redevelopment Archives — Page 9 of 13 — San Francisco Bay Guardian Archive 1966

Assembly supports sale of Candlestick Point Park

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September 9, 2009

Text and photos by Sarah Phelan

On Wednesday night, as folks were getting ready to watch President Barack Obama’s speech about health care, the State Assembly voted 69-1 in support of an amended version of Sen. Mark Leno’s SB 792.

Leno’s bill, which is now back in the Senate, gives the State the authority to sell 23 acres of Candlestick Point State Recreation Area for $50 million.

Assemblymember Tom Ammiano was the lone dissenter on Leno’s bill with seven others abstaining or not voting.

Those voting “aye” included Assemblymembers Fiona Ma and Nancy Skinner. Florida-based developer Lennar, which has entered into a public-private partnership with the City of San Francisco to redevelop 770-acres at Hunters Point Shipyard and Candlestick Point, is arguing that it needs these additional 23 acres of prime waterfront property to build luxury condos, if the rest of its massive redevelopment plan is to pencil out.

Initially, SB 792 would have allowed the State to sell 43 acres of Candlestick Point State Recreation Area, the Bayview’s only major park, for condos. As such, it faced stiff opposition from the Sierra Club, Arc Ecology and Friends of Candlestick Point Park.

In its amended form, SB 792 authorizes the exchange of 23 acres, thus preserving 20 acres of existing parkland—a compromise, Leno says, that secured the neutrality of these three key environmental groups.

“I am especially pleased that after months of negotiations, amendments to SB 792 resulted in the neutrality of the Sierra Club, Arc Ecology and Friends of Candlestick Point,” Leno said.

So, what does SB 792’s passage mean for the park’s ecological integrity? And won’t the impact of removing 23 acres from the Bayview’s only major park be magnified, once condos and high rises have been built?

Mirant plant to close

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August 19, 2009

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news@sfbg.com

GREEN CITY City Attorney Dennis Herrera’s office struck a deal with Mirant Potrero LLC on Aug. 13 to shutter its polluting Potrero power plant no later than Dec. 31, 2010. The settlement agreement represents a major victory for San Francisco and the broad array of elected officials and environmental-justice advocates who’ve been railing against the hazardous byproducts of the 40-year-old fossil fuel-fired facility for years.

The agreement also requires Mirant to pay the city $1 million, which will be put toward addressing childhood asthma and supporting neighborhood beautification.

"It’s a great result for the city, but in particular for the southeast sector," said Herrera, who has opposed the plant since 1999. "A lot of folks deserve a lot of credit for this."

Residents living in southeast San Francisco and Bayview-Hunter’s Point, where asthma rates are higher than average, have borne the brunt of toxic emissions spewing from the plant’s brick smokestack nearly 24 hours a day.

"It’s been a long haul," Sup. Sophie Maxwell, who represents the neighborhoods adversely affected by the pollution, said at a press conference. "Our community [has] some of the highest rates of asthma, the highest rates of cancer. We have babies being born in this community every day — and so we cannot keep our eye off the prize."

Maxwell’s vow to continue pushing even with the signed agreement in hand may prove wise considering that the California Independent System Operator (Cal-ISO) — a body that oversees the state’s power grid and determines capacity requirements — has yet to grant its blessing to the deal. Under the terms of the agreement, Mirant must declare to Cal-ISO that it will not continue operation beyond the shutdown date. The utility also agreed not to pursue renewal of its "reliability must-run" (RMR) contract with Cal-ISO, which has required the plant to run against the wishes of elected officials in San Francisco for years.

Cal-ISO left open the question of whether it would agree to release Mirant from the RMR requirement. "The ISO will continue to require local measures to be available at the level necessary to ensure that San Francisco reliability is consistent with that of other major metropolitan areas in California and the nation," spokesman Gregg Fishman noted in a statement.

The battle to shutter San Francisco’s dirty power plant might not be over — but for the first time Mirant will now be aligned with the city and at odds with Cal-ISO. "I’ve got to give credit where credit’s due," Herrera told the Guardian. "[Mirant] ultimately did step up here with the settlement and make an unprecedented commitment."

What’s in it for Mirant? The city attorney dropped a lawsuit against Mirant that sought compliance with codes requiring seismic upgrades to old brick buildings on the site. The city also will give priority to any redevelopment plans for the company-owned site.

Chip Little, a Mirant spokesperson, said the company doesn’t have a particular vision in mind. "At this time, we have no redevelopment plans for the site," he said. Mirant does have other projects in the works outside San Francisco, however. "We responded to a [request for offer] that PG&E issued last year for new capacity," Little told us. Mirant has applied for licenses to build a 930 MW natural gas-fired plant near Antioch, and a 550 MW natural gas-fired facility at the Pittsburg power plant site.

The TransBay Cable, an undersea power line that will transfer electricity from Pittsburg power sources to San Francisco, is expected to go live in March. The cable will negate the need for most of the electricity supplied by the 350 MW Potrero plant, but there will still be a 25 MW generation gap.

"That’s really a rather small amount," Ed Harrington, director of the San Francisco Public Utilities Commission, told reporters during the press conference. "We believe it could be met by underwriting other projects that PG&E is working on and by … cutting back when there’s a peak."

When a battle was waged last year over proposed construction of city-owned power plants to replace Mirant, many thought a solution that didn’t involve new in-city generation was impossible. One year later, this new accord with the City Attorney’s Office rests on the idea that shutting down Mirant with no new fossil fuel is not just possible, but within reach in the near future.

Cecile Lepage contributed to this report.

‘Can I buy your park?’

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August 12, 2009

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sarah@sfbg.com

Saul Bloom, executive director of Arc Ecology, recently donned his best suit and a sandwich-board saying "Can I buy your park?" then headed to some of the city’s most popular open spaces: Dolores Park, Golden Gate Park, Crissy Field, and Ocean Beach.

Bloom’s quest? Pose as a developer and videotape reactions to a fictitious proposal to sell 25 percent of the parks for housing, a ruse designed to illuminate how the city and its master developer, Lennar Corp., have never been nearly that honest about their plan to get the state to sell 25 percent of Candlestick Point State Recreation Area so Lennar can build luxury condos on prime waterfront parklands.

Predictably, responses to Bloom’s poll were mainly negative, occasionally violent. "A couple of people tried to clock me over the head," Bloom recalled. "They got aggressive. They said ‘You’re an asshole, man.’ But the predominant reaction was ‘I love my park.’ People asked, ‘Why do you want to sell them?’ They feel there’s not enough open space."

