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Driven in part by the ongoing controversy over the Southeast Development Area, the City of Fresno and Fresno County have agreed to a wide-ranging agreement to share property taxes in the SEDA and other areas located in the city’s sphere of influence.

CP&DR Vol. 39 No. 12 December 2024 Report

2024 might have seemed like a quiet year for  CP&DR news. On the one hand, there was no single mega-story that defined the year or attracted a inordinate number of readers.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Federal Government Considers Protections Monarch Butterfly In Coastal Counties The U.S. Fish and Wildlife Service has proposed listing the Western monarch butterfly as threatened under the Endangered Species Act, citing a dramatic population decline of over 95% since the 1980s. The proposal includes designating critical habitat along California's coastline, where these monarchs spend the winter, specifically 4,395 acres across several counties including Alameda, Monterey, Santa Cruz, Ventura and Santa Barbara. This designation aims to protect essential overwintering sites and prevent further habitat destruction, though it would not affect private or state lands unless federal funding or permits are involved. Conservationists hope the listing will provide necessary protections and encourage habitat restoration, including planting milkweed and nectar plants. The public is invited to comment on the proposal until March 2025, with the potential for broader conservation efforts across the monarch's range, including private and agricultural landowners. Bay Area Plan Aims to Protect against Sea-Level Rise The Bay Area adopted its first comprehensive plan to protect over 400 miles of shoreline from the impacts of sea level rise, including flooding of infrastructure and neighborhoods. The Regional Shoreline Adaptation Plan , which was unanimously endorsed by the Bay Conservation and Development Commission, provides cities and counties with the latest science and best practices to adapt to rising seas, although its success depends on widespread local implementation. While the plan outlines strategies like seawalls, levees and nature-based solutions, there are concerns from environmental groups about its lack of enforceability and from business leaders about the absence of private investment solutions. The plan divides adaptation efforts into eight areas, urging local governments to assess vulnerabilities and consider how rising groundwater might affect communities, in addition to coastal flooding. Despite some pushback, the state is offering grants and technical support to help municipalities meet the plan's requirements, with high-risk areas such as San Francisco and Oakland identified as priorities for action. (See related CP&DR coverage .) Budget Cuts Jeopardizes Revitalization of San Diego's Core San Diego has abandoned its Civic Center Revitalization Plan due to projected budget deficits of nearly $1.5 billion over the next five years. The plan, proposed by Mayor Todd Gloria in 2022, aimed to sell or lease parts of the city's aging Civic Center complex to fund a new City Hall. However, following the rejection of a proposed sales tax increase to help address the budget shortfall, Mayor Gloria announced that the new City Hall project would not move forward and work on the plan would cease. The city will instead focus on renegotiating or terminating office leases for downtown spaces and attempt to move more employees back into the existing Civic Center buildings. Despite earlier efforts to market the Civic Center property for development, there was little developer interest, and a $2 million study evaluating the new City Hall proposal will be left incomplete. Fresno Council Sends Industrial Specific Plan Back Goes Back to Drawing Board The Fresno City Council unanimously rejected the South Central Specific Plan, a long-awaited land-use policy for the city's heavily industrialized southern region. The plan, seeking to reduce industrial land use by 17%, faced opposition on multiple fronts. Business leaders feared the plan would make Fresno less competitive for investment, while environmental groups argued it failed to adequately protect public health, particularly around areas like Orange Center Elementary. The plan had been in the works for five years. Councilmembers expressed hope that a revised, more business-friendly version of the plan would be developed, with some calling for less restrictive measures on industrial growth in line with state law. Following the rejection, an ad-hoc subcommittee will be formed to create a new version of the plan, with a resolution expected to come before the council in early 2025. Congressman Makes a Play to Kill High Speed Rail Representative Kevin Kiley, a Republican representing the 3rd Congressional District (Sacramento suburbs and Eastern Sierra), announced plans to introduce a bill that would eliminate federal funding for the California High-Speed Rail project. The Department of Government Efficiency recently criticized the project for its significant delays, cost overruns and the $6.8 billion in federal funds already received, as well as the additional $8 billion requested. Kiley's bill would make the project ineligible for further federal funding, redirecting resources to other infrastructure needs. Kiley argues that the project has failed due to political mismanagement and that taxpayer funds should be used to address critical issues like improving California's deteriorating roads. (See related CP&DR coverage .) Study Evaluates Policies to Promote Housing in Six States A recent study out of the Terner Center at UC Berkeley compares six states across the country utilizing “pro-housing” designations to reward and encourage compliance with state housing and zoning laws. All six state programs encourage land use and zoning changes to promote housing, including promoting the construction of accessory dwelling units. These programs all emphasize the importance of engaging stakeholders early to build support and align interests among policymakers, developers and housing advocates. The study found successful implementation also requires integrating these initiatives with broader state policies, including incentives, penalties and requirements for local jurisdictions. The study concluded by refining these programs through