CP&DR Vol. 31 No. 12 December 2016

A report  by Beacon Economics estimates that the City of Los Angeles would lose $70 million per year in sales tax, property tax, and other taxes as well as 12,000 jobs if Measure S passes. The measure, known also as the Neighborhood Integrity Initiative, will be on the March ballot. Supporters the measure, which would place restrictions on development and require updating of the city’s community plans, have raised more than $1.4 million and those opposed at least $975,000. L.A. Mayor Eric Garcetti will campaign against the measure because he is concerned it will threaten the city’s economy. Meanwhile, Opponents of Measure S have been sued  for submitting inaccurate statements for a city voter guide. According to the lawsuit the ballot information cited “independent economic studies” showing lost jobs and tax revenue if the measure were to pass. Supporters of the measure say the city needs to crack down on “mega-developments” that have hurt the city’s quality of life and increased traffic. While opponents say the measure would worsen LA’s housing shortage and hurt the economy. (See prior CP&DR coverage .) State Officials Object to Feds’ Endorsement of Offshore Fracking California State Attorney General Kamala Harris and the California Coastal Commission have filed a lawsuit challenging the federal government’s finding of fracking off the coast being environmentally safe. The lawsuit in federal court says the Department of Interior failed to take a “hard look” at the environmental effects of 22 offshore oil platforms that use techniques including acid and hydraulic fracturing, known as fracking. Two environmental groups sued over the processes last year, and the federal government agreed to do a new environmental assessment. The government found no significant environmental impact. The lawsuit challenges the assessment, and demands a more extensive evaluation. The Obama administration announced it will block oil and natural gas drilling in parts of the Artic and Atlantic Oceans. Gov. Jerry Brown, along with Democrats in the U.S. Senate from Oregon and Washington, sent letters to the White House to make similar protections of the California Coast. (See prior CP&DR coverage .) California Scores Well in Report of ‘Best Performing Cities’ Santa Monica-based Milken Institute Center for Jobs and Human Capital issued  a report of Best Performing Cities ( pdf ), highlighting which American cities have created and sustained jobs. Six of the 25 spots were secured by California cities. Included is San Jose-Sunnyvale-Santa Clara as the top-performing large metro in the nation, San Francisco-Redwood City-South San Francisco as fourth, Oakland-Hayward-Berkeley as 18th, Anaheim-Santa Ana-Irvine as 19th, Santa Rosa as 20th, and San Luis Obispo-Paso Robles-Arroyo Grande as 25th. L.A. Adopts Renters ’ Rights Ordinance s LA Mayor Eric Garcetti signed  an ordinance that requires tenants facing eviction from rent-controlled apartments to be fully informed of their rights to relocation compensation. These costs range from $7,900 to $19,700 and provide renters sufficient time to move out. The new law requires landlords to tell tenants, prior to reaching a buyout agreement, that there is a more formal process with the city in which they may be entitle to more relocation money and protections than they initially realized. Los Angeles has roughly 624,000 rent-controlled units house about half of LA families. Garcetti also signed  the Tenant Buyout Ordinance. This key addition to the City’s Rent Stabilization Ordinance is another step toward curbing the housing affordability crisis. The new ordinance required landlords to file buyout agreements with the City, so that staff can better monitor the process and permits renters to withdraw from the agreement within 30 days. Los Angeles County Growth Rate Slows Los Angeles County saw a larger overall increase  to its population than any other California county over the past year. LA County grew by more than 43,000 people, accounting for 15 percent of the state’s overall population increase according to the state Department of Finance. However L.A. County has 10.2 million people, whereas second-place San Diego County only has 3.3 million. LA County had the smallest population increase since the 2010 census, resulting from a negative net migration. This meant about 15,000 more people left the area than moved into it but the natural increase from birthrate was about 59,000. Sustainable Planning Grant Deadline Extended The Strategic Growth Council (SGC) in partnership with the Office of Planning and Research announced that the deadline for applications to the  Sustainable Communities Planning Grant and Incentives Program : Best Practices Pilot, Guidelines and Application has been extended to February 9. The program is an effort to support local land use planning related to climate and the State’s statutory planning priorities. SCPGIP funding in the amount of $250,000 will be available for applicants to apply for up to $50,000. These grants will support the development and/or implementation of a specific portion of a land use plan, land protection or management practice, or development project, that targets sustainable development and the State’s climate policies. This small grant is not intended to fund a long-range plan or project in its entirety. Proposed applications must support local implementation of state policies, with a focus on creating more resilient communities through climate adaptation and mitigation. Quick Hits & Updates Sierra Watch has filed  a lawsuit against Placer County for the Squaw Valley’s expansion plan alleged violation of CEQA. The plan includes 1,500 rooms, 300,000 square-feet of commercial space and a 90,000 square-feet “mountain adventure center.” The supervisors heard from about 100 speakers during an all-day hearing. (See prior CP&DR coverage .) The Bay Area job market  reached its lowest unemployment level in 15 years. In East Bay the unemployment rate is 4 percent, South Bay 3.5 percent, and San Francisco-San Mateo area it is 3 percent. The Orange Country Transportation Authority recently approved  a conservation plan that protects more than 1,300 acres of wilderness from development. This is part of the Measure M Freeway Environmental Mitigation Program. The certification of the final conservation plans, known as the Natural Community Conservation Plan/Habitat Conservation Plan and associated EIR is the culmination of nearly 10-year effort. Caltrans will begin selling  homes, apartments, and lots acquired in the 1950s and 1960s for a proposed extension of the 710 Freeway between Pasadena and Alhambra. The 6.2-mile project has been stalled by decades of litigation and legislation stalled the 6.2-mile project and continues to face fierce opposition. Tenants of the 42 properties that will be sold first, have three months to respond to the agency if they have any interest in buying their homes. (See prior CP&DR coverage.) State investigators cleared  California Coastal Commissioner Erik Howell of allegations that he improperly voted for a housing project in Pismo Beach after receiving a $1,000 campaign donation from someone with an interest in the development. The Fair Political Practices Commission announced it found insufficient evidence that state law was violated. Howell is also a Pismo Beach city councilmember. Huntington Beach Planning Commissioner Michael Hoskinson resigned  after a comment he made online denigrating Islam. As City Mayor Delgleize explained, “If you’re an elected official, or appointed by an elected official, you are held to a higher standard.” The METRANS Transportation Center at USC was recently awarded  a $12.5 million grant from the US Department of Transportation to study and solve a range of transportation concerns, from issues with mobility to challenges that affect public access. Leading the Pacific Southwest Region University Transportation Center, the new center spans four states and seven other research institutions in the Southwest. Kern County Supervisors dissolved  the County Parks and Recreation Department and moved its staff and functions into the General Services Department. Other county departments have been merged into mega-departments in recent years, creating the Public Health Services Department and Public Works.

