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Valero Partners to Explore Redevelopment of Benicia Refinery
Valero Energy Corp. is exploring the potential closure or transformation of its 900-acre oil refinery in Benicia, a move that could mark a significant shift for the region. In partnership with Signature Development Group—known for major Bay Area projects like Oakland’s Brooklyn Basin and Menlo Park’s Willow Village—Valero is assessing redevelopment options for the waterfront site. The refinery’s future became uncertain after Valero informed the state it may idle or shut down the plant, part of a broader strategic review of its California operations. The Benicia property, with its scenic hills and views of the Carquinez Strait, offers prime real estate potential. Signature Development emphasized its intention to work closely with the city and community as plans evolve, potentially paving the way for one of the Bay Area’s most transformative redevelopment efforts.
Los Angeles Housing Pipeline Nearly Dries Up
New housing permits in Los Angeles continued to decline this year, with just 1,325 homes approved—a 56.8% drop from the same period in 2024, according to Hilgard Analytics. The study cites high interest rates, economic uncertainty, regulatory hurdles and the impacts of the fires as key factors behind the slowdown. Federal tariffs, labor shortages from immigration policies and the impact of Measure ULA’s transfer tax have also strained development efforts, leading to fewer affordable housing projects. The study states new local and state initiatives—such as the Citywide Housing Incentive Program and proposed state bills like AB 698–could help revive construction by easing regulations and boosting funding. Notably, only four of Los Angeles' fifteen City Council districts surpassed 100 housing approvals this quarter, while areas like the San Fernando Valley saw permit activity decrease by over 90%.
Upgraded Honda Center to Anchor Major Anaheim Development
The Samueli family, owners of the Anaheim Ducks hockey team, have launched a $1 billion privately funded renovation of Honda Center, including a new six-story digital entrance, improved dining areas, luxury suites and revamped entry plazas. This project is part of the broader $4 billion OCVIBE district—a mixed-use development with hotels, office space, residential units and a concert venue—primarily funded by the owners. Anaheim is contributing with $400 million in bonds for parking and $100 million for nearby riverfront enhancements and the Honda will remain open during construction through 2027. The arena is one of only two major leauge sports venues in California that are owned by ther respective municipalities. (See related CP&DR coverage.)
Report: Financing Stacks Hinder Housing Development
According to UC Berkeley’s Terner Center, California’s affordable housing development process is slowed and made more expensive by developers piecing together funding from numerous public sources. Analysis of projects awarded Low-Income Housing Tax Credits (LIHTC) between 2020 and 2023 shows that each additional funding source adds roughly four months to project timelines and increases per-unit costs by about $20,460. Governor Newsom’s proposal to create a new California Housing and Homelessness Agency aims to streamline housing finance, though the plan does not currently integrate key agencies overseeing tax credits. Developers serving populations with greater needs, such as those experiencing homelessness, are particularly burdened by having to secure multiple funding sources. The study recommends deeper consolidation of housing finance functions and greater standardization across funding programs to cut costs and speed up affordable housing production.
San Diego Balks at ADU Development
San Diego officials took steps on to roll back a policy that allowed property owners to build apartment buildings in the backyards of single-family homes. The "ADU bonus program" had been successful in exceeding state requirements for accessory dwelling units (ADUs), but it also led to significant opposition, especially in historically Black communities like District 4. Following community backlash regarding issues like traffic, parking and neighborhood aesthetics, the city council voted to repeal the program in single-family zones with large lots. The council also directed staff to propose reforms to the program.
CP&DR Coverage: Another Round of CEQA Reform Bills
The era of “Swiss cheese” CEQA may be over – at least if Sen. Scott Wiener and Assemblywoman Buffy Wicks are successful in the Legislature this year. It’s a dramatic departure from their strategy over the past few years, which has been to end-run the California Environmental Quality Act by increasing the types of housing projects that could be approved by ministerial action. Over the past couple of years, the Legislature has selectively punched a couple of holes in the CEQA when public pressure has forced them to – as, for example, when the so-called “People’s Park” court ruled declared student noise a potentially significant impact under CEQA. But this year Wiener and Wicks have gotten far more aggressive. Wiener’s SB 607 and Wicks’ AB 609 don’t fundamentally reform CEQA’s structure. But both of them do greatly narrow CEQA’s potential impact on a wide variety of projects, including housing.
