Real Estate

SF vs. Frank Lembi

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news@sfbg.com

One of San Francisco’s largest and most notorious landlords and the many shell corporations under his control have been withholding money from their tenants, the banks that financed their rapid real estate acquisitions, and even San Francisco’s public treasury.

But while the banks have acted, seizing property from the delinquent borrowers, city officials have let Skyline Realty, CitiApartments, Lembi Group, and related corporations stonewall the city and pay far less property taxes than they should have owed, depriving city programs of hundreds of thousands of dollars.

The various corporations run by real estate mogul Frank E. Lembi (who has not returned our calls seeking comment) have earned a terrible reputation in San Francisco, even as they’ve expanded their rental property holdings in recent years.

An award-winning, three-part Guardian series ("The Scumlords," March 2006) documented how the companies used intimidating goons and an arsenal of nefarious tactics meant to drive out low-income tenants from rent-controlled units, prompting City Hall hearings and an ongoing lawsuit against the enterprise by the City Attorney’s Office.

Then, earlier this year, many tenants joined a class action lawsuit against the Lembi enterprises, alleging the landlords have been illegally withholding deposits from departing tenants as a routine business practice, even after admitting that the tenants were entitled to full refunds (see "CitiApartments once again accused of mistreating tenants," Politics blog, July 15).

Attorneys for the firm Seeger Salvas LLP filed the complaint, which tells several appalling stories, including that of Joy Anderson. When Anderson went to retrieve the deposit she was owed, CitiApartments employees allegedly threatened her in front of her eight-year-old son, telling her that if she wanted her money back, she should talk to a lawyer.

Yet in that lawsuit and the one filed by City Attorney Dennis Herrera, which deals with harassment of tenants and other business practices that the city contends are illegal, Lembi’s empire has refused to cooperate, employing a variety of delay tactics. The city’s lawsuit has been stuck in the discovery process for years.

A court filing by the city alleges Lembi’s enterprise has participated in "well over a year of discovery gamesmanship." New counsel for the defendants has promised to speed things up, but Herrera told us it is still an ongoing battle. "It has been incredibly hard to get documents and information in this case. He’s been stonewalling us," Herrera told the Guardian.

Seegar Salvas attorney Brian Devine said six defendants named in his complaint didn’t respond to discovery requests and were found to be in default by the judge, meaning they basically opted not to contest their culpability. Meanwhile, 75 other defendants did respond but haven’t turned over any documents to the plaintiffs, dragging out the discovery process.

"It’ll take sometime for anything to happen," Devine told us. "There’s no Matlock moment where it all comes to a head. There are a lot of procedures to go through."

And apparently the Lembi enterprises know a little something about how to use legal and bureaucratic procedures to hang onto their money for as long as possible, judging from how they’ve worked the process to avoid paying the full amount of property taxes on their holdings.

At last count, there were 13 property foreclosure lawsuits pending on Lembi properties because he couldn’t pay the loans. The banks have seized many of his properties and started selling them off. But while the banks are getting their due, the Assessor’s Office and city taxpayers seem to be getting stiffed.

Lembi has been on the radar of city officials for quite awhile, but he is still managing to avoid getting some of his recently purchased properties reassessed, according to a Guardian investigation of city records. For example, one Lembi-controlled corporation — Trophy Properties X — snatched up a Russian Hill parking garage for $4.7 million in 2007.

Under Proposition 13, that property should have been reassessed when it was purchased, but it wasn’t. The current taxable price tag on the property is still slightly more than $443,000, a gap that costs the city upwards of $50,000 a year in taxes.

In general, property is reassessed at fair market value when there is a change in ownership, increasing the taxes owed on the property. According to the California Board of Equalization, the purchase price is the basis for reassessed value in most cases, although officials can also take into account comparable sales and other factors to increase value even more.

Yet nearly three years later, this property still hasn’t been reassessed.

Assessor-Recorder Phil Ting told the Guardian the reason for the delay is because Lembi hasn’t been cooperative in providing the information needed to do a reassessment. We obtained an October 2007 letter sent out by the Assessor’s Office requesting Lembi’s limited liability corporation provide information on the acquisition of the property and statistics on the garage itself. That letter and others went unanswered.

Common sense suggests that the sale price be used to reassess the garage and be done with it. Yet Ting said he fears that using that price would result in an inaccurate reassessment, which in turn might screw up the amount of taxes the city could ultimately collect. Then again, simply waiting on the unresponsive Lembi enterprise has resulted in less taxes being collected on the parking garage last year and again this year, according to public tax records.

"We try to get it right the first time. If we don’t get it right the first time, then oftentimes it creates a lengthier appeals process and a much lengthier, more adversarial [relationship] between us and the taxpayer," Ting said. "We absolutely don’t want to reassess that property too low because of Prop. 13. You only get one chance, so you have to be high."

Ting told us that the only recourse he has with an uncooperative taxpayer like Lembi is to reassess using information from similar properties in the same area. Once this is done, the negligent taxpayer can either agree with or challenge the new market value, a move that would switch the burden to Lembi. But that wasn’t done for the Russian Hill parking garage.

"That’s the only recourse we have, meaning that we can’t fine them; we can’t subpoena them; we can’t force them to give us the information," Ting said. "By law, they’re supposed to give us the information. But there are no real enforcement powers behind it."

According to Section 480 of the Revenue and Taxation Code, the assessor does have an option and can levy a penalty if a property owner fails to file a change in ownership statement, which can be up to 10 percent of the taxes due on the newly appraised value.

Several other Lembi-controlled properties have been reassessed recently after a delay, including 19,650-square-foot apartment building down the street from the parking garage at 2238 Hyde St. Before the reassessment, the property was valued at a little over $1 million. The current value is $11.7 million, which amounts to a tax bill of more than $137,000 this year.

Lembi bought the building in December 2005, and the Assessor’s Office got in just under the wire of the four-year statue of limitations for reassessments. Last year the taxes paid on the building came to a little more than $13,000, based on its previous $1 million value.

Then there is the 31,812-square-foot apartment building on 1735 Van Ness Ave. that Lembi bought back in June 2006. According the city records, the taxes paid last year on the property were nearly $48,000 based on a market value of $3.9 million. Recently the building was reassessed with a value of $9.6 million. This year’s taxes amount to more than $114,000. Whether or not the Van Ness Avenue building is a case in which the Lembi Group also withheld information is currently being looked into by the Assessor’s Office.

Yet on the Russian Hill parking garage, Lembi is still getting away with withholding the necessary documents for an accurate reassessment — and time is running out. In a little over a year, the statue of limitations runs out and the city will no longer be able to collect anything from Lembi.

Further complicating the city’s efforts to collect is the fact that some other the properties in question have been foreclosed on.

When the Russian Hill garage and other Lembi properties went back to the banks, the Assessor’s Office looked into what could be done to collect the city’s lost revenue. Its solution: a transfer tax. But that was not an option because the bank held the main mortgage, so it wasn’t considered a change of ownership.

Even though the parking garage and other properties have slipped out of Lembi’s control, he is still responsible for the taxes on them during his period of ownership, according to Ting. But given the experiences of others who have tried to collect money from Lembi, that could be a long, expensive process.

While the Lembi enterprises may be stingy in giving the city and tenants their money, they haven’t had a problem making political campaign contributions. Taylor Lembi, grandson of Frank, gave $500 to Mayor Gavin Newsom’s reelection campaign in 2006, according to public campaign contribution records, although Newsom’s campaign offices returned the money exactly two months later (Newsom’s campaign office didn’t respond to our questions about the contributions or reason for returning it).

Skyline Properties, parent of Skyline Realty, also donated $100 to Newsom’s initial mayoral campaign in 2003, and supported Mayor Willie Brown before that. Lembi continues to be a prominent landlord, the subject of a sympathetic profile by the San Francisco Apartment Association in August 2008.

Yet with lawsuits mounting, the banks foreclosing, and the real estate market slumping, the multigenerational Lembi empire that once controlled more rental units in San Francisco than any other entity appears to be in trouble.

And lest anyone slide under its control unaware, the Lembi empire’s many enemies have organized into a group called CitiStop, supported by groups that include the San Francisco Tenants Union and Pride at Work, which argues that "nothing frightens CitiApartments more than knowledgeable tenants."

www.citistop.live.radicaldesigns.org/index.php

www.sfaa.org/aug2008/0808chapleau.html

The Monster

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El Monstruo: Dread & Redemption In Mexico City is a perverse love letter to the most contaminated, crime-ridden, corrupt and conflictive urban stain on the western side of the planet, where I have been touched to live for the past quarter of a century. My life is now hopelessly entangled with the life of this monster of a megalopolis.

El Monstruo was indeed a monstrous book to write. The slagheap of materials that I sucked up — hundreds of volumes of history, slagheaps of newspapers, mountains of personal recollections — fill my threadbare room at the Hotel Isabel in the old quarter of this city from floor to ceiling. The narrative I have assembled spans 50,000,000 years give or take a few minutes, dating from the Paleocene to last spring’s Swine Flu panic with significant stops for the doomed Aztec empire, the war of liberation from Spain, the Mexican revolution of 1910-1919, the student massacres of the ’60s, the Great 1985 earthquake, and the erratic governance of the electoral left for the past 12 years.

It is a long story.

The Mexican Revolution was in many ways a war against Mexico City, a capital for which the rest of the country was named and from which all power continues to radiate. The great revolutionary leaders Emiliano Zapata and Pancho Villa viewed Mexico City as a Sodom & Gomorrah that had to be destroyed if the country was to be redeemed and they did their best to do so. The excerpt that follows speaks to the Monstruo on the eve of the downfall of dictator Porfirio Diaz and the inception of the first great revolution of the landless in the Americas.

WHAT THE LAND WAS LIKE

Back home in Morelos, Emiliano Zapata was elected village leader, entrusted to recover Anenecuilco’s lost lands, granted to the Indians by the Crown in the 17th century. The sugar planters, many of whom were foreigners, had gobbled up the Nahuas’ land and water without remorse.

“Land and Water” was in fact the slogan of Madero ally Vicente Leyva’s campaign for governor of Morelos in 1909 against Díaz’s gallo (rooster), Pablo Escandón, the scion of an immensely wealthy criollo family that had first struck it rich in real estate during Juárez’s Reform, and also a sugar planter who rarely bothered to visit the tiny state. Zapata aligned Anenecuilco’s fortunes with Leyva and Madero. Escandón won by a landslide of course, without ever having to leave El Monstruo. To Zapata, Escandón WAS El Monstruo.

By 1910, 2 percent of all Mexicans owned all the land—save for 70 million hectares held by foreigners with family names like Rockefeller and Hearst and Morgan. One hundred percent of the good farming land in Morelos was occupied by 17 haciendas operated by absentee patrones (bosses). The haciendas sucked up all the groundwater, leaving villages like Anenecuilco dry as a bone. The unequal distribution of water continues a century hence. Wealthy Chilangos have overrun Morelos with their golf courses and palatial second homes, leaving the villages just as thirsty as they were in 1910.

Years ago, I rented a large house in Olintepec, a colonia that shares ejido land (communal farmland) with Anenecuilco, and was able to see how the land must have looked to Zapata when he rode through these fields. I walked out through the tall sugar cane along the irrigation canals to the Caudillo’s humble adobe home, now a museum, on a back street in Anenecuilco, and each young horseman barreling down the country lanes could have been the Caudillo all over again.

But an hour and fifty-five minutes later, when I stepped down off a bus in the belly of the Monstruo, the urban hurly-burly swirling all around me, I always got a whiff of the profound culture shock Emiliano Zapata must have suffered when he was forced to visit this city he so detested.

MADERO’S REVOLUTION

Francisco Madero’s call for the revolution to commence November 20, 1910, stirred sparse response. Up in Puebla, Díaz’s agents murdered Madero’s lieutenant, the revolutionary shoemaker Aquiles Serdán, and his family, two nights before the festivities were slated to kick in. In Morelos, Zapata and the peasant army he had assembled bided their time, waiting to see who would make the first move first.

Mexicans are never on time. Finally, in January, Doroteo Arango AKA Francisco “Pancho” Villa, a popular Chihuahua desperado of Hobsbawmian proportions, and his ruthless cohort Pascual Orozco, declared themselves in revolt and were immediately joined by the Maderista governor of Coahuila, Venustiano Carranza and his “Constitutionalist” Army. Díaz’s Federales were beaten back at Ciudad Guerrero, Mal Paso, and Casas Grandes. Villa laid siege to Ciudad Juárez on the border, the vital railhead that linked Mexico City to the United States and was the lifeblood of the country’s commercial transactions.

By February 1911, with the synchronicity that sometimes made the Mexican Revolution work, the Zapatistas had advanced to Xochimilco. Workers in the heart of the city suffering from what the Porfirian rag El Imparcial tagged ”huelga-manía” or strike fever, declared seven major strikes that paralyzed the Monstruo in 1910–1911. Demonstrators were emboldened enough to assemble in the Zócalo and shout “Death to the Dictator!” beneath Don Porfirio’s balcony by spring. Others menaced his mansion on Cadena Street in the Centro Histórico and were repelled by the gendarmes.

Pablo Escandón fled Mexico for Europe, kvetching to the press that Mexico had fallen into “niggerdom.” Don Porfirio’s class of people was stunned by this threat to their carefree lives and comforts. Indeed, the leisure class had not changed all that much from when the criollos and Gachupines cowered inside the city as Hidalgo’s Indiada advanced on El Monstruo.

After three and a half decades in power, the Dictator remained a figure of adoration in the mansions of La Condesa. For the university students, largely the sons of the ruling class, Don Porfi was the epitome of modernity. To them, Villa and Orozco and Carranza were the Barbarians of the North, Zapata the Attila of the South, and they cast the Dictator as the savior of civilization as they knew it.

But the old man was 81, and it hurt just to keep a stiff upper lip. The medals weighed heavily on his chest. He knew in his heart of hearts what his adorers could not admit—the jig was really up. Ciudad Juárez was days away, even via the modern rail system he had built, and the army’s mobility to supply his troops was restricted. Don Porfiriopochtli, as political cartoonists were drawing him now, had, like the Aztecs, expanded his empire to a point where he could no longer defend it.

In May, the Dictator sent his vice president, Francisco León de la Barra, to the north to negotiate an easy exit to his 34 years on the throne of Mocuhtezuma, and on May 24, 1911, having brokered an agreement with Madero that León de la Barra would remain as provisional president for the next six months, the old man set sail from Puerto, México, for Paris, France, aboard the German steamer Ypringa with this famous caution: “The wild beasts have been loosed. Let us see who will cage them now.”

Wild celebrations broke out in Mexico City as if to underscore the old man’s dictum—15,000 workers invaded the Chamber of Deputies and marched on the National Palace, where the Dictator’s police opened fire, wounding scores. The offices of the Porfirian mouthpiece El Imparcial were set afire. By July, the Monstruo was shut down by a general strike. The wrath of the Mexicans had indeed been loosed, and Madero’s intentions to cage it up again would dictate the next phase of Mexico’s cannibal revolution.

THE GODS ARE SKEPTICAL

After a discreet pause to make sure the old man was really gone, Francisco Madero started off on the long train ride from Ciudad Juárez to Mexico City in early June. There were many treacheries up ahead and he had plenty of time to consider his options as the train lurched from state to state. As he passed through Zacatecas and Aguascalientes, jubilant mobs overran the train depots waving Mexican flags and shouting “¡Vivas!” until they were hoarse and Madero’s train long out of sight.