The California High Speed Rail Authority approved  $3.2 billion in the first major sale of voter-approved construction bonds. Around $2.6 billion will be dedicated to a 119-mile leg connecting Fresno to Madera and $600 million to electrify a 55-mile stretch of existing Caltrain tracks in the San Jose area. The authority hosted a public meeting in Los Angeles to discuss the 12-mile, Burbank-to- downtown portion of the $64 billion project. The train will follow the existing rail corridor used by Amtrak, Metrolink and freight trains in Los Angeles; it will not go underground in downtown, as previous plans had proposed. The latest projection is for the system to be fully operational in 2029 and the draft EIR to be released next summer. Meanwhile, attorney Stuart Flashman has filed a lawsuit claiming that AB 1889, a bill that approves use of high speed rail bonds funds for Caltrain electrification, was improper and illegal under the terms of the system's voter-approved bond measure.  San Francisco Adopts Plan for Natural Areas The San Francisco Planning Commission and Recreation and Parks Commission jointly approved , with only one dissenting vote, a comprehensive new plan for the city’s natural areas. The plan, originally proposed ten years ago, will review the biology and geology of the Recreation and Park Department’s 32 natural areas and trails, and it will outline maintenance and capital improvements within the next 20 years. The changes that would occur are changes in urban forestry management, removal of off-leash dog areas in sensitive environmental areas, and changes of Sharp Park’s golf course. Over 18,000 trees would be removed throughout the park system under the plan, with the majority being eucalyptus trees in Pacifica that will be replaced with native trees. Fresno Approves Plan for City’s Beleaguered Southwest District The Fresno City Council approved , 6-0, the Southwest Fresno Specific Plan, which will guide development of 3,200 acres in the next few decades. The area includes some of the city’s most impoverished neighborhoods. The new plan calls for two “magnet cores” that contain primarily retail, including grocery stores, high-density housing, medical facilities, possible community college, and a park. A major element of the plan includes eliminating industrial zoning for new development and instead replacing it with less-intensive office zoning. Developers say they have steered clear of the area because of its high costs and lack of good land-use planning. City staff and consultants will now begin a draft EIR and the Fresno Planning Commission and City Council will vote next fall. (See prior CP&DR coverage  of planning in Fresno.) Lancaster Eliminates Parking Minimums in Commercial Zones The City of Lancaster, a relatively low-density bedroom community north of Los Angeles, has approved an ordinance eliminating  parking minimums for commercial zones. This decision, according to the staff report, “will help to reverse…sprawling development patterns, and the resulting fiscal liabilities.” Requiring excessive parking increases the cost of doing business by needing more land and costs of maintain them, which is eventually paid by the customer, according to the staff report. The ordinance includes a safeguard clause to prevent extreme abuse by requiring developers to determine the number of parking spaces sufficient for the proposed use and providing justification to the Director of Development Services and/or the Planning Commission. Oakland Approves Last-Ditch Effort to Keep Raiders The Alameda County Board of Supervisors, 3-1, and Oakland City Council, 7-0, approved to negotiate a formal agreement  for a $1.3 billion stadium that would seat 55,000 and include mixed-use retail in order to keep the Raiders in the city. The nonbinding term sheet showed the stadium would be funded with a mixture of private money from Ronnie Lott’s investment group for a total of $400 million, $500 million from the NFL and Raiders, and $350 million in public money to fund infrastructure improvements. The public money would include $200 million from the city of Oakland to fund storm drains and roadway parking and land that is valued at $150 million. The land will either be sold or leased; this is one of the remaining issues that must be resolved. While Raiders owner Mark Davis, has previously said he was committed to move the team to Las Vegas, but NFL owners have the final say. Last week, NFL Commissioner Roger Goodell hinted  that the Raiders are closer than ever to moving to Las Vegas. Eviction Rates High in California According to data released  by Redfin, 2.7 million renters faced eviction last year, and a disproportionately high number came from California. In Southern California, one out of every 33 Inland Empire renter households was evicted  in 2014, the ninth-highest eviction rate among big metro areas. Orange County ranked 17th among 32 large metros and Los Angeles County ranked 20th, with one out of every 80 renters losing their home. To gather the data, Redfin analyzed 6 million eviction records in 19 states. Additionally Southern California has a high number of “cost-burdened” renters, those paying more than 30 percent of their income on rent. Inland Empire has over 137,300, Orange County has 232,500, and Los Angeles County to 990,000. Sacramento Considers Transportation Impact Fee Sacramento is expecting 68,000 houses and apartment units in the next two decades and may ask developers to pay a “ transportation impact ” fee on new construction to fund more and wider streets and improve biking and pedestrian facilities. The amounts from single-family and apartments, ranging from $700 to $2,000 per unit, could generate up to $3 million per year and could provide a critical “local match” funds to allow the city to compete for federal and state transportation grants. Lawmakers Propose Housing Measures in New Session Sen. Toni Atkins (D-San Diego) introduced  SB 2, the Building Homes and Jobs Act, that would establish a permanent source of funding for affordable rental or ownership housing, supportive housing, emergency shelters, transitional housing and other housing needs via a $75 recordation fee on real estate transaction documents. As a companion measure, Sen. Jim Beall (D-San Jose) introduce SB 3, the Affordable Housing Bond Act of 2018, that authorizes a $3 billion general obligation bond to fund existing and highly successful affordable housing programs and infill infrastructure projects. Quick Hits & Updates The Strategic Growth Council and Office of Planning and Research released the “ Sustainable Communities Planning Grant and Incentive Program: Best Practices Pilot, Guidelines and Application .” The pilot supports local land use planning related to climate and the State’s planning priorities. The program has $250,000, with applicants able to apply for maximum $50,000. These grants will support the development or implementation of a specific portion of a land use plan, land protection or management practice, or development project that targets sustainable development and the state’s climate policies. Google’s parent company, Alphabet, has filed  paperwork with the city of Mountain View to build 330 units of housing near its headquarters. Similarly, Facebook has announced plans to build 1,500 units in Menlo Park and donate and additional $20 million to a community partnership that supports affordable housing and tenants’ rights services in the community. Bay Area cities have been favoring new office space rather than residential units because of the higher tax revenue gained through commercial properties. Building housing units requires cities to spend funds on schools, police, fire and libraries. (See prior CP&DR coverage .) The San Francisco Municipal Transportation Agency filed  a complaint with the California Public Utilities Commission to call out the commission for failing to reasonably limit the growth of the ride-hailing industry. Transportation Network Companies have nearly 45,000 drivers circling the streets of San Francisco, which, Muni claims, slows traffic and causes increased carbon emissions and other environmental impacts. The Los Angeles County city of South Gate is not scheduled to receive light-rail service until early 2040s, but the city is already planning  a framework for a future transit-oriented district near the anticipated station. The area could support upwards of 500 residential units, 230,000 square feet of office and light industrial space, and neighborhood shops and restaurants. The area will be connected to Downtown Los Angeles and the Green Line through the second phase of the West Santa Ana Branch. In the ongoing controversy over San Diego’s Affordable/In-Fill Housing and Sustainable Buildings Expedite Program, architect and former Planning Commission member Tom Golba has been singled  out by the Union Tribune for possible improper donations to Mayor Kevin Falcouner’s campaigns. According to the Union-Tribune, Golba has been involved with a relatively high number of projects that take advantage of the program. Mayor Ed Lee of San Francisco vetoed  legislation that would have restricted short-term rentals to 60 days a year. The ruling that was approved by the Board of Supervisors last month would have made enforcement of the current law “more difficult and less effective” according to Lee. The veto means the current law will remain in place and hosts can rent their house or apartment an unlimited number of days, or entire homes up to 90 days a year. The California Coastal Commission is fining  two Malibu property owners $5.1 million combined for denying surfers and other beachgoers access to the beach. In one case, the owners must build two stairways to the sand, install a signalized crosswalk, and pay fines to a local conservation agency. These are the first such penalties the commission has ever imposed on property owners for violating beach access provisions of the California Coastal Act. The US Department of Transportation recently announced  UC Davis Institute of Transportation Studies as the winner of a $14 million grant. The National Center for Sustainable Transportation is one of five national transportation centers awarded under the University Transportation Centers program reauthorized by the federal Fixing America’s Surface Transportation Act. The California Supreme Court decided  that online travel companies such as Expedia, Hotwire, and Priceline.com are exempt from paying hotel occupancy taxes. Local governments have been attempting to get these firms to pay hundreds of millions of dollars in back taxes. A Los Angeles City Council’s committee moved ahead  with a plan to decriminalize illegal street vending and allow sidewalk vendors to operate under strict limits. The new plan would allow street vendors to obtain permits to operate, and limit the vendors to two per side of a city block. Additionally, businesses adjacent to the carts would decide whether to approve their presence. Four San Diego City Council members are preparing to offer  Chargers owner Dean Spano a lease of $1 a year for 99 years for the Qualcomm Stadium site as a starting point for negotiations for a new stadium. The Chargers have until mid January to decide to join the Rams in a stadium in Inglewood scheduled to open in 2019. The Burbank City Council has directed its city manager to negotiate  with Metro and the City of Los Angeles over Metro’s plans to build a Metrolink station on the north side of Hollywood Burbank Airport. The unanimous vote from Council members was to figure out which agency will be in charge of operating and maintain the estimated $15 million station. The Los Angeles City Council approved  the latest joint venture partnership and timeline for the $950 million Frank Gehry-designed development across from Walt Disney Hall. Awaited since the mid-2000s, the project will break ground in 2018 and open in 2022.

