Search Results

Reversing an appellate court decision, the California Supreme Court ruled Monday that a “delisting petition” may move forward in an effort to de-list a species under the California Endangered Species Act, even if the petition does not contain any new information that emerged after the original listing of the species. “ o provision of CESA directly establishes that the Commission may not base a decision to delist on new evidence showing that the listed species does not qualify for listing,” wrote Justice Ming Chin for a unanimous court. In particular, Chin noted, Section 2077, subd. (a) of the Fish & Game Code requires the Department of Fish 7 Wildlife to review the status of endangered species every five years and states: “Notwithstanding any other provision of this section, the ommission or the epartment may review a species at any time based upon a petition or upon other data available to the epartment and the ommission.” The opinion is a victory for the lumber industry, which is trying to de-list the coho salmon in certain parts of California. The case arose from an attempt by the Central Coast Forestry Association and Big Creek Lumber Company to de-list the coho salmon, but only in areas south of San Francisco. (the coho salmon is also listed in areas north of San Francisco.) The Third District Court of Appeal ruled the other way on the issue, concluding that a provision contained in the ESA’s implementing regulations require that a delisting petition be “directed to events that occur after the listing of the species.” The case emerged from the Fish & Game Commission’s 1995 decision to list the coho salmon south of San Francisco as endangered. After the Commission found the coho salmon north of San Francisco to be endangered seven years later, the Central Coast Forestry Association and Big Creek began challenging the 1995 decision on several fronts, one of which was that “a petition to delist a species may not be employed to challenge a final determination of the Commission.” The commission’s decisions were initially challenged by the California Forestry Association, which lost its case in 2007. ( California Forestry Assn. v. California Fish & Game Commission (2007) 156 Cal.App.4th 1535.) Central Coast and Big Creek filed a separate lawsuit claiming that the listing of the coho salmon south of San Francisco violated the ESA’s requirement that endangered species be indigenous. The plaintiffs claimed that the coho was not native to streams south of San Francisco. After lengthy proceedings in front of the Fish & Game Commission and in court, Sacramento County Superior Court Judge Gail D. Ohanesian ruled that the Commission “has authority and discretion to decline to provide CESA protection to coho populations south of San Francisco if they did not have a historical presence there and if their current presence is not the result of natural expansion of their range.” On appeal, the Third District Court of Appeal ruled that administrative mandamus was the only means available to review a final decision on listing by the Fish & Game Commission and that a delisting petition could only be used to address the status of a species at the time the delisting petition was filed – not to challenge a final ruling from the past. The Supreme Court reversed. Noting that the appellate court’s ruling was based primarily on a regulation, not the actual statute, the court concluded that the Fish & Game Code provides three ways for a species to be delisted: First, “an interested person may petition the omission to . . . remove a species from” the list of endangered species (§ 2071); Second, “ he epartment may, in the absence of a petition from an interested party, recommend to the ommission that it . . . remove a species from” the list (§ 2072.7); and Third, “ he epartment shall review species listed as an endangered species . . . every five years to determine if the conditions that led to the original listing are still present” (§ 2077, subd. (a)). The court noted that the third code provision permits the Fish & Game Commission to rely on a petition or any available data in considering the five-year review. The Court of Appeal relied on Fish & Game Regulation 670.1, which says that de-listing is warranted “if the Commission determines that its continued existence is no longer threatened ” – implicitly suggesting that de-listing can occur only if conditions have changed since the original commission decision. “We do not agree with the Court of Appeal that this provision’s use of the phrase “no longer threatened” was intended to preclude delisting where new evidence shows that the species never qualified as endangered, and to permit consideration only of ‘events that occur after the listing of the species,” Chin wrote for the court. In light of the considerations discussed above — the Act’s language, structure, and legislative history — the language of the regulation cannot carry the weight the Court of Appeal gave it.” The Case: Central Coast Forest Association v. Fish & Game Commission, No. S208181 (February 27, 2017) The Lawyers: Tara L. Mueller, Deputy Attorney General, tara.mueller@doj.ca.gov James Buchal, Murphy & Buchal, jbuchal@mbllp.com

Recently appointed Transportation Secretary Elaine Chao has ordered a stop payment on the $647 million grant for electrification of the Caltrain right of way in the Bay Area until a full audit is done on high-speed rail. The move essentially kills the electrification process for the foreseeable future as contracts were set to be issued March 1. The current Caltrain system runs on diesel and is costly to operate and slow. Officials had seen electrification as a way to increase ridership and save money on operating costs. Caltrain has already spent $150 million on the project but needs the federal funding to move forward. Electrification of Caltrain is also a crucial component of the state’s planned high speed rail system, which will share the Caltrain right of way from San Jose to San Francisco. Withholding of these funds is seen as a significant blow to that project.  Developer Proposes Thousands of Units, Soccer Stadium for Qualcomm Site A La Jolla-based investment group, FS Investors, presented the most detailed proposal yet for the redevelopment of the Qualcomm Stadium site to the city. The proposal includes a new river park, commercial development, and a Major League Soccer stadium. Additionally there would be 480 units of on-site affordable housing, 800 units of on-site student housing, and 3,520 units of market rate residential. The group has also planned for $50 million worth of mitigation to balance the traffic impact. The $1 billion redevelopment, dubbed “SoccerCity” would either include an MLS stadium with seats for 22,000 or a combined San Diego State Univ. football and soccer stadium with up to 40,000 seats. FS Investors would set aside 15 acres for an NFL stadium to be built in the next five years if another city’s team wants to relocate and replace the Chargers. The plan will be presented to the City Council soon. Developers will ask to fast-track the process, rather than refer the initiative to voters, in time to meet MLS deadlines for granting new franchises this year. Meanwhile, San Diego developer Doug Manchester has contacted the NFL expressing a desire to build a privately financed 70,000-seat NFL stadium at the Qualcomm Stadium site. Tahoe Regional Transportation Plan Seeks to Reduce Car Use The Tahoe Regional Planning Agency released the draft 2017 Regional Transportation Plan/ Sustainable Communities Strategy, calling it “ Linking Tahoe ” (pdf). The plan addresses congestion and environmentally friendly alternatives to the current car-centric approach. TRPA wants to prioritize spending on bicycling, walking and transit in the coming decades to allow more seamless around-the-lake bus service. New initiatives considered under the plan include a $44 million water taxi between north and south shores, $74 million to realign Highway 50 through South Lake Tahoe and Stateline, and $44 million to improve car, bicycle, and pedestrian travel through Fanny Bridge area of Tahoe City. The goal is to have free transit throughout the lake Tahoe Basin, with service every 30 minutes, by 2021. Area officials estimate Tahoe will have access to $2 billion in federal, state and local transportation funds over the next quarter century. Former Palm Springs Mayor Ensnared in Development Scandal Former Palm Springs Mayor Steve Pougnet has been accused of accepting bribes of $375,000 from two developers whose projects he promoted. The three men were charged with a combined 30 felony counts of corruption, including bribes, conflict of interest, perjury, and conspiracy to commit bribery. Ex Mayor Steve Pougnet served for eight years and stepped down in 2015. Pougnet could face up to 19 years