An initiative prohibiting residential development in a hillside area of Richmond created an impermissible inconsistency with the city’s general plan, an appellate court has ruled. Overturning a Superior Court ruling, however, the appellate court did not invalidate the initiative but said the city merely needs to amend the rest of the general plan to conform with the initiative. Since the City Council adopted the initiative without a vote in 2017, it is reasonable to assume that the city will now rewrite the general plan to conform to the initiative.

Google Provides More Details on Downtown San Jose Plan  Tech giant Google submitted its first proposal for a San Jose transit village, dubbed “Downtown West.” The proposed development at the 80-acre site near Diridon Station would create add a massive transit oriented development to the growing area near the tech headquarters. Plans include 6.5 million square feet of office space; up to 300 hotel rooms; 3,000 to 5,000 residential units; 300,000 to 500,000 square feet of commercial and active uses; event center space totaling 100,000 square feet; and up to 800 rooms for short-term Google employee visits. Diridon Station will grow in the coming years, too: in addition to its current Caltrain, Amtrak, ACE, and Capitol Corridor services, it expects to add a BART station and potentially a high-speed rail line. The project has generated mixed reactions from the community: many city council members celebrate the boon to the local economy and the construction of much-needed units. However, groups like Silicon Valley Rising have said that Google needs to do more to address the potential displacement of existing San Jose residents as local housing prices rise. Both the San Jose Planning Commission and the city council will conduct planning, environmental, and policy reviews, and vote on the proposal in late 2020. (See prior CP&DR coverage .) Environmentalists Seek Protection for Joshua Trees The Center for Biological Diversity will ask the California Fish and Game Commission to designate the western Joshua Tree as threatened under the Endangered Species Act – a designation that would curb development on thousands of acres of private desert property. The petition argues that populations of the species are “likely to become endangered in the foreseeable future,” without special protection and management. Warmer, drier conditions have been hurting the species, which can live for as long as 200 years. Recent studies show that Joshua trees have almost all stopped reproducing, and that the range of Joshua trees is contracting. In Joshua Tree National Park, an estimated 2.5 million Joshua trees will likely lose upward of 90 percent of their current range in coming decades if warmer, drier conditions continue. In 2015, the conservation group WildEarth Guardians similarly petitioned the U.S. Fish and Wildlife Service to list Joshua trees as threatened – and the service found the listing unwarranted. Conservation Director of the Center for Biological Diversity Brendan Cummings sees that rejection as a partisan result. “Given the failures of the federal government on climate change generally, and the Joshua Tree specifically,” he told the Los Angeles Times “action by California remains the best hope of saving this iconic species from extinction.” Developer Fees Impede Construction Statewide  High developer fees slow housing construction statewide, according to a new report released by the state Department of Housing and Community Development and the UC Berkeley Terner Center. The study was part of 2017 legislation that aims to identify how state lawmakers could cut fees on new homebuilding. Similarly, a 2018 U.C. Berkeley Terner Center Report found that in 2015, California’s local government fees on housing construction were nearly three times the national average. The most recent study finds that fees charged by developers statewide vary greatly per municipality, and can amount to as much as 18 percent of median home prices. However, the study also notes that local governments often depend upon these fees for infrastructure and services – in part because of property tax restrictions put in place by Proposition 13 in 1978. The study recommends that statewide legislators ask cities and counties to set standards for services and make their fees public. “At first glance, this study confirms what we have long suspected,” said Assemblyman Tim Grayson. “If we have any hope of lifting our communities out of this crisis, then our local fees must be aligned with our statewide production needs.” Ranking California Cities’ Transit Access  California metro areas top CityLab’s new public transportation ranking , with the San Francisco Bay Area coming in first, and the Los Angeles area landing at number ten. Notably, however, one California metro area got the second-worst ranking for public transportation: the Riverside-San Bernardino-Ontario area. The ranking is based on four variables: the share of households without access to their own vehicle, the share of commuters who take transit, the share of commuters who bike, and the share of commuters who walk. Data was pulled from the American Community Survey’s five-year estimates for 2017, covering all 382 of U.S. metropolitan areas. Though New York led on almost all metrics, it has a far smaller share of commuters who bike to work than most other cities. The ranking’s authors note that the top ten cities are much larger, denser, more expensive, and more congested, whereas the lowest-ranked metro areas are mainly younger, sprawling places in the Sunbelt. The authors also found that living in a car-free metro is positively correlated with the share of adults who are college graduates and the creative-class share of the workforce. Meanwhile, WalletHub ranked cities according to three key dimensions: accessibility and convenience, safety and reliability, and public transit resources. San Francisco nabbed the third-best spot for public transit, and Oakland and Los Angeles also came in high at 13th and 14th. California cities bottomed out the list as well: with Sacramento at 70th, Fresno at 79th, and Bakersfield at 87th. However, San Francisco’s number 3 rank doesn’t tell the full story: it ranked first in accessibility and convenience, indicating many people use transit, and that it’s often over capacity. But it ranked 80th in public transit resources, meaning it has fewer and older vehicles per mile traveled.  