In an important new decision, the California Supreme Court has ruled that a new general plan trumps an old specific plan in determining a property’s development potential. The Supreme Court’s ruling overturned a Court of Appeal decision and affirmed a successful citizen referendum reversing the Orange City Council’s decision to permit 39 houses on 51 acres on a golf course site in Orange Park Acres.

A joint committee of the Association of Bay Area Governments and the Metropolitan Transportation Commission has approved a draft  update  of Plan Bay Area. Called “the Final Preferred Scenario,” the update to the region’s long-range transportation and land use plan shows that the region will need to accommodate  an additional 800,000 households in the next 30 years. The proposed plan, which serves as the region's Sustinable Communities Strategy, also projects 3.4 million households in the region by 2040, a 30 percent jump from 2010. 46 percent of projected the housing growth will take place in San Francisco, Oakland and San Jose. The plan also projects a majority of new housing, 77 percent, will come in Priority Development Areas adjacent to transit and job centers. The draft plan now must now undergo an environmental review under CEQA and an action plan that includes measurement and monitoring components and actual policy prescriptions to meet housing goals when Plan Bay Area 2040 is officially adopted next summer. (See prior CP&DR coverage  of second-generation SCS's.) San Diego City Auditor Issues Scathing Report of Expediting Program The San Diego City Auditor Eduardo Luna released  a report finding that many projects fast-tracked under the city’s “Affordable/In-Fill Housing and Sustainable Buildings Expedite Program” were neither affordable, sustainable or even expedited. Luna found  half the permits reviewed were completed and not under the deadline. Nearly one-third were granted to single-family homes that should not have been admitted to the program. The program promised an expedited permit for $500 if the project had four or more units. The program, passed in 2003, was meant to reduce the cost to develop affordable housing but was instead solar energy systems for small unit owners. The average size of projects approved was 5,000 square feet, nearly twice the size of the average home, and was located near the coast. The director of Development Services Department reassured that his department would immediately stop letting single family residence into the pipeline. This comes at a time when San Diego needs to be building significantly more affordable housing units. Stanford Releases Ambitious Growth Plan Stanford University has released  its plan for future growth between 2018 and 2035. The plan envisions construction of nearly 2.3 million square feet of new academic buildings and up to 3,150 new housing units. Instead of developing the 2,000 acres of open space, the university will develop its central campus more intensely and will develop new transit programs. The most controversial part of the document will be traffic: first from long-term construction, second from increased commuter traffic, and third handling congestion management. Goals for the university include new research and teaching facilities, more on-campus housing for graduate students, faculty and staff, and more dormitories for growth in the undergraduate population. The university will hold a presentation about its plan in a “Community Forum” in late January and Santa Clara County will hold a public hearing in early February. Water Board Calls for Long-Term Conservation The State Water Resources Control Board has released  a new draft conservation plan ban water-wasting practices like hosing down driveways and excessive lawn watering permanently. These practices are banned during the drought, but under the plan urban water suppliers would have to meet new conservation targets by 2025. The reduction would be based on a variety of factors including indoor and outdoor water use, commercial and industrial water use, and water lost due to leaks. As Max Gomberg, climate and conservation manager with the WRCB said, “this really sets us up to better deal with the droughts to come, to deal with climate change and what it’s doing to our water systems up and down the state and to really take us beyond 2020 in terms of our conservation goals on both the urban and agricultural side of things.” The measures will require legislative approval and a final plan will be released in January. Construction Boom Predicted for L.A. County Los Angeles County Economic Development Corporation (LAEDC)’s Institute for Applied Economics released a study  of the construction industry that focuses on Southern California, including Los Angeles County. Funded by JPMorgan Chase, “Building the Future: Construction in Southern California, the Industry, its Jobs and its Economic Contribution” reveals that the regional construction industry has finally rebounded from the Great Recession and poses is significant job opportunities. The industry currently employs more than 313,000 workers across Southern California and is expected to generate 95,000 new jobs in the next five years, with a third being in skilled occupations such as carpenters, electricians, plumbers, and masons. The report also shows the changing nature of the built environment, predicting that more multi-family residential units will be built. In L.A. County, multifamily permits has risen from 53 percent ten years ago to 81 percent today. However, housing affordability continues to be a major issue with a projected need of an additional 100,000 units per year to be built in California in addition to the 100,000 to 140,000 units expected to be built to mitigate the affordability problem. Sacramento Planners Seek to Jump-Start Stalled Parks Projects City park officials in Sacramento are advancing  a plan to ask City Council in January to approve a city ordinance to kick-start major parks projects throughout the city. Several parks have been languishing. For instance, North Natomas Regional Park was designed in 2000 to include an amphitheater, botanical garden, farmers market, boathouse, and café. Today, the amphitheater and only few other amenities have been built, but the majority of the 200-acre park is undeveloped as funding ran out. Miller Regional Park and Del Paso Regional Park have similar stories, as do other small parks throughout the city. The shortfalls occurred because the city required developers of new homes and commercial buildings to pay fees to buy and build 5 acres worth of neighborhood or community parks for every 1,000 residents in an area. However, the city does not have the same dedicated revenue source to build regional parks and other larger recreational facilities. The proposed plan does not create new funds but instead shifts about a third of the existing park impact fees from small park development to larger parks. This should free up an estimated $3 million annually. Oakland Mayor Schaaf Pledges to Support Space for Artists In the wake of the devastating “Ghost Ship” fire that killed over 30 people in an improvised live-work artists space in Oakland, Oakland Mayor Libby Schaaf announced  the dedication of $1.7 million in philanthropic funds to support sustainable, long-term solutions to creating affordable and safe spaces for Oakland’s artists and arts organizations. Funds coming from the Kenneth Rainin Foundation and the William and Flora Hewlett Foundation will go to the Community Arts Stabilization Trust (CAST)- a nonprofit real estate organization, that will have financial and technical assistance programs to support art organizations facing displacement. Mayor Schaaf also announced additional city staff will support arts and culture in Oakland. CAST’s new two-year pilot initiative “Keeping Space—Oakland” launches in December and will assist arts and cultural organizations that are seeking real estate expertise and funding. The program will offer grants up to $750,000 to arts organizations that have been or are facing displacement in Oakland. San Jose Sues Santa Clara over Santa Row Development The City of Santa Clara filed  a lawsuit regarding San Jose’s Santana West development project. Santana West is a 13-acre development across from Santana Row, south of Santa Clara’s municipal boundary. The project is proposed to have 970,000 square feet of office space and 29,000 square feet of retail. The property includes the Century 21 Theaters, which is a historic landmark. San Jose City Council approved the project and its EIR in October but Santa Clara had sent a letter to San Jose in September objecting the approval of the project. Santa Clara claims the project’s EIR is inadequate and that approving the project is inconsistent with San Jose’s General Plan. The City of San Jose had recently filed a similar lawsuit against Santa Clara’s 240-acre City Place Project. The suit comes on the heels of a lawsuit by San Jose protesting Santa Clara’s approval of CityPlace. (See prior CP&DR coverage .) Clovis Adopts Specific Plan to Enhance Downtown, Promote Mobility The Clovis City Council approved  a new Central Clovis Specific Plan which covers 676-acres and is the long-term plan for the next 30 years. The city is proposing new bike lanes, additional pedestrian walkways, more housing and a downtown that would attract college students that attend the local colleges. Planning Director Dwight Kroll hopes to reinvest in residential development because more residents in Old Town mean an improved business environment. Kroll says building second units on the back of homes facing into alleys will double densities without changing the outward appearance. The plan follows the adoption of ambitious downtown plans for neighboring Fresno. (See prior CP&DR coverage .) Los Angeles Moves Forward on Anti- ‘Mansionization’ Policies The Los Angeles City Council voted , 13-0, to update two sections of two city ordinances that regulate size of homes. The aim of the policy is to place restrictions on “mansionization”- the practice of constructing houses that are far larger than those nearby. Councilmember Paul Koretz said the complaints about “very boxy, ugly homes” are lead by developers who want to build as many bedrooms to make maximum profit. One measure would reduce the allowable square footage for houses in R-1 zones to 45 percent of overall lot size. This is down from 50 percent previously. The second change will be to eliminate provisions that allow homebuilders to build 20 percent larger houses