ongoing evaluation and feedback, states can improve their effectiveness, inform federal housing efforts and create a stronger foundation for removing local barriers to housing production nationwide. (See related CP&DR coverage .) CP&DR Coverage: Reverse-Reverse CEQA; Malibu-area Vineyards A ruling from Lake County has been upheld by an appellate court, meaning the county still has not complied with the California Environmental Quality Act in trying to approve a controversial resort in Guenoc Valley north of Napa Valley. the issue was the impact of the new project on the ability of existing residents to evacuate - a kind of “reverse-reverse-CEQA situation. Much of the ruling hinged on an “errata” that the county added to the EIR in between two hearings held by the Lake County Board of Supervisors to consider the project. But the appellate court said that the errata didn't contain information that was specific enough. Elected officials don't always approve the project analyzed under CEQA. But that doesn't necessarily mean environmental documents have to be changed or recirculated. That, at least, is the conclusion of the Second District Court of Appeal in the latest legal battle over vineyards in the Santa Monica Mountains in Los Angeles County. The Malibu Coast Vintners and Grape Growers Alliance, Inc. sued the county, claiming that the complete ban created an unstable project description under CEQA and constituted significant new information that required recirculation of the EIR. The appellate court disagreed. The court basically concluded that the change from heavy regulation of vineyards to a complete ban was an insignificant change that neither destabilized the project description nor triggered recirculation. Quick Hits & Updates Sonoma County's plan to redevelop the 945-acre Sonoma Developmental Center property has hit a setback after the Board of Supervisors voted to decertify the environmental impact report (EIR) that had cleared the way for a mixed-use development, affordable housing and a climate research center. This decision follows a lawsuit filed by a group called Sonoma County Advocates for a Livable Environment, which argued the EIR violated CEQA. The board is still considering a revised proposal for the site and plans to measure its environmental impacts before moving forward. (See related CP&DR coverage .) The Port of San Diego and the San Diego County Local Agency Formation Commission have approved a Memorandum of Understanding (MOU) to establish a collaborative framework for their future relationship, ensuring open communication and alignment of objectives. The agreement outlines provisions regarding jurisdiction, changes to Port territory, the Sphere of Influence, financial contributions and Municipal Services Reviews, with the first review planned for 2026. Both agencies expressed their commitment to transparency and continued partnership for the benefit of the San Diego region. A judge's decision allows the annexation of much of the Coastside to the Midpeninsula Regional Open Space District to move forward, completing the final procedural step for the expansion. While the district celebrated the victory, opponents, including the Half Moon Bay Coastside Foundation, vowed to continue legal battles, arguing that the annexation process involved procedural errors and seeking to bring the issue to a public vote. New research from UC Davis reveals that soil in the Salton Sea air basin, fueled by irrigation and excess fertilizer, is a major source of nitrogen oxides, contributing significantly to smog in Southern California. This finding highlights the need for better management of agricultural practices in the region, as pollution from soil bacteria has been largely overlooked by air quality regulators, exacerbating respiratory issues for local residents. The California Transportation Commission (CTC) recently adopted updated guidelines for the State Highway Operations and Protection Program (SHOPP), incorporating provisions from S.B. 960, a new law requiring Caltrans to include safe walking and biking accommodations in its projects. Following pressure from advocates and a letter from Senator Scott Wiener, CTC staff amended the guidelines to ensure bicycle and pedestrian projects are eligible for SHOPP funds and to mandate the inclusion of complete streets elements, such as bike and pedestrian safety improvements, in future highway projects. A developer has proposed transforming the soon-to-be vacated Chevron headquarters in San Ramon into a large housing development, with the first phase of the Orchards project offering 426 homes, retail space and a park. The broader plan, by Sunset Development, aims for 2,510 homes across three phases, including affordable units, as part of a larger effort to turn the Bishop Ranch area into a mixed-use community with 10,000 new housing units and amenities. The Placer County Local Agency Formation Commission approved the annexation of 2,700 acres to the city of Lincoln, a smaller version of a previous proposal that failed after voter protests. The new plan, which is expected to bring residential and commercial development, is projected to include 5,500 homes and 3 million square feet of commercial space, with infrastructure work set to begin in 2026. Moovit's 2024 Global Public Transport Report reveals key trends in public transit across major U.S. cities. In California, San Francisco commuters enjoy the shortest average commute times (43 minutes), while Los Angeles riders face longer commutes averaging 47 minutes. Miamians endure the longest commutes (52 minutes) and also have the longest wait times, averaging 21 minutes per trip. Nearly half of renter households in the San Francisco metro area are considered "cost-burdened," spending over 30% of their income on housing, which is a troubling trend seen nationwide, though the Bay Area's burden rate is lower than in some other large metros. Despite high rent costs, areas like San Jose and other regions with higher incomes experience lower burden rates, while cities in Florida and the Sun Belt have seen dramatic increases in rent relative to income, exacerbating housing affordability issues.

In a departure from the actions other major cities in California, the Los Angeles City Council voted on December 10 to approve a citywide upzoning designed to meet L.A.’s housing targets – but didn’t touch single-family zoning.