Quick Hits & Updates In a unanimous vote, the Los Angeles City Council approved an emergency moratorium on evictions as a stop gap measure before Assembly Bill 1482 takes effect on Jan. 1. The bill bans “no-fault” evictions and contains a provision that will cancel rent increases above the new limit 5% plus inflation rent cap, a measure Gov. Gavin Newsom signed into law Oct. 8. A wave of evictions in advance of the law alarmed tenant groups, prompting the emergency vote. The North San Fernando Valley Bus Rapid Transit project, which would provide bus service from North Hollywood to Chatsworth, was considered at by the L.A. Metro board recently. The board decided to move forward with preliminary BRT studies after hearing from more than 70 speakers. Comments reflected widespread institutional support from groups including area Neighborhood Councils, Cal State Northridge groups, area healthcare institutions, climate groups, and area commerce groups. Those opposed were largely unaffiliated with formal groups. County Supervisor Shiela Kuehl, Glendale Mayor Ara Najarian and Los Angeles Mayor Eric Garcetti were in attendance and spoke in support of the project. As part of his "Green New Deal" for the city, Los Angeles mayor Eric Garcetti appointed Rachel Malarich to the position of forest officer and mandated planting 90,000 new trees by the end of 2021. The project will grow what’s already the largest urban forest in the country. This project is part of the mayor’s effort to reduce greenhouse gas emissions by 50 percent by 2025. Other measures include a mandate for all new city-owned buildings to be all-electric and a goal to phase out styrofoam.  The Coastal Commission unanimously approved Southern California Edison’s plans to dismantle the San Onofre Nuclear Generating Station, where canisters loaded with nuclear waste are being moved from “Wet storage” to “dry storage”. The permit will allow Edison contractors to begin removing major structures at the facility. Edison officials said the complete dismantlement will take eight to 10 years. Community members have been pushing for the dismantling of the station, which has not produced electricity since 2012 but continues to hold nuclear waste. Los Angeles Metrolink released a report to the California High-Speed Rail Authority stating that it could double ridership, introduce zero-emission trains, and offer faster and more frequent trains – should it receive $9.4 billion in funding through 2028. These improvements to the rail lines from Burbank to Anaheim would be aimed at paving the way for the planned high-speed trains to eventually serve the corridor. The high-speed rail authority’s board will discuss the Metrolink report, as well as reports from the Central Valley and the Bay Area in Sacramento. The California Department of Housing and Community Development announced that it wants input on implementing the Prohousing Designation Program, and has made a framework paper and survey available. The program is intended to incentivize jurisdictions to adopt policies that accelerate housing production. Prohousing jurisdictions will also be awarded additional points and preference in programs like the Affordable Housing and Sustainable Communities, Transformative Climate Communities, and Infill Infrastructure Grant. The paper and survey seeks feedback on HCD’s approach to prohousing policies. A U.S. District Court judge dismissed Stanford University’s lawsuit against Santa Clara County’s affordable housing requirements. The county’s 2018 inclusionary housing ordinance requires that 16 percent of new market-rate housing units built on Stanford lands in unincorporated areas to be made affordable to low-income residents. The university sued, saying that the law was unconstitutional. However, the judge found that Stanford had not provided any basis to determine unconstitutionality.  The Coastal Commission rejected a staff recommendation to exempt a section of Pacific Beach from San Diego’s new zero-minimum parking policy. This new policy allows developments within “transit priority areas” t build only as many parking spots that they think are necessary – including none at all. The policy also requires developers to provide transportation facilities like bike parking or bus stops, and to unbundle rental costs for parking spots from housing. Staf claimed that this reduction would reduce beach access, and recommended exempting Beach Impact Areas – but the commission sided with the city.

CP&DR Vol. 34 No. 10 October 2019

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.

Throughout his first year in office, Gov. Gavin Newsom spoke urgently and ambitiously about the need to increase housing production in California — but he was largely noncommittal about his specific legislative priorities.

Appellate courts around the state have recently issued three land-use-related rulings involving the Coastal Commission – two from the San Diego area. In general, the courts have upheld the Coastal Commission’s actions, except for one condition on a project in Encinitas.

While tech giant Google proceeds with plans to reinvent downtown San Jose, the settlement of a lawsuit in adjacent Santa Clara has set the stage for the rise of not just one but two major urban centers in Silicon Valley. It’s an embarrassment of riches that, for some, cannot come quickly enough in a region where nearly every square foot of commercial and residential space is maxed out.

