Part One: Coalinga Commercial Real-Estate Booms because of Medical Marijuana






COALINGA, Calif. – Thanks to the passage of Proposition 64, business is booming for marijuana in Coalinga. Since the city allowed for commercial marijuana growth last year, purchases for industrial land have skyrocketed. There is no more land available. Coalinga is the only city in Fresno County that allows commercial growth of medical marijuana.

Dozens of years ago, it was mostly oil drilling that paid the bills around Coalinga. But today, the city is embracing a controversial industry that could bring millions.

Johanna Duval-Alvarez is a realtor and broker for Golden Hills Real Estate in Coalinga. She said, “I’ve never seen such a cash crop.”

The crop she is referring to is marijuana. Duval-Alvarez said the industrial-zoned properties where the city has allowed for commerical cannabis growth is in such high demand, “Those are gone like hotcakes. There isn’t much left!”

In fact, nothing is left. There is no more industrial land available for purchase in the city of Coalinga. Police Chief Michael Salvador stated, “The land prices for bare land skyrocketed immediately. Ten, fifteen times what they were originally valued at back last summer, and we’ve received a lot of development applications.”

Salvador said Fortune 500 companies and wealthy investors are spending millions of dollars for land in Coalinga because it’s significantly cheaper than the San Francisco Bay area or Los Angeles, and the city is centrally located in the state.

“Even at prices that we think are exorbitant for this kind of land, to them, it’s nothing,” said Salvador.

Duval-Alvarez said she has already sold two parcels of land, about a half-acre each for about $300,000 dollars. She said it was land that had been sitting on the market for years. The individual she sold to plans to produce and manufacture medical marijuana.

She said, “They’ve all gone above asking price. And there’s multiple backup offers, you know, probably for each of those should somebody fall out. So, the demand’s crazy!”

Mayor Nathan Vosburg said another motivation behind allowing commercial medical marijuana production is that companies have to pay a hefty square footage tax, a $400 dollar per employee fee, and a licensing fee that can cost upwards to $100,000 dollars a year. All the money goes into city’s coffers. Last year, Reggae singer Bob Marley’s youngest son spent about four-million dollars for the city’s abandoned prison. That transaction helped get the city out of it’s three-million dollar debt.

Vosburg said, “One of the most famous opposition remarks was that we’re prostituting out our city, which that really hurt because that wasn’t a fair approach I think.”

Vosburg said he understands the federal government can change everything at a moment’s notice, but he said if the marijuana industry fails, the city of Coalinga will not.

“We’re not hanging our hats on this revenue completely, but we are going to use this industry to bring in other industries,” ended Vosburg.

Article source: http://www.yourcentralvalley.com/news/part-one-coalinga-commercial-real-estate-booms-because-of-medical-marijuana/665760684

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49ers quarterback Colin Kaepernick gets his price and more in Bay Area home sale

Pofessional football quarterback Colin Kaepernick, who is expected to opt out of his contract with the San Francisco 49ers next month, has sold his home in San Jose for $3.075 million, or $180,000 over the asking price.

Shanahan: 49ers view Kaepernick like other free-agent QBs

The roughly 4,600-square-foot house, built in 1999, was updated extensively and remodeled during the signal caller’s ownership. Among details of note are custom front doors, a wall aquarium in the foyer and a second-story sitting area with a glass-bottom floor.

A living room with a fireplace, a chef’s kitchen, an office/den, four bedrooms and 5.5 bathrooms round out the living spaces. There’s also a paneled lounge/game room featuring a leather-wrapped bar.

Outside, fences surround a covered pavilion and a swimming pool with a spa. Views take in the city lights, valley and surrounding mountains.

See Kaepernick’s home here

Kaepernick, through a family trust, bought the house three years ago for $2.7 million, records show. Mike Strouf of Intero Real Estate Services was the listing agent. Alvin Motley, also with Intero, represented the buyer.

The 29-year-old Kaepernick was a second-round pick of the 49ers in 2011 and has started 58 games in six seasons with the team. He finished last season with 2,241 yards passing and 16 touchdowns across a dozen games.