In the face of declining attendance at services and the burden of relatively large parcels of land — often acquired decades ago — what some churches want for Christmas is… housing.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Over $2 Billion Made Available for Affordable Housing Gov. Newsom announced new tools and funding to accelerate the development of permanent supportive housing for veterans and others in need, addressing homelessness and housing affordability. The state is making $2.145 billion in Prop 1 funding available, alongside streamlined permitting processes to help local governments acquire and rehabilitate existing buildings or construct new housing more quickly. Homekey+, part of the Prop 1 initiative, will support both the acquisition of existing properties and the construction of new supportive housing projects, with a focus on cost containment and faster timelines. Local governments and tribal entities are encouraged to apply for funding, with applications starting in January 2025. The initiative aligns with California's broader strategy to address homelessness, mental health and substance use issues, backed by voter-approved reforms and funding in Proposition 1. Placer County Sued over Approval of Palisades Tahoe Village The League to Save Lake Tahoe and Sierra Watch have filed a lawsuit challenging Placer County's approval of the Village at Palisades Tahoe development, citing concerns over its environmental impacts at the storied ski area formerly known as Squaw Valley. The proposed development, which dates back at least 12 years (see prior CP&DR coverage ) includes 300,000 square feet of commercial space, nearly 1,500 bedrooms and over 2,000 parking spaces, potentially increasing traffic and air pollution in the Lake Tahoe Basin. The project's environmental reports predict it will add 3,300 new daily car trips, contributing to the region's pollution and worsening road damage, which already impacts the clarity of Lake Tahoe's water. Despite the League's proposals for a smaller, phased project to reduce these impacts, Alterra Mountain Company, backed by the private equity firm Alterra, rejected these alternatives. Community groups, residents and local businesses have also voiced strong opposition to the development, citing concerns about worsening traffic and public safety. Contrary to Fair Housing Laws, New Housing Concentrated in Low-Income Areas A report from the UCLA Lewis Center for Regional Policy Studies finds that most cities, roughly 80%, disproportionately plan new housing in lower-income, environmentally compromised neighborhoods, contrary to state mandates that encourage housing in higher-opportunity areas. While cities that proposed rezoning for new housing sites showed better fair housing results, the majority of cities relied on existing zoning, which perpetuates income and racial disparities due to the location of multifamily zones. The analysis, which looked at 199 cities' housing elements statewide, suggests that inertia, political pressure and legal challenges are major reasons cities avoid rezoning, even though state laws offer penalties for non-compliance. The report also critiques California's housing element laws, which impose complex requirements that may discourage cities from rezoning in more affluent neighborhoods or using mixed-use zoning to meet low-income housing targets. CP&DR Coverage: November 2024 Local Ballot Measure Results This month's local land use ballot measures addressed some common issues - tenant protections, open space, and broad notions of local control included - and emerged with little by way of discernible patterns. Most significantly, a measure to give Huntington Beach voters broad control over housing prevailed whereas a similar measure - in similarly iconoclastic Redondo Beach - failed. Tenant protections, including rent control, passed in traditionally liberal cities and failed in more conservative and residential cities. countywide sales tax measure for transportation in San Diego County failed, by a slim margin. San Francisco's high-profile attempt to shut the Great Highway to cars prevailed, as did several measures to strengthen urban growth boundaries. Finally, one of the most dramatic conflicts this year took place in Eureka, where voters thwarted the will of a local multimillionaire who wanted to prevent downtown parking lots from being redeveloped into housing. It was, in short, a mixed bag - and also a poignant microcosm of land use debates in California. Quick Hits & Updates The City of Norwalk has adopted a plan to redevelop a former youth prison site into the Norwalk Transit Village, a 32-acre mixed-use development featuring 770 homes, commercial space, a hotel, and parks, with 40% of the housing set aside for low- and very low-income households. This project is part of Norwalk's 2021-2029 Housing Element, but it comes amid tensions with the state over a controversial homeless shelter ban, which has led to legal actions and threats to decertify the city's housing plan. The Link21 project, aiming to build a second Transbay Tube, announced that it favors the use of standard gauge rail for the new rail crossing between Oakland and San Francisco. Standard gauge, which is compatible with other regional rail systems like Caltrain and Amtrak, would improve regional connectivity and allow for more frequent intercity service. However, BART's union, SEIU 1021, opposes the recommendation, advocating for the continued use of BART's unique broad gauge system, while planners from Capitol Corridor and the California State Transportation Agency support the shift to standard gauge. The Federated Indians of Graton Rancheria are suing to block the Koi Nation's proposed Sonoma County casino, claiming the project threatens their tribal sovereignty and ancestral rights, as the land in question is outside the Koi Nation's historic territory. The lawsuit challenges the federal approval process, arguing that the Koi Nation's ties to the area are insufficient and that the project could harm local communities and the environment. The EPA has urged California regulators to protect tribal cultural practices, particularly subsistence fishing, in the Sacramento-San