Oakland Chinatown Improvement Initiative - Fall 2016

OAKLAND CHINATOWN IMPROVEMENT INITIATIVE - FALL 2016

OAKLAND CHINATOWN IMPROVEMENT INITIATIVE

San Francisco State University Asian American Studies Department Chanfou Saelee Jason Agpaoa Andrea Posadas

1 OAKLAND CHINATOWN IMPROVEMENT INITIATIVE

Table of Contents

I. Executive Summary II.Problem and Purpose III. History IV. Signiﬁcance V. Context and Contributing Factors VI. Methods and Findings VII. Recommendations and Future Research VIII. Appendix

i. Youth Survey Questions ii. Business Owner Interview Questions iii. Bibliography

2 I. EXECUTIVE SUMMARY

Problem Statement Signiﬁcance and Context

Although Asian owned businesses are From 2005 to 2014, agriculture, manufacturing, and wholesale growing in Alameda county, businesses in business establishments decreased by 22%, 16%, and 9% Oakland Chinatown are not showing the respectively (1). same increase (17,18). When we compared Oakland Chinatown to • One in five financial institutions have left Chinatown since 2005 (1). Chinatowns across the nation, we noticed a similar trend: • 36% increase in minimum wage on March 2015 complicates small business activity (3). • 1 out of 3 Chinatowns nationwide are facing issues related to gentrification (5,7,8).

Key Findings

Our investigation of the current business climate and potential stakeholders involved a process of business mapping Chinatown’s street level and storefronts, property owner analysis of the neighborhood, and surveys that tracked how youth ages 16-25 utilize Chinatown services.

Business Mapping Results

• 34 unoccupied properties across the neighborhood

• Retail and restaurants make up 61% (234/345) of total counted businesses

Property Owner Analysis

• 51% (80/158) of the people who own properties in Chinatown resided outside of Oakland.

Survey of Youth Ages 16-25

• Almost half of the Youth (21/44) report that they spend $20 and up when they come to Chinatown.

Key Recommendations

Seek and attract transnational capital to recover from the loss of jobs and capital.

Property owners of condominiums and new developments that do not provide community beneﬁts need to be questioned about their investment to the community.

Uphold and push for more art and historical exhibits in storefronts to keep community vibrant.

Beautify Chinatown by supporting ongoing cleanups, removing and replacing graﬃti with art. Decrease crime and improve public safety with better street lighting and more community patrols

Increase nightlife with night markets hosted by local businesses, not outside ones.

3 II. PROBLEM AND PURPOSE II. PROBLEM & PURPOSE

Asian-owned businesses are increasing in Bay Area counties. From 2007 to 2012, established Asian businesses in Contra Costa, San Francisco, and Santa Clara counties show increases of 10%, 24%, and 26% respectively. The ﬁve year census tract also concluded that Alameda county shows an increase of 26% in Asian owned businesses. Asian businesses are growing in the Bay Area however, businesses in Oakland Chinatown are not showing the same increase (17,18).

ASIAN-OWNED BUSINESSES ARE INCREASING IN THE BAY AREA COUNTIES, BUT OAKLAND CHINATOWN BUSINESSES ARE DECLINING

Although Chinatown is incorporated with a commercial and residential district, the neighborhood also includes a populous community of working class families in struggling conditions. If you take a walk through Chinatown, you will find vacant storefronts, shattered glass on the edges of sidewalks, and gross graffiti marked across the neighborhood. The presence of uncleanliness and vandalism are not making businesses attractable in Chinatown. Other external forces such as city policies and new development perpetuate the loss of businesses due to their influences over the rising economy and land value. External pressures, crimes, and unoccupied properties in the neighborhood further complicate the displacement of small businesses in Chinatown. Through this report, we hope to provide recommendations on the types of businesses that would best fit in Oakland Chinatown.

IN ORDER TO INVESTIGATE THE BUSINESS DISPLACEMENTS ACROSS CHINATOWN, WE SOUGHT TO FIND OUT THE CURRENT BUSINESS CLIMATE OF THE COMMUNITY AND ITS STAKEHOLDERS

4 II. PROBLEM AND PURPOSE

24%

increase in San Francisco

26%

increase in Alameda

ASIAN-OWNED BUSINESSES ARE 10%

INCREASING IN BAY AREA increase in Contra Costa COUNTIES, BUT OAKLAND CHINATOWN BUSINESSES ARE DECLINING.

