Plan for San Francisco's Candlestick Point Megaproject Moves Forward
The redevelopment plan for Candlestick Point, a 280-acre site on San Francisco’s waterfront, recently received initial approval from the city’s Office of Community Investment and Infrastructure (OCII). This updated plan features taller buildings, the transfer of commercial space from the adjacent Hunters Point Shipyard and a focus on creating an “innovation district” to attract tech firms. However, significant changes include extending deadlines for public financing and construction due to previous delays. Community groups have raised concerns about the affordability of the new housing, arguing that it may exclude lower-income residents displaced by the redevelopment. The proposal now moves to further reviews, including the OCII Oversight Board and the Planning Commission, with ongoing debate about its impact on local communities and affordability.
Oakland Port Seeks New Proposed for A's Stadium Site at Howard Terminal
With the Oakland A’s having abandoned their plans for a $1 billion waterfront stadium and surrounding development at Howard Terminal, the Port of Oakland is now seeking new proposals for the site. Initially, the A’s envisioned a mixed-use project featuring a 35,000-seat ballpark, residential units, commercial space and public amenities. With the team's plans to relocate to Las Vegas and the exclusive negotiating agreement with the port expiring, the port aims to explore alternative uses for the disused 50-acre property. The port is open to proposals that include maritime, industrial, commercial, recreational and water-oriented developments. This shift represents a significant opportunity for the port to drive economic growth and job creation in the region.
Building Permits Fall across Southern California
Southern California's homebuilding activity has slowed due to high lending rates impacting developers. In the three months ending in July, permits for new housing units dropped by 13% year-over-year but were still 7% higher than the five-year average. The decline was consistent across the region, with permits down in Los Angeles, Orange, Inland Empire and San Diego counties. Multifamily permits fell sharply as apartment builders scaled back, while single-family permits also decreased, reflecting cautious homebuilders and rate-sensitive buyers. Despite the recent slowdown, permit numbers remain above the long-term average in some areas, suggesting mixed impacts on housing availability and affordability.
Goleta Housing Development Entagled in Dispute over Builder's Remedy, Measure G
A Goleta property owner is suing the City of Goleta over the right to utilize California’s builder’s remedy to construct 56 single-family homes, including 13 affordable units, on 12 acres called the "Shelby property." The application was an updated version of a development approved in a 2011 tract map. The City of Goleta rejected Glynne Couvillion's application in 2023, leading to litigation where the judge will review issues related to the Housing Accountability Act and builder’s remedy. The Shelby property, with a complex zoning history and recent changes, faces opposition from conservationists and local groups, while legal debates continue over the application of 2012's Measure G--which requires voter approval of changes to certain agricultural properties--and the project's adherence to current regulations. The outcome will impact Goleta’s housing landscape, addressing the city’s urgent need for affordable housing amidst ongoing planning and environmental concerns.
CP&DR Coverage: Protections for Threatened Bumblebee Could Impede Development
As California grapples with a deepening housing underproduction crisis, developers might be facing an unexpected challenger: Crotch’s bumblebee. And it could be just the beginning of a new era of endangered species protection, as more insects become eligible for protection – and the methodology for understanding listing and protection might be very different for insects. The bumblebee (scientific name: Bombus crotchii) has an extremely wide range within California, including the Mediterranean region, Pacific Coast, western Mojave desert, Central Valley, and foothills, and has also been observed in southwest Nevada near the California border. If the bumblebee were to be listed, it could pose significant challenges to developers all across the state. They would have to adhere to new regulations, including undergoing extensive survey processes and implementing unclear conservation practices, potentially delaying previously established timelines.
Quick Hits & Updates
Los Angeles' Measure ULA, a tax on high-value property sales aimed at funding housing initiatives, has generated $375 million since its implementation, falling well short of the expected $600 million to $1.1 billion annually. Despite facing legal challenges and opposition, the tax is moving forward, with plans to allocate $160 million next year for programs like social housing, eviction defense and support for low-income first-time homebuyers. (See related CP&DR coverage.)
The Afterthought Mine in Shasta County has been designated a Superfund site by the EPA due to its severe pollution, with acidic drainage 1,200 times above allowable limits contaminating Little Cow Creek and its tributary, the Sacramento River. The cleanup will involve extensive study and possibly passive treatment methods, but the site will require ongoing treatment for potentially hundreds of years, with costs fronted by taxpayers.
Though the Brightline West high speed rail line will run between California and Nevada, Senate Majority Leader Chuck Schumer is advocating for Siemens Mobility to manufacture its trainsets in Upstate New York's Southern Tier, which could generate hundreds of jobs. Siemens was chosen to build the American Pioneer 220 trainsets for the Brightline. Schumer highlighted the Southern Tier's strong manufacturing base and skilled workforce as key advantages. (See related CP&DR coverage.)
California's homelessness crisis continues to grow, with nearly 186,000 individuals affected, though the rate of increase has slowed compared to previous years, with the largest increase statewide occurring in San Joaquin County. While some counties have reported progress through increased funding and new shelters, discrepancies in counting methods and data accuracy challenge efforts to fully understand and address the crisis.
A Los Angeles County Superior Court judge has struck down a city law aimed at phasing out oil production within city limits, ruling that state jurisdiction supersedes local control over drilling operations. The law, backed by the L.A. City Council and environmental activists, sought to halt new oil and gas extraction and end existing operations within 20 years; however, the ruling may be overturned if a pending state bill allowing local governments more control over oil operations is signed by Governor Newsom.
Under the Green and Resilient Retrofit Program, HUD has awarded $3.6 million in Surplus Cash Loans to Pleasant View Apartments in Fresno to support energy efficiency and climate resilience improvements. This funding is part of a larger initiative to enhance nearly 2,000 homes across the country, focusing on reducing carbon emissions and increasing sustainability in housing.
Recent tests at a former rocket testing site in Canoga Park revealed high levels of toxic chemicals, including TCE and PCE, in nearby homes and businesses, prompting calls for further investigation. The report recommends additional testing at residential and commercial sites to the north and east of the former Rocketdyne location, as groundwater may be transporting the detected toxic chemicals in those directions.
A University of California, Davis study found that over 50% of ride-hailing trips in California replaced more sustainable transportation options like public transit and cycling, or resulted in new vehicle miles, highlighting the environmental impact of these services. The research, conducted to inform the Clean Miles Standard, also revealed that ride-hailing disproportionately affects those without personal vehicles or from racial and ethnic minority groups and suggests improvements such as better integration with public transit and increased vehicle efficiency to enhance sustainability.
A recent U.S. Geological Survey study revealed a tenfold increase in post-fire erosion in Northern California from the late 1980s to the 2010s, exacerbated by larger and more intense wildfires, which poses significant risks to water resources and ecosystems. This erosion, which is expected to worsen with climate change, threatens to reduce reservoir capacities, harm aquatic life and increase flood risks, underscoring the need for improved land and forest management practices to mitigate these effects.
San Jose has become the priciest city in the U.S. for both buying and renting homes, with average home prices at around $1.5 million and median rents exceeding $3,300 monthly. Experts suggest renting may be more financially advantageous in Silicon Valley due to the high cost disparity between buying and renting.
The Revitalizing Downtowns and Main Streets Act federal legislation proposes a 20% tax credit for converting underutilized commercial properties into residential units, with additional incentives for affordable housing and rural areas. The bill aims to address high office vacancy rates and the affordable housing crisis exacerbated by the Covid-19 pandemic and is supported by multiple trade groups with a companion bill in the Senate.