Joaquin Bay Delta, which is facing an ecological crisis. EPA administrator Martha Guzman criticized a proposal by Governor Newsom that would allow voluntary water cutbacks with limited oversight, calling for stronger accountability. Environmental groups and tribes have filed a civil rights complaint, arguing that current water policies harm Native communities and their cultural reliance on the Delta's fish populations. Sentinel Peak, the owner of the Inglewood Oil Field, is suing California over Assembly Bill 2617, a law that mandates the closure of low-production oil wells in the field by 2027 and the plugging of all wells by 2030, with penalties of $10,000 per well per month for non-compliance. The company argues the law is unconstitutional, claiming it imposes excessive fines and unfairly targets its operations while other similar oil fields are not subject to the same requirements, but environmental groups and lawmakers defend the legislation as necessary to protect public health and the surrounding communities. A Superior Court judge ruled in favor of YIMBY Law in the organization's lawsuit against the city of Los Angeles for illegally denying 78 affordable homes located on Olinda St in Sun Valley. The project proposal falls under the original form of Mayor Karen Bass' Executive Directive 1 ( ED1 ) which streamlines 100% affordable housing projects. The court validated YIMBY Law's interpretation of the interaction between California state law and ED1. The project will now return to the entitlement process. Carlsbad is exploring the possibility of building a solar power farm on 30 to 40 acres at the Maerkle Reservoir, with a feasibility study approved by the City Council to assess the project's viability. The plan faces challenges, including limited access to the site and concerns about the safety of lithium-ion battery storage systems, though experts will be consulted to address these issues. The study will take up to 18 months to complete, with an allocated budget of $481,000 for the project. The Sacramento City Council approved a pilot program that permits social cannabis consumption in designated areas of dispensaries, with Mayor Darrell Steinberg casting the deciding vote. The program includes two types of permits—one for consuming infused food and drinks, and another for smoking cannabis—along with specific requirements for ventilation systems and impaired driving prevention plans.

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . State Releases Plan to Protect Western Joshua Tree The California Department of Fish and Wildlife aims to protect the western Joshua tree, with a draft plan that focuses on limiting development in areas where the trees could thrive under future climate conditions and includes strategies for mitigating wildfire risks. It also proposes introducing genetically resilient Joshua trees into select areas to enhance their survival. The western Joshua tree faces threats from climate change, wildfires and development, with some projections envisioning a 50% loss within several decades. Released last week, the the draft plan is a collaborative effort involving government agencies, nonprofits and tribes, with $1.4 million in funding to support conservation initiatives. While some critics worry about the impact on local development, the plan emphasizes the urgency of protecting these iconic trees, which are vital to the Mojave Desert ecosystem, as climate models predict severe habitat loss by the end of the century. (See related CP&DR coverage .) California Congressperson Starts Yes in My Back Yard Caucus Democratic Congressman and former mayor of Long Beach Robert Garcia has launched the bipartisan Yes In My Back Yard (YIMBY) Caucus to address the national affordable housing crisis. The caucus aims to promote housing development by removing regulatory barriers, encouraging new construction and investing in necessary infrastructure. Advocates argue that the housing shortage, driven by high dem and and insufficient supply, exacerbates rising costs and deepens the affordability crisis across the U.S. The new caucus will be co-chaired by Reps. Lori Chavez-DeRemer (R-Oregon), Jake Auchincloss (D-Mass.), Juan Ciscomani (R-Ariz.), Rep. Scott Peters (D-Calif.), Rep. Chuck Edwards (R-N.C.), Rep. Brittany Pettersen (D-Colo.) and Rep. Marc Molinaro (R-N.Y.). The caucus builds on Garcia's People Over Parking Act, introduced last year, which would eliminate outdated parking requirements to make housing more affordable. Commission Recommends Insurance Reforms in Light of Wildfire Danger The Little Hoover Commission is calling for urgent reforms to California's homeowners insurance market, which has been destabilized by rising wildfire risks and other climate-related challenges. Among the key recommendations in a new report are the development of public oversight for catastrophe modeling, requiring insurers to factor in mitigation efforts when setting rates and creating a data clearinghouse to improve transparency and access to risk information. The report emphasizes the need for insurers to recognize fire mitigation measures in underwriting and to define a core set of standards for homeowners and communities to reduce fire risks. It also suggests expanding programs that help homeowners strengthen their properties and ensuring access to all types of insurance, including surplus line policies. The Commission's recommendations aim to stabilize the market and help homeowners cope with rising premiums, which have forced many to seek coverage through the California FAIR Plan, the state's last-resort insurance pool. (See related CP&DR coverage .) Saga of Housing on West Los Angeles Veterans Administration Campus Continues The U.S. 9th Circuit Court of Appeals has extended a stay on a judge's order requiring the VA to build housing on its West Los Angeles campus, delaying the construction of up to 200 temporary units. The VA had appealed the ruling, arguing that complying would force it to divert up to $1 billion from crucial services for veterans. The case arose from a lawsuit accusing the VA of failing to provide sufficient housing for homeless and disabled veterans and leasing campus l and to outside entities