EQUITABLE DEVELOPMENT WATCH

December 10, 2002
Volume 1, issue 4

Equitable Development Watch is an effort to provide concise information regarding recent and upcoming events related to economic development in Oakland. Items in this update include:

HOUSING NEWS:
Oakland Community Land Trust Officially Authorized
Leona Quarry Final Approval Set for December 17
Uptown Project Moving Forward
Oak Knoll Development Set Back
Inclusionary Zoning Study May Be Delayed Once More
Snapshot of Housing Development – Year End 2002

REDEVELOPMENT NEWS:
Central City East Discusses Draft Redevelopment Plan
West Oakland PAC To Address Environment and Land Trusts
30 Million Bond for Coliseum Redevelopment Area
Army Base Conveyance May Be Completed Next Year

OTHER NEWS:
Voters Pass Just Cause Ordinance and Other Measures
Economic Difficulties – Rising Unemployment, Budget Shortfall
Zoning Update Available for Public Review in 2003

HOUSING NEWS

OAKLAND COMMUNITY LAND TRUST OFFICIALLY AUTHORIZED

On October 22, the City Council approved the creation of the Oakland Community Land Trust. The newly formed Oakland City-wide Community Land Trust (OCCLT) will have five years in which to expend the program's $5,000,000 initial fund, with maximum allocation of $120,000 per unit. The Community Land Trust (CLT) model is gaining popularity across the country. Designed to increase affordable homeownership, CLTs typically partner with non-profit developers to build affordable housing. When someone buys a CLT home, they purchase the building, but not the land (which remains under CLT ownership). This process helps keep prices low and helps to insure affordability. At the City Council meeting, this maximum per-unit allocation was raised from $100,000 to $120,000 in recognition of the high per-unit development costs now facing Oakland developers. In the last round of housing development proposals considered by the City, average per-unit development costs were over $300,000.

LEONA QUARRY PROJECT FINAL APPROVAL SET FOR DECEMBER 17

On December 3, the City Council moved the Leona Quarry residential project closer to approval, which is set for final passage on December 17, despite opposition from a number of sources. The Council voted for zoning changes, establishment of a special Geological Hazard Abatement District and denied an appeal that questioned the Planning Commission's October approval decision. The project on the former 128-acre Leona Quarry site just east of Edwards Avenue and I-580 calls for 477 units, including a 54-unit affordable senior housing complex.

UPTOWN PROJECT MOVING FORWARD

On December 17, the City Council is expected to discuss initial plans for the Uptown project with developer Forest City Residential West, Inc. The latest proposal for the major downtown project includes approximately 1,000 residential units and parking spaces, 14,500 square feet of retail and a 25,000 square foot public park in the area. Twenty percent of these units (155) would be rental affordable to households earning 50 percent or less of the area median household income (AMI). Another five percent (38) will be affordable to households earning 120 percent or less of AMI. According to current estimates provided by city staff, total project cost would be $201.7 million (not including a high-rise tower to be developed later). Redevelopment Agency projected contribution would be $62.5 million. On December 10, the City Council is expected to approve the purchase of a small property on San Pablo Avenue needed for assembling the Uptown site, which is roughly bounded by 19th Street, 20th Street, Telegraph and San Pablo Avenue.

OAK KNOLL DEVELOPMENT SET BACK

On October 30, the Oakland Tribune reported that development plans for the former Oak Knoll Naval Hospital had faltered when the selected developer, Greater St. Paul Baptist Church, was unable to meet its $22.5 million bid. The church had been planning to build about 500 units, some affordable and some market rate, as well as a church, school, and senior living facilities on the 160+ acre property east of 580, off Mountain Blvd.

INCLUSIONARY ZONING STUDY MAY BE DELAYED ONCE MORE

On December 10, city staff are expected to recommend a delay in beginning a feasibility study of inclusionary zoning in Oakland, arguing that such zoning would be a deterrent to developers under today's poor market conditions. Inclusionary zoning is a tool in which a minimum amount of affordable units are required when new developments are built. Specific details of inclusionary requirements vary, but a typical program may require 10% of units be affordable in any development over 10 total units. The adoption of inclusionary zoning was first proposed by the Affordable Housing Task Force in 2000, with a contract approved for a study in September 2001, but never executed.

SNAPSHOT OF HOUSING DEVELOPMENT – YEAR END 2002

According to the Association of Bay Area Governments often used Regional Housing Needs study, Oakland needs 7,733 new housing units between 1999 and 2006. Of these units, 3207 need to be affordable at the very low or low level, with an additional 1,959 affordable at a moderate level. This suggests that at least half of all new units need to be affordable. A quick look at sources available on the city website, oaklandnet.com, reveal that at year end, 1,241 affordable housing units are underway in Oakland. The Major Projects list, which includes large affordable and market rate developments, suggests that at least 7,300 units are under development. Many of these projects are only in very early design stages, but together they give a snapshot suggesting that just one in six units under development or discussion will be affordable in Oakland .