when they followed environmentally friendly design standards. Quick Hits & Updates The Pacer County Board of Supervisors approved , 4-1, the Village at Squaw Valley Specific Plan. The development includes an 850 room hotel, condominiums, and residential units. The project is expected to cost $1 billion. (See prior CP&DR coverage .) The Strategic Growth Council’s data from its second round of Affordable Housing and Sustainable Communities Program awards  is now available. The data includes in-depth information on each of the innovative housing and transportation project that were awarded grants, including amounts of affordable units to be built, types of transportation improvements, community co-benefits, and more. In Los Angeles, more than 75 organizations asked the Board of Supervisors for a March Ballot Measure to address the worsening homelessness crisis. The organizations included homeless advocates, business, labor, faith-based and environmental organizations. The number of homeless in LA County has increased by 123 percent in the past 3 years and now includes more than 47,000 people. The Sebastopol City Council unanimously approved  the city’s new general plan with a last minute amendment to accommodate the wishes of a fifth-generation resident and her illegal in-city farm because of change in zoning. Before the meeting her parcel was allocated to remain zoned at medium residential density (MRD), which does not allow for the amount of animals she has. The change from MRD to low residential density allows her to keep her farm in compliance. Facebook is investing  in affordable housing in Silicon Valley because of its plans to expand its headquarters in Menlo Park. The company will spend $20 million to construct affordable units and assist tenants facing eviction. (See prior CP&DR commentary .) San Francisco State University is the only university in California named  to this year's League of American Bicyclists list of Bicycle Friendly Universities. This is the first time S.F. State got the award and the University is proud to be awarded Bronze Level status. L.A. Metro’s Board of Directors approved  the final environmental study for the Airport Metro Connector 96th Street Transit Station that would serve the Crenshaw/LAX Line and the Green Line. This will also be the main transfer point for the future LAX people mover train that sends passengers between the rail station and the airport’s terminals. A judge struck  down a Kern County voter initiative passed in 2006 that banned dumping of about 450,000 tons a year of treated human waste from Southern California on Kern County farmland. The City of Los Angeles purchased Green Acres, a 4,700-acre farm in 1999 for $15 million for treated waste to be used as fertilizer and soil amendment. A lawsuit filed by a coalition of farmers, contractors, and public agencies led by the city to abolish Measure E made it a misdemeanor to dump treated waste known as biosolids on unincorporated county land. The California Transportation Commission announced  that the 50-mile mixed-use pathway in Coachella Valley would receive $24 million in grant funds, but is now recommending that the money go to five projects in other parts of the state. Apparently the Coachella Valley Association of Governments (CVAG) made an error on the state application that could cost them the funds to build the CV Link. The commissioners will meet to make a final decision. In an ongoing dispute  with billionaire Vinod Khosla, the California State Lands Commission decided to explore condemnation proceedings to gain public access to Martin’s Beach. If the Commission decides to proceed it will be the first time in 78 years that it has used the condemnation rules. The three-member panel directed its staff to study the use of eminent domain after two years of negotiations with Khosla to obtain an easement on his property failed.

A long-running conflict between environmental groups and the Tahoe Regional Planning Agency (TRPA) has ended with an appeals court upholding  the controversial TRPA plan, which sets regulations for future development in the Lake Tahoe Basin. Earthjustice appealed the lawsuit to the U.S. Court of Appeals for the Ninth Circuit after U.S. District Court Judge John Mendez dismissed it in April 2014. Plaintiffs Sierra Club/Friends of the West Shore felt the 2012 Regional Plan did not do enough to protect Lake Tahoe’s environment and TRPA felt the plan was a good combination of conservation and revitalization of communities. The residents in the area largely support the 2012 Regional Plan for its more walkable, bikeable and stormwater protecting vision. However, the challenge of affordable workforce housing is a complex issue with median home prices of $500,000 on the North Shore and $400,000 on the South Shore. This means many workers commute long distance, which causes a rise in pollution and traffic. TRPA believes by focusing on redevelopment of existing town centers will restore the outlying areas back to their natural function. (See prior CP&DR coverage .)  Report Suggests Coastal Homeowners Pay Lower Taxes, Due to Prop. 13 An analysis by real estate site Trulia found  that homeowners in coastal California cities with higher home values tend to pay lower property tax rates than those in low-priced inland cities thanks to Proposition 13. Under Proposition 13, property tax increases were capped with assessments only being reset to actual market values when homes were resold. This means the longer people own their homes, the more they benefit form the 1970s tax measure. The study finds that owners closer to the beach tend to stay in their homes longer and have home values rise faster than Riverside and San Bernardino counties. To gather this information, Trulia analyzed tax records, census data and home prices. If homeowners were paying 1 percent tax on their homes’ true values, local governments would have received $12.5-billion more in revenue. The study found more than 71 percent of Californians pay less than 1 percent effective tax rate and more than 40 percent pay an effective tax rate of 0.5 percent or less. Additionally half of the top 10 California cities with the lowest effective tax rates are in Silicon Valley where median home prices are above $1 million and four of the cities with the lowest rates are in coastal Southern California. SANDAG Threatens Eminent Domain over Trolley Station Site The San Diego Association of Governments has threatened  to invoke eminent domain on a piece of land at the site of a planned trolley station in Clairemont. The agency would like to build a parking lot there, while developers who own the property had planned a transit oriented project. The development includes roughly 40 condos, retail space and commuter parking for the new trolley station near the new $2.1- billion Mid-Coast Trolley set to open in 2021. SANDAG and Protea Properties will go to court Dec. 9 over the eminent domain case; SANDAG says it can force Protea to sell the land because it has an overwhelming need for 155 parking spaces. A principal at Protea feels he’s reached an agreement with SANDAG officials. Protea proposes 155 parking spaces, and give SANDAG the land as a construction yard for the trolley station for three years and allow an electrical station to be built on site for the trolley station. For that, SANDAG would pay $7.9 million instead of seizing the property and building those things for an estimated $15-million. State Auditor Slams Irwindale over Spending, Housing Programs The California State Auditor investigated the City of Irwindale and concluded  it continued to overspend and made questionable decision in the way it administers its housing programs. The city had not developed a long-term financial plan, not adjusted generous and costly programs it offers for its small population and city’s employees were paid salaries and benefits that consume 51 percent of the city’s general fund budget. Additionally the city forgave nearly $9.1 million in loans to low-income residents and planned to forgive another $10.2 million-and gave longtime residents an unfair advantage in these housing programs. Irwindale, known for gravel and sand pit mines, has received millions of dollars in mining tax revenue and thusly failed to develop a long-term financial plan to help weather future financial crises, instead the city has survived off one-time gains and revenue from the sale or redevelopment of pit mines. The California State Auditors’ recommendations are: the city should seek long-term solutions to balance its budget; the city should reduce its employee benefits; revise purchasing policy for contracts; and the Housing Authority should consider alternative options in providing low-income housing. Plan Forming to Upgrade Oakland Coliseum, Keep Raiders Oakland Mayor Libby Schaaf has announced  a vague financing plan to keep  the Raiders from moving to Las Vegas. The $1.3-billion plan includes $600 million in private money from former NFLer Ronnie Lott’s investment group, $200 million in public money, $200 million from the NFL, and $300 million from Davis (owner of the Raiders). The deal is being shuttled between the Oakland City Council and the Alameda County Board of Supervisors for approval. The city money, with help from the county, would upgrade the infrastructure at the Coliseum site. The city and county would lease 125 acres of Coliseum property to the Oakland City Pro Football Group. Around 90 acres would be reserved for the new 55,000-58,000-seat stadium, plus about 8,500 parking spaces. The last 35 acres would be devoted to a mixed-use retail development. The NFL will be voting as early as January on the Raiders possible move to Las Vegas. Los Angeles Streetcar Gets City Approval The Los Angeles City Council  approved , 12-0, the EIR for the proposed Downtown Los Angeles Streetcar through the city’s historic core. Measure M sales tax, that voters approved three weeks ago, includes $200 million to complete the streetcar project’s funding plan. The project is 3.8-miles of fixed-rail modern streetcar system targeted to open in 2020. The City Council certified the environmental findings and selected the 7th Street alignment without an extension to Grand Avenue as the final route to be built. Ridership is expected to be approximately 6,000 riders per day with a car coming approximately every 7 minutes during peak hours. (See prior CP&DR coverage .)  