like UCLA. U.S. District Judge David O. Carter had previously ordered the VA to construct hundreds of units, but his decision is now on hold pending an expedited April hearing. Plaintiffs' attorney Mark Rosenbaum criticized the VA's actions, claiming it contradicts the government's stated goal of quickly ending veteran homelessness. CP&DR Coverage: Fulton on Second Coming of Trump The new Trump Administration and California are at war with one another already. President-elect Donald Trump has said for months that he won't provide federal help for the state in the case of wildfires or other disasters and Gov. Gavin Newsom has already convened a special session of the Legislature to beef up the litigation budget so that the state can sue the federal government over the environment and other issues. Mostly, it means we'll be yo-yo-ing back to the policy positions from the first Trump Administration - especially on wetlands. But it's also possible that Trump will try to support MAGA local electeds in California as they take on the state over housing issues. And it's unlikely - though theoretically possible - that Trump will try to mess with California's climate change laws, which seek to influence land use decisions by encouraging less driving. Quick Hits & Updates In 2023, San Diego experienced the largest net inflow of college-educated adults in the U.S., with over 12,500 highly educated residents moving to the city, boosting sectors like biotech and aerospace. However, the city also faces challenges, including a high rate of college graduates leaving and one of the worst upward mobility rates in the nation, with housing costs and affordability driving relocations. A Native American-led coalition is urging the Biden administration to designate three new national monuments in California, including the Chuckwalla, Kw'tsán and Sáttítla monuments, to protect sacred lands and endangered species from mining, logging and other threats. With President-elect Trump poised to take office, advocates fear these efforts may be undone, as his administration has previously reduced protections for national monuments, prompting a sense of urgency to secure the designations before January 20. The Coastal Commission approved an update to Sonoma County's Local Coastal Program, which outlines zoning regulations for the county's 55-mile coastline, focusing on housing, conservation, public access and development. This long-awaited update, the first since 2001, includes goals such as promoting affordable housing, preserving agriculture, addressing sea-level rise and discouraging oil drilling, while encouraging modest-scale visitor accommodations and more sustainable development practices in designated urban areas. A Stanford study reveals that parts of California's San Joaquin Valley have been sinking nearly an inch per year between 2006 and 2022 due to groundwater pumping, a phenomenon known as subsidence. The study highlights the long-term effects of excessive groundwater extraction, which has caused significant land sinking and infrastructure damage, but also suggests that restoring groundwater through techniques like flood-managed aquifer recharge could help mitigate the issue. California has awarded over $91 million in state funding to Native American communities for affordable housing and homelessness interventions, with $71 million allocated through the inaugural Tribal Homekey program. This funding will support the development of 172 affordable homes across various tribal communities, while an additional $20 million is provided to 37 Tribes through the Tribal Housing Homeless Assistance and Prevention Program to address homelessness with culturally responsive solutions. San Francisco's Municipal Transportation Agency unveiled a draft of its citywide Biking and Rolling Plan, which aims to exp and bike and alternative transit infrastructure, making safe bike paths accessible to every resident within a quarter mile. However, the plan lacks specific deadlines or guaranteed projects, with no new car-free zones proposed and some long-term initiatives still requiring approval, leading to criticism from biking advocates who find the plan too vague and insufficiently ambitious given the city's financial constraints. A proposed San Diego city law aimed at preserving subsidized housing for low-income and moderate-income residents has received unanimous approval from a key city committee and is now set for a final vote by the City Council. The law would require owners of rent-restricted apartment buildings to notify the city and approved housing developers before selling, allowing these developers the right to make a first offer or outbid other buyers to prevent the demolition or conversion of units into market-rate housing. The Sacramento City Council approved a pilot program that permits social cannabis consumption in designated areas of dispensaries, with Mayor Darrell Steinberg casting the deciding vote. The program includes two types of permits—one for consuming infused food and drinks, and another for smoking cannabis—along with specific requirements for ventilation systems and impaired driving prevention plans. A Native American-led coalition is urging the Biden administration to designate three new national monuments in California, including the Chuckwalla, Kw'tsán and Sáttítla monuments, to protect sacred lands and endangered species from mining, logging and other threats. With President-elect Trump poised to take office, advocates fear these efforts may be undone, as his administration has previously reduced protections for national monuments, prompting a sense of urgency to secure the designations before January 20. The Coastal Commission approved an update to Sonoma County's Local Coastal Program (LCP), which outlines zoning regulations for the county's 55-mile coastline, focusing on housing, conservation, public access and development. This long-awaited update, the first since 2001, includes goals such as promoting affordable housing, preserving agriculture, addressing sea-level rise and discouraging oil drilling, while encouraging modest-scale visitor accommodations and more sustainable development practices in designated urban areas.

