Sic transit transit center

Well, the other shoe dropped on the Paper Mate site. Hines sold the property and now the old factory’s 200,000 square feet will become offices, with another level of parking being excavated under the existing parking lots.

Turns out that the paranoia of City Council Members Terry O’Day and Gleam Davis was warranted. During the signature gathering on the Residocracy petition they warned, in an op-ed for the Daily Press, that the alternative to the plan the City Council passed was not a better version of the plan, but a repurposing of the existing building as offices, which would mean thousands of car trips, no traffic mitigations, and none of the $32 million in community benefits that were included in the Hines plan.

I’m waiting to see how long it will take for someone to accuse the developers of being greedy because they aren’t building, across from the Bergamot Expo station, plazas, streets, sidewalks, etc., accessible to the public.

Not to mention the nearly 500 units of housing we’re not getting—housing that a lot of people who work in Santa Monica could use, housing that would keep them off the streets, so to speak, during commuting hours. But housing was not a plus for many people who opposed the project, and that explains why they’re happy with the new plan.

If the paranoia of O’Day and Davis turned out to be prescient, Council Member, now Mayor, Kevin McKeown turned out to be not so good in the prediction department. In an op-ed he wrote for the Daily Press, headlined “Calling for more housing from Hines,” he said that fears that Hines would “walk away” from the deal were unfounded; that “[s]uch a walk away hasn’t happened in decades in Santa Monica.” Give McKeown his due; he’s not backing down now that Hines did walk away. Last week he told Santa Monica Next that, “[t]his project [the new one], even as adaptive reuse, will disappoint many of us, but the original Hines proposal failed in even more massive (and likely more permanent) ways to make appropriate use of a challenging site.”

I hope Mayor McKeown is right about the new plan being less permanent, but I doubt it. The “Pen Factory,” as the development is being marketed, will be around for a long time. Not only because it will take a while to amortize the considerable investment in the remodel (notably for underground parking), but also because once the offices are up and running and paying some of the highest rents in the region, the likelihood that an owner would shut the place down for the several years it would take to build a new project is slim. Expect that the Pen Factory will be there for 20 or 30 years at a minimum.

But McKeown was right that the Hines plan should have had more housing and less offices. I’ve been saying that since before the City Council approved the LUCE, which enabled the Hines plan, in 2010. The plan was flawed, and it may sound like blaming the victim, but I blame Hines as much as I blame anyone else for the plan crashing and burning. The Residocracy folks can’t help themselves, they’re going to oppose development no matter what, but Hines had a choice. Hines was warned as far back as 2010, by its friends, that if it added more commercial space and commuter traffic to the corner of 26th and Olympic, it was going to be in trouble.

Hines could have pulled its own chestnuts out of the fire. During the Planning Commission debate over the plan, Commissioner Richard McKinnon, with then-commissioner Sue Himmelrich’s support, proposed a reasonable alternative with less office and more housing. At City Council, Ted Winterer proposed much the same thing, and Tony Vazquez agreed with him. If Hines, at the commission or even at the council, had jumped up and grabbed this offer, the plan could have been approved at the City Council on a 6-1, rather than 4-3, vote.

That could have had a huge impact, because I doubt that Santa Monicans for Renters Rights (SMRR) would have joined Residocracy to oppose a plan that had had that much support among the SMRR-endorsed council members. Residocracy without SMRR might have been able to gather the signatures, but they wouldn’t have had much credibility looking ahead to November.

But then . . . maybe Hines didn’t care. The local Hines people put their heads, hearts and souls into the project, for six years, but headquarters back in Dallas probably figured they could find a willing buyer at a good price if the whole thing became just too complicated. Investors can’t wait forever. And Hines did follow the LUCE development standards, and they reduced their original project by 20 percent, so they legitimately thought they were playing fair. After the referendum, they had the right to feel that they’d never get a fair chance.

So, just how bad is the new project for Santa Monica? Pretty bad. But I’ll discuss how bad in a future post.

Thanks for reading.

Housing the next generation: whose side are you on?

