War

The condo war continues

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EDITORIAL The San Francisco Planning Department is having a little trouble dealing with the fact that for the moment no more condo developers can build high-priced units in the eastern neighborhoods. In the wake of a Board of Supervisors decision demanding an extensive environmental review of a condo project at 2660 Harrison St., planners have been ducking and weaving around the reality that the supervisors have effectively put a moratorium on market-rate housing projects and on anything else that could displace blue-<\h>collar jobs (see “A Grinding Halt,” 3/22/06).

The latest installment is a March 31 memo from Paul Maltzer, the department’s chief environmental review officer, who concluded that yes, indeed, all developments in the vast eastern neighborhoods project area that could affect affordable housing or jobs would need detailed environmental review. That’s an admission, of sorts, that no more market-<\h>rate housing can be quickly approved, but it comes with a caveat: The memo states that projects will be evaluated on a "case-by-case basis" and leaves an awful lot of wiggle room. It also suggests that as soon as the city’s official broad-based environmental impact report on the eastern neighborhoods rezoning is completed, the floodgates will be opened again.

That EIR is on the fast track: Maltzer projects that a draft will be completed by late this summer and a final report by March 2007. But there’s a huge problem: An EIR has to evaluate a specific project, and the "project" a rezoning of some 3,800 acres of the city is pretty damn vague at this point. For example, there’s nothing about affordable housing in the scope of work that was put forward for the EIR.

So it’s entirely possible that the Planning Department will produce a report next spring that glosses over the biggest issues surrounding the future of the eastern neighborhoods and that developers will use it as a green light to begin a new building boom that will forever change the city.

We’d like to hold a few facts to be self-<\h>evident: San Francisco doesn’t need more million-<\h>dollar condos for young single people who work in Silicon Valley. The city can’t build the equivalent of another good-size town, with a population of perhaps 100,000 new residents, in eastern San Francisco without massive improvements in infrastructure, particularly transportation. The costs of the new streets, bus lines, train lines, and pedestrian walkways will run into the hundreds of millions of dollars and there’s nothing anywhere in any Planning Department document about who will pay for it.

And there’s nothing in the current proposals for the eastern neighborhoods that’s consistent with the housing element of the city’s own general plan.

The housing element is clear: San Francisco needs a lot of new below-<\h>market housing housing for families with kids, housing for people who work in the city and make moderate wages, housing for people living on fixed (and not gigantic) incomes. Housing for teachers and firefighters. Housing for the people who change the sheets at the hotels and clean the bathrooms at the convention centers that keep the city’s biggest industry thriving. In fact, it says, 40 percent of all new housing needs to be affordable for low- and very-low-<\h>income people, and another 32 percent needs to be affordable for families with moderate incomes. That kind of housing simply won’t be built under the current plans and that means any EIR the planners (or any private developers) prepare will be fundamentally flawed.

There’s a solution here, and if the Planning Commission won’t demand it, then the supervisors must: Any final EIR on the eastern neighborhoods has to consider not only the current rezoning plans but also an alternative that would bring the city into compliance with its own general plan. Asking planners to comply with their own plans shouldn’t be a radical notion. And until the Planning Department can explain how that might happen, this entire process and all new market-<\h>rate housing needs to be on hold, indefinitely.

Family business

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Frank Edward Lembi has spent nearly six decades turning San Francisco’s hot housing market into his version of the American dream, in the process creating nightmares for many struggling renters.

The aging patriarch still resides at the top of the Lembi family’s colossal accumulation of capital, Skyline Realty, also known widely as CitiApartments, the second-largest owner of rental units in San Francisco, as the company describes itself.

Skyline owns somewhere between 130 and 150 apartment buildings, hotels, and commercial properties throughout the city. Over the past few years, the company has spent tens of millions of dollars buying new properties everywhere from the Tenderloin to Russian Hill, quietly making the already controversial Skyline an even more ubiquitous force in San Francisco’s housing market.

As the Guardian has reported over the past few weeks, some Skyline tenants claim the company has developed an aggressive business strategy intended to empty newly purchased buildings of unprofitable tenants with rent control by either offering onetime buyout deals or simply frightening and coercing them until they leave.

Records from the San Francisco Department of Building Inspection also show violations of the city’s building and housing codes leading to complaints from tenants of roach and bedbug infestations and inoperable heating systems and elevators at some of the company’s properties. Such allegations have resulted in two lawsuits filed by the city and several more by tenants. Skyline also filed more eviction attempts in San Francisco Superior Court last year than any other single year during the past decade, according to a review of court records. Those cases have climbed fastest over the past four years and don’t reflect the true volume of notices to vacate that appear on tenants’ doors and are resolved before the matter appears in court.

From additional interviews and a review of publicly available records, corporate filings, and old press accounts emerges the portrait of a man, Frank Lembi, who has survived some of the darkest periods of the past few decades of American capitalism and retained his position as one of the city’s most powerful real estate moguls.

A San Francisco native, Lembi returned from serving in World War II and founded Skyline in 1947. Today he still lists the same Burlingame home address he had at least a decade ago when his longtime wife, Olga, passed away. The stark white and pea-green split-level is modest considering the wealth he’s accrued since Skyline began its ascension.

He and Olga had five children, two of whom would join Frank’s list of chief business allies. Yvonne Lembi-Detert is the president and CEO of a Skyline-affiliated company that owns a handful of posh boutique hotels. His son Walter joined the real estate business in 1969.

"I learned nepotism from my father," Frank told California Business in 1987. "He came to this country from Italy and started his children off pretty much the way I’ve started mine. It’s a way of life for us."

Frank and Walter eventually founded Continental Savings of America in 1977, a savings and loan association that propelled the family beyond the simple purchase and resale of small apartment buildings. At its peak, Continental maintained a staff of nearly 200 and more than half a billion dollars in assets. The company was making individual real estate loans of up to a million dollars by 1983.

During the ’80s and early ’90s, federal deregulation of the S&Ls encouraged a push for much more profitable, yet risky, high-interest loans and resulted in a race to the bottom. It was the era of financial scandal, and paying back federally insured depositors who had invested in failed S&Ls eventually cost taxpayers billions.

Continental began posting major losses in the ’90s as the company’s capital sank, and in 1995 the Office of Thrift Supervision (OTS) took it over, fearing insolvency. Not long beforehand, just before Continental went public, Frank stepped down as chair, owing to a conflict of interest tied to Skyline’s HomeOwners Finance Center. But Frank and Walter both remained major shareholders in the company.

It was a bad time for lenders, nonetheless, and Frank was apparently not happy. The feds had to file a restraining order against him after he allegedly threatened to plant security guards at Continental’s 250 Montgomery St. doors to "physically prevent" the confiscation of its office furniture, according to court records.

In the end, according to an OTS official we contacted, the cost to taxpayers amounted to about $22 million. But it clearly didn’t send the Lembis to the poorhouse: Since the Continental Savings collapse, Skyline Realty, along with CitiApartments, has grown to become a very lucrative focal point of the family’s enterprises.

Skyline Properties alone generated approximately $36 million in sales during the 2004 fiscal year, according to the Directory of Corporate Affiliations. But the company has founded more than 100 corporations and limited liability companies, each owning individual Skyline properties, and making it difficult to ascertain Skyline’s real annual revenue.

Its business model is not uncommon, but the complex web of affiliates has enabled the company to keep some legal liabilities aimed away from Skyline and Lembi and make sizable political contributions to various candidates and causes — nearly $40,000 since 1999 — all of it in small amounts stemming from several different entities. In one case, Skyline’s affiliates donated $20,000 on a single day to help defeat a 2002 ballot initiative designed to increase utility rates and improve the Hetch Hetchy water system.

The company has declined to answer further questions for this series, but Skyline manager David Raynal stated in response to a list of e-mail questions in early March that the company’s "plan is to restore apartment buildings to the highest standard." He wrote that Skyline supports the creation of special assessment districts that benefit those neighborhoods. "Every year we renovate many apartments, upgrade common areas, and improve neighborhoods."

Since we began publishing stories on Skyline, former employees have contacted us with tales about how the company conducts business. A onetime Skyline employee who requested anonymity said she was well aware of the company’s buyout offers to rent-controlled tenants and added that the company was "pretty heavy-handed." She also said she was encouraged to enter tenants’ units without prior notice.

"We were told we were making the community better, but we knew that was a bunch of bullshit," she said.

She added that Skyline had trouble retaining employees. High turnover rates are hardly uncommon in the real estate industry, but another former employee who also asked that his name not be revealed said Skyline’s group of hotels had similar issues.

"[Frank Lembi] is not the friendliest man in the world," he said. "Salespeople would get frustrated and move on."

Dean Preston, an attorney for the Tenderloin Housing Clinic, said he’s assisted at least 100 Skyline tenants with legal advice over the last five years.

"I deal with tenants, as well as landlords, all across the city," Preston said. "In my opinion, CitiApartments is the most abusive landlord that I deal with in my practice." *

Latter daze

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In playwright Dominic Orlando’s Juan Gelion Dances for the Sun, Latin American peasant Juan Gelion (a charismatic Johnny Moreno) abandons a promising career in the church to found a new one — or is it the old one reborn? Even Juan doesn’t seem sure. But he renounces material wealth, goes about healing the sick — beginning with beloved cousin Mariana (Juliet Tanner), who lies dying from a botched abortion — and collects a band of unlikely followers, including his cranky atheist brother (Hector Osorio) and a chipper but mentally unstable American (Alexandra Creighton).

Following a half-understood inner voice, Orlando’s hesitant messiah takes his band to the United States. Once landed in Florida, they go toe to toe with America’s military-industrial Christ complex, personified by a secretive rapture-hastening group of three Beltway fundamentalist power brokers and their golden boy, up-and-second-coming governor of Arizona Arn Darby (Nick Sholley). These four asses of the apocalypse, convinced their rich, war-making selves constitute God’s chosen, latch onto Juan Gelion as the false messiah, or adversary, prophesied in Revelations. They arrest and interrogate him, leading to a showdown of supernatural proportions and a surprising denouement. Along the way, more mundane and metaphysical concerns get an airing, along with a smattering of songs from, or accompanied by, the story’s narrator-chorus, a sardonic guitarrista played by composer Deborah Pardes.

Unlike the millennial millionaires it lambastes, Crowded Fire’s world premiere has both style and soul. Artistic director Rebecca Novick’s crisp pacing and appealing cast make it relatively easy to forgive the story’s thinner patches and loose ends, and the production strikes a fine balance of humor and drama throughout. Moreover, its fanciful story line contains both a well-grounded critique and a sincere spiritual question at its core. James J. Fenton’s lovely scenic design, meanwhile, with its graceful parabolic arches and delicate branches (combined with Heather Basarab’s lambent arboreal lighting) makes compellingly manifest Juan Gelion’s antiauthoritarian "church without walls." Delivering sass to the sanctimonious carries a bit of its own presumption, especially if your own thoughts on religion tend towards HL Mencken’s. But bucking the budding American theocracy is a timely subject. These people really are the living end.