The presumptive president of Mexico arrived in the capital at Buenavista terminal, the great northern station, on the morning of June 9, and the tumult was overwhelming. Kandell compares it to Juárez’s return to rekindle the republic. I stare at the news photographs. People are excited, even exhilarated. They push and jostle for a view of the little Lenin look-alike. But some are more reserved. They stand back from the jubilant throng. They have come more out of curiosity than conviction. Their faces seem to ask, what next?

From Buenavista, Madero rode through the city in a Dupont motorcar, the sidewalks bursting with well-wishers and flag wavers. Many residents of the metropolis were relieved not so much because of the hope the little man brought with him as for the fact that this change of power had taken place with a minimum of damage to themselves and their city.

When Madero entered the old city for the final jog to the National Palace, he mounted a white horse. In the Palacio, he met with León de la Barra and they reaffirmed their bargain—Porfirio’s stooge would govern for the next six months while Madero campaigned for presidential elections set for November 2. The two emerged on the president’s balcony and “¡Vivas!” erupted from the joyous mob that filled the Zócalo below.

But the old Gods of Tenochtitlán were skeptical about Francisco Madero’s grasp on the presidency. At 6:00 that afternoon they rendered their verdict, upstaging his triumphal arrival in the capital with a deadly earthquake that surged out of the Pacific Ocean along the Jalisco coast and wrought havoc throughout that western state, killing 400 in Zapopan and setting off the Volcano of Colima before smashing into the north of Mexico City and leveling Santa María de la Ribera and San Cosme. There were no Richter scales in those days to measure the quake, but an uncounted number of lives were lost in the capital—perhaps hundreds, reported El Imparcial, which published three extras that day but paid scant attention to Madero’s arrival, burying the story beneath the fold.

Hear Ross read from El Monstruo and sign copies Nov. 18 at Modern Times, 888 Valencia, 7:30 p.m.

Music listings

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Music listings are compiled by Paula Connelly and Cheryl Eddy. Since club life is unpredictable, it’s a good idea to call ahead to confirm bookings and hours. Prices are listed when provided to us. Submit items at listings@sfbg.com.

WEDNESDAY 7

ROCK/BLUES/HIP-HOP

Bad Girls Go to Hell, Street Score, Battery Powered Grandpa, High School Parties Rickshaw Stop. 8pm, $5.

Tia Carroll and the Hardwork Biscuits and Blues. 8pm, $15.

Highhorse, Famous, Eric Shea and the High Deserters El Rio. 8pm, $5.

Little Junior Davis and the Knucklehead Blues Hounds Rasselas Jazz. 8pm, free.

Lotus, Break Science Independent. 9pm, $1-20.

Kermit Lynch and His Band Great American Music Hall. 7pm, $125.

Mimicking Birds, Kathryn Anne Davis Hotel Utah. 9pm, $7.

Mudbug Coda. 9pm, $7.

Mumlers, Emily Jane White, Osage Orange Hemlock Tavern. 9pm, $7.

No Use for a Name, Perfect Machines, Rockfight Thee Parkside. 8pm, $10.

People Under the Stairs, Kenan Bell Slim’s. 9pm, $16.

Starfucker, Deelay Ceelay, Strength Bottom of the Hill. 9pm, $10.

Andrew W.K. and Calder Quartet Café du Nord. 8pm, $25.

Witness the Horror, Hukaholix, Murderess Annie’s Social Club. 8pm, $6.

JAZZ/NEW MUSIC

Cat’s Corner Savanna Jazz. 7pm, $5-10.

Katona Twins Hotel Rex, 562 Sutter, SF; (415) 398-6449, www.performances.org. 6:30pm, $20.

Ben Marcato and the Mondo Combo Top of the Mark. 7:30pm, $10.

Realistic Orchestra Yoshi’s San Francisco. 10:30pm, $14.

Carlos Reyes Yoshi’s San Francisco. 8pm, $20.

Tin Cup Serenade Le Colonial, 20 Cosmo Place, SF; (415) 931-3600. 7pm, free.

FOLK/WORLD/COUNTRY

Bluegrass Country Jam Plough and Stars. 9pm, free. With Jeanie and Chuck.

Gaucho, Michael Abraham Jazz Session Amnesia. 8pm, free.

New Directions in Indian Classical Music Climate Theater, 285 Ninth St., SF; (415) 704-3260. 8pm, $7-15.

DANCE CLUBS

Afreaka! Attic, 3336 24th St; souljazz45@gmail.com. 10pm, free. Psychedelic beats from Brazil, Turkey, India, Africa, and across the globe with MAKossa.

Bizarre Love Triangle Elbo Room. 9pm, $5. Eighties dance party with DJs Anso and Choice.

Booty Call Q-Bar, 456 Castro; www.bootycallwednesdays.com. 9pm. Juanita Moore hosts this dance party, featuring DJ Robot Hustle.

Dubstep vs. Disco Poleng Lounge. 10pm, $5. Featuring In Flagranti.

Hands Down! Bar on Church. 9pm, free. With DJs Claksaarb, Mykill, and guests spinning indie, electro, house, and bangers.

Hump Night Elbo Room. 9pm, $5. The week’s half over – bump it out at Hump Night!

Jam Wednesday Infusion Lounge. 10pm, free. DJ Slick Dee.

Qoöl 111 Minna Gallery. 5-10pm, $5. Pan-techno lounge with DJs Spesh, Gil, Hyper D, and Jondi.

RedWine Social Dalva. 9pm-2am, free. DJ TophOne and guests spin outernational funk and get drunk.

Respect Wednesdays End Up. 10pm, $5. Rotating DJs Daddy Rolo, Young Fyah, Irie Dole, I-Vier, Sake One, Serg, and more spinning reggae, dancehall, roots, lovers rock, and mash ups.

Synchronize Il Pirata, 2007 16th St.; (415) 626-2626. 10pm, free. Psychedelic dance music with DJs Helios, Gatto Matto, Psy Lotus, Intergalactoid, and guests.

THURSDAY 8

ROCK/BLUES/HIP-HOP

Atomic Bomb Audition, Diminished Men, Blanketship Hemlock Tavern. 9pm, $6.

Bite, Black Dream, Capp Street Girls, MC Meat Hook and the Vital Organs Annie’s Social Club. 8pm, $6.

Tim Bluhm, Neal Casal, and Fred Torphy Make-Out Room. 7pm, $12.

Boombox, Ana Sia Independent. 9pm, $15.

Brass Liberation Orchestra, Charming Hostess, Loco Bloco El Rio. 7pm, $5-20.

Death Valley High, Thrill of it All, King Loses Crown Café du Nord. 9:30pm, $10.

Foreigner Fillmore. 8pm, $45.

Great American Taxi, Kate Gaffney Connecticut Yankee, 100 Connecticut, SF; (415) 552-4440. 9pm, $12.

Carey Head, Kirk Hamilton, Alex Kelly Hotel Utah. 9pm, $7.

Jelly Bread Boom Boom Room. 9:30pm, $5.

"Manofest 2009" Thee Parkside. 9pm, $7. With Hellowar (Hellhunter), Barry Manowar (Fleshies), Womanowar (Dalton), Warriors of the World, and DJ Rob Metal.

Coco Montoya Biscuits and Blues. 8pm, $18.

Sugar and Gold, Battlehooch, Vows Eagle Tavern. 9pm, $5.

Teenage Jesus and the Jerks, Burmese, TITS Slim’s. 8pm, $25.

TLXN, Birdmonster, Erin Brazill Bottom of the Hill. 9:30pm, $8.

BAY AREA

Loggins and Messina Paramount Theatre. 8pm, $39.50-79.50.

JAZZ/NEW MUSIC

Eric Kurtzrock Trio Ana Mandara, Ghirardelli Square, 891 Beach, SF; (415) 771-6800. 7:30pm, free.

Laurent Fourgo Le Colonial, 20 Cosmo Place, SF; (415) 931-3600. 7:30pm, free.

John Kalleen Group Shanghai 1930. 7pm, free.

Marlina Teich Trio Brickhouse, 426 Brannan, SF; (415) 820-1595. 7-10pm, free.

"SF Jazz Presents Hotplate: Wil Blades plays Jimmy Smith" Amnesia. 8pm, $5.

Stanley Clarke Trio with Hiromi and Lenny White Yoshi’s San Francisco. 8 and 10pm, $32.

Stompy Jones Top of the Mark. 7:30pm, $10.

FOLK/WORLD/COUNTRY

Will Blades Amnesia. 9pm, $5. Tribute to Jimmy Smith.

Manicato Coda. 9pm, $7.

Parno Graszt, Brass Menazeri Rickshaw Stop. 7:30pm, $10.

Shannon Céilí Band Plough and Stars. 9pm, free.

Eric and Suzy Thompson Atlas Café. 8pm, free.

Toubab Krewe Great American Music Hall. 9pm, $18.

DANCE CLUBS

Afrolicious Elbo Room. 9:30pm, $5-6. DJs Pleasuremaker, Señor Oz, J Elrod, and B Lee spin Afrobeat, Tropicália, electro, samba, and funk.

CakeMIX SF Wish, 1539 Folsom, SF. 10pm, free. DJ Carey Kopp spinning funk, soul, and hip hop.

Caribbean Connection Little Baobab, 3388 19th St; 643-3558. 10pm, $3. DJ Stevie B and guests spin reggae, soca, zouk, reggaetón, and more.

Drop the Pressure Underground SF. 6-10pm, free. Electro, house, and datafunk highlight this weekly happy hour.

Funky Rewind Skylark. 9pm, free. DJ Kung Fu Chris, MAKossa, and rotating guest DJs spin heavy funk breaks, early hip-hop, boogie, and classic Jamaican riddims.

Gymnasium Matador, 10 6th St., SF; (415) 863-4629. 9pm, free. With DJ Violent Vickie and guests spinning electro, hip hop, and disco.

Heat Icon Ultra Lounge. 10pm, free. Hip-hop, R&B, reggae, and soul.

Kick It Bar on Church. 9pm. Hip-hop with DJ Jorge Terez.

Kissing Booth Make Out Room. 9pm, free. DJs Jory, Commodore 69, and more spinning indie dance, disco, 80’s, and electro.

Koko Puffs Koko Cocktails, 1060 Geary; 885-4788. 10pm, free. Dubby roots reggae and Jamaican funk from rotating DJs.

Mestiza Bollywood Café, 3376 19th St., SF; (415) 970-0362. 10pm, free. Showcasing progressive Latin and global beats with DJ Juan Data.

Motion Sickness Vertigo, 1160 Polk; (415) 674-1278. 10pm, free. Genre-bending dance party with DJs Sneaky P, Public Frenemy, and D_Ro Cyclist.

Popscene 330 Rich. 10pm, $10. Rotating DJs spinning indie, Britpop, electro, new wave, and post-punk.

Represent Icon Lounge. 10pm, $5. With Resident DJ Ren the Vinyl Archaeologist and guest.

Toppa Top Thursdays Club Six. 9pm, $5. Jah Warrior, Jah Yzer, I-Vier, and Irie Dole spin the reggae jams for your maximum irie-ness.

Trinity Dance DNA Lounge. 7:30pm, $16. Tribute to Leonard Cohen, Tom Waits, and Nick Cave with 5 Cent Coffee, Fromagique, and DJs James Bradley, Persephone, Mz Samantha, and Kit.

FRIDAY 9

ROCK/BLUES/HIP-HOP

*Children of Bodom, Black Dahlia Murder, Austrian Death Machine, Skeletonwitch Regency Ballroom. 7pm, $30.

D’Fibrillatorz Mocha 101, 1722 Taraval, SF; (415) 702-9869. 8pm, free.

Damon and Naomi Amoeba, 1855 Haight, SF; (415) 831-1200. 6pm, free.

*Floating Goat, Dirty Power, Serpents Crown Annie’s Social Club. 5pm, $5.

A Hawk and a Handsaw, Damon and Naomi Independent. 9pm, $14.

Honey Island Swamp Band Boom Boom Room. 10pm.

Danny James and Pear, These Hills of Gold, Parlour Suite Knockout. 9pm, $7.

Jane Doe’s Union Room (at Biscuits and Blues). 9:30pm, $10.

Monsters Are Not Myths, Wave Array, Sentinel Hotel Utah. 9pm, $12.

Mutemath Fillmore. 9pm, $25.

Kim Nalley Biscuits and Blues. 8 and 10pm, $22.

OvO, Subarachnoid Space, Worm Orouboros Hemlock Tavern. 9pm, $10.

*"Part Time Punks Mini-Fest" Mezzanine. 8pm, $20. With Raincoats, Section 25, Gang of Four, For Against, and more.

Phil and Jackets, Forget About Boston, Jacob Wolkenhauer, Essence, DJ Roy Two Thousand Café du Nord. 9:30pm, $10.

Polvo, Moggs Slim’s. 9pm, $15.

Rosewood Thieves, Dead Trees, Mist and Mast Bottom of the Hill. 10pm, $10.

Stung, Petty Theft Red Devil Lounge. 8pm, $12.

BAY AREA

Belly of the Whale, Pentacles, Groundskeeper, Talky Tina Uptown. 9pm, free.

Jason Mraz, Brett Dennen, Robert Francis, Bushwalla Greek Theater, UC Berkeley, Berk; www.ticketmaster.com. 7pm, $47.50.

JAZZ/NEW MUSIC

Audium 9 1616 Bush, SF; (415) 771-1616. 8:30pm, $15.

Black Market Jazz Orchestra Top of the Mark. 9pm, $10.

"Cultural Encounters: Friday Nights at the deYoung presents Jazz at Intersection" Wilsey Court, de Young Museum, 50 Hagiwara Tea Garden Dr, SF; www.deyoungmuseum.org. 6:30pm, free. With Nice Guy Trio’s Root Exchange Finale: Season Two.

8 Legged Monster Coda. 10pm, $10.

Eric Kurtzrock Trio Ana Mandara, Ghirardelli Square, 891 Beach, SF; (415) 771-6800. 8pm, free.

Josh Jones Latin Jazz Ensemble Vin Club, 515 Broadway, SF; (415) 277-7228. 7pm, free.

"Lester Bowie Tribute Concert" Herbst Theatre, 401 Van Ness; (415) 392-4400, www.cityboxoffice.com. 7:30pm, $30-50. With James Carter, Corey Wilkes, Fred Ho, Roscoe Mitchell, and Famoudou Don Moye.

Lucid Lovers Rex Hotel, 562 Sutter, SF; (415) 433-4434. 6-8pm.

Michael Zilber Jazz Quartet Red Poppy Art House. 8pm, $12-20.

Stanley Clarke Trio with Hiromi and Lenny White Yoshi’s San Francisco. 8 and 10pm, $32.

Terry Disley Experience Shanghai 1930. 7:30pm, free.

Words Partisan Gallery, 112 Guerrero, SF; www.partisangallery.com. 9pm, free.

FOLK/WORLD/COUNTRY

Mild Colonial Boys Plough and Stars. 9pm, $7. With Fergus Feeley.

Wisin Y Yandel Bill Graham Civic Auditorium, 99 Grove, SF; www.goldenvoice.com. 8pm, $56-76.

DANCE CLUBS

Activate! Lookout, 3600 16th St; (415) 431-0306. 9pm, $3. Face your demigods and demons at this Red Bull-fueled party.

Bar on Church 9pm. Rotating DJs Zax, Zhaldee, and Nuxx.

Exhale, Fridays Project One Gallery, 251 Rhode Island; (415) 465-2129. 5pm, $5. Happy hour with art, fine food, and music with Vin Sol, King Most, DJ Centipede, and Shane King.

