Another Public Land Trust Rip-Off

Wilson Riles Jr.

A Native American tradition calls for important decisions to be made in the context of the seven generations that precede us and the seven generations that follow. In other words, respect and learn from the struggles of ancestors and be cognizant of the impacts on great-great-great grandchildren. This is a wisdom that is paralleled in many traditions including African. In these modern times, let us not dismiss wisdom. Wisdom is as important as is vision; they are two sides of the same coin.

In the recent mayoral election, voters chose vision over blind action. However, great wisdom is needed before Dellums takes office in January. Correction is needed of a flagrant decision the Council made this week. We are in the midst of a public rip-off of historic proportions.

The village that eventually became Oakland was originally called Contra Costa (Spanish for the “opposite shore”). In 1852 the town was incorporated, the city council elected and the waterfront stolen by Horace W. Carpentier, Oakland’s first mayor, before most of the residents were even aware that they now lived in Oakland. The Carpentier family made much personal money from this theft of public land. A struggle ensued that included riots, arrests, and vigorous legal and political battles.

On July 18, 2006, the present day City Council facilitated the outrageous theft of public land that is the Oak to 9th Street Project. The Council went along with the Port’s below market sell of some of the same land that Carpentier stole and sold back to the new town that he created. Signature Properties will buy land and sell back “air rights” over a piece of this forever-valuable waterfront. Signature will realize a minimal short-term return of about 70% (as calculated by experts at the Haas School of Business). If this was a loan, at those rates it would be considered illegal usury – and be a sin in the eyes of all the major religions. It is not surprising that Lilly Hu, the focus of the FBI investigation of Senator Don Perata, is also associated with Signature Properties. Senator Perata authored the legislation (SB 1622) that allows the Port to sell Public Trust Property to this developer.

The City will MAKE this property increase in value greatly by rezoning it for greater housing density. The Council will turn their backs on a plan for this property – the Estuary Plan – that had maximum community participation and that cost about $1 million. In addition, through bad deal making, the City will plunk more than $114 million of public dollars in to the production of the few hundred affordable housing units that ought to be the obligation of this developer. This will soak-up almost all available affordable housing funds for the thousands of affordable units needed in all of Oakland for ten years. The affordable housing that will be built will be built over a polluting parking garage – the “air rights” – near the polluting 880 Freeway and produce dangerous, incredible traffic congestion; this will not be a nice place for children. Whether the pitifully few jobs pledged for Oakland residents materialize is highly doubtful considering the lack of an effective monitoring and enforcement device. Once again, there will be lawsuits, demonstrations, and ballot measures.

We must fight the Oak to 9th Street Project with every breath that we have. Otherwise, we will be handing our new mayor as bad a deal as Carpentier handed the townsfolk of the new Oakland in 1852. We can do better; we can develop in a wise way.