Daily Business Report-April 19, 2018
Homeowners and anti-gentrification activists descend on Sacramento to oppose SB 827. (Photo by Matt Levin for CALmatters)
The State’s Most Controversial Housing Bill
in Years Just Died. Here’s What Happened
By Matt Levin |CALmatters
The most controversial state housing bill in recent memory has died with a pretty resounding thud. Senate Bill 827,which would have forced cities to allow taller, denser development around public transit, got only four votes on the 13-member Senate Committee on Transportation and Housing. Both Democrat and Republican lawmakers voted against the bill.
Authored by state Sen. Scott Wiener, Democrat from San Francisco, the bill would have allowed developers to build five-story apartment buildings near major public transit stops, including neighborhoods previously zoned for single family homes. The bill received a ton of media attention, including a fairly flattering write-up on the front page of the New York Times.
Urbanist “Yes In My Backyard” (YIMBY) groups mourned the bill’s death as yet another roadblock to building the new housing the state so desperately needs. Cities and anti-gentrification groups cheered the demise of what they viewed as an unprecedented inroad on local control.
What to make of all the hubub? Some key takeaways:
Enemies, enemies, got a lot of enemies
It’s tough for anyone to take on cities and counties, who wield enormous power in Sacramento and to whom state legislators often give considerable deference. It’s tough for anyone to take on the construction trades’ union, a major source of campaign contributions for Democratic lawmakers. It’s tough for anyone to take on equity and social justice groups, who can bend the ear of progressive legislators.
It’s really tough to take on all three at the same time. That likely wasn’t Sen. Wiener’s strategy when he first introduced SB 827, but that’s ultimately what helped doom the bill. The support of Realtors, developers, YIMBYs and a handful of affordable housing advocates couldn’t muster the votes he needed.
Supporters of the bill arguably made a misstep in not courting social justice groups early enough. A flurry of amendments to protect renters from being displaced and to force developers to include units reserved for lower-income tenants failed to calm their concerns.
Last year, Wiener was able to push through a bill that stripped local control over some housing developments by getting labor and affordability advocates on his side. That bill was also part of a larger package of housing legislation that had something for everyone, including a new revenue source. Gov. Jerry Brown was a driving force behind that package.
None of that that happened this time.
The bill did spark a statewide debate on whether to up density to help remedy our housing crisis
What Wiener was attempting was truly revolutionary. You can debate how dramatically the character of a city would change by building a five-story apartment building next to a single-family home. But taking away the power of local governments to block those types of developments was a pretty radical step — a step that a growing number of Californians think is necessary to prevent cities from obstructing new housing.
The bill received a ton of media attention, both in California and nationally. It garnered support from prominent urban planners, environmentalists and civil rights advocates. It’s both cliche and premature to say it shifted the needle on the housing debate. But it certainly framed the conversation squarely around the state’s role in compelling cities to build.
Expect something like this to come back soon
Nearly every Democratic legislator who voted against SB 827 caveated their opposition by praising the bill’s vision and audacity. Sen. Jim Beall, Democrat from San Jose and chair of the housing committee, said at the hearing that while he couldn’t support the bill in its current form, he was eager to work on something like it in the months ahead.
Could SB 827 ever rise from the dead? Well for his part, Wiener has vowed to re-introduce something like it in the future. Combining his push for density around transit stations with a broader mix of tenant protections and new funding for affordable housing could make it more palatable to the interest groups Wiener needs to succeed.
CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.
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San Diego Tourism Marketing District Awards
Nearly $1.5 Million to 12 City Events in 2019
The San Diego Tourism Marketing District awarded nearly $1.5 million at its March board meeting to 12 city events that it said will help accelerate San Diego’s tourism economy in Fiscal Year 2019. Grants were awarded based on applicants’ ability to generate incremental room night stays, particularly in the off season, at district-assessed hotels in the city of San Diego and provide a measureable return on investment on TMD dollars.
The funding awards were in addition to more than $36 million approved for the San Diego Tourism Authority (SDTA) for its FY 2019 tourism sales and marketing programs. The district board also approved an incremental allocation of $5 million to SDTA from the city’s TMD litigation fund to expand marketing programs that directly support pillars outlined in the Experience San Diego destination master plan.