Fat Stack Fridays Koko Cocktails, 1060 Geary, SF; (415) 885-4788. 10pm, free. With rotating DJs Romanowski, B-Love, Tomas, Toph One, and Vinnie Esparza.

Fo’ Sho! Fridays Madrone. 10pm, $5. DJs Kung Fu Chris, Makossa, and Quickie Mart spin rare grooves, soul, funk, and hip-hop classics.

Gay Asian Paradise Club Eight, 1151 Folsom, SF; www.eightsf.com. 9pm, $8. Featuring two dance floors playing dance and hip hop, smoking patio, and 2 for 1 drinks before 10pm.

Grime City Club Six. 9pm, $7. With DJs Joe Nice, Bogl, Grime City Crew, Emcee Chilo, and more spinning dubstep.

Gymnasium Stud. 10pm, $5. With DJs Violent Vickie and guests spinning electro, disco, rap, and 90s dance and featuring performers, gymnastics, jump rope, drink specials, and more.

I Can’t Feel My Face Amnesia. 10pm, $3. With DJs EUG and J Montag spinning punk, funk, electro, rock, disco, hip hop, and no wave.

Look Out Weekend Bambuddha Lounge. 4pm, free. Drink specials, food menu and resident DJs White Girl Lust, Swayzee, Philie Ocean, and more.

Lovebuzz Annie’s Social Club. 9pm, $5. Classic punk, 90s, and rock with Jason aka Jawa, Jetset James, and Melody Nelson.

Lucky Road DNA Lounge. 9pm, $10. Gypsy punk dance party with Hot Pink Feathers, Barbary Coast Shakedown, Tara Quinn, Sister Kete, MssRockwell DeVill, DJ Alxndr, and Gypsy Bazaar.

M4M Fridays Underground SF. 10pm-2am. Joshua J and Frankie Sharp host this man-tastic party.

Punk Rock and Shlock Karaoke Annie’s Social Club. 9pm-2am, $5. Eileen and Jody bring you songs from multiple genres to butcher: punk, new wave, alternative, classic rock, and more.

Shit Robot Paradise Lounge. 9pm, $10. With DJs Tal M. Klein and Chardmo spinning disco and funk.

6 to 9 800 Larkin, 800 Larkin, SF; (415) 567-9326. 6pm, free. DJs David Justin and Dean Manning spinning downtempo, electro breaks, techno, and tech house. Free food by 800 Larkin. Treat Em Right Elbo Room. 10pm, $5. Hip-hop, funk, reggae, and Latin with DJs Vinnie Esparza and B-Cause.

SATURDAY 10

ROCK/BLUES/HIP-HOP

Cory Brown, Melissa Phillips Red Devil Lounge. 9pm, $8.

Curtis Bumpy Coda. 10pm, $10.

Chapter 2, Panda Conspiracy Boom Boom Room. 10pm, $12.

Disastroid, Big Blue Whale, Solid Hemlock Tavern. 10pm, $7.

Fast Times Pier 39, SF; www.pier39.com. 7:30pm, free.

"Frisco Freakout!" Thee Parkside. 2pm, $15. With Heavy Hills, Lumerians, Powell St. John and the Aliens, Assemble Head in Sunburst Sound, Liquorball with Steve MacKay, Wooden Shjips, Citay, and more.

Ernie Johnson Velma’s, 2246 Jerrold, SF; (415) 824-7646. 8pm.

Kyle Hollingsworth Band, Zach Gill Independent. 9pm, $17.

Metronomy, Fool’s Gold, Leopold and His Fiction Bottom of the Hill. 10pm, $12.

Pi Bruno’s. 8:30pm, $5-10.

La Plebe, Get Dead, Compton SF, Keeners Annie’s Social Club. 9:30pm, $8.

"Rocket Dog Rescue Benefit" El Rio. 3pm. With Lady Fingaz, Solid, Jay Trainer Band, and Scranton.

Satyricon, Bleeding Through, Toxic Holocaust, Chthonic Slim’s. 8pm, $20.

Stone Foxes, Bhi Bhiman, Dubious Ranger Hotel Utah. 8:30pm, $10.

Tommy Castro Band and the Legendary Rhythm and Blues Revue Great American Music Hall. 8pm, $17.

Tower of Power Fillmore. 8pm, $40.

"Tricycle Music Fest West" San Francisco Main Library, 100 Larkin, SF; http://tricyclefest.org. 10am-2pm, free. With Hipwaders, Charity and the JamBand, and Frances England and the Time-Outs.

Mitch Woods Biscuits and Blues. 8 and 10pm, $20.

BAY AREA

Bob Dylan and His Band Greek Theater, UC Berkeley, Berk; www.ticketmaster.com. 7:30pm, $50.

Har Mar Superstar, Heavenly States, Hot Tub, Somehow at Sea Uptown. 9pm, $15.

JAZZ/NEW MUSIC

Audium 9 1616 Bush, SF; (415) 771-1616. 8:30pm, $15.

Eric Kurtzrock Trio Ana Mandara, Ghirardelli Square, 891 Beach, SF; (415) 771-6800. 8pm, free.

Jack Pollard Shanghai 1930. 7:30pm, free.

Ricardo Scales Top of the Mark. 9pm, $10.

Stanley Clarke Trio with Hiromi and Lenny White Yoshi’s San Francisco. 8 and 10pm, $32.

Paula West with George Mesterhazy Quartet Herbst Theatre, 401 Van Ness, SF; www.performances.org. 8pm, $27-39.

FOLK/WORLD/COUNTRY

Culann’s Hounds Plough and Stars. 9pm, $7.

"Fela Kuti Birthday Celebration" Café du Nord. 9:30pm, $12. With DJ Jeremiah and the Afrobeat Nation, and DJ Said.

Krosswindz Knockout. 9pm, $6.

Maus Haus, Church Amnesia. 9pm, $7.

Mission Bohemia Red Poppy Art House. 8pm, $12.

Stellamara Noe Valley Ministry, 1021 Sanchez, SF; (415) 454-5238. 8:15pm, $17.

DANCE CLUBS

Bar on Church 9pm. Rotating DJs Foxxee, Joseph Lee, Zhaldee, Mark Andrus, and Niuxx.

Bootie DNA Lounge. 9pm, $6-12. Mash-ups with DJs Reno, ComaR, Phatbastard, and residents Adrian and Mysterious D, and Dada.

HYP Club Eight, 1151 Folsom, SF; www.eightsf.com. 10pm, free. Gay and lesbian hip hop party, featuring DJs spinning the newest in the top 40s hip hop and hyphy.

Krazy for Karaoke Happy Hour Knockout. 5-9pm, free. Belt it out with your host Deadbeat.

Rebel Radio Club Six. 9pm, $10. With DJs Green B and Funky C spinning reggae and hip hop and a live performance by Hypnotic Vibrations.

Reggae Gold SF Endup. 10pm, $5. With DJs Daddy Rolo, Polo Mo’Quuz, and more spinning reggae, dancehall, and remixes all night.

Same Sex Salsa and Swing Magnet, 4122 18th St., SF; (415) 305-8242. 7pm, free.

Spirit Fingers Sessions 330 Ritch. 9pm, free. With DJ Morse Code and live guest performances.

Summer Saturdays Bar On Church. 9pm, free. With DJ Mark Andrus spinning top 40, mashups, hip hop, and electro.

Tormenta Tropical Elbo Room. 10pm, $5-10. Electro-cumbia with Sabo, Disco Shawn, and Oro 11.

SUNDAY 11

ROCK/BLUES/HIP-HOP

Academy Is, Mayday Parade, Set Your Goals, You Me At Six Regency Ballroom. 7pm, $18.

And You Will Know Us By the Trail of Dead, Future of the Left Hotel Utah. 8pm, $20.

"Battle of the Bands" DNA Lounge. 5:30pm, $12. With Raya Nova, Inner Sunset, Accept Your Fate, Dopesick Tight, and more.

Hanalei, Daikon, Themes, Polar Bears Thee Parkside. 8pm, $7.

Honey Island Swamp Band, Whisky Pills Pier 23. 4pm.

In ‘n Out Boom Boom Room. 10pm, $12.

Mensclub, Short Dogs Grow, Street Lyons, John Thaxton Bottom of the Hill. 1pm, $10.

Nadja, Date Palms, Portraits Hemlock Tavern. 9pm, $6.

Thursday, Fall of Troy, Dear Hunter, Touche Amore Slim’s. 7:30pm, $20.

Gregg Wright Biscuits and Blues. 8pm, $15.

BAY AREA

Bob Dylan and His Band Greek Theater, UC Berkeley, Berk; www.ticketmaster.com. 7:30pm, $50.

JAZZ/NEW MUSIC

Rob Modica and friends Simple Pleasures, 3434 Balboa, SF; (415) 387-4022. 3pm, free.

Stanley Clarke Trio with Hiromi and Lenny White Yoshi’s San Francisco. 2 and 7pm, $5-32.

FOLK/WORLD/COUNTRY

Meredith Edgar Amnesia. 7pm, free.

Jack Gilder, Kevin Bemhagen, Richard Mandel and friends Plough and Stars. 9pm, free.

Paulo Presotto and the Ziriguidum Project Coda. 9pm, $7.

Lavay Smith and Her Red Hot Skillet Lickers, Lady A and Her Heeldraggers Amnesia. 9pm, $7-10.

DANCE CLUBS

DiscoFunk Mashups Cat Club. 10pm, free. House and 70’s music.

Dub Mission Elbo Room. 9pm, $6. Dub, roots, and classic dancehall with Kush Arora, MC Zulu, Spit Brothers, and DJ Sep.

5 O’Clock Jive Inside Live Art Gallery, 151 Potrero, SF; (415) 305-8242. 5pm, $5. A weekly swing dance party.

Gloss Sundays Trigger, 2344 Market, SF; (415) 551-CLUB. 7pm. With DJ Hawthorne spinning house, funk, soul, retro, and disco.

Honey Soundsystem Paradise Lounge. 8pm-2am. "Dance floor for dancers – sound system for lovers." Got that?

Jock! Lookout, 3600 16th; 431-0306. 3pm, $2. This high-energy party raises money for LGBT sports teams.

Kick It Bar on Church. 9pm. Hip-hop with DJ Zax.

Religion Bar on Church. 3pm. With DJ Nikita.

Stag AsiaSF. 6pm, $5. Gay bachelor parties are the target demo of this weekly erotic tea dance.

MONDAY 12

ROCK/BLUES/HIP-HOP

BluesMix Biscuits and Blues. 8pm, $15.

Elliott Brood, Rosi Golan, Wooden Sky Café du Nord. 8pm, $10.

Burmese, Javelina, Waylon Genocide Elbo Room. 9pm, $5.

Shawn Colvin Yoshi’s San Francisco. 8pm, $30.

Sean Kingston, Flo Rida, New Boyz, Jaiko Warfield. 8pm, $35-40.

Sean McArdle, James Finch Jr., Caught in Motion Club Waziema, 543 Divisadero, SF; (415) 999-4061. 8pm, free.

Mono, Maserati Great American Music Hall. 8pm, $15.

Nomeansno, Triclops! Independent. 8pm, $15.

JAZZ/NEW MUSIC

Lavay Smith Trio Enrico’s, 504 Broadway, SF; www.enricossf.com. 7pm, free.

FOLK/WORLD/COUNTRY

Toshio Hirano Amnesia. 8:30pm, free.

DANCE CLUBS

Black Gold Koko Cocktails, 1060 Geary; 885-4788. 10pm-2am, free. Senator Soul spins Detroit soul, Motown, New Orleans R&B, and more — all on 45!

Death Guild DNA Lounge. 9:30pm, $3-5. Goth, industrial, and synthpop with Decay, Joe Radio, Melting Girl, Miz Margo, and Lexor.

Going Steady Dalva. 10pm, free. DJs Amy and Troy spinning 60’s girl groups, soul, garage, and more.

King of Beats Tunnel Top. 10pm. DJs J-Roca and Kool Karlo spinning reggae, electro, boogie, funk, 90’s hip hop, and more.

Manic Mondays Bar on Church. 9pm. Drink 80-cent cosmos with Djs Mark Andrus and Dangerous Dan.

Monster Show Underground SF. 10pm, $5. Cookie Dough and DJ MC2 make Mondays worth dancing about, with a killer drag show at 11pm.

Network Mondays Azul Lounge, One Tillman Pl; www.inhousetalent.com. 9pm, $5. Hip-hop, R&B, and spoken word open mic, plus featured performers.

Spliff Sessions Tunnel Top. 10pm, free. DJs MAKossa, Kung Fu Chris, and C. Moore spin funk, soul, reggae, hip-hop, and psychedelia on vinyl.

TUESDAY 13

ROCK/BLUES/HIP-HOP

Bell X1 Independent. 8pm, $15.

Shawn Colvin Yoshi’s San Francisco. 8pm, $30.

Frankenstein L.I.V.S., Ashtray, Just Head Knockout. 10pm, free.

Craig Horton Biscuits and Blues. 8pm, $15.

Junior Boys, Circlesquare Mezzanine. 9pm, $18.

Kid Congo Powers and the Pink Monkeybirds, Bridez, Baths Hemlock Tavern. 9pm, $10.

Juliette Lewis, Ettes, American Bang Slim’s. 8pm, $16.

Pogues, Devotchka, Sean Wheeler and Zander Schloss Warfield. 8pm, $47.50-69.50.

Subdudes, Jimmy Sweetwater and Craig Ventresco Great American Music Hall. 7:30pm, $21.

Sunny Day Real Estate Fillmore. 8pm, $27.50.

A Wilhelm Scream, Living With Lions, Riot Before, Heartsounds Thee Parkside. 8pm, $10.

Yellow Dress, Lime Colony, Passenger and Pilot, JJ Schultz Band Bottom of the Hill. 9pm, $8.

Yogoman Burning Band, Makru, Slow Trucks Café du Nord. 9:30pm, $10.

JAZZ/NEW MUSIC

Dave Parker Quintet Rasselas Jazz. 8pm.

"Jazz Mafia Tuesdays" Coda. 9pm, $7. With Spaceheater’s Blast Furnace.

Ricardo Scales Top of the Mark. 6:30pm, $5.

FOLK/WORLD/COUNTRY

Barry O’Connell, Vinnie Cronin and friends Plough and Stars. 9pm, free.

DANCE CLUBS

Alcoholocaust Presents Argus Lounge. 9pm. With DJs What’s His Fuck, Lightnin’ Jeff G., and Damage Case.

Drunken Monkey Annie’s Social Club. 9pm, free. Random tunes and chaos with DJ Reptile.

Eclectic Company Skylark, 9pm, free. DJs Tones and Jaybee spin old school hip hop, bass, dub, glitch, and electro.

La Escuelita Pisco Lounge, 1817 Market, SF; (415) 874-9951. 7pm, free. DJ Juan Data spinning gay-friendly, Latino sing-alongs but no salsa or reggaeton.

Latin Biatz Elbo Room. 9pm, $5. Funk, hip-hop, and Latin with Funky C, Joya, and DJ C-Funk.

Rock Out Karaoke! Amnesia. 7:30pm. With Glenny Kravitz.

Share the Love Trigger, 2344 Market, SF; (415) 551-CLUB. 5pm, free. With DJ Pam Hubbuck spinning house.

Womanizer Bar on Church. 9pm. With DJ Nuxx.

Censored!

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news@sfbg.com

Peter Phillips, director of Project Censored for 13 years, says he’s finished with reform. It’s impossible, he said in a recent interview, to try to get major news media outlets to deliver relevant news stories that serve to strengthen democracy.