Perhaps the most chilling response came when Bloom told folks about the city’s actual plan to build condos at Candlestick Point SRA in the Bayview District. "Their response was, ‘Oh, it’s in the Bayview? Who cares?’" said Bloom, who fears that apparent indifference to the plight of the Bayview may explain why the city and Lennar see Candlestick Point SRA as a development opportunity.

Arc isn’t the only group accusing Lennar and the city of not properly informing the public that a vote for Proposition G, which was billed as the "clean-up the shipyard initiative" during the June 2008 election, was also a vote to push Senate Bill 792, state tidelands legislation that authorizes the Candlestick Point sell-off.

Introduced by State Sen. Mark Leno in February, SB 792 has since been amended and approved by the full Senate and is currently scheduled for a hearing by the Assembly Appropriations Committee Aug. 19. Passage by the committee is virtually certain, given that it only delays legislation based on fiscal impacts.

But even some Prop. G supporters, including Bloom, are now raising questions about the deal.

San Francisco’s Park, Recreation, and Open Space Advisory Committee (PROSAC) unanimously approved a resolution recommending that the city’s Recreation and Park Commission and the sponsor of SB 792 require both the city and Lennar to "provide detailed accounting of the park and open space acreage in the Candlestick Project." The committee asks that no net open space in the region be lost in the transfer.

PROSAC claims it was in the dark about the deal and asked those who pushed Prop. G to "provide documentation of when PROSAC and any other relevant advisory committees were informed of the intention to purchase state parkland for the Candlestick Project." So far Lennar and the city have pointed to conceptual maps and a couple of notices of public meetings as evidence that the public was adequately informed before voting.

But according to Bloom, who studies the maps and attends the meetings, "There really is not anything other than two graphics, neither of which call out the alteration to the park boundary. You’d really have to know what you were looking for. And why would the city’s own advisory committee be asking Lennar and the city for information if they were in fact told of this plan?"

Adding fuel to the fire is a July 21 resolution by Sups. Chris Daly and John Avalos, which argues that it should be official policy of San Francisco to oppose SB 792 in its current form and remind city lobbyist Lynn Suter "to accurately represent the City and County of San Francisco policy in Sacramento."

The resolution has been assigned to the board’s Land Use Committee and likely won’t be heard until September. It contends that SB 792 is "premature and preempts the process for public input and environmental assessment since the environmental impact reports for the proposed development on Candlestick Point and the Hunters Point Shipyard will not be released until the fall of 2009."

Noting that the state "purchased this beautiful waterfront parkland for $10 million in 1977," Daly and Avalos assert that "this land represents a valuable and irreplaceable asset to the state of California that should not be disposed of for private development."

The resolution notes that many people oppose the transfer "because of the impact of environmental racism caused by selling a clean park to a private developer for condominium construction denying Bayview Hunters Point residents equal access to healthy open space as is enjoyed by other neighborhoods in San Francisco."

As Daly told the Guardian, "Everyone wants the shipyard site cleaned up, development that works for the community, and real open space opportunities on the shoreline. And Prop. G was billed as doing this, which led to a division of people who believed Lennar and those who didn’t."

As a result, Daly said, people like Saul Bloom, who supported Prop. G, are coming out against SB 792. "So now, it seems, the skeptics are right," Daly said. "A lot of promises have been made. But unless you get them in writing, and have an insurance policy, Lennar is not delivering."

But Lennar Communities of California, the developer’s major political action committee, seems to be delivering when it comes to advocating for the park sell-off. In the second quarter of this year, Lennar more than doubled its spending on lobbying, including on SB 792. And Aug. 3, it alerted its Prop. G supporters that help is needed "passing SB 792 through the California State Legislature."

The e-mail blast claims that SB 792 is "straightforward and necessary legislation that reconfigures the state park boundaries at Candlestick Point and exchanges under-utilized land (most of it dirt, rubble, and a parking lot) for tens of millions of dollars of needed new improvements to the state park and a steady stream of dedicated funding to operate and maintain the improved park and open space."

But recently, there has been talk of an SB 792 compromise. According to insiders, the city and Lennar are willing to concede 20 acres of the contested 42-acres of park, although the developer insists it needs to build hundreds of condos (of which only 15 percent will be below market rate) on the 22 remaining acres of state park land if its entire 700-acre development is to pencil out.

Privately, environmental advocates say they may be unable to stop the land grab. And they worry that seven of the 20 acres Lennar is prepared to concede could be inundated by rising seas caused by global warming, as shown in a 2007 study by engineering firm Moffat & Nichol. It would be an ironic fate given Mayor Gavin Newsom’s July 30 announcement of a proposed United Nations center focused on climate change and green technology as part of Lennar’s project.

The Sierra Club opposes selling state parklands, building a bridge over Yosemite Slough, and capping a radiologically-affected dump on the shipyard’s Parcel E2. But the club does not oppose Lennar’s entire redevelopment plan. Arthur Feinstein, the group’s local representative, said, "We’re interested in saving as much land as possible. We are pushing to save the park’s grasslands. It’s existing habitat."

Noting that some amendments to SB 792 have been made, including removing proposed exchanges of parklands for shipyard land, Feinstein said that "there’s now a map that defines the project and no longer carries shipyard land."

Michael Cohen, Newsom’s chief economic adviser, said, "At Leno’s request, we’ve made amendments to address concerns, including taking steps to ensure there is no adverse impact on wildlife habitat."

Cohen called Newsom’s United Nations Climate Center "the perfect institution" for the entire redevelopment project, since it provides the shipyard with a green technology anchor. Cohen said he was unaware of the study showing the area could be flooded by global warming.

"But no one disagrees," Cohen continued, "that the state park will benefit from infrastructure and much needed capital for operations and maintenance."

Leno told the Guardian that his goal is to arrive at the best possible bill. "At the request of the opposition, we did amend the bill so that land at Hunters Point Shipyard won’t be part of any exchange," Leno said. "But it is conceivable that once the cleanup is completed, there could be a gift from the city to the State Parks Commission."

Leno said he hadn’t seen the flood map and joked, "If someone thinks they know exactly where the water is going to stop, they can place some bets now."

Assuming a more serious tone, Leno added that "the entire park system is under threat." He recalled how Gov. Arnold Schwarzenegger proposed to eliminate all General Fund money for parks and said, "We fought back and were able to restore most of the money."

But with the state’s ongoing fiscal woes and political stalemate, "Anyone who believes CPRSA is going to be open and funded indefinitely is not thinking clearly … so this deal has the potential for being an opportunity for our taking responsibility for the future of our state park system."

As currently drafted, SB 792 provides millions for improvements and $700,000 annually for operations and maintenance, Leno explained. "So I’m trying to make a bad situation better in a way that brings along this bill’s opponents so that they see that they are being taken seriously."

