Emeryville Transit Center's $8.4 million in Public Funds Fails to Help Transit

No Transit at Transit Center

City Won't Say When Bus Bays Will Be Operational

More than ten years after the City Council OKed it and after Emeryville taxpayers were later tapped for an economic subsidy of $4.2 million to help build a private development laboratory/office tower near the Amtrak station on Horton Street known as the Transit Center, citizens still wait for the publicly accessible bus bays that were touted as the primary reason for the Center and the public subsidy.  A year and a half after completion of the Transit Center, City of Emeryville officials are now admitting negotiations between the developer, the City and Amtrak are "not progressing as expected".  An agreement should eventually be reached and the bus bays made available for public transit use, the City added.

Privately however, a City official told the Tattler that the COVID pandemic has brought down Amtrak to such a degree (Amtrak ridership down a whopping 95%), it is unlikely the rail service even has any use for the bus bays anymore and any agreement for their use may be a long way off.   

The Transit Center, built by Wareham Development is also known as ‘Emery Station West’, and was approved for construction  in 2010 with a toxic soil clean up.  Wareham received its final occupancy permit in April of 2019 and with the Amtrak serving bus bays, Wareham also secured an additional $4.2 million in State of California Transportation Fund money ($8.4 million total public expenditures).  

Emeryville Transit Center
For all the taxpayer subsidy,
it's supposed to have a transit component.

The public largess given to Wareham for the Transit Center has been substantial. Notably, the City will receive no taxes by agreement for 12 years after the issuance of the occupancy permit.  This 'tax increment'  forgiveness is a relic from the days of the Emeryville Redevelopment Agency (RDA) and was commonly used by other RDAs up and down the state until they were all ordered shut down by then Governor Jerry Brown in 2012. The idea was that developers would get a tax break for a certain number of years in order to spur development. Critics noted that RDA financing came at the expense of local school districts and contributed to California’s public education slide beginning in the 1980s.  

However Wareham, unlike most other private developers from the redevelopment era, got an exemption from the State shuttered RDA money after the City of Emeryville convinced Sacramento of the extraordinary public benefit of the bus bays.  It is notable that the bus bays were added as an afterthought by Wareham and were meant to juice public money for the Transit Center who's primary function was always Emery Station West, the laboratory/office tower.  

Emeryville also gave Wareham a $208,000 tax rebate in 2017 for the project after CEO Rich Robbins convinced the City Council that since the bus bays represent a public benefit, he should get relief from the standard developer impact fees. 

The 165 foot tower also required the City Council in 2010 to amend the then newly certified General Plan to increase the allowable hight in that specific area from 55 feet to 165 feet.

The Mayor of Emeryville, Christian Patz was contacted to comment on when the public can expect to get the bus bays they paid for, but he declined.

Free Parking at the Transit Center
Private vehicles are using the bus parking  
that Emeryville taxpayers provided.
Why not?... since buses aren't using the spaces.

Emeryville Noise Ordinance Fails Relevancy Test (Again)

Favored Developer Tests Noise Ordinance,

Residents Lose

Wareham Breaks Law Four Times & is Rewarded By Council

Emeryville's Noise Ordinance, a 2003 law designed to protect resident's reasonable desires for some peace and quiet in a massively re-developing town, traditionally has not been able to stand up to the interests of developers and Emeryville's new progressive City Council, like their conservative predecessors showed us Tuesday they also have no interest in enforcing the ordinance.  In a 5-0 vote, the Council granted a waiver to Wareham Development to work Saturdays starting in May to help the corporation as they work on the controversial 'Transit Center' office tower project on Horton Street.

The waiver now gives official permission for Saturday work to Wareham who has already been busy working Saturdays in violation of the ordinance.  And tellingly, beyond simply granting a waiver for no reason other than helping Wareham increase its profit margin, the Council also saw fit to pardoning Wareham for the four previous violations of the Noise Ordinance over the last six Saturdays in which the police had to intervene to stop work at the site.

Wareham Gets a Pardon
The City Council is so incensed with
Wareham constantly violating our
Noise Ordinance, they're getting
rid of the ordinance so Wareham won't
have anything to violate. 

Emeryville's Weakest Law
The Noise Ordinance has never been enforced.  Indeed, the whole thing has served a different function; making City Council members look good to the cameras as they feign support for the ordinance.
Usually when developers seek to get a waiver for the Noise Ordinance from the City Council, a reason 'beyond their control' is offered such as an unusual amount of rain (even during a drought year as embarrassingly was the case for Turner Construction and the ECCL).  However Wareham on Tuesday only offered that certain jobs they need to complete for the construction of the Transit Center (welding, pouring concrete) are especially impactful and these components should be done on weekends because...well, no reason was given to that question.  The fact that these components of the job being loud and impactful (precisely the reason why the Noise Ordinance was passed; to protect our weekends from this) was not seen as something the community would object to by the Council, illustrates how inconsequential the ordinance is.