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Coach Kyle Shanahan: No QBs on 49ers’ roster

Kyle Shanahan spoke at the NFL combine on Wednesday, March 1, 2017. Colin Kaepernick is expected to opt out of his 49ers contract, perhaps Thursday. That would put him in a position to be a free agent for the first time when the new NFL year begins March 9. It also would leave coach Kyle Shanahan with no quarterbacks signed for the 2017 season.

mbarrows@sacbee.com

 

 

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Colin Kaepernick clarifies remarks on Fidel Castro, Malcolm X

San Francisco 49ers quarterback Colin Kaepernick was asked to clarify his thoughts on Fidel Castro after the game against the Miami Dolphins. Ndamukong Suh tackled Kaepernick 2 yards short of the goal line as time ran out, as the Miami Dolphins handed the San Francisco 49ers a franchise-record 10th consecutive loss with a 31-24 victory on Sunday, Nov. 27, 2016.

Matt Barrows
The Sacramento Bee

 

Article source: http://www.sacbee.com/sports/nfl/san-francisco-49ers/article135937658.html

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Bay Area home sales lose steam, but prices climb — a little

Bay Area home sales continued to lose steam in January, but the median price of a single-family house once again rose modestly on a year-over-year basis as buyers competed for a shrinking supply of homes.

The median price of a Bay Area home in January was $645,000, up 3.8 percent from January 2016. That’s a far cry from the double-digit appreciation that was once de rigueur for the nine-county region. Still, discounting a single month — March 2016, when the median price stayed absolutely flat — January was the 58th consecutive month that saw a year-over-year increase in the median price.

“Price appreciation has gradually ratcheted down,” said Andrew LePage, research analyst for the CoreLogic real estate information service, which crunched the January numbers.

As causes of the slowing market, he pointed to “thin inventory” — the chronically few home listings — and buyers’ concerns about prices having soared beyond their reach in recent years. Factor in the rising mortgage rates of the past three months, which can add several hundred dollars to a monthly payment, and the current market can be nerve-wracking for potential buyers.

“I’ve been praying high and low,” said Demi Marquez, who with her husband Roy hopes to move from their Walnut Creek condominium — purchased about 15 years ago for $305,000 — to a $998,000 single-family home, also in Walnut Creek.

Preparing to make their formal bid this week, she said, they face tough competition from other interested buyers for the three-bedroom, 1,700-square-foot house — which is 51 years old, though freshly renovated, and just big enough for eight-year-old son Mason to finally get a dog. Yet even with Roy’s salary as a controller for a firm in San Francisco, Demi said, “We are struggling, trying to buy this place. Walnut Creek has become untouchable.”

Region-wide, sales were sluggish, up just 1.4 percent from the year before — slow even for January, typically a slow sales month.

In fact, 37 percent of January sales were concentrated in three of the Bay Area’s most affordable counties: Contra Costa (where the median price was $500,000), Napa ($608,796) and Solano ($359,550). The sales volume was up 14.7 percent in Solano County, the heftiest increase in the region, while prices appreciated most dramatically in Napa County, up 20.6 percent from a year earlier.

“The more affordable the market, the more likely you’re going to see year-over-year gains in sales,” LePage said.

In the heart of Silicon Valley, sales dipped 9.3 percent in San Mateo County, while the median price rose 7.7 percent year-over-year to $1,050,000. Sales fell 2.5 percent in Santa Clara County, where the median rose just 2.4 percent to $850,000.

Speaking Monday, Sereno Group agent Kevin Swartz said, “There’s only 659 homes that went on the market in February in all of Santa Clara County. And when we look back at the year prior, there were 1,105 active listings in February 2016 — and 1,057 in February 2015. So we’re at half the inventory that we’re used to seeing, and that is a significant change.”