Selling the park

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June 24, 2009

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sarah@sfbg.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Boxer wants to be shipyard clean-up’s “fair broker”

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June 17, 2009

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Text by Sarah Phelan

Sen. Barbara Boxer’s office forwarded me a letter yesterday that highlights Boxer’s concerns regarding the cleanup and redevelopment of Hunters Point Naval Shipyard.

“As Chair of the U.S. Senate Environment and Public Works committee, I am focused on protecting the health and environment of the Bay Area, including the Bayview Hunters Point community,” Boxer stated in the May 18, 2009 letter that she sent to Power’s Alicia Schwartz, who, incidentally won a Guardian’s Local Hero award in 2008, for working to improve the future of San Francisco’s black and working class communities.

Boxer’s letter landed after my deadline for this week’s story about the Navy dissolving the main body for community involvement in the shipyard clean-up, as that effort enters its most critical phase.

So, I’ve included her letter here, so folks can see what Boxer’s main concerns are. And also because it suggests that things may improve, at least in terms of working with the US Environmental Protection Agency, now that Lisa Jackson has taken the helm.

As Boxer writes, “Under Administrator Lisa Jackson, the EPA is returning to its mission of protecting American families and communities from environmental threats.”

Boxer’s communications director Zachary Coile told me today that as chair of the Senate Environment and Public Works Committee, Boxer has oversight of the US EPA, and wants to play the role of “fair broker” at the shipyard.
That sounds like a worthy goal. So, here’s hoping that Boxer can pull it off in a way that’s truly equitable.

Eliminating dissent

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June 17, 2009

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sarah@sfbg.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Saving the southeast

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May 13, 2009

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sarah@sfbg.com

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."

The quest to save the Bluepeter Building

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May 12, 2009

1

By Rebecca Bowe

Photo courtesy Janet Carpinelli

The Bluepeter Building, a unique industrial warehouse constructed in 1940 along San Francisco’s central waterfront, has become the focus of a neighborhood campaign for historic preservation. Under the Mission Bay redevelopment plan, it’s slated for demolition — but some community members are hoping an alternative vision can be implemented.

Janet Carpinelli of the Dogpatch Neighborhood Association has a vision for rehabbing the Bluepeter Building and converting it to a fish market, casual food vending business, and community gathering space which she says could also be integrated into a maritime history tour along the city’s Central Waterfront. Owned by the Port of San Francisco, it’s been shuttered for more than a decade and hasn’t been very well maintained. Under the Mission Bay redevelopment plan, the building would be torn down and a park would be constructed on the lot instead.

“Just putting the park there is not as interesting,” Carpinelli says. “We shouldn’t just be knocking down the building.”

Our 2009 Small Business Awards

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May 6, 2009

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>>More on SFBG.com
Why can’t City Hall shop local?

EMPLOYEE-OWNED BUSINESS AWARD

Photo by Pat Mazzera

CHURCH STREET FLOWERS

"It was really all about trust," says Stephanie Foster of Church Street Flowers, when asked about the benefits and perils of transferring ownership of the delightful bouquet boutique — and perennial Guardian Best of the Bay winner — near the Castro to the employees. Foster, along with Rachel Shinfeld and Brianna Foehr, took over in December 2008 from previous owners Michael Ritz and Thomas Teel, who’d run the shop for a decade. "The three of us had worked here for a while and we knew our stuff, so Michael and Tom knew they could rely on us to preserve the legacy. And the outpouring of support from our neighbors and regular customers has been overwhelming."

The ownership change of the cozy shop, bursting with vibrant blooms and friendly energy, went off without a hitch. "We were part of the lucky few who received a small business loan before the economic collapse," Shinfeld says. "But our business plan was smart, and the bank saw that we knew what we were doing." And, even in the current climate, business is thriving. "Our arrangements aren’t your standard cookie-cutter stuff," Foster says. "People nowadays want personalized, reasonably priced, green-minded, and locally sourced. We fit into all that — most of our flowers are from the downtown flower market and we keep an eye out for organic. Plus we strive to create a real connection with our customers, so we can give them exactly what they want."

"Sure, there have been some adjustments," Shinfeld adds. "There’s a lot of paperwork — and the first thing we needed to tackle was a Web site redesign. But our experience working here helped us through, and I think we’re just beginning to blossom in our new roles." (Marke B.)

CHURCH STREET FLOWERS

212 Church, SF

(415) 553-7762

www.churchstreetflowers.com

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GOLDEN SURVIVOR AWARD

Photo by Charles Russo

GREEN APPLE BOOKS

What is the special ingredient that transforms a business from just another store into a place that makes people feel inspired and connected? After 42 years as a San Francisco independent bookseller, Green Apple Books and Music seems to have found it. Located on Clement Street in a building that predates the 1906 quake, it’s a "big, sprawling, dusty and funky new and used bookstore," as co-owner Pete Mulvihill describes it, creating an atmosphere for interactions that might seem impossible in a big-box store. Several weeks ago, for instance, a customer approached the store clerks, presented a CD, and requested that they play it. He also asked them to clear out the philosophy room. "I want it to myself for just a minute," he explained. The staff complied, the music started, and the man whisked his girlfriend into the philosophy room and proposed to her.

"To me, that’s an honor that somebody loves the place so much that they would propose to their girlfriend here," says Mulvihill, one of three owners and an employee for more than 15 years. A founding member of the San Francisco Locally Owned Merchants Alliance, he has been at the forefront of a push to identify and promote the city’s small, independent businesses. "Locally-owned businesses recirculate more money in the local economy than national chains," the SFLOMA Web site points out.

"Frankly, we’re invested in the community," Mulvihill explains. "[We] love San Francisco, and we don’t want to go anywhere." (Rebecca Bowe)

GREEN APPLE BOOKS

506 Clement, SF

(415) 387-2272

www.greenapplebooks.com

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CHAIN ALTERNATIVE AWARD

Photo by Charles Russo

HUT LANDON

Hut Landon is responsible the past few years for helping direct millions of dollars into small business in San Francisco and beyond, and millions more into the local economy.

He does it through his energetic and creative leadership of two key organizations that promote the interests of locally-owned small business. Landon has been the executive director of the Northern California Independent Booksellers Association (NCIBA), which promotes the interests of 200 independent bookstores in the region. He is also executive director of the San Francisco Locally Owned Merchants Alliance (SFLOMA).

Under Landon’s stewardship, the two groups commissioned a pioneering 2007 study that quantified the value of locally-owned businesses in the city. Their stunning finding: if consumers redirected l0 percent of their retail purchases from chains to locally-owned merchants, the result would generate about $200 million for the economy, l,295 jobs, and $72 million new income for workers.