MAKING HAY

Last Planet Theatre, never a company to shrink from a challenge (or to foist one on its audience), has pulled off a startling production of Franz Xavier Kroetz’s Farmyard, a difficult but quietly compelling exploration of love and suffering amid a bleak, isoutf8g landscape of rural poverty. The unflinching and idiosyncratic Kroetz, who not long ago was Germany’s most performed living playwright, may be far less well-known here, but his work finds kindred spirits in artistic director John Wilkins and his cast.

The story unfolds with a kind of aggressively stylized naturalism on a humble American family farm, where Beppi (Heidi Wolff), the retarded teenage daughter of the farmer (Richard Aiello) and his wife (Emma Victoria Glauthier), falls in love with an aging, randy farmhand named Sepp (Garth Petal), who has seduced her with stories. When Beppi becomes pregnant, the farmer takes retribution on Sepp’s beloved black shadow of a dog (Hilde Susan Jaegtnes, effectively swaddled in rags and shoe polish) before turning to his wife for help in solving the problem of their daughter.

The plot is bone simple, but its reverberations are subtle, strange, and unsettling — just as Kroetz’s stunted characters prove remarkably present while rarely managing more than a few brusque words or phrases. Whole scenes come wrapped in silences, long pauses measuring the distance between characters while binding them together. In a way, silence is the play’s principal subject: the silence of moral judgment, the absence (despite the swift trade here in the Commandments and the passing of sentences) of any voice or say beyond the inexorable force of life itself.

In that emptiness opened up so effectively in Farmyard — and echoed in the gentle bleakness of the surrounding country (beautifully evoked in James Flair and Paul Rasmussen’s scenic design, as well as Alex Lopez’s radiant lighting scheme) — it’s life that finally defines and bridges the void. And life converges in Beppi, whose name seems to mark her perpetual child status even in the midst of sexual awakening and motherhood, with all the innocent and anarchic force any farmyard could hope to contain. Wolff’s supple, perfectly assured performance is the natural standout in a cast composed of strong, focused portrayals all around.

Wilkins’s sharp staging adds a unique contribution to the play’s unsettling ambiguity by disrupting its heavy silences with a jarringly lush, sophisticated set of Shirley Horn torch songs. For all its in-your-face effect, the music makes a subtle point in the precise way it both works and doesn’t work: We can’t help aligning the words and ambience with the action, even while recognizing the absurdity of the match. But then what exactly is so absurd? In the end the songs perfectly measure, manipulate, and throw back our own programming, and still — it’s impossible not to add — how fitting that out of absolute darkness comes this beautiful, seemingly otherworldly paean to life. *

JUAN GELION DANCES FOR THE SUN

Through April 8

Thurs.–Sat., 8 p.m.; Sun., 2 p.m.

Traveling Jewish Theatre

470 Florida, SF

$18–$30

(415) 255-7846

www.crowdedfire.org

FARMYWARD

Through April 1

Thurs.–Sat., 8 p.m.

Last Planet Theatre

351 Turk, SF

$10–$18

(415) 440-3050

www.lastplanettheatre.com

The lessons of East Timor

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Chega, the 2,500-page, recently completed final report of East Timor’s Commission for Reception, Truth, and Reconciliation, will probably attract little notice in the United States, and it’s not clear whether it’s the Timorese or the Americans who will be the worse off for that.

If Americans were to take the document seriously, the benefit for East Timor would be obvious: The tiny, half-island nation off the north coast of Australia might hope to receive justice for what it has suffered, rather than just the charity of wealthier nations on which it now depends.

Less obvious is what Americans stand to gain from the report: an understanding of just how far off the mark mainstream political discussion really is when it comes to the legitimate role of the world’s only remaining superpower.

A single sentence from Chega (which means enough in Portuguese) says it all: "In response to the massive violations that occurred in Timor-Leste [East Timor’s official name] in September 1999, President Clinton threw the considerable influence of the United States behind efforts to press the Indonesian Government to accept the deployment of an international force in the territory, demonstrating the considerable leverage that it could have exerted earlier had the will been there."

The "massive violations" referred to were the killings of more than 1,000 Timorese and the burning down of virtually every structure in the emerging country following its vote for independence from Indonesia. The United States’ "considerable influence" stemmed from the fact that it supplied the bulk of Indonesia’s weapons, as it had done throughout the entire occupation of the former Portuguese colony. The prompt effectiveness of a US government that was actually motivated to end the carnage after the 1999 plebiscite demonstrated what some had argued all along: As a junior military partner, Indonesia could never have invaded East Timor in 1975 without tacit US approval.

Five presidents occupied the White House during the Indonesian occupation: Republicans Ford, Reagan, and Bush; and Democrats Carter and Clinton. For 24 years, none of them opted to utilize America’s "considerable leverage," despite repeated United Nations condemnations of the invasion and occupation.

The history is very relevant: In this case we find a dramatic reminder of the continuity of American foreign policy — from the cold war to the war on terrorism — in the person of Paul Wolfowitz. The neoconservative Wolfowitz, now president of the World Bank, served as undersecretary of defense at the start of the Iraq War, and a lot of people who might have known better took him at face value when he argued that the war was all about democratizing the Middle East.

Wolfowitz, however, displayed no such overriding concern for democracy in East Timor when he served as ambassador to Indonesia from 1986 to 1988, nor as assistant secretary of state for East Asian and Pacific affairs from 1982 to 1986. In 1997 he told a congressional committee that talk of East Timor’s independence was "destructive," a view he maintained until 1999.

Chega demonstrates the truth of the exact opposite point of view. In 1999 the US government acted effectively to end the suffering of East Timor because it finally lived up to a principle that ought to be the cornerstone of our foreign policy: It required that one of our allies live up to the ideals we demand of our enemies.

Tom Gallagher

Tom Gallagher was a United Nations election officer in Lospalos, East Timor, during the 1999 plebiscite.

A selective guide to political events

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WEDNESDAY, MARCH 29

Pro-choice films

Join the Bay Area Coalition for Our Reproductive Rights and New College as they screen two films that comment on the state of reproductive rights in the United States. Remember the haunting image of a woman lying dead on a motel room floor from an illegal abortion? That story, of the late Gerri Santoro, is told by Jane Gillooly in her film Leona’s Sister Gerri. Imagine what would happen if South Dakota’s ban on abortion spreads from state to state. Raney Aronson-Roth addresses this issue in her film The Last Abortion Clinic.

7 p.m.

Roxie Cinema

3117 16th St., SF

$8, $4 students

(415) 437-3425

THURSDAY, MARCH 30

The 9/11 Commission’s omissions

Is there a story out there that is just too big to touch? David Ray Griffin, theologian and philosopher, has pointed out the proverbial elephant in the room and is attempting to jump on its back and ride it to Washington, DC. In his lecture "9/11: The Myth and the Reality," Griffin discusses crucial omissions and distortions found within the 9/11 Commission Report.

7 p.m.

Grand Lake Theater

3200 Grand, Oakl.

$10

(510) 496-2700

SATURDAY, APRIL 1

A laughing matter

You know all about the tragic San Francisco earthquake and fire of 1906, in which thousands lost their lives and hundreds of thousands were left homeless. But do you know about the vaudeville shows and circus acts that rose from the fire’s ashes? In the aftermath of destruction, wit and humor kept spirits high. Starting today, April Fools’ Day, and lasting throughout the month, the San Francisco Public Library puts its collection of memorabilia from the era on display. The exhibition includes cartoons, theater programs, and postearthquake items that may leave you chuckling uncomfortably.

San Francisco Public Library, Skylight Gallery

100 Larkin, SF

Free

www.sfpl.org

Bayview women in politics

Attend a one-day leadership seminar designed by the National Women’s Political Caucus to get Bayview women politically involved in their community. Enjoy free child care and lunch while listening to speakers, including Willie Kennedy of the Southeast Community Facilities Commission.

10 a.m.–2 p.m.

Bayview–Hunters Point YMCA

1601 Lane, SF

Free, RSVP required

(415) 377-6722, nwpcsf@yahoo.com

Creative resistance

Hear a report from local artists Susan Greene and Sara Kershnar on their efforts to bring about Palestinian freedom and on recent events in the West Bank and Gaza. Other Cinema hosts an evening of discussion with these two muralists and the premiere of their video When Your Home Is a Prison: Cultural Resistance in Palestine.

8:30 p.m.

Artists’ Television Access

992 Valencia, SF

$5

(415) 824-3890

www.othercinema.com

Running clean campaigns

Listen to Trent Lange of the California Clean Money Campaign and Jim Soper of Voting Rights Task Force talk about the effort to strip political candidates of large private donations and demand that politicians answer people’s needs.

12:30–3 p.m.

Temescal Library

5205 Telegraph, Oakl.

Free

(510) 524-3791

www.pdeastbay.org

MONDAY, APRIL 3

Debate SF demographics

Join Inforum, a subgroup of the Commonwealth Club, in a discussion of why San Francisco is losing its young workers and families owing to the state of the public schools and a dearth of affordable housing. A panel will address what is needed to keep young families in the city.

6 p.m.

Commonwealth Club of California

595 Market, second floor, SF

$15, free for members

(415) 597-6705

www.commonwealthclub.org

TUESDAY, APRIL 4

MLK against the war

Read Martin Luther King Jr.’s "Declaration of Independence from the War in Vietnam" and listen to live music on this day of remembrance. Today marks the day he publicly denounced the growing war effort in Indochina. It was also the day he was assassinated.

7–9:30 p.m.

The Kitchen

225 Potrero, SF

$5 suggested donation

wrlwest@riseup.net

Free medical care

Receive free medical information and tests at City College of San Francisco’s health fair. Services include dental screenings, acupuncture, cholesterol tests, women’s health appointments, HIV tests, and a blood drive.

9 a.m.–noon

City College of San Francisco

1860 Hayes, SF

Free

(415) 561 1905 *

Mail items for Alerts to the Guardian Building, 135 Mississippi St., SF, CA 94107; fax to (415) 255-8762; or e-mail alerts@sfbg.com. Please include a contact telephone number. Items must be received at least one week prior to the publication date.

The ‘ol whizbang

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Given that the phrase another Vietnam (with or without fucking in the middle) probably passes through lips somewhere every .0000398 seconds at present, it might be a good moment to ponder differences between war-themed movies from the 1960s and today.

