City Government
Council President Reid Says Oak Knoll Project Will Bring Jobs, Housing And $Millions to City
Oak Knoll will contribute $20 Million for affordable housing
The Oakland City Council’s ongoing budget discussion reveals how the loss of redevelopment funding makes it more difficult for the city to generate revenues for jobs and housing services, especially to meet the needs of ever growing homeless population.
Even though Governor Jerry Brown took away Oakland’s flexible redevelopment agency funds after he – while serving as Oakland’s mayor – had utilized that pot of money to assist developers his administration approved of, City Council President Larry Reid still remains optimistic that the former Oak Knoll naval hospital site in his district can be a major opportunity to bring much needed revenues to the city.
Reid’s support for Oak Knoll began 25 years ago when he was the chief of staff to Mayor Elihu Harris, and now he is still touting the potential benefits of developing Oak Knoll.
“Oakland is a city in transition, and Oak Knoll’s commercial and housing plans will be a key part for the revitalization of the Upper East Oakland area,” said Reid.
Reid, who has helped establish residence-based hiring and entrepreneurial policies for the city’s formerly incarcerated and minority populations, claims Oak Knoll can change East Oakland for a lifetime.
“This city has passed equity policies that are designed to give everyone an opportunity. This project brings community benefits that can help us meet that challenge.”
Reid cites a recent Economic Benefits Report that outlines how the Irvine-based SunCal developer could bring an estimated $54.4 million recurring revenues to the City of Oakland and create a total of more than 5,000 jobs, including the hiring of 2,500 people during the construction phases.
Reid, who constantly fights for East Oakland inclusion, says, “Oak Knoll is the second largest project in Oakland.”
“Oak Knoll can be a super catalyst to all the projects in my district,” he says. “And its success will also spill over into communities below the 580 Freeway.”
The Oak Knoll plan will include 935 new homes, 72,000 square feet of commercial retail space and a publicly accessible community facility that will provide 76 acres of public parks, open spaces and a memorial honoring those who served and were treated at the Oak Knoll Naval Hospital.
“The one-time infusion of cash for the city will come in the form of millions of dollars in straight up fees to the city, and millions of dollars more to the Oakland Unified School District,” said Reid.
“Alameda County stands to benefit to the tune of nearly $10 million in business sales revenue plus $1.3 million in property taxes,” he said.
“I ran for re-election to make sure that Oak Knoll actually happened, and because I made a promise to the residents who live in that neighborhood that we would get this project done by working together, I believe that finally we are now on our way for approval this year.”
Reid said an analysis of the SunCal project shows projected revenues of $29.3 million in spending by new residents with $3.8 million going to the city general fund from sales and property taxes, licenses and permits.
And $4.6 million is expected to also go to other local agencies such as the Oakland Unified School District, BART and East Bay Regional Parks. In addition, $20 million will be paid by SunCal to the city for affordable housing.
“Further, the one-time revenues related to construction activity will bring $875 million for the local economy through direct and indirect multiplier investment effects, while it contributes millions in fees to East Bay Municipal Utility District (EBMUD),” he said.
Another important aspect of the project is that Oak Knoll will contribute $20 million to the City of Oakland to be used to help meet its affordable housing goals. “Oakland is changing, and we must be the kind of city that allows individuals to work in, live in and raise their children in a safe environment,” he said.
“If we don’t do this project, the vacant site will continue to deteriorate, be an ongoing public safety hazard and will be just one more drain on our scarce community resources,” he said.
“I won’t let that happen.”
The project is currently up for city council approval, and council action is expected in July.
(Next: Post analyzes SunCal’s economic assumptions of its direct and indirect multiplier effect on Oakland’s economy.)
Bay Area
Glydways Breaking Ground on 14-Acre Demonstration Facility at Hilltop Mall
Glydways has been testing its technology at CCTA’s GoMentum Station in Concord for several years. The company plans to install an ambitious 28-mile Autonomous Transit Network in East Contra Costa County. The new Richmond facility will be strategically positioned near that project, according to Glydways.
The Richmond Standard
Glydways, developer of microtransit systems using autonomous, small-scale vehicles, is breaking ground on a 14-acre Development and Demonstration Facility at the former Hilltop Mall property in Richmond, the Contra Costa Transportation Authority (CCTA) reported on social media.
Glydways, which released a statement announcing the project Monday, is using the site while the mall property undergoes a larger redevelopment.
“In the interim, Glydways will use a portion of the property to showcase its technology and conduct safety and reliability testing,” the company said.
Glydways has been testing its technology at CCTA’s GoMentum Station in Concord for several years. The company plans to install an ambitious 28-mile Autonomous Transit Network in East Contra Costa County. The new Richmond facility will be strategically positioned near that project, according to Glydways.
The new Richmond development hub will include “over a mile of dedicated test track, enabling Glydways to refine its solutions in a controlled environment while simulating real-world conditions,” the company said.
Visitors to the facility will be able to experience on-demand travel, explore the control center and visit a showroom featuring virtual reality demonstrations of Glydways projects worldwide.
The hub will also house a 13,000-square-foot maintenance and storage facility to service the growing fleet of Glydcars.
“With this new facility [at the former Hilltop Mall property], we’re giving the public a glimpse of the future, where people can experience ultra-quiet, on-demand transit—just like hailing a rideshare, but with the reliability and affordability of public transit,” said Tim Haile, executive director of CCTA.