5 III. HISTORY III.HISTORY

In order to think critically about the types of businesses that should be recommended for Oakland Chinatown, one must look at the history of Chinatowns. Historically, these spaces have been a hub for immigrant communities. Anti-Asian sentiments beginning in the 19th century pushed Asian immigrants to develop their communities separate from the hostile

society. Chinese men first came to Oakland around the 1850’s after gold was discovered near Sacramento. After being driven away from gold mining fields, Chinese moved to urban areas as anti-Chinese sentiment gained popularity. Some of the first Chinese settlements in Oakland were at the First and Castro streets, 16th and 17th streets, Telegraph avenue, and between 18th and 19th

streets on San Pablo. Unfortunately, the settlements were burned down or relocated. By the 1870’s, Chinese began to settle down, and create roots at 8th and Webster streets, the commercial center of today’s Chinatown. The Chinese in Oakland worked in diverse ﬁelds such as agriculture, ﬁsheries, laundromats, cigars, and explosives. They contributed labor to the railroad industry, aided in constructing the Temescal and Lake Chabot dams, and developed new farming techniques. Despite their contributions to the economy and society, hostility

and anti-Chinese sentiments persisted in local communities. The Chinese Exclusion Act of 1882 aimed at stopping the ﬂow of Chinese immigrants not just in Oakland, but throughout the West Coast and United States. In 1906, the San Francisco earthquake and ﬁre unexpectedly boosted the Chinese Population in Oakland.

Thousands of Chinese relocated as “Paper Sons” to Oakland Chinatown after the earthquake and ﬁre incident. Members in support of anti-Chinese sentiment protested the growing Chinese population, but Oakland Chinatown continued to grow. Despite the protests, Chinatown began to develop into a complex society along with isolation from the city (6,13,22).

6 III. HISTORY

During the ﬁrst half of the 20th century, Chinese remained segregated from the rest of the Oakland community, but family life continued to develop. The Wa Sung Community Service Club in the 1920’s helped contribute in bringing baseball and other recreation services for both men and women’s sport teams. Chinese organizations also emerged at the time. They consisted of civil rights groups, tongs, families, districts, and businesses associations. The 1930’s had as many as a dozen schools for Chinese children within Chinatown (6,13,22).

After the exclusion, Chinese-American families were able to legally reunite in the U.S. The Oakland Chinese population increased to 5,500 in the 1940s. Chinese emigrated after the war and some remained in Chinatown (Wong, Chinese Directory, Lee). However, younger generations of Chinese Americans began to purchase homes and work outside of Chinatown as shipyards began to shut down after the war. Some Chinese Americans in Oakland were able to obtain social upward mobility and move out of Chinatown. In doing so, Chinatown’s activity began to slow down during this period. Yet, many projects began to erect in Chinatown, diminishing a portion of their housing through the early 1960s (6,13,22).

7 IV. SIGNIFICANCE IV. SIGNIFICANCE

The displacement of small businesses within an ethnic enclave alters and harms the social and economic livelihood of Chinatown. We examined Chinatowns nationwide which are facing issues related to gentriﬁcation. We also documented vacant store fronts in Oakland Chinatown and tracked the changes of jobs in the city. In the following section, we will present some issues and pressures that signify the drastic situation of displacing small businesses out of Chinatown.

32% of Chinatowns nationwide have reported issues related to gentrification. Of the roughly 40 Chinatowns in the United States, 32.5% (13/40) of Chinatowns nationwide face rising property values and development pressures. These issues are the effects of gentrification and its ability to change the cultural makeup of the neighborhood. Gentrification not only displaces families but also disrupts the socio-economic relationships between small businesses owners and existing communities of Chinatown (5,7,8).

8 IV. SIGNIFICANCE

34 out of the 345 businesses we counted in Oakland Chinatown are vacant. 10% The vacant storefronts displayed for-rent and for-lease signs on each property. Vacant storefronts signify businesses leaving Chinatown. Oakland of storefronts in Chinatown currently has many empty properties waiting to be bought or Chinatown are vacant, occupied. The vacancies present in Chinatown restrict the enclave from empty, or for rent. gaining the most out of its business sector.

Above is a map depicting the 34 empty storefronts we found on our mapping of Oakland Chinatown. Note that many of the vacancies are located on Webster and Franklin Streets.

9 IV. SIGNIFICANCE

One in ﬁve ﬁnancial institutions have left Chinatown since 2005.

