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Explosive Growth Coming to Oakland, Say Developers

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Local business people packed into the grand ballroom in Oakland Marriott City Center last Friday to hear Mayor Jean Quan, Mayor-elect Libby Schaaf and a panel of five major Bay Area developers talk about the development free-for-all that is beginning to unfold in Oakland.

 

The event, called “Oakland Structures,” was sponsored by the San Francisco Business Times at a cost of $70 a head and was billed as offering insight on the big changes that are coming to the city.

 

“Investors are converging on Oakland in unprecedented numbers, and it’s a pivotal time for the city. Oakland can no longer be considered to be on the ‘verge,’” according to the announcement for the event.

 

Remarkably for Oakland, African Americans and Latinos were absent from the speakers’ platform and few in number in the ballroom.

 

Beside the present and future mayors, speakers included Michael Ghielmetti, president of Signature Development Group, which along with a major Beijing investor, is building 3,100 units of market-rate housing on the Embarcadero in Oakland; and Floyd Kephart, chairman of the Renaissance Companies, Inc., who hopes to build the massive Coliseum City project near the Oakland Airport.

 

Other Bay Area developers who shared their views on Oakland’s future and their projects were Michael Cohen, co-founder and principal of the Strada Investment Group; Phil Kerr, president of the Northern California City Ventures; and Scott Smithers, managing principal of Lane Partners LLC.

 

“We are hungry for development after winning the Nov. 4 election,” said Mayor-elect Schaaf, in an interview with the SF Business Times a few days after the election.

 

“However, we also have tremendous needs. We are an old city, and we have incredible deferred maintenance,” she said, emphasizing developers have to expect to pay city fees.

 

She told the developers at the Business Times event that her goal is to create “predictability and clarity” for development projects in the city, hire “kick-ass (staff) who get things done” and make the City of Oakland “the least irritating government possible.”

 

Floyd Kephart said that he represented a number of investors who want to build the Coliseum City project, which has been proposed but not yet approved by the city.

 

The project has already stirred concerns among city residents – some who want to assure that jobs and housing go to local people and others who say that the project as proposed would create a destructive, not constructive, presence in the city.

 

“I don’t know what the future will bring, but I know it’s coming,” said Kephart, who said that he and the financiers he represents would like to go ahead with the full project that has been proposed by city staff and consultants.

 

“We don’t know exactly what form it will take,” he said, but the city has created a great proposal. “We’re not trying to change that. We’re trying to implement that.”

 

As proposed, the huge complex would contain new stadiums for up to three teams, 1.9 million-square-feet of retail and office space, several hotels and restaurants and entertainment.

 

“All of us (financiers) live on demographics” who base their decisions looking at the trends, Kephart said. “I represent 40 private equity hedge funds. Private capital goes where the opportunities are.”

 

“There is no doubt that capital is coming here,” he said. ”The question is whether it will build the future “ that Oaklanders want.

 

This development is going to take time, Kephart said. “It’s a process, and it never comes out the way” people expected it would be at the beginning of the process.

 

Bay Area

Advocates Hold Rally to “Issue a Citation” to City to Stop Homeless Encampment Sweeps

Advocates in San Francisco held a rally Thursday afternoon in front of City Hall to issue a symbolic citation to Mayor London Breed, urging an immediate end to the sweeps of homeless encampments in the city. “What do we want? Housing! When do we want it? Now!,” the group chanted. The group of allies and advocates originally intended to start their rally off on Jessie Street, where a sweep of an encampment was going to take place around noon. But, the group had to change their plans because the city allegedly heard about the rally and chose to sweep the area earlier in the day.

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San Francisco homelessness advocates held a rally in front of City Hall to issue a symbolic citation to Mayor London Breed to stop sweeping encampments. Photo by Magaly Muñoz.
San Francisco homelessness advocates held a rally in front of City Hall to issue a symbolic citation to Mayor London Breed to stop sweeping encampments. Photo by Magaly Muñoz.

By Magaly Muñoz

Advocates in San Francisco held a rally Thursday afternoon in front of City Hall to issue a symbolic citation to Mayor London Breed, urging an immediate end to the sweeps of homeless encampments in the city.

“What do we want? Housing! When do we want it? Now!,” the group chanted.

