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The Sonoma Developmental Center: Site Transformation Study

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The Sonoma Developmental Center: Site Transformation Study Sonoma Developmental Center: Site Transformation Study Prepared for Transform SDC Table of Contents EXECUTIVE SUMMARY 1 INTRODUCTION: A VISION TO TRANSFORM SDC 5 METHODOLOGY 8 SERVE THE PEOPLE, PROTECT THE LAND, 10 CREATE A VISIONARY INSTITUTION Core Pillar: Preserve SDC’s Open Space 10 Core Pillar: Transform Health & Human Services 14 Core Pillar: Create a Visionary Institution 15 MODELS FOR A TRANSFORMED SDC 17 Key Findings 17 Governance & Land Transfer 20 PATHWAYS TO TRANSFORM SDC 24 Scenario 1: University Acquisition 24 Scenario 2: Trust or Wholly Owned Government Corporation 25 Scenario 3: Private Redevelopment with Multiple Compatible Uses 26 RECOMMENDATIONS 28 Create a New Trust to Transform SDC 28 Provide Transitional Leadership 29 Suggested Priorities 30 Immediate Next Steps 30 APPENDICES 31 A: Acknowledgments 31 B: Guiding Principles 32 C: Site Transformations Summary Table 33 D: Transformation Case Studies 38 E: New Models of Care 62 F: References and Documents Consulted 69 2 Executive Summary In May 2015, Governor Jerry Brown submit- transformation process, as well as strategies to ted a budget proposal calling for the closure ensure that future site uses are fi nancially self- of California’s remaining developmental cen- sustaining. The models examined represent ters. These centers are among an array of large, themes identifi ed by community stakeholders, publicly funded institutions undergoing dra- including centers for sustainability, health and matic change across the country. Military bases, human services, historic preservation, natural state-run hospitals, and other aging facilities are resource protection, and higher education. This being reimagined for new or renewed purposes study is, by necessity, preliminary and intended in every state. Cooperative management agree- to inform a much more comprehensive process. ments across agencies and sectors are help- ing to pool resources toward common goals. Innovative fi nancial partnerships are helping Key Findings strengthen the resilience of these institutions. THE PLANNING PROCESS A visionary transformation at the Sonoma ENGAGES THE COMMUNITY Developmental Center (SDC) property could AND INCLUDES CRITICAL inform future closures seeking to integrate com- STAKEHOLDERS munity values, sustainability, and economic via- All of the successful site transformations that bility to achieve a higher purpose. What happens were examined for this study engaged in plan- next at SDC could serve as a national model for ning processes that were inclusive, collaborative, other institutions facing a similar uncertain future. and comprehensive. At the time, these planning processes proved to be quite challenging, but in the long run the results were extraordinary. Site Management Study: THE PROCESS INCLUDES Process Analysis SIGNIFICANT HIGH-LEVEL STATE, CORPORATE, AND/OR NATIONAL Potrero Group was invited to study transforma- LEADERSHIP tion stories of other large institutions and to iden- In addition to community planning organizations or tify key principles and lessons learned that could boards, adding individuals of state-level or national inform the process at SDC. The purpose of this stature can ensure that the site reaches its maxi- study is to examine existing partnership models mum potential and transcends some of the limita- and frameworks that can support a collaborative tions associated with local and regional politics. SONOMA DEVELOPMENTAL CENTER: SITE TRANSFORMATION STUDY 1 FINANCIAL SELF-SUFFICIENCY IS volunteers are often attracted to sites that have AT THE CORE OF PLANNING a compelling vision. This compelling vision can Planning processes are often at risk of becom- help bring signifi cant resources to the project ing a “wish list” of community desires and hopes and help it avoid potentially divisive local poli- for a site, which ultimately results in a halted tics. Sites of signifi cant acreage without a central, process or a default to the status quo because coherent vision are often parceled off to various, these hopes fail to cohere into a feasible vision. unrelated users. At best, this new development Some of the most successful transformations misses an opportunity to create something that undertook detailed economic analyses early in is greater than the sum of its parts. At worst, a the process, including rigorous market analysis divided strategy can result in lengthy negotia- of potential revenue streams that can support tions over boundaries and resources, slowing or site operations, staff, and programs. These mod- sometimes halting a project entirely. els balanced the hopes and desires for the site with a solid focus on ensuring that fi nancial sus- ALTERNATIVE GOVERNANCE