Across the bay in Alameda County, January sales rose 3.7 percent from a year earlier and the median price inched up 2.7 percent to $667,500. In Contra Costa County — generally more affordable, despite exclusive pockets like Walnut Creek — sales rose 4.3 percent and the median climbed 11.2 percent to $500,000.

Kevin Kieffer, a Keller Williams agent based in Walnut Creek, said the spring market “should be accelerating by now, but I haven’t seen an acceleration.”

He has noticed that many buyers who move up to costlier houses are choosing not to sell their old homes: “If you have a $600,000 home and you’re going to move up to a million-dollar home, you’ll keep the old place and rent it for $3,300 a month. Plus, you’ll get the depreciation (on taxes). A lot of folks like that, and that’s one of the reasons you’re not seeing too many houses coming to market.”

Kieffer, who represents the Marquez family, recently analyzed prices in a one-mile-radius area of Walnut Creek and was surprised to find only 13 homes had sold there since mid-March 2016. “In past years, I’d expect to see 40-50 sales through that area” in the same time period.

Given the slim pickings, he said, some “buyers have lowered their standards in terms of saying, `Hey, I think we better get a fixer-upper.’ You just can’t be as choosy anymore.”

Swartz, the Sereno Group agent, observed a different behavior set: “Buyers know inventory is low, but they also know that prices don’t seem to be going up as they had been. So they’re really patient, really picky.”

He described a recent open house for a 2,000-square-foot Eichler home that listed for $1,748,000 on a busy street in Sunnyvale.

“It was the first week in January and there was nothing out there — inventory was so low,” he said. “And we had 100, maybe 120, groups come through the open house and there was lots of interest — but there were only two offers. And one offer was right around asking” — the listing price — “and the other was all-cash for $1,855,000. It was from someone who was moving over from China, where they had a business, and they were expanding into Silicon Valley.”

The all-cash bid won.

This is the kind of story that makes Mark Vandevoorde nervous.

A software engineer, he rents in Sunnyvale, and his non-renewable lease is up in August. He wants to buy a house, and would like to be under contract by early June.

Vandevoorde loves Eichlers, those retro-cool, mid-century homes with open floor plans and loads of floor-to-ceiling windows. But since getting serious about his house search in the fall, he hasn’t had any luck: “I’ve bid three times and every time I’ve come in second,” he said with a rueful chuckle.

One of his bids was on a five-bedroom Eichler that listed for about $2.5 million in Los Altos: “One of those huge A-frames with an atrium. It was like a museum. It was a well-kept antique — except for the yard around the pool. The decking there, it was a disaster,” he said.

“I bid around $2.75 million and it went for about $50,000 more than that,” Vandevoorde said.

“I’m a little apprehensive, I have to say,” he confessed, now that spring is almost here. “As that June deadline approaches, I’m going to start bidding on conventional houses, not just Eichlers. Because I’ve got to have something.”

Article source: http://www.mercurynews.com/2017/02/28/bay-area-real-estate-homes-sales-drop-prices-rise-modestly/

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Bay Area real estate: Homes sales lose steam, but prices climb — a …

Bay Area home sales continued to lose steam in January, but the median price of a single-family house once again rose modestly on a year-over-year basis as buyers competed for a shrinking supply of homes.

The median price of a Bay Area home in January was $645,000, up 3.8 percent from January 2016. That’s a far cry from the double-digit appreciation that was once de rigueur for the nine-county region. Still, discounting a single month — March 2016, when the median price stayed absolutely flat — January was the 58th consecutive month that saw a year-over-year increase in the median price.

“Price appreciation has gradually ratcheted down,” said Andrew LePage, research analyst for the CoreLogic real estate information service, which crunched the January numbers.

As causes of the slowing market, he pointed to “thin inventory” — the chronically few home listings — and buyers’ concerns about prices having soared beyond their reach in recent years. Factor in the rising mortgage rates of the past three months, which can add several hundred dollars to a monthly payment, and the current market can be nerve-wracking for potential buyers.

“I’ve been praying high and low,” said Demi Marquez, who with her husband Roy hopes to move from their Walnut Creek condominium — purchased about 15 years ago for $305,000 — to a $998,000 single-family home, also in Walnut Creek.

