Facebook to Invest $1 Billion in Bay Area Housing
Facebook announced it will commit over $1 billion over the next decade to offset its contributions to California’s affordable housing shortage. The budget put forward is divided into five categories: $250 million to build housing in areas with shortages, $150 million to Partnership for the Bay’s Future, $25 million for teacher-housing, and $225 million for housing on land previously purchased by the company. The remaining $350 million will be set aside to divert towards the most effective efforts as determined by Facebook. California Gov. Gavin Newsom, who is under pressure to fulfill his campaign promise to build 3.5 million homes, put out a statement acknowledging Facebook’s efforts while calling on others to join. “Progress requires partnership with the private sector and philanthropy to change the status quo and address the cost crisis,” he said. Facebook’s announcement follows Google’s $1 billion pledge to build Bay Area housing and Microsoft’s $500 million pledge to build Seattle-area housing. (See prior CP&DR commentary.)

MLS Commits to Sacramento; Stadium to be Developed at Rail Yards
MLS Commissioner Don Garber announced that Sacramento is officially a Major League Soccer city. An investment group headed by Ron Burkle will own the 29th franchise in the league after months of negotiations that began in April. Pre-construction on a new 20,000-seat stadium is underway just north of downtown Sacramento as part of the massive rail yards redevelopment. The $252 million stadium is slated for completed in 2022. Adjacent to the stadium, Burkle’s investment group plans to develop a 17-acre entertainment and shopping district. What the new stadium means for Sacramento’s bottom line is an open question. The city approved a $33 million incentive package to reimburse the investment group for $27 million worth of infrastructure near the stadium, waived millions in building permits, and promised up to $3 million worth of city services during games. Mayor Darrell Steinberg defended the subsidies, predicting the stadium will lead to “a billion dollars’ worth of return.” A 2015 report, paid for by supporters of the project, appears to support the mayor’s claim. Outside experts who evaluated the deal pointed to private financing, increased tourism, and talent recruitment as positive elements of the deal, but cautioned that any benefits would be likely be moderate and in a concentrated area. A 2008 summary of 20 years of peer-reviewed research is likewise pessimistic, stating there is “almost no evidence that professional sport franchises have a measurable effect on the economy.”

Encinitas Sues Backers of Slow Growth Ballot Measure
After 6 years of being out of compliance with state housing regulations, failed votes on measures to get into compliance, and subsequent litigation, Encinitas is taking as many as 100 of its own residents to court. The residents named in the suit are prominent backers of a local measure, Proposition A, that allows residents to veto new housing developments. Conflict arose because Encinitas is required by state law to submit a plan for approval to the state of California, identifying future possible housing development sites. In 2016 and 2018, voters rejected plans that would allow for new housing. Without a viable plan to submit to the state, Encinitas fell out of compliance. Costly lawsuits resulted as developers and low-income tenants filed lawsuits against the city for not complying with state law. A judge suspended Prop. A temporarily, but the reprieve will end in 2021 when cities are required to send new plans to the state. The city is turning to the courts to clarify the conflict between state and local law. In need of a defendant, city officials chose “Preserve Prop. A,” the group behind the measure’s conception and defense. “This isn’t a case of Encinitas ‘suing its citizens for damages,” Encinitas Mayor Catherine Blakespear told Voice of San Diego. “The reality is that we’re asking a judge to decide—as a matter of law—how we should proceed, and inviting both perspectives to officially weigh in.” Preserve Prop A’s attorney maintains that the lawsuit is unfairly scapegoating its residents and pointed to other cities that remain in compliance with similar measures in place. (See prior CP&DR coverage.)