"I really think we’re beyond reforming corporate media," said Phillips, a professor of sociology at Sonoma State University and director of Project Censored. "We’re not going to break up these huge conglomerates. We’re just going to make them irrelevant."

Every year since 1976, Project Censored has spotlighted the 25 most significant news stories that were largely ignored or misrepresented by the mainstream press. Now the group is expanding its mission — to promote alternative news sources. But it continues to report the biggest national and international stories that the major media ignored.

The term "censored" doesn’t mean some government agent stood over newsrooms with a rubber stamp and forbid the publication of the news, or even that the information was completely out of the public eye. The stories Project Censored highlights may have run in one or two news outlets, but didn’t get the type of attention they deserved.

The project staff begins by sifting through hundreds of stories nominated by individuals at Sonoma State, where the project is based, as well as 30 affiliated universities all over the country.

Articles are verified, fact-checked, and selected by a team of students, faculty, and evaluators from the wider community, then sent to a panel of national judges to be ranked. The end product is a book, co-edited this year by Phillips and associate director Mickey Huff, that summarizes the top stories, provides in-depth media analysis, and includes resources for readers who are hungry for more substantive reporting.

Project Censored doesn’t just expose gaping holes in the news brought to you by the likes of Fox, CNN, or USA Today — it also shines a light on less prominent but more incisive alternative-media sources serving up in-depth investigations and watchdog reports.

Phillips is stepping down this year as director of Project Censored and turning his attention to a new endeavor called Media Freedom International. The organization will tap academic affiliates from around the world to verify the content put out by independent news outlets as a way to facilitate trust in these lesser-known sources. "The biggest question I got asked for 13 years was, who do you trust?" he explained. "So we’ve really made an effort in the last three years to try to address that question, in a very open way, in a very honest way, and say, these are [the sources] who we can trust."

Benjamin Frymer, a sociology professor at Sonoma State who is stepping into the role of Project Censored director, says he believes the time is ripe for this kind of push. "The actual amount of time people spend reading online is increasing," Frymer pointed out. "It’s not as if people are just cynically rejecting media — they’re reaching out for alternative sources. Project Censored wants to get involved in making those sources visible."

The Project Censored book this year uses the term "truth emergency."

"We call it an emergency because it’s a democratic emergency," Huff asserted. In this media climate, "we’re awash in a sea of information," he said. "But we have a paucity of understanding about what the truth is."

The top 25 Project Censored stories of 2008-09 highlight the same theme that Phillips and Huff say has triggered the downslide of mainstream media: the overwhelming influence of powerful, profit-driven interests. The No. 1 story details the financial sector’s hefty campaign contributions to key members of Congress leading up to the financial crisis, which coincided with a weakening of federal banking regulations. Another story points out that in even in the financial tumult following the economic downturn, special interests spent more money on Washington lobbyists than ever before.

Here’s this year’s list.

1. CONGRESS SELLS OUT TO WALL STREET


The total tab for the Wall Street bailout, including money spent and promised by the U.S. government, works out to an estimated $42,000 for every man, woman, and child, according to American Casino, a documentary about sub prime lending and the financial meltdown. The predatory lending free-for-all, the emergency pumping of taxpayer dollars to prop up mega banks, and the lavish bonuses handed out to Wall Street executives in the aftermath are all issues that have dominated news headlines.

But another twist in the story received scant attention from the mainstream news media: the unsettling combination of lax oversight from national politicians with high-dollar campaign contributions from financial players.

"The worldwide economic meltdown and the bailout that followed were together a kind of revolution, a coup d’état," Matt Taibbi wrote in "The Big Takeover," a March 2009 Rolling Stone article. "They cemented and formalized a political trend that has been snowballing for decades: the gradual takeover of the government by a small class of connected insiders who used money to control elections, buy influence, and systematically weaken financial regulations."

In the 10-year period beginning in 1998, the financial sector spent $1.7 billion on federal campaign contributions, and another $3.4 billion on lobbyists. Since 2001, eight of the most troubled firms have donated $64.2 million to congressional candidates, presidential candidates, and the Republican and Democratic parties.

Wall Street’s spending spree on political contributions coincided with a weakening of federal banking regulations, which in turn created a recipe for the astronomical financial disaster that sent the global economy reeling.

Sources: "Lax Oversight? Maybe $64 Million to DC Pols Explains It," Greg Gordon, Truthout.org and McClatchey Newspapers, October 2, 2008; "Congressmen Hear from TARP Recipients Who Funded Their Campaigns," Lindsay Renick Mayer, Capitol Eye, February 10, 2009; "The Big Takeover," Matt Taibbi, Rolling Stone, March 2009.

2. DE FACTO SEGREGATION DEEPENING IN PUBLIC EDUCATION


Latinos and African Americans attend more segregated public schools today than they have for four decades, Professor Gary Orfield notes in "Reviving the Goal of an Integrated Society: A 21st Century Challenge," a study conducted by UCLA’s Civil Rights Project. Orfield’s report used federal data to highlight deepening segregation in public education by race and poverty.

About 44 percent of students in the nation’s public school system are people of color, and this group will soon make up the majority of the population in the U.S. Yet this racial diversity often isn’t reflected from school to school. Instead, two out of every five African American and Latino youths attend schools Orfield characterizes as "intensely segregated," composed of 90 percent to 100 percent people of color.

For Latinos, the trend reflects growing residential segregation. For African Americans, the study attributes a significant part of the reversal to ending desegregation plans in public schools nationwide. Schools segregated by race and poverty tend to have much higher dropout rates, more teacher turnover, and greater exposure to crime and gangs, placing students at a major disadvantage in society. The most severe segregation is in Western states, including California.

Fifty-five years after the Supreme Court’s Brown vs. Board of Education ruling, Orfield wrote, "Segregation is fast spreading into large sectors of suburbia, and there is little or no assistance for communities wishing to resist the pressures of resegregation and ghetto creation in order to build successfully integrated schools and neighborhoods."

Source: "Reviving the Goal of an Integrated Society: A 21st Century Challenge," Gary Orfield, The Civil Rights Project, UCLA, January 2009

3. SOMALI PIRATES: THE UNTOLD STORY


Somali pirates off the Horn of Africa were like gold for mainstream news outlets this past year. Stories describing surprise attacks on shipping vessels, daring rescues, and cadres of ragtag bandits extracting multimillion dollar ransoms were all over the airwaves and front pages.

But even as the pirates’ exploits around the Gulf of Aden captured the world’s attention, little ink was devoted to factors that made the Somalis desperate enough to resort to piracy in the first place: the dumping of nuclear waste and rampant over-fishing their coastal waters.

In the early 1990s, when Somalia’s government collapsed, foreign interests began swooping into unguarded coastal waters to trawl for food — and venturing into unprotected Somali territories to cheaply dispose of nuclear waste. Those activities continued with impunity for years. The ramifications of toxic dumping hit full force with the 2005 tsunami, when leaking barrels were washed ashore, sickening hundreds and causing birth defects in newborn infants. Meanwhile, the uncontrolled fishing harvests damaged the economic livelihoods of Somali fishermen and eroded the country’s supply of a primary food source. That’s when the piracy began.

"Did we expect starving Somalians to stand passively on their beaches, paddling in our nuclear waste, and watch us snatch their fish to eat in restaurants in London and Paris and Rome?" asked journalist Johann Hari in a Huffington Post article. "We didn’t act on those crimes — but when some of the fishermen responded by disrupting the transit-corridor for 20 percent of the world’s oil supply, we begin to shriek about ‘evil.’"

Sources: "Toxic waste behind Somali piracy," Najad Abdullahi, Al Jazeera English, Oct. 11, 2008; "You are being lied to about pirates," Johann Hari, The Huffington Post, Jan. 4, 2009; "The Two Piracies in Somalia: Why the World Ignores the Other," Mohamed Abshir Waldo, WardheerNews, Jan. 8, 2009

4. NORTH CAROLINA’S NUCLEAR NIGHTMARE


The Shearon Harris nuclear plant in North Carolina’s Wake County isn’t just a power-generating station. The Progress Energy plant, located in a backwoods area, bears the distinction of housing the largest radioactive-waste storage pools in the country. Spent fuel rods from two other nuclear plants are transported there by rail, then stored beneath circuutf8g cold water to prevent the radioactive waste from heating.

The hidden danger, according to investigative reporter Jeffery St. Clair, is the looming threat of a pool fire. Citing a study by Brookhaven National Laboratory, St. Clair highlighted in Counterpunch the catastrophe that could ensue if a pool were to ignite. A possible 140,000 people could wind up with cancer. Contamination could stretch for thousands of square miles. And damages could reach an estimated $500 billion.

"Spent fuel recently discharged from a reactor could heat up relatively rapidly and catch fire," Robert Alvarez, a former Department of Energy advisor and Senior Scholar at the Institute for Policy Studies noted in a study about safety issues surrounding nuclear waste pools. "The fire could well spread to older fuel. The long-term contamination consequences of such an event could be significantly worse than Chernobyl."

Shearon Harris’ track record is pocked with problems requiring temporary shutdowns of the plant and malfunctions of the facility’s emergency-warning system.

When a study was sent to the Nuclear Regulatory Commission highlighting the safety risks and recommending technological fixes to address the problem, St. Clair noted, a pro-nuclear commissioner successfully persuaded the agency to dismiss the concerns.

Source: "Pools of Fire," Jeffrey St. Clair, CounterPunch, Aug. 9, 2008

5. U.S. FAILS TO PROTECT CONSUMERS AGAINST TOXICS


Two years ago, the European Union enacted a bold new environmental policy requiring close scrutiny and restriction of toxic chemicals used in everyday products. Invisible perils such as lead in lipstick, endocrine disruptors in baby toys, and mercury in electronics can threaten human health. The European legislation aimed to gradually phase out these toxic materials and replace them with safer alternatives.

The story that has gone unreported by mainstream American news media is how this game-changing legislation might affect the U.S., where chemical corporations use lobbying muscle to ensure comparatively lax oversight of toxic substances. As global markets shift to favor safer consumer products, the U.S. Environmental Protection Agency is lagging in its own scrutiny of insidious chemicals.

As investigative journalist Mark Schapiro pointed out in Exposed: The Toxic Chemistry of Everyday Products and What’s at Stake for American Power, the EPA’s tendency to behave as if it were beholden to big business could backfire in this case, placing U.S. companies at a competitive disadvantage because products manufactured here will be regarded with increasing distrust.

Economics aside, the implications of loose restrictions on toxic products are chilling: just one-third of the 267 chemicals on the EU’s watch list have ever been tested by the EPA, and only two are regulated under federal law. Meanwhile, researchers at UC Berkeley estimate that 42 billion pounds of chemicals enter American commerce daily, and only a fraction have undergone risk assessments. When it comes to meeting the safer, more stringent EU standard, the stakes are high — with consequences including economic impacts as well as public health.

Sources: "European Chemical Clampdown Reaches Across Atlantic," David Biello, Scientific American, Sept. 30, 2008; "How Europe’s New Chemical Rules Affect U.S.," Environmental Defense Fund, Sept. 30, 2008; "U.S. Lags Behind Europe in Reguutf8g Toxicity of Everyday Products," Mark Schapiro, Democracy Now! Feb. 24, 2009

6. AS ECONOMY SHRINKS, D.C. LOBBYING GROWS


In 2008, as the economy tumbled and unemployment soared, Washington lobbyists working for special interests were paid $3.2 billion — more than any other year on record. According to the Center for Responsive Politics, special interests spent a collective $32,523 per legislator, per day, for every day Congress was in session.

One event that triggered the lobbying boom, according to CRP director Sheila Krumholz, was the federal bailout — with the federal government ensuring that the lobbyists got a piece of the pie. Ironically, some of the first in line were the same players who helped precipitate the nation’s sharp economic downturn by engaging in high-risk, speculative lending practices.

"Even though some financial, insurance and real estate interests pulled back last year, they still managed to spend more than $450 million as a sector to lobby policymakers," Krumholz noted. "That can buy a lot of influence, and it’s a fraction of what the financial sector is reaping in return through the government’s bailout program."

The list of highest-ranking spenders on Washington lobbying reads like a roster of some of the most powerful interests nationwide. Topping the list was the health sector, which spent $478.5 million lobbying Congress last year. A close runner-up was the finance, insurance, and real-estate sector, spending $453.5 million. Pharmaceutical companies plunked down $230 million; electric utilities spent $156.7 million; and oil and gas companies paid lobbyists $133.2 million.

Source: "Washington Lobbying Grew to $3.2 Billion Last Year, Despite Economy," Center for Responsive Politics, Open Secrets.org

7. OBAMA’S CONTROVERSIAL DEFENSE APPOINTEES


President Barack Obama’s appointments to the Department of Defense have raised serious questions among critics who’ve studied their track records. Although the news media haven’t paid much attention, the defense appointees bring to the administration controversial histories and conflicts of interest due to close ties to defense contractors.

Obama’s decision to retain Robert Gates, Secretary of Defense under President George W. Bush, marks the first time in history that a president has opted to keep a defense secretary of an outgoing opposing party in power.

Gates, a former CIA director, has faced criticism for allegedly spinning intelligence reports for political means. In Failure of Intelligence: The Decline and Fall of the CIA, author and former CIA analyst Melvin Goodman described him as "the chief action officer for the Reagan administration’s drive to tailor intelligence reporting to White House political desires." Gates also came under scrutiny for questions surrounding whether he misled Congress during the Iran-contra scandal in the mid-1980s, and was accused of withholding information from intelligence committees when the U.S. provided military aid to Saddam Hussein during the Iran-Iraq war.

Critics are also uneasy about the appointment of Deputy Defense Secretary William Lynn, who formerly served as a senior vice president at defense giant Raytheon Company and was a registered lobbyist for Raytheon until July 2008. Lynn, who previously served as Pentagon comptroller under the Clinton administration, came under fire during his confirmation hearing for "questionable accounting practices." The Defense Department failed multiple audits under Lynn’s leadership because it was unable to properly account for $3.4 trillion in financial transactions made over the course of several years.

Sources: "The Danger of Keeping Robert Gates," Robert Parry, ConsortiumNews.com, Nov. 13, 2008; "Obama’s Defense Department Appointees- The $3.4 Trillion Question," Andrew Hughes, Global Research, Feb. 13, 2009; "Obama Nominee Admiral Dennis Blair Aided perpetrators of 1999 church Killings in East Timor," Allan Nairn, Democracy Now! Jan. 7, 2009; "Ties to Chevron, Boeing Raise Concern on Possible NSA Pick," Roxana Tiron, The Hill, Nov. 24, 2008


8. BIG BUSINESS CHEATS THE IRS


The Cayman Islands and Bermuda are magnets for Bank of America, Citigroup, American International Group, and 11 other financial giants that were the beneficiaries of the federal government’s 2008 Wall Street bailout. It’s not the balmy weather that inspires some of America’s wealthiest companies to open operations in the Caribbean archipelago: the offshore oases provide safe harbors to stash cash out of the reach of Uncle Sam.

According to a 2008 report by the Government Accountability Office, which was largely ignored by the news media, 83 of the top publicly-held U.S. companies, including some receiving substantial portions of federal bailout dollars, have operations in tax havens that allow them to avoid paying their fair share to the Internal Revenue Service. The report also spotlighted the activities of Union Bank of Switzerland (UBS), which has helped wealthy Americans to use tax schemes to cheat the IRS out of billions.

In December 2008, banking giant Goldman Sachs reported its first quarterly loss, and promptly followed up with a statement that its tax rate would drop from 34.1 percent to 1 percent, citing "changes in geographic earnings mix" as the reason. The difference: instead of paying $6 billion in total worldwide taxes as it did in 2007, Goldman Sachs would pay a total of $14 million in 2008. In the same year, it received $10 billion and debt guarantees from the U.S. government.