Quick Hits & Updates The San Diego City Council voted unanimously to permanently maintain  the city’s Bicycle Advisory Committee under the city charter after three years operating as a temporary panel. The motion was partly because the city’s Climate Action Plan calls for a sharp increase in commuting by bicycle. The permanent mechanism will advise the city on its evolving bicycle network, policies regarding bicycle safety, and infrastructure to improve bicycling as a form of mobility and recreation. Redondo Beach slow-growth activist Jim Light is suing  the city and developer behind a $400-million renovation of its waterfront. The lawsuit was filed in Los Angeles Superior Court and alleges violations of CEQA. Light won a previous lawsuit, and $313,000, against the city in 2010 over the right to vote on harbor development. Remnants of abandoned piers, wharves and warehouses in San Francisco Bay are poisoning  the Pacific herring with creosote, a distillation of coal tar used as a wood preservative and pesticide. The Pacific herring is a critical species to the ecosystem and described as a keystone species because it feeds many other animals in the Bay. The National Fish and Wildlife Foundation is spending millions of dollars to remove pilings. The Anaheim City Council gave the Anaheim Performing Arts Center Foundation exclusive right to negotiate  with the city to develop and possibly purchase the site of the City National Grove and develop into a much larger performing arts center. The council voted 3-2 to approve the project. BART's new people mover connecting  the Coliseum station to the Oakland airport has not made the projected $2-million profit in its first two years. It has instead cost the agency $860,000. Data from the Mercury News finds that ride-hailing services such as Uber and Lyft have consumed nearly all the new business from the airport’s growing passenger traffic. One obstacle is the $6 one-way fare to ride the connector. Los Angeles Metro has agreed  to pay $297.8-million to the contractor of the 405 Freeway expansion at Sepulveda Pass after year-long disputes over responsibility for schedule delays, design changes, and cost overruns. The 10-mile lane opened more than a year behind schedule. Metro directors will be formally asked to increase the project budget to nearly $1.61-billion. A group of residents are suing  Laguna Beach and the California Coastal Commission on the recent decision to ban short-term rentals in residential areas. The group, known as BEACH Vacation Coalition (Backing Everyone’s Access to Coastal Housing), alleges the two agencies are violating land-use laws. The lawsuit states the city failed to comply with CEQA and its guidelines and violates California planning and zoning law.

A review  of San Diego city records show that despite expenditures of billions of taxpayers dollars over the past four decades, more low-income units have been shut down than replaced. In the past six years, 10,000 affordable housing units have been removed from the city’s housing stock while that same number has been built since 1979. Additionally 9,290 single-room occupancy hotel rooms have been demolished, converted, or removed from the low-income housing stock. And 1,500 low-income rental units were converted to condos, with 749 units lost to property owners who chose not to renew federal rental subsidy contracts. Developers have paid more than $95 million in affordable housing fees, which have helped to bring back 2,980 units since 2005. The city is now looking at how to deal with the housing supply issue for low-income residents. Eureka May Flout Guidelines on Sea Level Rise The City of Eureka released  a new draft report that shows many of the city’s most important areas completely submerged under water by the year 2100. The California Coastal Commission issued a Sea Level Policy Guidance document  advises cities and counties to seriously plan for continued rising seas and base their planning policies on the worst-case scenario projections. The difference for Eureka for high and low projects are more than five feet and only two feet by 2100. However, Community Development Director Rob Holmlund said he disagrees with the Coastal Commission’s recommendations and thinks development can continue in the areas that are projected to be flooded by 2100. For instance if current buildings in projected flooded areas wanted to expand, the planning commission would have to deny the project. The City Council will decide at a future meeting whether they agree with Holmlund or the Coastal Commission’s guidelines. S.F. Rejects Project over Insufficient Analysis of Displacement The San Francisco Board of Supervisors unanimously rejected  a 157-unit Mission District development claiming that city planners failed to take into account the impact on displacement and gentrification in the heart of the city’s working-class Latino community. City planners must now complete further studies on the impact the development may have on the neighborhood. Many anti-gentrification groups have fought to have gentrification included as an environmental impact in CEQA analysis. This is believed to be one of the first project rejections based explicitly on concerns about displacement. Report Contends Low-Income Housing Does Not Depress Property Value Real estate website Trulia reports  that development of new low-income housing in San Francisco does not seem to negatively affect neighboring property values, as some stakeholders contend. The study looked at 90 projects built between 1996 and 2006 that qualified for affordable housing tax credits. They found no statistically significant difference in price per square foot between homes within 2,000 feet of the affordable site and those further away in the same neighborhood. This is consistent with other research conducted  in the past few years from Stanford, DC-based nonprofit National Housing Conference, and the National Association of Realtors. Poll: Californians Value Coastal Access A Field/ IGS Poll recently released  by the UCLA’s Institute of the Environment and Sustainability suggests beaches are central to Californians’ identity. However many still have widespread concerns over barriers to coastal access, including cost and availability of parking and overnight accommodations. The survey asked 1,800 registered voters and 90 percent of respondents said the condition of the coast is important to them personally with 57 percent saying “very important” and 33 percent “somewhat important”. The study also found households making less than $40,000 a year go to the beach considerably less frequently than their wealthier neighbors. The Coastal Act mandates that all beaches be accessible to the public. The California Coastal Commission has held several workshops to help enhance low-cost visitor services. Controversial Gaviota Coast Plan Adopted Santa Barbara County Supervisors voted , 3-2, to adopt a final draft of the Gaviota Coast Plan. The process has taken more than seven years and 130 public meetings. The 240-page document provides fair and balanced guidelines and regulations for agriculture, development, and public access between western Goleta and Vandenberg Air Force Base. The intentions are to support farmers and ranchers and preserving the rural landscapes. Those opposed cited issues with allowing the public to walk on trails through private land and issues with the approach to endangered-species habitat. San Jose to Loosen Restrictions on ADU’s The San Jose City Council has eased  restrictions on accessory dwelling units to help address increasing rents and homelessness. City officials estimates 2,721 illegal secondary units are in San Jose and not all of them are up to code. Last year the city only issued 13 permits. New state legislation and the changes by the city will make it easier to build accessory units. Bay Area Council estimates that if only 10 percent of Santa Clara County homeowners build a second unit it could add more than 34,000 units to the housing stock. The easing of restrictions include loosening design requirements, allowing secondary units to be built on smaller lots, reducing setbacks and relaxing required parking requirements. The changes will go into effect January 1st. Santa Clara Clashes with 49ers over Stadium Finances Santa Clara City Council voted to find the 49ers in violation  of the voter-approved agreement governing the management of the team’s 68,500-seat home field. The San Francisco 49ers two years ago moved to Santa Clara’s $1.2 billion Levi’s Stadium and are now facing criticism for lack of financial transparency. According to Mayor Lisa Gillmor the management firm ManCo has consistently neglected to share important documents with the authority including maintenance and operation plan, annual and five-year capital expenditure plans, and detailed budget reports. The council gave the team 30 days to come up with the documents or the city could move to take over stadium management on the grounds that the team has breached its lease deal. Attorneys for the team say all documents have been provided and are available. The City is worried they are spending resources that are not being reimbursed. SGC Releases Draft Guidelines for Community Climate Grants The Strategic Growth Council released  Draft Scoping Guidelines for the Transformative Climate Communities Program. This scoping document does not represent the full Draft Guidelines for the program, but is intended to provide an initial framework for public comment. We recognize that many areas presented in the document require additional work and discussion, and we look forward to public input to help inform development of the Draft Guidelines. The SGC plans to release the Draft Guidelines for the Program in late January or early February of 2017. Release of the Draft Guidelines will be accompanied by multiple public workshops throughout the state as well as additional public comment periods to inform development of the Program. Comments on this scoping draft are due to SGC by January 9, Comments are welcome at tccpubliccomments@sgc.ca.gov Quick Hits & Updates Instead of a last-minute push on transportation funding, Gov. Jerry Brown and legislative leaders declared  there would be no lame-duck negotiations this month as previously expected. The current two-year sessions of the legislature officially ends Nov. 30th and talks on a $3.6-billion transportation plan have been in limbo since adjourning in August. The new legislature will convene in January and Brown and legislative leaders remain committed to working on the issue. For the second year in a row the US Department of Housing and Urban