CED is getting started a bit late. The agenda will likely be lengthy, and includes introduction of the Economic Development Action Plan, and some other weighty issues.

Meeting just started.

Ramachandran is using remote AB2249 to zoom in from her office.

Unger asked CAO for an info report on new permitting processes. ACA Lake says they can come back in late October with a report.

On to Permit Ready Express Program, which will add additional state funding for AH projects that are permit ready for construction, expediting construction; also for pre-development work for new future projects. Using $5.19 MM from state PRO Housing

My mistake, its a federal, not state grant.

Its interesting that as market rate housing has slowed, affordable housing is getting a lot of funding.

Forwarded to October 7 council meeting

This is an interesting item from a number of povs. Basically its premise is that YIMBY doesn't work...over production of high end units created a brief affordability bump for Oakland middle income tenants. Now too many units, & are likely to increase outside of affordability

HCD Staffer Caleb Smith notes that this is similar to the ACAH program, "there are a lot of these new market rate bldgs...temprarily providing low rents by regional standards...because there are so many units, sale price has been quite low..."

Smith: "in JPA model, city only serves as an approver...state wide JPAs that exist as an issuer of debt..." he says the JPA would use bond income for purchasing a building with affordability covenant...City would have to sign on, but no liability, no debt, no credit rating impact

Smith: "these deals work from a financial perspective, because bonds are tax exempt, favorable interest rate, and the properties qualify for govt owned property tax exemption"

Smith says there are some issues with model in the past, the market was not in the right place for it, inflation of property value, "initially the city of Oakland said no thank you for these...but now we have a set of standards to methodically address those issues"

Smith says that they'd hold the cost at 80% of AMI, avoiding problems in other cities where the apts are too close to market rate..."we can take these market rate buildings...even when rents increase in future, tenants will be able to stay long term"

At some point, when bond is paid off, the building would be transferred to a non profit.

Smith says that with low per unit prices in current market, now is a great time to use this model.

Several speakers on the item.

Lobbyist Isaac Kos Read is representing Hybridge, a developer in what appears to be a project that's in construction, but underwater. Seems like a mutual benefit is taking struggling market rate properties off developers hands whose eyes were bigger than stomach

Here's the story around Hybridge's 4400 MLK; they bought the building after it went underwater during construction, and it's going from 57 market rate units; to 144 units https://sfyimby.com/2025/09/revised-plans-for-abandoned-construction-site-at-4400-mlk-jr-way-oakland.html…

Given the dates I'm seeing here, and the lobbying, the the venture capital fund may have found out that the City was creating this program, and bought the building on spec

Fife's had a number of questions about the future...transferring the units to a non profit after the end of the bond term

Unger clarifying the report's statement that there will be loss of property tax revenue, because the units would be exempt. Smith says that they would initially limit the scope of the program until evaluation.

Smith says that there's a cost-benefit analysis for each project, includes property taxes, RETT, etc...then rent savings for tenants...

Unger & HCD Director Weinstein discussing loss of property tax income vs the public benefit: Weinstein: "it is a point in market where projects are cheap to acquire...right now we know we have a soft market, soft market also means market rate rents are depressed..."

Weinstein: "...right now you can rent a market rate unit that is affordable to families at 80% AMI...the hope is you're taking a certain segment of market rate that would otherwise increase, but you're getting in before the increase...to take projects off speculative market"

Brown going through stats of "middle income" resident tenants,

Smith says that there's a limited window of time to make a bid on behalf of JPA, they are asking for delegated authority for CAO to make those offers.

the JPA middle income program was forwarded unanimously to council 10/7

Now on to this item appropriating $66 MM from Measure U, and some other funding sources for a NOFA for new construction

Forwarded to 10/7, now on to this odd item. City wants to sell off a redtagged building its used as a homeless shelter run by a third party contractor since 90s.

Brendan Moriarty, City's real estate guy is giving a power point presentation that zoom viewers can't see apparently

Moriarty says it was acquired for right of way purposes, when city was building Hegenberger Expressway, using only back portion. City tried to sell remainder in late 1980s but wasn't successful. Then used in shelter plus care program for low income housing thru several providers

Most recent partner EOCP returned it to City, but it had deferred maintenance because city had not invested in it. There were "unauthorized" tenants...there was a fire, city redtagged, uninhabitable.

There's photos, but they can't be seen on zoom

Office of Homelessness Solutions, and Community Homeless Services and Real Estate Development are recommending sale of property on open market to highest bidder. Proceeds would go to general fund.

I am pretty sure a CM will ask why its being exempted from surplus lands act when it could be bid for by an affordable housing developer

Brown asks about whether there will be any criteria about buyer, and use would be "in alignment with city's priorities"

Moriarty says they briefed Jenkins, the CM of the district; Moriarty says they considered scenario of it being put in service as an AH project...he says that they're not recommending it, that criteria only be highest bidder.

Moriarty says they're not recommending that they look at potential community benefit, because we believe that benefit is small, and capital investment is necessary...

Brown asked what they're doing to secure property...[this reporter saw the boards displaced last week, not surprisingly]

They forwarded the sale to 10/7 meeting

Now on to this very dense 2025-29 economic development action plan. I will hit the high notes

Will post the slides, but the brochure is available in the packet

Probably the only novel thing here is "attract and grow key industries" and "invest in places", things to watch.

Very little discussion of the report...because there's not much there, it's very unspecific, but we'll see where they land with actions.

Staffer just noted what I imagine would be of concern for everyone, sales tax sharing and hotel tax sharing as a way of attracting big business.

Ramachandran asking about sector strategies, staffer very much indicating they don't have one yet.

Staffer says there are "roundtables" with business leaders to develop the business attraction

They are forwarding the plan to 10/7 council

That's it for the meeting. Life Enrichment is next, there will be a significant item there were the City is proposing winding down a substantial segment of its interim housing models, community cabins, and RV safe parking equaling over 600 beds