Major Los Angeles Rezoning Plan Takes Step Forward The Los Angeles City Council Planning and Land Use Committee has endorsed a rezoning plan aimed at increasing housing availability in the city by focusing new market-rate and affordable housing in commercial corridors and dense residential areas. The Citywide Housing Incentive plan, which is part of the city's response to state RHNA mandates, aims to create space for an additional 255,000 homes. The committee's vote largely preserved single-family zones, but some council members continue to advocate for opening up these areas to help combat economic and racial segregation. The proposal allows developers to build more in areas near transit, jobs and schools, with incentives for including affordable units, though single-family zones would only be affected if owned by public or faith-based organizations. Despite concerns from tenant advocates about potential displacement, the committee chose not to impose further demolition restrictions, although they did amend the plan to limit the number of homes faith-based groups could build on single-family lots. Critics contend that the plan will not satisfy state housing requirements (see item below). The full City Council is expected to consider the plan by February. UCLA Study Faults Los Angeles Rezoning Plan for Perpetuating Inequities A recent study examines Los Angeles' Citywide Housing Incentive Program (CHIP) in light of California's housing production targets. The study finds that the rezoning will only boost the city's capacity for new homes by about 30%, falling short of its RHNA requirement of over 250,000 new units. Expanding development incentives to include single-family neighborhoods, which cover 72% of residential land, could dramatically increase housing capacity and help address the affordability crisis. The analysis finds that, while the program may comply with state mandates to increase housing capacity and address segregation, it still faces significant limitations, particularly in low-resource neighborhoods. The Mixed Income Incentive Program (MIIP) offers only a modest improvement according to fair housing metrics, increasing housing capacity by about 380,000 units, but it still concentrates much of this capacity in lower-income areas. The study argues that expanding development in higher-resource neighborhoods, including single-family zones, is essential to meet both housing production goals and fair housing objectives. Without stronger incentives for higher-density development in wealthier areas, the city is unlikely to effectively address displacement and affordability challenges. State Awards $113 Million in Grants for Coastal Resilience and Access The Coastal Conservancy approved over $113 million in grants for 47 projects aimed at coastal restoration, resilience, public access and climate adaptation. The funding will support initiatives across the state, from Del Norte to San Diego counties, and includes efforts to acquire land for conservation, restore coastal habitats and increase public access to the coastline. Additional grants were awarded for projects in Santa Barbara, Los Angeles and other counties, including coastal resilience efforts such as habitat restoration, wildfire resilience and sea-level rise adaptation. Several grants also support community engagement and the creation of "Coastal Stories" projects to highlight diverse cultural perspectives on California's coast. These projects collectively aim to restore over 650 acres of habitat, acquire more than 1,100 acres for conservation and improve access to coastal areas for public enjoyment. The funds also include specific support for climate resilience measures to protect the coast from rising sea levels and other environmental impacts. Major Slopeside Development at Palisades Tahoe Wins Approval The Placer County Board of Supervisors approved a controversial 85-acre resort village at the base of the Palisades Tahoe ski resort (formerly Squaw Valley), a project that has sparked heated opposition from local residents and environmental groups. The development will add hundreds of lodging units, hotel rooms, commercial space and parking, with construction planned over 25 years. Opponents are concerned about increased traffic, environmental damage and strain on local resources, especially the potential impact on Lake Tahoe's water clarity and traffic congestion. Proponents argue that the project will boost the local economy, offering more amenities and year-round tourism, while Alterra Mountain Co. has pledged measures to mitigate traffic and environmental impacts. Despite legal challenges and ongoing resistance, the project was approved unanimously, with the county promising to monitor and adjust as needed during the phased development. (See related CP&DR coverage .) CP&DR Coverage: CEQA Case Draws on People's Park Rule In the first important court ruling following up on the People's Park case, an appellate court in Los Angeles has reversed its earlier ruling that housing project near the University of Southern California isn't eligible for the Class 32 infill exemption from the California Environmental Quality Act. But the court also said that the City of Los Angeles must first correct another error - ensuring that the project conforms to the areas old redevelopment plan, which has now been folded into the city's zoning code. The case involves a proposed seven-building complex of 100 apartments to be built on 2.3-acre site in the West Adams district less than one mile from campus. The court concluded that, in order for the Class 32 exemption to apply, the city must find that the project conforms not only with the zoning but also with the redevelopment plan. But, based on a lawsuit from the West Adams Heritage Association, the Second District Court of Appeal found that noise from a rooftop deck would create a potentially significant impact that disqualified the project from the CEQA exemption. ( CP&DR 's coverage of this previous ruling can be found here .) The court ruled on the First District Court of Appeal's ruling in the People's