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Op-Ed: Developer Tagami’s Threats Are Coal Smoke and Hot Air

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By Brian Beveridge

 

The Oakland City Council is concerned about banning coal operations at their new Oakland Global Logistics center – because their master developer Phil Tagami is threatening to sue the city or quit the project if the council uses its legal authority to ban coal under health and safety codes.

 

Of course, Tagami can sue the city for interfering with his business dealings, but courts generally favor cities where health and safety of their citizens is concerned. The burden would be on Tagami to show that his coal venture would not create additional health impacts on the already overburdened West Oakland neighborhoods downwind of the Oakland Global Logistics center.

 

In his threats, Tagami has little to gain and everything to lose. The threat is classic political theater and pure smoke.

 

In the deal he signed with the city, he plays two roles. First, he is a fee-for-service construction manager for the site preparation phase, called horizontal development. Once the utilities and roads are rebuilt, Tagami becomes the master tenant and property manager for the next 66 years.

 

In his fee-for-service role as construction manager, Tagami’s company, CCIG, gets 4 percent of the horizontal development budget, plus other reimbursable costs.

 

According to the Oakland Office of Contract Compliance, phase one is about 60 percent complete, and the city’s published budgets estimate the total cost at around $450 million.

 

Tagami’s fee, then, is in the neighborhood of $22.5 million for just phase one. No business man walks away from that kind of money. Tagami’s threat to quit, with millions of dollars left on his contract, is just empty words.

 

So what if Tagami finishes phase one, gets his $22.5 million, and then quits?

 

The city would be without a master developer. The truth is, once the old army base is cleaned up and the roads and utilities are upgraded, the city doesn’t need a master developer, a master tenant, or a master anything.

 

In phase two, Tagami becomes a glorified property manager taking profits the city could retain by managing its own property. The Port of Oakland abandoned the master developer idea years ago and now leases construction-ready property to private development project that suit the Port’s strategic goals.

 

Oakland is positioned to do the same thing, without Phil Tagami or CCIG. Once the old army base is up to code, there will be no shortage of logistics companies lined up and eager to build facilities at one of the only deep-water ports on the West Coast.

 

His lease deal notwithstanding, Tagami is hardly the only game in town. The Oakland Global project includes seven separate development areas, four of which already have independent development projects in the works. CASS Metals and California Waste Solutions, two large recycling companies eager to vacate the West Oakland community, intend to build modern facilities in the North Gateway area adjacent to EBMUD.

 

Oakland Maritime Support Services (OMSS) will break ground this year on a privately funded trucking center and office building at the corner of West Grand Ave and Maritime Street. ProLogis, a global logistics developer is eager to begin construction on its modern distribution center in the Central Gateway, and Viridis Fuels has a lease to build a biofuels plant on another parcel near EBMUD.

 

In all, more than 95 acres of the project are already committed to private investment unrelated to Tagami or CCIG.

 

Tagami has his own interests in development of a warehouse district in the East Gateway and a short-line rail operation. These interests and his property management fees will bring him millions of dollars in profits over the next 66 years.

 

He would be a fool to quit now, but the city might be foolish to try to stop him.

 

As Mayor Schaaf has said, Tagami has been handed the opportunity of a lifetime. Several years ago Tagami told me personally that the army base project would be worth more than a billion dollars and would be both his retirement and his legacy.

 

It is unlikely he would walk away from all that. He should set hubris aside, find some gratitude for this opportunity, and create a graceful exit from his ill-conceived coal export venture.

 

Otherwise, our mayor and council should call his bluff, ban coal, and get back to the real work of growing a green, equitable Oakland.

 

Brian Beveridge is co-director of the West Oakland Environmental Indicators Project (WOEIP).

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Rest in Peace: A.M.E. Pastor and L.A Civil Rights Icon Cecil “Chip” Murray Passes

The Rev. Dr. Cecil L. “Chip” Murray, former pastor of First African Methodist Episcopal Church (FAME) in Los Angeles, died of natural causes April 6 at his Windsor Hills Home. He was 94. “Today, we lost a giant. Reverend Dr. Cecil Murray dedicated his life to service, community, and putting God first in all things. I had the absolute honor of working with him, worshiping with him, and seeking his counsel,” said Los Angeles Mayor Karen Bass of the dynamic religious leader whose ministry inspired and attracted millionaires as well as former gang bangers and people dealing with substance use disorder (SUD).

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The Rev. Dr. Cecil L. “Chip” Murray, former pastor of First African Methodist Episcopal Church (FAME) in Los Angeles, died of natural causes April 6 at his Windsor Hills Home. He was 94.

“Today, we lost a giant. Reverend Dr. Cecil Murray dedicated his life to service, community, and putting God first in all things. I had the absolute honor of working with him, worshiping with him, and seeking his counsel,” said Los Angeles Mayor Karen Bass of the dynamic religious leader whose ministry inspired and attracted millionaires as well as former gang bangers and people dealing with substance use disorder (SUD).

Murray oversaw the growth of FAME’s congregation from 250 members to 18,000.

“My heart is with the First AME congregation and community today as we reflect on a legacy that changed this city forever,” Bass continued.

Murray served as Senior Minister at FAME, the oldest Black congregation in the city, for 27 years. During that time, various dignitaries visited and he built strong relationships with political and civic leaders in the city and across the state, as well as a number of Hollywood figures. Several national political leaders also visited with Murray and his congregation at FAME, including Presidents George W. Bush and Bill Clinton.

Murray, a Florida native and U.S. Air Force vet, attended Florida A&M University, where he majored in history, worked on the school newspaper and pledged Alpha Phi Alpha Fraternity.  He later attended Claremont School of Theology in Los Angeles County, where he earned his doctorate in Divinity.

