class” people make up 28 percent of the city’s population, a 10 percent decrease in the past two decades, and to reverse that decline would cost about $4.3 billion in housing subsidies, or more than half the city’s annual budget.

Wiener, who insists that “middle income and low income housing are not mutually exclusive,” said he’s raising the issue because the needs of the shrinking middle class are not being addressed. But during the public comment period, a long procession of low-income residents say city housing policies have kept them on the brink of homelessness. The takeaway message was: don’t embark on new housing efforts until you can enforce the ones that are already in place.

Also underscoring the desperate state of many San Francisco residents, Assessor-Recorder Phil Ting released a report Feb. 16 that contains shocking statistics about invalid foreclosures and illegal evictions in San Francisco. Ting found that 99 percent of all foreclosure proceedings in San Francisco in the past four years have contained paperwork irregularities, and in 84 percent of cases, banks or lenders have committed fraud or broke other laws.

With the loss of the redevelopment agencies, Mayor Ed Lee’s proposal for a housing trust fund, renewed calls for more condo conversions, and a new focus on middle income housing incentives, the conversation on housing in San Francisco is heating up.

 

MOVING TOWARDS RENTAL

San Francisco’s housing market is 64 percent rentals and 36 percent ownership, according to MOH. So despite the focus of politicians and developers on homeownership, housing policy in San Francisco mostly involves renters, many of whom face myriad threats.

Rents can be so steep that market-rate rental housing is becoming increasingly accessible only for parts of the middle class and the highest income brackets in the city. People in San Francisco tend to pay a huge chunk of their income towards rent.

The federal Housing and Urban Development Agency considers it reasonable for a households to pay 30 percent of their income towards rent; but for the city’s very low income households, rent is typically nearly 60 percent of income. For middle income households, the average percent paid toward rent has increased since 1990, but remains below 30 percent.

Those people fall mainly into the middle-income bracket, those earning 80-120 percent of Area Median Income (AMI.) Planning Director John Rahaim said that for the very low-income population (0-50 percent AMI) all rental housing is “virtually off-limits.”

So, for the middle class, renting a place in San Francisco is tough. For the low and very-low income, it’s next to impossible. And that reality threatens the city’s diversity.

“The highest rent burden still falls on lower income residents, many of whom pay 70 percent of their income as rent,” Sup. Eric Mar, who also sits on the Land Use Committee, said at the hearing. “In my district, people have whole families living in their living room or extra bedroom.”

But things may be looking up for renters. MOH’ Brian Cheu said developers believe that the market trends are heading towards construction of new rental housing after being almost exclusively owner-occupied units for many years. Cheu said there are 725 rental units in the pipeline for the next five to ten years, more than twice the new housing units meant for ownership slated for that time period.

Most of this will be market rate housing, and thus still unaffordable for a good deal of the population. But for those making around 100 percent of AMI — the middle class that Wiener hopes to serve — there are more rental units on the way.

“Any increase in supply of rental housing would help,” said San Francisco Tenants Rights head Ted Gullickson, “because there’s been virtually no new rental housing built in San Francisco is last 20 years.”

Even as Wiener promised to continue to prioritize the needs low-income residents, the foreclosure crisis was barely acknowledged at the Feb. 13 hearing. Many low-income residents say they are not sure they can trust the city’s claim that “this is not a matter of us vs. them.”

At public comment, many community members spoke of the housing troubles that they were already facing. Yue Hua Yu, who spoke at the Feb. 13 hearing, lives with her family of four in a single residency occupancy hotel room (SRO), units intended for single occupants.

“We would support a policy that protects the city’s affordable housing stock,” said a statement from Wing Hoo Leumg, president of the Chinatown Community Tenants Association.

Renting may be the realistic choice for most San Franciscans, but homeownership remains an important goal and achievement for many families, and the main obsession of many politicians.

Part of the middle class exodus is unmistakably due to better homeownership rates in Oakland, Daly City, Marin, and other surrounding areas. But there are neighborhoods with higher rates of homeownership than others, including Bayview-Hunters Point.

BHP has long been a prime spot for low-income homeowners, but it’s slated for extensive new housing construction in the coming decades that could compromise its affordability. It is also an area hit hard by the foreclosure crisis: there have been 2,000 foreclosures in Bayview in the past four years, according to Ed Donaldson, housing counseling director at the San Francisco Housing Development Corporation.

Rising prices and the foreclosure crisis have played a large part in the large-scale African American out-migration that has devastated San Francisco communities in recent decades.

 

 

APARTMENTS OR CONDOS?

