CP&DR Vol. 38 No. 9 September 2023 Report

State Releases Guidance on Environmental Justice Elements in General Plans The Attorney General's Office released comprehensive guidance for local governments to address environmental justice issues in their land use planning, as mandated by Senate Bill 1000. This guidance aims to rectify the historical disparity in pollution exposure faced by vulnerable populations, particularly low-income communities and communities of color. It provides cities and counties with information to develop general plans that reduce pollution exposure, promote community health and address these long-standing inequities. SB 1000, passed in 2016, requires local governments to consider these disparities when formulating or updating their general land use plans. The new guidance covers key aspects of SB 1000 compliance, such as identifying disadvantaged communities, community engagement strategies, reducing health risks related to pollution, ensuring safe housing, addressing disparities in access to parks and green spaces and promoting equitable access to healthy food. Federal Government to Grant $103 Million Statewide for Climate Change Mitigation The U.S. Forest Service will allocate over $103 million in federal grants to California aimed at mitigating climate change and extreme heat through tree planting initiatives. This funding, part $1 billion being granted nationwide under the Inflation Reduction Act, marks the largest-ever investment in urban and community forests under the act. The urban heat island effect, which makes areas with less vegetation up to 10 degrees warmer, is a key concern being addressed. These grants will support tree planting, maintenance, and enhancements to urban canopies. Organizations like TreePeople will receive grants to plant trees strategically, especially in high-need areas of Southern California. This funding underscores a changing perspective on urban forests as essential infrastructure and arrives at a critical juncture as trees face threats from drought, wildfires, and urban development. Despite past challenges in tree maintenance, proponents are optimistic that proper planning and care can yield substantial benefits, including job creation, enhanced shading, increased oxygen, and relief from heat. The high demand for this funding highlights the pressing nationwide need for urban tree planting. Legislature to Place Measure for Homelessness Funding on March Ballot California will move forward with a ballot measure that would secure funding for housing and support for individuals suffering from severe mental illness, many of whom are homeless. The state legislature passed two bills, one redirecting tax revenue from the Mental Health Services Act towards addiction treatment and housing, and another approving a measure that would authorize $6.38 billion in bond funding to build residential treatment facilities. The measure will appear on the March 2024 primary ballot. The focus is on helping chronically homeless individuals with severe mental health issues reintegrate into communities rather than jails and prisons. Additionally, lawmakers unanimously passed SB43, a bill designed to make it easier to compel individuals with severe mental illness into treatment or temporary psychiatric holds, expanding criteria for involuntary medical treatment. This legislation aims to address the mental health and addiction crisis, with San Francisco Mayor London Breed as a key supporter. Colleges, Faith Organizations Sitting on 170,000 Acres of Developable Land A report out of UC Berkeley's Terner Center for Housing Innovation found there is a large portion of land owned by faith-based organizations and nonprofit colleges that qualify for streamlining incentives and ministerial approval under Senate Bill 4. These projects on over 171,749 acres of developable land could potentially bolstering affordable housing in the state, particularly in areas historically lacking affordable housing, like affluent communities and single-family neighborhoods. Of that acreage, 13 percent is located near transit high-quality transit and half of the land is located near higher opportunity areas. Despite this, significant obstacles remain to expand affordable housing on these sites, like land use regulation issues and a lack of funding. The study concluded there is an opportunity to bridge those gaps by establishing or expanding technical assistance programs to support institutions interested in building housing but lacking the capacity or expertise. CP&DR Coverage: S.F. Megadevelopment Treasure Island Takes Shape After over a quarter century of planning and seven years of infrastructure development, San Francisco's Treasure Island neighborhood is finally taking shape. One of the project's signature elements—a 22-story apartment tower—topped out in July, and new structures, parks, and public amenities are under construction on the 405-acre landfill site, and on adjacent 300-acre Yerba Buena Island. The forward moves are taking place at the same time that the project's main developers are suing each other and the Bay Area's urban housing market has softened. Disputes between developer Wilson Meany and primary funder Stockbridge Capital center on the project's anticipated profits, which are likely far lower due to current economic conditions than they were in 2016, when the project broke ground. It's also a cautionary tale about how long development takes in California. “I'd like to see cities and design professionals around California focused on getting things built, not just looking at getting things approved,” said Christopher Meany, the project's lead developer. Quick hits & Updates A study by Visit SLO CAL and Beacon Economics found that short-term rentals (STRs) do not significantly drive up rental rates and housing prices in the county. According to the study, STRs have contributed to the growth of tourism in the county and benefit the local economy more than they harm housing availability or affordability, and converting STR properties to long-term rentals would have minimal impact on housing affordability, with rents decreasing by less than 1%. The study suggests that addressing housing affordability issues should focus on building more multi-family housing rather than solely targeting STRs. The Friant Water Supply Protection Association - a water user group in San Joaquin Valley's east side - filed an appeal on July 24 in the Fifth District Court of Appeals after concerns and environmental challenges against the proposed Del Puerto Canyon Reservoir were dismissed by a Stanislaus County Superior Court judge in October 2022. The proposed project would allow the San Joaquin River Exchange Contractor Authority to store up to 84,000-acre feet of water west of Interstate 5, potentially affecting Friant water supplies in dry years and the Friant group seeks assurance in the project's environmental documents that it won't negatively impact other water users. The Tübatulabal Tribe in Kern River Valley has reclaimed ownership of 1,240 acres of ancestral land , marking their first land title since the 1800s. With support from various conservation organizations, the land will be preserved as a conservation easement for public access and ecological restoration, aligning with the tribe's