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OP-ED: New Oakland Business Ventures Mean New Opportunities

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Some new and diverse businesses are coming to Oakland to create jobs and strengthen our economy. First up Sears sold the former Capwell building at 20th & Broadway to Lane partners, a Menlo Park real estate development company for $25 million.

The 85-year-old building will close by the end of the summer and will reopen with offices and retail to attract high-tech tenants.

This is a great transformation for a department store that has struggled since the 1989 earthquake. Even though it means losing the last major retail in downtown, a higher and better use of the building is for office, retail and to attract new businesses.

Historic Sears Building in Downtown Oakland

Historic Sears Building in Downtown Oakland

Gov. Jerry Brown abolished redevelopment agencies in California. The state law required all cities to liquidate their real estate holdings as they close their agencies.

The state gave the city permission to sell many real estate holdings. Some of the first will be right in the downtown area with the parking garage at 21st and Telegraph, the undeveloped park across from the Fox in the uptown apartments, and the parking lot at 20th and Telegraph.

Look for spirited bidding for these prime properties, transforming from underused city properties to businesses and jobs in the uptown area.

The world-famous San Francisco Fairmont hotel chain purchased the Claremont Hotel. The Fairmont parent, FRHI Hotels, based in Toronto, specializes in worldwide hotels. The primary investor is a Saudi Arabian prince and the country of QATAR. The other 50 percent owner is SF mega-investor and husband of Sen. Feinstein Richard Blum.

The Claremont sold for $155 million and includes the 279-room hotel, 22 acres of Oakland/Berkeley hills, a 1,500-member tennis club, along with a spa. The price of $550,000 per room is a premium sale for hotels in this area.

Many speculate the owners will develop some of the 22 acres on the property for housing/resort uses. This will mean more jobs, increase property taxes, property and sales taxes more visitors through the Oakland airport and literally the revitalization of an economic engine for Oakland.

Councilwoman Lynette McElhaney is on a mission to recruit more tech companies to Oakland. She is attempting to lure startups from the Silicon Valley and San Francisco to relocate and prosper in Oakland.

She points out Oakland can offer lower commercial rents, more available housing, more open spaces, public transportation, and a ready, willing and able workforce with and great diversity and neighborhoods.

With the councilwoman pushing the city to become more aggressive in recruiting new businesses, the benefits become quickly apparent with new jobs, residents, higher property values, taxes, all for better service.

Meanwhile, in Jack London Square, Ellis Partners proposed to build two new residential buildings, consisting of 17 stories at the base of Broadway and Embarcadero on the surface parking lot across from the old Barnes & Noble building and 26 stories at the corner of Harrison and Alice, for a combined total of 665 units.

Each building will also have ground-floor retail to add to the neighborhood amenities in Jack London Square.

Ellis partners have been entitled to develop Jack London Square since 2008. Their initial ideas of creating a retail farmers produce market and other ideas have fallen by the wayside.

They have now want to build housing and increase the density in Jack London Square.

Finally, the owners of Bocanova, the wildly successful South American Jack London Square hotspot, is opening a new venture called Jack’s Oyster Bar and Fish House located at 336 Water St.,

Team Bocanova bought to life the southern end of Jack London Square, they will do the same at the northern end.

More jobs, economic activity, and resident vibrancy will bring JL Square alive, create more revenues and make it a destination area that all Oakland citizens can enjoy.

Clinton Killian

Clinton Killian

Clinton Killian is an attorney at downtown Oakland law firm Fried & Williams LLP and is former public official. He can be reached at ckillian@postnewsgroup.com.

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Bay Area

Oakland Finishes Final Draft of Downtown Specific Plan for Potential City Improvements

In late March, Oakland’s city administration announced the final draft of their Downtown Specific Plan, a blueprint for city improvements and developments over the next 20 years. The comprehensive 474-page plan lays out policies for downtown developments that will increase economic, social and cultural, and communal opportunities for residents and workers who frequent this essential hub in Oakland.

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Skyline aerial view of the urban core of downtown Oakland, California. Credit to MattGush, iStock
Skyline aerial view of the urban core of downtown Oakland, California. Credit to MattGush, iStock

By Magaly Muñoz

In late March, Oakland’s city administration announced the final draft of their Downtown Specific Plan, a blueprint for city improvements and developments over the next 20 years.

The comprehensive 474-page plan lays out policies for downtown developments that will increase economic, social and cultural, and communal opportunities for residents and workers who frequent this essential hub in Oakland.

Several departments over the course of eight years developed the plan, with two phases that emphasized a need for community input from local stakeholders, such as leaders and residents, and a focus on the role of social and racial equity in past and future developments.

Throughout the extensive plan, the concept of equity for marginalized communities is embedded with each goal and priority for the improvements to downtown. It acknowledges that social and racial barriers are preventing these communities from thriving on an equal playing field.

