New hotel project is a go again after defeat of Measure R

Now that Measure R, the initiative that aimed to impose stricter standards on tall buildings, has been defeated, the project to build a hotel downtown is back on track.
Developer Jim Didion of Center Street Partners LLC had stopped all design work on the hotel planned for the intersection of Shattuck Avenue and Center Street pending the outcome of Tuesday’s vote. Didion had contended that the requirements called for by Measure R would make the project financially infeasible.
But after Measure R was delivered a resounding defeat — No on R captured almost 74% of the vote, according to the most recent tally — work was set to resume, said Matthew Taecker, one of the hotel’s consultants. He said revisiting the design will be one of the team’s first tasks.
“Our team needs to meet to re-engage and discuss next steps, not the least of which is to address concerns we heard earlier this year,” Taecker said in an email.
The proposed 180-foot-tall complex would be located at 2129 Shattuck Ave. It is set to include ground-floor commercial space, including a restaurant or bar, three floors of office space and 12 stories containing nearly 300 hotel rooms. Eighty parking spaces are planned at an underground level. Developers said they plan to pay to use another 120 spaces in the city-owned garage — slated for demolition and reconstruction — on Center Street across Shattuck.

Councilman Jesse Arreguín: said Measure R has served to shift the conversation. Photo: Emilie Raguso

Berkeley City Councilman Jesse Arreguín, who was a main backer and main face of the Yes on Measure R campaign, said Thursday that despite the measure’s defeat, it served to shift the conversation around community benefits in a positive way.
The Berkeley City Council would not have passed a Civic Center overlay if Measure R had not been on the ballot, he said. (The overlay — aimed to protect the fate of the downtown Berkeley post office — was one of the components of the plan.)
He also thinks Measure R contributed to the recent announcement by the developer of The Residences at Berkeley Plaza at 2211 Harold Way that he would use 100% union labor for construction. The hotel developer is also considering using union labor for building, and has pledged not to interfere with having a hotel workers’ union, he said. Before Measure R, those talks had been bogged down, according to Arreguín.
“When Measure R went on the ballot, it provided the leverage to negotiate with the developers,” said Arreguín.
Applicants for projects are also making their own suggestions for community benefits, and planning staff and the Zoning Adjustments Board are asking that benefits be better defined, he said.
There were two reasons why Measure R lost, according to Arreguín. At 28 pages, the measure was too complex. Money was another issue.
“I really believe one of the main reasons Measure R failed is because we were outspent 14 to 1 by our opponents,” said Arreguín. “The opposition raised close to $250,000…. [making it] one of the largest campaign war chests in Berkeley’s history. With that much money it’s really hard to get your message out there.”
John Caner, who runs the Downtown Berkeley Association, said the lopsided defeat shows that the majority of Berkeleyans want a denser, transit-friendly downtown. He spent a lot of time talking to people at the Solano Stroll and Sunday Streets, and found that many younger people were opposed to Measure R because they like the direction the downtown is headed.
“I think it was generational,” said Caner. “The younger generation understands. They want a vibrant urban core. They want density, a pedestrian lifestyle.”
Caner said he hopes the vote on Tuesday settles the disagreement over the downtown’s direction. (Voters in 2010 also approved another Measure R — a blueprint for the Downtown Area Plan — by 63% of the vote.)
“Measure R was a big distraction,” he said. “It slowed us down for a while, but that’s the democratic process. I would hope that after two times the message is clear… It’s an endorsement of where the city is going.”
In many ways, Measure R was a litmus test for Berkeley Mayor Tom Bates‘ leadership. He has spent a lot of time working on the redevelopment of downtown and contributed $11,000 to the anti-R campaign.
Some observers say the measure’s defeat may have been damaging to Arreguín’s political career. However he said he hopes to bring some of the components of Measure R, such as increased parking for bicycles and electric cars, to the City Council for discussion.

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Air India's cost-cutting plan: No 5 star hotels for staff, loss-making routes to be stopped

New Delhi: Loss-making Air India has announced a slew of cost-cutting measures which include plans to cut reimbursables by 10 percent and abolition of posts from the non-operational areas.

The national carrier has also decided to discontinue loss-making routes, among others steps, to rein in the spending and return to break-even.

The use of expensive hotels or five-star hotels for stay during the travel or holding events has been restricted unless it is unavoidable and the budget for such activities has been reduced by 10 per cent as part of the measures, Air India sources said.

"These cost-cutting measures are part of a two-pronged drive to speed up our return to the break-even status. The measures are aimed at cutting costs under all controllable account heads by nearly 10 per cent," they said.

Reuters image

After a long spell of losses, Air India had recorded a net profit of Rs 14.6 crore in December last on account of a healthy growth in both passengers and cargo revenues.

Air India's total revenue rose by 6.5 per cent to Rs 2070 crore during December 2014 as compared to Rs 1,944 crore in the same period in 2013.

The state-run airline has reduced both its operational and net loss over the last two fiscals. Its net loss came down to Rs 5,389 crore in the last fiscal compared with a net loss of Rs 5,490 crore in financial year 2013 and Rs 7,559.74 crore in FY12.

AI has a cost base of nearly Rs 24,000 crore out of which nearly Rs 14,000 crore is variable and this includes fuel cost of Rs 9,500 crore.

"With the decline in fuel prices, the company plans to achieve at least a 20-25 per cent reduction in its fuel bills in the next fiscal, which will be a substantial saving for the carrier," the sources said.

Air India currently has a 22,500-strong workforce as against 33,000 at the time of merger of AI and Indian Airlines.

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The sources said that once the hiving-off process of the Air India engineering and ground-handling subsidiaries get operational and some 11,500 employees are transferred on these companies' payrolls, it would have only 11,000 employees by the next fiscal, which would reduce the airline's wage bill significantly.

The management has also directed that all routes should be critically reviewed and routes which are not covering fuel
cost or variable costs, removed from the network after studying the historical trends, they said.

The Finance Ministry has already made this as a mandatory condition in the Turnaround and Financial Restructuring Plan
while providing the budgetary support.

The government had granted the state-owned carrier a performance-linked bailout package of over Rs 30,000 crore in
April 2012.

According to the sources, the airline management has also indicated that posts in non-operational areas should be frozen
or abolished.

The management has also emphasised to all its employees that the targets set under the turnaround plan and the budgets should be achieved for this fiscal on a "war footing" and there can be no compromise on these, they said.

On the operational front, the measures are aimed at improving aircraft utilisation by cutting down the turnaround time at transit stations, reducing duty travel of crew to the minimum to increase their productivity, close monitoring of occupancy ratios on various flights, bringing down expenditure on entertainment at foreign stations, among others, they said.

PTI

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