belief that the land is like a mother that cares for them. San Francisco is grappling with the challenge of preserving its historic waterfront , including iconic landmarks like the Ferry Building, in the face of rising sea levels caused by climate change. The city is considering measures like strengthening the sea wall and potentially elevating structures to protect its heritage, although there are differing opinions among residents about how to balance preservation with community interests. Newport Beach City Council plans to override the Orange County Airport Land Use Commission's decision to make amendments to land use, noise elements and zoning codes to allow for housing near the airport . Residents are predominantly against this move, expressing concerns about increased aircraft noise and pollution due to residential projects near the airport, but the council aims to find housing solutions while protecting the city's quality of life. Cal State Long Beach's draft environmental impact report outlines a master plan update for campus development until 2035, including expanding on-campus student housing by about 1,600 beds and introducing faculty and staff housing. The plan is expected to be adopted by the university's Board of Trustees in January 2024. San Diego County's beaches require ongoing and expensive efforts to maintain their tourist-friendly, wide, sandy appearance, as revealed in the 2023 "State of the Coast" report by the San Diego Association of Governments. According to the study, shorelines in several areas, including south Oceanside, south Carlsbad, Leucadia, and Coronado, are rapidly eroding, with only beaches replenished by sand from nearby lagoons, harbors, and offshore deposits retaining or increasing their width. Human activities, including construction and upstream development, have contributed to beach losses, making beach preservation and nourishment crucial, particularly in the face of rising sea levels. The Los Angeles County Metro's long-awaited Regional Connector has officially opened, offering more direct access to downtown Los Angeles and facilitating transfer-free journeys across the city. This project features three new underground stations and aims to enhance transit connections by linking multiple Metro lines, although it comes amidst concerns about rising crime rates and safety on public transit systems. (See related CP&DR coverage .) Following state certification of its environmental study, Marin County's largest affordable housing project of the last 50 years plans to move forward. The project, covering almost 8.5 acres, will provide 135-units of workforce housing for teachers and local housing district staff, as well as 115 homes for low-income families, addressing the pressing need for affordable housing in the area. The Los Angeles County Metropolitan Transportation Authority (LA Metro) requests the public submit new names for the proposed West Santa Ana Branch rail line that will run from downtown Los Angeles to Artesia through southeast LA County. LA Metro aims to eliminate confusion as the project's current name references Santa Ana, which is not within its route, and rebrand it to reflect the actual area it will serve. The Vernon City Council progressed with new zoning rules allowing residential development in the industrial city south of Downtown LA. The Westside zone changes target underutilized sites along Santa Fe Avenue, offering property owners the option to redevelop with residential, office, retail and industrial uses, with draft environmental impacts suggesting the changes could result in 874 residential units, 360,429 square feet of office/research and development and 253,021 square feet of production retail.

The California Chapter of the American Planning Association presented the following awards at its annual conference in Fresno last week: Comprehensive Plan (Large and Small) Award of Merit: San Jose Diridon Station Area Plan , City of San Jose Award of Excellence: The Plan to House LA – City of Los Angeles 2021-2029 Housing Element, Los Angeles City Planning and Los Angeles Housing Department Award of Merit: South San Francisco 2040 General Plan, “Shape SSF” , City of South San Francisco Award of Excellence: Not Just Another Housing Crisis Band-Aid: Downtown Bishop Specific Plan & Mixed-Use Overlay and Environmental Impact Report, City of Bishop Planning Department + Alta Planning & Design, Inc. + Helix Environmental Planning Resilience and Sustainability Award of Merit: Mariposa County Merced River Trail Vision Plan , Mariposa County Planning Department Award of Excellence: Los Angeles Countywide Parks Needs Assessment Plus (PNA+), Los Angeles County Department of Parks and Recreation Transportation Planning Award of Merit: Lompoc Streetscape Multimodal Improvement Plan , City of Lompoc Planning Division, Caltrans District 5, RRM Design Group, Toole Design Award of Excellence: Glendale Citywide Pedestrian Plan , City of Glendale Best Practices Award of Merit: Other-to-Residential Toolkit , Southern California Association of Governments (SCAG) Award of Excellence: Neighborhood Development Action Team Community Ambassador Program, City of Sacramento  Implementation (Large) Award of Excellence: Napa Sonoma ADU Center Grassroots Initiative Award of Merit: How East Los Moves: Creative, Custom, People-Powered Transit!, Public Matters Award of Excellence: Willard Safe Streets , Santa Ana Active Streets & Willard Neighborhood Association Public Outreach Award of Merit: KCCTOD Study Zine s, City of Fresno Long Range Planning Division Award of Excellence: Build Better SD: Imagine Public Spaces , City of San Diego Urban Design Award of Merit: San Jose Berryessa BART Urban Village , City of San Jose Award of Excellence: Verdugo Wash Visioning , City of Glendale Planning Agency Award of Excellence: Regional Housing Technical Assistance Program , Association of Bay Area Governments and Metropolitan Transportation Commission Opportunity and Empowerment Award of Excellence: Dignity Village , City of Alameda Advancing Diversity and Social Change in Honor of Paul Davidoff Award of Merit: ESA’s Commitment to Justice, Equity, Diversity, and Inclusion (JEDI), Environmental Science Associates Award of Excellence: Parks Make Long Beach : Department of Parks, Recreation, and Marine Strategic Plan, Long Beach Parks, Recreation, and Marine Administration Academic Award Award of Merit: "Transportation Challenges to Healthcare: Evaluating the Transportation Needs of Patients at Saban Community Clinic," Nataly Rios Gutierrez, UCLA: Institute of Transportation Studies Award of Excellence: PlanSearch.caes.ucdavis.edu : A Search Engine for California’s General Plans, University of California, Davis - Center for Regional Change, Faculty Director, Dr. Catherine Brinkley Economic Planning and Development Award Award of Excellence: Artsakh Creative Retail Pop-Up Pilot Program , City of Glendale

A dozen land use bills related to housing have landed in Gov. Gavin Newsom’s desk, and he has until mid-October to sign or veto them. That’s become the norm in the last few years in Sacramento. But there’s a pretty good argument that the Legislature is beginning to run out of things to do on housing – unless the lawmakers are willing to take on the California Environmental Quality Act.

