Efforts by San Francisco city officials to obtain an exemption from the California Environmental Quality Act may have hit a roadblock – environmental groups claim that exempting the city would open a "floodgate" for construction projects that are not environmentally friendly.
CEQA, which has been on the books since 1969, requires construction projects to obtain an environmental impact report before work begins. Getting the green light for a construction project can be a lengthy process.
In February, Oracle CEO Larry Ellison won America's Cup, an international sailing regatta. As the winner, Mr. Ellison is able to choose where to have the next cup. He has voiced support for having San Francisco host the races. However, Mr. Ellison's team wants a guarantee from San Francisco that the city will have the facilities for teams to train in time for the next cup in 2012 or 2014. Currently, construction has been delayed on Piers 30 and 32. To speed up the construction process, San Francisco is seeking legislation to exempt the city from CEQA.
San Francisco Mayor Gavin Newsom said, "Without this legislative action, it is likely that San Francisco will not be selected and the regatta will be held overseas."
Environmental groups have lined up to oppose the city's attempt to obtain an exemption. Tina Andolina, a lobbyist for the Planning and Conservation League, told the San Francisco Chronicle: "We are not going to sit by idly and let that happen." Ms. Andolina criticized a CEQA exemption received last year for a project in the City of Industry, saying: "The floodgates are open. They made the decision to grant an exemption to the City of Industry and got nothing for it other than a bunch of other billionaires coming to the capital saying they want one, too."
The Sierra Club and Save the Bay also are opposed to the exemption.
The host city of this year's America's Cup, Valencia, Spain, has suggested that it would like to host the next cup, too, and already has offered an incentive to race organizers. Rome also has weighed in, offering a rumored $645 million to host the next cup at an Italian port.
If hosted in San Francisco, the yacht races would generate
an estimated $1.4 billion in economic stimulus for the Bay Area, and would
create almost 9,000 jobs. (Source: San
Francisco Chronicle, August 18.) (CalTax: Another
issue that may impact the decision on where to host the race was reported in
the March 1 Cal-Tax Reports. The
Board of Equalization ruled that a pricy vessel purchased by Team Dennis Conner
Corporation was purchased for use in California, and is subject to California's
use tax, even though it was raced in Spain and never sailed in California
waters.)
Cal-TaxReports, August 23, 2010
© 2010 California Taxpayers'
Association.
All Rights Reserved.