The changes of jobs in Oakland can give us a an idea of the business climate of Chinatown. The changes of jobs in Oakland help understand the type of businesses who may be subjects of displacement. From 2005 to 2014 the top five business establishments who showed increases in Alameda county were utilities (111%), educational services (36%), accommodation/ food services (22%), Professional/ Science/ Tech (13.6%), and Healthcare/ social services (10.5%). The top five business establishments that decreased were agriculture (-21.7%), finance/ insurance (-18.1%), manufacturing (-15.7%), wholesale (-9.49%), and construction (-6%) (1).

Cathay Bank (left) and Gateway Bank (above) are two of the few remaining ﬁnancial institutions in Oakland Chinatown.

10 V. CONTEXT AND CONTRIBUTING FACTORS

V. CONTEXT & CONTRIBUTING FACTORS

Demographic shifts, new developments, and local policies are contributing factors to the displacement of businesses in Chinatown. These factors inﬂuence or push pre-existing businesses to cater to demographic shifts and compete with the encroachment of expanding institutions. Other factors also hinder ethnic businesses from fostering strong partnerships with the city and its policies. We provide explanation of how these factors are put into the context of displacing of small businesses across Chinatown.

11 V. CONTEXT AND CONTRIBUTING FACTORS

Chinatowns Nationwide vs Oakland Chinatown

1 out of 3 Chinatowns nationwide are facing issues of gentriﬁcation.

Chinatowns nationwide are reporting interesting demographic changes of working class, Asian, family households shifting to more afﬂuent, white, and non-family households. Struggling Chinatowns across the nation are experiencing the pressures of gentriﬁcation and risk losing the cultural makeup of the neighborhood. These demographic shifts not only disrupt the original character of the ethnic enclave but change the general economy of the community as well. New developments are also a trend in Chinatowns across the nation. New developments are considered the creation of luxury hotels and condominiums in the community. These developments push out old residents with higher market rate housing and rises in rents, while newer residents with higher income move in. New development changes the population and raises external pressures on small businesses, leaving them to adapt towards new consumer patterns (21)

Current demographics of the Chinatown community includes background information on population, income, education, and poverty levels, of the Chinatown district. In a 2013 city data report, persons per square count in Chinatown more than doubles the city’s average. The median household income of 2013 was $38,214. Half of Chinatown’s population have less than a high school diploma. The report also concluded that about one fourth of the community lives in poverty. (20). From the information reported on the 2013 city data, we can speculate that Chinatown struggles with poverty levels and high population densities. About half of the population of Chinatown is undereducated and many residents are working class individuals who make up this low-income community. The 2013 demographic status of Chinatown suggest that the neighborhood may already be in struggling conditions.

Local Policies

36% increase of minimum wage complicates small business activity.

On march 2, 2015, the minimum wage of the city of Oakland jumped from $9.00 to $12.25, a 36 percent increase (4). While the new wage limit was praised by many labor groups, small businesses within the city reported conﬂict with the immediate rise of the minimum wage. Oakland Chinatown inhabits a handful of businesses who are struggling to meet the demand of the new wage limit. Sciacca states that the city unfortunately does not track the activity of small businesses in neighborhoods, “... but business owners and residents talk of a slowdown in foot trafﬁc in the area (chinatown) and a recent walk around Webster, Eighth and Ninth streets revealed at least a few empty storefronts. There are fewer restaurants that cater to a hungry dinner crowd,” (15,16). The immediate rise of the city’s new wage limit in relation to the displacements of business in Chinatown means that business climate has regressed due to local policies.

12 V. CONTEXT AND CONTRIBUTING FACTORS New Development

The increasing rental prices and new development of Oakland homes are finding their way into Chinatown. The W12 project, leaded by the Martin Development group, considers building a pair of apartments holding 416 units on 12th and 11th street of Webster. The project seems to erupt controversy when community members poses the question if affordable housing is included in the project.While developers see the rise of downtown Oakland’s tech industry as an Current status of parking lot on 11th and 12th of opportunity for profit, some argue that the increase Webster rental prices and the lack of affordable housing in chinatown will push long time residents out of the community. As rental prices rise, chinatown community groups gather together to express a list of concerns which “...include a demand that affordable housing be included in the project so that Chinatown's traditional working-class character isn't eclipsed by a deluge of expensive apartments and shops,” (3). Community members argue that developers must provide some of kind of community benefit to chinatown if they are opting to erect buildings in the neighborhood. However, developers rather pay the new Oakland’s affordable housing fee rather than incorporating affordable housing in the apartment units. The lack of community engagement Projected status for W-12 project on the acted by Martin Development group supports a for- corners of 11th and 12th of Webster. profit agenda, ignoring the issue of displacing long