The group of allies and advocates originally intended to start their rally off on Jessie Street, where a sweep of an encampment was going to take place around noon. But, the group had to change their plans because the city allegedly heard about the rally and chose to sweep the area earlier in the day.

The streets adjacent to Jessie St., such as Mission and Market St, are lined with multiple encampments and unhoused individuals. Many stand in groups or walk along the streets by themselves.

One member of the group, Leah, said she lived in District 6 and what politicians claim is an “open drug market” area. She criticized the extra funding that has gone to the San Francisco Police Department to “solve homelessness” but no positive results have been shown.

“If giving the police more money actually solved the housing crisis, the homelessness crisis…then it would’ve gotten better, but it has actually just been getting worse and worse as more services for poor people have been cut,” Leah said.

Other speakers said the problem with sweeping and citing people for living on the streets is that the homeless problem is being exacerbated, and it’s ultimately not helping those who are struggling.

In order to help alleviate the problem, advocates have called for expansions to permanent supportive housing, resources and services, housing vouchers, and rent relief for struggling residents.

According to the 2024 Point in Time Count, 8,323 people were experiencing homelessness in San Francisco. A seven percent increase since 2022 where there were 7,754 sheltered and unsheltered homeless individuals.

In her mission to get people off the streets, Mayor Breed has directed city crews to clear encampments more frequently than before. This decision comes after the landmark case, Grants Pass v. Johnson, was overturned by the U.S Supreme Court and cities were given the authority to ban people from camping or sleeping on the streets.

The mayor also instructed city workers to offer transportation tickets to people before offering shelter with the intent that those who are not originally from San Francisco can return to family or friends elsewhere and services can then be used for long-time residents.

A former homeless resident, Yolanda, in attendance at the rally said it was difficult to get off of living on the streets because of the barriers to housing and services.

Yolanda told the Post that she had grown up in the city with her family, but once her father passed away, there was no one to maintain the bills so they had to relocate to Oakland for a few years. She said her family stayed there for a few years before returning to San Francisco.

As she got older, she found herself living on the streets or in temporary shelter. But these shelters would only allow people to stay for a few months at a time and were very restrictive in what people could do, such as leave when they wanted or have guests with them.

After some time, Yolanda and her boyfriend were selected for housing through a housing allocation program, where she still currently lives now. She said they were one of the lucky ones, but others do not get to experience this same fortune.

She shared that at one point in her journey to find a housing placement, there was a 2,000 person waitlist, making it nearly impossible and disheartening for those looking for a roof to put over their heads.

Yolanda said it was unfair to criminalize people for not being able to afford housing, considering the extremely high costs of living in the area.

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Bay Area

Libby Schaaf, Associates Stiff Penalties for ‘Serious’ Campaign Violations in 2018, 2020 City Elections

According to the proposed settlement agreements, which are on the agenda for the Monday, Sept. 16 Public Ethics Commission (PEC), Schaaf and many of those with whom she was working, have cooperated with the investigation and have accepted the commission’s findings and penalties. “Respondents knowingly and voluntarily waive all procedural rights under the Oakland City Charter, Oakland Municipal Code, the Public Ethics Commission Complaint Procedures, and all other sources of (applicable) procedural rights,” the settlement agreement said. 

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Libby Schaaf served as Oakland’s mayor from 2012 to 2020. Courtesy Photo.
Libby Schaaf served as Oakland’s mayor from 2012 to 2020. Courtesy Photo.

Ex-Mayor, Metropolitan Chamber of Commerce Are Not Disputing Findings of Violations

By Ken Epstein

Former Oakland Mayor Libby Schaaf, currently a candidate for state treasurer, faces thousands of dollars in penalties from the City of Oakland Public Ethics Commission for a “pattern” of   serious campaign violations in 2018 and 2020 city elections

According to the proposed settlement agreements, which are on the agenda for the Monday, Sept. 16 Public Ethics Commission (PEC), Schaaf and many of those with whom she was working, have cooperated with the investigation and have accepted the commission’s findings and penalties.

“Respondents knowingly and voluntarily waive all procedural rights under the Oakland City Charter, Oakland Municipal Code, the Public Ethics Commission Complaint Procedures, and all other sources of (applicable) procedural rights,” the settlement agreement said.