REDEVELOPMENT NEWS

CENTRAL CITY EAST DISCUSSES DRAFT REDEVELOPMENT PLAN

The Central City East Project Area Committee (PAC) is planning to review a draft redevelopment plan at its January 6, 2003 meeting and begin community outreach regarding projects, programs and implementation. In the last two months, the PAC approved a proposal to limit the use of eminent domain in the Project Area to properties in commercial corridors. They have also decided to keep affordable housing funds within the project area, rather than being placed in a city-wide funding pool. By city mandate, 25% of revenues generated by redevelopment must be set aside for below market rate housing. The PAC meets the first Monday of each month from 6:30-8:30 PM in the Patten College activity room, 2443 Coolidge Ave. Contact Theresa Navarro at the Community and Economic Development Agency, (510) 238-6250, for agenda and other public information.

WEST OAKLAND PAC TO ADDRESS ENVIRONMENT AND LAND TRUSTS

The West Oakland Project Area Committee (WOPAC) is planning to discuss environmental issues and anti-displacement strategies, including land trusts, at its December meeting. The committee will also hear reports from its Eminent Domain, Projects and Programs, and Community Outreach committees. The full WOPAC will meet Wednesday, December 11 from 6:30 to 8:30 PM at the West Oakland Senior center – 1724 Adeline St. The Eminent Domain Committee is planning to host a special work session on Monday, December 16 at 6:30PM at the West Oakland Library – 1801 Adeline St. For further information, please contact David Ralston at the Community and Economic Development Agency, (510) 238-2970.

30 MILLION BOND FOR COLISEUM REDEVELOPMENT AREA

On December 17, the City Council is expected to approve a redevelopment bond not to exceed $30 million for the Coliseum Redevelopment Project Area to help fund a number of transportation and infrastructure projects, including: Fruitvale Village, Coliseum Shoreline, Airport Gateway and Doolittle Drive improvements, replacement parking associated with Transit Village HOPE VI project, and the Amtrak Rail Platform. The Coliseum Redevelopment Plan was adopted in 1995 and for a number of years the Coliseum area, with connection to the airport, has been a major focus of development in Oakland. Redevelopment bonds are expected to be repaid from increased property tax revenues which result from increased property values in Redevelopment Areas, through a mechanism known as Tax Increment Financing.

ARMY BASE CONVEYANCE MAY BE COMPLETED NEXT YEAR

On October 29, the City Council approved a resolution authorizing negotiation that could lead to the final conveyance of the Oakland Army Base. The complicated transfer involving a number of jurisdictions has been years in the making and may have significant impact on the future economic development of the Port, City and region. The Final Reuse Plan, adopted at the end of July, calls for a mix of developments and potential generation of 8,500 new jobs. It is anticipated that final issues around the conveyance could be resolved in early to mid 2003.

OTHER NEWS

VOTERS PASS JUST CAUSE ORDINANCE AND OTHER MEASURES

In the November ballot a number of measures were passed that could impact equitable development. Oakland voters approved Measure EE calling for “Just Cause” procedures stating that landlords may evict tenants only for specified reasons. Voters also passed Measure DD calling for Oakland to issue nearly $200 million in bonds for a variety of projects, including clean up of Lake Merritt, preservation and acquisition of open space and renovation of parks. State Proposition 46 also passed which could lead to housing and emergency shelter funds.

ECONOMIC DIFFICULTIES – RISING UNEMPLOYMENT, BUDGET SHORTFALL

A number of sources indicate that 2003 could be a difficult year for Oakland. A report submitted to the Oakland Workforce Investment Board at the end of October suggests that unemployment could increase in 2003. In September 2002, the Oakland Workforce Investment Area (WIA) had the highest unemployment of all Bay Area WIAs and was the only one with an unemployment rate exceeding 10%. At the same time, city officials are facing a budget shortfall that some sources say could exceed $20 million for 2003-2004. These predictions, if they hold true, could make promoting equitable development more difficult in the upcoming year.

ZONING UPDATE AVAILABLE FOR PUBLIC REVIEW IN 2003

Planning Commission staff and others have been working since 1999 to create a comprehensive revision of the Zoning Code for Oakland. In 2003, public documents and presentations of the proposed code are planned in an effort to solicit greater public input into the process. The resulting code could have an impact on equitable development as zoning regulates the types of buildings and uses for any land parcel. The original Planning Code, adopted in 1965, has been amended piecemeal and at times is inconsistent with elements of Oakland 's General Plan.

Editor: Jeff Abramson
Urban Strategies Council
672 Thirteenth Street
Oakland, CA 94612
(510) 893-2404 * Fax (510) 893-6657

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