Landon’s timing could not have been better. As the economy tanked, local merchants and neighborhood business organizations used the l0 percent consumer shift as a mantra. The study also pointed out that the local economy could get another big boost if the city would shop locally with the tens of millions it now spends outside the city for goods and services.

Landon likes to use the example of two brothers who live together. One works on Potrero Hill and eats lunch at one of the many locally-owned restaurants. The other works at Stonestown shopping center and eats at a chain restaurant because that’s all there is out there. The Potrero Hill money, he points out, stays in the community. The chain store money is sent back to headquarters. (Bruce Brugmann)

HUT LANDON

Northern California Independent Booksellers Association

1007 General Kennedy, SF

(415) 561-7686

www.nciba.com

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SMALL BUSINESS ADVOCATE

Photo by Abi Kelly

REGINA DICK-ENDRIZZI

Small business owners often feel as if they don’t have many advocates at City Hall. But they do have Regina Dick-Endrizzi.

Dick-Endrizzi, acting director of the Small Business Commission, has been moving rapidly on ways to help small businesses feel more comfortable dealing with the city — and to help them thrive in a tough economic environment. She helped establish the Small Business Assistance Center, which guides local merchants and prospective entrepreneurs through the thicket of city regulations. "It’s a tremendous asset," she told us. "When people walk through the door, we can take the time to help them develop a roadmap to doing business here." And she’s a driving force behind the Shop Local campaign, which will launch this month with bus shelter and bus-side ads designed to encourage San Franciscans to keep their money in town (co-sponsored by the Guardian).

Known in political circles as a former aide to Sup. Ross Mirkarimi, Dick-Endrizzi has a solid background in business. She moved to San Francisco in 1986 to open the Haight Street Buffalo Exchange store, and worked with that company for 13 years. "We bought our inventory from local people, and I had to have a close relationship with local small businesses," she said. "I have an intimate understanding of what it takes to run a business."

After several years in Mirkarimi’s office, she learned of the opening at the Small Business Commission, and plans to stay there for a while. "I truly believe in what this department offers to small business," she said. "There’s such a tremendous need." (Tim Redmond)

REGINA DICK-ENDRIZZI OFFICE OF SMALL BUSINESS

1 Dr. Carlton B. Goodlett, SF

(415) 554-6134

www.sfgov.org

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GOOD NEIGHBOR AWARD

URBAN SOLUTIONS

Urban Solutions has its roots in the South of Market Foundation, an economic development corporation formed in 1992 in response to what SoMa merchants, residents, and community-based organizations felt was a lack of accountability in their neighborhood’s development.

A decade later, the organization changed its name and Urban Solutions was born. Two years after that, the burgeoning nonprofit opened a second office, this time in the Western Addition, becoming an important source of service in both neighborhoods.

Urban Solution’s executive director Jenny McNulty says she is currently excited about her organization’s Green Business initiative, which helps educate small business on how to conserve resources and reduce their carbon footprints — and save money in the process.

McNulty is also amped about Urban Solution’s effort — undertaken with the San Francisco Redevelopment Agency — to revitalize Sixth Street’s commercial corridor.

"We’re expanding our Green Business Initiative program, which offers free consulting to help small businesses go green by implementing cost-saving practices to increase the sustainability of their business operations," McNulty said.

Urban Solutions’ Sixth Street revitalization effort includes beautifying the area and helping businesses, in conjunction with Redevelopment Agency grants, by improving their facades, installing new awnings, repainting buildings, and replacing windows, storefronts, and entrance ways.

"Our focus is low-income businesses," McNulty said. (Sarah Phelan)

URBAN SOLUTIONS

1083 Mission, SF

(415) 553-4433

www.urbansolutionssf.org

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GOOD NEIGHBOR AWARD

Photo by Abi Kelly

JENS-PETER JUNGCLAUSSEN

Jens-Peter Jungclaussen had a dream: Buy a gutted, camouflage-painted school bus on eBay, convert it to biodiesel, and put it to use as a mobile classroom by day and a party on wheels by night, a rollicking omnibus of education, culture, and sustainability. With a few flicks of his wrist, Jungclaussen, a former German windsurfing pro and biology and PE teacher, transforms the bus to suit the need at hand — pulling down a movie screen from the roof; unpacking a buffet table, wet bar, or set of turntables from beneath the seats; or simply switching on the "party lights." Dubbed das Frachtgut ("the good freight"), the bus has hosted dinner parties on Twin Peaks, ecology classes in Muir Woods, sunrise raves on undisclosed beaches, and screenings of The Big Lebowski (complete with bowling and White Russians). It also serves as a mobile billboard for its various local, eco-friendly sponsors and can be rented for field trips and corporate events.

The ever-enthusiastic and tireless Jungclaussen recently turned his attentions to youth education, this year offering for the first time a "mobile summer camp." Teaming up with fellow teachers Michael Murnane, Gretchen Nelson, Justin Ancheta, and Leah Greenberg, he’ll present three, 11-day sessions on wheels that will introduce young people to a variety of Bay Area natural, artistic, and historical treasures. But don’t worry, the parties will still keep rolling. As Jungclaussen promises of the bus, "What you want it to be, it will become." (Marke B.)

JENS-PETER JUNGCLAUSSEN

(415) 424-1058

www.teacherbus.com

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ARTHUR JACKSON DIVERSITY IN SMALL BUSINESS AWARD

IRENE HERNANDEZ-FEIKS

It’s easy to assume that the purpose of Chillin’, the brainchild of Mexico City native Irene Hernandez-Feiks, is simply to have a good time. But the multimedia parties Hernandez-Feiks has been throwing for 11 years are much more than entertainment. Their actual purpose is to stimulate the economy and support one of the most difficult small businesses to sustain: the business of art.

A former designer herself, Hernandez-Feiks started out organizing weekly happy hours at 111 Minna where she would feature up to five independent Bay Area designers. Her philosophy? Charge the designers nothing for the opportunity and take no commission. The formula worked so well that Chillin’ eventually grew from weeknight happy hours to Saturday night events, complete with DJs. Now Chillin’ is a full-fledged happening — indeed, the June 13 anniversary show at Mezzanine features 180 photographers and artists, 40 filmmakers, 80 fashion designers, and 12 DJs.

But watching Chillin’ grow — and seeing participating artists transform themselves from local to international names — isn’t enough for Hernandez-Feiks. She also devotes much of her time to charity work, including involvement with Gen Art, the Mexican Consulate Cultural Affairs division, the United Nations and Natural World Museum, and the Art Seed Apprenticeship Program benefiting Bayview- Hunters Point youth.