The authors identified six key disparities, or ‘equity indicators’, that set the baseline for how success will be measured for the improvements. These indicators include the burden of housing costs, homelessness, displacement, disconnected youth, unemployment rate and median income.

The plan is also broken up into chapters, each describing a major issue or topic that is plaguing downtown residents and workers, such as mobility, culture preservation, community health and sustainability, and land use and urban design.

Within each chapter, the authors dedicate a section to the impacts of the COVID-19 pandemic for the various areas of interest, illustrating how disparities and inequities increased before and after the disease’s peak.

Two major issues highlighted in the plan are economic opportunity and housing and homelessness. Both of these issues have been aggravated by the pandemic and require substantial support and resources to move forward.

Many reports coming out of the commercial and residential districts downtown have blamed the rise in crime and cost of living as reasons for leaving Oakland for other cities or closing down indefinitely.

The plan attributes rising rents of both residential and commercial properties to the displacement of local businesses and entrepreneurs. Downtown also has an imbalance in the jobs to housing ratio, which limits access to jobs as commuting distances increase.

Other concerns for the local economy are barriers to employment opportunities for workers of color, non-English speakers, and those with limited access to transportation. As stated in the plan, downtown also has a lack of vacancies near public transit hubs, such as BART, bus stops or ferry terminals, which could save workers money and time for their commutes into the city.

According to the downtown plan, the average unemployment rate for the white population was 5.9%, but the Asian population was at 6.7%, and for the Black population it was even higher at 10.4%.

The proposed solutions for the lack of economic prosperity include providing assistance to local businesses owned by people of color, reinforcing downtown as the ‘place to be’ for nightlife entertainment, and building businesses closer to public transit.

The addition of over 18.3 million (m) sq. ft. of new commercial space, 1.3m sq. ft. of new institutional space, and 500,000 sq. ft. of new industrial space, could potentially create almost 57,000 jobs downtown.

Housing and homelessness, issues closely tied to economic prosperity, are top concerns for Oakland residents. High rents have led to displacement and homelessness for those unable to keep up with the rising costs of the Bay Area.

Over 5,000 people are currently experiencing homelessness in Oakland, according to 2022 Point In Time data. 60% of this population is Black despite only making up nearly 20% of the total city population.

The plan explains that by adding nearly 29,000 new homes and expanding affordable housing units across the city by 2040, this would help alleviate the stress of obtaining and affording a home.

Strategies proposed to tackle the housing and homelessness crisis include increasing renter protections, providing additional shelters and services for homeless residents, and promoting homeownership in downtown with first-time buyer assistance and proactive assistance to vulnerable homeowners.

The plan acknowledges that the implementation of changes and developments amongst the several concerns outlined in the document will take time, both in short and long term periods.

To better explain how and when each project will be addressed over the course of the next two decades, a detailed 123-page graph shows which agencies, potential funding sources, and costs come with the goals.

The Oakland Planning Commission and Landmarks Preservation Advisory Board will each hold public hearings regarding the final draft of the Downtown Plan in May and June.

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City Government

LAO Releases Report on Racial and Ethnic Disparities in California Child Welfare System

Racial inequalities in California’s child welfare system disproportionately impact poor Black and Native American children, according to a report released April 3 by the nonpartisan Legislative Analyst’s Office (LAO). The report, which was presented to the Assembly Subcommittee No. 2 on Human Services — chaired by Assemblymember Corey Jackson (D-Moreno Valley) — states that the proportion of low-income Black and Native American children in foster care is four times larger than other racial and ethnic groups in the state.

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“Racial and ethnic disproportionality and disparities are present within initial allegations and persist at all levels of the system -- becoming the most pronounced for youth in care,” the report states.
“Racial and ethnic disproportionality and disparities are present within initial allegations and persist at all levels of the system -- becoming the most pronounced for youth in care,” the report states.

Racial inequalities in California’s child welfare system disproportionately impact poor Black and Native American children, according to a report released April 3 by the nonpartisan Legislative Analyst’s Office (LAO).

The report, which was presented to the Assembly Subcommittee No. 2 on Human Services — chaired by Assemblymember Corey Jackson (D-Moreno Valley) — states that the proportion of low-income Black and Native American children in foster care is four times larger than other racial and ethnic groups in the state.  Half of the children from each racial group has experienced some level of child welfare involvement before reaching legal age.

Jackson is a member of the California Legislative Black Caucus.

“Racial and ethnic disproportionality and disparities are present within initial allegations and persist at all levels of the system — becoming the most pronounced for youth in care,” the report states.

The disparities have persisted over the last decade across the state, the LAO found, adding that Black children living in poverty are more likely to enter foster care. State data shows that there is a correlation between poverty and foster placement in each county.

“Throughout all levels of the child welfare system, families experiencing poverty are more likely to come to the attention of and be impacted by the child welfare system,” stated the report.

Overall, the report revealed that more than half of the families affected by the state child welfare system earn $1,000 per month, significantly less than the national average of $5,000 a month.

