Revenue Numbers From Contested Real Estate Tax Reveal $3.4 Million Boon For City Hall

Real Estate Transfer Tax Rains Money 

on Emeryville

Emeryville's general fund received $3.4 million in calendar year 2015 under a new real estate transfer tax voted in by the electorate in November of 2014 according City Hall, an amount far exceeding what the City has hauled in during any other year for these transactions.  The tax, called the Real Property Transfer Tax (RPTT), was dramatically increased when Emeryville voters passed 2014's Measures U&V that transformed the town into a 'charter city' that enabled the revenue increase on real estate transfers and was panned in the run up to the election by the business community and outside lobbying groups including the powerful Sacramento based California Association of Realtors.

Councilwoman
Jac Asher
Urged passage of the
real estate transfer tax
in spite of dire warnings
from Sacramento lobbyists. 

The formerly cash strapped Emeryville took in a $3,397595 windfall for 2015, the first full year of transfer taxes at the new rate which became effective on January 1st, 2015 the City announced last week.  This compares to calendar year 2014 under the old tax rate when the City took in just $475,001 despite a vigorous real estate churn.  Before Emeryville voters approved the switch, real estate taxes were charged at the rate of 55 cents per $1000 of value, the maximum a 'General Law' city can charge versus unlimited but set at $12 by the City Council now that Emeryville is a 'Charter City'.  By comparison, one real estate transfer last year, the sale of Emery Tech on Hollis Street, netted City Hall's coffers more than a million dollars alone.

Supporters of the Charter City Initiative, including its chief backer and progenitor Councilwoman Jac Asher, told voters before the November 2014 election much revenue could be gained by raising the tax rate and the numbers released last week tend to vindicate Ms Asher.
Emeryville had stood alone as a general law city among its charter city neighbors Ms Asher reminded voters and the City Hall had left some $21 million on the table with its former anemic 55 cent rate over the last few years.

Jason Crouch
Real estate salesman
and former Chair of the
Emeryville Chamber of Commerce:
If Emeryville voters approve
this real estate transfer fee,
"It's the beginning of the end
for Emeryville". 

The NO on Measures U&V side said passage of the Charter City Initiative and the increasing of the real estate transfer tax would bring a domino effect of general business failure and real estate collapse to Emeryville, even possible bankruptcy for City Hall.  Former Chamber of Commerce Chair Jason Crouch posited himself as point man for the NO on Measures U&V and he hosted public forums warning of the dire consequences to befall Emeryville if the voters said yes to the higher tax rate even though at $12 per $1000, the new rate is still lower than what Berkeley or Oakland charges.  "It will be the beginning of the end for the Emeryville we know and love" the Vallejo resident said.

Voters soundly rejected incessant pleadings in the 2014 election from the NO side in the form of volumes of mailers from portions of the Emeryville business community and especially the California Real Estate Association who dumped more than $85,000 to defeat the two measures.

The money from the new tax, more than $300 for every woman, man and child in Emeryville, pays for among other things, sidewalk repair, park maintenance, street maintenance, landscaping and other needed infrastructure work.

EmPAC Folds Up Tent: Last Vestige of the Emeryville Chamber of Commerce Collapses

The Once Mighty EmPAC Quietly Folds

News Analysis
The Political Action Committee known as EmPAC, used for more than a decade by Emeryville's right wing to consolidate and expand its political power, has quietly folded last week, ending the last vestige of the recently closed Emeryville Chamber of Commerce and bringing to a close an era of runaway development for the town. The termination of EmPAC ends speculation about whether the once powerful and widely recognized election game changer would continue on without its Chamber of Commerce progenitor and partner.  After the death of the Chamber of Commerce in August and with the rolling up of EmPAC, the business community in Emeryville is now left without any official local lobbying capacity and without a way to effectively and clandestinely influence City Council elections.

The Chamber of Commerce invented EmPAC many years ago as a way for businesses and especially developers to secretly donate to City Council candidates of their choice.  Before EmPAC, out-of-town developers with development proposals impending would have to give directly to the candidates of their choice at election time but rival candidates could and did make use of the donations by publicly 'outing' the contributors to draw votes away from the Chamber's candidate.  In response, the Chamber introduced EmPAC.
EmPAC made large corporate political campaign contributions in Emeryville much harder to trace in a direct way.  As a consequence, EmPAC was used in every election to funnel lots of money to their candidates and in so doing, the outcomes of many elections were presumably changed.
The left wing side in Emeryville has never made use of a Political Action Committee it should be noted, probably because their candidates generally receive small donations from Emeryville residents exclusively and as a consequence, there's no need for attempting to hide anything.

It has been widely reported the rise of the resident activist group RULE brought great difficulties for the powerful and secretive Chamber of Commerce and EmPAC and grassroots democratic electioneering helped spell its end.  With election season starting in a few months in Emeryville and given EmPAC's rousing past success however, the termination of EmPAC does not preclude a new right wing PAC from rising up to replace it if developers and the business community so deem it.