Two land use bills got all the attention this year, both carried by Sen. Scott Wiener: SB 423, which extends SB 35, and SB 4, which requires ministerial approval for projects on college and church land. But the Legislature passed two dozen important land use bills this year, most of which are now sitting on the desk of Gov. Gavin Newsom. And Newsom isn’t likely to veto many of them – especially the housing bills.

Coastal Commission Imposes $1 Million Fine on Coastal Resort The Coastal Commission unanimously approved a significant settlement with San Diego's Paradise Point resort, addressing Coastal Act violations that hindered public access to city-owned waterfront property for years. The settlement, estimated at $4.1 million, involves a $1 million fine, the installation of over 70 new coastal access signs throughout the 52-acre resort, additional public restrooms near the beach, and a $500,000 outreach program providing free overnight stays to lower-income students and families. It also ensures an uninterrupted pathway across the bayfront. Concerns were expressed about potential future violations despite the settlement's cost, with some commissioners questioning the adequacy of the $1 million fine. The resort, owned by Pebblebrook Hotel Trust, is now free to proceed with plans to reposition as a Margaritaville Resort. Navy Agrees to Return Property to Port of San Diego The Port of San Diego and the U.S. Navy have reached a historic agreement after 38 years, wherein which the Navy will vacate a 3.4-acre waterfront property in exchange for $5.75 million in goods and services. The deal will return prime real estate to the port for redevelopment, potentially including hotels and public amenities. The Navy's 100-year lease on the property will end before the year's end, pending approval by Port of San Diego Commissioners. The site currently hosts outdated Navy buildings but is surrounded by public attractions and hotels. Once the Navy exits, plans for additional park space, hotels, and retail shops are in place, with a local San Diego developer given the first opportunity for redevelopment. Climate Change Exacerbates Wildfire Danger by 25% According to a new study published from Breakthrough Institute, a Berkeley-based think tank, climate change bolsters the risk of severe wildfire growth by 25%, and it will continue to influence severe wildfires in the state for decades to come. The research studies exactly how temperatures impact individual fires statewide, and predicts the influence of climate change on the behavior of fires in the future, analyzing almost 18,000 fires in California between 2003 and 2023. Over that time, climate change has increased the risk of deadly daily wildfires by an average of 25%. Researchers further estimate climate change will increase the risk of extreme wildfire growth by an average of 59% by the end of the century if greenhouse gas emissions reach net zero by 2070. If emissions continue to increase until 2050, climate change poses an average risk of 90%. Los Angeles Establishes Priority Transit Projects for 2028 Olympics The Los Angeles County Metropolitan Transportation Authority (Metro) is preparing for the 2028 Olympic Games by seeking Federal funding for 15 projects to manage the anticipated increase in tourists. These projects aim to address transportation and mobility challenges. Metro may potentially double its bus fleet by borrowing buses and staff from transit agencies, primarily within California. They plan to establish a Games Routes Network to efficiently connect event venues with transportation hubs using existing and planned ExpressLanes and bus-only corridors. The initiative includes the creation of mobility hubs, micro-mobility options, and first/last-mile connections for visitors. Additionally, they will address street-running operations and traffic signal improvements while considering plans for grade separation. Lastly, Inglewood's automated people mover system and Metrolink's SCORE program were deemed essential components of the preparations. CPD&R Coverage: Planning in the Central Valley In that time, the eight-county San Joaquin Valley region's population has grown to an estimated 4.3 million. It has gained a campus of the University of California, and it is, slowly, gaining High-Speed Rail. And, though agriculture dominates the region, it is far from rural, including major cities like Fresno, medium-sized cities like Modesto and Merced, and small towns like Taft. They and other communities are feeling housing pressures, especially in light of dramatic price spikes in coastal metropolitan areas, while serving populations that are dramatically lower-income and more predominantly blue-collar than in their coastal counterparts, including some of the highest countywide poverty rates in California. To mark the occasion of this week's conference of the California Chapter of the American Planning Association, CP&DR's Josh Stephens spoke with four planners in the Central Valley to find out about the Valley's priorities and challenges. Quick Hits & Updates BART is set to launch a plan aimed at improving service and boosting ridership. The plan includes reducing wait times to a maximum of 20 minutes, increasing evening service by 50% seven days a week, shortening the length of trains to improve safety and resource allocation, and utilizing only the "fleet of the future" trains for the base schedule to enhance efficiency and reduce costs, all in an effort to avoid a looming fiscal crisis. Philanthropist and Jeff Bezos's ex-wife MacKenzie Scott donated $20 million to the San Francisco Community Land Trust, a nonprofit focused on affordable housing, enabling the organization to accelerate property acquisition and expand its reach to address the city's affordable housing crisis. This significant gift will allow the trust to triple its staff, acquire more buildings, and transform them into permanently affordable homes, benefiting communities of color and helping renters become homeowners. A Silicon Valley tech leader is selling his 14,100-acre Rana Creek Ranch in Carmel Valley to the Wildlands Conservancy for $35 million, with plans to create a public nature preserve. The conservancy intends to open the scenic property to the public for recreational activities, while the Esselen Tribe plans to purchase a portion of the land for cultural and environmental purposes, including controlled burns and recreating a historic village. After nearly five hours of discussion, the Brentwood Planning Commission sent a proposal for nearly 300 homes in the Bay Area city back to the staff due to concerns about potential traffic issues. The key issue centered on a second exit from the proposed development which would have directed traffic into and out of congested neighborhoods, prompting the commission to request solutions to reduce traffic and noise for nearby residents. The proposal will be reviewed by the commission again at a later date. The Los Angeles City Council voted unanimously to temporarily halt the demolition of Marilyn Monroe's former home in the Brentwood neighborhood after a council member introduced a motion to consider it as a city historic-cultural monument. This decision triggers a pause on all building permits, allowing for an assessment of the property's historic and cultural significance, with the process expected to conclude within 75 days.