"The problem is larger than Goldman Sachs," U.S. Representative Lloyd Doggett, a Texas Democrat who serves on the tax-writing House Ways and Means Committee, told Bloomberg News. "With the right hand out begging for bailout money, the left is hiding it offshore."

Sources: "Goldman Sachs’s Tax Rate Drops to 1 percent or $14 Million," Christine Harper, Bloomberg News, Dec. 16, 2008; "Gimme Shelter: Tax Evasion and the Obama Administration," Thomas B. Edsall, The Huffington Post, Feb. 23, 2009

9. U.S. CONNECTED TO WHITE PHOSPHOROUS STRIKES IN GAZA


In mid-January, as part of a military campaign, the Israeli Defense Forces fired several shells that hit the headquarters of a United Nations relief agency in Gaza City, destroying provisions for basic aid like food and medicine.

The shells contained white phosphorous (referred to as "Willy Pete" in military slang), a smoke-producing, spontaneously flammable agent designed to obscure battle territory that also can ignite buildings or cause grotesque burns if it touches the skin.

The attack on the relief-agency headquarters is just one example of a civilian structure that researchers discovered had been hit during the January air strikes. In the aftermath of the attacks, Human Rights Watch volunteers found spent white phosphorous shells on city streets, apartment roofs, residential courtyards, and at a U.N. school in Gaza.

Human Rights Watch says the IDF’s use of white phosphorous violated international law, which prohibits deliberate, indiscriminate, or disproportionate attacks that result in civilian casualties. After gathering evidence such as spent shells, the organization issued a report condemning the repeated firing of white phosphorus shells over densely populated areas of Gaza as a war crime. Amnesty International, another human rights organization, followed suit by calling upon the United States to suspend military aid to Israel — but to no avail.

The U.S. was a primary source of funding and weaponry for Israel’s military campaign. Washington provided F-16 fighter planes, Apache helicopters, tactical missiles, and a wide array of munitions, including white phosphorus.

Sources: "White Phosphorus Use Evidence of War Crimes Report: Rain of Fire: Israel’s Unlawful Use of White Phosphorus in Gaza," Fred Abrahams, Human Rights Watch, March 25, 2009; "Suspend Military Aid to Israel, Amnesty Urges Obama after Detailing U.S. Weapons Used in Gaza," Rory McCarthy, Guardian/U.K., Feb. 23, 2009; "U.S. Weaponry Facilitates Killings in Gaza," Thalif Deen, Inter Press Service, Jan. 8, 2009; "U.S. military resupplying Israel with ammunition through Greece," Saed Bannoura, International Middle East Media Center News, Jan. 8, 2009.

10. ECUADOR SAYS IT WON’T PAY ILLEGITIMATE DEBT


When President Rafael Correa announced that Ecuador would default on its foreign debt last December, he didn’t say it was because the Latin American country was unable to pay. Rather, he framed it as a moral stand: "As president, I couldn’t allow us to keep paying a debt that was obviously immoral and illegitimate," Correa told an international news agency. The news was mainly reported in financial publications, and the stories tended to quote harsh critics who characterized Correa as an extreme leftist with ties to Venezuelan President Hugo Chavez.

But there’s much more to the story. The announcement came in the wake of an exhaustive audit of Ecuador’s debt, conducted under Correa’s direction by a newly created debt audit commission. The unprecedented audit documented hundreds of allegations of irregularity and illegality in the decades of debt collection from international lenders. Although Ecuador had made payments exceeding the value of the principal since the time it initially took out loans in the 1970s, its foreign debt had nonetheless swelled to levels three times as high due to extraordinarily high interest rates. With a huge percentage of the country’s financial resources devoted to paying the debt, little was left over to combat poverty in Ecuador.

Correa’s move to stand up against foreign lenders did not go unnoticed by other impoverished, debt-ridden nations, and the decision could set a precedent for developing countries struggling to get out from under massive debt obligation to first-world lenders.

Ecuador eventually agreed to a restructuring of its debt at about 35 cents on the dollar. Nonetheless, the move served to expose deficiencies in the World Bank system, which provides little recourse for countries to resolve disputes over potentially illegitimate debt.

Sources: "As Crisis Mounts, Ecuador Declares Foreign Debt Illegitimate and Illegal," Daniel Denvir, Alternet, November 26, 2008; "Invalid Loans to Ecuador: Who Owes Who," Committee for the Integral Audit of Public Credit, Utube, Fall 2008; "Ecuador’s Debt Default," Neil Watkins and Sarah Anders, Foreign Policy in Focus, Dec. 15, 2008

——–

OTHER STORIES IN THE TOP 25

11. Private Corporations Profit from the Occupation of Palestine

12. Mysterious Death of Mike Connell—Karl Rove’s Election Thief

13. Katrina’s Hidden Race War

14. Congress Invested in Defense Contracts

15. World Bank’s Carbon Trade Fiasco

16. US Repression of Haiti Continues

17. The ICC Facilitates US Covert War in Sudan

18. Ecuador’s Constitutional Rights of Nature

19. Bank Bailout Recipients Spent to Defeat Labor

20. Secret Control of the Presidential Debates

21. Recession Causes States to Cut Welfare

22. Obama’s Trilateral Commission Team

23. Activists Slam World Water Forum as a Corporate-Driven Fraud

24. Dollar Glut Finances US Military Expansion

25. Fast Track Oil Exploitation in Western Amazon

Read them all at www.projectcensored.org

The $2.8 billion rate hike

0

news@sfbg.com

In the middle of what economists are calling the worst economic downturn since the Great Depression, when California unemployment rates have hit post-WWII records, commercial defaults are rising, and families and businesses are hurting, Pacific Gas and Electric Co. is asking for electricity rate hikes that would take at least $47 million out of the local community, a Guardian analysis shows. By some estimates, the impact could be has high as $787 million.

And the economy is already losing between $174 million and $483 million a year because the city hasn’t created a public power system. So the total impact on the San Francisco economy of paying PG&E’s high private rates could total $2.8 billion. That’s money that local residents can’t spend on good and services, local businesses can’t use to hire more workers and city government can’t collect taxes on.

The analysis is based on work done in 2002 by Irwin Kellner, chief economist for Marketwatch and a former economics professor at Hofstra University. Kellner analyzed the savings to the Long Island economy after that community replaced a private utility with a public power system (see "The $620 million shakedown, 9/4/2002).

It’s not a complicated set of calculations.

During the fiscal year ending in 2009, San Francisco residents and businesses paid $644 million on electricity, according to data from the city’s Controller’s Office. If PG&E’s proposed 6.5 percent average rate hike is approved for 2011 (with additional hikes of 1.4 percent and 1.1 percent the following two years) that number would ultimately rise to $704.5 million.

Over the next four years, as those rate hikes kick in, San Franciscans would be handing PG&E an extra $157 million. That’s $106 million businesses won’t have to pay employees or make capital improvements, and $51.3 million consumers won’t have to spend in local businesses.

"That’s $51 million less that would otherwise go into San Francisco neighborhood businesses," said Ted Egan, chief economist in the city’s Office of Economic Analysis. "Instead the $51 million goes to PG&E, and they won’t spend it all in San Francisco. Some will go to shareholders and outside the region, so the rate hike would end up having a larger impact than the initial $51 million."

That "larger impact" is called the multiplier effect: if you give one dollar to someone likely to spend it locally, he or she will buy shoes at a local shoe store, whose owner will use the dollar to buy groceries at the local grocery store, whose owner will pay the counter worker, who will spend the money on paint at the local hardware store — and by the time it’s circulated through the local economy, that dollar has created far more than a dollar’s worth of economic activity.

Economists argue on how to figure the exact impact of that dollar. Kellner has done studies of the economic impact of utility rates and estimates the multiplier — the economic impact of electricity rate hikes — to be five, expanding the $157.4 million to over $787 million.

Egan takes a more conservative view of the San Francisco economy and consumer spending. He estimates that the multiplier for utility rate hikes is closer to 0.3 — or slightly higher when commercial rates are factored in. According to his estimate the impact would be closer to $47,231,083.86.

The multiplier suggested by federal government economists during the stimulus bill discussion is 1.8, the number cautiously posited by Cynthia Kroll, senior regional economist for the Fisher Center for Real Estate and Urban Economics at UC Berkeley. Based on her calculations, PG&E would be yanking $283 million out of the local economy.

Either way, it’s a huge sum of money, particularly in a bad economy.

A PATTERN OF RATE HIKES


This latest rate hike, Mindy Spatt, communications director of the Utility Reform Network told us, is only part of a pattern of attempts by PG&E to raise rates. Every three years, utility companies present a general rate case to the California Public Utilities Commission. But Spatt said utilities can come to the PUC in between to ask for other rate hikes.

"They’re constantly coming back to the commission for this that and the other thing," she said. "[PG&E] came back after they got money for smart meters to get money for smarter meters.

"Overall, the pattern is that rates continue to go up," she continued. "The only other thing going up is executive compensation. We are still plagued with blackouts, we still get crappy service."

She’s right: data from other local utilities show that PG&E rates are anywhere from 20 percent to 40 percent higher than cities that have public power. PG&E would like its customers to believe that higher rates will improve service and reliability — but that’s not what’s happening.

"They don’t spend the money on giving us good service, instead [they focus] on convincing us they are giving us good service," Spatt said.

In its announcement of the proposed hike, PG&E claimed the rate hikes are to maintain infrastructure and reliability. A further $1.1 billion is also being asked for as part of a Cornerstone Improvement Project to increase reliability.

"Reliability" is an old battle horse trotted out every few years as the justification for rate hikes. PG&E is consistently less reliable than other local utilities and even less reliable than other large private utilities. So the company constantly asks for money to upgrade its system — except that reliability doesn’t seem to improve much, and it hasn’t improved much in the past decade, according to California Public Utilities Commission data.

"It’s interesting to compare their rates to municipal utilities and how much higher they are," Spatt said. "What do we get for the extra money we pay? Because by most measures they’re not doing a great job."

In fact, Guardian research shows that local municipal utilities have consistently better reliability records than PG&E (see "The blackout factor," 8/5/09).

PUBLIC POWER SAVINGS


The direct cost of PG&E’s high rates costs the local economy — and those losses are compounded by the money that could have been saved with public power.

A detailed Guardian analysis concluded last year that San Francisco would be able to cut electric rates by 15 percent if it ran its own utility (see "Cleaner and cheaper," 9/10/2008). That’s an entirely reasonable estimate, according to Jeff Shields, general manager of the South San Joaquin Irrigation District, which is fighting with PG&E to take over electricity distribution in its service area. He projects similar savings for his customers.

Shields thinks his system (and one in San Francisco) could cut rates even further. As nonprofit, he explained, SSJID can save money in multiple areas and pass those savings onto customers.

"We don’t pay taxes on earnings," he told us. "PG&E, as a shareholder company, can collect an 11.45 percent margin of profit. We don’t pay that. We don’t have the same overhead. We don’t have high-rises or corporate jets."

Public power agencies pay less to borrow money, are eligible for tax-exempt financing, typically have a higher credit rating and often keep a substantial cash reserve.

"[Selling electricity] will continue to produce substantial income," he said. "As a nonprofit, the only thing we can do with that income is continue to drop rates."

Other municipal utilities, like Silicon Valley Power in Santa Clara, have been able to keep rates low as PG&E has continued to raise rates. Larry Owens, customer services manager at SVP, said its residential rates are half of PG&E’s, and less for larger users.

The opportunity cost of not having municipal power — factoring in PG&E’s proposed rate hike and the assumption, based on Guardian and SSJID analyses, that rates would be lowered by at least 15 percent — is approximately $545 million over the next four years. Theoretically, that money could have resulted in a $980 million to $2.8 billion bump in the local economy.

This doesn’t include what some municipal utilities call "general fund transfers" or money that goes directly into a city’s piggy bank to be spent on libraries, schools, public health, and other services.

"Private sector utilities pay money to shareholders," said Joyce Kinnear, utility marketing services manager in Palo Alto. "We give these payments to the general fund to give services to local residents."

In Palo Alto’s case, this amounts to more than $9.25 million annually, or 9 percent of annual sales revenue, according Ipek Connolly, senior resource planner for the Palo Alto Utilities Department. Alameda Municipal Power’s Alan Hanger says AMP pays at least $4.2 million into city coffers. Silicon Valley Power, according to Owens, sends 5 percent of its revenue back to the city in the form of $12.92 million.

Shields, at SSJID, said the utility plans to give 4 percent of revenue to a public benefits program for "various social services, conservation, and energy efficiency programs." This, in addition to general fund transfers, constitutes a direct contribution to the community 50 percent larger than PG&E’s.

"Public power systems provide a direct benefit to their communities in the form of payments and contributions to state and local government," Nicholas Braden, director of communications at the American Public Power Association, told us. "The total value of the contributions made by the publicly-owned utilities often comes in many forms and is not always easily recognized. In addition to payments such as taxes, payments in lieu of taxes, and transfers to the general funds, many of the utilities make other contributions in the form of free or reduced cost services provided to states and cities."

San Francisco has a 7.5 percent utility user tax, but the tax is only levied on homes and businesses. In other words, PG&E takes hundreds of millions out of the local economy — and gives back nothing.

————-

HOW SF COULD LOSE $2.8 BILLION

Amount San Franciscans paid for electricity IN 2009: $644 million

Additional cost of PG&E rate hike (per year): $157 million

Multiplier (maximum estimate): $787 million

Reduction in costs under public power: $483 million

Multiplier: $2.1 billion

Total impact of high PG&E rates: $2.87 billion

SOURCE: Guardian research based on public records

————

RATE HIKES HIT THE POOR HARDEST

Pacific Gas and Electric Co. estimates that its current rate hike proposal will add between $2.23 and $16.76 per month to an average residential electricity bill. That may not seem huge — but it adds up.

"Each rate hike in and of itself isn’t that much money," acknowledges Mindy Spatt of the Utility Reform Network (TURN). "But overall, rates are very high."

And if you’re in one of the 24,000 San Francisco families that, according to U.S. census data, livie in poverty, even the smallest increase in utility bills can have serious ramifications.

"A few dollars here, and a few there can really affect low-income households," said Stephanie Chen, legal fellow at the Greenlining Institute, a public policy research and advocacy group. "It can mean the difference between ‘Do I pay the power bill, or do I buy groceries?’"

Utility bills are not a discretionary expense, and, as unemployment continues to rise and adjustable rate mortgages continue to adjust upward, more households are finding themselves squeezed on all sides. Depending on timing and cash flow, Chen said it would be easy to imagine a formerly stable household unable to pay the utility bill.

And if a household can’t pay the bill for two weeks, PG&E sends a notice of termination and shuts off power. According to Spatt, PG&E shuts off 15,000 households in its service area each month.

"Rate hikes are certainly not going to bring down that number," she said. "These are not people who can’t pay for a Mercedes and got it repossessed. They are people who are losing heat, electricity, the ability to cook."

To turn the power back on, PG&E requires a deposit of twice the average bill to reestablish credit. If a household can’t pay its regular bill, paying twice the amount is even harder.

Spatt says TURN is working to push the CPUC to do something about this and help consumers who are struggling. Chen says utility companies already know their customers are hurting during the recession.

"All the utilities are facing decaying infrastructure concerns and renewable energy goals," Chen said. "They are facing increased costs, which they pass on to ratepayers. We know rate increases are inevitable — but we want to make sure they are necessary and cost-effective."