The Alameda County Registrar of Voters received the 410 form officially disbanding EmPAC on September 3rd and Chamber members Jason Crouch and John Gooding were listed as assistant treasurer and principal officer respectively.  Both those men have been heavily involved in Chamber and EmPAC business over the years including an unsuccessful attempt in 2005 to defeat Measure C, Emeryville's 'living wage for hotel workers' ordinance, an election that cost the group some $140,000.

The Ignominious End of the Once Mighty EmPAC
Will its demise bring a rise of transparency?
Will developers and businesses now donate to City Council
candidates directly and openly like everybody else?

Unofficial: Measures U&V Win

The Alameda County Registrar of Voters has declared Measures U&V in Emeryville as winning yesterday's contest with a revised set of numbers in an "unofficial" tally.  Measure U will make Emeryville a charter city and Measure V will impose a real estate transfer fee.  
U&V won easily despite Vallejo resident, real estate salesman and Emeryville Chamber of Commerce Board member Jason Crouch taking the lead in the fight, marshaling the National and California Association of Realtors to swamp Emeryville in an expensive campaign against the two measures. Spending by the NO side overpowered the YES side in a 43:1 ratio, unprecedented in modern Emeryville electoral history.


The newly revised numbers (all precincts reporting):

YES on U   822 at 57.6%
NO on U  605 at 42.4%

YES on V   843 at 59.2%
NO on V   581 at 40.8%

Follow the Money: A Snapshot of the California Association of Realtors

Outside Lobbying Group Unconstrained by Money 

Follow the Money; fifth in a series

The Tattler introduces a new feature for the 2014 election season: Follow the Money. 

This election cycle is shaping up to be very expensive and very far-flung with lots of money from out-of-town interests pouring into the city.  We plan on digging out and exposing this money from people and organizations we don’t know that are trying to change our town to their liking.  These unfamiliar individuals and interest groups may effect our November elections with all their spending in Emeryville but the Tattler is going to make sure that while they assert their influence, we’re going to expose who they are. 

Click on the 'Follow the Money' label at the bottom of this story or use the search bar to review the entire Follow the Money series.

News Analysis
One of the largest lobbying groups in California has vowed to stop Emeryville residents from voting for their own autonomy in a local control measure and a real estate transfer fee measure (Measures U&V) on the November 4th ballot and these Sacramento lobbyists are putting their money where their mouth is.   The Sacramento based California Association of Realtors as well as the National Association of Realtors (CAR & NAR) has targeted the State with a $3.4 million war chest for this election and they've taken a keen interest in Emeryville's November elections resulting in a barrage of campaign flyers, now beginning to drop on Emeryville.

CAR- They want to
extract maximum 
profits from Emeryville.
They're going to stop
residents from deciding for
themselves about
local control.

The California Association of Realtors has determined our little town of Emeryville will be a pivotal player in their ongoing fight to stop any more citizens in California from being able to enact local control governance (by becoming a charter city) and collect revenue via real estate transfer fees.  This lobbying group sees local control as potentially cutting into their substantial profits and having 'lost' many towns in the state to local control over the years, they're now drawing a line in the sand here in Emeryville.

Meet CAR
The California Association of Realtors has money to burn.  Here's a quick synopsis of their spending:

• They've spent almost $30 million statewide on 593 election flyers over 17 years
• They're half done spending the $3.4 million they targeted in the State for this election cycle and still have almost $2 million in cash on hand as of Oct 19th
• In 2010 during the height of the Great Recession, they spent $33 million in California of which $23 million was spent trying to influence voters
• In 2012 that number rose to $41 million spent on lobbying alone
• They've set aside $85,000 for this year's Emeryville campaign

Emeryville is especially worrisome for CAR & NAR this election year because of the streamlined ballot initiative language the City Council authored for Emeryville voters to consider as they go to the polls.  City Council members recognized the importance of keeping the ballot language simple for voters and they had to battle City Attorney Mike Biddle to craft it so.
Large, verbose ballot initiatives filled with unintelligible legalize is what voters have faced in other California charter city municipal elections, scaring voters off.  This year, Emeryville managed to make the Measures U&V ballot language on the charter city local control and real estate transfer fee clear, concise and short, and that's a big problem for these Sacramento lobbying groups.  In addition, the Measure U & V language assures voters Emeryville governance will stay just as it is, no change at all.

Emeryville Chamber of Commerce Discredited

Real Estate Salesman
Jason Crouch
Used to work for
the Emeryville Chamber
of Commerce.  Now he
works for CAR.