A’s Offer to Buy Oakland Coliseum for Redevelopment

The Oakland A’s have proposed a deal to the City of Oakland, offering to either lease the Alameda County Coliseum site or buy the city’s half share for $85 million. In return, the city would drop a lawsuit to stop the sale. The proposal includes a six-month exclusive negotiating agreement and a laundry list of sweeteners—community benefits like affordable housing, labor-friendly contracts, local hiring provisions, apprenticeship programs, and anti-displacement housing preservation policies. The A’s additionally agreed to absorb operating costs of $15-20 million a year and to not pursue a relocation deal during negotiations. If the deal doesn’t go through, the city would retain half-ownership of the property with the option to buy back the A’s share if the deal with the county is successful. The next hearing is scheduled for Nov. 14.

Quick Hits & Updates 

The California Department of Housing and Community Development issued its final Community Development Block Grant (CDBG) guidelines. The program provides funding opportunities to local governments that do not participate in the CDBG entitlement program funded by the Department of Housing and Urban Development. State CBDG funds can be used to support activities like public services, economic development, housing assistance, public infrastructure and facilities, and planning. Notice of funding availability will be released January 2020.

A union-backed advocacy group sued the cities of Santa Ana and Garden Grove to to halt the sale of a 102-acre golf courses for commercial development. The Orange County Communities Organized for Responsible Development alleges the cities violated the Surplus Land Act when they issued requests for proposals to develop Willowick Golf Course. The Surplus Land Act requires the sale of public land to first be considered for affordable housing development. However, the city of Garden Grove claims that the law does not apply, because the site has been commercially operating and has never been deemed surplus by the city.

Following four years of study, the San Francisco Bay Conservation and Development Commission unanimously voted to protect from sea level rise by filling in portions of the bay. These infill projects are part of a larger strategy to create marshes and restore habitat that will serve as a buffer against rising sea levels. Recently, the California Ocean Protection Council estimated that the bay could rise between 12 and 80 inches by 2100, with the pace increasing after 2050. 

Following Governor Gavin Newsom’s executive order to divert highway funds toward rail projects, CalTrans issued a draft report dissolving highway expansion projects in Madera and Tulare counties. Local leaders claim that the transit-focused order doesn’t serve parts of the state that do not yet have rail projects underway. Local assembly members will lobby for full funding at an upcoming California Transportation Commission meeting.

Citing development pressures in anticipation of a future Gold Line rail extension, the San Dimas City Council unanimously approved an urgency ordinance setting a 45-day moratorium for building downtown. The ordinance, which affects three parcels downtown, will give the city time to set land use controls and consider the impact of potential commercial development near residential areas. The city has received several inquiries for development in the area, and the three parcels have existing land use permits for upholstery shops, sheet metal shops, and garment manufacturing.

The Rancho Cucamonga City Council approved a plan to annex 4,088 acres of unincorporated county land, including 1,200 acres of surplus land sold by the San Bernardino County Flood District, to add 3,000 homes to the area. The Specific Plan opverlays zoning and housing density formulas that include 790 acres for single-family homes with streets but no curbs or sideways, and two blocks for commercial shops. It creates five neighborhoods, 85 acres of parks, and 11 miles of trails. The plan also sets aside 3,603 acres for conservation.

The San Diego City Council unanimously approved a $1.9 billion plan to address homelessness in the region – but did not discuss potential funding. The plan calls for aligning resources and policies, focusing on needs and care, and coordinating systems that come in contact with homeless populations, like jails and service providers. It sets a goal to get half of the city’s unsheltered people off of the street within three years. The $1.9 billion cost would cover housing construction and rental assistance and services – including $960 million to build or rehabilitate 2,802 units that support formerly homeless people to remain housed. Currently, the city spends about $117 million on homelessness each year.

Following a delayed environmental review from the California Air Resources Board, Inglewood legislators say that a proposed Inglewood arena for the Los Angeles Clippers is at risk. The Clippers hope to have the Inglewood Basketball and Sports Center open by 2024, but it’s been under review for more than 270 days. By comparison, the Golden State Warriors gained approval in 63 days. Now state legislators are accusing CARB for racism over the delay, saying that the state agency unfairly fast-tracks projects in affluent areas.