Admittedly, the Vietnam War had been going on for a while by the time significant mainstream movieland responses emerged. Among them were John Wayne’s notorious The Green Berets, the morally ambiguous Patton, and myriad antiwar diatribes, of which Catch-22, MASH, Little Big Man, Joe, and Soldier Blue were just the tip

The three-year nightmare

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The air of unreality in Washington, DC, is, well, unreal. On Face the Nation March 19, Vice President Dick Cheney proclaimed that the war in Iraq is going well, that the insurgency had reached "a stage of desperation" — and that the prediction that Americans would be greeted as liberators was "basically accurate." There’s no civil war, the administration insists, no catastrophic political failure, no evidence that the war is well on its way to becoming the new Vietnam. No, Cheney insists, the problem is just the overcritical news media.

For the record, more than 2,300 United States soldiers are dead. So are as many as 37,000 Iraqis. Countless more have been maimed, lost limbs, seen their lives destroyed. And three years after the invasion, there is no end in sight. More than 130,000 US troops are still fighting in Iraq, and they are utterly unable to keep the peace. The Iraqi forces are poorly trained and can do little to help.

Ayad Allawi, former acting prime minister and a man Bush used to see as a key ally, isn’t mincing words: "If this is not civil war," he told the BBC, "then God knows what civil war is."

To say the Bush administration lied about the invasion is a severe understatement. Bush and his team are lying every day. And at this rate, the US death toll could be in the tens of thousands by the time the nation extricates itself from this morass.

And yet the Democratic Party leadership is still way too tentative about making this the defining issue of the midterm elections. That’s crazy: Even in the red states, the war is increasingly unpopular. And Bush’s insistence on staying the course is starting to sound like Richard Nixon’s secret plan to end the Vietnam War.

The truth is, Iraq is an artificial construct, a nation pieced together from three ethnic and religious groups that have never gotten along. If it weren’t for the oil (ah, it’s always the oil), Kurds, Shiites, and Sunnis might each have their own states.

Perhaps a working government can still be created with all three parties involved. But the presence of huge numbers of US troops isn’t, and won’t, help that process.

The Democrats need to get behind Rep. John Murtha (D-PA) and demand a timetable for withdrawal of all troops. That might even lead to a Democratic Congress. *

Native son

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The John Smith-Pocahontas romance has long been a cornerstone of America’s mythical landscape. He being the original Man Who Knows Indians (an archetype sealed by James Fenimore Cooper in The Last of the Mohicans), and she standing in for the land itself: Embodying equal parts purity and promise, Pocahontas represents an ideal, a paradise. The myth of their doomed love speaks to how this paradise was won and then lost. It is a story that Terrence Malick – a writer-director whose work has always sloped toward myth and, in The Thin Red Line, epic poetry – has wanted to tap for decades and finally does in his strange new film, The New World.

The New World is the departure and even, perhaps, the failure that many critics were expecting from Malick’s comeback film, The Thin Red Line. Despite Line’s 170-minute running time, the writer-director’s take on James Jones’s panoramic World War II novel was every bit as entrancing as his revered earlier films (Badlands, Days of Heaven). The New World runs 135 minutes (the version I saw was actually 150 minutes: The movie was recut after already screening across the country), and, this time, Malick does seem to have sacrificed clarity and control for the sake of spectacle. Still, the movie is certainly an important addition to a powerfully coherent filmography. He retains his formidable talent for grounding his characters in a specific geography, and he remains refreshingly concerned with their interiority: Few movie characters have souls as deep as Malick’s.

The writer-director’s movies are all marked by a stark tension between hyperrealism and voice-over-laden stylization (a muted style being no less a style than a flashy one). Much has been made of Malick’s heavily researched, no-artificial-lighting depiction of Jonestown, and, indeed, the naturalistic, cinema verité rendering of America’s first colony is reminiscent of Werner Herzog’s lightning-bolt Aguirre: The Wrath of God (though Colin Farrell’s John Smith doesn’t have a hundredth the intensity of Klaus Kinski’s Aguirre). The film’s opening, which conveys the initial landing with Wagner-fueled bombast, is suitably revelatory and exemplary of Malick’s talent for lyricism.

With that said, there can, of course, be too much of a good thing. The depiction of Pocahontas and Smith’s courtship is almost insane in its unrelenting camera movements, flashes of elegiac sunlight, and impressionistic footage of plants – the scenes almost seem a parody of lyricism. The real problem here is that Malick’s aesthetic isn’t reigned in by a tight narrative construction (despite its expansive running time, The Thin Red Line never erred from a carefully plotted narrative mechanism). This Pocahontas is more human than her Disney counterpart (both because of Q’Orianka Kilcher’s performance and because the character receives a voice-over), but not enough to direct Malick’s labored gaze. By the time the story moves her to England with eventual husband John Rolfe (Christian Bale) and picks up some melodramatic heft from the heroine’s tragic arc, our attention has wavered too far for too long; the film’s many digressive passages fail to materialize into a whole.

Given how slippery The New World is, the film is set to solicit strong critical reactions. It’s indulgent and difficult to classify and will therefore push critics to extremes. In actuality, The New World really is what it seems: a fascinating failure with brilliant flourishes weighing against strained seriousness and muddled lyricism. As far as mythic American lovers in recent movies go, I think I’ll take Johnny and June over John and Pocahontas, but Malick’s vision still makes The New World worth a trip to the big screen. If the writer-director has finally stumbled, it proves what one might have guessed all along: that a Terrence Malick failure is many times more interesting than an average filmmaker’s success. While Malick might be misguided in trying to coax poetry out of a form – prestige Hollywood filmmaking – hardly known for being uncompromised, it’s difficult not to admire the ambition.

THE NEW WORLD  Opens Fri/20  Selected Bay Area theaters  For theater and show time info, go to www.sfbg.com www.thenewworldmovie.com

Eat the old

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THERE’S NOTHING LIKE  in-the-moment enthusiasm to make you lose critical perspective. I can think of a hundred albums that have excited me to the point of thinking, "This is the best band ever." That a handful of those albums belong to early-’70s-era Funkadelic makes it that much harder to be unbiased, especially since the recent reissues of their Westbound Records catalog have been parked in my disc changer for the past month.

 So when I call Funkadelic the best rock band of the early ’70s, I’m aware of the possible hyperbole – but I still think I’m right. Yet the recent reissue of their first seven studio albums – with liner notes, original artwork, remastered sound, and bonus tracks – is the first time these records have been given the archival treatment they deserve. Funkadelic and Free Your Mind and Your Ass Will Follow (both 1970), Maggot Brain (1971), Cosmic Slop (1973), and Standing on the Verge of Getting It On (1974) are all start-to-finish classics in my book, with the transitional, uneven America Eats Its Young and the more casual, jam-oriented Let’s Take It to the Stage just a notch below them.

 Taken together, these albums represent an amazing progression of sounds and styles, from acid rock, Detroit soul, and studio-based psychedelia on the earlier ones to heavy funk-rock, sicko novelty songs, and soaring R&B ballads on the next few. There are also hints – especially on America and Stage – of the anthemic funk style that sister band Parliament and the later, slicker version of Funkadelic made famous, but not as many as newcomers or casual P-Funk fans might expect. After all, I remember how surprised and blown away I was when I heard Maggot Brain’s proto-metal masterpiece "Super Stupid" for the first time. I had only heard a Parliament greatest-hits CD before, and I somehow thought I knew e xactly what this whole P-Funk business was all about. Boy, was I wrong.

 One of the remarkable aspects of the Westbound-era Funkadelic is the sheer variety of their music. Commercially, this variety probably worked against them – as if there weren’t enough strikes already against an acid-dropping, guitar-wielding black rock band with a bunch of uncredited vocalists and no true lead vocalist. But the range encompassed in these albums is part of what gives them depth and makes them so interesting to listen to over and over. Funny songs, angry songs, sad songs, uplifting songs – they did ’em all equally well, thanks to leader, producer, and chief songwriter George Clinton’s casting instincts as well as the vast pool of talent he had on hand.

 It’s true of the much-lauded Maggot Brain as well as the purposefully slicker Cosmic Slop. In addition to Clinton’s grim Vietnam War monologue on "March to the Witch’s Castle," Slop includes a tasteless recounting of a transvestite groupie encounter ("No Compute") followed by an old-school R&B tearjerker ("This Broken Heart") – a remarkable contrast that gives both songs a resonance they wouldn’t have just on their own. Such contrasts are one reason why you can’t just buy a greatest-hits album and get what Funkadelic were about. They were an albums band, not a singles band – in contrast to Parliamen t, which made several fine albums but excelled more at making concise, catchy dance-floor anthems.

 The liner notes to these reissues do a helpful job of sorting out the group’s confusing, on-again, off-again personnel changes. After Maggot Brain, the lineup changed so much that Funkadelic was less a "band" than a conglomerate (although not nearly as loose a conglomerate as the P-Funk All-Stars touring act). This revolving-door cast included legends such as guitar shredder Eddie Hazel and keyboardist-arranger Bernie Worrell, as well as lesser-known heroes like drummer Tiki Fulwood and vocalist-guitarist Gary Shider, a VIP on the post-Maggot Brain albums. America Eats Its Young alone includes some 40 musicians and vocalists, while the others average around 10. (Yes, bass icon Bootsy Collins is one of them, but he wasn’t a major player until later, beginning with Let’s Take It to the Stage.)

If you’re an old fan who’s just interested in bonus tracks, Funkadelic, with its many alternate versions and B-sides, and Maggot Brain, with its alternate, full-band mix of the monumental title track, are the standouts. If you haven’t heard these albums, just start with the first and go in chronological order from there, skipping America Eats Its Young and saving it until after you’ve heard Cosmic Slop and Standing on the Verge. (America is less of an a rchetypal Funkadelic LP and more of a hodgepodge of various P-Funk ideas.) I love ’em all, though, and  will continue to generate hyperbole on the band’s behalf until stations like the Bone drop the Guess Who and Grand Funk Railroad and start playing "Super Stupid" and "Funk Dollar Bill," or until journalists quit perpetuating the booty-shaking party-band aspect of Clinton and company’s legacy at the expense of all the other incredible music they made. Don’t hold your breath.

Warriors, stay in and playiyay!