Urban man

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steve@sfbg.com

Maybe Burning Man can’t save the world, but its leaders and participants are increasingly focused on using the models and principles involved with building and dismantling Black Rock City in the Nevada desert every year to help renew and restore urbanism in the 21st century.

The arts festival and countercultural gathering that was born in San Francisco 23 years long ago defied the doomsayers and became a perpetual institution, particularly here in the Bay Area, where it has become a year-round culture with its own unique social mores, language, fashion, calendar, ethos, and infrastructure.

Now, the SF-based corporation that stages the event, Black Rock LLC, has set its sights on taking the next big steps by trying to create a year-round retreat and think tank on a spectacular property on the edge of the playa and by trying to move its headquarters into a high-profile property in downtown San Francisco — perhaps even the San Francisco Chronicle Building.

Complementing those ambitions is the art theme that Burning Man honcho Larry Harvey recently announced for 2010 — "Metropolis: The Life of Cities" — which seeks to connect the event’s experiments in community and sustainability with the new urbanism movements in places like San Francisco and New York City. Harvey told us the idea came to him earlier this year as he attended the Burning Man regional event called Figment and toured some of New York’s efforts to reclaim public spaces from automobiles.

"I found that inspiring," Harvey said of the recent changes to Times Square, marveling at the conversation circles people set up in the gathering spaces that used to be traffic lanes. "Here we have New York City creating a civic space that works like the city we create. It would be even better if they’d put up some interactive art."

In a video segment on the 2009 event by Time.com entitled "5 Things Cities Can Learn from Burning Man," Harvey spelled out some key urban living principles cultivated in Black Rock City: ban the automobile, encourage self-reliance, rethink commerce, foster virtue, and encourage art.

"It’s become a better and better social environment," Harvey said of Black Rock City, the population of which peaked at about 43,000 this year, down slightly from last year. "People have come to respect its urban character, so we’re ready for a discussion like this."

As part of next year’s theme, Harvey said he plans to invite urban planners and architects from around the world to come experience Black Rock City and share their ideas about encouraging vitality in cities, before and during the event. Cultivation of the vast interdisciplinary expertise that creates Burning Man each year is also why the organization is seeking to buy Fly Hot Springs on the edge of the Black Rock Desert.

"That’s what the think tank is about: Let’s get together and think about the world and use Burning Man as a lens for that," Harvey told us. "I think art should imitate life, but I’m not really happy until life imitates art."

Harvey is reluctant to talk much about his plans for the property until they can seal the deal — something the attorneys are now actively trying to hammer out — but he said the basic idea is to create "a laboratory for ideas." To try to raise capital for the project, Burning Man bused 100 rich burners — including Ben Cohen of Ben & Jerry’s Ice Cream and Laura Kimpton of the Kimpton Hotel chain — to a dinner at the site on Aug. 27.

Meanwhile, back in San Francisco, where Black Rock LLC was earlier this year forced to move from its longtime Third Street headquarters because of plans by UC Mission Bay to build a hospital on the site, Burning Man and city officials are collaborating on plans for a showcase space.

"While all this is going on, we have been talking to the city about moving downtown. They really want us there," Harvey said.

The organization came close to landing on a big space in the Tenderloin, but that fell through. Recently, Harvey and city officials even toured the San Francisco Chronicle building at the corner of Mission and Fifth streets, which Hearst Corporation has had on the real estate market for some time, exploring the possibility of it becoming the new Burning Man headquarters.

For that site and other high-profile spots around downtown, city planners and economic development officials are actively courting significant tenants that would bring interactive art and creative vitality to street life in the urban core. "Well, that’s like a theme camp," Harvey said. "That’s what we do."

In recent years, Black Rock LLC has expanded what it does through Black Rock Arts Foundation (which funds and facilitates public art off the playa), Burners Without Borders (which does good works from Hurricane Katrina cleanup to rebuilding after the earthquake in Pisco, Peru), Black Rock Solar (which uses volunteer labor to do affordable solar project for public entities), and other efforts.

But simultaneously creating a think tank, retreat, and high-profile headquarters — with all the money that would require — could reshape the institution and its relationship with San Francisco in big and unpredictable ways. Harvey describes it as entering a new era, one he says he is approaching carefully and with the intention of maximum community involvement in key decisions: "You want to build trust and enthusiasm as you go along."

Where would we be without rent control?

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news@sfbg.com

OPINION This year marks the 30th anniversary of rent control in San Francisco. On June 13, 1979, the Board of Supervisors passed a law that was seen by tenant activists as a fairly weak version of rent control. The supervisors were acting under pressure from landlords, who were lobbying them to hurry up and pass a law before the November election, when landlords feared San Francisco voters would enact a stricter version.

So the supervisors went with a middle-of-the-road measure, but its passage was still a milestone. Today, San Franciscans in rent-controlled apartments shudder to think where they would be without this basic protection. Many would be priced out of the rental market — and out of the city altogether.

The original legislation has been amended many times to limit annual rent increases, to expand who is covered by rent control, and to give increased protections from eviction to seniors, disabled people, the catastrophically ill, and long-term tenants. To curb the use of Ellis Act evictions by real estate speculators, buildings where seniors or disabled tenants have been evicted are now barred from condo conversion. In the past few years, we have worked to raise mandatory relocation payments for tenants, and added increased protections against landlord harassment.

Tenants are still being pressured to leave their apartments with supposed voluntary buyouts, a type of roulette in which speculators wave cash and tenants need nerves of steel to resist the threat of little money and no apartment — or more money and no apartment. But tenants keep organizing and holding on.

The San Francisco Tenants Union, Housing Rights Committee, St. Peter’s Housing Committee, Tenderloin Housing Clinic, and the Eviction Defense Collaborative all work with limited staff and many dedicated, inspiring volunteers to inform tenants of their rights and represent them when they need legal assistance. Tenants Together, founded last year, is now organizing tenants statewide and making progress all over California.

Sup. Eric Mar is sponsoring legislation that would give eviction protection to families with children — currently an endangered species in San Francisco. Study after study has shown the negative effect of evictions on families with children. More than half of all families with children in San Francisco live in rent-controlled apartments. A recent nationwide report named San Francisco as the major metropolitan area with the lowest number of children. In addition to tenants groups, a broad coalition of education and health groups have given their support to the Mar legislation. If you haven’t already done so, write or fax your supervisor in support of the legislation.

Meanwhile, come celebrate the 30th anniversary of rent control by stopping by one of our tenants rights counseling booths Saturday, Sept. 19 between 11 a.m. and 2 p.m. (see www.sftu.org for locations). Get info on our reduced price anniversary memberships and commemorative t-shirts. Then join us back at 558 Capp St., the Tenants Union office, for a barbecue, raffle, and Tenants Hall of Fame festivities where we can all celebrate 30 years of fighting for safe, fairly priced housing.

Susan Prentice is a San Francisco Tenants Union counselor/activist.

Better than sex? ‘Architecture and and the City’

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By Marke B.

509-eventbox.jpg

I don’t know whether this is awesome or boring, but one of the most perverse pleasures to be had in the Bay for the last decade has been fantasy house-hunting — dressing like you can afford more than a rent-controlled railroad flat’s closet and hitting the Sunday open-house real estate orgy circuit, mostly to decry the recent penchant for tacky recessed lighting and cheap beige granite counter-tops. The ’80s are back! If you’re a premium architecture and design junkie, though, you’ll be swooning all September — launching your intellectual and tactical fantasies into the clouds with the Architecture and the City festival, presented by AIA San Francisco. The sixth annual celebration of unique builds, the nation’s largest, not only takes you on the San Francisco Living: Home Tours drool-a-thon (Sept. 12-13) focusing on smart sustainability, but also explores a bonanza of exciting, dialogue-stimulating Bay design ideas through presentations, investigations, demonstrations, and more. Prepare to push up your teeny octagon-shaped eyeglasses and scream, "Build it! Build it NOW!"

ARCHITECTURE AND THE CITY Through September 30. Check Web site for locations, times, and prices. www.aiasf.org/archandcity

Architecture and the City

0

PREVIEW I don’t know whether this is awesome or boring, but one of the most perverse pleasures to be had in the Bay for the last decade has been fantasy house-hunting — dressing like you can afford more than a rent-controlled railroad flat’s closet and hitting the Sunday open-house real estate orgy circuit, mostly to decry the recent penchant for tacky recessed lighting and cheap beige granite counter-tops. The ’80s are back! If you’re a premium architecture and design junkie, though, you’ll be swooning all September — launching your intellectual and tactical fantasies into the clouds with the Architecture and the City festival, presented by AIA San Francisco. The sixth annual celebration of unique builds, the nation’s largest, not only takes you on the San Francisco Living: Home Tours drool-a-thon (Sept. 12-13) focusing on smart sustainability, but also explores a bonanza of exciting, dialogue-stimuutf8g Bay design ideas through presentations, investigations, demonstrations, and more. Prepare to push up your teeny octagon-shaped eyeglasses and scream, "Build it! Build it NOW!"

ARCHITECTURE AND THE CITY Through September 30. Check Web site for locations, times, and prices. www.aiasf.org/archandcity

Editor’s Notes

0

Tredmond@sfbg.com

Every poor and working class community in San Francisco has learned the hard way that its interests are at the bottom of the list as far as City Hall is concerned. At the top of the list are the banks, real estate interests, and large corporations, who view San Francisco not as a place for people to live and work and raise families, but as a corporate headquarters city and playground for corporate executives. By using their vast financial resources, they have been able to persuade local government officials that office buildings, hotels, and luxury apartments are more important than blue-collar industry, low-cost housing and decent public services and facilities.

Sound familiar?

It’s more than 30 years old.

Back in 1974, more than 50 San Francisco community groups — from Bay Area Gay Liberation to the Telegraph Hill Neighborhood Center, from the Federation of Ingleside Neigbhors to the San Quentin Six Defense Committee, from the Golden Gate Business and Civic Women’s Association to the Socialist Coalition — started meeting to develop a plan to take back the city.

It culminated with a Community Congress, on June 8, 1975, at Lone Mountain College (now part of the University of San Francisco). More than 1,000 people attended, and they drafted a remarkable 40-page document that outlined an alternative political, economic, social, and environmental agenda for San Francisco. The movement led, among other things, to the advent of district elections of supervisors (a key element in the platform) and the rise of active community-based organizations in this city.

Calvin Welch and Rene Cazenave, the veteran activists who run the San Francisco Information Clearinghouse, were among the organizers. They found the old manifesto recently and sent it out to a few of us by e-mail. I’ve posted it on the Politics blog. It calls for rent control, a sunshine ordinance, a health commission, full-time supervisors (who were to be paid $20,000 a year, the equivalent of $86,000 today), cable-TV coverage of the supervisors meetings, a mandate that developers build affordable housing and a feasibility study on public power. In fact, much of what the left has achieved in San Francisco in the past three decades is outlined in the Community Congress document.

(The congress also called for decriminalization of victimless crimes, including public inebriation, a guaranteed annual income, the abolition of the criminal grand jury, and some other things that didn’t quite come to pass.)

I mention this not only because it’s a fascinating historical document but because Welch and Cazenave think it’s time for a new Community Congress. Their draft agenda refers to a New Deal for San Francisco, and they’re talking about holding a series of meetings culminating in a major session sometime next year.

It’s tough to get the San Francisco left to come together on issues, even harder to build a broad-based organization that can push an agenda. Sup. Chris Daly tried several years ago, but the San Francisco People’s Organization never got the traction many of us had hoped for.

But although the progressives have accomplished a tremendous amount in this city, and have come a long way since 1975, the need is still there.

"San Francisco’s downtown corporate and banking interests and their representatives in city government are attempting at a local level to shift the burden of the current economic and political crisis ever more fully onto the backs of the poor and working people of San Francisco."

That was then. Today, Welch and Cazenave write, "San Francisco stands at a crucial junction brought about by the collapse of the real estate based speculative bubble and the related steep reduction of city revenue resulting in cuts in funding important programs and services … There needs to be a general coming together of community groups to articulate a set of policies able to be implemented at the local level which seek to maximize community control over the provision of critically needed health and human services and beneficial community development and to maintain a vital public sector."

Sounds like a plan. *

The algae solution

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The San Francisco Bay may soon host a dramatic new environmental project that backers say could solve three problems at once: clean wastewater, remove carbon from the atmosphere, and produce biodiesel fuel. Yet it’s gotten remarkably little attention.

"For the most part, people are just ignoring me," says Jonathan Trent, a researcher at NASA Ames Research Center at Moffett Field, who is one of the driving forces behind the project.

The new technology Trent and his colleagues have created is called OMEGA (Off-shore Membrane Enclosures for Growing Algae). The idea is to grow large colonies of freshwater algae in what amounts to large plastic bags floating in the bay.

Wastewater from local sewage plants and carbon sequestered from power plants would provide food for the algae, which then produce oxygen and freshwater along with an oil that can be refined into fuel.

The OMEGAs are giant semi-permeable membranes; the design allows freshwater in but keeps saltwater out.

Using algae for biofuel isn’t new — there are a number of algae farms on land. But they require large amounts of real estate and fresh water and enough electricity to keep the water moving.

In this case, light from the sun provides the energy, and the motion of the waves stirs the algae around.

Trent is looking at ways to collect the freshwater that gets released by the OMEGAs — potentially another major breakthrough for a state desperately short of water.

Trent has shopped his project all over the world and many countries have showed interest, but he believes San Francisco is the perfect fit. "The people of San Francisco really have an enlightened attitude and are aware that something needs to be done to fix the problems we’ve created," he told us. "It’s a great place to demonstrate to the world that this is a feasible technology."

The OMEGA project still faces political hurdles. Trent recently survived an internal audit. And U.S. Rep. Bart Gordon (D-Tenn.) has been critical of federal spending for biofuel projects.

But the scientist isn’t discouraged. "Actually I’m glad we have been audited," he said. "I’ve been able to get attention and show that not only does our system not use water, it actually produces clean water."

On July 29 the project received approval for an $800,000 grant from the California Energy Commission. According to Trent, the approval for the grant was ready for approval months earlier, but Gov. Arnold Schwarzenegger wanted to put it on hold because of the budget crisis.

The CEC grant is coming just in time. A previous grant, from Google, was due to run out at the end of September. "We’re optimistic that if people see that the CEC has invested, maybe others will want to invest," Trent said. "But we need more than just financial resources — we need brain power as well. The next step is to find engineers to really make this a workable option."

Trent would like to get a working model up and running within the next 18 months and hopes to see a full-scale operation in place in five years.

San Francisco may be the first city to host OMEGA. San Francisco Public Utilities Commission staffers have met with Trent and are cautiously optimistic. "Although it is just at the preliminary stages of discussion, it doesn’t dampen our excitement about the project," said Tyrone Jue, spokesperson for the SFPUC. "We have to know what good we will get out of it and if it is feasible in this area."

Environmentalists caution that it’s far from a perfect solution to the planet’s problems. Sierra Club staffer John Rizzo notes that "biofuels themselves are not a good solution. It’s a good bridge, but they are still burned and create carbons that are bad for the planet." In the short term, however, it sure beats drilling for oil off the California coast.

What’s wrong with San Francisco?

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EDITORIAL In the end, Mayor Gavin Newsom got his way. The San Francisco supervisors made some significant changes to the budget and saved some $40 million worth of programs that the mayor wanted to cut or privatize, but the Newsom for governor ads will still be able to proclaim that the mayor solved his city’s budget problem without raising taxes or cutting police and firefighters.