Murray is survived by his son Drew. His wife Bernadine, who was a committed member of the A.M.E. church and the daughter of his childhood pastor, died in 2013.

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Court Throws Out Law That Allowed Californians to Build Duplexes, Triplexes and RDUs on Their Properties

Charter cities in California won a lawsuit last week against the state that declared Senate Bill (SB) 9, a pro-housing bill, unconstitutional. Passed in 2021, SB 9 is also known as the California Housing Opportunity and More Efficiency Act (HOME). That law permits up to four residential units — counting individual units of duplexes, triplexes and residential dwelling units (RDUs) – to be built on properties in neighborhoods that were previously zoned for only single-family homes.

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Charter cities in California won a lawsuit last week against the state that declared Senate Bill (SB) 9, a pro-housing bill, unconstitutional.

Passed in 2021, SB 9 is also known as the California Housing Opportunity and More Efficiency Act (HOME). That law permits up to four residential units — counting individual units of duplexes, triplexes and residential dwelling units (RDUs) – to be built on properties in neighborhoods that were previously zoned for only single-family homes.

A Los Angeles Superior Court Judge ruled in favor of the cities, pointing out that SB 9 discredited charter cities that were granted jurisdiction to create new governance systems and enact policy reforms. The court ruling affects 121 charter cities that have local constitutions.

Attorney Pam Lee represented five Southern California cities in the lawsuit against the state and Attorney General Rob Bonta.

“This is a monumental victory for all charter cities in California,” Lee said.

However, general law cities are excluded from the court ruling as state housing laws still apply in residential areas.

Attorney General Bonta and his team are working to review the decision and consider all options that will protect SB 9 as a state law. Bonta said the law has helped provide affordable housing for residents in California.

“Our statewide housing shortage and affordability crisis requires collaboration, innovation, and a good faith effort by local governments to increase the housing supply,” Bonta said.

“SB9 is an important tool in this effort, and we’re going to make sure homeowners have the opportunity to utilize it,” he said.

Charter cities remain adamant that the state should refrain from making land-use decisions on their behalf. In the lawsuit, city representatives argued that SB 9 eliminates local authority to create single-family zoning districts and approve housing developments.

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Funds for Down Payments and Credit Repair Given to Black First Time Homebuyers

The California Civil Rights Department (CRD) won a $10,000 fair housing settlement last November against a property management company, CIM Group LP, a global real estate company headquartered in Los Angeles, and property owner, RACR Sora, LLC, for implementing a blanket ban on renting to tenants with criminal histories at Sora Apartments in Inglewood. Three months earlier, the department, which enforces California’s civil rights laws, won another $20,000 civil rights settlement against a Lemon Grove property manager, who had targeted a Black tenant with a series of racist actions and threats of violence.

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By McKenzie Jackson, California Black Media

The California Civil Rights Department (CRD) won a $10,000 fair housing settlement last November against a property management company, CIM Group LP, a global real estate company headquartered in Los Angeles, and property owner, RACR Sora, LLC, for implementing a blanket ban on renting to tenants with criminal histories at Sora Apartments in Inglewood.

Three months earlier, the department, which enforces California’s civil rights laws, won another $20,000 civil rights settlement against a Lemon Grove property manager, who had targeted a Black tenant with a series of racist actions and threats of violence.

CRD Director Kevin Kish said the department investigates cases of apparent racial bias in housing and sometimes more subtle acts of prejudice like nuisance-free or crime-free housing policies or holding tenants to different standards based on their race.

Kish said, “People will get evicted if they call the police. This can negatively impact victims of domestic violence. We also see these no-crime ordinances, or no-crime policies, used in racially discriminatory ways. If there is some kind of incident, and the police are called and it involves a Black family, then they get evicted, but other folks aren’t necessarily evicted.”

On April 11,1968, a week after Rev. Dr. Martin Luther King, Jr. was assassinated, President Lydon B. Johnson signed the Fair Housing Act, which prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, and nationality.

Kish noted that William Byron Rumford, the first Black California State Assemblymember, who represented Berkley and Oakland, spearheaded the passing of the Rumford Act in 1963. That law sought to end discriminatory housing practices in the Golden State, five years before the Fair Housing Act became law.
Real estate agent and housing advocate Ashley Garner is the director of the CLTRE Keeper Home Ownership program. That organization gave 25 Black, indigenous, and people of color $17,500 each in down payment and credit repair support to purchase a home in Oak Park, a traditionally Black neighborhood in Sacramento, last fall. CLTRE obtained a $500,000 grant from the city of Sacramento to award the funds to the residents after they completed an eight-week homeownership program.

In 2021, the California Housing Finance Agency (CalHFA) noted that around four in 10 Black California families owned homes, which trails that of White, Asian-American and Latinos.
According to Forbes, the median price for a home in California is over $500,000, which is double the cost of a home in the rest of the country.

Black lawmakers recently introduced their Reparations Priority Bill Package that includes support for Black first-time homebuyers, homeowners’ mortgage assistance and property tax relief for neighborhoods restricted by historic redlining.

California Housing Finance Agency (CalHFA) spokesperson Eric Johnson said CalHFA helps prospective low-income and moderate-income Californians purchase homes by offering down payment and closing cost aid. “There are lots of people who have steady jobs, good credit scores, constant income, but they haven’t been able to save up the money that traditional banks need or want to see for a down payment,” Johnson stated. “We help those folks out. We give a loan for the down payment to get them over that hurdle.”
CRD and the Department of Real Estate hosted “Fair Housing Protections for People with Criminal Histories” Zoom call on April 10.

On April 25, CRD will also hold Zoom seminars focused on advocating for fair housing for people with disabilities.

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