Gov. Jerry Brown announced a $5.2 billion transportation package that would raise gas taxes and place a sliding charge linked to a vehicle’s value on drivers. The state is short an estimated $3.5 billion in annual maintenance and repair needs, on top of the $12 billion backlog according to the Legislative Analyst’s Office. Most of the funds raised would go to pay for state and local road maintenance and repairs, as well as public transit and goods-movement projects. The gas tax, the base excise tax of 18 cents—an amount dating back to 1994—would increase to 30 cents on November 1st. The deal also calls for the Legislature to place a constitutional amendment on the ballot in 2018 that would prohibit spending the new revenues on anything but transportation.
Environmental groups have come out against the governor’s proposal because of a provision that would give the trucking industry a break on future antipollution rules. Because of the increase in gas tax, the California Trucking Association won a provision that prevents clean-air agencies from imposing new pollution reduction requirements on existing trucks until the vehicles are 18 years old or have 800,000 miles. The Brown administration counters that the bill includes more than $8 billion in the first 10 years to improve the environment with expanded mass transit, bike and pedestrian facilities. The legislature has until April 6 to approve the package; it appears that the package will require support from every Democratic legislator.
Report Examines Relationship between Infill Development and Displacement
Researchers at UC Berkeley and UC Los Angeles released a report (pdf), “Developing a New Methodology for Analyzing Potential Displacement” that seeks to evaluate the potential negative social equity impacts that result from Senate Bill 375, which promotes infill. Senate Bill 375 caused more regions across the state to pursue compact, transit-oriented development (TOD) as a strategy to achieve GHG emission reductions through their sustainable communities strategy. The report examines the relationship between fixed-rail transit neighborhoods, TOD, and displacement in Los Angeles and the San Francisco Bay Area and the effectiveness of anti-displacement strategies. The results found that TOD can destabilize surrounding neighborhood as housing costs tend to increase, demographic composition of the area changes, and results in the loss of low-income households. This study shows a significant and positive correlation between TOD and gentrification, particularly in downtown areas and core cities.
Report Outlines Measures Needed to Significantly Reduce Greenhouse Gas Emissions
A report from the Southern California Association of Governments and UC Berkeley researchers entitled “Right Type, Right Place” found that to meet the new 2030 climate change goals, the state will need billions of dollars in new funding for housing and transportation improvements. Californians will need to cut their driving by 1.6 miles per day, which can be accomplished through telecommuting, carpooling, biking or taking public transit to work once a month. To make the drastic reductions in GHG emissions to 40 percent below 1990 levels by 2030, regional agencies need funds and ability to make policy changes that could include tolls and other charges for people driving in congested areas.
The UC Berkeley study found that residents living in already developed neighborhoods would drive about 18 fewer miles every weekday than those living outside the communities. This means San Francisco would increase density by 30 percent, for example, but smaller cities would need to grow as well. The report was commissioned by Next 10, with research conducted by the Terner Center for Housing Innovation and the Center for Law, Energy and the Environment at UC Berkeley. It calls for more building of new housing on infill properties, with more multi-family housing than the business-as-usual plan. The study says the “target” scenario would boost annual economic growth by more than $800 million over the business-as-usual approach and result in the equivalent of taking 378,000 cars off the road.
Los Angeles Considers Two Subway Extensions
The Los Angeles Metro Board of Directors approved voted to move forward with the “Link US” Union Station run-through tracks that are estimated to cost $2.75 billion. The project will add new loop tracks to extend Union Station’s existing stub-end tracks, leading to decreased delays and increased station capacity. This will also allow the station to be compatible with plans for high-speed rail. The board also initiated a possible extension of the Red Line subway south beneath Vermont Avenue to 125th Street in West Athens. The board reviewed preliminary plans for a rapid bus route. However, Mayor Garcetti suggested that a rapid bus system might not be ideal for the busy thoroughfare, and a Red Line extension south would be more viable. Metro staff will evaluate the subway option and report back to the board in July.
Raiders to Move to Las Vegas; Oakland May Sue
After years of negotiations and failed attempts to renovate – with minimum public funding – the Oakland Coliseum, NFL owners voted, 31-1, to allow the Raiders to move to Las Vegas. This will be the team’s third move in 35 years. The team will remain in the Coliseum for the next two seasons, and potentially a third. In Las Vegas there are plans to build a $1.9 billion stadium on 63-acre site near the Strip and the Raiders would need to agree to a 30-year lease with the Stadium Authority. The Raiders have secured a $650 million loan from Bank of America and plan to contribute $500 million from personal seat license sales, naming rights and a $200 million loan from the NFL through its stadium upgrade program. Raiders officials claim that a rent increase, to $3.5 million annually from $900,000 annually cemented their decision to move the team. Oakland Mayor Libby Schaaf said the city may consider legal action against the Raiders, founded on the idea that the team did not negotiate in good faith.