in state prison, while the two developers each face up to12 years. The money was sent from the developers through Union Abbey or Mitchell-Brix Design group, the first company having very little corporate footprint. Many of the major developments in downtown Palm Springs must now be untangled and evaluated. These projects are worth between $500 million and $1 billion and include the revitalization of downtown and the new Dakota Community. The projects that have been approved by the city and will move forward are Kimpton Hotel, Virgin Hotel, Block A, B, and C, and downtown park. Proposal for Linkage Fee Advances in Los Angeles The City of Los Angeles Planning Commission voted unanimously to support a plan to make real estate developers pay a linkage fee to generate funds for affordable housing. The fee is estimated to generate $75-$92 million per year that would fund construction of new units, and rehabilitation and maintenance existing housing. In 2014, the Southern California Association of Nonprofit Housing found Los Angeles County was short 490,340 affordable housing units. Other cities in California including San Francisco, Oakland, and San Diego impose linkage fees to spur new development of lower-income housing. LA’s fees would apply to both residential and commercial developments, although exception such as small mixed-use projects and single-family homes exist. Developers in city of LA would have to pay $5 per square foot of commercials pace and $12 for residential. Draft Guidelines Issued for Agricultural Lands Program The Strategic Growth Council (SGC) and the Department of Conservation (DOC) released draft program guidelines for the third round of funding for the Sustainable Agricultural Lands Conservation Program (SALCP). Part of the SALCP funds easement on agricultural lands at risk of sprawl and rural ranch development, as well as funding for local governments adopting land use policies that protect at risk agricultural lands. The funding levels for SALCP are not yet decided, as a portion is dependent on auction fares from the cap-and-trade auction. Public comments on guidelines are due March 17 and DOC will host a workshop on March 2. The SGC will meet on April 11 th in Sacramento to discuss SALCP program guidelines and funding levels for 2017. LAO Evaluates Brown’s Transportation Funding Package The Legislative Analysts Office released a report  Transportation Funding Package, which addresses several transportation system challenges the state faces. They include aging highways, aging local roads and transit systems, increased traffic congestion, increased demand for transportation alternatives, and increased goods movement, and realizes that there will be a lack of funding. The governor’s proposed Transportation Funding Package for 2017-18 is estimated to generate an annual average increase in transportation funding of $4.2 billion over the next ten years. The funds would come from a mix of sources including a new $65 vehicle registration tax, increases to gasoline and diesel excise taxes, cap-and-trade auction revenues, and the early repayment of certain transportation loans. S.F. Makes Peace with ‘Google Buses’ The San Francisco Municipal Transportation Agency directors voted unanimously to adopt a permanent plan to accommodate  corporate shuttles in the city. These tech-industry private buses, most notoriously those run by Google, are praised for taking cars off the streets, but are also represent gentrification in the changing city. The approved plan allows shuttles to use a maximum of 125 bus stops, some shared with Muni, in exchange for a $7.31 fee charged every time they stop to pick up or drop off passengers. The new policy also restricts larger buses to wider streets and requires operators to phase in newer, less-polluting vehicles, provide tracking data to MTA, and avoid labor disputes. MTA Director Joel Ramos noted that the program gives the city control in exchange for use of Muni stops and city curb space. Tribe Granted Sovereignty, Moves Ahead with Casino in Elk Grove The Wilton Rancheria Native American tribe has been granted sovereignty by the federal government, clearing the way for the tribe to build a casino on recently purchased land in Elk Grove. The U.S. Department of the Interior considers the property sovereign tribal ground for the Wilton Rancheria tribe. The 36-acre parcel was part of the 100-acre plot that was planned to be an outlet mall but wanted a larger casino to drive traffic to the area. The tribe may now build its casino along Highway 99 without city approval. Boyd Gaming, which runs 24 casinos in seven states, financed the $36 million land purchase and will pay for the development. The tribe will repay its partner with profits from the casino’s operations as well as $132 million over 20 years to the city for infrastructure, police, schools and nonprofits. The grand opening of the casino is scheduled in three to five years. Quick Hits & Updates Democratic Assemblyman Miguel Santiago has drafted AB 943, which would increase the threshold from a simple majority to a two-thirds supermajority for passage of any local ballot measure that would block or delay development. Santiago says the legislation would help address the housing supply issue in the state. More than two-thirds of coastal communities in the state have adopted growth-limiting measures such as caps on population or height limits on buildings. The Orange County Transportation Authority has begun a study to  analyze  12 transit options along the Central Harbor Boulevard Transit Corridor. The study will look at bringing a streetcar or more effective rapid bus system to a section of Harbor Boulevard that runs through Garden Grove, Anaheim, and Fullerton. The San Francisco Planning Commission voted to lower a proposed five-story, 28-unit condo development by 5 feet to prevent a bar’s backyard from losing sunlight. The commission also directed the developer to make the building’s rooftop parapet transparent, to further reduce the shadow it casts on Zeitgeist bar. This vote was significant because CEQA only requires cities to analyze shadows cast on public spaces. Oakland DOT’s Progress Report: Telegraph Avenue Complete Streets shows huge benefits from the project, which was implemented last year. The report cites zero pedestrian crosswalk collisions and 40 percent reduction in collisions along the corridor. The redesign included parking-protected bike lanes. There has been a 78 percent increase in people biking and 100 percent increasing in walking along the corridor. Advocacy group Fix The City is suing the City of Los Angeles over approval of a Frank Gehry-designed development on Sunset Bl. The group claims to have found decades-old covenant on the property that limited development on the site to no more than 45 feet. City Council had allowed a portion of the residential and retail project to reach 178 feet. Costa Mesa Councilwoman Sandra Genis plans to ask the City Council to remove a newly reappointed planning commissioner Chair Stephan Andranian. In January, the City Council voted to dismiss all commissions and appointed new members in early February with a 5-0 vote. Genis now claims she market her nomination forms incorrectly, and Andranian should not have made it onto the commission and instead Teresa Callo Drain would be appointed. Angels owner Arte Moreno told reporters that he’s committed to remaining at Anaheim Stadium through 2029 and he would continue investing in improvements. This year, the club spent $1.5 million on installing new lights. Other improvements would be paint, concession stands, bathrooms, and new players. Inrix, a transportation analytics firm, ranked Los Angeles as the most congested city in the world with a driver spending 104 hours per year during pea travel periods last year. Moscow was second at 91 hours, New York City next with 89 and San Francisco was fourth. The authors of the study find the stable U.S. economy, urbanization of big cities, employment growth and low gas prices have led to increased traffic and congestion worldwide. The 2017 Rudy Bruner Award for Urban Excellence has announced  five finalists for the $50,000 award. La Kretz Innovation Campus + Arts District Park in Los Angeles is one of the finalists for a demonstration facility promoting clean technologies and the city’s green economy. The RBA prize seeks to recognize “transformative places that positively impact the economic, environmental, and social make-up of American cities.” A report released by the City of Santa Monica shows the city has struggled to meet its affordable housing quota for the third year in a row. Of the 175 brand new apartments for rent in 2016, only 34 were below market-rate or 19 percent. Proposition R requires 30 percent of all new multi-family housing go to middle or low-income households.