The four recent violations of the ordinance by Wareham have been assigned police department 'event numbers' but no provisions within the ordinance itself provides for a remedy for the residents or punishment against violators, leaving the resident's interests unsupported except by the City Council, if it were of a mind to support them.  However Tuesday's Council action, rewarding lawbreakers, tells the developer and business world that regardless of recent City Council elections, their interests are still sacrosanct in Emeryville at least when it comes to crashing and banging on weekends in our town.

Caught Again!

Transit Center workers get caught working on another Saturday in violation of our Noise Ordinance.  The workers tried to palm off the loud concrete form work as "cleaning" but they were cited (no fines) by police for violating the ordinance.  Wareham Spokesman Geoff Sears told the City Council Tuesday that workers have merely been "dewatering" the site after rain storms, a claim not supported by the observations of the Emeryville Police.

Wareham to Receive $208,000 in Public Funds

Council Gives Wareham CEO Rich Robbins

Gift of Public Money

Corporate Profits Remain Private But Risk is Made Public

Mayor Scott Donahue
Giving Wareham $200,000
of the people's money is nice
but $500,000 would be better.

In an unprecedented act of City Hall-to-developer largess in a city long known for its extraordinary generosity to developers, the Emeryville City Council, acting on a recommendation from the staff, voted Tuesday to give a lavish gift of $208,000 in public money to Rich Robbins of Wareham Development Corporation for the controversial 'Transit Center' project on Horton Street.  The City will write a check to Wareham, drawn from public funds because Mr Robbins, the CEO of Wareham and a major player among developers in town, thinks it's unfair to him that the City increased its development impact fees before the Transit Center was finished and that he should get any additional money he paid returned to him.  The final amount agreed to by the City Council Tuesday ends the contested cash back request from Mr Robbins begun in January when he asked the City for $729,000.

Councilwoman Ally Medina felt Rich Robbins' pain Tuesday night and argued to give Wareham $208,000, however her two colleagues Mayor Scott Donahue and Councilwoman Dianne Martinez thought Ms Medina was too stingy with the people's money and held out for a gift of $500,000 instead; the amount recommended by staff.  All three pointed to the public benefits the citizens will reap from the Transit Center project.  The City Attorney, Michael Guina reminded the Council members that returning the money to Mr Robbins is strictly voluntary and they are under no legal obligation to do so but that fell on deaf ears among the majority on the Council.
Ms Medina's argument ultimately held sway and the City of Emeryville will now write a check for $208,420 to Mr Robbins for building the project the Planning Commission twice voted down due to its "lack of public benefit".  The two figures bandied about Tuesday night ($208,000 and $500,000) represent two visions of what was characterized as "fair" by their respective City Council champions Tuesday but neither had any legal basis, opening up the City to possible lawsuits from other developers similarly taxed and looking to be made whole.

Councilwoman Dianne Martinez
Yes, let's make it a cool half million.

Mayor Donahue told the Tattler after the final vote, "Fees are paid or improvements are made to provide a city for reimbursement for public services.  When infrastructure is provided that the fees pay for, having that fee is a kind of double charge."  The Mayor added the cash back to Rich Robbins is "prudent" and speculating about future Wareham development projects in Emeryville, he cautioned, "We'll have to negotiate with Rich in the future (for our benefit)."
Councilwoman Medina expanded on the idea of "fairness" after the vote, stating she felt constrained by "the intent of [the City of Emeryville's] credit policy for transit impact fees' regardless of the City Attorney's concise release from any such (legal) constraint.

The dissenting Council members, John Bauters and Christian Patz, relied on the City Attorney's view and also the need for future transit public infrastructure improvements.  Mr Bauters reminded everyone of the considerable impacts the Transit Center will bring, especially as pertains to bike safety with the glut of cars from the 823 parking spaces the project will provide, "We're going to put a lot of cars on [the Horton Street] Bike Boulevard" he said noting the money, fungible as it is, could help ameliorate that safety issue and help other transit needs the City has.
For her part, Ms Martinez agreed the Transit Center will have a negative impact but she said she is more concerned with being "fair" to Mr Robbins.

Councilwoman Ally Medina
After what the City Attorney said,
$500,000 might sound too generous...
Let's settle on $200,000.

Mr Bauters noted developers, when they put together a project, take a risk that a municipality might change the rules (including the fee schedule) and they are not required to be made whole following such a public policy change.  "Development equals risk" he said Tuesday, raising the specter of the much derided federal government's fealty to Wall Street and their propensity to help them keep corporate profits private while socializing the risk.