Climate Change Threatens Up To 67 Percent of S. California Beaches
A study from the U.S. Geological Survey predicts that, “with limited human intervention,” 31 to 67 percent of Southern California beaches could be completely eroded by 2100 with sea level rises of 3 to 6.5 feet. According to the study, complete erosion means the beaches would recede up to either cliffs or existing structures along the shore. While the sand and beaches are seen as summertime destinations for residents and tourists alike, the sand also serves as a protective barrier for the man-made structures onshore. The necessary steps to protect the beaches are “massive and costly” according to USGS geologist and study coauthor Patrick Barnard. These steps include increasing the rate sand is added to replenish existing beaches, which costs Malibu’s Broad Beach $31 million to add 2,000 truckloads.
State Loses Nearly 30,000 Affordable Rentals in Past 20 Years
The California Housing Partnership released its annual housing assessment (pdf) and found 28,152 affordable rental homes were lost in the state in the past 20 years, including 14,559 that had HUD Section 8 subsidies. These HUD-assisted affordable rental homes were lost between 1995 to 2016. Another 31,988 affordable rental homes are at risk of conversion over the next five years. These conversions occur when owners decide to opt out of their HUD rental assistance contracts. Many of the renters receiving Section 8-assisted housing, approximately 83 percent, are Extremely Low Income renters earning 30 percent or less of the Area Median Income and are also elderly and/or disabled. Los Angeles County lost the most rent-assisted homes, 3,882, with San Diego County second, 1,908 homes, Santa Clara with 1,623 and Sacramento County losing 1,480 rent assisted homes between 1995 to 2016.
Quick Hits & Updates
Assembly Speaker Anthony Rendon (D-Paramount) appointed Michael Flad of Burbank to the Strategic Growth Council. Flad is the City Manager of South Gate and has previously served in the same position at Burbank and as Assistant City Manager of Ukiah. Flad fills a seat on the council reserved for members of the public with a background in land use planning, local government, resource protection and management or community development or revitalization.
In a unanimous decision, the California Supreme Court ruled that Newport Beach officials failed to adequately review a large proposed development on the coastal Banning Ranch oil field before approving it. The justices decided that the city “suppressed” information about environmentally sensitive habitat on the property. The City Manager Dave Kiff defended the city’s review noting the EIR was more than 600 pages and contained a detailed analysis of issues involving wetlands, protected species and critical habitat. Spokesman for the companies involved, Sam Singer, said the ruling would delay the project for a year or two but would not kill it.
A 5.4-mile extension of BART’s East Bay line opened last week, extending to Warm Springs/ South Fremont. The BART station is located in the new Fremont Innovation District, which includes a plan to bring more than 20,000 jobs and 3,000 housing units. Construction on the extension started in 2009 and was supposed to open in 2014, but after a series of problems the opening date was pushed back. The extension came in at $790 million, almost $100 million under budget.
Only Los Angeles and Paris remain in the running for the 2024 summer Olympic Games; the other two finalists, Rome and Budapest, dropped out of the race because of concerns about cost overruns. A new report from the Legislative Analyst’s Office suggests that the city’s plan for a fiscally responsible event will keep the risks of major financial losses relatively low.
The Los Angeles City Planning Commission and the Board of Airport Commissioners approved a $5.5 billion plan designed to reduce auto traffic and congestion at LAX. The Landside Access Modernization Program includes construction of a Consolidated Rent-A-Car Center that will combine more than 20 car rental offices and a 2.25-mile Automated People Mover.
Responding to a study about the hazards of development near freeways, two Los Angeles council members are calling for the city to prepare “strategies to address the hazard of freeway pollution affecting residents of new and existing structures.” These strategies could include buffer zones and barriers, air filtration requirements, and regulations on building design. More than 1.2 million people in Southern California reportedly live within 500 feet of a freeway and suffer from higher rates of certain health problems.
Three weeks ago, voters in Redondo Beach voted to stop the $400 million redevelopment of the city’s waterfront and this week the project developers filed a lawsuit to block the measure from taking effect. Redondo WaterFront LLC, a subsidiary of CenterCal Properties, is hoping to invalidate the voter-approved Measure C, which passed with 57.1 percent of the votes. The lawsuit alleges the initiative was “illegal, unconstitutional and invalid” and therefore cannot be enforced.
The Los Angeles County Board of Supervisors voted unanimously, 5-0, to look into creating a legal defense program and providing financial assistance to help residents avoid eviction. This came a day after a report form research and analysis firm Axiometrics found Los Angeles County’s average rent was $2,271, up 2.5 percent form a year earlier. In Los Angeles County, 56,354 eviction actions were filed last year.
Los Angeles City Council is debating the size of “granny flats” that the city will permit. While councilmembers want to adopt the state’s maximum size of 1,200 square feet, others think the maximum should be halved for the city. A proposed ordinance codifies the 1,200 square foot maximum, bans the units from hillsides and includes moveable “tiny homes” that are typically less than 500 square feet.
A new report from rental site Abodo finds that 41.5 percent of LA metro millennials still live with their parents. This places LA fourth on a list of metro areas with millennials, age 18-34, living at home. Inland Empire ranked second, with 44.5 percent of millennials at home. The unemployment rate for millennials living at home is 8.7 percent in LA Metro area, which is significantly lower than the 10.1 percent national average.