Preparing to make their formal bid this week, she said, they face tough competition from other interested buyers for the three-bedroom, 1,700-square-foot house — which is 51 years old, though freshly renovated, and just big enough for eight-year-old son Mason to finally get a dog. Yet even with Roy’s salary as a controller for a firm in San Francisco, Demi said, “We are struggling, trying to buy this place. Walnut Creek has become untouchable.”

Region-wide, sales were sluggish, up just 1.4 percent from the year before — slow even for January, typically a slow sales month.

In fact, 37 percent of January sales were concentrated in three of the Bay Area’s most affordable counties: Contra Costa (where the median price was $500,000), Napa ($608,796) and Solano ($359,550). The sales volume was up 14.7 percent in Solano County, the heftiest increase in the region, while prices appreciated most dramatically in Napa County, up 20.6 percent from a year earlier.

“The more affordable the market, the more likely you’re going to see year-over-year gains in sales,” LePage said.

In the heart of Silicon Valley, sales dipped 9.3 percent in San Mateo County, while the median price rose 7.7 percent year-over-year to $1,050,000. Sales fell 2.5 percent in Santa Clara County, where the median rose just 2.4 percent to $850,000.

Speaking Monday, Sereno Group agent Kevin Swartz said, “There’s only 659 homes that went on the market in February in all of Santa Clara County. And when we look back at the year prior, there were 1,105 active listings in February 2016 — and 1,057 in February 2015. So we’re at half the inventory that we’re used to seeing, and that is a significant change.”

Across the bay in Alameda County, January sales rose 3.7 percent from a year earlier and the median price inched up 2.7 percent to $667,500. In Contra Costa County — generally more affordable, despite exclusive pockets like Walnut Creek — sales rose 4.3 percent and the median climbed 11.2 percent to $500,000.

Kevin Kieffer, a Keller Williams agent based in Walnut Creek, said the spring market “should be accelerating by now, but I haven’t seen an acceleration.”

He has noticed that many buyers who move up to costlier houses are choosing not to sell their old homes: “If you have a $600,000 home and you’re going to move up to a million-dollar home, you’ll keep the old place and rent it for $3,300 a month. Plus, you’ll get the depreciation (on taxes). A lot of folks like that, and that’s one of the reasons you’re not seeing too many houses coming to market.”

Kieffer, who represents the Marquez family, recently analyzed prices in a one-mile-radius area of Walnut Creek and was surprised to find only 13 homes had sold there since mid-March 2016. “In past years, I’d expect to see 40-50 sales through that area” in the same time period.

Given the slim pickings, he said, some “buyers have lowered their standards in terms of saying, `Hey, I think we better get a fixer-upper.’ You just can’t be as choosy anymore.”

Swartz, the Sereno Group agent, observed a different behavior set: “Buyers know inventory is low, but they also know that prices don’t seem to be going up as they had been. So they’re really patient, really picky.”

He described a recent open house for a 2,000-square-foot Eichler home that listed for $1,748,000 on a busy street in Sunnyvale.

“It was the first week in January and there was nothing out there — inventory was so low,” he said. “And we had 100, maybe 120, groups come through the open house and there was lots of interest — but there were only two offers. And one offer was right around asking” — the listing price — “and the other was all-cash for $1,855,000. It was from someone who was moving over from China, where they had a business, and they were expanding into Silicon Valley.”

The all-cash bid won.

This is the kind of story that makes Mark Vandevoorde nervous.

A software engineer, he rents in Sunnyvale, and his non-renewable lease is up in August. He wants to buy a house, and would like to be under contract by early June.

Vandevoorde loves Eichlers, those retro-cool, mid-century homes with open floor plans and loads of floor-to-ceiling windows. But since getting serious about his house search in the fall, he hasn’t had any luck: “I’ve bid three times and every time I’ve come in second,” he said with a rueful chuckle.