Emeryville Wins Court Appeal on Three Redevelopment Projects

Bike/Ped Bridge & Art Center Back on Track 

Stanley Mosk Library and Courts Bldg
by Coolcaesar. (Wikimedia Commons)

The California Court of Appeal in Sacramento today affirmed a lower court's ruling in favor of Emeryville regarding three challenged redevelopment projects. The State Department of Finance had sought to block the projects and return the related money to state coffers. The on again off again projects were intended to fund the 53rd Street bridge over the railroad tracks to Bay Street known as the South Bayfront Bike/Ped Bridge, the Art Center, and the so-called "Transit" Center next to the Amtrak Station.

The Court of Appeal's decision interprets the relevant state statutes in Emeryville's favor, finding that Emeryville, as Successor to the Redevelopment Agency, was entitled to re-enter the agreements necessary to continue pursuing these redevelopment projects. These agreements were also agreed to by the Oversight Committee and the court concluded they were within their rights to do so.

While the former Redevelopment Agency's contributions to the Bike/Ped Bridge and Art Center might not be enough to fund these projects completely, this win certainly puts those projects on a sounder financial footing. The so-called "Transit" Center with its overwhelming commercial purpose and backers was likely to be built regardless of this outcome, but now we can rest easy that a developer will likely get one last giveaway from Emeryville's former Redevelopment Agency.

It is not yet clear whether the State will seek to appeal this decision to the California Supreme Court.

The roller coaster ride of these project's approvals can be viewed:
South Bayfront Bike /Ped Bridge HERE and HERE
Art Center HERE and HERE
"Transit" Center HERE and HERE

'Transit' Center Project Mysteriously Missing from Emeryville Capital Improvement Presentation

'Transit' Center Pushed Down the 
Memory Hole

Opinion
If the City of Emeryville planned on spending $4.2 million on a specific capital improvement project between the years 2014 and 2019, wouldn't you think that project would appear in a City Hall produced document for public edification entitled 'Capital Improvement Program Fiscal Years 2014-15 to 2018-19'?   Especially if smaller projects representing less public money were highlighted in the document?
That's what we thought.  So we were surprised when the City Staff gave a thorough account of planned capital spending and the 'Transit' Center, a Wareham Development project planned for Horton Street with it's $4.2 million publicly purchased amenity of four Amtrak bus bays, was completely  left out of the document handed out to the public and discussed yesterday morning.  Other  projects, like the Senior Center Rehabilitation at $1.9 million, the Peninsula Fire Station Renovation at $1.3 million, the Art Center at $3.9 million were explained in detail by the Staff but strangely, the 'Transit' Center at $4.2 million was not.  
"It was an oversight", Public Works Director Maurice Kaufman explained when asked.

An "Oversight"... Was it Really?

The City used the Saturday meeting to explain about the Capital Improvement Program which is essentially a 'wish list' for City projects to benefit the people.  The City also wished to elicit comment from the public about the CIP.
They took pains to describe the negative repercussions on the CIP as a result of the demise of the Emeryville Redevelopment Agency (RDA) and about how the City had rescued some projects from the clutches of the State of California when Sacramento declared Redevelopment Agencies illegal state-wide last year.  Emeryville had four projects so rescued and some former RDA funds were permitted to be unlocked.  The State is basically letting us use our own money to fund these projects. The four projects are the Center of 'Community' Life on San Pablo Avenue, the Art Center at City Hall, the South Bayfront Ped/Bike Bridge over the railroad tracks and the 'Transit' Center project.   Other projects in the CIP wish list are to be funded by the City with money generated without the Redevelopment Agency. The three projects included by Staff were described in detail Saturday but the 'Transit' Center never made it into the document or the discussion.  Observant people with a knack for budgetary spreadsheets might have seen the small text entry of the $4.2 million in an adjoining financial accounting however.

The crowd Saturday was asking for capital improvement funded amenities one would expect from residents: parks (for dogs and people), bike and ped infrastructure, street trees and those kind of things.  Nobody there was clamoring for bus bays.  In fact we've never heard any Emeryville resident ask for more bus bays from the public coffers.  Yet that's what we're getting.  And that illustrates the point: The 'Transit' Center project is not popular with the people of Emeryville.  There already are bus bays at the Amtrak station near the proposed "Transit' Center.  The people in Emeryville don't think it's a wise use of limited public money. The Emeryville Planning Commission, a body hand picked by the City Council, agrees with the residents; they twice voted NO to the 'Transit' Center, stating there wasn't enough in public amenities to justify the $4.2 million public cost.  But the City Council majority overrode the Planning Commission and voted to grant the public money to favored developer Rich Robbins, CEO of Wareham Development  anyway.
Now that that's done, obviously, they want it to just quietly disappear.  They'd rather not needlessly crow about it and remind people that it's developers that call the shots in this town.