After over a quarter century of planning and seven years of infrastructure development, San Francisco’s Treasure Island neighborhood is finally taking shape. One of the project’s signature elements—a 22-story apartment tower—topped out in July, and new structures, parks, and public amenities are under construction on the 405-acre landfill site, and on adjacent 300-acre Yerba Buena Island. The forward moves are taking place at the same time that the project’s main developers are suing each other and the Bay Area’s urban housing market has softened. The project's primary developer and funder, Wilson Meany and Stockbridge Capital are jointly involved in lawsuits and countersuits against a second developer, Kenwood Investments. The disputes center on the project’s anticipated profits, which are likely far lower due to current economic conditions than they were in 2016, when the project broke ground. And yet, demand for the project’s 8,000 housing units – a significant number in the housing-starved Bay Area – is likely as high as ever.

A's Spurn Would-Be Developer for Oakland Coliseum Site The (likely) departing Oakland A's turned down an offer from a local Black-owned development group to purchase their share of the Oakland Coliseum site. The A's president declined the offer in a letter to the head of the African American Sports and Entertainment Group (AASEG), stating their current lack of interest in selling their Coliseum stake. AASEG is in talks with the city to potentially buy or lease Oakland's part of the site for a $5 billion megaproject featuring housing, restaurants and a new convention center. While the A's initially had plans for the site, they later shifted their focus to Las Vegas. The A's current plans for the Coliseum remain unclear, and a cooperation agreement with AASEG has not yet been signed. Meanwhile, A's endeavor to move to the Las Vegas Strip faces the potential of being subjected to a statewide vote in Nevada. A Nevada political action committee named "Schools Over Stadiums" filed a referendum petition, aiming to force a statewide vote on the use of public funding for the A's stadium bonds, which would require approximately 102,000 valid signatures to qualify for the 2024 ballot. (See related CP&DR coverage .) Two California Tribes Receive Federal Affordable Housing Funds The U.S. Department of Housing and Urban Development announced a total of $128 million in affordable housing investments in 22 tribal communities , nationwide. The grants include $4.4 million to the Cahto Tribe of Laytonville Rancheria and $2.9 million to the Susanville Indian Housing Authority, both in California. The funds are designated to the construction of 14 new housing units for low-income Cahto indigenous families and nine affordable housing units in Susanville. Since 2019, 94 percent of funds from the federal Indian Housing Block Grant Competitive grants have gone towards the construction of new housing units to address the housing crisis for indigenous tribes across the nation. Los Angeles Approves Spending of Funds Collected from Controversial Transfer Tax The Los Angeles City Council approved a $150 million expenditure plan for funds generated by Measure ULA directed towards six programs for the first time since voted into law last November, including short-term emergency rental assistance, eviction defense, tenant outreach and education, direct cash assistance for low-income seniors and people with disabilities, tenant protections and affordable housing production. Notably, $23 million will be allocated to eviction defense, $23 million for income support for rent-burdened seniors, and $18.4 million for rent debt assistance. The first program to roll out will be an emergency rental assistance program, scheduled to begin on September 19. Measure ULA, often referred to as a "mansion tax" but applicable to all types of properties in the city, was initiated on April 1, imposing a 4% charge on real estate transactions exceeding $5 million and a 5.5% charge on sales above $10 million. To date, the tax has raised approximately $55 million, with the stipulation that the funds can only be spent as they accrue, thus requiring $150 million in tax revenue before the full allocation can be utilized. Despite $55 million in funding for L.A.'s housing crisis, the funds from the tax fall significantly short of early estimates -- which anticipated around $900 million annually -- due to a cooling luxury real estate market and homeowners' efforts to evade the tax. (See related CP&DR coverage .) PPIC Survey Shows Conflicting Sentiments on Housing, Environment Recent surveys by the Public Policy Institute of California (PPIC) reveal conflicting opinions among California residents on the state housing crisis, despite ongoing efforts to address it. Many Californians want the state to ease environmental and land use restrictions to boost housing supply, even as a significant portion believes the restrictions should remain the same, even if it increases housing costs. The sentiment is strong across the state, except for the San Francisco Bay Area, where opinions are divided. Renters are more supportive of easing restrictions than homeowners. A majority of Californians also favor changing regulations under the California Environmental Quality Act (CEQA) to make housing more affordable. Democrats, independents and residents from various regions support the California Legislature requiring local governments to build affordable housing, while Republicans prefer local governments to decide housing policy. Despite the demand for affordable housing, 71% of Californians prefer single-family homes over condos or townhomes, even if it means relying on cars for commuting. CP&DR Coverage: Fulton on "Creative" Interpretations of CEQA The California Environmental Quality Act plays a unique role in California planning and development. Depending on your point of view, it's either the one thing standing in the way of destruction of your neighborhood or the one thing standing in the way of providing needed housing. As we recently reported, both sides of the CEQA debate often use CEQA litigation - either the supposed prevalence of it or the supposed rareness of it - to defend their point of view. But, whichever side of the issue you are on, CEQA continues to operate as the “big dog” of California planning, overshadowing almost everything else in sight. But lately, we've seen California's appellate courts having to deal with more creativity than usual. Quick Hits & Updates Two landowners in East Elliott , a once-planned housing development area in eastern San Diego, contend that the city's classification of the region as open space has resulted in substantial financial losses and worsened the housing crisis. Their lawsuit argues that historical agreements from the 1960s with the