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AN ENTIRE GENERATION was introduced to the 1979 cult classic film The Warriors in 1993 when Ol’ Dirty Bastard warbled "Warriors, come out and playiyay!" on Wu Tang’s "Shame on a Nigga." That’s why I rented it. It was one in a long string of rentals prompted by the Wu, and just like Shaolin vs. the Wu Tang, Shogun Assassin, and Master Killer, it was great. Now the most controversial company in video gaming has made a game based on The Warriors. Yes, the company that brought Grand Theft Auto to the world and prompted Hillary Clinton to declare war on vulgar video games, is at it again. As expected, The Warriors (Rockstar Games; PS2 and Xbox) is chock full of violence, street culture, swear words, and antisocial missions. The game loosely follows the movie with recognizable scenes and characters popping in and out, but unlike the movie, it is pretty monotonous: How many hobos and hookers do you have to mug to prove you’re capable of strong-arming digital victims, especially when there’s no variation or challenge in the act? And swearing? Unless there are hidden new swears that were recently invented, I’ve heard and grown bored with them. The fighting engine is pretty simple and easy to use: Kick, punch, and grab buttons allow you to kick, punch, knee, and throw people. It’s somewhat cumbersome and generally leads to button-mashing, but if you have patience and press buttons in certain sequences or twice in a row, special moves occur. Rembrandt, the new blood, sprays paint in his enemy’s face while yelling, "In your face!" Ouch. The game starts a few months before The Warriors are framed for killing gang kingpin Cyrus, which is when the movie begins. The story mode leads you through missions that involve tagging, jumping in new members, and other junk. Unlockable levels reveal the backstory and history of The Warriors. Rumble mode features minigames and a Create a Gang feature. A two-player mode allows you to play through the game with your best pal. Rival gangs like the Satan’s Mothers present all kinds of problems, but you’ll be all right. Each level has you play as a different character, which is great. Playing Rembrandt is the best because you get to tag walls. Tagging is accomplished by navigating a spray can over an on-screen pattern with the analog stick. If you veer from the line, the stick vibrates and paint is wasted. To get more spray paint, you just buy it from a guy on the street, which is totally realistic. To get money to buy paint, you can steal car radios, rob stores, and mug people. If you manage to get whooped by a rival gang while tagging, mugging, or looting and you find yourself lying lifelessly on the ground with a red cross floating above you, a fellow Warrior will revive you if you have Flash, a street drug easily purchased from drug dealers hidden in dark alleys. If I saw my niece playing this game, initially I would want to murder the game designers, but then I’d come to the conclusion that if a kid is stupid enough to want to buy drugs because he/she saw them restore his/her health in a video game, that kid is probably a moron and should be on drugs. In GTA you hump hookers to restore your health; in The Warriors, you do drugs. Big deal; Rockstar loves shocking people. Sex and drugs? Dudley Moore desensitized us to those long ago. Video game voice-overs have improved dramatically in the last few years. This game features great voice actors, including DMC, Aesop Rock, and some people from the original film. The city walls feature art by artists like Futura 2000 and DONDI (RIP), and SEEN’s Hand of Doom car is in the game. The soundtrack is an eerie horror drone occasionally interrupted by rock and soul songs. (Nate Denver)

Little girls lost

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FREQUENT VIEWERS OF the Lifetime Movie Network know it, as do the producers of Nancy Grace’s eponymous “debate” show: Barring the availability of a convenient serial killer (or killer storm), nothing draws viewers like missing children. Sure, war violence is scary, but kidnappings, which are seemingly more frequent and inevitable than ever, are in many ways far scarier. You can almost feel the parental paranoia spike with every new AMBER Alert.

In Flightplan Jodie Foster plays Kyle Pratt, a jacked-up Lifetime mom who faces not just stranger danger but also terrorism when her six-year-old daughter, Julia (Marlene Lawston), implausibly vanishes aboard a jumbo jet. The small family is traveling from Berlin to New York with a tragic mission: to bury Dad, whose coffin is loaded into the plane’s belly as Julia solemnly watches. Director Robert Schwentke, working from a script by Billy Ray (Shattered Glass) and Peter A. Dowling, foreshadows gleefully, playing off travel fears in the manner of another recent in-flight thriller, Red Eye. Not only is there a group of Arab men aboard (who will later be harassed by a frantic Kyle, who declares she doesn’t care about being politically incorrect), but the plane takes off amid icy, unsettling weather conditions. Above and beyond all that, Schwentke establishes a general air of danger that cloaks Kyle from the start

Army of glum

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ANY GIVEN FIVE minutes of Battlefield 2 (Electronic Arts) play can resemble the opening scene of Saving Private Ryan. You’re riding in an amphibious tank with your squad across enemy waters. Rumbles from explosions start getting louder and closer. Stray bullets hit the tank’s armor and the water outside. Suddenly you’re on land, the tank stops, and your squad leader yells, "Move!" over your headset. You jump out into utter chaos, bullets flying everywhere, your teammates falling around you. You run for cover as a stray grenade explosion blurs your vision and rings in your ears. With a giant whoosh, a support bomber passes overhead and takes out some enemy tanks. You blitz the checkpoint, trying to pick off remaining defenders and hoping you didn’t miss anyone in the huts that you’re sprinting past.

One of the most realistic war-themed action games ever made, rivaled only by its predecessors, Battlefield 1942 (EA) and Battlefield Vietnam (EA), BF2 is rightfully one of the most popular action games in the country today. It seamlessly integrates land, sea, and air vehicles into lush, photo-realistic maps where trees shake from the force of chopper propellers and snipers hide in swaying blades of grass. And the game play is just as slick as the graphics, allowing you to coordinate complicated team strategies through a simple command system and speak with your squad mates if you have a mic with your computer. The most dynamic part of the game stresses teamwork. Because of its massive strategic depth, if you want to accomplish anything other than annoying people online, you’ll have to work with your team to capture checkpoints and win matches – a feat never quite achieved on this level by other games.

This is the game I dreamed of when I was a kid playing Rogue Spear and Counter-Strike, diet versions of this action-packed feast. But that was before the current ridiculous war and all the oh-my-god footage coming back on television and in films like Fahrenheit 9/11 and Gunner Palace. As the previous games in the series did with WWII and Vietnam, BF2 trivializes the trauma of our current war in Iraq – and a possible future war with China – by making it into entertainment.

The game claims to sidestep politics by presenting a fictional conflict between a hypothetical Middle East Coalition (MEC), China, and the US Marines. The MEC and China switch off battling an invasive United States for strategic checkpoints that your team must camp at for a certain amount of time to gain control of. From the opening cutscene that plays like an action movie with all its destruction-glorifying grandeur, it’s clear that only a nation-player with the will to achieve total military dominance over other countries – and a complete ignorance of the ramifications for the people in those conquered countries – could take pleasure in acting out these scenarios. I’m glad most gamers playing BF2 probably don’t have firsthand experience with military oppression, but games such as this present a disconnect between reality and fantasy that contributes to the acceptance of US military actions.

After 9/11 and the subsequent wars in Afghanistan and Iraq, it’s safe to say that we’ve ceased to live in a bubble. Yet, although BF2 is just a game, its release at a time when 30 percent of soldiers returning from Iraq are reporting mental health issues stemming from the horrors they’ve witnessed, is a sign that our entertainment-industrial complex has shirked its responsibility by uncritically celebrating a very complicated issue, however inadvertently.

The problem is that the premise for war games acts as its own excuse. Nina Huntemann, director of the 2000 film Game Over: Gender, Race and Violence in Video Games, describes how some military games rely on the narrative of neutralizing a terrorist threat without questioning what makes someone a "terrorist" or why we should "neutralize" them. Though BF2 includes little narrative, the idea that there could possibly be a military conflict between the Middle East, China, and the United States is so obvious and predetermined that none of these types of questions even come to mind.

I don’t fault Digital Illusions, BF2’s developer: It’s difficult to sell sensitivity, but it’s easy to sell explosions. I blame a general immersion in entertainment that is predicated on the lie that fantasy is divorced from reality. The fantasy that we are removed from the war in Iraq is one of the things that allows the reality of it to continue.

Video games haven’t just become more like war – war has become like video games. I’ll never forget the moment in Fahrenheit 9/11 when a kid talks about how he listens to the Bloodhound Gang while he sits in his tank and shoots at people. That sounds a lot like what you do in BF2. The war in Iraq is at least partly being fought by kids whose first ideas of war were shaped by video game simulations before they experienced the reality. Like the tactics of dehumanizing the enemy to ease the ethical hang-ups involved in killing them, this extra layer of detachment enables kids to reconcile participating in potentially traumatic events.

Even the US Army actively tries to sell war as a video game. Recently I’ve caught Army recruitment commercials of guys working at computers and coordinating attacks from the comfort of a tent, perpetuating the idea that war can be fought on a flat screen without real-world messiness. Naturally, BF2’s commander screen, on which you can zoom in on different parts of the map and order squad movements or artillery strikes, looks a lot like the graphics flying around an Army commercial.

The Army also invested more than $6 million in a g ame called America’s Army, which it released for free over the Internet in August 2002, less than a year after 9/11 and seven months before war was declared on Iraq. Possibly one of the most sinister forms of propaganda to fly under the media’s radar, America’s Army essentially indoctrinates players into military life through a graphically advanced action game. Openly billed as a recrui tment tool, the game has players make their way through virtual boot camp and then move on to military operations.

Of course, games have always revolved around war and violence, from dodgeball to capture the flag. War is about strategy, problem-solving, and competition, just like most video games. Its popularity as a theme for video games is no surprise, just as it’s no surprise the Army wants to tap into that recruiting pool. These games aren’t desensitizing kids to real violence or instilling them with a lust for it. But the games’ latent values feed an unquestioning acceptance of the United States’ current militarism and normalize it for future generations. I don’t know if we – or the world – can afford another detached generation. Until we find a way to give kids, and, for that matter, adults, a real context for the fantasies provided by the entertainment industry, the enabling disconnect will continue.

The I-Hotel interviews

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Many lives ago, I remember standing in the back hallway of the International Hotel trying to fathom why it was that this funny, run-down place with these very sad, old, alone men had become the focal point of an enormous array of the concerted power of the state, city and business interests from across the world. And it was not easy then, and it is not easy now, because we were looking at the problem of progress, in some strange sense, and the sadness of one generation, the evils of one generation, seeking redress in another generation. Most of the residents of the I-Hotel were Filipino men who had come to work in the fields of the Central Valley, and had been refused the opportunity to bring over wives or sweethearts, had stayed perhaps too long and had lost their families, lost their wives, lost their sweethearts, lost anything except their companionship with each other, and their attachment to this funny place that they called home, that was not much of a home, but it was all that they had. And so the landowners that owned that prime piece of real estate in downtown San Francisco were being chided for taking away a precious place, which they looked upon as a rundown flophouse, from people who had been cheated of their lives by other landowners, hundreds of miles away. And if there’s any lessons to be learned, it’s the lesson that we are all connected, each to the other, and that everything we do has consequences, not only for ourselves and our immediate family and friends, the people who live in our immediate neighborhood or our city or our state, but across the world, across the century.

Richard Hongisto
Member, San Francisco Board of Supervisor; former San Francisco sheriff

I think that a larger population of voters in San Francisco have begun to see — in part from the I-Hotel — that we can’t continue to Manhattanize the city without destroying our quality of life. And I think that is in part responsible for the passing of Proposition M and other efforts to control density in our city.