When Snap Inc., the parent company of Snapchat, issues its first round of public stock in two weeks, it will likely raise between $19 billion and $22 billion. That valuation will make it the most valuable tech company in Southern California and one of the most valuable of all L.A.-based companies. Many of its 1,900 employees will make fortunes overnight.  One senior vice president of engineering stands to make $110 million. That’s enough to cover rent for 10,000 or so of Los Angeles’ working-class residents for a year.  Of course, Snap money probably won’t be going into rent. As the New York Times reports , Snap’s millionaires-to-be are going to have long wish lists of things to buy. Near the top of those lists will be real estate.  Back when Snapchat was just a sketchy platform for kids to send, um, silly photos to each other, the fledgling company operated out of a cottage in Venice Beach. As it grew into a social media juggernaut, it didn't follow convention by renting space in a high rise or building a mega-campus in the suburbs. Instead, it colonized its own neighborhood, expanding  from cottage to cottage, scooping up small office spaces, and oozing its way through Venice.  Venice Beach is regarded almost universally as “funky.” By Los Angeles standards, Venice has history in spades, with its share of hippies, beach people, drifters, and artists. They fit in well with the early-20th century bungalows and brick. The rise of Snap and its brethren in the so-called Silicon Beach scene has led to a miniature culture war as ambitious millennials have displaced old-timers, forced longstanding businesses to close, and gleefully disrupted the neighborhood.  (In that sense, Snap occupies far different territory than does its counterparts in Silicon Valley. While tech money has driven cost of living in Mountain View, Palo Alto, and Cupertino to insane levels, there’s more history on one block in Venice than in an entire zip code on the Peninsula.) Despite all pressure to the contrary, coastal cities and neighborhoods have refused to add housing. Los Angeles has done so in places, but housing supply on the Westside is growing at rates somewhere between 0 and negative-22 billion percent. Home prices are already bonkers. We can only imagine what will happen when the Snap folks get real money in their bank accounts. Real estate agents are salivating. Many longtime Venice locals are terrified.  There at least one demographic group in the Los Angeles area that's even more terrified . Not necessarily of Snap — though Snap doesn’t help.  On the very same day that the New York Times reported on Snap’s impending riches, President Donald Trump announced his intention to fulfill his promise to aggressively deport undocumented immigrants. Let’s estimate the impact of this lunacy on California. Some 2.7 million undocumented immigrants call California home — by far the largest such population in the nation. More than 800,000 live in Los Angeles County alone.  A perverse notion occurs to me as I consider Trump’s vile solution to a nonexistent problem . If it succeeds, 800,000 people in Los Angeles County could disappear like so many Snap messages. That’s 800,000 lost workers. 800,000 lost customers. 800,000 lost mothers, fathers, siblings and friends. 800,000 lost taxpayers. It’s also 800,000 bedrooms that will open up.  From a purely numerical standpoint, Trump’s crusade could put a serious dent in housing costs. After all, demand for rental housing would go down. The thought gives me chills. I don’t want to say any more about it other than that deportation is — to say the least — the most perverse way to solve a housing crisis.  Fortunately, Californians are leading the charge to protect their undocumented neighbors. Indeed, many of us hope marginalized people from around the country will  join us , even if we’re short on space. Even so, we should be making space. We should be solving the housing crisis the old-fashioned way and the humane way: by building ourselves out of it.  This convergence of wealth, poverty, xenophobia, and exclusivity is no mere coincidence. See, these issues — immigration, housing, gentrification, Trump — are intertwined. Economic booms like that of the past seven years naturally come with echoes of desperation. Blue-collar workers in the Heartland want to protect their jobs from immigrants. Wealthy homeowners at the beach want to protect their property values from competition. The Snap IPO completes the process of turning Venice into a superstar neighborhood in a superstar city – which, as Richard Florida describes in The New Urban Crisis , is marked by inequality, unaffordability, segregation, and economic dysfunction. It’s also marked, I’d argue, by political apathy. Hillary won got 71 percent of the vote in California. The president didn’t break double digits in some Venice precincts . I bet you can count on two hands the number of those 1,900 employees who voted for Trump.  And yet, I’d also wager that scarcely more than ten Snap employees plan on voting in the March 7 Los Angeles election. That’s the one with the Neighborhood Integrity Initiative on the ballot. It’s a slow-growth initiative that, critics contend, could cripple the city’s ability to approve new housing. If that critique is true, then young professionals should vote for it like the second coming of Barack Obama. But they probably won’t.  Last year Santa Monica, which the northern quarter of Silicon Beach, was considering a slow-growth measure. Back then, I wrote how the young professionals of Silicon Beach were, as far as I could tell, disengaged from local politics — even though they stood to suffer mightily from further restrictions on housing development in a market already tighter than a noose.  Essentially, the tech crowd has tolerated high rents while hoping that their ships would come in rather than agitate for the type of development and planning policies hat would have benefited not only them but also many of their less wealthy, less flashy neighbors. Now that Snap is going full steam ahead, that’s 1,900 more people who can blithely let the other 10 million of us in L.A. County to fight over the scraps. Or 9.2 million of us, depending how bleak things get.  So, we have two opposing forces. Deportation could lower housing costs A massive influx of cash may raise housing costs. Clearly Snapchat is doing something right. Good for them. But the other half of that equation threatens to morally bankrupt all of us. Of course, formerly apathetic citizens are resisting, mobilizing, and donating in record numbers. I'm sure Silicon Beachers are too. And I hope some of them will hold off on an extra bedroom or a Wolf range and instead make some timely donations. America can right itself, and California -- with its energy, innovation, and, yes, wealth -- can lead the way.  For now, in this tale of one city, it is both the best of times and the worst of times.

Despite its rocky start, the Trump Administration seems likely to weaken – and perhaps muddy – federal clean water rules, which could give farmers in California more leeway and put more pressure on state environmental laws to regulate wetlands and water discharges.

The U.S. House of Representatives voted to overturn the Bureau of Land Management’s “Planning 2.0” rule, which took effect in December. The rule governs all planning for future uses of 250 million acres of federal public land, primarily in western U.S. The House lawmakers also voted to eliminate the federal methane rule that requires oil and gas companies using public lands to control air pollution. Both measures now move to the Senate, and if approved the rules would be eliminated and the BLM banned indefinitely form developing similar rules. The BLM rules would increase public involvement and incorporate more current data and technology to decide whether and where to drill, mine, and log on public land. The rollback could affect up to 15 million acres of land in California, or 14 percent of the state’s landmass.  Los Angeles General Plan Amendments Approved in 90 Percent of Cases A Los Angeles Times analysis found that of nearly 1,000 cases of general plan amendments to accommodate individual projects since 2000 — sometimes known as “spot zoning” —  about 90 percent of general plan amendments, zoning or height district changes heard before the Planning Commission have been approved. Critics, such as those promoting the Measure S ballot measure, contend that this practice has led to an erosion of the role of zoning regulations as an accurate guide of the city’s development. City officials and developers argue the exceptions are essential to increasing housing supply and to working with outdating zoning codes. The Times review found when planning commissioners raised objections to some projects, developers included more affordable housing or other conditions to receive approval. The Times did not analyze projects that may have been proposed but withdrawn from consideration when developers realized that they would not receive Planning Commission support.  Ainsworth Named Permanent Coastal Commission Director Jack Ainsworth has been selected as executive director of the California Coastal Commission. Ainsworth has served as acting executive director since last February and has worked at the commission for nearly 30 years. The Commission voted unanimously for Ainsworth. He has received positive feedback from leaders across the state and will be able to guide the agency if it ends up battling the Trump administration, especially over offshore drilling. Environmental groups had been critical of the commission and strongly opposed the departure of former executive director Charles Lester . A nationwide search was conducted for the position with over 1,000 individuals contacted. Chan Zuckerberg Foundation to Support Housing Initiatives in Bay Area The Chan Zuckerberg Initiative, established by Facebook founder Mark Zuckerberg and his wife Dr. Priscilla Chan, is  giving $3.1 million to Community Legal Services in East Palo Alto to support programs to counter the eviction and displacement of families. The grant will allow the group to hire five more full-time lawyers, adding to the current 16 full-time attorneys, five of which are devoted to housing. The foundation is also donating $500,000 to the Terner Center for Housing Innovation at UC Berkeley to help generate long-range solutions to the region’s housing predicament. Tech companies such as Facebook have been accused of exacerbating the housing affordability crisis in the Bay Area. (See prior CP&DR coverage .)  