Park case, which involved potential noise from student housing in a new housing project in Berkeley on the site of the storied protest location. Quick Hits & Updates Sacramento officials unveiled a $40 million plan to revitalize the Old Sacramento Waterfront, including upgrades to boardwalks, docks and buildings, as well as funding for a new hotel and expanded tourism initiatives. The plan also allocates $5 million in state funding for a hotel development and $2 million for Visit Sacramento to attract more festivals, with the goal of boosting local tourism and generating economic growth in the city. UC Berkeley's Terner Center analyzed and identified 53 sites owned by the United States Postal Service in California, located in high-resource, residential areas near public transit as potential candidates for housing development. The research suggests prioritizing these sites for further evaluation, noting that many have sufficient usable land for multifamily housing, though additional assessments are needed to address site-specific challenges like zoning and infrastructure. The Center for Jobs and the Economy released a report that analyzes the impact of CEQA lawsuits on housing production. While the 3.5 million-home statewide shortfall intensifies, lawsuits against new housing that prevent upzoning, transit accessibility, and housing affordability under the guise of environmental violations continue to grow. Los Angeles city officials failed to spend over $500 million of the $1.3 billion budgeted for homelessness in fiscal year 2024, due to inefficiencies, staffing shortages and outdated systems. While the city has faced criticism for its lack of transparency and accountability in addressing homelessness, Mayor Karen Bass's office emphasized her efforts to tackle the issue and modernize the city's approach. San Francisco's Muni transit system faces the possibility of significant bus, train and cable car service cuts, as well as potential closures, due to a growing fiscal deficit and the failure of Proposition L, which would have provided new funding. The agency is projected to have a deficit between $239 million and $322 million by 2026, with possible cuts to services like cable car lines, streetcars and frequent bus routes unless new funding sources are found. Los Angeles is set to begin a $740-million project to transform wastewater into purified drinking water at the Donald C. Tillman Water Reclamation Plant, a key step in expanding the city's local water supply amid worsening droughts and climate change. The initiative will produce 20 million gallons of potable water daily by 2027, making use of recycled wastewater and is part of broader efforts to reduce reliance on increasingly unreliable imported water sources. The Biden administration and eight California water agencies have reached an agreement to fund a nearly $1-billion project to raise the B.F. Sisk Dam and expand the San Luis Reservoir near Los Banos. This expansion aims to increase the state's water-storage capacity, allowing for more water retention during wet years. The expanded reservoir will provide water to 2 million people, agricultural areas and wetlands in the Central Valley. With the project's completion expected in less than 10 years, it represents a major step in bolstering water resilience amid climate change. However, additional funding is still needed to fully realize the project. The San Luis Obispo County Local Agency Formation Commission approved the annexation of a 1,400-unit housing development into the Nipomo Community Services District, allowing the project to move forward. This decision follows previous approvals, including a vote by the county Board of Supervisors, despite some dissent from local officials. The La Jolla Community Planning Association expressed strong opposition to a proposed 22-story development in Pacific Beach that would surpass the area's 30-foot height limit, fearing it could lead to similar high-rise projects in La Jolla. While developers argue it will address housing needs, local residents and leaders are challenging the project, which uses state laws to bypass local zoning restrictions, with some even exploring legal avenues to prevent its approval. San Francisco's Embarcadero Plaza is set for a transformation into a park twice the size of Union Square, with a public-private partnership aimed at redesigning the space and integrating it with the adjacent Sue Bierman Park. The project, expected to cost at least $25 million, will feature a retail corridor, event stages and green areas, with construction likely taking three years to complete. Democrats in Congress have introduced the Homes Act of 2024, which aims to create a new federal housing authority to provide billions in funding for affordable housing across the U.S., particularly for low-income households. The legislation proposes a public alternative to private development, with plans to generate 1.25 million housing units over ten years, including a significant portion designated for extremely low-income families, although it faces significant challenges in securing funding and support within Congress. California has secured a new 25-year lease agreement with federal partners to keep San Onofre State Park open, ensuring continued access to its beaches, trails and campgrounds. The deal, facilitated by advocacy groups and local officials, protects this popular surf destination, which attracts about 2.5 million visitors annually, from potential access restrictions following the expiration of its previous lease. The Los Angeles Ethics Commission has accused real estate developer Samuel Leung of 444 violations of city campaign finance laws, including allegations of laundering campaign money and reimbursing donors from 2009 to 2015. Following a previous investigation that uncovered over $600,000 in questionable political donations tied to Leung's apartment project, the commission's filing indicates that he reimbursed or facilitated reimbursement for numerous contributions that exceeded legal limits, potentially resulting in substantial penalties.