Let’s see, a few days ago I was complaining about how the leadership of Santa Monicans for Renters Rights (SMRR) is, by allying SMRR with anti-development groups like Residocracy and the Santa Monica Coalition for a Livable City, turning the organization into something closer to a typical homeowner protection association than a cutting edge progressive organization. In that connection there was something else that struck me when, as reported in the Lookout, SMRR Co-Chair Patricia Hoffman told the Santa Monica Democratic Club that “‘[w]e have a lot more work to do . . . . If we can work together and spend the next few years selecting candidates, that, I think, can make our City Council even better.’”

Note that Co-Chair Hoffman says selecting candidates. Not electing them, but selecting them. It reminded me of the (in)famous Boss Tweed line, “I don’t care who does the electing, as long as I get to do the nominating.” Well, the people who got to do the nominating in the 2014 election were Hoffman and a handful of her co-generationalists on the Steering Committee.

So what did Hoffman mean? Make the council “even better” by replacing progressives like Terry O’Day and Gleam Davis with candidates, like Susan Himmelrich, co-endorsed by anti-development groups? The Steering Committee’s endorsement of Himmelrich meant that for the first time SMRR endorsed a slate of candidates who were all running on anti-development platforms.

Maybe I shouldn’t be surprised that Hoffman and her colleagues have allied SMRR with anti-development organizations. They were all on the barricades in the ’60s, but we all get older. Should we expect them to care about housing or jobs for anyone who has the misfortune of being young in an era when government cares much more about the old? (From all of this calumny I exclude one Steering Committee member, former mayor Judy Abdo, who still believes in the future and stays forever young in part by living with a rotating cast of under-30 housemates. It probably doesn’t hurt that she spent a career in early childhood development.)

Let’s be clear: to be anti-development today in Santa Monica (assuming you’re not delusional) is to be anti-housing because hardly anything new but housing, and only a modicum of that, has been built in Santa Monica for 20 years, and nearly all the developments in the planning pipeline are residential (and not in existing neighborhoods). For two decades there’s been little commercial development, and a lot of what there has been is ground-floor retail in apartment projects. The idea that Santa Monica has seen a lot of recent development is, as Mayor Kevin McKeown himself has recently written, rhetoric. The facts, as McKeown has been reminding people, show a city that for more than two decades has controlled development quite effectively. (Which means, by the way, that if you believe traffic has got worse and you want to do something about it, you’d better look elsewhere than controlling development, because that doesn’t work.)

This isn’t about affordable housing. The Steering Committee members are for affordable housing, I know that. Hoffman herself is a long time board member of Community Corporation of Santa Monica, and they all supported H and HH. There are, however, people in Santa Monica who advocate for increased affordable housing requirements only to thwart the building of market-rate housing (which ultimately means less affordable housing, too). This is not a unique phenomenon: there are also people, many of the same people in fact, who support living wages for hotel workers only to thwart hotel development, and people who support historic preservation only to thwart the building of anything new.

SMRR is allying itself with people who are never in favor of building housing. It’s remarkable how eclectic they can be. Equally bad are single units for young tech workers and SMC students, spacious condominiums that hotels want to build for rich people, or family apartments that CCSM wants to build for poor people; biggish projects like 500 Broadway or small projects like 802 Ashland; or any other kind of housing you can think of. For the anti-housers, it’s not that the perfect is the enemy of the good, but that when it comes to building something for people to live in, whatever it is is never good enough.

The regional housing crisis, the worst in decades, one that includes skyrocketing rents in Santa Monica that put pressure on tenants in rent-controlled apartments, is only partially a crisis about affordability. Fundamentally it’s a crisis of supply at all price levels. The huge Millennial generation coming up doesn’t primarily need affordable housing—they need alternatives to moving to the Inland Empire.

Another commendable thing that Mayor McKeown has been doing for a while is to remind people that we need to provide housing for those who graduate each year from Samohi if we expect any of them to live here. But not many of those graduates will qualify for affordable housing, in part because they are graduating from a good school, with the vast majority of them going on to college, and because there are so many good jobs in Santa Monica that they can come back to. It is, by the way, good news that they won’t qualify for affordable housing, but it means that we’re going to have to rely on the market, i.e., developers, to build homes for them and their future families. And those homes won’t be single-family, detached houses, because there’s no land for that.

So—whose side will SMRR be on?

Thanks for reading.