At least eight cities and coalitions of cities in California have submitted proposals, among 238 nationwide, to lure Amazon's second headquarters by the deadline, last Thursday. The company’s criteria include leading universities systems, proximity to a major airport, and enough land to accommodate 8 million square feet and 50,000 employees. A multifaceted bid by the City of Los Angeles, the County of Los Angeles, the City of Pomona, the Pomona Fairplex, and Cal Poly Pomona proposed a joint plan through the Los Angeles Economic Development Corp. Irvine is bidding through the Irvine Company, and San Diego, and Chula Vista have each submitted proposals. Huntington Beach and Long Beach teamed up to offer “Sand, Sea and Air,” which includes the Boeing campus with 500,000 square feet and a 164-acre campus that can accommodate 5.4 million buildable square feet adjacent to Long Beach Airport. Santa Ana has proposed a 10 million-square-foot hub with developer Michael Harrah in the old Orange County Register’s building.
In the Bay Area, the City of San Jose submitted a bid, as did a coalition of four cities — Concord, Fremont, Oakland, Richmond and San Francisco — with 60 million square feet of commercial across three counties. The proposal includes properties such as the former Concord Naval Weapons Stations, Hunters Point, and the Oakland Coliseum. It also includes 45,000 new homes with the motto: “Don’t aggregate and coagulate. Disperse and be diverse”. Gov. Jerry Brown offered hundreds of millions of dollars in tax breaks and other incentives if Amazon chooses a California city as its second home. (See prior CP&DR commentary.)
In the Bay Area, the City of San Jose submitted a bid, as did a coalition of four cities — Concord, Fremont, Oakland, Richmond and San Francisco — with 60 million square feet of commercial across three counties. The proposal includes properties such as the former Concord Naval Weapons Stations, Hunters Point, and the Oakland Coliseum. It also includes 45,000 new homes with the motto: “Don’t aggregate and coagulate. Disperse and be diverse”. Gov. Jerry Brown offered hundreds of millions of dollars in tax breaks and other incentives if Amazon chooses a California city as its second home. (See prior CP&DR commentary.)
Fresno Water Fee Prompts Suit by Developers
The Fresno City Council recently approved, 5-1, a water capacity fee which adds up to $4,246 for a new single-family home in April. Three major home-builders are challenging the fees in court, saying they are too high, unfair, and amount to a tax that violates state law. The trial is scheduled for March 2018 in Fresno County Superior Court. One developer, Granville Homes president Darius Assemi, told the council the fee will be passed onto new homebuyers and therefore they need to make sure it is an appropriate fee. City Attorney Douglas Sloan says the fees are only what’s needed to cover the cost of service and that the fees bear a “fair or reasonable relationship” to new homeowners’ burdens on future water demands.
Planning Funds Available for Hazard Mitigation
Planning Funds Available for Hazard Mitigation
The Governor’s Office of Emergency Services is accepting
applications for funding through the Hazard Mitigation Grant Program, available as a result of three Presidential Disaster Declarations. Planning activities that reduce the effects of future natural disasters are eligible for the funding if the subapplicants are state agencies, local governments, special districts, and some private non-profits. Planning Subapplications are due by January 1, 2018. Eligible activities include updating or enhancing sections of the current FEMA-approved mitigation plan; integrating information from mitigation plans, specifically risk assessment or mitigation strategies; building capability through delivery of technical assistance and training; and evaluating adoption and/or implementation of ordinances that reduce risk and/or increase resilience.
California Homes Rank among Most Expensive in Study of Land and Construction Costs
California Homes Rank among Most Expensive in Study of Land and Construction Costs
A new study by Buildzoom shows home prices have risen more dramatically than construction costs have. The study estimated the average home value compared to the cost of replacing the home, as well as related measures for zip code areas within each of the largest U.S. metro regions. In Coastal metro areas the high cost of housing is not driven by the construction costs but rather by the high cost of land (scarcity of zoned units, not available land). The research shows how timing is vital in a developers’ land acquisition. Among cities with the highest average replacement cost per home, California cities occupied four of the five top spots; the average land value per home followed a similar pattern, meaning that the intrinsic costs of land — minutes the costs of building — are highest in California. The San Jose metro area had the highest average home value $1,133,000 and Buffalo metro the lowest $167,000. The data shows that in coastal metro regions the value of homes is derives less from their materials or construction but rather the opportunity they offer for living and working in the city. The goal of the research is to indicate the challenges that restricted housing supply- rules governing land use- brings to a region.
Quick Hits & Updates
The Sacramento Bee projects that the wildfires destroyed roughly 6,700 homes and business in and around Santa Rosa, which is approximately five percent of the housing stock. The Department of Housing and Urban Development says Santa Rosa has an unmet rental demand of more than 1,700 units over the next three years and only 200 new rental homes are under construction. The population of Santa Rosa had grown by 1,000 annually over the last seven years with fewer than 300 new homes built in 2016.