The FY 2019 SDTMD budget, including the funding awards, are subject to City Council approval, which is expected in May.
New events approved for funding in FY 2019 include the Navy vs. Notre Dame Game, San Diego Gaelic Games, San Diego Winter Crew Classic, Elite Clubs National League Girls Playoffs and San Diego Bay Wine and Food Festival. It will be the first time San Diego hosts the Navy vs. Notre Dame game, a popular football rivalry that expects to draw 10,000 room nights and will be nationally televised on CBS.
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Higgs Partner AnneElise Goetz Selected Fellow
to the American College of Mortgage Attorneys
AnneElise Goetz, a partner at Higgs Fletcher & Mack, has been selected as a new Fellow to the American College of Mortgage Attorneys (ACMA). She is one of 29 attorneys chosen in North America this year.
The ACMA is a national organization that selects real estate finance attorneys based on their exceptional legal skills and qualifications, commitment to giving back to the legal profession and their community, and outstanding reputation for excellence, integrity and collegiality.
The announcement said Goetz was selected for the complex and significant loan transactions she has led, her strong leadership and commitment to her community, as well as her prominent national media presence. In 2017 alone, she was lead Borrower’s counsel on commercial mortgage-backed securities loans totally in excessive of $54.5 million and was lead Borrower’s counsel on a $217 million Credit Facility.
As past chair of the Leadership Development Committee in Lawyers Club, Goetz helped women develop leadership skills and cultivate future civic leaders. She is also a graduate of LEAD San Diego’s IMPACT program, which educates individuals about issues that affect the region and how to be engaged leaders in the community.
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Grand Opening Announced for
Laterra Townhomes in San Diego
KB Home announced the grand opening of its latest San Diego community, Laterra. A collection of townhomes offering access to Interstates 5 and 805 and Highway 56, Laterra is located near several major regional attractions.
The KB homes offered at Laterra are available in four distinct floor plans that range in size from 1,207 to 2,032 square feet, with up to four bedrooms and three-and-a-half baths. Residents can choose from state-of-the-art finishes and amenities that include Whirlpool stainless steel appliances, granite kitchen countertops, tankless water heaters and second and third floor laundry rooms. Pricing ranges from the mid-$750,000s to the mid-$950,000s.
The grand opening for KB Home’s Laterra will take place on Saturday, April 21 from 10 a.m. to 6 p.m. at 5992 Village Center Loop Road, Unit 1, in San Diego. The Sales Office is open Monday 1 to 6 p.m. and Tuesday through Sunday 10 a.m. to 6 p.m.
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Chula Vista and SDG&E Unveil New Fleet
of Electric Vehicles and Charging Stations
The city of Chula Vista and San Diego Gas & Electric unveiled the city’s fleet of new electric vehicles and an array of EV charging stations at City Hall. SDG&E provided the charging stations, marking a major milestone in the two organizations’ partnership to accelerate clean transportation and reduce air pollution and greenhouse gas emissions.
Powered by Measure P, the half-cent sales tax approved by Chula Vista voters in 2016, the city purchased a fleet of 15 new long-range electric vehicles: 12 Hyundai Ioniqs and three Chevy Bolts. The vehicles are being deployed as part of the city’s senior volunteer patrol and code enforcement programs. Later this year, the city intends to double its fleet of low and zero-emission vehicles. The city also received $150,000 in state rebate incentives for purchasing EVs.
“Chula Vista has long been an environmental champion and our new electric fleet continues that leadership,” said Chula Vista Mayor Mary Casillas Salas. “Chula Vista was an early adopter of Power Your Drive and the first city to sign on to the program.”
As part of its Power Your Drive program, SDG&E has been working with the city to install charging stations at its City Hall, Public Works Department and Police Department. A total of 123 chargers will be installed with 71 installed and energized to date.
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Mediator Receives American Bar Association
Award for Contributions to Dispute Resolution
The Greater San Diego Association of Realtors and the Real Estate Mediation Center (REMC) are congratulating mediator Harold Coleman Jr. on receiving the Chair’s Award for the American Bar Association (ABA) Section of Dispute Resolution. The award represents Coleman’s lifelong dedication to his craft and unending contributions to the Alternative Dispute Resolution (ADR) community nationwide.