Instead, this fall some 1,500 city employees are slated to be laid off, 400 of them in the Department of Public Health. Many recreation directors will get pink slips. Human services will lose at least 100 people. Nonprofit service providers will see much of their city funding disappear. The money to pay for public financing of the upcoming supervisorial and mayoral races is gone. Newsom’s pet (and expensive) 311 service will still be open 24 hours a day (with a lot of the money coming from Muni).

Not one of the city’s hugely redundant fire stations will close, even for a few days at a time. The bloated police budget will see no significant cuts, and the cops and firefighters will still get raises. The mayor will continue to employ five people in his press office.

And the only new revenue in the budget comes from fee increases on Muni, public parks, after-school programs, street fairs, restaurants, and the like.

Sup. John Avalos, chair of the Budget and Finance Committee, told us this was the best deal the supervisors could get, and it’s true that the board forced Newsom to add back a lot of money he wanted to cut. But the committee stopped far short of doing what it should have done — fundamentally changing the priorities of the Newsom budget.

Campos told us that he had "mixed feelings" about the deal and expressed concern about the board’s ability to shape midyear cuts and the lack of commitment from Newsom to support support placing revenue measures on the November ballot. Mirkarimi said he was happy with the dollar amounts of the add-backs but proposed holding in reserve some funding for the mayor’s pet projects — a tool for ensuring that Newsom consults with supervisors on the midyear cuts as promised — but Avalos opposed the idea.

Avalos said he’s relying on Newsom’s commitment to him: "The mayor has given me the assurance that he will not make unilateral decisions." But Newsom has a history of breaking such promises.

And the supervisors have not included any new tax revenue in the budget projections. Which puts San Francisco far behind Oakland.

The Oakland City Council has plenty of problems, and the mayor of Oakland, Ron Dellums, has been missing in action on a lot of the city’s problems lately. But when the mayor and the council had to address the budget problems, they came up with a solution that includes at least $6 million in new taxes. While that sounds like a small number, it’s almost 10 percent of Oakland’s budget shortfall. And the new taxes, which will need voter approval in a special July 21 election, are included as part of the budget plan for fiscal 2009-10.

Two of the new taxes — a levy on pot clubs (which the clubs themselves strongly support) and a loophole-closing measure that forces big businesses to pay their fair share of real estate transfer taxes — require only a simple majority vote to take effect. The reason: the council voted unanimously to declare a fiscal emergency and put the measures on the ballot. That allowed the city to avoid the state law that requires a two-thirds vote on most new taxes.

Measures C, D, F, and H make up a generally progressive package that has the support of Council Members Rebecca Kaplan and Jean Quan and Rep. Barbara Lee. We’re happy to endorse all four.

Measure C is a 3 percent increase in the city’s hotel tax, which would rise from 11 percent to 14 percent. Half the new money would go to the Oakland Convention and Visitors Bureau while the other half would be split between the Oakland Zoo, the Chabot Space and Science Center, and cultural arts programs and festivals in the city. We could argue with the distribution (arts festivals should probably get more money and the Visitors Bureau less) but overall, it raises the hotel tax to the level of most other cities in the area and would raise money for the sorts of programs hotel taxes typically fund.

Measure D is a technical amendment to the Oakland Kids First law that mandates spending on programs for children and youth. It changes the spending requirement from 1.5 percent of total city revenues to 3 percent of the general fund. That’s slightly less money than the program currently gets, but a lot more than it has had over the past decade. The coalition that put Kids First on the ballot in 1996 (and modified it in 2008) supports this modest change.

Measure F is a creative new tax. It would impose a 1.8 percent gross receipts tax ($18 per $1,000 in sales) on medical marijuana businesses. Most efforts to hike business taxes face bitter opposition from business owners, but in this case, the pot clubs are happy to pay. In fact, the four dispensaries in Oakland are among the measure’s strongest supporters. Paying taxes tends to legitimize the clubs — and while it’s going to be tricky to track sales in what is still largely a cash business where records have in the past been kept vague to avoid the threat of federal prosecution, this is a strong step in the right direction.

Measure H would prevent big corporations from cheating Oakland out of real estate transfer taxes. Under current law, a business that owns property in Oakland and is bought by another business (or becomes part of a merger) doesn’t have to pay transfer taxes on the property it owns. Closing that loophole could bring in as much as $4.4 million a year.

There’s a lesson here for the much larger city across the Bay.

San Francisco desperately needs new revenue. And while the mayor has talked, in vague terms, about maybe supporting some sort of tax measures in November, he hasn’t committed to anything. There are several proposals floating around the board, the latest of which is a Labor Council-supported tax on alcohol consumption, but no coherent package. The progressives on the board — both those who support the compromise Newsom budget and those who don’t — need to set aside those differences, now, and get to work on finding ways to bring in enough new money to deal with the impacts of further state cuts and stave off some of the layoffs slated for the fall.

The main obstacles are Sups. Sean Elsbernd and Michela Alioto-Pier. Everyone who cares about saving services in this city needs to pressure them to back away from their GOP-style no-new-taxes stands. If those two would at least agree to let the voters decide on new revenue measures, the city would likely get a unanimous board — and the ability to raise taxes with a simple majority vote.

Oakland’s pot club tax and real estate transfer tax are great ideas that can be directly imported to San Francisco. The city’s business tax could be made more progressive (and bring in new revenue) with a simple change in the tax rates (higher on the big outfits, lower on the small ones). We’re dubious about a sales tax increase — even a half-percent hike would bring the local tax rate to 10 percent. And, even though the alcohol tax isn’t exactly progressive, those ideas could be acceptable as part of a package.

The main thing is that the city will need, at minimum, another $100 million this fall, and probably ought to be looking at raising twice that much. Oakland — a city with far fewer resources, a much smaller business base, and radically less wealth — is managing to fight its deficit with progressive taxes. What’s wrong with San Francisco?

P.S.: Sup. Chris Daly was outspoken in his criticism of the budget deal, blasting Newsom and even taking on his former aide and longtime ally, Avalos. But for all his bluster about the mayor, Daly couldn’t bring himself to oppose Anson Moran, Newsom’s nominee for the Public Utilities Commission. Moran was a staunch ally of Pacific Gas and Electric Co. when he was the PUC’s general manager, and the full board should reject him. *

Editor’s Notes

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Tredmond@sfbg.com

There was plenty in the long New York Times Magazine cover story profile of Gavin Newsom to induce the Technicolor yawn. But the sentence I found most offensive was buried after the jump, down at the bottom of a page of type: "While generally considered a liberal by people outside of San Francisco, Newsom has not shied from confronting the left with tough love."

Say, what?

Whenever you read something in the Almighty Times that uses terms like "generally considered," you need to stop and think. Considered by whom? And what the hell does the Times mean by "liberal?"

You can define that word any way you want — Wikipedia has a long history, and outlines the difference between the classical liberalism of John Locke, Adam Smith, and David Ricardo (much of which we would now call libertarianism) and the social liberalism of the postwar era. I think any honest definition, though, rests in significant part on the notion that unregulated free markets are not always the best way to allocate resources, that government has a role in helping the needy, and, perhaps most important, that one of the primary functions of government is to reallocate income and resources to increase equality — that is, to tax the rich to feed the poor.

Liberalism got a bad name in the 1960s, particularly when it was used to apply to politicians like Lyndon Johnson and Hubert Humphrey, who had the right ideas about using exceptionally high taxes on the very rich (the marginal rate in that era was more than 70 percent) to fund programs like the Great Society, but were utterly wrong about the Vietnam War and the use of U.S. military force abroad. And in the 1970s and 1980s, liberal politicians like Phil and John Burton in San Francisco became way too close to the real estate developers.

But words have to mean something, or the whole gig is over. And, as far as I’m concerned, a mayor who refuses to raise taxes to cover a huge budget deficit, and instead cuts wholesale from programs that help the poor, is not by any definition a "liberal."

He’s not terribly good at "tough love," either.

The Times uses his implementation of Care Not Cash as an example — the program, the magazine says, "essentially ended direct payments to homeless people and put the money into service agencies instead." Not exactly true — Newsom ended direct payments to homeless people, but the "care" part of the package was never really there. And it’s all gone in this latest budget. That’s not tough love — it’s just tough.

The idea that Mayor Newsom of San Francisco is a good liberal who is still willing to challenge the left every now and then is just mythology. Newsom (generally, to use the Times’ favorite word here) has no relations whatsoever with the left. That fact might help him in the campaign — Californians as a whole are not as progressive as San Franciscans. But let’s at least be honest about it.

And of course, the lavish story is another sign that the Newsom campaign is rolling ahead very nicely. "The fact that a national newspaper of the stature of the Times decides that Gavin Newsom is the story in the governor’s race is certainly a plus," Eric Jaye, Newsom’s chief political advisor, told me. I’d say that’s a bit of an understatement. *

The deadbeat church

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news@sfbg.com

The Roman Catholic Archdiocese of San Francisco is trying to duck paying as much as $15 million in city taxes, according to documents filed by the city assessor’s office.

Assessor-Recorder Phil Ting argues that the archdiocese, which governs a collection of churches, schools, parking lots, commercial buildings, and other real property in the city, shifted 232 parcels of land from two church-held corporations to another church corporation in April 2008, triggering real estate transfer taxes.

The legal issues are complicated, and church lawyer Philip Jelsma wouldn’t return our calls, but the city officials say the deal amounts to this: The archdiocese is moving valuable property out of the hands of a corporation that might be liable for legal claims and into a separate entity that would be exempt from those claims.

And the church is taking two contradictory positions on the reorganizing. According to documents from the Assessor-Recorder’s Office, when the archdiocese is discussing the protection of its assets from litigants, it claims that the legal entities in question are separate and distinct under civil law. However, when the city comes calling for much needed transfer tax dollars, church officials argue that the entities are merely interdenominational under the common banner of the Roman Catholic Church and that the transfers are considered "gifts" under canon law.

The issue comes before the Transfer Tax Board of Review on June 16. If the board, made up of the controller, the tax collector and the head of the Department of Real Estate, upholds Ting’s position, the city will be able to collect between $3 million and $15 million, depending on the assessed value of the transferred parcels.

Major corporations in San Francisco have a long history of using bogus property transfers and shifts in corporate ownership to avoid paying property and transfer taxes. But this case is a bit more curious: why is the Roman Catholic Archdiocese, self-proclaimed champion of the poor, fighting tooth and nail to keep the city from collecting tax dollars that would help fund public welfare programs?

The deadbeat church

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news@sfbg.com

The Roman Catholic Archdiocese of San Francisco is trying to duck paying as much as $15 million in city taxes, according to documents filed by the city assessor’s office.

Assessor-Recorder Phil Ting argues that the archdiocese, which governs a collection of churches, schools, parking lots, commercial buildings, and other real property in the city, shifted 232 parcels of land from two church-held corporations to another church corporation in April 2008, triggering real estate transfer taxes.

The legal issues are complicated, and church lawyer Philip Jelsma wouldn’t return our calls, but the city officials say the deal amounts to this: The archdiocese is moving valuable property out of the hands of a corporation that might be liable for legal claims and into a separate entity that would be exempt from those claims.

And the church is taking two contradictory positions on the reorganizing. According to documents from the Assessor-Recorder’s Office, when the archdiocese is discussing the protection of its assets from litigants, it claims that the legal entities in question are separate and distinct under civil law. However, when the city comes calling for much needed transfer tax dollars, church officials argue that the entities are merely interdenominational under the common banner of the Roman Catholic Church and that the transfers are considered "gifts" under canon law.

The issue comes before the Transfer Tax Board of Review on June 16. If the board, made up of the controller, the tax collector and the head of the Department of Real Estate, upholds Ting’s position, the city will be able to collect between $3 million and $15 million, depending on the assessed value of the transferred parcels.

Major corporations in San Francisco have a long history of using bogus property transfers and shifts in corporate ownership to avoid paying property and transfer taxes. But this case is a bit more curious: why is the Roman Catholic Archdiocese, self-proclaimed champion of the poor, fighting tooth and nail to keep the city from collecting tax dollars that would help fund public welfare programs? *

Saving the southeast

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sarah@sfbg.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TICed off

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news@sfbg.com

San Francisco tenants who are supposed to be protected by city and state laws are now facing eviction as a result of real estate speculators working hand-in-hand with banks in a scheme that has been implicitly endorsed by federal regulators and the courts.

Kaushik Dattani, whose company owns multiple properties throughout San Francisco, won a summary judgment to use the Ellis Act to evict four families from their rent-controlled apartment. Judge Charlotte Woolard’s April 21 ruling, denying the low-income Mission District families a jury trial, could leave the 12 longtime residents — seniors, disabled, single mothers, and children — homeless within a couple of weeks.

In August 2007, court records show Dattani secured an 18-month, interest-only $1.3 million loan from Circle Bank of Marin to buy the Victorian building at 19th and Lexington streets. The loan included an agreement that he would pull the units from the rental market using the Ellis Act, renovate the building, and sell the five Victorian units as tenants-in-common (TICs).

Traditionally banks haven’t offered loans to individual TIC owners, but Circle Bank of Marin was one of the first banks to start offering such "fractional" loans in 2005, a practice that created a strong market for TICs, loan officer Mark Skolnick (who says he’s an independent contractor and not a bank employee) told the Guardian.

In making the loan to Dattani, court documents show Skolnick predicted a 42 percent profit, which would require all five TIC units to be sold for $3.3 million. But according to Tenderloin Housing Clinic attorney Steve Collier, Dattani has not yet paid off the balloon payment — due April 1 — putting the building at risk of getting handed over to the bank, emptied of residents.

Kevin Stein, associate director of the California Reinvestment Coalition, said the lending scheme is contrary to the federal Community Reinvestment Act, which encourages banks to meet the credit needs of the low-income communities. "It’s within the Federal Deposit Insurance Corp.’s power to say these kinds of loans that result in the displacement of low and moderate income tenants are not helping to meet the community’s credit needs," he said, noting that the FDIC has refused to get involved.

Others argue the importance of creating home ownership opportunities in a city where about two-thirds of residents rent.

"Here we have what looks like a condo, feels like a condo, but it’s a TIC. It’s a way of creating affordable housing," Skolnick said. "Some people lose their home, some people gain a home. The TIC platform is proving to be a very affordable option for this different subset of people."

But for the subset of people being displaced using the Ellis Act — a state law intended to allow existing landlords to get out of the rental business, not to encourage real estate speculation — the affect can be devastating in a city where little new rental or affordable housing is being built.

"They just come in out of nowhere and they see this place, buy it and kick everyone out. There’s no soul there," said Luise Vorsatz, who lived in the house for 30 years before being evicted.

This is not Dattani’s first Ellis Act eviction (when the Guardian contacted Dattani for comment, he hung up on us). In 2000, he hired infamous antitenant lawyers Wiegel & Fried to evict senior Alma Augueles from her flower shop in the Mission. In 2007, he evicted a group of tenants living above Revolution Café on 22nd and Bartlett streets. That building has sat empty for over a year, something that could also happen with his new property given the slumping real estate market.

Under the Ellis Act, if the unit go back on the rental market within five years, the evicted tenants have first priority at their old rent level, but that’s up to the tenants to enforce. "It’s possible the landlord won’t be able to sell and will end up renting it at higher rents," Ted Gullicksen, executive director of the San Francisco Tenants Union, told us.

"They don’t look at the fact that we have pride of tenancy—that we have lived here all these years," said 23-year resident Ronny Ruddrich, who raised her children here and walks to her job as a Noe Valley shoe store manager for the past 22 years. "He drives up in his Mercedes and shows no respect whatsoever."

