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Community Location

San Francisco, with a population of 716,000, occupies the upper part of the rugged San Francisco Peninsula in Northern California. It is joined with the Marin Peninsula on the north by the Golden Gate Bridge and with the East Bay area by the San Francisco-Oakland Bay Bridge. The City and County of San Francisco have identical boundaries and form part of the five-county San Francisco-Oakland Metropolitan Area. The Metropolitan Area has a population of 3, 200, 000.

DoD Impact

The Naval Shipyard, Hunters Point, will be closed and placed in caretaker status by June 1974, except for Drydock Number 4. Certain administrative functions and personnel will be relocated as follows: 220 civilian positions to the Naval Shipyard, Long Beach, California; 244 civilian positions to the Naval Shipyard, Mare Island, California; 62 civilian positions to the Naval Support Activity, Vallejo, California; nine civilian positions to the Naval Shipyard, Norfolk, Virginia; and 46 military positions to other locations --78 military positions and 4,649 civilian positions will be reduced.

EAC Involvement

EAC representatives, led by Secretary of Defense Elliot Richardson, visited with civic leaders in San Francisco, shortly after the announced closure of the Naval Shipyard at Hunters Point on April 17. After that visit the OEA Regional Director met several times with key individuals from the Shipyard, the business sector, the City of San Francisco and the Bayview/Hunters Point community.

In response to a June 4 letter from Mayor Alioto requesting EAC assistance, EAC representatives conducted a reconnaissance visit to San Francisco on June 27-29. A report from this visit, outlining an economic adjustment strategy is in preparation by OEA staff.

Mayor Alioto has formed a task force of local leaders to deal with problems caused by the shipyard closure. Governor Reagan has formed a State Task Force for Economic Adjustment related to military realignments.

To assist with initial planning efforts, HUD has provided a grant of $35,000.

DoD has met with civilian employees to discuss rights, benefits, and the Priority Placement Program. As of June 22, 1,557 workers had accepted new jobs. Several hundred have left through normal attrition, and 817 retirements are being processed.

Further EAC activities will be determined from the strategy developed in the reconnaissance visit report. Some of the assistance being contemplated includes:

Continuance of Boys Club activities in the Bayview/Hunters
Point area which are supported by Navy.

EDA assistance for a project designed to rebuild business
activity in the depressed commercial section of Bayview/
Hunters Point.

Funds for capital improvements related to industrial development.

Preparation of a re-use plan for excessed shipyard properties.

Continuance of housing redevelopment projects presently
detained by HUD moratorium on funds.

These will provide construction jobs and housing in the Bayview/
Hunters Point community.

Disposition of Property

The Navy has recommended the excessing of 868 acres and retention of 48 acres including Drydock Number 4 and related facilities. Also designated for retention are 50 acres of submerged land to permit dredging, maintenance, and access to piers and drydock. Retained properties are for emergency carrier repair.

There will be a minimal effect upon the overall San Francisco unemployment level. Prospects for re-employment are good for most of the employees. The city economy is strong and general economic projections for the Bay Area are quite good.

There will, however, be a residue of 500 - 1,000 low-skilled workers who will be difficult to place because of a lack of manufacturing jobs in the immediate area. Since a large part of these workers live in the Bayview/ Hunters Point minority community, it will exacerbate the 10 - 12% unemployment rate there. Assistance in training programs, construction projects, and industrial development at India Basin and the Shipyard have the potential to more than compensate for the impact over the long term.

Base re-use will be an important factor in the recovery process. The city is currently attempting to obtain the entire shipyard, with no exceptions, for the use of one of several industrial prospects. Regardless of the outcome of that attempt, a substantial amount of property should be made available for community use.

The Bayview/Hunters Point community will bear the greatest impact from the closure and will need much EAC assistance.

Current Status

The reconnaissance report being prepared by OEA staff should be completed by the end of July. It will outline needed recovery strategy and form the background for a full EAC team visit in August or September. EAC continues to work with the State and local task forces to carry out interim actions.

Community Location

Pasadena, with a 1970 population of 113,327, is located at the western end of the San Gabriel Valley, at the foot of the rugged mile-high San Gabriel Mountains approximately 10-15 miles northeast of the heart of Los Angeles.

DoD Impact

The Naval Undersea Center, Pasadena Laboratory, will be consolidated with the Center at San Diego, California, and the Laboratory will be closed by June 1974. A total of six military positions and 491 civilian positions will be relocated to the Naval Undersea Center at San Diego and 99 civilian positions will be reduced.

EAC Involvement

A group of local leaders met with the Director of the Office of Economic Adjustment in Washington in May, 1973 and formally requested EAC assistance. Also, the OEA regional representative has been working with officials of Pasadena since the Center was announced for closure. Representatives of the Office of Economic Adjustment conducted a reconnaissance visit to Pasadena on June 13-15 in response to an invitation from the city's mayor, Donald F. Yokaitis. Due to the minimum impact of the base closure, a full team vis it is not anticipated.

EAC Program

Analysis of the facts obtained during the OEA visit and further communication with the Mayor's Committee, which has the responsibility for the transition, indicate that the economic development program in Pasadena should be directed at industrial growth. The City has been provided $15,000 by the Economic Development Agency for consultant assistance to determine the most productive civilian use of property excessed at the Naval Undersea Center. The land occupied by the Center is ideally suited for commercial or industrial use. It is well located for trans portation purposes and the surrounding land on three sides is zoned for and occupied by industrial establishments. City officials foresee no problems in attracting industry to the site. Some attention is also being given to commercial potential. At this time, there is little or no interest in the re-use of this property for other purposes.

99.970 O. 73 - 5

One area of anticipated assistance by EAC will be manpower training. Several new jobs are expected to be created in this area as a result of new businesses presently being established and the re-use of excess government property for industrial purposes. This will necessitate training and re-training of a certain portion of the Pasadena labor force, where the unemployment rate is 11. 2%. A significant number of these unemployed are members of minority groups.

Assistance may also be provided to improve the water and sewer facilities in order to meet new and additional requirements generated by the industrial use of military property. Construction and improvement of access roads to the Foothill Boulevard is another possible area for EAC involvement. The Naval Undersea Center is situated directly off this freeway and industrial development at the facility would be greatly enhanced by convenient access from the surrounding

areas.

Disposition of DoD Property

The entire 9.3 acres of land which the Center now occupies is to be excessed.

Assessment

area

The economic impact of the termination of Naval activities at the Undersea Center is judged to be minimal on the City of Pasadena. Several factors are instrumental in producing this effect. The City is presently preparing for the introduction of two new businesses into the

Bank Americard and Parsons, Inc. An estimated one to two thousand new jobs will be created as a result of these additions. Some of these new positions will permit the employment of the job-seeking minorities, i.e., clerical, maintenance, and low-skilled trades. Likewise, small businesses such as restaurants, sales, etc., will also help to alleviate the unemployment problem. Re-use of the government property for industrial and/or commercial purposes provides further potential for job creation.

The majority of personnel directly affected by the Defense decision have chosen to relocate in San Diego. Approximately 100 people will remain in Pasadena. This, of course, will mean the loss of possibly 400 families in the metropolitan area; however, this is expected to be offset in a very short time frame by the establishment of the new businesses mentioned above.

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