One of the biggest points of controversy in the homeownership debate has been the issue of condo conversion, which was brought up again this past week at the Feb. 14 Board of Supervisors meeting, when Sup. Mark Farrell asked Lee if he would support legislation to let 2400 tenancy-in-common (TIC) owners bypass legal limits and fastrack towards condo conversion.

Farrell framed this as “a vehicle to allow residents of our city to realize their goal of homeownership.”

On Jan. 16, the city held its annual condo conversion lottery, in which 200 lucky TIC owners win the chance to convert their units into condos, thereby legally becoming homeowners. TICs and condo conversion have long been fraught with controversy in San Francisco, where there is never enough housing for everyone who wants it.

Condo conversion proponents say that turning a TIC — usually a building that used to be rental housing that has been purchased by a group of people that own it in common — into condos is a cheap way to become a homeowner in a city as expensive as San Francisco.

But tenants rights advocates have long opposed this process on the basis that it depletes the city of its rental housing stock. “When you have more condo conversions, you have more evictions, and it’s harmful to low-income residents” Gullicksen said.

This controversy, and the struggle to maintain a balance between opportunities for homeownership and reasonable rents has raged in San Francisco for years. In 1982, the Board of Supervisors passed a limit of 200 condo conversions per year as a compromise. There are no regulations, however, on converting rental housing to TICs.

“This has come up almost every single year for years and years about this time,” said Peter Cohen, organizer with the Council of Community Housing Organizations.

This year, however, proponents are not simply reiterating a request to bypass the condo conversion lottery. Plan C, a coalition of San Francisco moderates, is pushing for adding a fee to condo conversion, ranging from $10,000 to $25,000, which would go towards an affordable housing fund.

Mayor Lee said that he is open to considering a change in condo conversion policy, “providing it balances our need for revenue for affordable housing, the value that responsible homeownership brings to the city, and the rights of tenants who could be affected by a change in policy.”

 

WHOSE TRUST FUND?

This comes at a time when the city is facing a loss of millions per year for affordable housing with the dissolution of the redevelopment agency (see “Transfer of power, Jan. 31).

That dissolution led to Mayor Lee’s plan for an affordable housing trust fund, to be voted on as a ballot measure this November. The kick-off for that plan also began recently, with a press conference and big-tent meeting to discuss what it might look like.

On the day after the Land Use Committee meeting, where he started the conversation on “middle class” housing, Wiener posed a question to Lee at a Board of Supervisors meeting, asking how the mayor plans to “ensure that the housing trust fund that comes out of the process you have convened will meaningfully address the need for moderate/middle income housing.”

Some are concerned that too much of the trust fund could be allocated outside low-income demographics. “There’s a limited size pie of resources,” Cohen said. “Just in a matter of the last months, we lost the redevelopment agency. The city is madly scrambling to try to replace that through housing trust fund, and working to get us back to somewhere close to where we were…Is that pie, that has dramatically shrunk, going to be stretched further for another income band?”

That question will be important when the proposal goes to vote in November. According to Donaldson, many low-income homeowners will not vote for the measure unless it addresses their needs. The specifics of the measure calling for the trust fund are still being worked out. But, it will likely be funded by an increase of the transfer tax paid when homes change ownership.

Yet that proposal was the subject of an unusual political broadside from the San Francisco Association of Realtors, which last week sent out election-style mailers attacking the idea. “Brace yourself for an unexpected visit from the city’s tax collector,” the mailer warns, showing the hand of government bursting through the wall of a home, urging people to contact Lee’s office.

The measure may also see opposition from low-income communities, especially if, as Wiener has urged in the past week, it allocates a chunk of funds towards middle-income housing.

“It’s hard to find people who will support it. They’re saying, ‘what’s in it for me? Why would I vote for a transfer tax that I’m going to have to pay to help finance the building of affordable housing or middle-income housing. Why support programs that will support middle income people, who make more money than existing homewoners?” explained Donaldson. To agree on a way forward for housing in San Francisco, policymakers will need to reconcile a range of interests. In the worst-case scenario, the profit interests of realtors and developers will overtake the interests of San Francisco families struggling to continue to live in the city they love. But housing advocates are willing to work together to come to a solution. “Let’s put everything on the table, and let’s figure it out. In the spirit of cooperation, and with the understanding that each respective constituent group is not going to get everything that they want, but let’s put all the cards of the table,” said Donaldson.

Editor’s Notes

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“San Francisco’s economy is moving in the right direction,” Mayor Ed Lee told the Examiner last week. “My economic development and job creation policies are setting San Francisco on a path toward economic recovery.”

