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					      A Closer Look:
         The Sociocultural Legacy
of Economic Disinvestment in Richmond, CA*
                     D


  *In other words: “What the heck went wrong with Richmond?”
            Further The Work:
              Why We Exist
•   “Tikkun olam”:
•   A Hebrew phrase meaning “to restore the world,”
•   tikkun olam carries within it the conviction
•   that each of us – every single human being, everywhere –
•   has both the opportunity and the obligation
•   to help restore the world.

                   At Further The Work,
         we hold this belief at the core of our being.
           Further The Work:
           What We Believe
•   We believe that maintaining the status quo isn‟t good enough - not in
    a world in which suffering born of inequity is part of that status quo.

•   We believe that there is no excuse to squander resources, whether of
    time, of attention, of wealth, or of expertise.

•   We believe that for-profit organizations have an ethical obligation -
    and a practical opportunity - to contribute to the greater good, rather
    than just recirculate wealth among the traditional beneficiaries of that
    wealth.

•   We believe in using excellence as a tool to promote social equity,
    bringing for-profit, market-competitive standards to our work in the
    nonprofit world.
We advocate a comprehensive
approach to community change:
-   Intentionally aligned
-   Multi-sector
-   Place-based
-   Born of coordinated planning
-   And emphasizing integrated
    implementation
                 ....or, “It takes a village.”
              A Closer Look:
        The Sociocultural Legacy
of Economic Disinvestment in Richmond, CA

   • “Those who do not remember the past
     are condemned to repeat it.”
                           - George Santayana, Life of Reason
Where, exactly, is
  Richmond?
       Richmond
 hugs the western edge
of Contra Costa County,
in San Francisco‟s East
          Bay.



  Richmond‟s access
        to multiple
  waterways, and its
  direct connection to
     the continental
   landmass (unlike
    SF), have been
  critical to its history.


  [Note the town of Milpitas.
  We‟ll come back to it later.]
                                     Richmond:
                                                                         Since the 1950s,
                     30 square miles of land and 32 miles of shoreline     a great deal of
                                                                           land has been
                                                                             annexed to
                                                                         Richmond, giving
North Richmond                                                           rise to suburban-
       is an                                                               style bedroom
 unincorporated                                                          communities (and
    area under                                                             even a country
      County                                                                    club).
jurisdiction. With
  a population                                                              In the ‟70s,
under 4,000, it is                                                          Hilltop Mall
 now an area of                                                             opens, five
  concentrated                                                              miles from
   poverty and                                                              downtown.
     violence.
                                                                          The Iron Triangle
                                                                            is the historic
                                                                                heart of
                                                                              Richmond,
                                                                            named for the
                                                                            three railway
                                                                         lines that mark its
                                                                          boundaries. With
                                                                           a population of
                                                                         about 15,000, it is
                                                                           now an area of
                                                                            concentrated
                                                                             poverty and
                                                                               violence.
                An Extraordinary Confluence:
            Four Forces Shaping Richmond, 1900-1950
1.   Natural Assets:
     •   Cheap and readily available unimproved land carried over from 19th-century
         landgrants
     •   Calm bay inlets easily connecting to open ocean
2.   Infrastructure Development:
     •   Coast-to-coast railway connection, with railway terminus within the city (1900)
     •   Ferry system from Richmond to Alameda, San Francisco (1900)
     •   Dredged port and customized landfill (1910-1920)
3.   Financial and Economic Demand and Capital:
     •   Local, risk-tolerant businessmen with access to capital (1900-1940)
     •   War-fueled escalation of demand, with focus on efficiency and productivity (1940-
         1945)
4.   Social Mobility:
     •   In-migration from the American South following Reconstruction (1920s and later)
     •   In-migration from the American Midwest following the Dust Bowl (1930s)
•   1892: The Giant Powder Company opens on the northern shore, creating the small company
         Not a Bubble: A Boom (1900-1950)
    town called Giant. Later, the 2,500 acres will be annexed to Richmond, becoming Point
    Pinole Regional Shoreline.
•   1900: Augustin Macdonald persuades Santa Fe Railway to establish a terminus in Richmond
    with a ferry to San Francisco, completing the transcontinental railway, with ferry service to
    San Francisco. Later, Pullman Company will build sleeper cars and employ African American
    men as porters.
•   1901: Standard Oil Corporation (now Chevron) establishes operations in Richmond. In the
    1950s and ‟60s, 1000s of acres of Chevron‟s “tank farms” will be sold to Richmond &
    developers for residential homes.
•   1907: Mechanics Bank is established to serve railway workers, who are called “mechanics.”
    Later, while still based in Richmond, it expands to serve the larger region.
•   1912: San Pablo Bay is dredged to allow deep water shipping. The dredged silt is in turn
    used to build a bay-side landmass, on which the Ford Assembly plant will be built.
•   1915: The Panama Canal opens. Richmond becomes a major Pacific mercantile port.
•   1931: Ford Assembly Plant opens, after Fred Parr assumes all costs of building the plant on
    spec to Ford. Grows to employ over 2,000 people.
•   1939: Henry Kaiser opens the Kaiser Shipyard, which soon becomes a leading military
    supplier.
    •   1940: Kaiser Medical is formed to provide medical care to employees.
    •   1941-1945: Kaiser builds tens of thousands of units of housing for Kaiser employees.
    •   1941-1945: Daycare facilities for Kaiser families are opened in response to the female
        workforce.
                 A Rising Tide:
Heavy Industry Leads to Housing Construction....
  “[During the war,] Kaiser was early in requesting that the Maritime Commission
                              help address the housing shortage in Richmond....