Coleman received the award on April 5 during the ABA 20th annual Section of Dispute Resolution Spring Conference in Washington, D.C.
Coleman serves as vice president for mediation at the American Arbitration Association (AAA), and is a mediator at the REMC and vice-chair for SDAR’s Mediation Committee.
Prior to joining AAA and the REMC, Coleman was a civil litigation attorney and project design engineer. He has served the international business and legal communities in resolving complex litigated and non-litigated disputes since 1987, with an expertise in complex technical litigation.
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Hundreds More Low-Income
Students Targeted for College Success
The San Diego Foundation (TSDF) announced the Community Scholars Initiative, a pilot project that will help as many as 300 more low-income and first-generation students prepare for, pay for and persist through college over the next two years. The effort was launched with a $500,000 grant the foundation received from College Futures Foundation to improve the economic future of San Diego by increasing educational opportunity and attainment.
In its first year, TSDF partnered with the nonprofit Reality Changers and Mar Vista High School, Chula Vista High School and Southwest High School in the Sweetwater Unified High School District. Reality Changers trains high school instructors to deliver its successful College Apps Academy program to support students and families with the college application process.
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Destroyer USS Milius Scheduled
to Deploy to Japan on April 20
The USS Milius, a ballistic missile defense-capable guided missile destroyer, will leave her homeport of San Diego on April 20 to join the Forward Deployed Naval Forces-Japan. Milius will be forward deployed to Commander Fleet Activities Yokosuka, Japan and is scheduled to arrive at the end of May.
Arleigh Burke-class guided-missile destroyers perform key roles in support of carrier strike groups, expeditionary strike groups or surface action groups. Destroyers are capable of sustained combat operations supporting forward presence, maritime security, sea control and deterrence.
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Accreditation Awarded to
Human Longevity Clinical Labs
The Accreditation Committee of the College of American Pathologists (CAP) has awarded accreditation to Human Longevity Clinical Labs LLC, San Diego, based on results of a recent on-site inspection as part of the CAP’s Accreditation Programs.
The facility’s director, Kenneth J. Bloom, was advised of this national recognition and congratulated for the excellence of the services being provided. Human Longevity Clinical Labs LLC is one of more than 8,000 CAP-accredited facilities worldwide.
The federal government recognized CAP Laboratory Accreditation Program, begun in the early 1960s, as being equal-to or more-stringent-than the government’s own inspection program.
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Port of San Diego Honored
for Excellence in Communications
The Port of San Diego has been honored with first place in Community Relations/Participation in the California Association of Public Information Officials Excellence in Public Information and Communications Awards. The award was presented to the Port for its public outreach efforts on the Port Master Plan Update, at CAPIO’s annual awards dinner April 11 in Santa Rosa.
The EPIC Award for Community Relations/Participation recognizes programs that promote deliberations among diverse community interests in order to guide a community decision on future direction. These efforts can also include comprehensive programs such as community visioning and public relations programs involving residents in community decision making on specific issues and projects.
CAPIO also honored the Port’s Public Information Officer, Tanya Castaneda, at the event. Castaneda is an accredited public relations professional with more than 20 years in the media and communications industry. CAPIO named her the state’s Communicator of the Year for 2018. This career award recognized Castaneda’s abilities, skills and talents in managing the Port’s communications and outreach programs.
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Personnel Announcements
Charity Babington Falls Joins The Private Bank
Union Bank announced that Charity Babington Falls has joined the company as a director and senior wealth strategist with The Private Bank. Based in San Diego, she reports to Jason P. Liu, head of wealth planning.
In her role, Falls will focus on the design and implementation of intricate wealth planning strategies, including estate planning, income tax, business succession, and legacy and philanthropic planning.
Most recently, Falls served as a vice president and senior wealth planning strategist at Wells Fargo Private Bank. Prior to that, she was an attorney at various law firms, advising and counseling high and ultra-high net worth clients on tax, business and estate planning. She has also provided domestic and international tax planning and compliance counsel to corporations, including Time Warner Cable and The Hearst Corporation.
Babington Falls began her career as a law clerk to a Chief United States District Court Judge. She graduated magna cum laude from the University of North Carolina at Charlotte and earned a law degree and a Master of Laws from the University of San Diego School of Law.
