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Airbnb’s impact in San Francisco
SF Chronicle
Carolyn Said
July 12, 2015
Said,C. (2015, July 12, 2015). The Airbnb effect.
San Francisco
Chronicle. Retrieved from
https://www.sfchronicle.com/airbnb-
impact-san-francisco-2015/#1
Part 1 - The Airbnb effect
At least 350 entire homes listed on Airbnb
appear to be full-time vacation rentals,
bolstering
claims by activists that the service removes scarce
housing from the city’s limited inventory.
July 12, 2015
https://www.sfchronicle.com/airbnb-impact-san-francisco-
2015/#1
Stories by Carolyn Said | Design by Michael
Grant | Development and graphics by Aaron
Williams, Maegan Clawges and John Blanchard |
Photography by Paul Chinn, Liz Hafalia, Jason
Henry, Leah Millis, Amy Osborne, Lea Suzuki
and Sam Wolson | Edited by Ben Muessig |
Copyedited by Caroline Grannan
Both Airbnb and its San Francisco critics are correct.
Mostof the booming vacation-rental
company’s local listings are only occasionally rented
to travelers, as Airbnb says. However,
at least 350 entire properties listed on Airbnb —
and hundreds more listed on competing
sites HomeAway/VRBO and FlipKey — appear to be
full-time vacation rentals, bolstering
claims by activists that the services remove scarce
housing from the city’s limited
inventory.Those are among the findings from a
data dive into the threecompanies’
websites.
It’s not the thousands of illegal hotels that critics
allege have sprung up thanks to Airbnb
and its rivals. But in a city wracked by a
housing crisis, where a typical year sees
just 2,000
new units added, a few hundred units off the market
makes a significant dent.
Using houses as hotels ranks among San
Francisco’s most-contentious issues, debated
fiercely by lawmakers, residents, advocates and
corporations, and now likely headed for a
ballot-boxshowdown.
Opponents say short-term rentals are so
lucrative that greedy landlords and tenants
illegally divert precious housing stock to the
practice. Proponents say services like Airbnb
help regular people afford to stay in San
Francisco, while forging international
friendships.
For decades, a seldom-enforced law banned
vacation rentals in San Francisco. A new
law
enacted on Feb. 1 legalized such rentals, with
conditions: hostsmust be full-time residents,
whole-property rentals are capped at 90 days a
year, and all hostsmust register with the
city. But so far only a fraction of hosts— about
700 — have registered, while the city itself
admits it struggles to catch scofflaws.Mayor Ed
Lee this month created a new office to
streamline registration and pursue violations.
At the core of this dispute is a simple
question that is devilishly difficult to answer:
How do
the impromptu inns affect the city’s housing
market?
To investigate, The Chronicle commissioned data-
extraction companies Connotate Inc. and
Import.io to harvest San Francisco information from
the Airbnb, HomeAway and FlipKey
websites on May 19. Connotate also extracted Airbnb
listing data for The Chronicle on the
same date in 2014, allowing for insights about
year-over-year changes. Here’s a summary
of the findings:
Total listings and cost
Amid all the controversy, the number of Airbnb
listings in San Francisco grew 13.8 percent
in the year, hitting 5,459, despite a significant
portion of properties dropping out. The $202
average nightly cost among all property types —
entire homes, private rooms and shared
rooms — was up $19 (10.9 percent) from a
year ago.
Entire homes accounted for 3,264 of the 2015
listings, or 59.8 percent; private rooms
numbered 1,969 or 36 percent and shared rooms
tallied 226 or 4.1 percent. Prices for
entire homes rose 13.3 percent to $255; private
rooms edged up 6 percent to $123 and
shared rooms ballooned 55 percent to $124.
That increase was propelled by somenew
hacker hostels — shared houses that pack young
workers into bunk beds.
Length and frequency of rentals
Almost two-thirds— 64 percent — of all listings
had 10 or fewer reviews over the past
year, supporting the idea that they were rented only
infrequently.
However, the remaining listings racked up a
significant chunk of guest reviews — a
telling,
albeit conservative indicator of usage as not all
guests leave reviews.
Properties listed on Airbnb both last year and this
year averaged 22 reviews each. Among
entire homes, 352 showed 26 or more reviews in
the 52-week period. That means new
guests checked in at least every otherweekand
likely more often.