San Francisco Bans Cars on Market Street The San Francisco Municipal Transportation Agency unanimously approved a ban of vehicles on  Market Street – the busiest street in the city. The $604 million Better Market Street Project proposal transforms the street between Octavia Boulevard and the Embarcadero. The ban includes personal vehicles, Ubers and Lyfts, but Muni buses, emergency vehicles, paratransit, bikes, and taxis would still be able to ride down the street. Market Street will add full protected bike lanes, transit-only lanes, and pedestrian safety improvements.The plans work toward the city’s “Vision Zero” safety goals: pedestrian deaths are uncommonly high in San Francisco streets. It also works towards the city’s climate goals and adds public space to the city. The project has been gaining traction in recent months: city agencies, elected officials, and even Mayor London Breed have endorsed the plans. Pending approvals, construction for phase one could begin as soon as 2020, and be completed as soon as 2025. “A half million people walk on Market Street each day, yet it’s one of our city’s most dangerous streets for traffic crashes,” Jodie Medeiros, executive director of Walk San Francisco told SF Curbed. “The Better Market Street plan will finally change that." Inland Empire Gives Up on Light Rail Extension to L.A. Following through on last month’s threat to “throw in the towel,” the San Bernardino Transit Authority (SBTCA) axed a decades-in-the-making plan to extend the Metro Gold Line to Montclair in favor of a scaled-back Metrolink line. The agency said the revised plans would save taxpayers money, though the “Gold Link” trains would run less frequently and likely attract fewer riders. Days later, the Montcliar City Council shot back with a 22-page resolution in support of the Gold Line, claiming that the authority would violate state law if it failed to pursue its initial plans. The city has invested over $500 million in housing, retail, and office development around the expected Gold Line stop. Currently, the Gold Line Construction Authority is falling short in funding for multiple segments of its Los Angeles-to-Asuza line. The SBTCA has raised $80 million for its segment, but is still $17.4 million short. The Gold Link alternative will only cost $55 million, and the authority has recommended diverting unused funds to transit projects such as a rapid bus line. In its response, the city council outline several potential legal pushbacks to the about-face, including the approximately $40 million in earmarked Gold Line funds from the 2004 tax Measure I.  San Jose BART Extension Delayed to 2030 In yet another delay for the much-anticipated San Jose downtown BART extension, the project will not be completed until 2030. The project, which will add four stations to the San Jose area, was originally timeliness for 2026. However, BART officials say that environmental clearance got pushed back, and the single-tunnel redesign caused more delays. BART officials also say that the new estimate is tenuous, and won’t be reliable until design is past 10 percent and 30 percent complete. Meanwhile, it was recently announced that the 6.5-mile, four-station downtown extension will receive $125 million in federal grants. The Federal Transit Administration selected Valley Transportation Authority for a new “Expedited Project Delivery Pilot Program" to fast-track funding for major transportation projects. When the project is complete it will carry 52,000 riders each weekday and reduce 27 million miles of car travel. This boon comes just weeks after Google released the first details of its downtown redevelopment plans for San Jose, including a mega transit-oriented village around the forthcoming station. (See prior CP&DR coverage here and  here .) Report Estimates 650,000 Homes at Risk of Wildfires Nearly 650,000 California homes are at “high” or “extreme” wildfire risk, according to an analysis from data consultancy CoreLogic. CoreLogic ran a study of the 11 most at-risk states in the contiguous United States for wildfire. Its top four most at-risk metro areas were all in California: Los Angeles, Riverside, San Diego, and Sacramento. According to their report, these cities stand to lose $71 billion, $41 billion, $36 billion, and $26 billion, respectively, in property damage. In fact, nine of their fifteen top-ranked cities were in California, adding San Francisco, Truckee, Oxnard, Redding, and Salinas to the list. In total, CoreLogic says that 405,715 California residences are at high wildfire risk, and 240,580 are at extreme risk. Los Angeles Considers Strengthened Rent Control In advance of a new state rent cap law taking effect in January, Los Angeles City Council members are pushing for emergency interim provisions against evictions and large rent increases. Governor Gavin Newsom recently signed AB 1482, which limits annual rent increases to five percent plus inflation for the next decade. It also prevents tenants from being evicted without documented lease violations once they’ve lived in an apartment for a year. However, landlords can still evict tenants without cause until January 1. In response, Los Angeles city council members introduced emergency stopgap measures that effectively carry the future law into the present: one that prevents no-fault evictions until January, and another that would limit rent increases to what is allowable when the cap takes effect.“We think this is very, very urgent to prevent thousands of people literally becoming homeless in the next couple months,” council member Rene Christian Moya told the Los Angeles City Council, according to the Los Angeles Times. Quick Hits & Updates The San Francisco Giants released plans for the remake of a 5-acre parking lot into a “constructed ecosystem” waterfront park with tide pools and a bayside lawn. The site will combat the effects of sea level rise on the park, by raising the site 5 feet and installing several landscaped hillocks. This public space is just the first effort of the long-delayed 28-acre Mission Rock mixed-use project, which will add two office buildings and two residential towers to an area that includes the shoreline and Pier 48. The plans are still awaiting a final sign-off from the San Francisco Bay Conservation and Development Commission and the Port of San Francisco. The nation’s first licensed cannabis consumption lounge and restaurant recently opened in West Hollywood. Notably, the law still prohibits Lowell Cafe from serving food infused its own food with cannabis. But the cafe is also a dispensary for cannabis products, and patrons will receive separate checks for food and