Sometimes it's the little things that give away the bigger picture in Emeryville.  Like when our City Attorney Mike Biddle leapt out of his seat, grinning ear to ear, and shook the hands of Wareham representatives in attendance at the January 21st meeting after the Council voted (3-2) to override the Planning Commission and give the green light and public money to Wareham's Rich Robbins.  Sometimes it's the non-existent things that tell the tale; like when the 'Transit' Center got pushed down the memory hole.

'No Lawsuit Clause' : City Lets Wareham Off the Hook

Councilwoman Nora Davis: "We don't like to let people off the hook in this city, right Mike?"

Mike Biddle, City Attorney: "Yes we do"

Opinion
Sometimes it comes off without a hitch at the dog and pony shows known as Emeryville City Council meetings.  But sometimes, well, let's just say it doesn't come off as planned.

Take last Tuesday's Council meeting; a little back and forth, meant to play to the camera, between Councilwoman Nora Davis and City Attorney Mike Biddle didn't quite turn out as the councilwoman expected.  The interplay ended up revealing a darker truth about Emeryville... a corner of the covering having been lifted a little.

Councilwoman Nora Davis
Excuse me while I manage
these critics.....
Ooooops!

Councilwoman Davis was trying to mollify critics of the "No Lawsuit Clause" agreement of the 'Transit' Center development on Horton Street.  The clause stipulates that the developer of the site, Wareham Development is let off the hook for toxins not known about now but subsequently discovered as they conduct their clean up work at the site.  By signing off on the agreement, the Council forever signs away the ability to sue Wareham or anyone else to protect the people of Emeryville.  The Council abrogates their fiduciary duties, saddling the taxpayers with added financial responsibilities should something go awry.  The agreement offers Wareham security and comfort while offering the people of Emeryville nothing but a possible debt of unknown quantity.

The Council finally approved the entire contentious development Tuesday night leaving many residents in dismay over the No Lawsuit Clause but also the agreement that lets Wareham leave significant levels of highly toxic waste on the site under a proposed tower, a reneging of a previous agreement to properly clean-up the site by removing all the toxins.

As Emeryville residents tried to take stock of what was given away Tuesday night, the particular repartee between Councilwoman Nora Davis and City Attorney Mike Biddle was a moment of clarity, emblematic of the sycophantic depths attainable by this Council majority.

City Attorney Mike Biddle
The agreement lets Wareham off the hook.
They must be offered comfort at
the expense of Emeryville residents.

Ms Davis started out agreeing the No Lawsuit Clause offered up by the city staff for approval by the council was a non-starter.  Ms Davis laid it all out; playing to the camera, she showed how she's looking out for the resident's interests with a question for Mr Biddle, "I'd like to hear from Mr Biddle on this 'no suit clause'.  If we could have a little more clarification on that because I think it's a cause of concern for the Council and the community.  We don't like to let these people off the hook in this city."  To which, Mr Biddle responded with a lawyerly yes, we DO like to let people off the hook in this city....leaving Councilwoman Davis speechless; her propaganda moment wilting on the vine.

Mr Biddle explained to Ms Davis' definitive statement about letting people off the hook, "It's been a negotiated position between CBS [the owner of the site before Wareham purchased it], Wareham and the City when they move forward with the clean-up pursuant to the plan we approved that we would release them from any future claims."  Mr Biddle went on to say other developers in Emeryville have been similarly let off the hook with regard to toxic site clean-up releasing them from future claims; notably Madison Marquette, the developer of the Bay Street Mall.  He said these developers want protection from the City coming back after them for additional clean-up if additional toxins are discovered or anything else that may go wrong.  "We're releasing them from any ability of the City to pursue them based on what we know today.  This provides [Wareham] some level of comfort that the City will not pursue them."

Wareham's Rich Robbins
The man behind the curtain

As the City staff, who recommended to the Council to over-ride the Planning Commission decision and approve the Transit Center said, this site is a "toxic waste dump" and should be cleaned up.  But repellent to Emeryville residents, the project as approved lets Wareham off the hook for the toxic waste dump that will remain because of the significant quantities of poisons that get left behind, forever entombed beneath the new building.  And once again the three Council member majority show their allegiance to Wareham: for also repellent to Emeryville residents is how Wareham is also let off the hook in the case that we need to sue them later. The No Lawsuit Clause agreed to by Nora Davis, Kurt Brinkman and Ruth Atkin works in the interests of Wareham; disadvantage Emeryville.

The people of Emeryville DID get one thing in the embarrassing fiasco however.  We did get to see Council member Nora Davis publicly blow it: her legendary and prodigious political acumen revealed to be less than prodigious.  We got to see the curtain lifted and Wareham's CEO Rich Robbins at the controls.

Video courtesy Emeryville Properties Association