Development listed Los Angeles as having the largest number of chronically homeless  people in the nation, nearly 13,000 and 95 percent live outdoors. Federal housing officials blame increasing rents and Congress’ failure to fund affordable housing. The new passenger rail service from downtown San Bernardino to the University of Redlands will officially be known as “Arrow.” The new branding would give SanBAG more flexibility in expanding its service throughout the county. The system was previously known as Redlands Passenger Rail Project. The Santa Cruz Planning Commission is concerned  about an environmental study of the Santa Cruz Municipal Wharf’s renovation and 2.5-acre expansion. The city’s Economic and Planning Departments filed a joint report that finds a full-length EIR isn’t required as most impacts could be mitigated to less-than-significant levels. More than 2,000 residents signed an online petition opposing the “Morphing of the wharf.” The Fresno City Council approved , 5-2, a resolution to strengthen the code enforcement unit dedicated to combating substandard housing. The two initiatives include an Anti-Slumlord Enforcement Team (ASET) and a landlord-tenant ombudsman. ASET has 14 personnel including six code enforcement inspectors and three attorneys dedicated full-time to substandard housing cases. The Strategic Growth Council will host  Lessons Learned Workshops to reflect on the 2016 round of the Affordable Housing and Sustainable Communities (AHSC) Program. The workshops are Dec. 8 in Merced, Oakland Dec. 12, and Long Beach Dec. 14th. AHSC program staff will facilitate roundtable discussions on a variety of aspects and will take feedback and suggestions during the sessions. The Environmental Defense Center (EDC) and Santa Barbara Channelkeeper announced they are suing  to block the federal Department of the Interior from issuing new permits for offshore fracking in Southern California and the Santa Barbara Channel. The target of the lawsuit is the Bureau of Safety and Environmental Enforcement. Supporters for California secession  took first formal steps by submitting a proposed ballot measure to the state attorney general’s office in the hopes of a statewide vote as soon as 2018. The Yes California group has been around for two years and says it is based on the California taxpayers paying more money to the federal government that the state receives in spending. The group already has 13,000 volunteers to help collect the required signatures to be placed on the ballot. (See prior CP&DR coverage .)

The San Diego Unified Port District approved the joint venture of 1HWY1 as the developer for the $1.2 billion Seaport San Diego project. Seaport San Diego will replace the existing 1980s-era Seaport Village with a waterfront development with 1,077-room hotel, office space for port-related businesses, a charter school, a park, and aquarium and amusement park rides. The port will take in an estimated $22 million in rent each year by the time the 10-year project is complete – nearly ten times as much as the current Seaport Village generates. The project must still get California Coastal Commission approval. Meanwhile, one of the key players in 1HYW1, Bartell Hotels, has recently been accused of making potentially improper donations to defeat Measure D, a hotel-tax proposal. Bartell Hotels donated $43,350 to the San Diego County Taxpayers Association’s anti-Measure D campaign; five days later, the taxpayer association paid $46,000 to a newly formed Manolatos Nelson Murphy Advertising, which is associated with Port Commissioner Bob Nelson. Nelson insists that there is no conflict of interest. Los Angeles Dominates Report on Dangerous Intersections A new report from law firm Estey & Bomberger catalogs the most dangerous intersections for pedestrians in California. Over 435,000 collision records in 2015 were analyzed to figure out which intersections were the most dangerous for pedestrians and vehicles. Two of the three most dangerous intersections are located in the Northridge neighborhood of Los Angeles. Devonshire Street and Reseda Boulevard was the most dangerous intersection with 41 injuries and Balboa Avenue and Nordhoff Street was third. Southern California dominated the study with only 10.5 percent of intersections (47) occurring outside this area. Additionally 221 out of 444 intersections were in Los Angeles. The report comes out ata time when many California cities, including Los Angeles, are implementing “Vision Zero” goals to reduce traffic fatalities (see prior CP&DR coverage ). League of Cities Sets 2017 Goals Leaders of the League of California Cities met in Newport Beach early November to develop the League’s 2017 strategic goals . The meetings included leaders from various divisions, departments, policy committees, diversity groups, board of directors, as well as various city officials. These goals include increasing funding for critical transportation and water infrastructure; developing realistic responses to the homeless crisis; improving the affordability of workforce housing; securing additional funds for housing; and addressing public safety impacts of reduced sentencing laws. Most of the solutions involve increasing state and federal financial support and reducing regulatory barriers. Reports Detail Exodus of Homeowners from California Data analysis firm CoreLogic has found over the past 15 years for every two homebuyers who moved to California, five others moved out. Most of the homebuyers leaving the state fled to Arizona and Texas. This exodus was primarily driven by the search for more affordable housing from the low and middle-income workers. Between 2005 and 2015, only 21.5 housing unit permits were filed for every 100 new residents – this puts California second to last with only Alaska with fewer (16.2). In that time frame, 625,000 more U.S. residents moved out of California than into it. Another study by rental site Apartment List  found that Los Angeles millennial population decreased by 7.4 percent over the last 10 years. The county has seen overall population growth, just not urban millennial dwellers. A reasoning for this is the stagnant incomes with increasing rents. Airbnb, San Francisco Reach Detente After years of acrimony and battles over regulation of short-term rentals, Airbnb has announced it is prepared to work with San Francisco’s regulations in order to remain in the city. The company will provide all local hosts’ names, addresses, and guest stays as part of the mandatory registration system the city has requested. This comes after Board of Supervisors passed , 6-2, a regulation that would shorten private home, room, or apartment rentals to no more than 60 days a year. The city also has held Airbnb accountable for when unregistered rooms are booked, which the company sued the city for and will most likely lose. Airbnb announced starting November 1st it would not allow San Francisco residents to list multiple properties on the home-sharing website. HUD, VA to Provide Funds for Homeless The U.S. Department of Housing and Urban Development and the Veterans Administration announced that $18.5 million will be distributed to 39 local public housing agencies across the country to provide housing for an estimated 2,100 homeless veterans. City of Los Angeles Housing Authority received more than $1.4 million and the County just over $1 million which should house an estimated 269 veterans. Orange County Housing Authority received $697,032, Riverside County $628,320, and San Bernardino County $483,564. Quick Hits & Updates The Placer County Board of Supervisors approved , 4-1, a development proposal for Squaw Valley ski resort that includes an 850-room new hotel, condominiums and residential units as well as an entertainment complex. The project has put Lake Tahoe environmentalists, ski resort officials, and developers against one another. The 25-year plan would cost close to $1 billion and include a 96-foot tall tower. (See prior CP&DR coverage .) Beverly Hills Unified School District has filed a new lawsuit against Los Angeles Metro to block plans to run the Purple Line subway underneath Beverly Hills High School. The challenge says the tunnel “will cause permanent and irreparable harm” to historic buildings and jeopardize a $340 million expansion of the school. In August 2016 a judge declined to halt the construction but ruled that an environmental review of the extension did not comply with NEPA. (See prior CP&DR coverage .)  Planned affordable housing on San Francisco’s Treasure Island has a gap of nearly $380 million when construction costs increased from $600 million to $970 million. The 2,173 units that were supposed to be made affordable for those earning 120 percent of the area median income ($120,000 for family of four) may increase. Nine months after Los Angeles City Council unanimously adopted a comprehensive plan to end homelessness, the first progress report reveals halting progress. Proposals for storage lockers and toilets for homeless people are stalled, new shelter capacity is being added slowly and city bureaucracy is causing things to move slower than expected. The San Diego City Council approved a $79 million plan to remove cars and parking in the center of Balboa Park. The Plaza de Panama is expected to open by end of 2019 and include 797-space paid-parking garage south of the Spreckels Organ Pavilion, a 405-foot “Centennial Bridge” off the Cabrillo Bridge, and redesigned plazas and roadways. OCTA has awarded a $1.2 billion design-build contract to add one regular lane in each direction and an express lanes toll facility on the I-405. According to the EIR, travel time from SR 73 to I-605 will take 29 minutes during rush hour and 13 minutes on the Express Lanes by the year 2040, which now takes around two hours in carpool lanes. San Francisco’s independent tax arbiter says AT&T Park is worth over $100 million more than the Giants claim. This is the latest ruling in a long-running fight over how much taxes the baseball team should pay on its waterfront stadium. For instance the Giants say the park was worth $232 million in 2014, and Assessor-Recorder set the value at $407 million. San Francisco Mayor Ed Lee introduced legislation that would require a conditional use permit for indoor agriculture including marijuana cultivation in response to the recent legalization of recreational marijuana in California. These interim zoning controls for areas zoned light industrial uses are intended to give the city time to adopt more permanent measures.