cannabis products. Patrons are encouraged to consume their separately-purchased cannabis while enjoying dishes designed to complement cannabis. (See prior CP&DR coverage here and  here .) The American Hockey League announced an extension of its franchise to the city of Palm Springs. The league’s 32nd team, an affiliate of an expansion NHL team in Seattle, will play at a new $250 million arena planned at the Caliente Indian Reservation in downtown Plam Springs, expected to break ground in early 2020, and will open in fall 2021. Many Palm Springs residents have criticized the plans, citing traffic and parking concerns in the downtown area. California schools should accommodate affordable housing, according to a recent policy brief from the UCLA Ziman Center for Real Estate. The brief, authored by CityLab-UCLA Director Dana Cuff, notes that a single-use zoning mentality has excluded schools as potential housing sites. However, her research has found that the real estate of the 10,668 public schools statewide is ample and in need of a revitalization. And she notes that when land costs comprise 10-15 percent of total development cost for affordable housing, building on public land vastly increases the state’s options. Cuff writes that such affordable housing could serve teachers, staff, and students alike. The Sacramento Bee announced a new partnership with the Sacramento Tree Foundation to improve the long-term health of the city’s tree canopy. In a recent article, the publication noted that the canopy is crucial to mitigate local greenhouse gas emissions and protect the area from summer heat. It also outlined the various threats to Sacramento’s trees from climate change, sprawl, invasive species, and an aging tree stock. Through the partnership, the Bee will publish a series on the canopy, will cover local tree planning events, and offer a special digital subscription with a donation to the Tree Foundation. Facing a federal deadline, San Francisco’s first potential Opportunity Zone development might be delayed due to significant community opposition. The Opportunity Zone program, part of President Trump’s 2017 tax overhaul, allows investors to get a 10 percent reduction in capital gains tax if they’re invested in low-income neighborhoods. The plan to build nearly 200 homes on Ocean Avenue in the Excelsior District would be funded from that tax break – needs local approval to qualify for the program. However, advocacy groups like Communities United for Health and Justice organized against the development, arguing that the new homes are not intended to meet the needs of the community, and would displace current residents. (See prior CP&DR coverage .) The San Jose City Council narrowly voted to extend incentives for downtown housing developers to encourage development through 2023. The incentives, including waivers on affordable housing impact fees, are intended to incentivize new building in an ever-more-expensive market. Critics of the measure argued that the model has been enacted since 2007, it has yet to produce sufficient affordable housing. The package also includes a 50 percent-off discount on park impact fees and primary construction taxes, and delays payment of those fees until tenants are in place. Downtown developers also get a break on a $17-per-square-foot affordable housing impact fee. The cities of Gustine and Encinitas are the latest cities to come into compliance with the state Housing Element law since Governor Gavin Newsom met with mayors in February, according to a press release from the California Department of Housing and Community Development. Gustine completed rezoning sites to allow for greater density, as well as a streamlined review on developments that create a minimum of 20 percent of units to low income families. Encinitas came into compliance by gaining Coastal Commission approval their Local Coastal Plan amendment, by encouraging affordable development within the Coastal Zone. These are the 10th and 11th cities to come into compliance this year. A federal appeals court unanimously upheld Santa Monica’s ban on most short-term vacation rentals. The city’s 2015 law prohibited rentals shorter than 30 days on the grounds that it “disturbed the residential character” of the area. A resident sued the city, saying the law was unconstitutional because it denied outsiders’ access to Santa Monica’s neighborhoods. However, the ninth circuit panel of judges rejected the appeal.

Over the past three years, housing policy in California has undergone a wholesale transformation – with a potentially profound impact on local planning processes. As this year’s legislative season comes to an end – highlighted by Gov. Gavin Newsom’s dramatic signing of 18 housing bills – it’s worth sizing up what the changes since 2017 add up to.

State Emissions Goals May Prove Too Ambitious California will likely miss its emissions reductions goals for the next decade, in part due to unprecedented carbon dioxide emissions from the 2018 wildfire seasons. According to the recently-released California Green iNnovation Index , transportation is the main culprit: the state would have to reduce emissions from cars and factories by an average of 4.5 percent every year to meet the SB32 goal to reduce emission to 40 percent below 1990 levels by 2030. Thus far, California has been reducing emissions by an average of about 1.15 percent per year. If nothing changes, the report notes, California won’t meet its 2030 goals until 2061 and won’t meet its 2050 target for at least 100 years. Wildfires aren’t helping these numbers: according to a report prepared by Beacon Economics and the Next 10 think tank, the 2018 wildfires produced more than nine times more emissions than were reduced in 2017. And 2018 wildfire “emissions” outranked the state’s commercial, residential, or agricultural emissions – though they still fell behind transportation, industry, or electricity. Additionally, these blazes threaten California forests as carbon “sinks” that absorb human emissions.  