“If respondents fail to comply with the terms of this stipulation, then the commission may reopen this matter and prosecute respondents to the full extent permitted by law,” according to the agreement.

Schaff and co-respondents were involved in three related cases investigated by the PEC:

In the first case, Schaaf in 2018, without publicly revealing her involvement as required by law, working with the Oakland Metropolitan Chamber of Commerce and others, created, lead, and raised funds for a campaign committee called “Oaklanders for Responsible Leadership, Opposing Desley Brooks for Oakland City Council.”

The “respondents,” who were responsible for the violations in this case were: the campaign committee called Oaklanders for Responsible Leadership; Mayor Schaaf; the Oakland Metropolitan Chamber of Commerce;  OAKPAC;  which is the chamber’s political action committee; Barbara Leslie and Robert Zachary Wasserman, both leaders of the Oakland chamber; and Doug Linney,  a campaign consultant who was brought on by Schaaf to organize and lead the campaign to defeat Desley Brooks in her 2018 campaign for reelection.

Linney reported in his interview with the PEC that Schaaf had approached him and said, “Let’s do an Independent Expenditure (IE) campaign against Desley and let me see if I can get some other folks involved to make it happen.”

Linney developed a plan, which hired staff to organize field canvassing and phone banking. He said Schaaf told him the budget should be more than $200,000 because “I think raising $200K shouldn’t be hard and could shoot for more.”

None of the original group, which met weekly, included anyone who lived in District 6, the section of the city that Brooks represented. They waited to start the committee until they could find a District 6 resident willing to be the face of their campaign.

During her tenure, Brooks was instrumental in establishing the city’s Department of Race and Equity.

Among the violations reported by the PEC:

  • Respondents reported contributions as being received from the chamber’s political action committee, OAKPAC, “rather than the true source of the contributions,” in order to hide the identities of contributors.
  • Failure to disclose “controlling candidate,” Libby Schaaf, on a mass mailer.
  • Failing to disclose the controlling candidate, Libby Schaaf, on official campaign filings.
  • Receiving contributions in amounts over the legal limit. For example, the State Building and Construction Trade Council of California PAC donated $10,000, which is $8,400 over the limit; and Libby Schaaf donated $999, which is $199 over the limit.

Total contributions were $108,435, of which $82,035 was over the limit.

“In this case, Mayor Schaaf and her associates’ action were negligent. All of them were fully aware that Mayor Schaaf and significant participation in the IE campaign against Brooks, including its creation, strategy, and budgeting decisions, and selection of personnel.”

Further, the PEC said, “The respondents’ violations in this case are serious. The strict rules applying to candidate-controlled committees go directly to the very purpose of campaign finance law.”

In her interview with the PEC, Schaaf, who is an attorney, had received incorrect legal advice from Linney, her campaign consultant, that her activities were legally permissible, because she was not the “final decision-maker.”

Total recommended penalties for all those involved in this case were $148,523.

The PEC also found violations and is recommending penalties in two other cases.

The second case involves the Oakland Fund for Measure AA in 2018, which established a parcel tax to fund early childhood initiatives in Oakland.  Looking into this case, PEC investigators found that Schaaf used her position as mayor to benefit the campaign, though without revealing her involvement.

A contractor who made a large contribution was Julian Orton of Orton Development, which was in negotiations with the city to redevelop the Henry J. Kaiser Convention Center.  Orton donated $100,000

Schaaf, for failing to disclose that the campaign committee was “candidate controlled,” may face a $4,500 penalty.  For violating the rule against contractor contributions, the campaign committee and Schaaf face a possible $5,000 penalty.

Orton has agreed to pay a $5,000 penalty.

The third case involved a campaign in 2020, the Committee for an Affordable East Bay, which raised thousands of dollars to support Derrick Johnson’s campaign for Councilmember-at-Large position and to attack the incumbent, Councilmember-at-Large Rebecca Kaplan.

Investigators found that Schaaf was extensively and secretly involved in the work of this committee.

She received a $100,000 donation from Lyft, which had a contract with the city at the time and was therefore legally prohibited.  Lyft recently agreed to pay a $50,000 fine.

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Activism

Oakland Post: Week of September 11 -17, 2024

The printed Weekly Edition of the Oakland Post: Week of September 11 – 17, 2024

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