"Because of Chillin’, I have relationships with so many artists," she says. "I want to use those connections to help everybody out." (Molly Freedenberg)

IRENE HERNANDEZ-FEIKS

Chillin Productions

(415) 285-1998

www.chillinproductions.com

The real defenders of San Francisco values

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May 4, 2009

3

By Steven T. Jones

While Mayor Gavin Newsom gallivants around the country – he’s been back east accepting accolades for same-sex marriage and Healthy San Francisco and trying to shore up White House support for his Treasure Island and Hunters Point redevelopment schemes – other city leaders are doing the hard work of restoring San Francisco values.

On Wednesday, there are two shining examples of this uphill battle that take place on opposite ends of Civic Center Plaza. First, SF Public Defender Jeff Adachi hosts “Justice Summit 2009: Defending the Public and the Constitution,” which highlights the importance of constitutional guarantees of quality legal representation for all defendants, regardless of income level, a right that has been eroded by budgetary pressures in San Francisco and around the country.

Among the long list of respected legal thinkers will be a keynote speech by US District Judge Thelton Henderson, who has ordered California to finally do something about severe overcrowding and substandard medical care in its prisons – a laudable and courageous stand that has been met with utter cowardice, contempt, and pandering by state officials. That event begins at 10 a.m. in the main library’s Koret Auditorium.

Then, at 1:30 in City Hall, the Board of Supervisors Budget and Finance Committee will consider a proposal by Board President David Chiu to reject the terrible and short-sighted budget that was just approved by the Municipal Transportation Agency, which reduces Muni service and increases the fare to $2 while asking little from motorists (who will increase in numbers as more people eschew taking transit) or from Muni chief Nat Ford, whose $316,459 salary is the highest in city government (again, Newsom’s doing).

These are difficult issues that require hard work (and more revenue from the well-heeled city residents that Newsom is siding with in blocking a special election on tax measures), but it’s good to see we still have some public-spirited elected officials who are willing to take risks and work for San Francisco values instead of simply campaigning on them.

Don’t shoot the shipyard messengers

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May 1, 2009

3

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

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

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

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

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

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

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

Going nuclear

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April 28, 2009

0

news@sfbg.com

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

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

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

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

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

WAR WASTE

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

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

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

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

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

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

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

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

TRUCKS OR TRAINS?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Lennar breaks its affordable housing promise

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April 10, 2009

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By Deia de Brito

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

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

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

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

Green-collar heat

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April 1, 2009

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› sarah@sfbg.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BVHP realtors to discuss black crisis

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March 5, 2009

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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

A 20-foot high controversy

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February 6, 2009

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By Rebecca Bowe

At the Feb. 3 Board of Supervisors meeting, District 6 Supervisor Chris Daly expressed disgust at what he called “pay-to-play politics” and charged that Mayor Gavin Newsom had insisted upon a 20-foot height extension for the proposed redevelopment of the New Mission Theater as a favor to a developer who’d given him a political boost.

“At the very least, there is a massive and unprecedented appearance of impropriety and I think ethical malfeasance,” Daly told his colleagues. Before the meeting, he handed out photocopies of a blog post he’d written to back up his argument.

Nathan Ballard, Mayor Newsom’s press secretary, refuted Daly’s claim. “If the legislation had gone forward, the project would have been killed,” Ballard wrote in an email to the Guardian. “We reject Supervisor Daly’s false allegations. The Mayor made his decision, as he always does, on the merits alone.”

Concrete plans

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February 4, 2009

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› sarah@sfbg.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Change you can live in?

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January 20, 2009

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If you ask San Franciscans about the most pressing issues facing the city, homelessness and affordable housing are always near the top of the list. While this city’s housing problems are particularly dramatic, homelessness is on the rise across urban America. And in nearly every big city, public housing projects are crumbling, suffering from years of federal neglect.

But you wouldn’t know that to look at the latest stimulus package coming out of Washington, DC.

The proposed American Recovery and Reinvestment Act, introduced Jan. 15, contains only $16 billion for affordable housing. That’s about half what advocates had sought — and a tiny fraction of what’s really needed.

The bill has the affordable housing community shaking its collective head. "Unfortunately, the news right now is not good. This first pass at the stimulus bill is not encouraging," Matt Schwarz, president of the California Housing Partnership, a San Francisco–based nonprofit working to expand affordable housing stock throughout California, told us.

Will President Obama, who barely mentioned homelessness during the campaign, look at affordable housing as a priority? Most housing activists say they’re cautiously optimistic. But some are starting to sound the alarm.

"I think, when it comes to political clout in DC, poor people and their allies are still in trouble," said Paul Boden, director of the San Francisco–based Western Regional Advocacy Project, a group that focuses primarily on homelessness issues. "It was disheartening to go to the Obama [transition team] Web site and find … a very miniscule mention of homelessness — and it’s under ‘veterans.’<0x2009>"

City officials are looking at the bright side. "Most people would agree that there’s been very little new money available at the federal level for affordable housing [in the past eight years]," Doug Shoemaker, director of the Mayor’s Office on Housing, told us. Shoemaker expects that to change under the Obama administration, especially with the pick of New York City Department of Housing Preservation and Development Commissioner Shaun Donovan as US Housing and Urban Development (HUD) secretary, whom he characterized as "an incredible leader who really understands homelessness and affordable housing."

Olson Lee, deputy director of the San Francisco Redevelopment Agency, sounded a similar note. "We’re looking forward to an administration that cares about affordable housing," he said. Projects like the Hunters View reconstruction project, which would restore a dilapidated public-housing complex in the Bayview–Hunters Point neighborhood, tops the list of projects that would shift into gear again if new federal dollars are made available, Lee noted.

But while city agencies seem to have high hopes for federal dollars that could be headed to San Francisco under the new administration, many grassroots-level affordable housing advocates are more cautious.

Longtime affordable housing activist Calvin Welch pointed out that there is still a great deal of uncertainty surrounding the allocation of federal funding under the economic recovery package. "The first test is, does the Obama administration view affordable housing — especially affordable rental housing in cities — as a priority?"

From Welch’s perspective, the answer appears to be yes. But he added that no affordable housing practitioners were named to Obama’s transition team. And in San Francisco, a pending blow to health and human services due to local and state budget cuts will bring about more distress linked to housing issues.

"When those health and human services are reduced, the effect is an increase in the homeless population, or at least the temporarily unhoused population — a population with very challenging housing needs, which is at extreme risk," Welch told us. "I haven’t seen any response to that consequence. I have not read that any portion of the Obama stimulus package is focused on health and human services." Until the details are hammered out, he said, "We’re holding our breath."

A recent report issued by the Center on Budget and Policy Priorities — a DC-based research and analysis organization focusing on issues affecting low-income families — underscores Welch’s concerns. The recession has prompted a rise in homelessness nationwide, the report notes, and an unusually large number of people are still likely to fall into severe poverty, putting them at risk of being turned out onto the streets.