The California State Transportation Agency is now accepting applications for the next round of Transit and Intercity Rail Capital Program (TIRCP) awards and the first round of State Rail Assistance (SRA) Programs awards. These grants combined will provide about $2.5 billion over the next five years to transit and rail operators across the state. The TIRCP official Call for Projects, with detailed information about application requirements, is located here. Program Guidelines are located here. SRA Guidelines, with detailed information about program requirements, are located here.
The California Air Resources Board released its Final Staff Report on the Proposed Update to the Senate Bill 375 Greenhouse Gas Emission Reduction Targets. The board hearing is scheduled for November 16 and the Final Environmental Analysis will be available at least ten days before the hearing.
Three Newport Beach real estate firms have been picked to head the redevelopment of Dana Point Harbor. The mixed-use project is expected to cost around $300 million and will include new restaurants, shops, hotels, and other waterfront properties.
San Diego City Councilmember Scott Sherman is proposing to soften park construction obligations that housing developers face to spur more development. Instead, developers should spend their required park contribution on adding playgrounds or other amenities to an existing park instead of future parks that may never be built.
Los Angeles Metro, with $619 million from Measure M, is forging ahead with plans to extend the Green and Crenshaw/LAX Lines 4.6 miles southward to a new transit center in Torrance. There are currently two routes under consideration: one following the railroad right-of-way and the other along Hawthorne Boulevard. Both alternatives would service the new station being built to connect with the LAX Automated People Mover. Metro is conducting a supplemental alternative analysis for the project and is expected to go to the Board for a vote in winter 2018.
Google’s development partner, TC Agoge, has struck a deal with the Sucessor Agency to the San Jose Redevelopment Agency to buy a vacant property near the SAP Center. In June the tech company revealed its plans to build a transit-oriented campus of 6-8 million square feet where 15,000 to 20,000 employees might work. Google is incremental purchasing properties in the western edges of downtown near Diridon Station. (See prior CP&DR coverage.)
Sacramento Superior Court judge dismissed a lawsuit trying to block a 15-story residential tower in the midtown neighborhood that was blocked on the grounds of it being too dense. The Yamanee would be the tallest building in midtown, with three floors of parking and ten floors, or 134 units, of condominiums. The lawsuit alleged the city oversetepped its discretion in allowing the project to be three times more dense than the general plan’s designation for the area. Superior Court Judge Timothy Frawley denied the challenge and found the city has the authority to allow higher density when a project provides “significant community benefit.”
JP Morgan Chase has awarded $3.5 million grant to a two nonprofit lenders: Housing Trust Silicon Valley and Genesis LA Economic Development Corp. to help spur construction of small-scale, affordable housing units such as accessory dwelling units. The funds provide seed money for a pilot program expected to begin next year. The low-cost flexible loans would be made to homeowners in exchange for their promise to rent the adu at affordable costs to low and middle-income earners.
A group of environmental conservation groups filed an appeal against the Mid County Parkway, a proposed 16-mile east-west highway corridor that would link the cities of Perris and San Jacinto. The groups challenge the $2 billion project saying it would cut through low-income neighborhoods, threaten wildlife preserves, and worsen air pollution. The project would be partially paid through Measure A, a half-cent sales tax approved by Riverside County voters.
ATTOM Data Solutions released its 2017 U.S. Natural Hazard Housing Risk Index. According to the Risk Heat Map, all of California is located in the “Very High” risk category. TO collect the data, ATTOM indexed more than 3,000 counties and 22,000 cities on the risk of earthquakes, floods, hail, hurricane storm surge, tornadoes, and wildfires. In California, Nevada County (Truckee) made the top five list for highest overall natural hazard risk and San Jose, Los Angeles, and Bakersfield were three of the top five cities to make the list.
The San Francisco Planning Commission approved changes to the Western Shoreline Area Plan including closing the southern stretch of the Great Highway and relocating the parking lot and restrooms. The amendments also call for added protection for the 14-foot-wide wastewater infrastructure buried under the Great Highway. The plans still need further approval at the local and state levels, including the California Coastal Commission.
The federal government has given Cadiz Inc, the go-ahead to lay pipeline for its proposed desert water project. In 2015, Bureau of Land Management said Cadiz couldn't use the existing railroad right-of-way and would have to obtain federal permission, which would have triggered a lengthy environmental review. The BLM follows other Trump administration moves to eliminate legal hurdles erected when President Obama was in office.
The Housing Authority of the City of Los Angeles is reopening the Section 8 waiting list lottery for the first time in 13 years. The agency is expecting more than 600,000 people to apply for the rental subsidy program and only 20,000 will be selected for placement on the waiting list. According to Mayor Garcetti’s office, 56,000 households in the City are currently enrolled.
San Francisco Supervisor Norman Yee presented a revised ordinance that allows robots on the streets and sidewalks but only with permits and a human nearby to monitor the devices. Yee’s initial ordinance would have outright banned the devices from city sidewalks, but it did not appear to have enough votes to pass the board.
Los Angeles Board of Supervisors voted unanimously to look into restoring an expired ordinance that could help control rising rents and evictions at mobile home parks. The motion will begin by asking county departments to look into the feasibility of such an ordinance.