federal government, aimed at transforming East Elliott into a residential neighborhood, should invalidate the city's 1997 decision to designate it as open space, potentially posing significant financial consequences for the city if the lawsuit prevails. On Wednesday, the California Water Resources Control Board rejected Cemex's plea to reconsider the agency's decision to re-notify an old water permit application by the Mexican mining company. The water permit, crucial for Cemex's long-standing efforts to establish a large mine, has been a major obstacle, with community concerns and opposition from the city, residents, environmentalists, and state legislators delaying the project since its initial permit issuance in 1991. The Environmental Protection Agency (EPA) and the US Army have jointly issued a new regulation significantly reducing the extent of federally protected water in response to a Supreme Court decision in May that curtailed protections for US wetlands. This new rule, which redefines the scope of "waters of the United States," excludes wetlands and smaller tributaries from protection, potentially affecting up to 63% of US wetlands by acreage and around 1.2 million to 4.9 million miles of streams. Los Angeles Metro unveiled its updated Active Transportation Strategic Plan , aiming to connect passengers walking, biking or rolling to and from transit facilities. The plan includes projects to improve pedestrian crossings, enhance bikeways and create safer walkways in underserved communities, but it faces funding challenges, with regional bikeways alone estimated to cost $36 billion, four times the agency's annual budget. A committee has formed in Marin County in order to designate the area as a Dark Sky Reserve under the International Dark-Sky Association, combatting light pollution . The committee identifies non-compliant lighting in the area to preserve wildlife and human wellbeing. The Fremont City Council unanimously approved the purchase of a 23,000-square-foot office building to rebuilding as a potential new city hall, consolidating operations and using thee current city hall into a mixed-use housing development.

Concord Names New Developer for Former Navy Site Possibly ending a two-decade saga of false starts and controversies, the City of Concord selected Brookfield Properties as the master developer for the transformation of the former Concord Naval Weapons Station into a massive mixed-use community. Covering 2,300 acres and comprising a significant portion of the site's total 5,046 acres, this project is the largest ongoing development in the Bay Area. Brookfield Properties has committed to designating at least 25% of the housing as affordable, hiring 40% of the construction workforce locally and prioritizing early connections to the nearby BART station. Before the U.S. Navy transfers ownership to the city, environmental concerns must be addressed, including soil assessment and cleanup efforts. The final phases of construction are expected to span the next 30 to 40 years, with ongoing negotiations to clarify timelines and costs. Despite past divisions among Concord residents, Brookfield's proposal has gained approval as the most promising option for revitalizing the former Naval outpost, shuttered in 1999, potentially creating a new city within Concord that could significantly impact the region's housing landscape. (See related CP&DR coverage .) State to Disburse $757 Million in Grants to Fund 2,500 Affordable Housing Units The California Strategic Growth Council announced $757 million in funding from the Affordable Housing and Sustainable Communities program aimed at advancing affordable housing construction in walkable neighborhoods with job opportunities. The funds will go to 21 projects statewide, with awards ranging from $19 million to $49 million. The investment is expected to result in development of over 2,500 affordable residences, 150 zero-emissions buses, 50 miles of new bikeways and improvements to sidewalks across various communities in the state. Once completed, these projects are projected to reduce 800,000 metric tons of greenhouse gas emissions, equivalent to removing 178,000 gas-powered cars from California's roads for a year. Governor Newsom emphasized the significance of these investments in addressing climate change and housing scarcity, underscoring their role in creating a cleaner energy future. San Jose Housing Element Fails to Win State Approval Regulators at the Department of Housing and Community Development have declined to certify San Jose's draft housing element, which would add more than 60,000 new homes over the next decade. Without this approval, the city risks losing access to crucial affordable housing and transportation funds and relinquishing control over the approval process for new housing projects. When San Jose's City Council submitted the plan for approval in June, it faced skepticism from pro-housing advocates, tenant activists, and construction labor supporters. In HCD's letter to the city, they urge greater community engagement and public input during the housing element revision process while calling for more evidence the identified sites for housing are viable. The letter also demanded more details on programs to streamline permitting processes and combat housing discrimination and displacement. San Jose must specify where and how it intends to facilitate the development of at least 62,200 additional homes, over half of which must be affordable, by 2031. This represents a 20% boost in the city's housing stock and a 77% increase from its previous eight-year housing goal. San Bernardino Agrees to Update Housing Element to Avoid Penalties California Attorney General Rob Bonta, Governor Gavin Newsom and three state agencies have announced a settlement with the City of San Bernardino for violating California's Housing Element Law. San Bernardino failed to adopt a compliant housing plan within the statutory deadline, prompting state intervention. The settlement requires the City of San Bernardino to adopt a compliant housing element by no later than February 7, 2024, expedited to meet the deadline. Additionally, the city must modernize its zoning code, amend its emergency shelter ordinance to streamline homeless shelter construction, and adjust its local density bonus ordinance to permit increased density for housing projects with affordable dwelling units. Failure to comply with the settlement terms will result in escalating penalties, including limitations on zoning changes and variances and restrictions on permitting any development except for residential projects containing affordable housing. (See related CP&DR coverage .) CP&DR Coverage: Success and Struggles in California's Downtowns The depths of the covid pandemic inspired dire proclamations about the “death of