"It is important that the package include funding for effective homelessness prevention strategies," CBPP notes.

Specifically, the report recommends that funding be made available for 200,000 additional Section 8 housing vouchers, which allow very low-income residents to rent privately-owned units of their choice. That number would only begin to address the need. In San Francisco, the waiting list for Section 8 has been closed since 2001, and some 13,000 people have languished on the list, according to Sara Shortt, director of the Housing Rights Committee of San Francisco. Despite the urging of organizations like CBPP, the first draft of the bill included no new additional funding for Section 8 vouchers.

The Obama administration has made it clear that new funding will become available for "shovel-ready" projects — those that are ready to move forward in a matter of months. According to the results of a survey conducted by the California Housing Partnership, San Francisco has 24 such affordable housing development projects waiting in the wings, which could provide an estimated 3,915 affordable homes and could potentially generate 4,500 construction-related jobs.

But Schwarz, president of CHP, says he’s less optimistic that those projects will move forward after seeing the proposed legislation. Schwarz says the $16 billion included for affordable housing measures in the proposed legislation was disheartening. With that figure, "We’re not expecting a significant portion of those stuck developments to get unstuck," he said. "There seems to have been some major backtracking, and we’re not quite sure where this is coming from."

While the bill falls short of what many of San Francisco’s affordable housing advocates had hoped for, it does include funding for public housing repair. "This economic recovery bill includes $5 billion to allow public housing authorities to complete repair and construction projects, including critical safety repairs," Drew Hammill, press secretary to Speaker Nancy Pelosi, wrote in an e-mail to the Guardian. "This is more than double the amount that was included for this account in the fiscal year 2008 appropriations bill and double the amount that is pending in fiscal year 2009."

But Hammill acknowledged that the need for such repairs is great in San Francisco: "The existing backlog in San Francisco is over $250 million" he wrote, "with approximately $26 million of additional physical deterioration occurring each year."

Shortt, who heads the Housing Rights Committee, looks back on the past six years as "a disaster" for public housing. "It is very likely that we’ll see an infusion in public housing and affordable housing in this recovery package," she said. But she regards the expected $5 billion for public housing capital funds as "a drop in the bucket. It’s estimated that the overall need is $33 billion nationally." .

Shortt did have praise for Donovan, Obama’s HUD secretary pick. Even so, she says, "Whether Obama himself feels strongly about housing or not, politically it’s going to take a while before it’s high on the priority of the Beltway. It’s been relegated to the bottom of the heap for so long."

Unsteady ground

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December 30, 2008

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› sarah@sfbg.com

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

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

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

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

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

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

BIG-SPENDING DEVELOPER

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

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

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

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

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

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

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

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

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

TOXIC MELTDOWN

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

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

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

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

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

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

Just what kind of liquefaction risks are involved?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Breaking ground

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December 10, 2008

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› steve@sfbg.com

The long-awaited process of rebuilding the Transbay Terminal formally begins Dec. 10 with a groundbreaking ceremony led by Mayor Gavin Newsom. But the agency pushing the project is still a long way from finding the money to build the project’s voter-mandated centerpiece: a high-speed rail and Caltrain station.

Even as the Transbay Joint Powers Authority embarks on the fully funded, $1.2 billion first phase of the project — which includes building a temporary bus station, demolishing the current building, and rebuilding the 1 million-square-foot transit hub by 2014 — the agency still hasn’t included the crucial $300 million "train box" in its plans.

Transportation planners say the train box, which is essentially the shell structure in which the train station would be built during the project’s second phase, is very important both logistically and financially (doing it later could be very expensive and disruptive to the station’s operation), particularly since the TJPA has secured little of the $3 billion needed for phase two.

"It would be a misuse of taxpayer money not to build the train box now," Dave Snyder, transportation policy director for the San Francisco Planning and Urban Research Association, told the Guardian. "The most urgent thing now is to make sure the train box is built as part of phase one."

"We are working hard to identify the funding for the train box in phase one," TJPA executive director Maria Ayerdi-Kaplan told the Guardian. "It’s more expensive to build it later."

But that source must be found by spring to be included in construction contracts.

Critics have questioned whether the trains will ever arrive at Transbay Terminal’s downtown location, and those doubts grew in recent weeks after Judge Quentin Kopp, the California High Speed Rail Authority chair, publicly suggested that the existing Caltrain station at Fourth and Townsend streets would be a fine high-speed rail terminus and that tunneling the final 1.4 miles to Transbay might not be worth the money (see "High speed derailment?", SFBG Politics blog, 11/18/08).

Kopp’s comments were prompted by premature TJPA efforts to secure funding guarantees from the $10 billion in high-speed rail bond money approved by voters Nov. 4 and by his concerns about how the project is being managed by Ayerdi-Kaplan and the high-priced public relations firm she relies on, Singer & Associates.

That rift, its lingering aftermath, and the failure of the TJPA to identify funding for Transbay Terminal’s rail components have rattled those who see the project as the linchpin for the region’s transportation system.

"I don’t think it works with the rail terminal at the current Caltrain station at Fourth and Townsend," Snyder said. "The access to downtown just isn’t good enough. The trains have to come downtown."

The Transbay Terminal was built in 1939 as the truly multimodal facility that supporters want it to become again. It received both buses and the commuter trains that traveled along the lower deck of the Bay Bridge until the bridge was converted to handle cars alone in 1959. At its peak at the end of World War II, 26 million passengers used the station annually, but those numbers dropped off precipitously as private automobile use increased.

The neighborhood around the terminal at First and Mission streets deteriorated and became a redevelopment district full of dormant public land, which the state turned over to facilitate development activity that includes the terminal rebuild (with a rooftop park), a neighborhood of 2,600 new homes (35 percent of which are required to be affordable), and a series of towering office buildings (including the tallest one on the West Coast).

Land sales expected to total $429 million are the single biggest funding source for phase one of the Transbay Terminal project, with the rest coming from state and federal funds, participating transit agencies such as AC Transit, a loan that will be repaid by increased property taxes, and increases in the sales tax and bridge tolls that were dedicated to the project by past ballot measures.

The prospects of bringing trains into the terminal seemed to rely on the high-speed rail project, which Kopp instigated as a legislator in the mid-’90s. Since then, the project has been studied and certified, with its documents explicitly spelling out how trains will travel from Transbay Terminal to Los Angeles Union Station in about two hours and 38 minutes.

After years of delays in bringing the $9.9 billion high-speed rail bond measure to the ballot, Proposition 1A was narrowly approved by voters Nov. 4. The TJPA immediately asked CHSRA for priority funding and was rebuffed by Kopp, who on Nov. 13 wrote, "Please do not attempt to secure California High Speed Rail Project funds to defray the enormous cost of the 1.4 mile ‘downtown rail extension.’ Such effort will not be welcomed by me."