One of his bids was on a five-bedroom Eichler that listed for about $2.5 million in Los Altos: “One of those huge A-frames with an atrium. It was like a museum. It was a well-kept antique — except for the yard around the pool. The decking there, it was a disaster,” he said.

“I bid around $2.75 million and it went for about $50,000 more than that,” Vandevoorde said.

“I’m a little apprehensive, I have to say,” he confessed, now that spring is almost here. “As that June deadline approaches, I’m going to start bidding on conventional houses, not just Eichlers. Because I’ve got to have something.”

Article source: http://www.mercurynews.com/2017/02/28/bay-area-real-estate-homes-sales-drop-prices-rise-modestly/

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Case by case, legal aid attorneys battle displacement in the Bay Area

 

Though we’re all understandably consumed by the news at the national level, the last election also came with consequences for the Bay Area locally—especially for the region’s ongoing housing crisis.

On local ballots last November, a lot of cities pushed for new laws to protect tenants against the rising tide of expensive rent and displacement. Some cities adopted rent control and fair eviction ordinances for the first time; others saw similar measures defeated.

But tenant protection rules are only as strong as their enforcement. That’s why courthouses are often the frontlines in the battle between property rights and housing rights.

Head to the Hayward Courthouse on any Wednesday and you’ll see the fight get personal. This is where renters from all of Alameda County come with their hopes of beating an eviction. This week, there are 48 cases, all heard on the same day.

The hallway is packed and tense with anticipation. Lawyers haggle with each other, defendants look through worn folders of paper.

 

Tenant Vanessa Bulnes stands elegantly in black, cooling herself with a painted fan. She’s from the South, but has lived in Oakland for the last 30 years. She and her husband owned their own home for 20 of those years, until the foreclosure crisis. For the last four years they’ve rented a house that Bulnes operated her child care business out of. But then she discovered there was lead in the soil where the kids played. So she lost her child care license.

“The agency refused to renew my contract which meant I lost my income. So, of course, if I don’t have income I can’t pay my rent and the next thing is eviction. So here we are today in eviction court,” Bulnes says.

Bulnes hopes she can get the judge to give her some leeway by arguing that the property owner should have cleaned up the lead instead of ignoring her for almost three years.

 

A lot of evictions are like this, not black and white, both parties having breached the lease in some way. Bulnes says her property manager was in charge of 1,800 other units.

“It’s a corporation that I feel is out of touch with the communities,” says Bulnes, “They see us as dollar signs so when situations like this arise, we’re at their mercy.”

Tenants like Bulnes can feel helpless, but in Oakland and some other cities there are protections in place for renters. For example, rules about what constitutes “just cause” for eviction. Plenty of tenants don’t know the rules and just leave when they get the notice to evict.

Bulnes is fighting it in court, though, because she has a “low bono” attorney defending her. Lots of places are boosting their legal aid funding as displacement gets worse. San Francisco, for example, doubled it’s eviction defense budget last year. Today there are a handful of these low bono lawyers here at the courthouse helping tenants navigate the law, working case after case. Tenants’ rights advocates might say it’s God’s work. But not everyone would agree.

 

Exploiting the court system?

 

Property manager Jonathan Flemming manages 200 units, all mom and pop landlords, a lot of local Oaklanders like him.

“You could come in here today and say, ‘Hey, I didn’t pay my rent because a dinosaur come through and destroyed the property’ and somebody would help you in here to stall it out, and make it so you didn’t have to pay the landlord.”

 

He thinks some tenants exploit the court system to dodge lawful evictions. As in: find any little thing you can use against your landlord in court.

Flemming calls it the world of blackmail. “You have a lot of people saying, ‘The tenant said that he saw something.’—maybe the windows leak, or the fridge light is out— ‘so he shouldn’t have to pay his rent for the last 6 months’.”

Flemming says that’s what lawyers are here for, to find “slick loopholes to help out people that don’t need that help.”

 

If Flemming’s landlords don’t get their rent when they need it, they go to foreclosure, he points out. “Owning real estate is not a welfare business.”