We just have to keep pursuing the legislative remedies to prevent the destruction of existing housing stock and replacing it with higher-density construction, and to prevent the conversion of existing low-cost housing into high-profit commercial space and so on. We’ve done some of that already, but I think we can continue to do more. One of the things we need to do is get the right person in the mayor’s office, to get the right Planning Commission in there, which is one reason I’m supporting Art Agnos, because he’s the only person in the race who supported Proposition M.

I wouldn’t let my photograph be taken knocking down a door [if I had to do it over again], because the photograph was completely misunderstood. I was knocking the door panels out of the doors, so the minimum amount of damage was done to the doors, because we were hoping we could get the tenants back in. When we started to do the eviction, the deputies from my department started to smash in the whole door and the door frame, and ruin it. And what I did was I took the sledgehammer and said no, do it like this — just knock out one door panel, and that way if the tenants can get back in, they can take one little piece of plywood and screw or nail it in over the missing door panel. So I showed them how to do it and I got photographed in the act. The photograph has been attributed that I was running around smashing down the doors in hot pursuit of the tenants, when in fact the opposite was the truth.

I think that as a result of the fact that I refused to do the eviction immediately, and then getting sent to jail and sued — I had to spend about $40,000 in 1978 out of my own pocket to defend the suit — I think we made a real effort to forestall the eviction and give the city a chance to take it over by eminent domain and save the building for the tenants. It did not work out in the end, but I’m glad that we gave it the best shot.

Brad Paul
Executive director, North of Markert Planning Association

Well, let me just start by saying that I was there the night that it happened. It was pretty horrifying to watch people, basically, that I was paying — because I’m a taxpayer and they were police officers, paid by the city — to beat people up around me, and I saw people right in front of me have their skulls split open at taxpayers’ expense, so that this crazy person from Thailand, Supasit Mahaguna, could throw all these people out of their homes.

In retrospect, we’ve learned about the important role that nonprofit corporations can play in owning houses and there was a thing called a buy-back plan, which people thought was a scam. Today, you would think of something like a buy-back plan as just a normal way of buying residential property protection. I can’t think of any residential development ten years ago owned or operated by a nonprofit corporation. Today there are lots.

The eviction — I think people paid a very dear price for that. A number of those people are dead now, and I’m sure that the threat of that eviction didn’t help. A more recent case is 1000 Montgomery. The eviction of those people, I think, led to the death of one of the older tenants there. I think that’s one of the sad losses of things like the I-Hotel and 1000 Montgomery and all of them. I don’t think government officials pay enough attention to that when they make decisions on whether or not to let somebody do these things.

But for myself, I’d have to say that there were a number of things that I was involved in ten and 12 years ago that made me decide to do the kind of work I’m doing now. And I’d say one of the single things that had the biggest effect on me was being there that night and watching that, and saying we shouldn’t allow this to happen — that we need to all see that it never comes to this again.

Quentin Kopp
State senator, third district; former member, San Francisco Board of Supervisors

To me it was an unusual episode, and I’m not sure that it was a lesson of any kind. I don’t think it’s been repeated, has it? You know, I’m a believer in property rights, so it’s a difficult issue. On the other hand, I became convinced that there was genuine justification for maintaining the hotel for those who lived there and had an attachment to it. It was a collision of property rights versus feeling sorry for people who would lose their lodgings, lodgings to which they had become accustomed and attached. If I were the property owner, I would be indignant about the way the city treated me …

the tactics that were used, and the litigation — the litigation was horrendous.

Now, the broader social issue I would characterize as preservation, obviously, of low-income housing for a minority group, the Filipinos. [But] if the city had such a robust concern, sincere concern, then the proper act for the city was to condemn the property — to take it and preserve it …

for the people who lived there. But the city was not forthright, the city did not set out to do that — the city tried to strangulate the owner into doing that, by reason of, it’s what I consider a bit cutesy a legislative move — a political move.

So what have we learned? Well, I don’t think that anything has been learned, and not simply because this is sui generis (which is the Latin term for one of a kind that lawyers often employ), but because the city doesn’t have a consistent policy for preserving this kind of living space.

Richard Cerbatos
Former member, San Francisco School Board, San Francisco Board of Permit Appeals

Speaking as a Filipino American, I saw an attempt to destroy a cultural link within the Filipino-American community. It was clear there was an established community living there. The use of the hotel in that general community formed a network and a lifestyle that was identifiable for older Filipino men. The access to the cheaper restaurants in Chinatown, the ability to hang out and speak their language in pool halls — this was all proposed to be destroyed in one big demolition permit. They were in a community where some of their cultural values were intact, and the only thing that kept them intact was the fact that they were close to one another.

I think those sensitivities now are clearer to the general community. I still think there are areas of Chinatown where they’re still going to have to fight this battle….

We’re seeing this: That we can’t allow people to be displaced purely in the name of bigger and better developments, and namely, bigger and better profits. With Prop. M, we’re seeing some attempts at this, and I think the first evolution of this was the I-Hotel.

As far as my sensitivites go, my thing is, through just having lived through it, this was the first time that anyone took on the developers the way they did. There have been later battles, but that was the first one that became known to everyone city-wide. If we are going to put some control on growth, we can use these lessons.

Ed Illumin
Member, I-Hotel Tenants Association

The first eviction notice was posted in December of 1968, so we’re talking about an almost 19-year battle, here. Actually, a 19-year war, because there were little battles in between. But it comes down to the city and various segments of the Chinatown community and the developer, Four Seas, arriving at an agreement on the development for that lot that would include some replacement housing — affordable, low-income replacement housing. I mean really affordable and priority for those apartments going to former tenants of the I-Hotel, and those elderly and disabled. A number of [tenants] have died since that time, so really we’re talking about maybe a dozen or 16 people who are still around to taste the benefits of this long, long war. Some justice, even though it’s late, has arrived and I would say that we finally won the war. It was a long struggle, 19 years, but people will get a chance, if they live long enough, to move in on the 20th year, which is 1988, when the construction should be completed.

It certainly wasn’t positive for the Filipino neighborhood. There are remnants of Manilatown, but to a large extent that neighborhood was destroyed. There was a lot going on there, and the I-Hotel was the heart of the community in that area. The positive thing about it was that it kept the Financial District from encroaching into Chinatown. The Filipinos and the Chinese have had a long history of living together, co-existing, and I think it was pretty much a sacrifice of the Filipino community there to make sure that Chinatown was preserved.

Chester Hartman
Fellow in urban planning, Institute for Policy Studies; lawyer for I-Hotel Tenants Association

In a sense, I think the International Hotel, the tremendous interest and support that the eviction attempt generated over so many years, was a kind of a coalescing and symbolizing of resistance to changes in San Francisco — changes being obviously the downtown corporate world taking over the neighborhoods. I think the fact that so many people came to the aid of the hotel residents, even though they weren’t successful in preventing the eviction, was pretty much a strong building block in developing what has become an extremely strong housing movement in San Francisco, one that really has become very effective in influencing candidates and people in public office, and in getting some laws passed.

So that’s one important lesson — that sometimes victories take a while, and take different forms, but all these struggles are connected. Another, I guess, is really how long it takes to get any results — the absurdity of having a totally vacant lot there for ten years, at a time when people need housing so badly. The fact that a private developer like Four Seas is able in essence to hold on and do nothing with its land when there’s so much need for housing in the Chinatown-Manilatown area says a great deal about … the relationship of city government to private developers.

Curtis Choy
Producer, “The Fall of the I-Hotel”

About the eviction night itself — and I just have a dim recollection now — I remember being very numb, and the fact that I was hiding behind a camera made it easier, because I had something between me and the event. I think I’ve spent a lot of time getting it behind me and if I haven’t seen my own film for, say, half a year it scares the hell out of me to look at the eviction again. I feel hairs standing up on the back of my neck.

What can I say about lessons? It was almost, I shouldn’t say, it was almost worth that eviction, but I mean, that’s the only thing you can get out of something like that — I mean, basically, they killed half those guys by throwing them out.

The potential for revolution in the country was still in the back of our minds in the early ’70s. And here we were trying to use the system, trying to play ball with the system, and it sort of set us up for yuppiedom. It was sort of our last hope to get something together, and we had invested 12 years or so in the struggle. There was kind of a little mass depression that stuck, and that same kind of high energy has never come back.

Sue Hestor
Attorney, San Franciscans for Reasonable Growth

In retrospect, one of the issues that we should have raised and litigated was the lack of an adequate environmental review of the project. We’ve learned a lot since then, and I don’t want to say that people that were involved at that point made a wrong decision, but in 1987 that would be one of the first issues that would be raised.

Secondarily, I think what we learned is how the physical destruction of a building makes it very hard to keep the issue alive — after a while, the hole in the ground becomes something that has to be filled, and the focus of attention drifts away. It’s really striking how when you lose the building, it’s more than just a symbol — it’s the motivating factor in people’s lives.

Allison Brennan
Organizer, San Francisco Tenants Union

They [the city] could’ve taken the building by eminent domain and they didn’t do that — they didn’t want to do that. I mean, the issue is not so much what they could do to prevent it, but why they didn’t prevent it in the first place. And that is basically because San Francisco has very little interest in preserving low-income housing. Its interest, and the interest of most of the people from San Francisco, are in getting rid of low-income housing, “cleaning up” poor neighborhoods, and turning them into nice middle-class neighborhoods, and that’s the stated goal of most city legislation — poor people aren’t what we want.

I think that probably the most important thing that came out of [the I-Hotel struggle] was that, while we don’t have a real good situation for tenants in San Francisco, I think consciousness was raised, among at least a lot of tenants about the situation which tenants are in. And I think that to a certain extent, on a national level, the elderly are getting somewhat better consideration than they did previously.

Gordon Chin
Director, Chinatown Neighborhood Improvement Resource Center

I guess the lessons of the I-Hotel have to go back to 15 and 20 years, to the genesis of the issue. I personally think the I-Hotel symbolized a lot of very key development issues — housing issues, tenant empowerment issues — that gained a national reputation back starting in the 1960s. In some respects, it highlighted many of the particular facets of the housing problem very early on: the need to maintain and preserve existing housing; the threat of commercial and downtown developments; the encroachment into the neighborhoods; the issue of foreign investment and the role that can play in development encroachment; the critical importance of tenant organizing and tenant organization with a support base in the larger community; the need for diverse ethnic, racial, sexual, lifestyle communities to work together on an issue of mutual concern — in this case, Chinese, Filipino, white, all different kinds of people supporting the I-Hotel tenants and getting involved in the issues as they evolved over the last 15 years.The I-Hotel experience has had a positive effect on these issues in San Francisco, and probably across the country. ….

It was a very critical time for the city, and this is going back to the early ’60s, with the previous United Filipino Association, the International Tenants’ Association, the whole bit. You had a lot of environmental movement activity….