In 2002, the Grizzlies AAA baseball team moved into Chukchansi Park in the heart of downtown Fresno. Like many other such “catalytic” stadiums across the country, it was meant to spark development and bring life to California’s most sprawling, poorest big city. In the past 13 years, the Grizzlies have muddled along with but a single division title. Aside from a few new breweries and tech firms, the city’s downtown has not fared much better. Now, the city’s boosters and public officials are putting their faith in a brand-new game plan. Last month, the Fresno City Council approved a package of plans and regulations for greater downtown Fresno, including the urban core and surrounding neighborhoods. The plans serve a dual purpose: they are meant to promote a new style of denser, more progressive development and they are meant to eliminate bureaucratic impediments that gave would-be developers fits. In October the council voted, 7-0, to approve the Downtown Neighborhoods Community Plan, the Fulton Corridor Specific Plan for the city’s main street, and a new Downtown Development Code. Taken together, the new regulations set forth a comprehensive vision for a 7,290-acre area. They promote greater densities, a mix of uses, new urban design standards, and, perhaps most importantly, provide clarity for by-right development. The plan envisions up to 10,000 units of infill housing and 15,000 new residents.

The developers of Newport Banning Ranch are suing  over the Coastal Commission’s decision to reject a plan to clean up the 401-acre oilfield, and build 895-single family homes, 75-room resort, hostel, and commercial space. The developers are seeking $490 million in damages for failing to approve the project and for taking property without proper compensation. The commission recommended a scaled-down version with half as many homes, which the builders say was not economically feasible and effectively rejected any development. Newport Banning Ranch’s senior project manager said in a prepared statement: “There were an extraordinary and unprecedented amount of procedural errors, misinformation and errors in fact that did not provide the opportunity for a balanced decision.” Private Firm Takes over Last Publicly Managed Housing Project in S.F. The City of San Francisco has sold  its last public housing building to private affordable housing developers after 76 years of management. Since 2014, the Housing Authority has relinquished control of 29 buildings, totaling nearly 3,500 units. Many of the buildings fell into disrepair after federal funding cuts led to cockroach infestations, elevator breakdowns, and security risks. The new owners are required to renovate the properties. The Housing Authority will own the land, and nonprofit or for-profit developers are lent money from the Housing Authority, as well as federal funds, private investments from Bank of America, and about $100 million from the city to pay for renovations. The Housing Authority will ensure the projects remain affordable, administer Section 8 subsidies, oversee the waiting list, and play an oversight role to make sure the buildings stay in good shape.  Projects in S.D., S.F., and Santa Monica Win Highest ULI Honors The Urban Land Institute Awards for Excellence recognizes  the full development process of a project, not just the architecture or design. This year, ULI honored eleven projects worldwide, three of which are located in California. A midrise residential tower, Celadon at 9th and Broadway in San Diego incorportes "sustainable design" and "provide affordable housing and healthy living standards all while making a reasonable return on investment." Ocean Avenue South is a mixed use development in Santa Monica described as a "model for high density urban master planned public-private development focused around public access and connectivity. The Strand in San Francisco is a renovated movie theater turned into a nonprofit performance space that "represents a key component to the revitalization of this long disinvested part of the city." Sacramento Certifies Railyard EIR, Draws Opposition from Unions The Sacramento City Council voted certified  the environmental impact report for the railyard development that includes the construction of a new, privately financed, 19,621-seat stadium. Earlier this month two of Sacramento region’s largest labor organizations, Sacramento Central Labor Council and UNITE HERE Local 49, said they oppose  the MLS stadium in the downtown railyard because Sacramento Republic FC has not committee to allowing stadium food-service workers to organize. The letter the labor leaders wrote to City Council includes a statement indicating that food-service workers at other Major League Soccer stadiums in California are free to organize. Since the City Council approved the project, executive director of the Sacramento Central Labor Council said the union was withdrawing its opposition and was willing to work with the project developers to ensure good paying, quality jobs were brought to the area. Now a growing problem is the concern of the project not including enough affordable housing units. Airbnb Loses S.F. Lawsuit, Faces Further Restrictions San Francisco Supervisor London Breed introduced legislation that would put a 60-day hard cap  on the number of days a housing unit could be rented out as a short term rental. Registered hosts would be required to live on the premises for at least 275 days of the year. Airbnb has pushed back against these new rules through lawsuits. Meanwhile, a federal judge ruled against  Airbnb’s lawsuit challenging a San Francisco regulation that forbids the company from listing homes from hosts who have not registered with the city. While Airbnb lost the lawsuit, the ordinance is suspended because the city does not have a functional verification system to enforce the rules. Study Reveals Megacommutes in Silicon Valley Marin Economic Consulting released a study that showed  the Silicon Valley “megacommute”- single motorists driving more than 90 minutes one way- is worse than in LA. The study found in 2015, 5.3 percent of solo drivers in the Bay Area faced megacommutes while only 4.6 percent in LA County. Another study by Joint Venture found housing development is falling behind the pace of population and job growth in Santa Clara County, San Mateo County and San Francisco. From 2007 to 2016, these counties added a combined 344,000 residents but gained only 69,500 in housing units. Shirey to Depart after Five Years as Sacramento City Manager Sacramento City Manager and veteran member of the California planning and land use community John Shirey is completing  his contract this week after five years on the job. Shirey is credited with improving the city's finances and spearheading the development of Golden 1 Center arena. Mayor Kevin Johnson said  Shirey “was the right man for the job.” Shirey had previously led the California Redevelopment Association. He presided over the organization when Gov. Jerry Brown proposed dissolution of redevelopment and negotiated for a compromise. That fight ultimately ended in a court ruling that backfired on the CRA, calling for full dissolution of redevelopment. When Shirey announced his departure at the beginning of the year, some questioned the timing. They said that Shirey should stay on to provide continuity after Johnson's departure due to term limits. Assistant City Manager Howard Chan will serve as interim city manager at least until June, with a permanent manager to be named by Mayor-elect Darrel Steinberg. Shirey has not indicated what his next move will be. Quick Hits & Updates The final environmental impact report for a proposed streetcar  line in downtown Los Angeles has bee released. It discusses topics such as speed, ridership estimates, and safety concerns. The four-mile project proposed by City Councilman José Huizar in 2008 will cost approximately $250 million. The Los Angeles Police Department is treating three acts of vandalism  at art galleries in Boyle Heights last month as possible hate crimes. These acts attacked “white art” and are part of the disconnect between the working-class families and the more than a dozen art galleries that have moved into the area. Activists and community members are worried about gentrification and the families being pushed out of their homes. Los Angeles’ summer was the worst smog  season in six years. Emissions in Southern California have been decreasing over the past 20 years, according to SCAQMD. Smog, also known as ozone, is nitrogen oxide and volatile organic chemical emissions from vehicles, and natural sources like trees with sunlight and stagnant air. SCAQMD is petitioning the U.S. EPA to create stricter emissions standards for truck engines. San Francisco City Attorney Dennis Herrera has filed suit  against the developer of the sinking Millennium condominium tower near San Francisco’s financial district, alleging the builder failed to disclose the building's settlement issues. Many of the owners of units would like to file criminal chargers against the developers, as many feel they purchased units without complete knowledge. The engineers constructing the building said 6-8 inches were expected for the building to sink but it is currently at 16 inches with an estimate of at least 30 inches total. The CV Link hiking and biking path has received  $24.3 million in grant money from the state, bringing the total to $100 million for the planned pathway. The mixed-use 50-mile pathway will connect the Coachella Valley. The CV Link is a divisive issue and residents in Indian Wells voted on it last week. To spur a long desired expansion of the Los Angeles Convention Center, the city is now looking  into a public-private partnership with AEG, which developed both the Staples Center and L.A. Live.