Janet Galvez, vice president and investment officer at Prologis, owner of the Hilltop Mall property, said her company is “thrilled” to provide space for Glydways and is continuing to work with the city on future redevelopment plans for the broader mall property.
Richmond City Manager Shasa Curl added that Glydways’ presence “will not only help test new transit solutions but also activate the former Mall site while preparation and finalization of the Hilltop Horizon Specific Plan is underway.
Alameda County
Last City Council Meeting of the Year Ends on Sour Note with Big Budget Cuts
In a five to one vote, with Councilmembers Carroll Fife and Janani Ramachandran excused, the council passed a plan aimed at balancing the $130 million deficit the city is facing. Noel Gallo voted against the plan, previously citing concerns over public safety cuts, while Nikki Fortunato-Bas, Treva Reid, Rebecca Kaplan, Kevin Jenkins, and Dan Kalb voted in agreement with the plan.
By Magaly Muñoz
In the last lengthy Tuesday meeting of the Oakland City Council for 2024, residents expressed strong opposition to the much needed budget cuts before a change in leadership was finalized with the certification of election results.
In a five to one vote, with Councilmembers Carroll Fife and Janani Ramachandran excused, the council passed a plan aimed at balancing the $130 million deficit the city is facing. Noel Gallo voted against the plan, previously citing concerns over public safety cuts, while Nikki Fortunato-Bas, Treva Reid, Rebecca Kaplan, Kevin Jenkins, and Dan Kalb voted in agreement with the plan.
Oakland police and fire departments, the ambassador program, and city arts and culture will all see significant cuts over the course of two phases.
Phase 1 will eliminate two police academies, brown out two fire stations, eliminate the ambassador program, and reduce police overtime by nearly $25 million. These, with several other cuts across departments, aim to save the city $60 million. In addition, the council simultaneously approved to transfer restricted funds into its general purpose fund, amounting to over $40 million.
Phase 2 includes additional fire station brownouts and the elimination of 91 jobs, aiming to recover almost $16 million in order to balance the rest of the budget.
Several organizations and residents spoke out at the meeting in hopes of swaying the council to not make cuts to their programs.
East Oakland Senior Center volunteers and members, and homeless advocates, filled the plaza just outside of City Hall with rallies to show their disapproval of the new budget plan. Senior residents told the council to “remember that you’ll get old too” and that disturbing their resources will only bring problems for an already struggling community.
While city staff announced that there would not be complete cuts to senior center facilities, there would be significant reductions to staff and possibly inter-program services down the line.
Exiting council member and interim mayor Bas told the public that she is still hopeful that the one-time $125 million Coliseum sale deal will proceed in the near future so that the city would not have to continue with drastic cuts. The deal was intended to save the city for fiscal year 2024-25, but a hold up at the county level has paused any progress and therefore millions of dollars in funds Oakland desperately needs.
The Coliseum sale has been a contentious one. Residents and city leaders were originally against using the deal as a way to balance the budget, citing doubts about the sellers, the African American Sports and Entertainment Group’s (AASEG), ability to complete the deal. Council members Reid, Ramachandran, and Gallo have called several emergency meetings to understand where the first installments of the sale are, with little to no answers.
Bas added that as the new Alameda County Supervisor for D5, a position she starts in a few weeks, she will do everything in her power to push the Coliseum sale along.
The city is also considering a sales tax measure to put on the special election ballot on April 15, 2025, which will also serve as an election to fill the now vacant D2 and mayor positions. The tax increase would raise approximately $29 million annually for Oakland, allowing the city to gain much-needed revenue for the next two-year budget.
The council will discuss the possible sales tax measure on January 9.
Activism
Protesters Gather in Oakland, Other City Halls, to Halt Encampment Sweeps
The coordinated protests on Tuesday in San Francisco, Oakland, Vallejo, Fresno, Los Angeles and Seattle, were hosted by Poor Magazine and Wood Street Commons, calling on cities to halt the sweeps and focus instead on building more housing.
By Post Staff
Houseless rights advocates gathered in Oakland, San Francisco, Los Angeles, and other city halls across California and Washington state this week protesting increased sweeps that followed a U.S. Supreme Court decision over the summer.
The coordinated protests on Tuesday in San Francisco, Oakland, Vallejo, Fresno, Los Angeles and Seattle, were hosted by Poor Magazine and Wood Street Commons, calling on cities to halt the sweeps and focus instead on building more housing.
“What we’re dealing with right now is a way to criminalize people who are dealing with poverty, who are not able to afford rent,” said rights advocate Junebug Kealoh, outside San Francisco City Hall.
“When someone is constantly swept, they are just shuffled and things get taken — it’s hard to stay on top of anything,” said Kealoh.
Local houseless advocates include Victoria King, who is a member of the coordinating committee of the California Poor People’s Campaign. She and Dr. Monica Cross co-chair the Laney Poor People’s Campaign.
The demonstrations came after a June Supreme Court ruling expanded local governments’ authority to fine and jail people for sleeping outside, even if no shelter is available. Gov. Gavin Newsom in California followed up with an order directing state agencies to crack down on encampments and urging local governments to do the same.
Fresno, Berkeley and a host of other cities implemented new rules, making it easier for local governments to clear sidewalk camps. In other cities, such as San Francisco, officials more aggressively enforced anti-camping laws already on the books.
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