     The Maritime Commission made several addenda to the [Kaiser contract] in
                 order to build housing, schools, and other community facilities.

      The first, awarded 10 September 1942, was to build 6,000 units of housing
          [900 two-bedroom, 4,000 one-bedroom, and 1,100 single-room] and a
                                                                      school....

  The next addendum, dated 17 December 1942, was for another 6,000 units of
                                                                  housing.

         A third awarded in 1943...called for 4,000 more units of housing, 4,000
   dormitory rooms, schools and nurseries, a market, hospital, and a community
                                                                        center.”



                                           Historic American Engineering Record, prepared for The National Park Service,
                    Rosie the Riveter/World War 11 Home Front National Historical Park, Frederick L. Quivak, 2004, p. 206
        Kaiser Shipyard, circa 1942




During WWII, 767 Liberty Ships were built at the Kaiser shipyards.
       Scale and Productivity:
   Day 3 in Building a Liberty Ship,
       Kaiser Shipyard, 1942

Richmond‟s shipyards led the nation in
number and speed in the production of
              Liberty ships.
It took an average of about 17 days to
  build a Liberty Ship in Richmond; its
          record was five days.
     Shift Change:
 Kaiser Shipyard, 1942

The shipyard ran 24 hours a day, 7 days a week, for five years.
           Skilled Trade Managers at the
                       Shipyards
                    Shipyard #4, August 1944

Buford Payne, 4-Yard Bond Coordinator; Fred Alexander, Pipe Welding Superintendent; Wm. Pierce, Masterpiperfitter; R. Tracy, Asst.
   Master Welder; Chas. Bradford, Burner Superintendent; Fred Hamby, Master Riveter; Ernie Rossi, Ass't O.F.D. Hull Supt; Vince
  Millicich, Master Shipfitter; Ed. O'Gaffney, Hydrostatic Tests; J. W. Beidler, Master Welder; Harry Feldhahn, Plant Maintenance
 Superintendent; Ray Hamilton, Fabrication Superintendent; Earl Stiles, Safety Superintendent; Ivan Duncan, Master Shipwright; A.
 Underkoffler, Hull Superintendent; Helmer Ingebrigtsen, Chief Trial Engineer; Art Mori, Master Loftsman; H. McDonald, Machinist
  Superintendent; Harry Tipps, Equipment Superintendent; 0. K. Outman, Sheetmetal Superintendent; M. T. Melvin, Ass't Outfitting
      Superintendent; J. A. Cbokae, Machine Shop Superintendent W. W. Cooper, Master Boilermaker.R Feenstra, Chief Clerk;
              Jack Stoddard, Bond Manager; K. L Sage, Outfitting Superintendent; R. Johnson, I. B. M. Dept Yard Two;
 G. Devereaux. 4-Yard Bond Accountant; J. C. Konrad, General Superintendent; C. P. Bedford, General Manager Richmond Shpyds;
        M. G. Vanderwende, Executive Ass't; J. A. Sullivan, Warehouse Superintendent; W. F. Tustin, Labor Superintendent;
                T. C. Goff, Ironworker Superintendent; R. L. Davis, Stage Rigger; C. A. Walker, Yard Superintendent.
Hard to Imagine, But Archives Tell Us....
                                       In early 1943,
                                         there were
                                       85,100 people
                                        employed in
                                       the Richmond
                                           Kaiser
                                         shipyards.
       Maybe It Hadn‟t Been a Bubble...
But There Was a Bust, Nonetheless (1945-2000)
•   1946: Post-war conversion of industrial manufacturing centralizes in the
    midwest, with its ready nation-wide distribution capacities. Out-
    migration from Richmond begins, as skilled laborers with transferrable,
    portable skills move east to pursue the post-war boom.
•   1947: Kaiser shipyard closes down. Thousands of units of substandard
    housing remain in downtown Richmond.
•   1953-1957: Richmond annexes substantial amounts of outlying land,
    expanding city boundaries and creating a “suburban” ring. Bedroom
    communities develop, pulling many middle-class people away from
    downtown and attracting commuters from other areas.
•   1955: To accommodate increased market demand for cars, the
    Richmond Ford Assembly plant closes, and a larger plant opens in
    Milpitas.
•   1968: Racial unrest flares across the country; there are riots in
    downtown Richmond, which by now is almost entirely African
    American.
•   1976: Richmond‟s Hilltop Mall opens, 5 miles north of downtown,
    serving the annexed “suburban” neighborhoods. It is a death blow for
    Macdonald Avenue, Richmond‟s longtime Main Street.
                          Richmond‟s Population
                                                             1900-2010