The normally modest mayor is making a rather sweeping statement there — the US economy is improving in general, and I don’t think the mayor can take credit for all of it. But he’s absolutely correct that he’s promoted policies that are aimed at bringing more tech companies in to San Francisco, and over the next few years, they will no doubt create a lot of high-paid jobs for people with specific skills that require a high degree of training and education.

Is that “the right direction” for the city? I lived here the last time that San Francisco was part of a tech boom, and I’m not so sure.

See, bringing all sorts of new wealth into town sounds good on the surface, and for some people — particularly real-estate speculators, landlords and purveyors of high-end services — it is. But in a city that has limited space and nearly unlimited demand for housing, lots of new rich people and lots of high-paid people looking for places to live puts pressure on the existing residents, particularly the poor and the working class. It screws the middle class, too — if you’re a teacher or a nurse and you want to buy a house in San Francisco during a boom, you’re S.O.L. You can barely afford to rent — and if you’re already renting, you’re constantly at risk of losing your home, and your ability to live in this city, because your landlord can make more money kicking you out and selling the place as a tenancy in common to someone with more money.

There’s no way to build enough new affordable rental housing, or housing that middle-class families can buy, to keep up with the demand. It’s impossible. Developers won’t do that — there’s too much money to be made in high-end housing for anyone in the private marketplace to waste time on anything else.

The only way to preserve the middle class in the upcoming boom that Lee is promoting is to aggressively protect existing rental housing stock — which means preventing condo conversions and TICs and the stuff that gets promoted as “middle-class housing.” The only way to prevent massive displacement of people and existing businesses is to regulate space in the city more tightly than anyone has ever done — which will, by its nature, make it harder for the newcomers and new millionaires to find places to live.

That’s the tradeoff. That’s the fact that Lee and his allies don’t seem to want to grasp

Gascon and mayoral corruption

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EDITORIAL The indictments of two executives of an airport shuttle company on charges of laundering campaign money are, in themselves, a rarity and something to celebrate: the district attorney of San Francisco is actually attempting to enforce the laws against political corruption. That’s unusual in this city, and worthy of note.

But at this point, the entire sum total of prosecutions involving the scandal-ridden campaign of Mayor Ed Lee amounts to a pair of cases against people who made what appear to be illegal contributions. As of today, the message that’s being sent is that nobody in the Lee campaign did anything wrong. And that seems a little bit curious.

Lee’s late entry into the race — after he’d promised for months not to run — and his refusal to abide by the rules of public financing forced his supporters to raise a large amount of money very quickly. There were so-called independent expenditure committees collecting donations and running parallel campaigns that, by law, should have been entirely distinct from Lee and his official effort. We’ve always been dubious about the supposed lack of coordination.

Then there were the well-documented instances of irregularities serious enough that every other candidate in the race asked for state and federal monitors to watch the election. Several eyewitnesses told local reporters that they saw volunteers for one of the supposedly independent groups filling out absentee ballots for voters, using a special template that ensured the votes would go for Lee. Some said they saw ballots being collected at a makeshift voting booth. In a video provided by the campaign of State Sen. Leland Yee, it appears that volunteers were both filling out ballots and placing them in bags — both clear violations of law.

Gascon’s announced investigations of all the allegations — but more than three months later, nothing has come of it. His office won’t confirm or deny whether investigations are ongoing or whether any further indictments may be forthcoming. But at the Chinese New Year Parade, Chinatown powerbroker and Lee ally Rose Pak announced that she had heard Gascon was investigating her.

There’s been plenty of time to collect evidence, and Gascon has a responsibility to let the public know, as quickly as possible, what’s happened to the rest of the allegations. If everyone in the Lee campaign is really innocent, and none of the independent groups supporting the mayor did anything wrong, he should say that, and present the evidence.

It doesn’t help Lee, the city, or the integrity of the voting process to have these cases drag out. Gascon needs to conclude them, expeditiously.

Lackluster finish to case that made serious political charges

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A jury awarded the City and County of San Francisco $24,498 yesterday following its deliberations of a complicated civil case filed by the city in 2003 against a minority-owned computer services company accused of fraud and breach of contract, a company that countersued with a claim of being harmed by top city officials.

But that paltry sum and the jury’s verdict of shared responsibility in failing to root out corruption in city government belied the more politically significant accusations made through depositions in the case that Mayor Ed Lee and former Mayor Willie Brown overrode city staff to give contracts to a “fraudulent” yet politically connected company, which proved to be a tangential issue that was left largely unexplored at trial.