cities." Three years later, plenty of cities have contradicted those predictions—while a few still struggle. California cities represent both extremes , with downtowns in Los Angeles and, most notably, San Francisco still struggling while downtowns in San Diego, Fresno, and even Bakersfield are operating as if the pandemic never happened. At both ends of the spectrum, urban planners who focus on downtowns are thinking of new, and more aggressive, ways to maintain or regain their vibrancy. San Francisco’s Financial District may have to reinvent itself entirely. Once home to a high concentration of tech companies and professional services, such as law and accounting firms, the district has an estimated 18 million vacant square feet, and relatively little housing, leading to predictions that the city is facing a “doom loop.” Meanwhile, San Diego credits its success largely to its high concentration of residences--and is doubling-down on policies that led to a residential boom over the past decade. Over 8,700 units, many of them in high-rise buildings, have been developed since 2013. Quick Hits & Updates According to an analysis by the San Jose Mercury News, apartment construction in the Bay Area, particularly in Silicon Valley, has come to a standstill in the first half of 2023, with no new projects breaking ground. The slowdown is attributed to higher interest rates, reduced financing returns, lingering material and labor costs from the pandemic, declining demand for market-rate apartments, and persistent obstacles like local regulations and opposition. The Healdsburg City Council is evaluating three potential sites for the Sonoma-Marin Area Rail Transit ( SMART ) train extension following the availability of $30 million worth of funding to continue the construction north. The current depot location on Harmon Street has long been planned as the SMART depot, with two downtown station locations under consideration, one north and one south of North Street. SMART recently secured $30 million to cover the remaining cost of the $70 million extension to Windsor, while the rest of the extension still requires $82.4 million. (See related CP&DR coverage .) The Environmental Protection Agency (EPA) and the Department of the Army have issued a final rule , aligned with a recent Supreme Court ruling, changing the definition of "waters of the United States," potentially reducing federal protections for up to 63 percent of the nation's wetlands and affecting 1.2 million to 4.9 million miles of ephemeral streams. This revision comes in response to the Supreme Court's decision in Sackett v. EPA, which limited the EPA's regulatory power over certain waterways, with the EPA Administrator expressing disappointment but the obligation to follow the court's ruling. The highly-publicized " Doom Loop Walking Tour " in Downtown San Francisco, originally organized by an anonymous City Hall commissioner, was canceled at the last minute due to concerns about preserving the organizer's anonymity. However, the cancellation inadvertently revealed the identity of the organizer, the vice president of the city's Commission on Community Investment and Infrastructure, who subsequently resigned from his position amidst controversy and criticism from city officials and the community. The plans for a new housing project in San Jose, located on the former site of the Century 24 movie house, includes a 264-unit residential building with 35 studios, 113 one-bedroom, and 116 two-bedroom apartments, with approximately 52 to 53 units designated as affordable for low-income households. The developer plans to use a "builder's remedy" strategy to expedite the project's approval as San Jose's long-range housing plan is still awaiting state certification.

CP&DR Vol. 38 No. 8 August 2023

Financiers, Tech Leaders Purchase Land for "New City" in Northeast Bay Area Over the past five years, a company called Flannery Associates has been acquiring over $800 million of open and agricultural land near Fairfield in Solano County, with apparent ambitions to build a new city in the Bay Area hinterlands. The holdings total roughly 40,000 across 230 parcels. The company, which is registered as an agricultural company and has no apparent experience in real estate development, was founded by former Goldman Sachs trader Jan Sramek and has been funded by some of the wealthiest individuals in the tech industry, including Reid Hoffman (LinkedIn), Patrick and John Collison (Stripe), investor Michael Moritz, and the venture capital firm Andreessen Horowitz. Mortiz reportedly circulated investment memos describing the development of a new, walkable city with an innovative governance structure. The company has purchased land for as little as $5,000 per acre, but prices have risen to $20,000 per acre as available land has become more scarce. The purchases have raised national security concerns due to their proximity to Travis Air Force Base. A local mayor believes the company -- which has not previously stated their intentions behind the purchases -- could be planning to create a new city, as suggested by a poll reportedly sent to Solano County residents. This poll stated the potential city could include new homes, a solar energy farm, orchards, parks and open spaces. Federal entities like the U.S. Air Force's Foreign Investment Risk Review Office and the Committee on Foreign Investment are looking into the acquisitions. Orange County COG to Ask Supreme Court for Relief from Housing Goals The Orange County Council of Governments unanimously voted to ask the California Supreme Court to overturn the state's directive requiring cities and counties in Southern California to construct 1.34 million new homes by the end of the decade. This move comes after lower courts dismissed their former lawsuit alongside several Los Angeles County cities challenging the housing mandate's excessiveness. The Second District Court of Appeal upheld the original ruling, stating that legislative changes in 2004 shield the Regional Housing Needs Assessment process from legal intervention. Orange County leaders claim state housing and community development officials did not adhere to the law in determining the region's housing needs. The Attorney General's Office, representing HCD, emphasizes their commitment to aiding struggling California families in affording housing. The 1.34 million-unit mandate is applicable to all city and county jurisdictions within the Southern California Association of Governments region, encompassing LA, Orange, Riverside, San Bernardino, Ventura, and Imperial counties. The appeal filing deadline for the council of governments is September 5, with the California Supreme Court having the discretion to review the matter. (See related CP&DR coverage .) Supreme Court Throws Out Monterey County Ban on Oil Wells The