Newsom Names First State Land Housing Site In his first designation under the Excess Land for Affordable Housing executive order, Governor Gavin Newsom proposed an affordable housing on state-owned land in Stockton. Since Newsom’s January order, the Department of General Services and the Department of Housing and Community Development have been working with local jurisdictions to identify potentially suitable state-owned sites for housing. The state selected two sites in Stockton, both within the city’s Miner Avenue Complete Street Project, a rehabilitation and beautification project. The development will provide over 100 units with a 50 percent affordable minimum. Preference will be given to deeper affordability and additional affordable units. Under the program, developers will receive a long-term ground lease from the state and will build, own, and manage the housing they develop. RFPs will be due in November, and developers will be selected in January 2020. Newsom also announced that he is working with the city of Sacramento on a housing development, and will issue a Request for Proposal soon. “We have to use every tool in our toolbox to deliver more affordable housing for low-income and middle class Californians,” said Governor Newsom in a statement. “Sacramento and Stockton’s leadership will set the example for other local governments to follow.” Caltrain Considers Ways to Triple Ridership In a bid to ease congestion on Peninsula freeways, the Caltrain Board adopted a plan to offer more frequent trips to the Peninsula. The plan calls for for as many as eight trips per hour io each direction between San Jose and San Francisco, as well as express short-ride trains every fifteen minutes., and more frequent service further south to Gilroy. Caltrain expects the increased frequency would nearly triple its daily ridership from, 65,000 passengers to 180,000 by 2040. However, it’s still not clear how the massive service transformation will be funded. Caltrain estimates that the operating costs would increase from $135 million in 2018 to $370 million in 2040. Caltrain says that much of this would be covered from increased fare revenue, but that it would still fall $66 million short each year. Additionally,y it would need to upgrade infrastructure to support the changes. One option for funding may come from the Faster Bay Area mega-mesaure, a one-cent sales tax that would raise $100 million over four decades. Voters will consider this measure in November 2020. Housing Costs, Politics Prompt Half of Californians to Consider Relocating Over half of Californians have recently considered leaving the state, according to a U.C. Berkeley Institute of Governmental Studies poll . The poll found that 52 percent of the 4,527 registered California voters surveyed had given either serious (24 percent) or some (28 percent) thought to leaving. Those surveyed cited the high cost of housing (71 percent), high taxes (58 percent), and the state’s political culture (46 percent) as the top reasons to leave. The poll found only modest differences in responses between regions and most demographics – except across a political divide. Conservatives and Republicans are three times as likely as Democrats and liberals to be giving “serious consideration” to leaving the state. Conservatives and republicans are also far more likely to list the state’s political culture as a reason to leave than Democrats or liberals, and twice as likely to mention high taxes. Additionally, the trend of voter opinions of California as a place to live has steadily grown less positive since the poll began in 1967 – with only a small positive uptick in perception of California in the past three years. Here, again, partisanship shaped those responses: Democrats were nearly three times as likely as Republicans and conservatives to describe California as one of the best places to live. SANDAG Reaches Agreement on Rail, Highway Funding Striking a compromise that included some highway funding, the board of the San Diego Association of Governments approved a nearly $600 million transportation spending blueprint. The bill will add new lanes to state Routes 67 and 78, and make improvements to Route 52. But it will also include resources for SANDAG's primary vision: to start design a high-speed rail system. Finding new funding pathways to achieve this vision has become more urgent since SANDAG released data showing that the agency’s current Transnet sale tax – passed in 2004 to fund highway projects – will bring in about $10 billion less than 2050 than originally anticipated. But SANDAG’s bid to introduce a new sales tax to fund rail systems without making good on highway promises has faced strong opposition. Still, SANDAG Executive Director Hasan Ikhrata warns that the region won’t meet its state-mandated emissions reduction targets without scrapping major highway projects, and prioritizing transit. “I think this will put the agency in legal jeopardy,” he told the San Diego Union-Tribune. “I will guarantee you that if we build these projects…this will increase vehicle miles traveled and greenhouse gasses." Sacramento Inching Toward Deal to Bring MLS to Railyards Stadium Following months of negotiations, Sacramento representatives and Major League Soccer may be finalizing a deal to bring a team to the city in 2022, according to reporting from the Sacramento Bee. For months, Sacramento has been competing with St. Louis to land an MLS franchise. Los Angeles billionaire Ron Burkle, partner Matt Alvarez, and a local businessman Kevin Nagle head the group that hopes to replace the city’s current lower-tier Republic FC team with the MLS franchise team – also to be called Republic FC. The city agreed to $33 million of assistance on permit fees, infrastructure construction and signage rights value, and approved a contingency purchase deal for MLS to build a $250 million stadium on 31 acres within the city’s Railyards mega-development, adjacent to downtown. But negotiations reportedly hit roadblocks, and St. Louis was awarded a franchise deal three weeks ago. If the current deal is finalized, Sacramento will be the 29th team to join the league. Mayor Darrell Steinberg recently tweeted, “While the deal is not finalized, we are working hard and I’ve never been more confident that we will bring .” Quick Hits & Updates In the latest escalation in the dispute between Oakland and Alameda County over the potential sale of the Oakland Coliseum to the Oakland A’s for redevelopment, Major League Baseball commissioner Rob Manfred  warned that the A’s would move to Las Vegas if Oakland didn’t drop its suit. Alameda County and the city of Oakland currently co-own the Coliseum property. Recently, Alameda County began the process of selling its share to the baseball team. Oakland sued , citing the Surplus Land Act, which requires 90 days of “good faith” negotiation to affordable developers before selling land. A judge issued a temporary restraining order against the county, halting the sale. Sonoma County officials are consolidating approval of about four dozen higher density housing projects under a single review process. By rezoning certain parcels and merging environmental reviews into a single study, the county hopes save a year of review and add at least 500 