Quick Hits & Updates
The House passed a resolution to remove federal endangered species protections for California’s longfin smelt, arguing the designation harms water access for agriculture. Critics, including environmentalists and Democrats, say the move disregards scientific evidence of the fish's severe decline and threatens broader ecological health in the San Francisco Bay Delta.
The California Department of Housing and Community Development has awarded nearly $119 million in federal funds to support affordable housing and homelessness services, primarily targeting rural and tribal communities. The funding aims to help develop 487 rental homes and expand emergency shelters, outreach and rapid rehousing programs to improve housing stability for vulnerable Californians.
The movement to make La Jolla its own city has taken a significant step forward after the Local Agency Formation Commission (LAFCO) validated enough petition signatures to initiate the formal secession process. This reverses a prior ruling by the Registrar of Voters, putting the proposal just 12 signatures above the required threshold. Now, LAFCO commissioners must vote on whether the cityhood proposal moves to the San Diego citywide ballot—a development opposed by San Diego Mayor Todd Gloria, who criticized LAFCO for reinstating previously rejected signatures.
Inglewood officials are abandoning plans to build a $2.4-billion automated people mover project to a more immediate and modest solution for improving traffic flow ahead of the 2028 Summer Olympics. The revised Inglewood Transit Connector (ITC) plan now emphasizes mobility hubs, shuttle services and enhanced traffic measures like bus-only lanes and synchronized traffic signals.
The proposed gondola to Dodger Stadium hit a major setback after a California appellate court ruled that Metro must rescind its approval of the project’s environmental impact report (EIR) due to deficiencies in addressing noise mitigation and consultation with a land conservancy. Though most of the lawsuit’s claims were dismissed, this ruling effectively halts the project until a revised EIR is completed and approved—potentially jeopardizing the goal of launching the $385–$500 million transit system in time for the 2028 Olympics.
Representative Salud Carbajal (D-CA-24) has reintroduced the California Clean Coast Act, a bill aimed at permanently banning offshore oil and gas leasing off California’s coast to protect marine ecosystems and coastal economies from the risks of oil spills.
The newly-proposed SB 675 seeks to expedite the environmental review and approval process for the Seaport San Diego project, limiting the California Coastal Commission's ability to deny or impose conditions on the development. The bill, authored by state Senator Steve Padilla, aims to provide certainty and timely review for the $3.8 billion project by setting strict review timelines and addressing delays in the permitting process, although it has faced opposition from environmental groups and the Coastal Commission.
A new study out of USC found relaxing strict tree planting regulations in Los Angeles neighborhoods of Studio City and Boyle Heights could expand potential tree planting space by 26% without impacting safety while improving tree canopy and shade availability citywide.
According to the SF Chronicle, San Francisco's legislation to promote small apartment buildings, like fourplexes, has had limited success, with only 11 applications submitted, most of which are stalled or delayed. High construction costs, bureaucratic hurdles and lack of financial feasibility for small developers are major factors preventing the legislation from generating significant new housing.
Los Angeles City Council has approved a revised Citywide Adaptive Reuse Ordinance set to go into effect in 2025, expanding adaptive reuse incentives citywide and making it easier to convert underutilized buildings into housing.
After multiple years of planning, San Mateo City Council officially opposed a $300 million highway widening project, citing concerns over environmental impact, potential displacement and the project's ability to address traffic. The city plans to draft a letter to state and county agencies to reconsider the project and instead utilize and expand public transportation.
Multiple California cities appear in the top 20 happiest cities in the nation according to WalletHub when considering income, life satisfaction, rates of divorce and depression and overall wellbeing. The list crowns Fremont as the happiest city, followed by San Jose (2nd), Irvine (3rd), San Francisco (9th), Huntington Beach (10th), San Diego (15) and Garden Grove (20th).
Environmental groups are raising concerns over the Newport-Mesa Unified School District's plans to lease an almost 12-acre site within the Randall Preserve, arguing the district violated the Surplus Land act by not notifying required agencies of their plans The groups claim that only one of the available acres is developable and the district maintains the land is exempt and the district has not finalized plans.