state Supreme Court ruled, on a 7-0 decision, Monterey County's voter-approved ban on new oil and gas wells as invalid due to state laws promoting oil and gas production. Measure Z aimed to prohibit drilling new wells and wastewater injection in unincorporated areas of the county, but the court found it conflicting with existing state laws. While oil companies welcomed the decision, supporters of Measure Z expressed disappointment and emphasized the need for state law prioritizing public health and climate concerns over industry interests. The ruling avoided addressing the issue of restricting well locations. “By providing that certain oil production methods may never be used by anyone, anywhere, in the county, Measure Z nullifies — and therefore contradicts — (the state law's) mandate that the state ‘shall' supervise oil operation in a way that permits well operators to ‘utilize all methods and practices' the (state) supervisor has approved,” the ruling reads. San Diego Revamps Mission Bay Recreation and Restoration Plan The City of San Diego amended plans to turn parts of Mission Bay into marshland , including a 10 percent increased of land -- from 60 acres to 66 of the 505-acre redevelopment -- for golfing, tennis, sports and recreation. The new plan includes other additional offsite replacement recreation sites and a promise to minimize disruption to activities if fields are relocated. Many recreational institutions in the area disputed with environmental groups pushing for more wetlands and camping companies advocating for campgrounds. The plans initially began with the closure of a mobile home at Mission Bay, and have faced large community pushback. City officials stated they cannot promise any individual activity will be included in the plans. The city council will vote on a revised concept plan in the fall. CP&DR Coverage: CEQA & Solar As California enters a new world of renewable energy, local governments are struggling to make sure their plans and zoning ordinances are keeping up with changes in technology. A good example is the battle in North Livermore over the Aramis Solar project, a 347-acre solar farm in unincorporated Alameda County that would include 267,000 solar panels as well as on-site battery storage. The Alameda County Board of Supervisors approved the project back in 2020. But neighbors and local environmentalists, including the local chapter of the Audubon Society, have consistently opposed the project, calling it an industrial “power plant” and arguing that it would convert an agricultural area into an industrial area. Recently, an unpublished First District Court of Appeal ruling gave the county a complete victory on the Aramis project. Quick Hits & Updates A new report by SPUR studies San Jose's Al Fresco Initiative allowing local businesses to operate on sidewalks, street parking spaces and private parking lots, concluding that making the initiative permanent by making the program affordable, easy to implement and easy to scale up would enable the city to continue a program benefitting businesses and community members. The University of California Regents face a $4.5 million lawsuit from neighborhood groups linked to Berkeley's People's Park, alleging that they intentionally destroyed plants and property, hindering access and enjoyment of the park. The lawsuit, filed by three nonprofits, claims the destruction was a result of the university's order to clear the land for a housing development project, arguing the demolition damaged the park's features, including a wheelchair ramp to the "People's Stage," with the nonprofits seeking compensation for the lost vegetation and repairs, while emphasizing the importance of protecting the environment. (See related CP&DR coverage .) The Los Angeles City Council has approved the purchase of the Mayfair Hotel for $60 million to be used as part of the city's efforts to combat homelessness, despite concerns about safety, costs, and operational plans. The purchase, intended to provide interim housing and services, received mixed reactions, including concern over community engagement and the site's access to Skid Row residents, but was approved with a 12-2 vote. Oakland's lead negotiator for the A's Howard Terminal ballpark project left her position to join a real estate developer after the A's stopped payments in May while shifting their focus to exploring a new ballpark in Las Vegas. If the A's return to negotiations an assistant city administrator, will take over the role. The City and County of San Francisco has engaged San Francisco-based design firm Gensler on a "feasibility study" for a downtown soccer stadium that would replace the city's faltering Westfield mall. The city does not control the site, but Mayor London Breed hopes to "get a developer and others excited about making investments into the stadium as a way to diversify what happens in the downtown area." Several flagship stores have vacated the mall amid poor sales and lack of activity downtown. (See related CP&DR coverage .) Fairfield's Local Agency Formation Commission (LAFCO) approved the annexation of three county "islands" within city limits, while also approving a 5% cost-of-living increase for its employees and adding a project specialist position. The annexations involve several properties, an apartment complex and a local church as part of the ongoing effort to incorporate unincorporated properties within the Solano city. The Los Angeles City Council voted 8-6 to halt a contentious hotel project in Benedict Canyon due to concerns about environmental impact and public safety, citing potential ethics violations, environmental threats and community opposition. The development group behind the Mall of America abandoned plans to buy a 47-acre site in Canoga Park in Los Angeles after almost five years in escrow. The parcel requires extensive environmental cleanup due to groundwater and soil contamination. (See related CP&DR coverage .) Department of General Services and the Department of Housing and Community Development have selected McCormack Baron Salazar to lead the team to transform three state office buildings in Sacramento into affordable housing. This move is in line with Governor Newsom's efforts to address California's housing crisis by repurposing state properties for affordable housing, potentially creating 400 new homes in the heart of downtown Sacramento with various affordability levels. The U.S. Department of Housing and Urban Development agreed to exempt Los Angeles-based housing providers from rules requiring applicants to provide identification and documentation of their homeless status and income before moving into their apartments. Now, applicants can move into apartments and acquire the necessary documents, particularly prescient for people moving from interim to permanent housing.