separate dwellings to private land just outside the city. The county’s website reported that the total housing possible from these developments could be as many as 3,000 dwellings, which would get the city significantly closer to its current demand of 16,000 affordable rental homes. This move may also help push for rezoning for greater density in the county’s forthcoming general plan updates. The City of Anaheim declined to release its appraisal of the Angels' stadium until negotiations are complete, despite calls from the public and some councilmemebers to release it. The most recent appraisal of the site was in 2014, valuing the stadium land between $225 and $325 million. Critics say that keeping the appraisal secret forces councilmembers and the public to accept terms of a negotiation without full information. The California Department of Housing and Community Development awarded more than $4.9 million in SB 2 planning grants to 16 California cities and counties. SB 2, the Building Homes and Jobs Act passed in 2017, gives grants for projects such as updating local planning documents, updating zoning ordinances, conducting environmental analyses, or for local improvements to expedite planning and permitting. Awardees include the city of Livermore, Los Angeles County, Merced, Santa Monica, and others. San Francisco International Airport announced a $587 million plan to install 10 miles of sea wall around the 4,171 acre airport site. This comes amid research showing at least one foot of sea level rise in the coming 30 years and at least three feet by 2100, raising concerns of flooded runways and buildings. A 2011 report from the San Francisco Bay Conservation Development Commission showed that 72 percent of SFO would suffer if sea level increased by as little as 16 inches. The seawall will project the terminals until at least the year 2085 for a sea level rise of up to 36 inches.  The Coastal Commission says that a new homeless encampment in San Clemente may need a coastal development permit to move forward. The San Clemente City Council built a campsite at a city-owned maintenance yard via an emergency ordinance in May. The ordinance required all of the city’s homeless to move to the site. Now, commission representatives are expressing concerns about rainstorm runoff from the site’s port-a-potties to bodies of water, including the San Clemente pier. The commission will investigate for violations of the state’s Coastal Act.  The U.S. Department of the Interior will transfer over 500 acres of San Diego county federal lands to the army to erect 70 miles of border wall. The land is currently part of the 18,500 protected acres of the Otay Mountain Wilderness. The agreement between the Army and the Trump Administrations gives the Army three years to build in this area. If completed, it will be the first newly built section of border wall in San Diego County in this administration. After nearly a decade of negotiations, the Save the Redwoods League struck a deal to buy Alder Creek Grove from the world’s largest private forest holders. The Rouch family owned the giant sequoia-studded land for seven generations, and largely protected the trees. The 583-acre grove has 483 giant sequoias with diameters of at least 6 feet, including the world’s fifth-biggest 3,000-year-old Stagg tree. However, the league has been recently shifting its focus from coast redwoods to giant sequoias along the central Sierra – and this purchase represents nearly half of all privately-owned giant sequoia sites. As part of a countywide incentives program to increase affordable housing, San Diego County is offering free pre-approved housing plans for accessory dwelling units for housing owners. On its website, the county posted two permit-ready floor plans sized at 600 and 1,200 square feet, and said it would post more in the coming weeks. Earlier this year, the county also waived $15,000 in permit and development fees for so-called granny flats. According to the county, there’s space for roughly 172,000 homes on existing lots in the area to house low-income, older, and veteran populations.

Oakland Sues to Block Sale of Stadium Land to A's A Superior Court judge issued a temporary order to block Alameda County’s Coliseum land sale to the Oakland A’s, after the city of Oakland sued the county over the sale. The A’s proposed tearing down and redeveloping the RingCentral Coliseum site, on top of their plans for a new ballpark at the Howard Terminal site. In April, Alameda County moved forward with the sale its 50 percent share of the 155-acre site for $85 million. Oakland owns the other half of the property. And the Oakland City Council has since contended that the county’s sale is in violation of California’s Surplus Land Act, a state law that requires publicly owned surplus lands to be considered for affordable housing, and for owners to negotiate “in good faith,” with affordable housing developers for 90 days before the lands are sold or leased. County officials say they have been in discussions with the city to sell their half of the site to the city since 2015, but that the city has failed to reach a deal. Oakland mayor Libby Schaff objects to the city council’s lawsuit, and hopes to reach a deal with the county without going to court. “It is so easy to put a lawsuit on pause while we try and resolve things diplomatically,” she said. “And I think that is in the best interest of taxpayers. Governments should be working together and not against each other." Vallco Mall Developer Sues Cupertino  In the latest back-and-forth before the November ruling over Cupertino’s Vallco Mall redevelopment plan, the plan’s developer has sued the city. The city and the developer Sand Hill have been engaged in a months-long skirmish over the planned development, which was approved through state law SB 35 that requires streamlined approval of certain developments that meet affordable requirements. Plans includes 2402 apartment units, 400,000 square feet of retail and 1.8 million square feet of office space. Since its approval, the city council has attempted to block the plan, and recently approved a general plan amendment from the site that eliminated the office space and imposed a 60-foot height limit took a step to block the company from including more office space in its plans. In response, Sand Hill filed a lawsuit against the city alleging that this approach would render affordable units infeasible – resulting in a potential loss of “tens or hundreds of millions of dollars”. In August, the state got involved: with a letter warning the city that they could violate state law if housing fails to materialize at