I think that’s the I-Hotel’s importance, not just what happened back then. It was the whole evolution of the issue, even after the demolition, when the focus then became — well, we’ve lost the building, but the fight must continue in terms of making sure whatever is built on the site becomes new, affordable housing — not just housing but affordable housing. And it’s culminated in the most recent development plan for the project, which has gained pretty wide-spread support. I guess part of the whole recollection, reflecting back on the ’60s in general, [is that] the I-Hotel was very symbolic of the whole movement — Vietnam, everything.*

Interviews for this story were conducted by: Nicholas Anderson, Heather Bloch, Eileen Ecklund, Mark Hedin, Craig McLaughlin, Tim Redmond and Erica Spaberg.

Of Lenin and latecomers

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Lenin for lawyers

The 50-year-old San Francisco chapter of the National Lawyers Guild has long worked with local politicians to formulate legislation on issues from South Africa sanctions to rent control, but has always stopped short of endorsing candidates. Two recent events — the Jesse Jackson presidential campaign and Supervisor Harry Britt’s run for Congress — have prompted some members to suggest a policy change. The group’s latest newsletter includes a fascinating pro-and-con debate.

Doris Walker argues against endorsements, pointing to Britt’s divergence with the Guild over support for the PLO. But the choicest bit of writing is contained in a pro-endorsement argument by Thomas Steel, Nancy Clarence and Brian McAffrey: “A live and vibrant organization dealing with issues that matter will have disagreements. If we’re dead or irrelevant, we can avoid disagreement….

The idea that participation in electoral politics would “compromise’ a leftist organization was rejected by no less than Lenin himself 70 years ago. Indeed, he characterized this perspective as “an infantile disorder’ in his famous polemic, Left Wing Communism — An Infantile Disorder….

Lenin [said]: “While you lack the strength to do away with the bourgeois parliments and every other type of reactionary institution, you must work within them because it is there you will still find workers who are duped….

Otherwise you risk turning into windbags.’

“For lawyers, the risk of turning into “nothing but windbags’ is something of an occupational hazard, while infantile disorders are not exactly unprecedented. We should avoid these mistakes and take part in legislative and electoral reforms along with the communities in which we live.”

The Guild will hold a membership meeting to vote on the issue September 16th. Info.: 285-5066.

Mayoral alternatives

In San Francisco, politics has always been too important to leave to the politicians. So it comes as no surprise that a popular local comedian and a flamboyant newspaper columnist have joined nightclub owner Cesar Ascarrunz in the ranks of contenders who hope to start their political careers at the top. Examiner columnist Warren Hinckle symbolically swept the steps of City Hall Friday and submitted a letter of intent to the registrar of voters signifying his official entry into the mayor’s race. Hinckle has impeccable credentials as a Party Loyalist, but based on his record as a magazine editor, we’d hesitate to let him near the city treasury.

Political satirist Will “Vote for me or don’t” Durst, claiming he is “as incapable of doing the job as any other candidate,” has also filed a letter of intent and plans a rousing campaign kick-off at a Julia Morgan Theatre show in Berkeley Aug. 23rd. Durst told the Bay Guardian he is serious about the candidacy and hopes to “pimp the process” to show people the other candidates never say anything of substance. But he added he doesn’t expect to win and is proceeding “with tongue firmly planted in cheek.” Durst says his campaign proposals include turning Broadway, with its boarded-up sex clubs, into a city-subsidized entertainment district and returning Fisherman’s Wharf to those who fish. Was that supposed to be funny? For more information on Durst’s campaign opener, call the Julia Morgan Theatre at 548-2687.

AIDS quilt

NAMES Project organizers have proclaimed Aug. 17th-24th Aid Quilt Week, and are asking people to form quilting bees to make panels bearing the name of someone lost to AIDS. The 3-by-6 foot panels will be sewn into a massive memorial quilt to be displayed at the Capital Mall in Washington, D.C. Oct. 11th, in conjunction with the National March on Washington for Lesbian and Gay Rights. Completed panels must be sent before Sept. 15th to NAMES Project, PO Box 14573, SF 94114. Info.: 626-5725.

SFRG grows

After eight years of battling Manhattanization on its own, San Franciscans for Reasonable Growth has decided to offer public membership. The nonprofit, 13-member citizens board, a major force in the Prop M victory last fall and a successful defender of the measure in court, plans a public outreach campaign on such upcoming issues as Mission Bay, the 101 corridor and regional transit development. A $25 annual basic fee ($100 supporting membership) will entitle members to a quarterly report analyzing urban environmental issues. President Alan Raznick told the Bay Guardian, “New members should provide a solid base for us to disseminate information. We’re building on our past strengths.” For information, contact Alan Raznick or Esther Marks at 870 Market, Room 1119, SF 94102, or call 392-6760.

Short takes:

Sunday/2ndAttendance at the July 12th screening of Iran/Contra: The Story Behind the Scandal, the Christic Institute video about a secret team in the intelligence community and its operations from Cuba to Vietnam to Nicaragua, was so great the Democratic Socialists of America scheduled additional screenings that will also include a second video in which Christic’s lead attorney, Daniel Sheehan, analyzes recent related developments in Washington. 4:30 pm, Noe Valley Ministry, 1021 Sanchez, SF. $2 Info.: 552-1250….

Tuesday/4th — Katya Komisaruk, who damaged a computer at Vandenberg Air Force Base to protest weapons testing, will speak at a War Resisters League/West potluck that will include a discussion of demonstration tactics. 7:00 pm, 942 Market,

701, SF. 433-6676….

Wednesday/5th — Participants at a conference organized by the Center for Third World Organizing will discuss how toxic pollutants disproportionately affect minorities. 8:30 am-4:30 pm, St Paul’s Episcopal Church, Grand at Montecito, Oakl. $10-$15. Info.: 654-9601.

SF’s economic future

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Sometime early this spring, while most of Washington, D.C. was watching the cherry trees bloom and thinking about the impending Iran-contra hearings, a few senior administration officials began discussing a plan to help domestic steel companies shut down underutilized plants by subsidizing some of the huge costs of pension plans for the workers who would be laid off.

The officials, mostly from the Departments of Labor and Commerce, saw the plan as a pragmatic approach to a pressing economic problem. With the steel industry in serious trouble, they argued, plant closures are inevitable — and since the federal government guarantees private pension plans, some companies will simply declare bankruptcy and dump the full liability on the taxpayers. Subsidies, they argued, would be a far cheaper alternative.

But the plan elicited sharp opposition from members of the Council of Economic Advisors, who acknowledged the extent of the problem but said the proposal was inconsistent with the Reagan economic philosophy. The problem, The New York Times reported, was that “such a plan would be tantamount to an industrial policy, an approach the president has long opposed.”

For aspiring conservative politicians, the incident contained a clear message, one that may well affect the terms of the 1988 Republican presidential debate. To the right-wing thinkers who control the party’s economic agenda, the concept of a national industrial policy is still officially off-limits. In San Francisco, the ground rules are very different. All four major mayoral candidates agree that the city needs to plan for its economic future and play a firm, even aggressive role in guiding the local economy. The incumbent, Dianne Feinstein, has established a clear, highly visible — and often controversial — industrial development policy, against which the contenders could easily compare and contrast their own programs.

The mayoral race is taking place at a time when the city is undergoing tremendous economic upheaval. The giant corporations that once anchored the local economy are curtailing expansion plans, moving to the suburbs and in many cases cutting thousands of jobs from the payroll. The once-healthy municipal budget surplus is gone. The infrastructure is crumbling and city services are stressed to the breaking point.

By all rights, the people who seek to lead the city into the 1990s should present San Francisco voters with a detailed vision for the city’s economic future, and a well-developed set of policy alternatives to carry that vision out.

But with the election just three months away, that simply isn’t happening. Generally speaking, for all the serious talk of economic policy we’ve seen thus far, most of the candidates — and nearly all the reporters who cover them — might as well be sniffing cherry blossoms in Ronald Reagan’s Washington.

“San Francisco’s major challenge during the next 15 years will be to regain its stature as a national and international headquarters city. This is crucial to the city because much of its economy is tied to large and medium-sized corporations….The major source of San Francisco’s economic strength is visible in its dramatic skyline of highrise office buildings.”

—San Francisco: Its economic future

Wells Fargo Bank, June 1987

“In San Francisco, you have the phenomenon of a city losing its big-business base and its international pretensions — and getting rich in the process.”

—Joel Kotkin, Inc. Magazine, April 1987

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IN MUCH OF San Francisco’s news media and political and business establishment these days, the debate — or more often, lament — starts with this premise: San Francisco is in a bitter competition with Los Angeles. At stake is the title of financial and cultural headquarters for the Western United States, the right to be called the Gateway to the Pacific Rim. And San Francisco is losing.

The premise is hard to deny. If, indeed, the two cities are fighting for that prize, San Francisco has very nearly been knocked out of the ring. Just a few short years ago, San Francisco’s Bank of America was the largest banking institution in the nation. Now, it’s third — and faltering. Last year, First Interstate — a firm from L.A. — very nearly seized control of the the company that occupies the tallest building in San Francisco. The same problems have, to a greater or lesser extent, beset the city’s other leading financial institutions. A decade ago, San Francisco was the undisputed financial center of the West Coast; today, Los Angeles banks control twice the assets of banks in San Francisco.

It doesn’t stop there. Los Angeles has a world-class modern art museum; San Francisco’s is stumbling along. The Port of San Francisco used to control almost all of the Northern California shipping trade; now it’s not even number one in the Bay Area (Oakland is). Looking for the top-rated theater and dance community west of the Rockies? San Francisco doesn’t have it; try Seattle.

Even the federal government is following the trend. A new federal building is planned for the Bay Area, but not for San Francisco. The building — and hundreds of government jobs — are going to Oakland.

In terms of a civic metaphor, consider what happened to the rock-and-roll museum. San Francisco, the birthplace of much of the country’s best and most important rock music, made a serious pitch for the museum. It went to Cleveland.

For almost 40 years — since the end of World War II — San Francisco’s political and business leaders have been hell-bent on building the Manhattan Island of the West on 49 square miles of land on the tip of the Peninsula. Downtown San Francisco was to be Wall Street of the Pacific Rim. San Mateo, Marin and the East Bay would be the suburbs, the bedroom communities for the executives and support workers who would work in tall buildings from nine to five, then head home for the evening on the bridges, freeways and an electric rail system.

If the idea was to make a few business executives, developers and real estate speculators very rich, the scheme worked well. If the idea was to build a sound, firm and lasting economic base for the city of San Francisco, one could certainly argue that it has failed.

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NOT EVERYONE, however, accepts that argument. Wells Fargo’s chief economist, Joseph Wahed, freely admits he is “a die-hard optimist.” San Francisco, he agrees, has taken its share of punches. But the city’s economy is still very much on its feet, Wahed says; he’s not by any means ready to throw in the towel.