An additional 349 new or returning listings for entire
homes also had 26 or more reviews,
attained during an indeterminate time period.
Where are they?
Vacation rentals are spread throughout San
Francisco, in contrast to the city’s 34,000
hotel
rooms, which are heavily clustered near Moscone
Center, Union Square and Fisherman’s
Wharf.
The Mission District, with 789 listings (up from 681
last year), remains the city’s most
popular Airbnb location, followed by SoMa (388
listings) and the Western Addition/NoPa
(369). Bernal Heights added 58 properties to
become fourth-most-popular, with 264
spaces for rent. The Bayview added eightlistings
(for a total of 58), and racked up 757 new
guest comments in a year, pointing to rise in
usage in one of the city’s lower-cost
neighborhoods.
Who hosts?
While most Airbnb hostscontrol a single
property, 205 hostshave threeor more listings.
These super hostsaccount for 4.8 percent of all
hosts, but control 993 properties — 18.2
percent of Airbnb’s local listings. Some are
property managers, someare hacker hostels,
someare legal hotels and someare people who may
have siphoned off housing stock to
make more money hosting visitors.
Wrede Petersmeyer, who oversees Airbnb analytics,
flew out from New York, to discuss the
company’s data and defend its model. Most entire
units in San Francisco are rented out
fewer than 30 days a year, he said, while only 10
percent of hostsrent out a space where
they do not live. Entire units were booked an average
of 65 nights over the 12 months
ended July 5, with a median stay of 29 nights,
Airbnb said.
“Data scrapes are unfairly used to draw specific —
oftennegative — conclusions about a
small subset of our host community,” he said,
“when the reality is the vast majority are
middle-class families sharing the home in which
they live.”
Since 60 percent of Airbnb’s local listings are
entire homes, does that undercut the
company’s assertion that guests and hostsare
“sharing” spaces and forging friendships?
“Local, authentic hospitality doesn’t always mean
the host has to be thereto give you the
keys,” Petersmeyer said.
Part 2 - Living with Airbnb
A family in the Castro welcomes guests to
raise funds and make friends, while a
landlord in
Nob Hill stands accused of turning a Victorian
home into a full-time hotel. July 12, 2015
https://www.sfchronicle.com/airbnb-impact-san-francisco-
2015/#2
Geoff Benjamin and his husband, Craig Persiko,
oftenlist rooms in their four-bedroom
Castro condo on Airbnb to raise spare cash.
Another host identified on the site as Yumi
has
allegedly turned two entire flats on Nob Hill into
Airbnb hotels, hosting a frequent stream
of temporary renters, while also listing another
roomfor rent in the Richmond District. The
tales of thesehostsillustrate both sidesof the vacation-
rental debate.
Persiko chairs the computer science department at
City College of San Francisco, while
Benjamin recently launched the SoMa cabaret theatre
and nightclub Oasis — a laborof love
financed by Airbnb guests.
Renting to travelers “in many ways became like a
small-business loan that we didn’t have
to repay,” Benjamin said. “In essence, it paid my
salary for the two years it took to open
Oasis.”
The couple rent two to four rooms to travelers at
different times. They paid for sleep-away
camp for their children, Tobias, 10, and Serafina,
12, by renting out their bedrooms while
they were away, for instance.
They love meeting people, and the feeling seems
mutual. Airbnb guests read to their kids
and eat meals with the family. Benjamin said the
rooms wouldn’t work as permanent
housing, because most people prefer not to stay
long with a family with children.
“I’vealways wanted my children to identify as
citizens of the world,” Benjamin said. “A
really excited energy comes from people when
they travel. We get to see the city through
their eyes.”
Over on Nob Hill, Katieanne Moran and her flatmates
say they are surrounded by Airbnb
renters. Long-term tenants in the middle flat of
a Victorian triplex, they discovered that the
top floor and basement flats had been converted to full-
time Airbnb use, with six individual
rooms going for $100 to $130 a night.
“Rooms were being rented below us, above us
and in the building all around us,” she said.
“It was very disconcerting; we felt trapped.”
Their landlady, Yumi, does not live in the
building, the tenants said. When they voiced
concerns about noise and security, the landlady
said “she could do whatever she wanted
and if it caused problems, we would be
evicted.”
Now they’re suing Yumi, whose legal name is
Mingjing Li, for violating city ordinances,
negligence and creating a private nuisance. Li
and her attorney declined to comment.