Santa Monica Considers Strict Seismic Retrofit Ordinance  The City of Santa Monica is considering an ordinance that would require as many as 2,000-earthquake-vulnerable buildings to be retrofitted. It would likely be the most intensive such seismic retrofit law in the nation. While neighboring Los Angeles requires wood and concrete buildings to be retrofitted, Santa Monica will also require steel-framed structures. While these are less likely to collapse in an earthquake, past earthquakes have shown that these buildings are still vulnerable to irreparable damage. Mayor Ted Winterer does not want to take those changes and said: “We are very committed here in Santa Monica to make sure that we are resilient in the face of possible catastrophe.” The northern half of the city is located along the Santa Monica fault. The city has released its list of possibly vulnerable buildings. Long Beach Plan Promotes Cycling, Walking Long Beach City Council unanimously voted to approve updates to its pedestrian and bicycle master plans. The plan is called: Communities of Excellence in Nutrition, Physical Activity and Obesity Prevention Pedestrian Plan (Cx3) and focuses on low-income neighborhoods. The Cx3 study area includes ten neighborhoods in Central and West Long Beach that lack strong pedestrian connections and are primarily served by private cars. The update to the bicycle master plan will continue to connect its bike paths to make them more continuous and inviting to users. Quick Hits & Updates The California Coastal Commission voted , 9-1, against the proposed Banning Ranch development in Newport Beach last September. Last week the commission confirmed its reasons for denying the project. While this move was largely procedural, it formalized the panel’s reasoning for rejecting the large development. The commission is concerned that he development does not comply with environmental laws that protect the area’s species and habitats. In 2016, Los Angeles Metro saw a 9 percent drop in bus ridership with the opening of the Gold and Expo rail extensions. Metro found 25 million fewer rides systemwide last year compared to 2015, a 6 percent drop. One explanation for the nationwide trend of dropping ridership is that riders are walking, biking or using ride-sharing apps instead of buses. As well, an improved economy means that commuters can afford their own vehicles.  A report by the California Legislative Analyst’s Office suggests that the state extend the Cap-and-Trade program calling it the most cost-effective way for the state to fight climate change. The program is facing a lawsuit challenging its legitimacy as businesses argue the program is a tax and therefore requires two-thirds vote and not a simple majority. Democrats suggested they would support the extension if more funding and benefits reached lower-income communities that often have much more air quality. The LAO suggests getting two-thirds votes to ensure legitimacy of the program. The Irvine Company has dropped a lawsuit against supporters of the 25-story Museum House condominium project in Newport Beach. The company accused the supporters of circulating petition on its shopping center properties without permission. The lawsuit was filed in December and was a restraining order against developer Related California from going onto Irvine Company properties for anything other than commercial activities. The City of San Diego hopes to open a center to temporarily house hundreds of homeless people while helping them find permanent housing within the next few years. The city plans to spend $12.5 million in Community Development Block Grant funding for the center. The city has put out a Request for Statement of Qualifications. San Francisco Mayor Ed Lee signed legislation to authorize the phased redevelopment of the Potrero Terrace and Annex and Sunnydale public housing sites, both part of the city’s HOPE SF initiative. The communities will be mixed-income, affordable to more than 3,000 low-income and middle-class families, and developed according to non-displacement principles in the Mayor’s HOPE SF initiative. HOPE SF initiative is the nation’s first large-scale public housing transformation and reparations effort aimed at creating healthy mixed-income communities without mass displacement. The California High Speed Rail Authority has received authorization from the State Public Works Board to purchase two parcels in Los Angeles along the Hollywood Freeway in Downtown LA. The entire Union Station project is estimated to cost $2.75 billion, according to LA Metro. Six aviation interest groups asked a federal appeals court to review a recent agreement between the City of Santa Monica and the FAA to shorten the runway immediately and close the facility by 2028. As Ed Bolen, business association’s president and CEO told the LA Times:“Santa Monica's airport is a vital asset to our aviation system, both locally as well as nationally, and serves as a critical transportation lifeline for the entire Los Angeles Basin.” The Mojave Desert Land Trust announced it would donate more than 3,000 acres of desert land to the Mojave National Preserve. The Trust has been buying private land that survived within the boundaries of the Mojave National Preserve, Joshua Tree National Park, and Death Valley National Park. Over the past decade, the Trust has donated more than 23,000 acres of land to the National Park Service. LA Mayor Eric Garcetti has called out backers of the Measure S ballot measure for using his image in a campaign message. Mayor Garcetti called the move a “dirty trick” and is strongly opposed to the measure that would restrict city lawmakers ability to approve changes to the General Plan. A ruling by Contra Costa County Superior Court Judge Judith Craddick will allow the City of Richmond’s new rent control law to remain in effect. The California Apartment Association, which represents landlords, requested a permanent injunction to overturn the “unconstitutional” voter-approved law. The injunction was denied on the grounds that the association could not prove that its members would suffer “irreparable harm” if rent control remained in effect pending a hearing on the merits of the case. California Treasurer John Chiang is exploring a ballot measure committee suggesting he plans to tie his campaign to a long-planned yet unspecified initiative on affordable housing. Creating more affordable housing, will resonate with vote-rich cities like Los Angeles, San Francisco, and San Diego. Chiang’s campaign said: “While California has recovered from the great recession, there are millions of Californians who are still economically dislocated and not within reach of the opportunities enjoyed by past generations of Californians.” Los Angeles Metro is reviewing a technical study for a proposed bus rapid transit line that would link the Red, Purple, Expo and Green Lines via Vermont Avenue. The 12.4-mile proposed system operates the second busiest bus corridor in the Metro network with 45,000 daily boardings between two lines. Four concepts are currently being considered for the project.

The San Francisco Board of Supervisors approved  an ordinance to encourage developers to establish Transportation Demand Management (TDM) programs in many new projects citywide. The program  would require developments to provide on-site amenities that support sustainable modes of transportation and reduce single-occupancy driving trips associated with new development. The program would apply to residential developments with more than 10 units, 10,000 square feet of commercial, and projects with 25,000 square feet of changes of use. This will encourage more sustainable transportation options, help manage congestion, reduce risks to pedestrians and cyclists, and improve overall efficiency of transportation network. The system works with points which can be collected from providing car-sharing service (six points), bicycles for residents (one point), or set up a shuttle service to the closest train or bus station (14 points). For instance if a developer wants to include 20 free parking spots 13 points are required under the new TDM regime. Los Angeles to Accelerate Community Plan Updates The Los Angeles City Council voted , 12-0, to draft an ordinance to accelerate the city’s notoriously slow planning process. One of the new rules will require the Department of City Planning to update its 35 community plans every six year. Some plans haven’t been updated in more than 15 years. Updating the plans will cost around $10 million annually and bring each document up to date by 2024. Another rule would be the allocation of necessary funds to allow the Planning Department to fulfill the obligation. Proposed by Councilmember Jose Huizar, the ordinance comes partially in response to Measure S, on the March 7 ballot, which would force the city to update community plans and impose a multitude of other restrictions on the planning process. (See prior CP&DR coverage.) $800 Million Infrastructure Financing District Approved in San Diego The San Diego City Council unanimously approved  the creation of an enhanced infrastructure financing district in Otay Mesa, a largely undeveloped area along the international border. The district would generate nearly $800 million in estimated property tax increment over the next 45 years for infrastructure projects that would accelerate economic development and job growth in Otay. The projects would include primarily freeway onramps, road widening, other transportation upgrades, but also fire stations, parks, and municipal swimming pools. Similar to redevelopment agencies, enhanced infrastructure financing districts allow a defined geographical area to keep increases in property tax that take place during the decades after the district is formed. This may be the largest EIFD to-date; the tool was created by the legislature in 2015. Los Angeles Releases Vision Zero Plan The Los Angeles Department of Transportation  announced  the release of the city’s first Vision Zero Action Plan ( pdf ). The plan outlines the city’s blueprint for reducing pedestrian fatalities by 20 percent by end of 2017, and eliminating traffic deaths by 2025. The plan calls out 40 priority corridors that will be focused on in 2017 to achieve the goal of 20 percent reduction. The Action Plan is organized around the following key outcomes: “to emphasize the importance of working together to achieve Vision Zero goals: Create Safe Streets for All, Develop a Culture of Safety, Adopt New Policies and Legislation to Strengthen Safety and Respond to Relevant Data” according to the LADOT press release. However, in 2016 data shows increased fatalities across all road user categories, with pedestrians rising the highest. The plan is related to the city’s Mobility Plan, which was adopted last year. (See prior CP&DR coverage .) State Republicans Question Funding for Caltrain, High Speed Rail All 14 California Republicans in Congress have signed  a letter to new Transportation Secretary Elaine Chao calling for the $647 million electrification of the Caltrain system to be put on hold until a full audit is done on the state’s High Speed Rail project. Caltrain says if federal funding is delayed, it could mean having to rebid the work already contracted out. California Democrats wrote  their own letter asking for the grant to be approved, arguing that the Republicans letter misstated the fact that the rail authority and not Caltrain joint powers board sought the grant. The move is seen mainly as a swipe at High Speed Rail, which Republicans have long criticized. Lawsuit Filed against S.F.’s Geary Bl. Bus Rapid Transit A group of residents in San Francisco, San Franciscans for Sensible Transit, have filed a lawsuit  in San Francisco Superior Court to stop Muni’s bus rapid-transit project on Geary Bl. Muni plans to develop 1.7 miles of dedicated bus lanes in the median through the Richmond District. The lawsuit says the Board of Supervisors failed to follow proper processes in approving environmental studies in an effort to rush the start of the project. The group argues the project will diminish the quality of life for Richmond District residents by removing trees, reducing parking, and replacing the median with bus lanes. The project is expected to cost $300 million and be completed in 2021. Developer to Fund ‘Transgender District’ in