Lack of ethnic entrepreneurship over local development projects contribute to the displacement of ethnic businesses. The lack of positive growth partnerships between ethnic businesses and the city results in the displacement of small businesses across Oakland Chinatown. The exclusion of ethnic-based projects from the city of Houston’s redevelopment initiatives resulted in the erasure of Houston’s Old Chinatown. Houston’s local development was largely shaped by activities of land-based elites who subsidized private development projects with public funds. Moreover, Chinese entrepreneurs lost inﬂuence over Houston's local development growth which contributed to the disappearing of Old Chinatown and other urban ethnic neighborhoods in the city (10). Like Houston’s Old Chinatown, if the ethnic businesses of Oakland Chinatown do not foster a shared commercial and political partnership with the city, pre-existing Chinese entrepreneurship will go out of businesses.

13 VI. METHODOLOGY VI. METHODOLOGY

The stakeholder groups in which we chose to target are youth, business owners, and property owners. We provide various methods on how we chose to target these groups as well as our preliminary ﬁndings. Quantitative Data

Business Mapping of Oakland Chinatown • From our business mapping, we found that 34 vacant storefronts along with graffiti and dirtiness gives an appearance of a declining and struggling Chinatown. • One in five institutions leaving Chinatown affirms that both jobs and capital are decreasing.

Retail Food and Drink Service Providers Health and Social Services Recreation including Gambling Religion Parking Hotel

34 vacant storefronts were found out of 345 businesses in Oakland Chinatown. 4%1% 3%2% 10% 40% The majority of businesses (62%) found were either Retail 19% or Food and Drink.

22% Vacant storefronts were found to be clustered on Franklin and Webster Streets.

14 VI. METHODOLOGY

Property Owner Analysis After mapping the area, we looked at public records from the Alameda County Assessor’s ofﬁce to gain some understanding of who owns property in Chinatown. We also took note of the mailing addresses of property owners as well as the value of each property.

Black symbol indicates the mailing address found on the property owner database.

• We found that 51% of property owners reside OUTSIDE of Oakland Chinatown. • Some of the cities that owners would come from included Santa Rosa, Hayward, Beverly Hills, and even as far as New York City.

15 VI. METHODOLOGY

Surveys (see Appendix 2)

We developed a survey for youth ages 16-25 that helped track the activities and interest of youth in and out of Chinatown. According to our clients, youth are the ones who can sustain and build the future of Chinatown. In total, we conducted 44 surveys. The survey contained 15 questions aimed understanding how youth frequent the services in Chinatown as well as visit the neighborhood. We wanted to ﬁnd out which businesses and services could better appeal to this younger demographic, as an effort to revitalize Chinatown.

We asked questions like...

What brings you to Chinatown?

Who do you usually come to Chinatown with?

What keeps you from coming to Chinatown more?

Is there anything you would change about Chinatown?

We found...

• Almost half of the youth (21/44) report that they spend $20 and up when they come to Chinatown.

• 80% of youth come to Chinatown to socialize with friends, especially to visit restaurants and other food and drink options.

• 1/3 of youth (14/44) expressed a lack of things to do in Chinatown.

• Youth spending in Chinatown represents a signiﬁcant source of capital recirculation

16 VI. METHODOLOGY Qualitative Data

Preliminary Interviews (see Appendix 3) We were able to gather two interviews with prominent business owners in Chinatown. These interviews were conﬁdential and required a client with existing relationship with the business owners. This client help provide richer data, as he is a trusted member of the community, and is also able to speak the local language. Each interview took about 10-15 minutes to conduct.

We asked questions like...

How long have you owned business in Chinatown? Describe your marketing strategies. How is your business doing currently? What is your target demographic What is the future of Chinatown? Where is it going?

Preliminary Findings... • Business owners try to target customers beyond of Chinatown • Business owners express tough competition between other businesses. • Business owners expressed concerns of Chinatown, and want to change the negative image of Chinatown.

17 VII. RECOMMENDATIONS AND FUTURE RESEARCH VII. RECOMMENDATIONS & FURTHER RESEARCH

Our preliminary ﬁndings suggest future directions in research and solutions to the displacement of businesses in Chinatown. Further Research

Continue Interviews and Surveys Due to time constraints, we were unable to collect enough information for interviews. We only gained two surveys when we aimed to have at least 15. We would like to hear from more businesses on their marketing strategies and what they see in the future of Chinatown. We would also like to hear from a more diverse group of business owners, such as newer businesses that cater to the younger demographic, like boba shops or dessert cafes. We would also like to receive more surveys (at least 200) in order to get a better sample size for the quantitative data. We received a preliminary amount of 44.