Wahed, who authored the bank’s recent report on the city’s economic future, points to some important — and undeniable — signs of vitality:

* San Francisco’s economic growth has been well above both the national and state average during the 1980s — a healthy 3.67 a year.

* Per-capita income in San Francisco is $21,000 a year, the highest of any of the nation’s 50 largest cities.

* New business starts in the city outpaced business failures by a ratio of 5-1, far better than the rest of the nation. * Unemployment in San Francisco, at 5.57, remains below national and statewide levels (see charts).

San Francisco, Wahed predicts, has a rosy economic future — as long as the city doesn’t throw up any more “obstacles to growth” — like Proposition M, the 1986 ballot measure that limits office development in the city to 475,000 square feet a year.

John Jacobs, the executive director of the San Francisco Chamber of Commerce, came to the same conclusion. In the Chamber’s annual report, issued in January, 1987, Jacobs wrote: “The year 1986 has been an amusing one, with both national and local journalists attempting to compare the incomparable — San Francisco and Los Angeles — and suggesting that somehow San Francisco is losing out in this artificially manufactured competition. Search as one might, no facts can be found to justify that assertion.”

Wahed and Jacobs have more in common than their optimism. Both seem to accept as more or less given the concept of San Francisco as the West Coast Manhattan.

Since the day Mayor Dianne Feinstein took office, she has run the city using essentially the policies and approach championed by Wahed and Jacobs. Before San Franciscans rush to elect a new mayor, they should examine those strategies to see if they make any sense. After nearly a decade under Feinstein’s leadership, is San Francisco a healthy city holding its own through a minor downturn or an economic disaster area? Are San Francisco’s economic problems purely the result of national and international factors, or has the Pacific Rim/West Coast Wall Street strategy failed? Is the economy weathering the storm because of the mayor’s policies, or despite them? And perhaps more important, will Feinstein’s policies guide the city to new and greater prosperity in the changing economy of the next decade? Or is a significant change long overdue?

The questions are clear and obvious. The answers take a bit more work.

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SAN FRANCISCO’S economy is an immensely complex creature, and no single study or analysis can capture the full range of its problems and potential. But after considerable research, we’ve come to a very different conclusion than the leading sages of the city’s business community. Yes, San Francisco can have a rosy economic future — if we stop pursuing the failed policies of the past, cut our losses now and begin developing a new economic development program, one based on reality, not images — and one that will benefit a broad range of San Franciscans, not just a handful of big corporations and investors.

Our analysis of San Francisco’s economy starts at the bottom. Wells Fargo, PG&E and the Chamber see the city first and foremost as a place to do business, a market for goods and a source of labor. We see it as a community, a place where people live and work, eat and drink, shop and play.

The distinction is far more than academic. When you look at San Francisco the way Wells Fargo does, you see a booming market: 745,000 people who will spend roughly $19.1 billion on goods and services this year, up from $15.4 billion in 1980. By the year 2000, Wahed projects, that market could reach $229 billion as the population climbs to 800,000 and per-capita income hits $30,000 (in 1986 dollars), up from $18,811 in 1980. Employment has grown from 563,000 in 1980 to 569,000 in 1986. When you look at San Francisco as a place to live, you see a very different story. Perhaps more people are working in San Francisco — but fewer and fewer of them are San Franciscans. In 1970, 57.47 of the jobs in San Francisco were held by city residents, City Planning Department figures show. By 1980, that number had dropped to 50.77. Although more recent figures aren’t available, it’s almost certainly below 507 today.

Taken from a slightly different perspective, in 1970, 89.17 of the working people in San Francisco worked in the city. Ten years later, only 857 worked in the city; the rest had found jobs elsewhere.

Without question, an increase in per capita income signifies that the city is a better market. It also suggests, however, that thousands of low-income San Franciscans — those who have neither the skills nor the training for high-paying jobs — have been forced to leave the city. It comes as no surprise, for example that San Francisco is the only major city in the country to post a net loss in black residents over the past 15 years.

The displacement of lower-income residents highlights a key area in which San Francisco’s economy is badly deficient: housing. San Francisco’s housing stock simply has not kept pace with the population growth of the past five years. Between 1980 and 1984, while nearly 40,000 more people took up residence in the city, only 3,000 additional housing units were built.

Some of the new residents were immigrants who, lacking resources and glad to be in the country on any terms, crowded in large numbers into tiny apartments. Some were young, single adults, who took over apartments, homes and flats, bringing five of six people into places that once held families of three or four.

But overall, the impact of the population increase has been to place enormous pressure on the limited housing stock. Prices, not surprisingly, have soared. According to a 1985 study prepared for San Franciscans for Reasonable Growth by Sedway Cooke and Associates, the median rent for a one-bedroom apartment in 1985 was $700 a month. The residential vacancy rate was less than 17.

Housing is more than a social issue. A report released this spring by the Association of Bay Area Governments warns the entire Bay Area may face a severe housing crisis within the next two decades — and the lack of affordable housing may discourage new businesses from opening and drive existing ones away. When housing becomes too expensive, the report states, the wages employers have to pay to offset housing and transportation costs make the area an undesirable place to do business.

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WAHED’S WELLS FARGO report shows a modest net employment gain in San Francisco between 1980 and 1986, from 563,000 jobs to 569,000. What the study doesn’t show is that the positive job growth statistic reflects the choice of the study period more than it reflects current trends. In the late 1970s and early 1980s, San Francisco experienced considerable job growth. By 1981, that trend was beginning to reverse.

According to a study by Massachusetts Institute of Technology researcher David Birch, San Francisco actually lost some 6,000 jobs between 1981 and 1985. The study, commissioned by the Bay Guardian, showed that the decline occurred overwhelmingly to large downtown corporations — the firms upon which the Pacific Rim strategy was and is centered. Since 1981, those firms have cost the city thousands of jobs. (See The Monsters that Ate 10,000 jobs, Bay Guardian DATE TKTKTK).

Some of the firms — B of A, for example — were victims of poor management. Some, like Southern Pacific, were caught in the merger mania of the Reagan years. Others, however, simply moved out of town. And no new giants moved in to take their places.

What drove these large employers away? Not, it would appear, a lack of office space or other regulatory “obstacles” to growth: Between 1980 and 1985, San Francisco underwent the largest building boom in its history, with more than 10 million square feet of new office space coming on line. In fact, the city now has abundant vacant space; by some estimates, the vacancy rate for downtown office buildings is between 157 and 207.

The decision to move a business into or out of a city is often very complicated. However, Birch, who has done considerable research into the issue, suggests in the April 1987 issue of Inc. magazine that the most crucial concerns are what he calls “quality of life” factors. Quality-of-life factors include things like affordable family housing for employees; easy, inexpensive transit options and good-quality recreation facilities and schools — and good-quality local government. In many cases, researchers are finding, companies that need a large supply of “back office” labor — that is, workers who do not command executive salaries — are moving to the suburbs, where people who are paid less than executive salaries can actually afford to live.

“Today the small companies, not the large corporations, are the engines of economic growth,” Birch wrote. “And more often than not, small companies are growing in places that pay attention to the public realm, even if higher taxes are needed to pay for it.”

For the past 20 years, San Francisco has allowed, even encouraged, massive new highrise office development, geared to attracting new headquarters companies and helping existing ones expand. In the process, some basic city services and public amenities — the things that make for a good quality of life — have suffered.

The most obvious example is the city’s infrastructure — the roads, sewers, bridges, transit systems and other physical facilities that literally hold a modern urban society together. A 1985 report by then-Chief Administrative Officer Roger Boas suggested that the city needed to spend more than $1 billion just to repair and replace aging and over-used infrastructure facilities. Wells Fargo’s report conceeds that that city may be spending $50 million a year too little on infrastructure maintenance.

Some of that problem, as Boas points out in his report, is due to the fact that many city facilities were built 50 or more years ago, and are simply wearing out. But wear and tear has been greatly increased by the huge growth in downtown office space — and thus daytime workplace population — that took place over the previous two decades.

To take just one example: Between 1980 and 1984, City Planning Department figures show, the number of people traveling into the financial district every day increased by more than 10,000. Nearly 2,000 of those people drove cars. In the meantime, of course, the number of riders on the city’s Municipal Railway also increased dramatically. City figures show more than 2,000 new Muni riders took buses and light rail vehicles into the financial district between 1981 and 1984. Again, city officials resist putting a specific cost figure on that increase — however, during that same period, the Muni budget increased by one-third, from $149 million to $201 million. And the amount of General Fund money the city has had to put into the Muni system to make up for operating deficits rose by some 737 — from $59 million to $102 million.

The new buildings, of course, have meant new tax revenues — between 1981 and 1986, the total assessed value of San Francisco property — the city’s tax base — increased 767, from $20.3 billion to $35.8 billion. But the cost of servicing those buildings and their occupants also increased 437, from $1.3 billion to to $1.9 billion. In 1982, San Francisco had a healthy municipal budget surplus of $153 million; by this year, it was down to virtually nothing.

The city’s general obligation bond debt — the money borrowed to pay for capital improvements — has steadily declined over the past five years, largely because the 1978 Jarvis-Gann tax initiative effectively prevented cities from selling general obligation bonds. In 1982, the city owed $220 million; as of July 1st, 1987, the debt was down to $151 million.

However, under a recent change in the Jarvis-Gann law, the city can sell general obligation bonds with the approval of two-thirds of the voters. The first such bond sale — $31 million — was approved in June, and the bonds were sold this month, raising the city’s debt to $182 million. And this November, voters will be asked to approve another $95 million in bonds, bringing the total debt to $277 million, the highest level in five years.

The city’s financial health is still fairly sound; Standard and Poor’s gives San Francisco municipal bonds a AA rating, among the best of any city in the nation. And even with the new bonds, the ratio of general obligation debt to total assessed value — considered a key indicator of health, much as a debt-to-equity ratio is for a business — is improving.

But the city’s fiscal report card is decidedly mixed. For most residents, signs of the city’s declining financial health show up not in numbers on a ledger but in declining services. Buses are more crowded and run less often. Potholes aren’t fixed. On rainy days, raw sewage still empties into the Bay. High housing costs force more people onto the streets — and the overburdened Department of Social Services can’t afford to take care of all of them.

What those signs suggest is that, in its pell-mell rush to become the Manhattan of the West, San Francisco may have poisoned its quality of life — and thus damaged the very economic climate it was ostensibly trying to create.

MAYOR DIANNE FEINSTEIN’S prescription for San Francisco’s economic problems and her blueprint for its future can be summed up in four words: More of the same. Feinstein, like Wells Fargo, PG&E and the Chamber of Commerce, is looking to create jobs and generate city revenues from the top of the economy down. Her program flies in the face of modern economic reality and virtually ignores the changes that have taken place in the city in the past five years.