Tenderloin A San Francisco developer has agreed  to a batch of conditions that will create what is considered the first ever “transgender district” in the country. Developer Group I has agreed to pay $300,000 into a fund to establish a transgender community center, to create a transgender historic and cultural district, and to support transgender-serving businesses and nonprofits in the Tenderloin neighborhood. LGBTQ activists argued the Group I hadn’t completely analyzed the historic role the block played in the city’s LGBTQ history when it proposed a 242 condominium units and 232 hotel rooms. Supervisor Jane Kim will introduce legislation to formally create transgender historic district, Compton Cafeteria Historic District, named after the 1966 riot at Gene Compton’s Cafeteria. The two-day riot was considered the first major transgender protest in the U.S. Hunters Point Redevelopment Delayed by Faked Soil Tests Contractors tasked with cleaning up the Hunters Point Naval Shipyard property in San Francisco have admitted  to faking soil tests, which will delay the transfer of some parcels for development. FivePoint Communities is developing the shipyard into a mixed-use neighborhood with more than 12,000 units, millions of square feet of office space, and hundreds of acres of parklands. Concern over the accuracy of the soil tests were first noticed in October 2012 when results were inconsistent with previous samples in the same area. The Navy and EPA officials thought the problems had been resolved, but last year a former Tetra Tech employee revealed the soil misrepresentations were more widespread than previously assumed. The discovery of contaminated soil triggers the need for further time-consuming remediation. SCG Updates Transformative Climate Communities Draft Guidelines The Strategic Growth Council (SGC) has released updated “Revised Draft Scoping Guidelines for the Transformative Climate Communities Program” ( pdf ). Assembly Bill 2722 established the Transformative Climate Communities Program which implements and develops neighborhood-level climate community plans that include multiple, coordinated GHG emissions reduction projects that provide local economic, environmental, and health benefits to disadvantaged communities. Applicants must select six strategies to achieve the goals that support the program objectives. SGC is hosting public workshops on this document in the cities of Fresno, Los Angeles and San Bernardino and will also accept additional public comments until March 13, 2017. SGC plans to release the full Guidelines for the Program in late April of 2017. Quick Hits & Updates California officials have proposed  a list of $100 billion in projects for possible federal funding to help rebuild the state’s infrastructure. The list of 51 priority projects includes roads, levees, bridges, ports, train and public transit systems, water storage and recycling projects, and energy, military, veterans and emergency operations facilities and services. Although there are currently feuds between President Trump and California Democrats over issues including immigration, state officials have been encouraged about his pledge to put $1 trillion into infrastructure projects nationwide. The Strategic Growth Council has opened the public comment period for the Draft 2016-2017 Guidelines for the Sustainable Agricultural Land Conservation Program (SALC) is now available. This is in anticipation of the release of cap-and-trade auction revenues allocated to protecting California’s farmlands and reducing GHG emissions. The Elk Grove City Council voted, 4-0, to repeal  an ordinance from October that allowed Howard Hughes Corp. to sell 35 acres to the Wilton Rancheria Indian tribe for a casino. The decision eliminated the need for a costly voter referendum. The 35 acres were part of the 100 acres that was to be part of a shopping mall at the south edge of the city. Hughes Corp. argued that the casino was needed to drive traffic to the mall. The City of Oceanside is considering  a development incentive overlay for two miles of Coast Highway. The zoning overlay maps out areas for mixed-use nodes, pedestrian-friendly commercial villages, and streets for cars. This will promote revitalization and enhancement of the highway. The Oakland Planning Commission approved  a 402-unit residential tower next to BART’s MacArthur Station in North Oakland. The project was praised for its proximity to transit stops and the affordable housing units. Those opposed to the project criticize the low number of affordable units (only 45), and the height and density variances it received. The Southern California Association of Governments approved  more than $4.5 million in funding for 26 transportation and sustainability projects in Los Angeles County. These projects are among 54 throughout Southern California that were approved by the Regional Council of SCAG. These projects include Go Human Bike-Friendly Business Program in Baldwin park, El Monte and South El Monte, Vision Zero work, South El Monte Open Streets, and Active Transport/Safe Routes to Schools in Commerce to name a few. Long Beach’s “Destination Uptown” project received $250,000. Southern California Association of Governments Regional Council approved  more than $1.45 million in funding for eight active transportation and sustainability projects in San Bernardino County. The projects included pedestrian and bicycle safety improvements, climate actions plans, and integrated land-use initiatives. The Redlands Rail accessibility Plan received $200,000 and the Safe Routes to Schools program $316,373. Los Angeles Metro is moving forward with plans for a two-pronged extension  of the Gold Line’s Eastside branch. The extension would run from Atlantic Station towards the cities of El Monte and Whittier. The first leg of the extension would be constructed between 2035 and 2057, although the Metro Board hasn’t selected with route will come first. Interim Sacramento City Manager Howard Chan has been named  permanent city manager three months after he began a temporary contract. Mayor Steinberg told the Sacramento Bee: “He’s a partner and he’s respected, and our chemistry and early work together has been really good and positive.” He succeeds John Shirey, who had previously been the head of the California Redevelopment Association.

San Francisco’s Greenbelt Alliance released At Risk: The Bay Area Greenbelt , which found that 293,100 acres of farmland and natural spaces are eligible for development in the next few decades. The report predicts that much of this development could be inefficient sprawl development. Of those lands, 63,500 acres—99 square miles—are at high risk, meaning they face development within the next 10 years. Contra Costa County has the most vulnerable land to potential development, with Santa Clara County close behind. The goals of the reports are not to halt development, but instead persuade local governments to approve responsible and sustainable development in urban areas. These studies look at city and county plans, zoning, and development proposals across the region. The risks to losing these greenbelt lands include loss of region’s farmland and ranch land that contribute to a $6.1 billion agricultural economy, lands that catch and filter rain to be stored as groundwater, and loss of forests and wetlands as carbon sinks. The previous At Risk report came out in 2012; that report estimated the number of acres of open space under threat was 29,700 acres greater than this year’s number. Three California Freeways Have ‘No Future,’ Says Congress for New Urbanism The Congress for the New Urbanism released a report, Freeways without Futures 2017 , to identify urban freeways that should be torn down. A panel of national transportation experts identified ten U.S. highways as candidates for teardown based on their negative impacts, possible benefits of removal, and the political feasibility of such a project. Three of the ten obsolete freeways are in California. report identified I-280 in San Francisco, an elevated highway that cuts off Mission Bay and other neighborhoods from downtown; I-980 in Oakland, which separates downtown Oakland from West Oakland; and Route 710 in Pasadena, which is a stub of long-planned but now moribund extension intended to connect the 210 Freeway to the 10 Freeway. There is some degree of local support for demolition of all freeways in the report. CNU advocates removing freeways to fight pollution, ease traffic, and improve walkability and health. Los Angeles Acquires Key Parcel along River The Los Angeles City Council voted, 11-0, to approve  the purchase of 41 acres of property at the center of plans to revitalize the LA River. This parcel, G2, will “create much-needed public open space in the middle of the city, provide extensive habitat restoration, and serve as a key access point for local communities to connect to the river” said Mayor Eric Garcetti. The land cost $59.3 million and was purchased with a $25 million funding from the state. The site is heavily contaminated from its previous use by Union Pacific; the city must first clean the soil, restore habitat and add public improvements which is expected to cost $252 million. The entire 11-mile revitalization project was expected to cost $1 billion three years ago, but now has jumped to nearly $1.6 billion. (See prior CP&DR coverage ) Chumash to Annex Land in Santa Barbara County, Prompting Lawsuit The federal Bureau of Indian Affairs gave  the green light to the Santa Ynez Band of Chumash Indians to annex 1,390-acres of land near its reservation, greatly expanding it from its current 138 acres. Santa Barbara County and several Santa Ynez organizations have complained that a 143-home development proposed by the Chumash on the annexed land would deprive the county of $311 million in property taxes over the next 50 years, change the rural character of land, and has not adequately addressed environmental consequences and mitigations. The County supervisors voted, 3-2, to sue the BIA as soon as this decision was made. Amendments Filed in Lawsuit over High Speed Rail Bonds Opponents of the California High Speed Rail have filed  amendments to a lawsuit filed in December in Sacramento Superior Court alleging that the California legislature violated state constitution when it passed a law last year amending and modifying the $9-billion bond act that voters approved in 2008. The plaintiffs argue the bond act, AB1889, never gave the legislature the authority to alter it. Kings County, the City of Atherton, and several other opposition groups, and John Tos, a farmer, brought the lawsuit. After AB1889 was passed and signed by the governor, the rail authority put together two funding plans. One plan provided $7.8 billion for rail construction from Merced to Shafter and the second provided $819 million to electrify Caltrain, which will eventually connect to the train. However, neither of these plans is part of an operating high-speed rail system which is what the bond act is supposed to pay for. S.F. Controller's Report Analyzes Inclusionary Housing Policies San Francisco City Controller Ben Rosenfield released  a report on the affordable housing required by developers. The analysis found developers could afford to rent up to 18 percent of new apartments and sell up to 20 percent of new condominiums at below-market prices without jeopardizing overall housing production. The city currently requires 25 percent to get approval