1899: Railway   1901: Standard                        1939: Kaiser
                                                                1953-1957:                              1990 and         2000-2005:
                             1912-1917:     1931: Ford                       1955: Ford 1976: Hilltop   onwards:         Richmond endures
 erminus and    Oil                                   Shipyard The City
                             Harbor dredged Plant opens                      Plant closes Mall opens    Immigration from a staggering
 erry                                                 opens     annexes land
                                                                                                        Mexico and       municipal fiscal
                                                                                                        Central America crisis, running a
                                                                                                        increases.       30% deficit in 2003-
                                                                                                                         2004.
Mapping Industrial Population
          Patterns
    • “[O]ut-migration and population loss
n and Population Loss:A Fateful Combination in
      (OPL) is detrimental to a
      region...because the migration process
      selectively removes the „best and
      brightest,‟ damaging the region‟s
      endowment of human capital and
      therefore its competitiveness.”



                                     •      “Out-migration, Population Decline, and Regional Economic Distress”, 1/99, by

       •   Edward J. Feser and Stuart H. Sweeney, Department of City and Regional Planning, University of North Carolina
                                                                                                             Chapel Hill

                       •      Funded by the Economic Development Administration, U.S. Department of Commerce, p. 53
       Profound Cultural Shift
During Out-Migration and In-Migration
 • “[S]evere boom-bust the Lag Effect
Local Governments and
                        cycles
   accompanied by particularly rapid
Of Out-Migration and Population Loss
   population adjustments
 • can damage the fiscal position
 • of local governments
 • as maintenance of infrastructure
   and services expanded during a
   boom must be financed
 • by dwindling populations with
   fewer financial resources following
   a bust.”
      Deficit Spending: A Powerful
•   A case study of industrial communities
               Intervention
    in Wyoming and Illinois/Indiana makes
       During Out-Migration Busts
    the following observation:


• “[B]oth regions faced a crisis not unlike
    a natural disaster that required deficit
    spending by local governments
    struggling to maintain underutilized
    infrastructure and possibly overutilized
    services (e.g., public assistance,
    counseling, and law enforcement).”
                              What It Takes:
          Aggregated Expertise and Shared
1.                                     Goals
     Intellectual leadership, vision, and advocacy “owned” by a community
     revitalization “hub”
     •   To spur wholesale community economic and social development
     •   To advise, advocate, agitate, educate, and hold accountable
     •   To identify and pursue external opportunities that would serve the City (Choice, Promise, Sustainable
         Communities, Proposition 84, private funders)

2. Municipal leadership
     •   Able and determined to promote broadscale partnership and longterm investment
     •   Willing to invest substantial local dollars and to identify and leverage external dollars

3. Business leadership that goes beyond “business mixers” and simplistic questions like, Business
     taxes: good or bad?

4. Philanthropic leadership
     •   To cultivate comprehensive, localized knowledge to inform their investments (rather than depending
         on the “parts of the elephant” view that scarcity-model nonprofits are likely to offer)
     •   Willing to commit to longterm goals enacted by partnerships, to raise the tide

5. Capacity-building resources (and expectations) for nonprofits to counteract the “nonprofit
     starvation cycle”

6. Public systems (schools, health) committed to multi-sector pilot programs with tracked and
     targeted outcomes, not anecdotes
    • when all I want to do is prevent it.
We Need More Than a Faster Horse
    • Better yet, build it.

    • Predicting the future is much too easy,
      anyway.
    • You look at the people around you,
    • the street you stand on, the visible air
      you breathe,
    • and predict more of the same.
           To hell with more. I want better.
                                        ~ Ray Bradbury, “Beyond 1984: The People Machines,”
                                in Cities: The Forces That Shape Them, Lisa Taylor, ed., 1982

				
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