tainability was an integral part of the planning STRUCTURES ENABLE THE SITE process. Realistic cost projections helped to set TO TRANSCEND LIMITATIONS OF reasonable expectations for the site and ensured TRADITIONAL DEVELOPMENT the stability of tenants and anchor institutions. AND/OR GOVERNMENT OWNERSHIP A POWERFUL VISION FOR Trusts, government-owned corporations, pub- TRANSFORMATION ATTRACTS lic-private partnerships, and hybrid structures FINANCIAL AND VOLUNTEER provide remarkable fl exibility that isn’t usually RESOURCES available if the project utilizes traditional business A powerful, coherent vision can help elevate or governmental structures. Some of the most the goals of the project above niche interests. successful models carefully examined the legal Funders, progressive developers, and community authorities and relationships they needed to cre- ate the impact they desired and found the best governance structure that fostered this impact. Pathways to Transform SDC The following scenarios describe the three most feasible paths forward for the SDC transforma- tion. Each provides a distinct pathway for land transfer, site governance, and redevelopment. Input from stakeholders and focus on a pre- ferred scenario will lay the foundation for a more comprehensive feasibility study in the future. 2 SONOMA DEVELOPMENTAL CENTER: SITE TRANSFORMATION STUDY SCENARIO 1: public input, ensuring that key community con- UNIVERSITY ACQUISITION cerns are addressed. After the development, A direct transfer of the SDC campus to a California governance is divided among each of the vari- public institution of higher education is among ous landholders. Without a central institution the least complicated options for transforming solely dedicated to guiding the transition, the SDC. The existing governing structure of the site could lack a coherent unifi ed transforma- acquiring institution will assume responsibility tion enabled by other models. Aspects of the for the transformation, utilizing budgeted funds redevelopment can be slow to complete, in for expansion to adapt the campus. This scenario part because each aspect of the plan is subject could be a promising path to maintain the prop- to competing political interests and community erty as an innovative healthcare-centered cam- desires. Lease revenue or profi t-sharing mod- pus. However, university acquisitions are often els are unlikely to sustain innovative site uses— opportunistic, driven by the university’s current these will need their own model for fi nancial plans for expansion and departmental needs. self-suffi ciency. SCENARIO 2: TRUST OR WHOLLY OWNED GOV- Recommendations & ERNMENT CORPORATION Public-private partnerships are able to transcend Next Steps the limitations of private redevelopments and inter-governmental transfers to achieve a model Given the diverse set of opportunities for reuse that is unique. This balanced approach helps to at the SDC site, as well as interest in a variety of minimize the site’s fi scal liability while maximiz- programming options on the site’s ample cam- ing the community benefi t potential. The pri- pus, Potrero Group recommends that stakehold- mary consideration for such an institution should ers pursue Scenario 2, utilizing a trust of diverse include a strong business plan for fi nancial self- leaders to govern the transformation through suffi ciency. Balancing the aspirations of the new public-private partnership with the State of institution with fi nancial sustainability across the California. This partnership can support and site as a whole will be key to success. Partnership coordinate a few key anchor institutions—incor- negotiations and structural agreements are gen- porating elements from Scenarios 1 & 3 such erally the most complex aspect of this model, as a satellite campus, health service institution, more so than permitting, zoning, or even fund- and other complementary uses—while steer- raising. Visionary leaders and individuals with ing transformation efforts in accordance with strong communication skills are needed to com- core values with a site-wide plan for fi nancial municate the new model as it develops. sustainability. SCENARIO 3: Goals to protect the land as well as serve the PRIVATE REDEVELOPMENT WITH community at SDC are complementary. However, MULTIPLE COMPATIBLE USES a central body that can execute a vision for This is another common pathway for institutional both of these elements is a missing component site conversions, particularly military bases. from the SDC effort. The community’s vision for Parcels are sold to various entities and develop- a transformed SDC contains some elements ers that create diverse site uses. As in most any that require collaboration with the California development, the process is subject to extensive Department of Developmental Services (DDS) SONOMA DEVELOPMENTAL
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