In the middle of the most important urban renaissance in a century, the people of the United States have elected a president who lives in a 58-story mixed-use building in midtown Manhattan. Whatever you think of him, the president-elect is a man who ought to understand cities. He has lived in America’s largest city his entire life. He comes from a family that has developed and managed urban real estate for three generations. The glitziness of major cities – New York, Chicago, Los Angeles, even Pennsylvania Avenue in Washington, D.C. – has always had a magnetic appeal for him. And yet Donald Trump’s election may be the most anti-urban act on the American political stage since the nomination of William Jennings Bryan 120 years ago, when the populist Nebraskan railed against New York bankers in a fiery speech at the Democratic convention. Trump’s political base is anything but urban. It is white, older, exurban and rural, and angry. His supporters are nothing like the Manhattan social elite he has always aspired to be part of. (He lost his home county 82%-9%.) They are more like the Archie Bunkers he lived among – admittedly, as a rich kid – growing up in Queens. On the campaign trail, Trump occasionally brought up issues of urban blight – especially in African-American neighborhoods – but he usually did it in an old-fashioned way that made a lot of political observers think he was simply dog-whistling his white supporters rather than actual appealing to blacks and other urbanites. And he never proposed any urban-centric policies, insisting instead – in surprisingly classic Republican fashion – that he would stimulate so much economic growth that everybody would benefit. All of which probably means that the federal government won’t be doing much of anything for cities over the next four years. Trump will try to revive American manufacturing with protectionist policies. He may seek to deport millions of immigrants, many of whom live in major cities. And in all likelihood he will otherwise be held hostage by the traditional tax-cutting rhetoric of the Republican Party, which will leave him no money to throw at the cities even if he wanted to. Fortunately, this is a time of great energy, creativity, and prosperity for American cities. Just as states become laboratories of democracy when Ronald Reagan cut back the role of the federal government in the 1980s, now cities are becoming the urban laboratories of democracy, pilot-testing new policies and ideas that might later spread across the country to become commonplace. Ironically, even as most of them are controlled by progressive Democrats, American cities are the engines of our nation’s prosperity – and practical Republican business leaders understand this pattern. Metropolitan areas – led by cities and inner suburbs – are now generating most of the nation’s growth in population, jobs, and wealth. This is even true in Texas, where most economic growth and virtually all economic growth is occurring in four big metropolitan areas even as the legislature is largely controlled by rural interests. There is little reason to expect that will change under President Trump. Because of their density and flexibility, cities are at the epicenter of the tech innovation that is changing the way people live, travel, and work on a daily basis – innovation that is driving economic growth across the nation. Car-sharing services such as Uber began and thrived first in big cities and now are expanding outward into suburbs, where they are gradually becoming part of the transportation system. The same is true for food delivery services, Amazon drones, and a host of other “disruptive” emerging businesses. And the educational institutions that incubate a lot of these innovations – such as our host institution, Rice University – are still located in the center of major cities. It’s true that these emerging businesses don’t create as many jobs as the old factories used to (not that new factories create many jobs these days for anybody other than robots), but they are at the cutting edge of the 21 st Century economy and the urban-centric approach to innovation and adoption of new ideas isn’t going to change. Cities are also at the epicenter of the greatest economic and social problem of our time -- the growing gap between rich and poor – and increasingly the solutions appear likely to come from the ground up rather than the top down. One characteristic of both Democratic and Republican approaches to growth and opportunity over the past few decades has been a top-down approach from Washington. If you want to grow the economy or expand economic opportunity, you do something big at the federal level – a huge jobs program, a huge tax cut. But such moves are increasingly hard to make in a polarized governmental system and because most of the big moves have already been made (huge tax cuts, for example), new moves increasingly occur only on the margins with limited effect. Trump will try to make a big economic move with protectionist tariffs, of course, but his own party is divided on them and it’s likely that they’d create a deep recession in the short term because of the way the United States is integrated into the world economy. On the ground in cities, however, it’s different. Some of the solutions involve new ways to connect people to opportunities -- as the Upskill Houston efforts attempts to do by helping young adults to get the technical training they need to get good blue-collar jobs. More and more, you’ll see cities and metro areas initiating these moves, in large part because that’s where the jobs and people are located; and then the moves that work will be scaled across the country. Similarly, it’s clear that there is an increasing trend at the local level – and, to a lesser extent, at the state level -- toward New Deal-style economic policy that seeks to lift people up. Though it’s going nowhere in Texas, for example, the move toward higher minimum wages is gaining traction across the country – and not just in blue states. Several red states have passed minimum wage increases at the ballot box – Arizona approved a $12 minimum wage yesterday – and cities are experimenting with a wide variety of minimum wage policies as well. Though conservative thinkers argue that minimum wage stifles economic growth and kills jobs, the practical reality is that cities across the country will tinker with minimum wage systems, providing evidence for states and eventually the federal government as to what works and what doesn’t. Unlike Congress or even state legislatures, cities don’t have to come up with blunt-instrument solutions in order to win over ideological legislators. They can craft nuanced approaches to policy and – as many mayors have shown – use big data in clever ways to monitor the effectiveness of those policies. The bottom line is that on domestic and economic policy in particular the federal government is increasingly irrelevant. As Bruce Katz of the Brookings Institution likes to say, the federal government today is really just a health insurance company with an army. Whatever you think about Donald Trump as president – whether that inspires you or terrifies you – the federal government under any president has limited running room to deal with the fundamental issues of economic innovation and the rich-poor gap. Meanwhile – unlike during the “Laboratories of Democracy” era of the 1980s – most states are stuck on one side or the other of the red-blue ideological divide, pursuing predictable policies depending on which party controls the statehouse and the legislature. Which means that even with Donald Trump as president, the future of America belongs to the urban laboratories of democracy. This blog originally appeared in the Urban Edge , published by the Kinder Institute for Urban Research at Rice University.