Expand on Business Mapping and Disaggregate Types of Businesses Found. We were not able to disaggregate or count the exact number of the different types of retail stores or dining options in Oakland Chinatown. (For example, the Food and Drink category comprised of restaurants, boba shops, tea shops, and dessert cafes, although we were able to get an understanding of the types of businesses existing in Chinatown.) It would be helpful to see this data and compare it to the types of businesses found in other Chinatowns in terms of their market. We hoped to do during our business mapping was disaggregating the types of retail, and food/drink services.

Expand Property Owner Database Information at Alameda Assessor's Office As suggested by our clients, it would be helpful to find out how long property owners have owned their spaces in Chinatown and figure out their level of investment to the community.

18 VII. RECOMMENDATIONS AND FUTURE RESEARCH

Recommendations The recommendations below are organized from the most feasible to the least. We focused on improving the physical appearance of Chinatown and gave creative ideas on attracting more business and activity.

1. Beautify Chinatown by supporting ongoing cleanups, removing and replacing

graﬃti with art. This will improve business facades and highlight Chinatown's

artistic and cultural heritage. Uphold and push for more art and historical

exhibits in storefronts to keep community vibrant.

2. Decrease crime and improve public safety with better street lighting and more

community patrols. This will make Chinatown's appearance become more

appealing.

3. Community should organize for more beneﬁts that serve the youth and elderly. A

night market hosted by local businesses (not outside ones) will attract and bring

more business to Chinatown . Encouraging youth to continue movie nights at

Lincoln community center and participating in cultural activities at the Oakland

Asian Cultural Center (OACC) will help continue a source of capital recirculation.

4. Work with business owners and property owners on improving business

facades. Aspiring• business owners need a space and property owners have

vacant storefronts. Building a relationship between the two groups will create

ideas and solutions on how to improve business. Property owners of

condominiums and new developments that do not provide community beneﬁts

need to be questioned about their investment to the community.

5. Seek and attract transnational capital to recover from the loss of jobs and

capital. Allowing for foreign investment can aid the community in ways that the

city cannot.

19 VIII. APPENDIX VIII. APPENDIX i. Oakland Chinatown Business Survey For Youth Ages 16 - 25

1. Ethnicity: 2. Age:

3. Zip Code:

4. What brings you to Chinatown?

a. Business: shopping, errands, services b. Personal: friends, entertainment, hanging out c. Recreation: arts, sports d.Other:

5. How often do you come to Chinatown?

a. Daily b. 2-3x/week c. Weekly d. 2-3x/month e. Monthly f. Less than once a month

6. Are there other reasons that bring you to Chinatown? ______

7. What types of places bring you to Chinatown?

a. Restaurants/Food b. Groceries c. Services (Salon, Health) d. Playground e. Entertainment f.Organizations/Agencies

20 VIII. APPENDIX

8. How do you usually get to Chinatown in terms of transportation?

Bus BART Drive Walk Other:

9. How much money do you typically spend when you come to Chinatown? ______What did you spend it on? ______

10. Who do you usually come to Chinatown with?

Family Friends Alone Other:

11. What keeps you from coming to Chinatown more?

Transportation Cleanliness Crime Lack of things to do Parking Other:

12. What activities can you do, OUTSIDE of Chinatown that is not oﬀered here? ______

13. What activities can you do, INSIDE, of Chinatown that are not oﬀered anywhere else? ______

14. Where are other places you hang out at? ______

15. What three things would you like to see in Chinatown? ______

16. Is there anything you would change about Chinatown? ______

21 VIII. APPENDIX

ii. Business Owner/Manager Interview Questions

1. Describe the type of business that you own.

2. How long have you owned business in Chinatown? What made you start it?

3. Why did you decide to start a business in Chinatown, versus somewhere else?

4. Describe the types of customers that you serve? a. Are they from in Chinatown or outside of Chinatown? b. What ages are they? c. Ethnicities? d. What is your target demographic?

8. Describe the busiest hours of your day (two hour slots).

9. Describe your marketing strategies.

10. How is your business doing currently?

11. What future plans do you have for your business?

12 .Do you see your business as part of the Chinatown community?

13. In your opinion, what is the future of Chinatown? Where is it going?

22 VIII. APPENDIX

iii. Bibliography

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23 VII. BIBLIOGRAPHY

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