Vallco. Last week, the city released nine-page memo of a study by Hausrath Economics that shows that at least two scenarios for housing projects that are financially feasible. Until the November hearing, Sand Hill has been moving forward with construction: they have demolished several sites on the West side of the mall. (See prior CP&DR coverage .) Caltrans Issues Concerning Climate Change Reports for S. California Districts  The California Department of Transportation updated its climate change vulnerability reports for three major districts, examining how extreme weather will impact transportation infrastructure like roads and bridges. The areas included in the September update are District 7, Los Angeles and Ventura counties; District 8, Riverside and San Bernardino counties; and District 11, San Diego and Imperial counties. In District 7, CalTrans noted that District 7’s high population and dense highway infrastructure will create particular vulnerabilities to temperature rise, sea level rise and storm surge, heavy rain events, and wildfire. Its district resiliency plan includes raising and realigning roadways to prevent highway inundation from sea level rise and coastal erosion, as well as keeping landscaping “fire-safe” with high-moisture plants. In District 8, key vulnerabilities focus on roadways though wilderness areas susceptible to wildfire and sudden extreme storm events. Risk mitigation plans include reinforcing bridges for sudden storm events, and fire-proofing CalTrans facilities, and considering high temperatures for CalTrans worker schedules. District 11 was considered one of the most vulnerabile areas in the state: with areas threatened by future erosion, sea level rise, wildfire, extreme heat, and sudden storms. The resiliency plan includes long-term pavement heat protection, flood mitigation, fire mitigation, and erosion control. Feds Back Down from Proposed Delta Water Plan  Following pushback from the California Department of Fish and Wildlife , the federal Bureau of Reclamation walked back its plans to push more water through the Delta to Central Valley communities. The Trump administration has been trying to increase water deliveries to the Valley throughout its term, and had planned to deliver on the promise this fall. However, the state department of Fish and Wildlife protested, citing harmful impacts on endangered fish species, including the Chinook salmon. The Delta provides much of the north-to-south delivery of water, and is often caught in the crosshairs of water agency battles between the Central Valley and Southern California. And, despite this temporary allowance, the Trump administration is still moving forward with sweeping plans to ease environmental restrictions and pump more water south long-term. “It really wasn’t in their best interest to go to war with the state on this one,” Jeffrey Mount, water policy expert at the Public Policy Institute of California told the Sacramento Bee. “Sometimes, strategic retreat is a good thing.” Bay Area Leaders Detail $100 Billion Transportation Bond Measure  Bay Area transportation leaders are planning a massive $100 billion tax measure that would fund projects like a second bay crossing and low-income fare discounts. The combined efforts of the Bay Area Council, the Silicon Valley Leadership Group, and the urban planning think tank Spur are devising the mega-measure, called Faster Bay Area. Backers of the bill describe broad goals, such as better integration of the region’s transit systems and major rail and freeway infrastructure improvements. But the second bay crossing is among its foremost projects. The list of projects involved has not been finalized, but several key works will be included, including the much-discussed second rail line across the San Francisco Bay. The current single-tunnel BART line from the East Bay into San Francisco runs overcapacity. Plans for a second line, either a second tunnel or a bridge line, would also include Caltrain and Amtrak capability. The measure is planned to be put to voters in November 2020.  Quick Hits & Updates  The Los Angeles County Board of Supervisors unanimously approved the county's first-ever sustainability plan. The OurCounty plan sets ambitious targets for a more sustainable city: including entirely phasing out fossil fuels, maintaining the biodiversity of native species, and deriving 80 percent of the county’s water from local sources. According to UCLA-led research, transitioning Los Angeles County to local water is not only possible, but cost effective: storm water collection infrastructure could meet up to one-third of the county’s water needs. The comprehensive plan also links environmental sustainability with economic sustainability, focusing on equity for disadvantaged communities. Oakland-based landscape architect and U.C. Berkeley professor Walter Hood was named one of this year’s 26 MacArthur “genius” grant recipients. Hood, 61, is the founder of Hood Design Studio, and is known for the Bayview Opera House, landscaping the gardens at the de Young Museum in LA, and the upcoming plan to transform the Oakland Museum of California’s roof into a public art center. Hood primarily works within the public urban environments, and is currently also planning a park atop Yerba Buena Island and a public art piece for the Embarcadero fire station in San Francisco. In the second such investigation for the California High Speed Rail Authority , California bullet train board member Ernest Camacho is under investigation for a potential conflict of interest. In a letter earlier this month, Assemblyman Jim Patterson (R-Fresno) alleged that Camacho’s financial disclosures form indicates that his firm, Pacifica Services, has contracts with firms that the rail authority hired to perform major work. This investigation from the Fair Political Practices Commission follows an investigation earlier this summer of Roy Hill, top executive of the project, which resulted in Hill’s suspension in June. Camacho, the first project board member with significant engineering, construction, and project delivery background, objects to the investigation. He notes that he has no contract with the High-Speed Rail Authority, and that his work with both firms has long since passed. Approval of an affordable housing project in Cambria will go before the Coastal Commission after pushback against the development for its water demands. Cambria has suffered from years of water shortage, and the city’s water is partially sourced by the brackish water treatment service, the Sustainable Water Project. Objections to the 32 units of the Cambria Pines Apartment project, which was