A new development project promising to bring thousands of new homes including for seniors, shops, restaurants, hotel rooms and open space to Santa Ana across from South Coast Plaza is sparking a new debate in the heart of the county:
Should developers be required to hire local unionized workers for every project?
Developers say the project – which proposes to convert the Metro Town Square into a mixed use development – will be the largest private investment in the city, bring in close to $11 million in tax revenue annually and create almost 6,000 construction jobs.
Key potential revenue in a city where officials earlier warned earlier this year that they’re projecting to lose $30 million in annual sales tax revenue in the next five years – with the expected decrease of Measure X, a 1.5% sales tax increase approved in 2018.
[Read: Santa Ana Leaders Warn Looming Sales Tax Cliff Could Tear Up Public Services]
Local labor groups say they haven’t reached an agreement with Related California – the developer, which is proposing to pay the city a $22 million community benefit payment and up to $18 million for affordable housing.
Pat Strader, a consultant for Related California, said at the meeting that they have been in constant communication with representatives from the LA/OC Building Trades union and the city already has a community workforce agreement – something Councilman David Penaloza publicly said wouldn’t apply at a meeting last month.
In a report attached to the agenda, staff said the city’s community workforce agreement would apply to public infrastructure work like storm drain line extensions and sewer extensions which the developer is expected to pay a proportionate share of the costs but won’t apply to other parts of the project.
The improvements are estimated to be $80 million.
Last month, a delay in a deal derailed consideration of the project until tonight.
Santa Ana officials decided to continue a public hearing on the project, dubbed Related Bristol, after union representatives called on officials to delay the vote until the developer could reach an agreement with the LA/OC Building Trades Union council.
Councilman Johnathan Hernandez, who is up for reelection, said that Santa Ana is proud to be a union city and that there needs to be a community labor workforce agreement between Related California and local labor unions.
“Without that agreement, we can not assure that Santa Ana residents will have priority when it comes to the jobs that will be created throughout the construction of this project,” he said at the Sept. 17 city council meeting.
“This project should move forward but not without every trade at the table.”
Councilman Phil Bacerra said the project, which is located in the ward he represents, is going to be a game changer for the city but it will also have impacts on traffic.
“If I’m going to sit here and say that’s ok that there is going to be more traffic I do want to know that part of that traffic is going to be folks from the various trades coming into Ward 4 to build that project,” he said at the Sept. 17 meeting.
At the meeting, officials also said they had more questions regarding the project for the developer before they wanted to move forward with a vote.
Adam Wood, Vice President of the Building Industry Association of Southern California OC chapter, did not respond to a request for comment Monday.
Now, officials will once again consider the project which is expected to create 3,750 new homes at their 5:30 p.m. city council meeting tonight which can be attended in person or streamed live on YouTube.
The delay in the vote came after representatives from unions like the International Brotherhood of Electrical Workers Local 441 raised concerns that developers have not reached an agreement with the LA/OC Building Trades Union.
“We are disappointed that this project is moving forward without an agreement with the LA and Orange County Building Trades,” said Doug Mangione, political director for International Brotherhood of Electrical Workers Local 441, at the Sept. 17 meeting.
“Without a pre-hire agreement you cannot guarantee local resident and veteran that we do with the building trades agreement. These agreements are not new, they’re tried and true.”
Others like tenants at the current site Metro Town Square, the OC Business Council and union hotel workers spoke in favor of the project arguing it would bring in money to the city – where officials are expecting a revenue shortfall in a few years.
Jeff Ball, President and CEO of the OC Business Council, said the project will bring significant economic benefits to Santa Ana and the region.
“This development exemplifies the kind of project Santa Ana and Orange County need,” Ball said,”transforming outdated retail centers into vibrant spaces for our community,”
Hosam Elattar is a Voice of OC reporter and corps member with Report for America, a GroundTruth initiative. Contact him at helattar@voiceofoc.org or on Twitter @ElattarHosam.
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