The financial disparities highlighted in the LAO report align with existing research indicating that poverty is among the main factors contributing to the likelihood of child maltreatment. State anti-poverty programs include cash aid, childcare subsidies, supportive housing, and nutrition assistance.

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California Black Media

Commentary: Finding the Right Balance — Addressing Organized Retail Theft While Upholding Civil Liberties

Organized retail theft is a significant issue that impacts both consumers and businesses. While it is crucial to address theft and protect businesses from losses, we should also be mindful of safeguarding individuals’ constitutional rights, particularly the right to due process. AB 1990 by Assemblymember Wendy Carrillo, also known as the STOP Act, raises concerns about the balance between addressing theft effectively and ensuring civil liberties are upheld.

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Assemblymember Tina McKinnor (D-Inglewood)
Assemblymember Tina McKinnor (D-Inglewood)

By Assemblymember Tina McKinnor | Special to California Black Media Partners

Organized retail theft is a significant issue that impacts both consumers and businesses. While it is crucial to address theft and protect businesses from losses, we should also be mindful of safeguarding individuals’ constitutional rights, particularly the right to due process.

AB 1990 by Assemblymember Wendy Carrillo, also known as the STOP Act, raises concerns about the balance between addressing theft effectively and ensuring civil liberties are upheld. This bill allows law enforcement officers to make warrantless arrests for shoplifting offenses not witnessed by the officer, as long as there is reasonable cause to believe the individual committed the crime. This bill has a dangerous potential for overreach and infringes on civil liberties, particularly the right to due process.

While the stated intention behind the STOP Act is to combat organized retail theft and protect businesses, there are valid concerns that this bill is an overreach and that existing law works, if properly enforced by our partners in law enforcement. A petty theft involving property stolen valued at $950 or less may be charged as a felony or misdemeanor (called a wobbler) if the offender has the following prior convictions:  1) at least on prior petty or theft-related conviction for which a term of imprisonment was served, and 2) a prior conviction for a serious or violent offense, for any registerable sex offense, or for embezzlement from a dependent adult or anyone over the age of 65.  A misdemeanor can result in a sentence of up to one year in jail, whereas a felon can mean incarceration for 16 months, two years or three years.  Let’s look at shoplifting in California.  It occurs when a suspect enters a store, while that establishment is open, intending to steal property worth less than $950.  The crime is considered a misdemeanor, punishable by up to six months in the county jail.

Granting officers the authority to arrest individuals based on reasonable cause, without witnessing the crime firsthand, can lead to negative consequences and possible violations of individual rights. Probable cause is the legal standard by which police authorities have reason to obtain a warrant for the arrest of a suspected criminal and for the courts to issue a search warrant. A grand jury uses the probable cause standard to determine whether or not to issue a criminal indictment.  The principle behind the probable cause standard is to limit the power of authorities to conduct unlawful search and seizure of a person or its property, and to promote formal, forensic procedures for gathering lawful evidence for the prosecution of the arrested criminal.  Reasonable cause does not require any of this due process and only requires that an officer reasonably believes that a crime has been committed. It is essential to find a middle ground that effectively addresses organized retail theft without compromising the fundamental rights of individuals.

California’s current laws, including the use of witness statements and surveillance evidence are sufficient for addressing suspected shoplifting and organized retail theft. California Attorney General Rob Bonta recently prosecuted Michelle Mack, a suspected organized smash and grab ringleader who paid twelve women to travel around California and commit over $8 million in retail theft at 21 different stores. AG Bonta used California’s current laws to have the suspect arrested and brought to justice.

The State of California is also making significant investments to address retail theft. Just this past year California invested an additional $267 million to combat organized retail theft. It has been less than a year and our law enforcement partners should have the opportunity to address this recent spike in retail theft crime.

Los Angeles County recently applied for and received a grant for the State of California for $15.6 million dollars to address retail theft enforcement.  LA District Attorney George Gascon also recently formed an organized retail task force that partners with LA County Sheriff’s Department, Glendale, Beverly Hills, Burbank, Torrance and Santa Monica Police Departments to integrate their response to retail theft across the region. These collaborative efforts, such as those seen in initiatives like the organized retail task force in LA County, demonstrate the importance of a united approach to tackling theft while maintaining a balance between enforcement and civil liberties.

As we move forward, it is essential for policymakers, law enforcement agencies, businesses and communities to work together in finding solutions that effectively address organized retail theft without encroaching on individual rights. Ongoing evaluation and a commitment to thoughtful consideration will be crucial in navigating this challenge and fostering a safe and prosperous environment for all. Balancing the scales of justice to protect businesses while upholding civil liberties demands a comprehensive and conscientious approach from all stakeholders involved.

I am confident we can find that balance.

About the Author 

Assemblymember Tina McKinnor (D-Inglewood) represents the 61st District in Los Angeles County, which includes parts of the South Bay, Inglewood, Hawthorne and Lawndale.

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