As most readers of CP&DR are aware, the California Environmental Quality Act plays a unique role in California planning and development. Depending on your point of view, it’s either the one thing standing in the way of destruction of your neighborhood or the one thing standing in the way of providing needed housing. As we recently reported , both sides of the CEQA debate often use CEQA litigation – either the supposed prevalence of it or the supposed rareness of it – to defend their point of view. But, whichever side of the issue you are on, CEQA continues to operate as the “big dog” of California planning, overshadowing almost everything else in sight (with, currently, the possible exception of the builder’s remedy). There is no question that CEQA invites creative challenges to development projects. The whole law is designed to encourage the creation of citizen groups that will sue and try to find something wrong with the environmental analysis – or the procedure used to conduct the environmental analysis. But lately, we’ve seen California’s appellate courts having to deal with more creativity than usual. Most of this creativity results in nothing more than a lengthy and expensive win for the local government approving the development, but it does highlight the state of play for CEQA right now. Three recent cases – two of which resulted in wins for the local government, one of which resulted in a loss – are unusually good examples of this creativity. The first, in case you didn’t notice it when we reported on it, was what is probably best described as “the Montecito biking trail case”. Here’s what happened: There’s a popular trail in pricey Montecito called Hot Springs Canyon, which has only about eight or 10 off-road parking spaces. During COVID, trail usage went through the roof and people started parking on adjacent streets and roads. Then, nearby residents – and this is an extremely expensive neighborhoods, with houses currently on the market for between $4 million and $25 million – put boulders, plants, and other obstructions out in the public street to prevent people from parking there – a violation of the Santa Barbara County’s encroachment law. But the hikers simply parked around the boulders and obstacles, blocking traffic. When the county tried to enforce the encroachment ordinance, the neighbors sued, saying that removal of the obstacles was really a prelude to an expansion of the parking area and therefore was part of a “project” under CEQA. The Court of Appeal disagreed, saying that the county was simply trying to reclaim parking that already existed. “Any claimed ‘failure’ to follow the California Environmental Quality Act is not a defense to the commission of a crime,” the court wrote. ( CP&DR ’s writeup of this case can be found here .) The reaction to our writeup of this case was virtually unprecedented. When Bay Area YIMBY Max Dubler called the case “bonkers,” on X (formerly Twitter), we got more web traffic than we’d had on any other story all year. Which I guess means all this CEQA creativity is good for us, even if the creative lawyers lose in appellate court. But that wasn’t the only creative case we’ve run across recently. Here’s another recent creative case: In San Diego, the city decided to try to underground utilities – something that most neighborhoods welcome. But because the underground utilities would have required above-ground transformer boxes, a resident of the affluent close-in neighborhood of Kensington sued. (The resident has sued the city several times over tree removal, which might have been part of the undergrounding project, and has also written a book about the neighborhood .) This case has now been to the Court of Appeal twice. The first time, the appellate court ruled in favor of the neighbor – saying that the city’s mitigated negative declaration was insufficient because the city had not analyzed consistency between the project and sent the case back down for the judge to resolve. Instead of redoing the environmental analysis, the city simply abandoned the project. You’d think that would be the end of it. But the neighbor continued the litigation, arguing that the city needed to do the additional environmental analysis anyway because the project might be re-started at some point in the future. At that point, the appellate court called a halt to the whole thing, saying that if the city re-starts the project in the future, additional CEQA analysis can be done at that time. ( CP&DR ’s writeup of that case can be found here .) But both those creative challenges failed. The challenge to the Marilyn succeeded. If you’ve been to downtown Palm Springs, you’ve probably seen the 26-foot-tall, 34,000-pound statue of Marilyn Monroe – recreating her famous scene from The Seven-Year Itch – which is located in the middle of Museum Way in front of the Palm Springs Art Museum. When the statue was placed on Museum Way in 2020, quite a few locals objected, calling it a sexist statue. The director of the Art Museum said : “You come out of the museum and the first thing you're going to see is a 26-foot-tall Marilyn Monroe with her entire backside and underwear exposed…We serve over 100,000 school-age children that come to our museum every single year. What message does that send to our young people, our visitors and community to present a statue that objectifies women, is sexually charged and disrespectful?” (Following a variety of controversies, that particular museum director left Palm Springs after two years.) However distasteful misogyny is, it’s not an environmental impact. So the Committee to Relocate Marilyn had to find something else to sue over, and they did. The city had declared the statue’s location on Museum Way as exempt from CEQA and also declared the statue’s positioning (and closure of the street) as “temporary” under the state Motor Vehicle Code. (When you stand in front of it, the statue sure looks permanent.) In this case, the appellate court said the CEQA problem was the exemption was tied to a temporary closure and subsequently the city permanently closed the street. The court revived the CEQA part of the case on those grounds. ( CP&DR ’s writeup of the Marilyn case can be found here .) What’s the common theme? In all of these cases, the plaintiffs were opposed to something for reasons other than the reasons they sued on. The Montecito residents didn’t want to comply with the law, so they sued based on CEQA grounds. The San Diego resident feared her trees would be removed, so she sued based on the city’s Climate Action Plan. The Palm Springs Marilyn opponents thought the statue sent the wrong message, but they sued over CEQA technicalities. You can complain all you want about these kinds of cases, but, as I say in my CEQA summing up in Guide to California Planning , CEQA is doing what it is designed to do: Engage communities (affluent ones, anyway) in a robust debate over the environmental effects of proposed projects – even if those supposed environmental effects are sometimes a stretch. If you don’t want CEQA to do that, you’ve got to change the law in a big way. And, for a variety of reasons, nobody in Sacramento is willing to take that on.