for new construction, but the number had been 12 percent in the past. Mayor Ed Lee says this will lead to more dense housing and he supports legislation set between 16-18 percent for rentals and 18-20 percent for condominiums. Quick Hits & Updates The Strategic Growth Council (SGC) has released the  draft agenda  for its upcoming  Transformative Climate Communities Stakeholder Summit  on Feb. 10 in Sacramento. The daylong event that is bringing representatives from public agencies, community-based organizations, businesses, foundations and other sectors together to discuss how we can bring about equitable community transformation through integrated climate investments. The Sacramento Kings released  plans for a 170-unit development a few blocks from their new Golden 1 Center arena. The team purchased the $5.9 million block as part of the deal made in 2014. The project will also include 20,000 square feet of retail, affordable units, rooftop gathering spots, and renovation of the historic1909 Bel-Vue apartment building. The Kings with CFY Development plan to break ground on the project in 2017. A handful of cities in Orange and San Diego counties have formed  the Concerned Coastal Communities Coalition to unite as a bigger political voice on state and federal issues. Members include Carlsbad, Dana Point, Del Mar, Encinitas, Huntington Beach, Laguna Beach, Newport Beach, Oceanside, San Clemente, and Seal Beach. Currently, the coalition is focused on San Onofre Nuclear Generating Station decommissioning, protecting coastal beaches and identifying opportunities to offset costs that are exclusive to coastal cities. Sacramento councilman Allen Warren is introducing  a proposal to construct a homeless camp for the chronically unsheltered. The city currently has a camping ban that he is hoping to lift by using a vacant field he owns and running service for a few hundred thousand a year. Warren is hoping this area could give them a place to stabilize their lives with counseling and other services, and mandating they contribute hours to the upkeep of the camp and surrounding area. Mayor Darrell Steinberg has indicated that he would rather focus on indoor triage center and federal funded housing vouchers for finding permanent homes. City Councilmembers and planning commissioners in  Eureka have met for the second time to update a draft of the city’s 2040 General Plan. The city is currently focusing on its mobility elements and has pledged to update “incomplete roads” or those that were constructed without enough access for pedestrians and bicyclists, as well as more freight and passenger rail service. FS Investors of La Jolla unveiled a proposal for a $1 billion redevelopment  of the Qualcomm Stadium site. The proposed project includes a privately financed 20-30,000-seat football and soccer stadium, 55-acre park, housing, and commercial buildings. The group leading this proposal is planning to apply for the MLS expansion franchise and start a campaign to get official approval for this project- either through City Council or a public vote. The sinking Millennium Tower in San Francisco has passed  city inspection and is deemed safe for occupancy, despite evidence of strain on the building’s foundation and electrical systems. Various repairs have been fixed already or are currently being resolved. However, homeowners who are part of a lawsuit are waiting for results from a geotechnical study. Fearing a federal crackdown on undocumented immigrants, two Los Angeles City Council members are pushing forward an ordinance that would decriminalize  sidewalk vending. Currently, selling foods or goods on the sidewalk can lead to misdemeanor charges. In the new rules, the city would eventually issue vending permits, however this could take months to figure out the details. Assemblywoman Lorena Gonzalez (D-Chula Vista) has proposed  a bill that would require the California State Coastal Conservancy to create a program to add to the number of low-cost hotels, motels, and hostels in coastal areas. Equitable access to coastline for low-income Californians has emerged as a major concern for the Coastal Commission. According to the commission “affordable” accommodations only make up 5 percent of the rooms available in coastal areas. According to the Consumer Price Index, Southern California rents increased  by 4.7 percent in 2016 versus 3.9 percent in 2015. A major for these rent hikes have been because employment has increased before local developers could add to the housing supply.

Over the past few years, the City of San Diego has passed a handful of policies committing to increase density citywide in order to meet housing needs and environmental goals. So far, so good.

As an endless parade of recent reports has suggested, California is in the midst of an unprecedented housing crisis. The average home price is over $400,000 – more than twice the national average. Meanwhile, the new state housing assessment concludes that the state is down 1.5 million affordable units, meaning production will have to be ramped up, not down, in the next decade. And this may be the year that we see some action on housing in Sacramento. In his budget address, Gov. Jerry Brown laid out some high-level ideas on regulatory reform that might increase housing production, though he yanked $400 million in housing money that he included in last year’s budget because of a looming deficit. Meanwhile, Assembly Speaker Ed Rendon and Assembly Housing Committee Chair Stephen Chiu have teamed up to introduce a package of four bills dealing with housing, including two bills that would generate new revenue sources not dependent on the general fund. Those bills might finally create the long-sought “permanent source of funding for affordable housing,” which has been kind of a holy grail for affordable housing advocates in Sacramento for a long time. All this commotion raises two related questions: First, is there a political deal in the offing on housing in Sacramento? And second, whatever the deal is, will it actually help put a dent in the housing production problem? Let’s go to the politics first and look at what’s on the table. In his budget message, Brown placed the blame for low housing production squarely on local governments, whose permit delays he claimed drives up unit costs and discourages construction. He laid out four policy principles he would like to see adopted: Streamlined housing construction. He proposed “reducing local barriers,” maximimize the impact of public investments, and “temper rents through housing supply increases. Last year Brown unsuccessfully proposed by-right construction for certain types of affordable housing projects. Lower per-unit costs. He proposed finding ways to “reduce permit and construction policies” that drive up per-unit costs. Production Incentives . He proposed providing jurisdictions that meet or exceed housing goals with cash or regulatory relief of some kind. This is similar to the Jobs Housing Balance Incentive Grant program that the state used to use to provide cash incentives to local governments for housing production. Accountability and Enforcement . He proposed that enforcement of existing laws such as the housing element should be strengthened.  However, because of a looming budget deficit Brown took $400 million in affordable housing money off the table. He proposed the $400 million in general fund dollars last year as part of the by-right proposal. This year, to the consternation of affordable housing advocates, he said that no general fund revenue could be used for housing. Meanwhile, Rendon, Chiu, and others have come forth with a package of four bills , one of which would provide a permanent source of funding for affordable housing and two of which pick up on ideas contained in Brown’s budget message. AB 71 would eliminate the mortgage interest deduction on second homes, creating a revenue stream of $300 million. The bill would dedicate these funds to increasing the state’s pool of low-income housing tax credit money. AB 72 would appropriate funds for the attorney general to enforce the housing element law and other state housing laws. AB 73 would provide local governments with breaks under the California Environmental Quality Act and cash incentives to do up-front pre-planning and zoning for transit-oriented development that has an affordable component, though the projects would have to be built using prevailing wage. AB 74 would pay for housing chronically homeless individuals who are on Medicare and receive services through certain programs. You can see how the first three bills in particular try to flesh out Brown’s ideas: more money for affordable housing without hitting the general fund, cash incentives to local governments, and more state enforcement of housing element law. You can also see the outlines of a political deal: Prevailing wage is required to buy labor in and money for affordable housing is required to buy in the affordable housing advocates. Providing CEQA breaks is always an iffy proposition, although buying labor in through prevailing wage may blunt some of the opposition. So, a deal may actually be possible. But how much difference will it really make? As Brown noted in his budget message, the state projects that almost 200,000 housing units per year will be required over the next decade – and I think that may not include closing the past deficit of almost 2 million – but recent annual production has been less than 100,000. No matter how significant these changes are, can they really generate 100,000 units per year and make up the backlog? Probably not. The housing deficit is the result of a wide variety of factors, including a lack of land in job-rich coastal areas, a wide range of state and local regulatory constraints, and a complicated interplay between the boom cycle of the ‘00s and the bust cycle of the ’10s. Homebuilders often blame CEQA for a lack of housing supply, even if CEQA were repealed tomorrow developers would still face stiff regulations – and often ballot-box zoning—in coastal areas. And anyway, homebuilders are often looking to make it easier to build single-family homes in inland areas – where land is plentiful and cheap – even though the resulting neighborhoods are far, far away from job centers. More affordable housing money is good, but it’s really just a drop in the bucket. Affordable housing developers are politically powerful and their support is necessary to get anything passed, but even operating at maximum capacity they can’t possibly close the gap themselves. And the state’s own policy layers don’t always line up. The state has never effectively implemented the 15-year-old AB 857, which requires state agencies to align all their actions with what used to be called “smart growth” goals. The Strategic Growth Council’s work is commendable in providing capital for development projects near transit, but it’s mostly turned into another layer of affordable housing financing now that redevelopment has gone away. SB 375, which requires regional coordination of transportation investments and land-use policies, isn’t binding on local general plans. And so on. Yet the lesson we have learned since terms limits were passed in California more than 20 years ago is that comprehensive policy change is impossible. As legislators rush through the Capitol on their way to their next job, incremental change is the most we can hope for. So maybe this year’s incremental change on housing will be a start.