approved by the San Luis Obispo County Planning Commission in April. claim that there isn’t enough water to support the new development. The Coastal Commission will conduct a full review of the development before it can proceed. The Los Angeles Metro staff is studying the possibility of delivering the West Santa Ana light rail line in phases. As part of the project’s in-progress environmental impact report, Metro Board’s Planning and programming Comittee is studying two interim operating segments in addition to the full 19-mile corridor lining Artesia to Downtown Los Angeles. The first segment would run from the line’s Pioneer Boulevard southern terminus in Artesia to the proposed Green Line connection at the I-105 median. The second segment would extend service north to the Blue Line connection at Slauson Avenue. These interim segments could begin running by 2028. The full line would not reach completion until 2041. The Emeryville City Council called for an ordinance to end parking requirements for all new buildings to discourage car use in the area. Emeryville currently requires developers to include the equivalent of at least 67 parking spaces per 100 housing units, or .67 spaces per 1,000 square feet of commercial space. If the ordinance is approved, the city will next consider expanding bike-share programs and adding more stops to its free shuttle service. A new San Francisco subway may extend to the west side. The Board of Supervisors  approved a $960,000 study of a new tunnel project between West Portal and Parkmerced, and south to the Ingleside neighborhood. These plans anticipate thousands of new housing units built in the coming years in these neighborhoods, with a projected increase of about 20,000 new residents in the next decade. These areas are already seeing increased demand for transit options and capacity, according to local supervisors. Despite its initial rejection of e-scooters, San Francisco has allowed up to 10,000 scooters to operate in the city as part of its attempt to reduce car driving within the city. The San Francisco Municipal Transportation Authority authorized Lime, Jump (owned by Uber), Scoot (owned by Bird), and Spin (owned by Ford) for permits beginning October 15. Each will initially offer up to 1,000 scooters, but can increase that to 2,500 over 12 months through a performance incentive system. This comes after a largely successful limited pilot program after the scooters received pushback citywide for the dangers of unregulated speeds and sidewalk traffic. (See prior CP&DR coverage .)  Los Angeles workers are increasingly quitting their jobs due to long commute times, according to a recent survey from the carpool app Scoop. The national survey assessed 7,000 commuters in 16 major metropolitan areas, asking about their commute time, and job perspective, including intent to stay and job application decisions. The survey found that Los Angeles had the highest intent to quit due to commute time of any region. It also found that commuting causes personal stress every day for 33 percent of L.A. commuters.

Critics often claim that the California Environmental Quality Act sometimes does little more than allow project opponents to re-litigate the project approval process in court. In a case involving a proposed Walmart expansion in Chico, the Third District Court of Appeal agreed that this is what the Walmart project opponents were doing and rejected their appeal. Chico approved an expansion to an existing Walmart in 2015, the purpose of which would primary be to add groceries to the store. A group called Chico Advocates for a Responsible Economy (CARE) sued, claiming that the urban decay analysis in the environmental impact report was defective and also the statement of overriding considerations was inadequate. The project called for a 64,000-square-foot expansion of an existing 131,000-square-foot Wal-Mart on Highway 99 in Chico, effectively converting the store into a Super Walmart that sells groceries. The Walmart is situated in close proximity to many other retail stores, including a FoodMaxx store less than a mile away. FoodMaxx employees are unionized and represented by United Food and Commercial Workers, which often opposes Walmart expansions via CEQA challenges. In 2009, Chico had rejected a 100,000-square-foot Walmart expansion on the same site, saying that it could not adopt statements of overriding considering concluding that the project’s benefits outweigh its significant and unavoidable impacts. The EIR found that the Walmart expansion could reduce sales in nearby stores by a few percent, a “neglible” figure that did would not create serious urban decay and therefore did not constitute a significant impact under CEQA. In its lawsuit, CARE took exception to several specific aspects of the urban decay analysis, including: Using storewide sales per square foot rather than a specific grocery-related sales per square foot assumption. Underestimating the impact on Chico by assuming that Paradise residents will use the store rather than stores in their own community. Assuming the impact will be spread among all stores in the area rather than focused on FoodMaxx, the closest store. “The identified “flaws” with the EIR’s methodology amount to nothing more than differences of opinion about how the Project’s expected grocery sales should be estimated, how the Project’s market area should be defined, and which competitors are most susceptible to impacts from the Project,” the court wrote, adding: “The choice of one approach over the other does not render the City’s EIR unreliable.” In addition, the court concluded: “Although the loss of close and convenient shopping could impact some Chico residents psychologically and socially, such impacts are not, by themselves, environmental impacts.” CARE also argued that the city should not have approved a statement of overriding consideration in 2015 after having determined in 2009 that it could not do so. But the court disagreed, noting that the 2009 decision was on a different project Said the court: “CARE’s argument is tantamount to a policy disagreement about whether the benefits of this Project outweigh its costs.” The Case: Chico Advocates for a Responsible Economy v. City of Chico , No. C087142 (filed September 5, 2019, certified for partial publication, October 3, 2019.) The Lawyers: For Chico Advocates for a Responsible Economy: Brett S. Jolley, Shore, McKinley, Conger & Jolley, bjolley@smcslaw.com For City of Chico: Stephen T. Owens, Alvarez-Glasman & Colvin, sowens@agclawfirm.com For Walmart: Arthur J. Friedman, Sheppard, Mullin, Richter & Hampton, afriedman@sheppardmullin.com