CP&DR Vol. 39 No. 11 November 2024 Report

This article is brought to you courtesy of the paying subscribers to California Planning & Development Report . You can subscribe to CP&DR by clicking here . You can sign up for CP&DR 's free weekly newsletter here . Sacramento Soccer Stadium and Entertainment District Advances After eight years of negotiation and false starts, the Sacramento City Council has approved a preliminary term sheet for a new 12,000-seat soccer stadium in the downtown Railyards, marking a significant step toward the construction of the venue for Sacramento Republic FC. The project will span 31 acres, with 14 acres dedicated to the stadium and the rest reserved for mixed-use developments such as a hotel, housing and commercial spaces. Wilton Rancheria, which recently acquired a majority stake in Republic FC, will finance the $217 million stadium, part of a broader $321 million development. The stadium is planned to open by 2027, with the surrounding entertainment district potentially ready by 2026 and may eventually expand to 20,000 seats for a potential MLS team. The approval includes provisions for public infrastructure funding and community benefits, with further discussions planned for 2025 to finalize agreements on details like environmental impact and community outreach. Approvals for Battery Plant in Morro Bay to Test New State Clean Energy Regulations The California Energy Commission and the California Coastal Commission will decide the fate of a proposed battery plant project in Morro Bay under a new state process that allows developers to bypass local governments for large renewable energy projects. This change follows delays in the city's approval process, which could have extended the timeline for a decision until 2025. Under the state process, the Energy Commission must make a decision within 270 days, with the California Coastal Commission then weighing in. Although the city will lose its ability to set conditions on the project, such as requiring the removal of the smoke stacks of a former power plant on the site, it will still have chances to participate in the process, including public hearings and potential agreements for community benefits. Even if local opposition—like the local ballot Measure A-24 requiring a popular vote to rezone the parecel—is successful, state agencies can override local zoning if they determine the project is necessary for public good. Study Assesses Proximity of High-Density Zones Pollution in Los Angeles A new study by the Urban Institute finds that zoning policies in Los Angeles disproportionately locate high-density housing, including affordable units, near high-traffic roads, exposing residents to harmful levels of air and noise pollution. While 20% of land zoned for dense housing is within 300 meters of high-traffic roads, only 12% of land zoned for lower-density housing is similarly situated. The city's Transit-Oriented Communities (TOC) program, which encourages building near transit stations, inadvertently concentrates development near polluted areas, as 19% of TOC zones are within 300 meters of high-traffic roads. Additionally, multifamily housing, especially in large buildings and federally subsidized low-income housing, is more likely to be built near such roadways, worsening pollution exposure for those already vulnerable. The study suggests cities can mitigate these disparities by zoning housing away from highways, improving transit infrastructure and implementing strategies to reduce pollution exposure. CP&DR Coverage: Ballot Measure Bonanza At the final tally, California's cities and counties put twenty-odd measures related to land use on their local ballots, ranging in magnitude from a multibillion-dollar transportation measure (San Diego County) to the lifting of a prohibition on roundabouts (Cotati). There were contentious, high-profile battles to open San Francisco's Great Highway and to enable Huntington Beach to assert power over the state, and a slew of measures to preserve open space. Notably scarce were traditional ballot-box approvals to ask voters to decide on proposed developments. CP&DR has all of the results , plus a preview , and a deep dive into a quizzical measure to preserve parking in downtown Eureka . Quick Hits & Updates San Jose city leaders are proposing an "Innovative Project Pathway Program" to streamline development in the downtown area, aiming to expedite the approval of large residential and commercial projects. The program would simplify the development process, potentially allowing for faster rezoning and modifications to the city's general plan, with the goal of attracting more investment to reduce the city's high office vacancy rate. While supporters argue the initiative could revitalize downtown and encourage innovative projects, critics emphasize the need for a citywide residential incentive program and improved environmental review processes to address ongoing delays in housing development. Last week, a Los Angeles judge ordered the United States Department of Veterans Affairs to expedite contracts for 750 units of temporary housing for disabled veterans on the West L.A. campus, warning of contempt if the deadline was missed. However, on Friday, the Ninth Circuit Court of Appeals temporarily paused the judge's order, granting the VA relief from the pressure to fast-track the housing. The VA argued that its $407 billion budget is already stretched to cover multiple competing needs. The City of Palm Springs has proposed a nearly $6 million reparations settlement for former residents of Section 14, a Black and Latino neighborhood demolished in the 1960s to make way for commercial development. The settlement includes cash payments, housing initiatives and small business support, as well as a monument to honor the community, in recognition of the city's past role in displacing residents, which has long been seen as racially motivated. The Port of Oakland has received over 100 inquiries for the redevelopment of the 50-acre Howard Terminal site, which was originally slated for a new ballpark for the Oakland A's before the team's departure to Las Vegas. Interested parties include developers, real estate firms and other organizations, with the Port seeking innovative proposals that integrate with the site's industrial and mixed-use surroundings, although significant environmental remediation and approvals are needed before development can proceed. San Francisco Board of Supervisors President Aaron Peskin introduced legislation aimed at increasing housing density by modifying building codes, particularly by easing requirements for multiple staircases in buildings over three stories. The proposed changes, which would allow for single-stair buildings, are designed to make medium-density residential projects more feasible on smaller lots, supporting the city's broader goal of meeting housing needs without sacrificing affordability or tenant protections. The Los Angeles County Board of Supervisors approved the purchase of the Gas Company Tower for $200 million, which will facilitate the relocation of county offices from the city's civic center. The tower, located at 555 W. 5th St., will provide a more seismically-safe alternative to the aging Kenneth Hahn Hall of Administration, which is considered vulnerable to earthquakes. The county expects the purchase to save millions of dollars compared to renovating old buildings, and the deal includes assuming existing tenant leases. The City of Stockton is set to redevelop a nine-acre waterfront site into the South Pointe project, featuring 500 residential units, commercial space and community amenities as part of its plan to revitalize the downtown area. The project follows a government-funded cleanup of the site and aims to create a vibrant, walkable space that fosters community engagement and supports local commerce.

This month’s local land use ballot measures addressed some common issues – tenant protections, open space, and broad notions of local control included – and emerged with little by way of discernible patterns.