In CCSF vs. Cobra Solutions, the jury found that both the city and Cobra Solutions failed in their responsibilities to prevent a former Department of Building Inspection information technology manager, Marcus Armstrong, from fraudulently bilking the city out of at least $482,000 between 1999 and 2001. An alleged Armstrong accomplice, Government Computer Sales, Inc. – which witnesses said Brown and Lee improperly certified, and which they say they don’t remember – fled and was never brought to justice.

Cobra Solutions, which was awarded master contract status in 1998, was bound by a provision in its agreement with the city that required Cobra to “supervise” sub-contractors. The allegation of fraud against Cobra, however, was effectively dropped from the city’s complaint, but not until the end of the trial when consideration of fraud was omitted from the city’s closing arguments.

The award to the city was the difference between the monies paid by the city to Cobra Solutions ($269,739.93) and the monies paid by Cobra Solutions to Armstrong’s phony companies ($245,241.93), or the markup Cobra Solutions received from the city following the submission of several fraudulent invoices from two phony sub-contractor companies, Monarch Enterprises and Mindstorm technologies, set up by Armstrong.

Following the verdict announcement, a juror who did not want to be identified, said there wasn’t a single piece of evidence that was most compelling, but that, “the city proved its case. Cobra failed to prove its case.” The “vast majority” of jurors shared that opinion, the juror said. “It wasn’t even close.”

“The jury thought there was obviously a failure to supervise,” the juror continued. “[Cobra Solutions] took on work without even knowing who the party was that was working for them. Who was Monarch?”

Several invoices from Armstrong’s phony companies contained different addresses that the juror described as “a bit of a red flag.”

“If I’m in business, I’m not going to have someone working for me who I don’t know, and I’m not going to be paying them checks,” the juror said.

“The city also bore responsibility” in its failure to detect Armstrong’s kickback scheme, the juror said, mirroring the same sentiment echoed by then-City Controller Ed Harrington, who took the stand and conceded the city’s internal controls – as well as those of Cobra Solutions – failed to detect Armstrong’s kickback scheme.

Cobra had sought damages for breach of contract (the city’s failure to pay monies owed Cobra) and due process violations in connection with the city’s alleged debarment of Cobra from doing further business with the city.

“I’m disappointed,” said Cobra Solutions founder and president James Brady. “Life goes on. We’ll continue to move forward and repair our damaged reputation, raise our grandchildren, and focus on our families.”

Asked about the issue of sub-contractor supervision, Brady said, “I don’t think anybody could supervise a con man and the city was negligent in hiring this guy – they wouldn’t even bring him in the courtroom – so it’s just betrayal. And it’s a sad day that you hire con man and you won’t take any responsibility for his actions and you blame the small business. That’s not the American way.”

On the jurors finding that Cobra was not intentionally or defacto debarred from doing further business with the city, Brady said, “I think they got it wrong. I have no doubt about that.”

“The jury missed a lot of important facts,” said Mr. Brady’s wife, Deborah Brady, a co-founder of Telecon, the parent company of Cobra Solutions. The city had originally sued Telecon in its case-in-chief, but pursued no claims against Telecon at trial. “I don’t know how they missed them, but they missed them.”

Ms. Brady said the city gave another company, Desktop, the opportunity to defend itself against debarment, but “they never gave us that opportunity.”

“Judith Blackwell, she told the whole story in terms of Monique Zmuda saying they wanted us out, that we’re crooks,” Ms. Brady continued. “They accused us… and never gave us the opportunity to respond, ever.” Monique Zmuda is the deputy City Controller.

“I feel really betrayed by a city that I used to really love and [City Attorney] Dennis Herrera, who is our private attorney, betrayed us,” a tearful Ms. Brady said. “Ed Lee, who claims he barely knew us, betrayed us. Ed Harrington? I don’t know what that was all about, or Monique Zmuda… but Ed Lee and Dennis Herrera, they let down really good people who used to live in this city and loved this city and did all that we could to do good in the community and this city. “

“So I pretty much call it, ‘The City of Betrayal.’”

Cobra’s lead counsel in the case, Whitney Leigh, told us, “The jury made its decision. We’re concerned that the jury was allowed to find that Cobra could have breached the contract by refusing to submit to an audit by the City Attorney. So we believe there are some issues that need to be researched, so we’ll be looking at those issues.”

Asked if there would be post-trial motions, Leigh said, “Post trial motions and/or appeal.”

“Obviously we’re disappointed,” Leigh added, “but we’ll review the transcripts and see what options are available.”

Because of the possibility of an appeal, Herrera was unable to comment on the verdict or to discuss city’s costs in trying the case, said Herrera spokesperson Matt Dorsey.