I had two distressing conversations on the same topic with two different people last week. The first worked at the headquarters of a medium-sized California-based chain of fast-casual restaurants that specializes in salads and other plant-based meals. The second used to run her own casual lunch restaurant in downtown Culver City.  I say that the second person “used to work” at her own place, because she doesn’t anymore. After many years in business, she closed up shop a few months ago. The salad chain, meanwhile, is going gangbusters. They’ve slowly raised their prices, with no drop in sales. They are swimming in investor money and have bullish plans for expansion.  Despite their disparate experiences, they both agreed that these two examples represent the foreseeable future of the restaurant industry: chains will prevail while mom-and-pops and other one-off, idiosyncratic places face increasing peril . Indeed, many independent restaurants are already running deficits. Their failure will be a lagging indicator of a trend that is already well underway. Chains and high-end “groups” with multiple outlets (often under different names) will fill the void.  Case in point: that Culver City restaurant was one of eight that closed in the city’s tiny downtown last year. Los Angeles Magazine  referred to it, mixed metaphor and all, as the “epicenter of the restaurant apocalypse.”  This means that something else is in peril: the vibrancy of American cities, and, especially, of coastal California cities.  The economic pressures facing independent restaurants aren’t hard to imagine. Labor costs and some wholesale costs are rising. Competition is fierce, and not just from other restaurants. The food truck revolution (which I think has been, on balance, a good thing for cities) competes with lunch-oriented places. Interestingly, the cost of groceries has remained relatively low, so eating in is a better option than ever. Add services like Blue Apron, and every one of those blue-and-white boxes equals up to six seats that will go empty in restaurants.  But let’s get to the meat of the matter. Restaurants are getting clobbered by the same thing that is clobbering everyone else in coastal California: real estate prices. In many cases, landlords are raising rents by amounts that are simply untenable for small businesses. When they move out, many of landlords prefer to let storefronts lie vacant, waiting for a deep-pocketed tenant.  There’s only so much restaurants can do. They can’t start mail-order businesses. They can’t take on roommates or rent sofas on Airbnb. They can’t give up square footage and let some workers telecommute. They’re not allowed to sell their parking lots. They can’t move to the suburbs.  Of course, cities have weathered the loss of book stores, video stores, stationary stores, and the rest. But, as much as I mourn those loses, there’s a difference between a restaurant and, say, a typewriter repair business. For one thing, restaurants are exactly what have filled the the places of many of those forlorn businesses.  More importantly, restaurants are deeply, uniquely intertwined with the fabrics of their respective communities. Urban planners may not always refer directly to restaurants, but I’ve rarely heard a discussion of “place-making” that didn’t implicitly refer to some purveyance of food and drink. Mixed-use buildings need businesses for those ground-floor units. Walkable neighborhoods need places worth walking to.  I suppose Starbucks and Chipotle are places. But you’d have to be a pretty narrow-minded capitalist to argue that they are richer and more interesting than their equivalent mom-and-pop places. Moreover, independent businesses are at the heart of urban economies. They embody all the benefits of entrepreneurship, from abstract virtues like creativity and initiative to the very real economic benefits of keeping profits at arm’s length rather than sending them to Wall Street.  And yet, Blue Apron notwithstanding, everyone still has to eat. That means that someone will fill those spaces. This means that the chains are only going to get bigger and, collectively, stronger. They can afford the rents and onerous startup costs (often made more onerous by municipal regulations). They have backing of investors and can maintain their profit margins through economies of scale and tightly run back offices.  Short of holding bake sales to support their local  watering holes , what can planners do?  In cities that that don’t treat new development like E. Coli, an increase in supply will, hopefully, lead to a flattening out of rental rates. But that’s a long game that goes far beyond the shelf life of many restaurants.  San Francisco has recently experimented with protections and aid for “ legacy businesses .” Their effectiveness is as yet uncertain, and the city’s definition of “legacy” protects only the most longstanding businesses. Though residential rent control is surging in California, I see no appetite for a retail equivalent. I’d love to see disincentives for empty storefronts, since many landlords currently would prefer to let them lie fallow while they wait for for big-money tenants than let an incumbent stay on at a manageable rate. My personal favorite anti-chain ordinances that pretend not to be anti-chain ordinances are those that restrict the large, garish signs that many fast food places rely on.  Of course, even tepid versions of these options would cause landlords to go apoplectic. In the political battle between aspiring restaurateurs and grizzled property owners, that’s like bringing a whisk to a gunfight.  Ironically, the resurgence of urban life over the past decade or so has corresponded almost perfectly with the artisanal, locavore, organic, small-batch, multiethnic, hipster-led resurgence in the culinary industry. There’s probably never been a better time to be a chef, mixologist, restauranteur, or “foodie.” That goes double for California — a hotbed of culinary diversity and probably the farmer’s market capital of the world.  But planners need not enjoy bone marrow or roasted dandelion greens to care about this trend. They need only care about the places they are trying to create — and bring as much imagination to their jobs as todays’ chefs do to theirs.