In comments to both the Guardian and the San Francisco Chronicle, Kopp raised questions about wasteful spending at TJPA, the leadership of Ayerdi-Kaplan (who has met with Kopp and CHSRA director Mehdi Morshed just once), and the TJPA’s use of Singer and Associates, whose multiyear contract of up to $900,000 calls for paying the TJPA’s main contact, Adam Alberti, $350 per hour. "We don’t have a PR person deflecting media inquiries," Kopp said of his agency.

Ayerdi-Kaplan, who had little transit or executive experience before being appointed to the post at the urging of then–mayor Willie Brown, met with the Guardian editorial board last week and glossed over her past inaccessibility and conflicts with Kopp, saying the project is on track, she’s engaged with it, and she’s confident of its success.

"We have raised over $2 billion for the project and have a fully funded phase one. We’re still working on identifying the funding for the rail," Ayerdi-Kaplan said. TJPA has developed a list of possible funding sources, the biggest item being $600 million from the CHSRA.

She admitted that she hasn’t personally tried to contact Kopp about the funding request or worked to develop a good relationship with him or his agency, both of which Kopp has criticized. "At some point, we are going to sit down and talk," Ayerdi-Kaplan said.

She said there’s strong public support for the project. "We take a very positive approach," she told us. "You have to believe in what you’re working on, you have to believe it’s going to happen — as anything in life: you have believe your relationships are going to work, that your business is going to work, that your project is going to happen — or you have no business doing it," she said. Ayerdi-Kaplan said the project is fully certified and just waiting for funding, which should make it attractive to increased infrastructure spending proposed by President-elect Barack Obama. "There’s a lot of things that are in the works immediately with his economic stimulus package," she said.

Alberti said he has reached out to Morshed and received assurances that the CHSRA is still planning to use Transbay Terminal, something Morshed also confirmed for the Guardian — but with some hedging.

"Transbay Terminal is our terminal station in San Francisco as of now, based on our environmental documents," Morshed told the Guardian. Yet he said the authority is beginning more project-specific environmental studies, "and part of the requirements of environmental analysis is we need to look at all options."

Kopp said it’s unlikely that the Transbay Terminal — or any other project — will get a commitment for bond money soon: "We’re not going to be spending money or making funding commitments for years."

New member of the SFPUC?

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November 26, 2008

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by Amanda Witherell

JulietEllis11.26.08.jpg
From left, Juliet Ellis with Manuel Pastor from UC Santa Cruz and Lori Reese-Brown with the city of Richmond

The San Francisco Public Utilities Commission has had two empty seats for months, but Mayor Gavin Newsom has finally made another appointment to the body that oversees the city’s water and power infrastructures. Juliet Ellis has been offered the “advocacy” seat on the five-member board.

For the past seven years she’s been executive director of Oakland-based Urban Habitat, a non-profit social and environmental justice organization that works on affordable housing, transportation, and land use planning issues throughout the Bay Area, though mostly in the East Bay. The organization has been around since 2004, and receives most of its funding from grants. [PDF of its most recent 990.] (A quick check of grants made by Pacific Gas & Electric since then showed none to Urban Habitat, unlike other purported community groups.)

Ellis told the Guardian she’s interested in joining the SFPUC because it will bring her focus back toward San Francisco, where she’s been living since 1995. She currently resides in Bernal Heights.

When asked how her experiences have prepared her to be a public utilities commissioner, she said, “I have a long track record of working with folks who are often the most left out of the process,” she said, and that would continue at the SFPUC. If appointed, she plans to keep her job at Urban Habitat.

“Our organization is really interested in justice components,” she said, and in particular, climate justice. “What are the implications for low income communities if sea levels rise? If air pollution increases?” And, she pointed out, what kinds of mitigations can protect more vulnerable communities when it comes taxation through congestion pricing or the continual siting of power plants in areas where people live, with their pollution and carbon offsets occurring elsewhere?

That relates intimately to long term water and power issues under discussion in San Francisco, like the 51 percent renewable energy projections for the Community Choice Aggregation plan and what to do about the Mirant Power Plant that’s still operating in the mostly black, mostly low-income, and, consequently, most cancerous part of town, as well as how to move the city toward more affordable energy bills.

Ellis didn’t have much to say on specific issues like Mirant or CCA, admitting that she hasn’t “gone deep enough, I haven’t learned all the information” about these heavily nuanced and political issues.

But, her thinking seemed to fall along the right lines of public accountability and control, citing “the more obvious benefits of having more control than when it’s privatized. It seems like CCA would provide more clean energy and control and that in and of itself makes it something that’s attractive.”

Ellis said she sees real opportunities to connect the SFPUC with the communities she’s been helping at Urban Habitat. “The main issues I’m excited about are job opportunities and thinking through how to position those,” she said, pointing out that the SFPUC is projecting 24,000 jobs through the Water System Improvement Plan. She would like to see some of those jobs go to people who are low-income and jobless now. She’s also interested in “out of the box thinking for mitigating impacts for communities like Bayview Hunters Point and Potrero on water and energy issues.” She said most people don’t understand the scale of work undertaken by the SFPUC and she’d like to build a better relationship between it and low income and communities of color.

She said the recommendation to join the SFPUC came from Fred Blackwell, a former Urban Habitat board member who was appointed by Newsom to head the Redevelopment Agency in 2007. So far she’s met with several members of the Board of Supervisors and her appointment will be heard by the Rules Committee during their Dec. 4 meeting.

Bait and switch

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November 4, 2008

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> sarah@sfbg.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nix Lennar’s higher profit deal

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November 4, 2008

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

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

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

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

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

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

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

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

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

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

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

Anniversary Issue: The money at home

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October 22, 2008

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"You need to shrink the distance between the people who visit the private economy and the people who run it."

David Morris. Institute for Local Self-Reliance

› tredmond@sfbg.com

Back in the early 1980s, when the word "sustainable" was barely a blip in the environmental vocabulary, the mayor of Saint Paul, Minn. brought in a consultant named David Morris to help him figure out how to revive the city’s economy.

Saint Paul was facing the same challenges as many other northern cities — old industry was dying, the downtown was decaying, and population was declining as more affluent residents moved to the suburbs. Mayor George Latimer didn’t want to do what some of the other cities were doing and beg companies to move into town: he wanted to see what could be done with the resources the city already had.

Morris, who now runs the Institute for Local Self-Reliance, started by contacting the US Patent Office and getting a list of everyone in Saint Paul with a recent patent. He eliminated corporations and universities and wound up with a list of a few hundred people — inventors, thinkers, folks who had come up with something new. About two dozen had created gizmos or technologies that solved a real problem. Most of the stuff was sitting in basements and in old notebooks.