Lymelife

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REVIEW It’s 1979, and disco isn’t the only thing that sucks for Long Island teen Scott (Rory Culkin). Bullies at school beat up his skinny 15-year-old ass; girl next door Adrianna (Emma Roberts) likes him, but "like a brother." Housewife mom Brenda (Jill Hennessy), neglected by real estate magnate spouse Mickey (Alec Baldwin), has gone kinda crazy. Buying into the paranoia around deer-tick-carried Lyme disease, she won’t let Scott go outside without duct-taping shut all worrisome gaps in his clothing. It’s pretty clear to everyone (particularly older son Jim, played by Kieran Culkin — who here seems a rare live wire in the usually underwhelming Culkin acting dynasty) but her that dad is cheating, though for a while no one guesses it’s with Adrianna’s bitchy mum Melissa (Cynthia Nixon). Melissa has her own problems at home, given that husband Charlie (a strikingly tragicomic Timothy Hutton) really does have Lyme disease, which has turned him from a dynamo into an exhausted, pitiful shell of a man. Yeah, you’re thinking, do we really need another dysfunctional-family flashback with the requisite retro pop hits, pot smoking (back when it came dirt cheap), awkward virginity loss, and nostalgically horrible decor? Sure, why not. Lymelife treads no original territory, but its setting and characters are granted more than skin-deep authenticity, and the tangled conflicts in director Derick Martini and cowriting brother Steven Martini’s screenplay really do lead somewhere interesting, even important. There are some annoying quirks, but the overall the Martinis nail a savvy balance of comedy and drama. Plus, amid numerous good performances, there’s Baldwin giving a smug, surly yet sympathetic one that should be a shoo-in for award consideration if anyone still remembers little Lymelife at year’s end.

LYMELIFE opens Fri/24 in Bay Area theaters.

Lennar’s housing scam, redux

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By Steven T. Jones

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

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

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

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

Reject the Fisher Museum

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OPINION The Presidio Trust Board and the National Park Service in December rejected Gap Inc. founder Don Fisher’s proposed art museum in the Presidio. They complete their review of his second offer next month. They should reject the second offer as well, and the game will be over.

Fisher and his family should stop trying to convince the Park Service to bend its rules. They should set aside their pride and their own preferences in deference to those of the Park Service and the city of San Francisco. They should announce their decision to move forward with the city to find a location in the city proper.

Most of us in the Presidio’s neighborhood communities do not agree with the seven trust board members that developing a cultural theme park in the Presidio is a good idea. It was introduced by the board only in response to the unsolicited proposal by the Fishers in April 2007. These board members, Fisher’s former colleagues — who are mostly real estate developers — were appointed by former President Bush. President Obama will have his own appointees on the board by June, in time to make the final decision on the Fisher museum.

We don’t want an extravagant $50 million new gathering place in front of the Fisher museum — something the Fishers have offered to help pay for in exchange for permission to build where they want.

We cannot bear the thought of the series of traffic signals inside the park, near the Spanish El Presidio and the 160-year-old U.S. Army Post. The trust says those traffic signals, along with garages in the Presidio, would be needed to manage the daily visitors added by the Fishers’ museum. No national park in America has traffic signals.

Nor do we want the lineup of traffic and signal lights required outside the park, at entrances and on nearby residential streets, that the trust says would be required. The city would, I expect, refuse the federal trust’s request to change city traffic controls to support a museum — one that city officials want to see downtown.

The public will pay another million to respond to the Fishers continued effort. It will end in defeat, if the federal government follows its own review processes — or in a glaring corruption of those processes if it succeeds.

I urge the individual appointed members of the Federal Presidio Trust Corporation and National Park Service officials to reject the Fisher offer next month. Two years and $2 million is enough of our treasure to spend in responding to the unsolicited proposal.

I urge the public to attend the trust hearing April 16, 6:30 p.m. at the Presidio Golden Gate Club. Support the Fisher museum outside the park, and oppose it in the park. *
Donald S. Green is former executive director of the Yosemite Restoration Trust and vice chair of the Presidio Neighborhood Work Group of the SF Board of Supervisors.

Out with the old

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› rebeccab@sfbg.com

It may seem odd that the loss of a two-story vacant building would ruffle so many feathers, spur multiple phone calls to the police, and inspire a push from Board of Supervisors president David Chiu to make changes to San Francisco’s building code. But the March 16 demolition of the Little House, a 148-year-old Russian Hill cottage on Lombard Street, struck a nerve and raised a slew of questions — many of which continue to go unanswered.

Controversy may have started swirling because a property that has stood since Abraham Lincoln’s presidency was razed with scarcely a week’s notice on a swiftly issued emergency-demolition permit. It might also have been because the co-owners of the property, Michael Cassidy and James Nunemacher, represent the high-profile Residential Builders Association and the real estate firm Vanguard Properties, respectively — both politically well-connected entities that have been behind projects in the past that drew criticism from various citizens groups.

The Little House, which previously stood at 1268 Lombard St., was by some accounts one of the 10 oldest homes in San Francisco. Under the California Environmental Quality Act, a building of that age would normally require an environmental impact report before the Planning Department can issue a demolition permit. According to Department of Building Inspections spokesman William Strawn, the emergency demolition permit was issued after a structural engineer who had inspected the property on behalf of the owners sent a letter expressing concern that it was in danger of collapse. DBI staffers, including department manager Ed Sweeney, inspected it, and Strawn said the permit process started once they concluded that it presented a safety hazard.

Word that the cottage would be razed sparked an outcry from a group of concerned neighbors and historic preservationists, including architect F. Joseph Butler, who says he discovered it 15 years ago when he learned that it was one of the few structures on Russian Hill to escape the 1906 earthquake and ensuing fires. Butler says he doubts the building was in danger of collapse, and says he tried in vain to convince DBI to allow him to bring in a third party who could offer a second opinion. When asked about that possibility, Strawn said, "The building department would not rely on a third-party source."

The building was torn down March 16, with tensions simmering in the days leading up to it. When a demolition crew showed up March 9 ready to go to work, several days before the emergency permit had actually been issued, a neighbor who was trying to save the cottage phoned the police to halt the demolition. Police reports show that a few days later when the crew arrived on the property and were greeted by a small group of protesters, the cops were called twice more — by both sides. Joe Cassidy, Michael Cassidy’s brother and a prominent member of the Residential Builders Association, is the president of the demolition company.

Protesters charged that the building was neglected on purpose to hasten its demise, so the owners could skirt the regulatory EIR process. "It appears the property owner has exceeded the scope of their permit to replace dry rot by structurally damaging the building and claiming it is in imminent danger of falling down," Cynthia Servetnick, an architect with the SF Preservation Consortium, wrote in an e-mail to the City Attorney’s Office not long before the demolition. Building Commissioner Debra Walker, who also inspected it, noted that "the windows were out, and the doors were out in the back. It looked to me like people had just left it open."

Megan Allison Wade, who blogged about the demolition of the Lombard Street house, wrote in an e-mail to zoning administrator Larry Badiner that she perceived "a very clear case of willful neglect in an attempt to degrade the property into demolish-able condition."

Badiner responded: "This emergency demolition permit supersedes historic preservation and housing preservation procedures. … Without commenting on whether this is willful neglect, public safety would trump any concerns regarding how the building became unsafe."

An article published by the San Francisco Chronicle noted that Nunemacher denied that he and Cassidy had neglected the property. When we called Nunemacher to ask him directly, the conversation didn’t go so well. He said he was busy, and told us to read the other news reports. When asked if this meant he didn’t want to comment, he said, "You are putting words into my mouth. I don’t like what you are doing." Then he threatened to call the police.

Whether or not the property was in fact neglected on purpose is a question that may never be answered conclusively. City Attorney’s Office spokesperson Matt Dorsey told us he was not at liberty to say whether an investigation is underway, but it’s clear that any investigation would have to go forward without a crucial element — the house.

Attorney Arthur Levy made a last-ditch effort to try to save the Little House just before it came down, sending a letter transcribed on his office’s letterhead to a list of city department heads. "What makes San Francisco different is our built environment," Levy says. "It seems to me that when a property owner willfully neglects a building, and that results in demolition … there ought to be some consequences."

For some of those engaged in the fight over the cottage, the incident brings to mind past controversies involving the same players and others close to them. When an historic Victorian shipwrights’ cottage at 900 Innes Ave. — which the city designated as a historic landmark last year — was under the ownership of developer Joe Cassidy, he had plans to demolish it and build condos, retail space, and a kayak center. In that 2005 battle between the RBA developer and preservationists, the preservationists won.

Another project that involved both Joe Cassidy and Nunemacher was a residential development at Fourth and Freelon streets. At the time that project was being permitted, one of the top-selling agents at Vanguard Properties, Jean-Paul Samaha, worked as a liaison between the Board of Supervisors and the Planning Department. In 2005, architect Kepa Ashkenasy lodged an Ethics Commission complaint against Samaha alleging he had failed to disclose a $100,000 loan from Nunemacher, who had been his romantic partner at the time, even when he was in a position of testifying before the Planning Commission in his professional capacity about the Fourth and Freelon development, Ethics records show.

The complaint was dismissed after Samaha lodged a counter-complaint against Ashkenasy with the Human Rights Commission, noting that loans from spouses and domestic partners are exempt from financial disclosure rules, and charging that her allegation was motivated by a kind of homophobia, a HRC document shows. Ashkenasy told the Guardian that she only sought to illuminate a conflict of interest — and added that she is a lesbian.

Servetnick said the case of the Little House highlights a broader issue of vacant historic properties throughout the city that are allowed to go to waste because it’s more profitable to knock them down and build new. Draft legislation introduced by Board President David Chiu seeks to address this concern by requiring owners of vacant properties to register their empty buildings with the city so that inspectors can play a more proactive role in detecting problems before it’s too late.

At a March 26 Planning Commission meeting, Charles Marsteller, former head of government watchdog group Common Cause, told commissioners he had attended the demolition of the Lombard Street cottage. When it came down, he says, he realized how unique it was and earnestly told planning commissioners that he thinks the Little House should be reconstructed, and the lot turned into a park.

As for the demolition, "It was just a put-on by some insiders in City Hall working the network that they normally work," Marsteller says. "And it shouldn’t have happened."

BVHP realtors to discuss black crisis

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

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

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

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

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

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

Warmest Regards,

Diane

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

It’s a depression. Let’s get cracking

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By Calvin Welch


OPINION It’s time we called it what it is: this is a depression. And we need to figure out the politics of the new age we are entering, especially in cities, which will be the ground zero for economic hardship.

While President Obama and the media continue to use euphemisms (the "subprime mortgage collapse," "the recession," "the credit crunch") for fear of causing a panic. But the recent tsunami of lost jobs and frozen credit, coupled with the long-standing structural problems of nearly 30 years of Republican magic-of-the-marketplace economic policies — shrinking real incomes for 90 percent of Americans, an obscenely expensive healthcare system that neither businesses nor workers can afford, and an outmoded and deadly carbon-based energy system — have created a new global depression, one the experts said could never happen again.

The current global depression differs in three important ways from your grandparents’ (or great-grandparents’) depression.

First and foremost, this depression was worldwide from the start. Although made in America, the global financial capital system infected the world economy one trading day after it affected ours. Second, the Great Depression was agricultural- and industrial-based, hitting small towns and the countryside the hardest. The current depression is financial service-sector based, and will hit cities and suburbs the hardest, especially the housing, real estate ,and retail sectors. Since the nation is far more urban than it was in the 1930s, our depression will put far greater strains on our urban politics and life-supporting social services to low income people, than anything that occurred during the Great Depression. Finally and saddest, this depression comes at a time when organized labor is weak, divided, and confused.

San Francisco leaders seem unequal to the challenges confronting us. Recently Mayor Gavin Newsom has come up with the usual policies that transform a bad recession into an even greater depression: cut urban health and human services, lay off city employees, and massively accelerate speculation in condo conversions in the midst of cratering real estate values and zero mortgage lending while providing an anemic stimulus proposal for a handful of small businesses that pay their workers very little and are no longer capable of providing health care.

But in the land of the blind, the one-eyed person is king. What is the progressive answer to these mindless proposals? The usual default answers: no cuts, no layoffs — and silence on all the other issues confronting us. This simply won’t do this time. Its not about the budget, folks, it’s about the economy.

We need to start talking with each other — now — about how we rebuild a sustainable urban economy that runs on renewable energy, provides health care for our people, and houses us all. Lets get cracking. *

Calvin Welch is a community organizer and resident of San Francisco.

Fisher’s Folly threatens the Presidio

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EDITORIAL The latest proposal for developing the Main Post at the Presidio national park shows exactly what’s wrong with the privatized, developer-driven planning that has plagued the 1,400-acre site since Rep. Nancy Pelosi took control of it away from the National Park System.

The centerpiece of the new plan, released last week, is the same old monument to the greed and ego of Gap Inc. founder Don Fisher. The octogenarian billionaire still gets his art museum, a three-building, 200,000-square-foot development that has no place at the Presidio. Oh, it’s not quite as ugly and intrusive the original design: most of the main gallery will be underground, and the roof will be green. How lovely.

The essential problem with the museum remains, and will continue to plague this development plan. The park is making room for a museum, which was never part of anyone’s vision for the new national park when the Army abandoned the post, purely and simply because a billionaire with powerful political connections wants a place to show off his personal art collection. Fisher’s desires are driving the shape of what ought to be a crown jewel of an urban park. The folks who once upon a time thought the Presidio could be a center for sustainable ecology never had a chance.

And a museum of contemporary art is a total mismatch for the Presidio’s main post. A museum is, by its nature, designed to attract large number of visitors — and since there’s only limited transit capacity in the Presidio, most of them will come by car. The center of the park will be overwhelmed with traffic — and so will the surrounding neighborhoods and the streets that serve as the chokepoints for the Presidio’s limited number of entrances and exits. Those cars will compete for space with the growing number of hikers and bicyclists trying to carve out a space in what is, by definition, a park.

The Main Post proposal also includes a large hotel (described as a "lodge," to conjure up images of rustic accommodations) that will feature a high-end restaurant and bar.

This commercialization of the Presidio stands as the legacy of the speaker of the house, who back in 1994 bowed to Republican demands and decided to take the new park away from the people who run every other national park in America and turn it over to a developer-run Presidio Trust. The trust was saddled with a mandate something no other park has ever faced — it has to develop enough real estate to become self-sufficient. And with Fisher as one of the early trust members, the Presidio has become part office park (with a big George Lucas complex that won the moviemaker a $60 million tax break), part shopping center — and now part museum and hotel complex.

This plan — and the overall dreadful direction the park is taking — can still be changed. The seven-member trust board is appointed by the president, and the Obama administration will soon have a chance to fill three of the slots. By tradition the local Congress member (Pelosi) would have a major say in those appointments — but Pelosi is close to Fisher and has set the Presidio on the wrong course. Obama ought to appoint credible environmentalists and preservationists who are wiling to question and oppose Fisher’s grand scheme.

Some well-meaning local museum foes think the best answer is to encourage Fisher to build his personal edifice somewhere else — say, in downtown San Francisco, where other museums are and where there’s adequate transit infrastructure. The Board of Supervisors voted 9-2 to encourage Fisher to follow that path.

We wish he was willing to donate his contemporary art to SFMOMA which is perfectly suited to handle and display it. But Fisher wants total control, and no professional curator would ever accept that. So we’re willing to consider a new Fisher museum downtown. But the city shouldn’t roll out the red carpet for it. If the Republican who made a fortune selling clothes sewn by children in third world sweat shops wants to buy some land and apply for a building permit, the city should treat him like any other developer. But Don Fisher, who has done almost nothing but damage to this city, deserves no special favors.