An audit  of the City of Los Angeles’ affordably-priced housing program and density bonus program finds that they have been relatively ineffectual. Los Angeles City Controller Ron Galperin completed the audit to determine how well the “density bonus” program was performing since its inception in 2008. The audit found that 21 percent of new multi-family projects of five units or more, built between 2008 and 2014 (169 of 790 projects) utilized some aspect of the density bonus program -- resulting in 4,463 units designated as affordable. However, just 329 of these units were created in market-rate projects throughout the city. Galperin calls this “an arguably minimal impact when considering the city’s overall affordable housing needs.” The rest of the units were in entirely affordable housing projects. The audit recommends that the city create additional incentives, such as additional density or permitting micro units; streamline processes through modifications to the current process of site plan review and expedited processing of environmental impact reports; conduct a legal analysis of what opportunities might exist, within the density bonus program, to allow market-rate developers to create income-restricted units off-site -- or to pay equivalent values into a fund which would build income-restricted units throughout Los Angeles; Review how income levels are defined. The audit also examined oversight and monitoring of the city’s overall stock on 28,482 income-restricted units. While auditors found reasonably adequate monitoring by the city’s contractor, and a 93 percent compliance rate, better oversight tools are needed to deal with conditions of some owners collecting more rent than allowed and some tenants exceeding income guidelines. San Diego Seeks to Increase Urban Forest The San Diego City Council unanimously approved  a five-year urban forestry plan that would significantly increase the city’s stock of street trees, especially those in low-income and urban areas. The city’s Climate Action Plan calls for increasing percentage of San Diego covered in trees from 13 to 35 percent over the next 20 years. Those in favor of the plan say it will boost property values, improve air and water quality, enhance wildlife habitat, and shrink energy costs by reducing the heat island effect. The city is using a $750,000 grant from the California Department of Forestry and Fire Prevention to plant 500 trees in urban areas. The next step for the city is creating an updated tree inventory of the existing urban forest to create a better strategy. Federal Funding Rule Puts High Speed Rail in Bind The Federal Railroad Administration, under the Obama administration, modified  the $928-million grant deadline for the California bullet train from 2018 to 2022. A recent risk analysis shows the California High Speed Rail Authority may need until 2024. The modification requires the state to pay its matching share of the stimulus grant, estimated at $2 billion, before drawing on the grant. This means the state must start funding construction out of state funds instead of relying on federal grants. California can draw on carbon tax fees, which are projected to generate about $500 million annually but have been below projections. It is still unclear what direction Transportation secretary Elaine Chao will do under President Trump. Central Valley Reaps Economic Rewards of Climate Change Policies A report  from Next 10, a public policy think tank, shows that California’s global warming policies have had economic benefits for the San Joaquin Valley. The valley has historically struggled with poor air quality and an economy that’s slower than the rest of the state. “The report, The Economic Impacts of California’s Major Climate Programs on the San Joaquin Valley” analyzed the cap-and-trade program, renewable energy standards, and energy efficiency initiatives, including those initiated under 2006’s AB 36. According to the study there has been $13.4 billion in economic benefits, primarily from the construction of solar generation facilities. The report warned that uncertainty regarding the cap-and-trade program had to be removed and auction proceeds spend on valley programs that cut GHG emissions. It also recommends that energy efficient incentives have to be expanded in the valley where greater energy savings are found compared to more temperate parts of the state. League of Cities Considers Draft Housing Assessment The League of California cities recently weighed  in on the Draft 2025 Housing Assessment “California’s Housing Future: Challenges and Opportunities.” The draft discusses the serious need for more affordable housing, the full range of required housing, as well as an analysis of the economic impact of where housing is located. However, according to the League, the report places a disproportionate focus on the role of local governments and not private market forces. Additionally it fails to mention the loss of over $1 billion annually in affordable housing resources after the dissolving of redevelopment agencies. Concerns are also raised with several apparent conclusions presented in the report on the role of local government in the development of housing which lack sufficient supporting research and evidence. Finally, the League is wary of some language that alludes to a top-down approach to the statewide housing crisis. Suits Claim Cap-and-Trade Imposes Illegal Tax In two separate ongoing lawsuits, last week the California Chamber of Commerce and a tomato packing company argued  in front of a the 3 rd District Court of Appeal to invalidate California’s cap-and-trade program. Plaintiffs claim that cap-and-trade fees constitute a tax, rather than a fee. A tax would be impermissible under Proposition 13 without public approval. While the legislation, AB 32, did allow an auction it amounts to a tax increase that would require approval of two-thirds of the Assembly and Senate. The cap-and-trade system is not under question, only the state’s selling of pollution permits. The Air Resources Board considers the auction similar to regulatory fees, and therefore not required the two-thirds majority. The judges have until late April to make a decision, however lawyers form both sides said they would appeal to the California Supreme Court if they lose. ‘Rouge’ Bike Share Company Walks Back Plans in S.F. Bluegogo, a Chinese-backed bike-sharing startup, has abandoned  plans to deposit hundreds of bikes on San Francisco streets without city permits, approval, or letting anyone know its plans. Rather than use permitted bike stations, Bluegogo would have parked bikes haphazardly around the city. The program was scheduled to launch this week. Instead, it intends to operate as a conventional bike share service, with dedicated stations. The San Francisco Bike Coalition says the original plan would have left “thousands of uninspected and unpermitted bicycles to be stored unattended for long periods of time on sidewalks, in parks and on our streets.” A Bluegogo official told the Mercury News, “We didn’t want to be that startup that literally shows up to the city first and then deals with all the problems later.” Contest Envisisions 'Resilient' Bay Area The Bay Area: Resilient by Design Challenge invites  designers, policymakers and developers to imagine climate change solutions for the San Francisco area. The contest is being funded with a $4.6 million grant from the Rockefeller Foundation and is modeled after a similar New York-area contest in 2013. The challenge will be divided into two phases: in the first, teams will participate in a three-month “exploratory research and community engagement period to develop initial design concepts for specific sites” and the second phase will be a, “collaborative five-month intensive design phase” working with residents, businesses, organizations and local politicians. (See prior CP&DR coverage.) Quick Hits & Updates Sacramento officials are asking  the 350 largest property owners adjacent to a downtown streetcar line to contribute $2 million a year in taxes. The Sacramento Streetcar Community Facilities District would include all commercial property owners that have parcels larger than 12,600 square feet. The tax district would help pay the project’s operations costs once it’s built. This is the second attempt in three years to win a downtown vote that city officials say is needed to pull together the final pieces of the 4-mile streetcar. The tax will be voted on in May. The Costa Mesa City Council voted , 4-0, to drop a 2014 lawsuit against the Civic Center Barrio Housing Corporation. The city lent the affordable housing nonprofit money to purchase and develop three properties. In 2015 the city issued a credit bid of more than $2.38 million and took possession of 22 apartment units within the complexes. The city took over the property to preserve affordable housing for low-income families after the units fell into foreclosure. The Oakland Raiders officially submitted  a relocation application and are taking the first step towards moving to Las Vegas. The Raiders must get approval from three-quarters of the league’s 32 owners to move, which will likely take place at the annual NFL meeting in late March. However, Oakland Mayor Libby Schaaf is still fighting to keep the team with a new $1.25-billion stadium proposal. The City of Anaheim is hitting  short-term rental owners operating illegally with fines and shutting down utilities for the units. The new rules include limiting the number of guests, quiet hours, and requiring owners to respond to complaints within 45 minutes. In the last four months the city has collected $8,000 in fines. The U.S. Fish and Wildlife Service has proposed  the removal of the Hidden Lake bluecurls, an alpine wildflower found in the San Jacinto Mountains, from the Federal List of Endangered and Threatened Plants. The flower was added to the list in 1998 to save protect it from hikers and equestrians. Biologists are worried about climate change threatening the flower since it only grows in a specific area under specific conditions. EDF Renewable Energy  signed  a deal with Marin Clean Energy to purchase electricity from its 150-megawatt Desert Harvest solar project. Although construction has not begun, the 1,200 acres of federal land south of Joshua Tree National Park will be located in one of the nation’s clean energy hot spots. While there were originally objections from NRDC and Defenders of Wildlife because of potential disruptions to critical habitat for the desert tortoise, EDF has agreed to buy private land near the project and set it aside as protected habitat. Airbnb released  a report indicating that hosts in Los Angeles have generated more than $13 million in tax revenue for the city since this summer, and a “vast majority” of the funds are going towards homeless assistance. In fact, only around $5 million is going to homeless support, with the rest going to the city’s general fund. Under a new agreement, hosts from Airbnb are paying the same 14 percent tax that hotels pay. San Francisco Mayor Ed Lee and city planners have issued  a redesign proposal  called the Civic Center Public Space Design to make the plaza around City Hall more inspiring, sustainable, and inclusive. The planning department has had initial meetings with candidates, and final proposals are due Feb. 10. The winner will receive a contract of up to $600,000 to draft a full proposal. The Elk Grove City Council postponed action on deciding whether the proposed $400 million Indian casino  will lead to a referendum or go along with petitioners’ demands. The casino would be built adjacent to an unfinished mall, and the mall developer says the casino would drive traffic to the mall. However, petitioners collected enough signatures to overturn the council’s earlier decision to pave the way for the casino. The council will take up the matter again in two weeks. Developer Wessman Holdings is suing  the City of Palm Springs for denying his 42.2-acre luxury home development. The project, Crescendo, was initially approved by City Council nine years ago. After the recession and legal challenges from Advocated for Better Community Development, the developer asked for a time-extension that was not granted. Wessman paid 150 percent of required fees for priority processing but received no such preferences.

CP&DR Vol. 32 No. 10 October 2017