"Latimer called them all together," Morris recalled, "and he said, ‘We believe in you, and we’re going to help you start a business and market your invention.’" The mayor helped the would-be entrepreneurs find the capital and support they could never have gotten by themselves from a private sector not terribly interested in small business start-up loans. He encouraged them to open companies and market their products. The results were remarkable — lots of new locally-owned companies, creation of good jobs, and the beginning of a revitalization plan that made Latimer a national figure.

That principle — look locally and use the resources you have — remains the heart of a sustainable local economy.

"A sustainable place can feed, power, and house its citizens with local resources," explained Michelle Long, executive director of Bellingham, Wash.-based Sustainable Connections. "You need to generate new innovations with local innovators."

The late urban thinker Jane Jacobs made that notion a centerpiece of her life’s work. Starting with The Economy of Cities in 1969 and later in Cities and the Wealth of Nations in 1964, Jacobs argued that urban economies are like ecosystems — they are healthiest when they are diverse, with many different niches, and they thrive when energy cycles through the system. The cities throughout history that have done best have been those that figured out how to replace imports with locally produced goods and services.

It’s not that complicated, really. A sustainable local economy, like a sustainable ecosystem, needs lots of players, needs the energy of the system — money — to stick around through numerous economic cycles, and needs to use local resources to grow.

An economy that doesn’t depend too heavily on any one sector will not only do better in good times but will be much hardier. As farmers know, a monocrop system not only needs far more sustenance (fertilizers, irrigation, etc.) but is far more vulnerable to catastrophic failure. Diverse local economies, with thousands of small businesses offering a wide range of goods and services, can survive bad times better than communities that depend on just a few big industries.

As the Guardian has shown through a series of studies we did years ago ("The end of the high-rise jobs myth," 10/23/85) — and which research done since then has proved — small, locally-owned businesses create the majority of new jobs in San Francisco. And money spent in small businesses circulates in the local economy; the proprietor of the local hardware store takes his or her revenue and spends it on shoes for the kids. The shoe store owner takes that money and buys groceries at the local market. Every dollar goes around several times; and each time, it adds economic benefit — what economists call the multiplier effect.

A dollar spent in a chain store leaves town within hours, wired to a central corporate headquarters where executives care nothing about San Francisco — save as a place to extract wealth from.

Jacobs was brilliant, but she had her libertarian leanings. She often argued that it was best for government to get out of the way and let economies grow organically. That may have made sense to someone who came of age fighting the old-fashioned redevelopment programs and top-down urban planning of the 1960s and ’70s. But the modern urban economy not only needs help from policymakers, but clear direction — particularly in unsettled times like these. As William Greider wrote in The Nation Oct. 20, "only government has the leverage to get the money moving again."

In fact, modern progressive economic thinkers say that the public sector has a huge, perhaps defining role to play in building a sustainable local economy.

"The city needs to emphasize the public over the private," Morris told me. A sustainable economy, he said, is "a society where the public commons grows and the private shrinks." Taking public programs and services and turning them over to private business — which is all the rage in the Mayor’s Office these days — is about the worst thing a community can do.

So what could City Hall do to create a more sustainable local economy? Start, Morris says, by reducing the need for money. "The things that are most valuable in a sustainable economy are those that are free," he said. That means keeping libraries open, making more public space accessible, offering free public events — and encouraging people to reuse even the basics. "There’s no need for most people to buy new clothes, especially for kids. Sustainability starts with people substituting free things for costly things."

That could mean, for example, city-run clothing exchanges (and toy exchanges and places where used construction materials could be traded). It also means leadership by example: Mayor Gavin Newsom isn’t as big on conspicuous consumption as his predecessor, Willie Brown, who bought new imported Italian suits by the rack. But he’s hardly been known for promoting a low-consumption lifestyle. "The mayor could announce, for example, that he is going to reduce his consumption of imported goods by 75 percent in the next year," Morris suggested, "and show everyone how he’s going to do it."

Then there’s distance — both physical and psychological. Obviously, reducing commutes and the need for long-distance shopping trips is a factor, but it’s not enough. "You need to shrink the distance between the people who visit the private economy and the people who run it," he said. The owners of businesses need to live in the community. They need to interact with their customers and neighbors, to see the local schools where their tax dollars go.

In Bellingham, Long’s group worked with local government on a large-scale marketing campaign with the slogan "think local, buy local, be local." Their effort involved an advertising campaign, a coupon book, and even a mascot. "We have a bee who goes around to events; it’s the Be-local Bee," she said. It’s more than just shopping; it’s about thinking about your community first.

The impact: more than 60 percent of Bellingham residents in a recent poll reported that they now think about finding local sources for their goods and services.

One key to all this, Doug Hammond, executive director of the Business Alliance for Local Living Economies, told us, is access to community capital. "If that’s not available, you never get out of the gate," he said.

BALLE, a seven-year old organization with headquarters in San Francisco, works with 20,000 members to promote small, locally-owned businesses and initiatives to sustain healthy economies — and healthy communities.

Community capital means "financing to support innovation," Long said, "from people who are willing to look at what we call living returns — something that works for the lender and for the borrower."

There are, Hammond notes, "almost no resources for locally-owned, independent businesses. It’s a disproportionately-tilted playing field."

Hammond, who took over as BALLE’s director this month, was startled to learn that San Francisco puts all its money — its payroll accounts, tax accounts, and so forth — in North Carolina-based Bank of America. That’s not a local bank. It’s not an institution that supports local businesses, and the money it makes doesn’t circulate in San Francisco.

Cities that want sustainable economies, he said, need "locally-owned common-good banks" that will invest in small loans to local businesses — and be willing to accept fair, but not excessive, returns. "If the city was willing to put some of its working money into that kind of a business, it would be a huge start," he told us. "That kind of thing is the low-hanging fruit."

The mayor has spent a lot of money on staff and programs that promote his image as environmentally conscious. But what he really needs, Hammond said, is a "local-first czar," someone at City Hall who has the mandate — and the authority — to promote a sustainable economy.

"There has to be a baseline for local procurement," he said. "How much of the city’s resources go back into the local community? What are the ways to make those resources community controlled again?"

San Francisco is a peninsula, but it isn’t an island. The city can’t operate entirely independent of the rest of the world. But at a time when global capital is in crisis, and fossil fuel use is threatening ecological catastrophe, and few people in Washington or Sacramento are offering true progressive solutions, San Francisco should be leading the way toward a model for a locally sustainable economy.

It’s not impossible. It’s not even that hard. It just takes political will.
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