The Emeryville Chamber of Commerce likes Measures U&V because they recognize Emeryville is in a bad position after Sacramento dissolved the town's Redevelopment Agency; the mechanism Emeryville used to build virtually all the infrastructure in town.  Once flush with cash, Emeryville is now on a glide-path to insolvency and new sources of revenue must be found to even maintain the city's infrastructure let alone build more.  The Chamber's Board of Directors recognized this and voted to endorse Measures U&V last summer.  But the sole real estate agent among the Chamber's Board members, Vice President and Vallejo resident Jason Crouch, has turned on his colleagues at the Chamber and gone rogue.  Mr Crouch broke with the Chamber of Commerce, discrediting them and crossed over to the California Association and National Association of Realtors in a Faustian bargain.  The Realtors sought a point man for their Emeryville campaign and Mr Crouch offers entree and local credibility with his Chamber of Commerce Board membership connection.

Emeryville residents will only get campaign flyers (and phone banking) against Measures U&V  because State law forbids the City of Emeryville, the author of both Measures from such campaigning.  State law does permit the City certain "educational" materials to be distributed but they are highly regulated in how much they can spend and they are not allowed to use the hyperbolic coercive language let alone deception the California Association of Realtor is allowed to use in its flyers.    

Follow the Money: Emeryville's November Election Draws Sacramento Lobbying Group

Out-Of-Town Real Estate Interests Set Up Political Committee for Emeryville Election

Statewide Realtor Association Money Dump 
Special Moneyed Interests Work to Nix Local Control

Follow the Money; first in a series

The Tattler introduces a new feature for the 2014 election season: Follow the Money. 

This election cycle is shaping up to be very expensive and very far-flung with lots of money from out-of-town interests pouring into the city.  We plan on digging out and exposing this money from people and organizations we don’t know that are trying to change our town to their liking.  These unfamiliar individuals and interest groups may effect our November elections with all their spending in Emeryville but the Tattler is going to make sure that while they assert their influence, we’re going to expose who they are. 

Click on the 'Follow the Money' label at the bottom of this story or use the search bar to review the entire Follow the Money series.

Emeryville residents, get ready to get "IMPACed".
That being a big money dump from the California Association of Realtors political action committee to fight against a November election over local control of the town.
IMPAC, Issues Mobilization Political Action Committee, is the political action arm of the Sacramento based statewide Realtors Association, the State's top real estate lobbying group.
The issue at hand are two Emeryville ballot initiatives, both brought by unanimous consent of our City Council for a vote by the citizens November 4th; one being Measure U the Charter City Initiative, a local control initiative and the other Measure V, an initiative to establish a real estate transfer fee, the same fee charged by neighboring cities Alameda, Oakland and Berkeley.

The committee set up to fight both initiatives is calling itself "Citizens to Preserve Emeryville" and lists its Treasurer and Vice Treasurer as hailing from Sacramento and Oakland respectively.  The bank for  Citizens to Preserve Emeryville is in Roseville California.

Emeryville Chamber
of Commerce Vice Chair
Jason Crouch
His backing of the Realtors
subverted the will
of the Chamber. 

A check of the filing documents shows IMPAC has kicked off the spending on the Emeryville ballot initiatives with an initial drop of $20,000.  An extra $5,000 in "interboard solicitations" was also approved to fight Emeryville, IMPAC records showed.  With nearly unlimited resources available at the 160,000 member California Association of Realtors, more money could follow as the anti-Emeryville local control campaign progresses.

Chamber of Commerce's Interests Hijacked
The drama of the California Association of Realtors pushing their weight around Emeryville is further heightened by the unseemly spectacle of the Vice Chair of the Emeryville Chamber of Commerce, Vallejo resident Jason Crouch, hijacking the Chamber's wishes by joining the fight against U&V.  The Board of the Chamber of Commerce has voted to join with the City of Emeryville and endorse both Measures but Mr Crouch signed his name and he included his Vice Chair position on the Chamber Board to the ballot measure arguments against U&V.  
The ballot measure arguments for and against will be in the official Voters Guide printed by Alameda County appearing in voter's mailboxes later this month.

The Sacramento real estate group's chief argument against the charter city initiative (a municipal governance model referred to as 'local rule' or 'home rule') is that it will allow Emeryville citizens themselves to decide many functions of governance that Sacramento now dictates with Emeryville as a 'general law' city.  The actual vote in November will only give Emeryville residents local rule to the extent that they decide whether to initiate a real estate transfer fee.  As it stands now Emeryville misses out on the funds from these transfers that our neighboring cities collect.

The City Council has noted with the demise of the Emeryville Redevelopment Agency, an entity that formerly entailed 90% of the town, fully half of the city budget has been lost.  Infrastructure, parks, maintenance--the things City Hall builds for residents to retain the quality of life will be increasingly out of reach.  Further it should be noted that Sacramento gets to change the rules on general law cities moving forward.  That's what happened when the Redevelopment Agency was eliminated.  Without the local control that the charter city designation brings, Emeryville won't have a right to collect the same fees as the neighbors, putting our budget at risk.

Some are speculating the California Association of Realtors sees Emeryville's local control vote in November as potentially a landmark case, spurring other general law cities in California to became charter cities.