Feinstein’s most visible economic development priorities have taken her east, to Washington D.C., and west, to Japan and China. In Washington, Feinstein has lobbied hard to convince the Navy to base the battleship USS Missouri in San Francisco. That, she says, will bring millions of federal dollars to the city and create thousands of new jobs.

In Asia, Feinstein has sought to entice major investors and industries to look favorably on San Francisco. She has expressed hope that she will be able to attract several major Japanese companies to set up manufacturing facilities here, thus rebuilding the city’s manufacturing base and creating jobs for blue-collar workers.

Neither, of course, involves building new downtown highrises. But both are entirely consistent with the Pacific Rim strategy — and both will probably do the city a lot more harm than good.

Feinstein’s programs represent an economic theory which has dominated San Francisco policy-making since the end of World War II. In those days, the nation’s economy was based on manufacturing — iron ore from the ground became steel, which became cars, lawn mowers and refrigerators. Raw materials were plentiful and energy was cheap.

By the early 1970s, it was clear that era was coming to a close. Energy was suddenly scarce. Resources were becoming expensive. The economy began to shift gears, looking for ways to make products that used less materials and less energy yet provided the same service to the consumer.

Today, almost everyone has heard of the “information age” — in fact, the term gets used so often that it’s begun to lose its meaning. But it describes a very real phenomenon; Paul Hawken, the author of The Next Economy, calls it “ephemeralization.” What is means is that the U.S. economy is rapidly changing from one based manufacturing goods to one based on processing information and providing services. In the years ahead, the most important raw materials will be ideas; the goal of businesses will be to provide people with useful tools that require the least possible resources to make and the least possible energy to use.

In the information age, large companies will have no need to locate in a central downtown area. The source of new jobs will not be in manufacturing — giant industrial factories will become increasingly automated, or increasingly obsolete. The highways of the nation’s commerce will be telephone lines and microwave satellite communications, not railroads and waterways.

IF SAN FRANCISCO is going to be prepared for the staggering changes the next economy will bring, we might do well to take a lesson from history — to look at how cities have survived major economic changes in the past. Jane Jacobs, the urban economist and historian, suggests some basic criteria.

Cities that have survived and prospered, Jacobs writes, have built economies from the bottom up. They have relied on a large number of small, diverse enterprises, not a few gigantic ones. And they have encouraged business activities that use local resources to replace imports, instead of looking to the outside for capital investment.

A policy that would tie the city’s economic future to the Pentagon and Japanese manufacturing companies is not only out of synch with the future of the city’s economy — it’s out of touch with the present.

In San Francisco today, the only major economic good news comes from the small business sector — from locally owned independent companies with fewer than 20 employees. All of the net new jobs in the city since 1980 have come from such businesses.

Yet, the city’s policy makers — especially the mayor — have consistently denied that fact. As recently as 1985, Feinstein announced that the only reason the city’s economy was “lively and vibrant” was that major downtown corporations were creating 10,000 new jobs a year.

Almost nothing the city has done in the past ten years has been in the interest of small business. In fact, most small business leaders seem to agree that their astounding growth has come largely despite the city’s economic policy, not because of it. That situation shows no signs of changing under the Feinstein administration; the battleship Missouri alone would force the eviction of some 190 thriving small businesses from the Hunters Point shipyard.

San Francisco’s economic problems have not all been the result of city policies. The financial health of the city’s public and private sector is affected by state and federal policies and by national and international economic trends.

Bank of America, for example, is reeling from the inability of Third World countries to repay outstanding loans. Southern Pacific and Crocker National Bank both were victims of takeovers stemming from relaxed federal merger and antitrust policies. In fact, according to Wells Fargo, 21 San Francisco corporations have been bought or merged since 1975. Meanwhile, deep cutbacks in federal and state spending have crippled the city’s ability to repair its infrastructure, improve transit services, build low cost housing and provide other essential services.

To a great extent, those are factors outside the city’s control. They are unpredictable at best — and over the next ten or 20 years, as the nation enters farther into the Information Age, the economic changes with which the city will have to cope will be massive in scale and virtually impossible to predict accurately.

Again, the experiences of the past contain a lesson for the future. On of San Francisco’s main economic weaknesses over the past five years has been its excess reliance on a small number of large corporations in a limited industrial sector — largely finance, insurance and real estate. When those industries took a beating, the shock waves staggered San Francisco.

Meanwhile, the economic good news has come from a different type of business — businesses that were small able to adapt quickly to changes in the economy and numerous and diverse enough that a blow to one industry would not demolish a huge employment base.

But instead of using city policy to encourage that sector of the city’s economy, Feinstein is proposing to bring in more of the type of business that make the city heavily vulnerable to the inevitable economic shocks that will come with the changes of the next 20 years.

THE CANDIDATES who seek to lead the city into the next decade and the next economy will need thoughtful, innovative programs to keep San Francisco from suffering serious economic problems. Those programs should start with a good hard dose of economic reality — a willingness to understand where the city’s strengths and weaknesses are — mixed with a vision for where the city ought to be ten and 20 years down the road.

Thus far, both are largely missing form the mayoral debate.

For years, San Francisco activists and small business leaders have been complaining about the lack of reliable, up-to-date information on the city’s economy and demographics. The environmental impact report on the Downtown Plan — a program adopted in 1985 — was based largely on data collected in 1980. That same data is still used in EIRs prepared by the City Planning Department, and it’s now more than seven years out of date.

In many areas, even seven-year-old data is simply unavailable. Until the Bay Guardian commissioned the Birch studies in 1985 and 1986, the city had no idea where jobs were being created. Until SFRG commissioned the Sedway-Cooke report in 1985, no accurate data existed on the city’s labor pool and the job needs of San Franciscans.

Today, a researcher who wants to know how much of the city’s business tax revenue comes from small business would face a nearly impossible task. That’s just not available. Neither are figures on how much of the city’s residential or commercial property is owned by absentee landlords who live outside the city. If San Francisco were a country, what would its balance of trade be? Do we import more than we export? Without a huge research staff and six months of work, there is no way to answer those questions.

Bruce Lilienthal, chairman of the Mayor’s Small Business Advisory Commission, argues that the city needs to spend whatever money it takes to create a centralized computerized data base — fully accessable to the public — with which such information can be processed and analyzed.

A sound economic policy would combine that sort of information with a clear vision of what sort of city San Francisco could and should become.

What would a progressive, realistic economic development platform look like? We’ve put together a few suggestions that could serve as the outline for candidates who agree with our perspective — and as an agenda for debate for candidates who don’t.

* ADEQUATE AFFORDABLE HOUSING is essential to a healthy city economy, and in the Reagan Era, cities can’t count on federal subsidies to build publicly financed developments. Progressive housing experts around the country agree that, in a city under such intense pressure as San Francisco, building new housing to keep pace with demand will not solve the crisis alone; the city needs to take action to ensure that existing housing is not driven out of the affordable range.

Economist Derek Shearer, a professor at Occidental College in Los Angeles and a former Santa Monica planning commissioner, suggests that municipalities should treat housing as a scarce public resource, and regulate it as a public utility. Rents should be controlled to allow property owners an adequate return on their investment but prevent speculative price-gouging.

Ideally, new housing — and whenever possible, existing housing — should be taken out of the private sector altogether. Traditional government housing projects have had a poor record; a better alternative is to put housing in what is commonly called a land trust.

A land trust is a private, nonprofit corporation that owns property, but allows that property to be used under certain terms and conditions. A housing trust, for example, might allow an individual or family to occupy a home or apartment at a set monthly rate, and to exercise all rights normally vested in a homeowner — except the right to sell for profit. When the occupant voluntarily vacated the property, it would revert back to the trust, and be given to another occupant. The monthly fee would be set so as to retire the cost of building the property over it’s expected life — say, 50 years. Each new occupant would thus not have to pay the interest costs on a new mortgage. That alone, experts say, could cut as much as 707 off the cost of a home or apartment.

* DEVELOPMENT DECISIONS should be made on the basis of community needs. A developer who promises to provide jobs for San Franciscans should first be required to demonstrate that the jobs offered by project will meet the needs of unemployed residents of the city. Development fees and taxes should fully and accurately reflect the additional costs the project places on city services and infrastructure.

Land use and development decisions should also be geared toward meeting the needs of small, locally owned businesses — encouraging new start-ups and aiding the expansion of existing small firms.

* ECONOMIC DEVELOPMENT programs should encourage local firms to use local resources in developing products and services that bring revenue and wealth into the city instead of sending it to outside absentee owners and that encourage economic self-sufficiency.

Cities have a wide variety of options in pursuing this sort of goal. City contracts, for example, should whenever possible favor locally owned firms and firms that employ local residents and use local resources. Instead of just encouraging sculptured towers and flagpoles on buildings, city planning policies should encourage solar panels that decrease energy imports, rooftop gardens that cut down on food imports and utilize recycled materials that otherwise would become part of the city’s garbage problem. (Using recycled materials is by no means a trivial option; if all of the aluminum thrown away each year in San Francisco were recycled, it would produce more usable aluminum than a small-to-medium sized bauxite mine.)

Other cities have found numerous ways to use creative city policies to encourage local enterprise. In Minneapolis-St. Paul, for example an economic development agency asked the U.S. Patent Office for a list of all the patents issued in the past ten years to people with addresses in the Twin Cities area. The agency contacted those people — there were about 20 — and found that all but one had never made commercial use of the patents, largely for lack of resources. With the agency as a limited partner providing venture capital, more than half the patent owners started businesses that were still growing and expanding five years later. Some of those firms had actually outgrown their urban locations and moved to larger facilities out of town — but since the Twin Cities public development agency had provided the venture capital, it remained a limited partner and the public treasury continued to reap benefits from the profits of the businesses that had left town.

* CITY RESOURCES should be used to maximize budget revenues. For example, San Francisco currently owns a major hydroelectric power generating facility at Hetch Hetchy in Yosemite National Park. A federal law still on the books requires San Francisco to use that facility to generate low-cost public power for its citizens; that law, the Raker Act, has been honored only in the breach. That means every year PG&E takes millions of dollars in profits out of San Francisco (the company is based here, but very few of its major stockholders are San Franciscans). The last time we checked, San Francisco was losing $150 million (CHECK) in city revenue by failing to enforce the Raker Act and municipalize its electric utility system.

Meanwhile, PG&E continues to use city streets and public right-of-ways for its transmission cables at a bargain-basement franchise fee passes in 1932 and never seriously challenged. Other highly profitable private entities, like Viacom cable television, use public property for private purposes and pay highly favorable rates for the right.

Those ideas should be the a starting point, not a conclusion for mayoral debates. But thus far, we’ve seen precious little consideration of the issues, much less concrete solutions, from any of the candidates.

The mayor’s race, however, is still very much open, and the candidates are sensitive to public opinion. If the voters let the candidates know that we want to hear their visions of the city’s economic future — and their plans for carrying those visions out — we may see some productive and useful discussions yet.*

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