The California State Transportation Agency is now accepting applications for the next round of Transit and Intercity Rail Capital Program (TIRCP) awards and the first round of State Rail Assistance (SRA) Programs awards. These grants combined will provide about $2.5 billion over the next five years to transit and rail operators across the state. The TIRCP official Call for Projects, with detailed information about application requirements, is located here. Program Guidelines are located here. SRA Guidelines, with detailed information about program requirements, are located here.
The California Air Resources Board released its Final Staff Report on the Proposed Update to the Senate Bill 375 Greenhouse Gas Emission Reduction Targets. The board hearing is scheduled for November 16 and the Final Environmental Analysis will be available at least ten days before the hearing.
Three Newport Beach real estate firms have been picked to head the redevelopment of Dana Point Harbor. The mixed-use project is expected to cost around $300 million and will include new restaurants, shops, hotels, and other waterfront properties.
San Diego City Councilmember Scott Sherman is proposing to soften park construction obligations that housing developers face to spur more development. Instead, developers should spend their required park contribution on adding playgrounds or other amenities to an existing park instead of future parks that may never be built.
Los Angeles Metro, with $619 million from Measure M, is forging ahead with plans to extend the Green and Crenshaw/LAX Lines 4.6 miles southward to a new transit center in Torrance. There are currently two routes under consideration: one following the railroad right-of-way and the other along Hawthorne Boulevard. Both alternatives would service the new station being built to connect with the LAX Automated People Mover. Metro is conducting a supplemental alternative analysis for the project and is expected to go to the Board for a vote in winter 2018.
Google’s development partner, TC Agoge, has struck a deal with the Sucessor Agency to the San Jose Redevelopment Agency to buy a vacant property near the SAP Center. In June the tech company revealed its plans to build a transit-oriented campus of 6-8 million square feet where 15,000 to 20,000 employees might work. Google is incremental purchasing properties in the western edges of downtown near Diridon Station. (See prior CP&DR coverage.)
Sacramento Superior Court judge dismissed a lawsuit trying to block a 15-story residential tower in the midtown neighborhood that was blocked on the grounds of it being too dense. The Yamanee would be the tallest building in midtown, with three floors of parking and ten floors, or 134 units, of condominiums. The lawsuit alleged the city oversetepped its discretion in allowing the project to be three times more dense than the general plan’s designation for the area. Superior Court Judge Timothy Frawley denied the challenge and found the city has the authority to allow higher density when a project provides “significant community benefit.”
JP Morgan Chase has awarded $3.5 million grant to a two nonprofit lenders: Housing Trust Silicon Valley and Genesis LA Economic Development Corp. to help spur construction of small-scale, affordable housing units such as accessory dwelling units. The funds provide seed money for a pilot program expected to begin next year. The low-cost flexible loans would be made to homeowners in exchange for their promise to rent the adu at affordable costs to low and middle-income earners.
A group of environmental conservation groups filed an appeal against the Mid County Parkway, a proposed 16-mile east-west highway corridor that would link the cities of Perris and San Jacinto. The groups challenge the $2 billion project saying it would cut through low-income neighborhoods, threaten wildlife preserves, and worsen air pollution. The project would be partially paid through Measure A, a half-cent sales tax approved by Riverside County voters.
ATTOM Data Solutions released its 2017 U.S. Natural Hazard Housing Risk Index. According to the Risk Heat Map, all of California is located in the “Very High” risk category. TO collect the data, ATTOM indexed more than 3,000 counties and 22,000 cities on the risk of earthquakes, floods, hail, hurricane storm surge, tornadoes, and wildfires. In California, Nevada County (Truckee) made the top five list for highest overall natural hazard risk and San Jose, Los Angeles, and Bakersfield were three of the top five cities to make the list.
The San Francisco Planning Commission approved changes to the Western Shoreline Area Plan including closing the southern stretch of the Great Highway and relocating the parking lot and restrooms. The amendments also call for added protection for the 14-foot-wide wastewater infrastructure buried under the Great Highway. The plans still need further approval at the local and state levels, including the California Coastal Commission.
The federal government has given Cadiz Inc, the go-ahead to lay pipeline for its proposed desert water project. In 2015, Bureau of Land Management said Cadiz couldn't use the existing railroad right-of-way and would have to obtain federal permission, which would have triggered a lengthy environmental review. The BLM follows other Trump administration moves to eliminate legal hurdles erected when President Obama was in office.
The Housing Authority of the City of Los Angeles is reopening the Section 8 waiting list lottery for the first time in 13 years. The agency is expecting more than 600,000 people to apply for the rental subsidy program and only 20,000 will be selected for placement on the waiting list. According to Mayor Garcetti’s office, 56,000 households in the City are currently enrolled.
San Francisco Supervisor Norman Yee presented a revised ordinance that allows robots on the streets and sidewalks but only with permits and a human nearby to monitor the devices. Yee’s initial ordinance would have outright banned the devices from city sidewalks, but it did not appear to have enough votes to pass the board.
Los Angeles Board of Supervisors voted unanimously to look into restoring an expired ordinance that could help control rising rents and evictions at mobile home parks. The motion will begin by asking county departments to look into the feasibility of such an ordinance.
