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