It’s not. And, if you’re a landlord that treats it like it is—if you put other people’s needs over your own profit—your business will fail. Over the years as a property manager, Flemming says he’s lost 3 or 4 buildings this way. On the other hand—when I ask how many total evictions he’s done, he says too many to count.

No contest when it comes to stakes

Down the hall, I meet legal aid attorney Joe Colangelo. He admits he doesn’t enjoy going up against mom and pop landlords.

Colangelo says he’s had landlords who, for example, “cry, literally beg with me, and tell me they got a mortgage to pay and they took it over from their parent who passed away and they don’t want to lose it.”

Even so, there’s no contest in his mind, when it comes to stakes. He says landlords are entitled to fight for their business and poor people are entitled to fight for their homes.

“The consequences for them is not the numbers adding up for the month in terms of what they got from their properties, it’s where are they going to go after this,” says Colangelo. “Ultimately I’m dealing with someone who’s telling me they have no place to go and if they’re forced to move in two weeks or a month they’re going to be homeless.”

Mom and pop landlords are out there. But, the reality is, the majority of owners that Colangelo faces are corporations. Investment companies bought up huge swaths of low rent housing in the East Bay after the foreclosure crisis. And they tend to evict more often than mom and pops.

Colangelo says that even with increased help from lawyers like him, corporate real estate is winning the fight against poor people in the Bay Area.

 

“The problem is big and it’s growing,” he says, “We are turning people away that need help and it’s only because we’re limited by the resources we have.”

Evictions on the rise

Colangelo works for the Eviction Defense Center in Oakland—their clients are all low income, and they’re 85-90% Black and Latino. His clients, like all people in the area who aren’t rich, often leave their city after an eviction, because if you can barely afford the spot you locked down ten years ago, or even one year ago, you definitely can’t afford the prices on the market right now.

Colangelo believes that without organizations like his, “it would be a stampede of people of color leaving and we’re all that stands in the way.”

Eviction is not a new phenomenon. But now that the Bay Area real estate market is so hot, it’s happening a lot more in some neighborhoods. In cities with rent control, owners aren’t allowed to hike rents much on current tenants, but if they get a vacancy they can charge the next person as much as they’ll pay. So there’s a big cash reward if you can find a way to evict.

“Every prop manager is looking at their properties and thinking ‘Everything around me is going up, the place next to me was renting for a thousand and now it’s renting for two thousand, [so] I’m stuck with this tenant who’s locked in at a lower deal,’” says Colangelo. “So I’m finding that they’re less likely to forgive minor breaches or they’re looking for ways to just free up their units any way they can.”

But some of the tactics owners use to do this are less legal than others. Some real estate companies have built their business models on buying buildings and finding savvy ways to evict.

One way they do it is by exploiting the loopholes in the law that allow for no-fault evictions, such as the Ellis Act, which is supposed to be for owners who want to sell their building and get out of the rental business. Colangelo says another loophole is showing signs of being exploited: the Owner Move-In Rule. It’s supposed to let owners or their family members move into the unit themselves, but it’s exploited when another landlord takes over ownership rather than an owner-occupier.

“This specific loophole to evict someone when they’ve been doing everything right, they’ve been paying their rent and abiding by the rules,” says Colangelo, “they used to never see and now you’re seeing it four or five times a month in these different cities.”

People and companies get away with exploiting eviction loopholes because rules that restrict landlords are like speed limits. There’s nothing really stopping people but the fear of getting caught in court. So, funding legal aid is like putting more cops on the highway to enforce the laws.

There are ways to strengthen tenant protection laws at the state level that some advocates argue would stem the need for legal defense. But for the time being, the battles happen in the courthouse, eviction case by eviction case.

This story is part of KALW’s series about preserving the Bay Area’s affordable housing. Much of the housing debate focuses on new developments. But what can be done to help people who already live here? The series explores some possible answers.

Article source: http://kalw.org/post/case-case-legal-aid-attorneys-battle-displacement-bay-area

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