“This is one of the more egregious cases, but
we oftensee landlords try to forcetenants out
... (to use) Airbnb and otherhosting platforms,”
said Mark Hooshmand, the tenants’ lawyer.
“Money motivates people to not follow regulations.”
Part 3 - Hosts or hoteliers?
The Chronicle compiled a conservative estimate of
Airbnb listings functioning as full-time
vacation rentals. July 12, 2015
https://www.sfchronicle.com/airbnb-impact-san-francisco-
2015/#3
How many San Franciscans use Airbnb to turn
their places into year-round hotels? Airbnb
knows the answer: Its transaction system
captures exactly how many nights each
property
is rented. The company could remove listings
after they exceed the legal limit of 90 days —
but it doesn’t want to do so. It says those
bad players would simply migrate to other
platforms such as Craigslist that don’t police
listings.
Nor does it want to open the kimono on exactly
how many days each place is rented out.
And even though it now collects San Francisco’s 14
percent hoteltax — remitting more
than $1 million a month — it resists
requests to tell the tax collector which homes
are
rented and how often.
For someone looking in, guest reviews provide
the best insight into how oftena unit is
rented. The more reviews, the more frequentlya
property hoststravelers. By counting how
many reviews each property generated in the 365
days between our two data dives, we
compiled a conservative estimate of places
functioning as full-time vacation rentals.
Among whole properties — houses, condos and
apartments — listed on the site on May 19
in 2014 and 2015, 352 racked up 26 or more
reviews over the year. That includes 104 with
a stunning 51 or more reviews.
For entire units that weren’t on the site last year,
349 had a total of 26 or more reviews.
Some were new listings and somewere returning
properties, so we can’tsay conclusively
that all reviews were accumulated in a single
year.
Reviews underestimate usage. Airbnb says only two-
thirds of guests leave reviews —
meaning a property with 30 reviews in a year
may have hosted 45 unique visitors, nearly
one a week. San Francisco guests stay an average
of 5.5 nights, Airbnb says, so 30 reviews
translates into an average of 165 nights of
occupancy — and likely more, accounting
for
guests who don’t leave reviews.
Overall, the number of reviews for all San
Francisco listings surged over the 12 months,
rising by 44,842 to 105,192. Yet the majority of
listings had only a handful of reviews,
buttressing Airbnb’s assertion of infrequentusage.
Looking at all categories of properties and including
both repeats and the new or returned
listings, 3,242 or 59.3 percent, have 10 or fewer
reviews over their entire time on Airbnb.
Another 958 had 11 to 25 reviews, while 639
had 26 to 50 reviews, implying usage
between casual and frequent. But 620 homes and
rooms, or 11.4 percent of listings,
amassed 51 or more reviews, implying very heavy
usage.
The power of super hosts
MostAirbnb hostscontrol just a single listing —
but 206 hostscontrol threeor more
listings. These “superhosts” account for 4.8 percent
of all hosts, but run 18.2 percent
of Airbnb’s San Francisco listings.
Annette Fajardo says it’s no mystery why landlords
prefer to rent to short-term visitors.
“The dirty little secret is that owners do this to
avoid rent control,” she said. At the same
time,“rent-controlled tenants do it to make
money on the units that the owners should be
making money on.”
She’s in a position to know. Her SF
Holiday Rentals, in business since2002, is
the city’s
oldest short-term rental management site, she
said. She handles 20 to 30 San Francisco
listings and another seven to 10 in Pacifica,
listing them on multiple websites, including
Airbnb, HomeAway and its subsidiaryVRBO.
Her listings focus on entire homes, many
available year-round. About a third are in-law
units; someare second homes; someare small
buildings owned by a landlord, including her
own Bernal Heights duplex (she lives elsewhere and
rents both units to travelers).
She does this all legally. Her property owners now
request a 30-day minimum stay, she
said, exempting them from the new short-term rental
law. “They didn’t want the headaches
of working with the government or (officials)
snooping into their business practices,” she
said.
The change made her business easier, sinceshe
doesn’t have to handle turnover every few
days.
Fajardo is a “super host” on both Airbnb
and HomeAway, among the top 10 on both
sites
based on number of listings.
MostAirbnb hosts(3,599 people, or 85 percent of
hosts) control just a single listing,
accounting for 66 percent of all properties.
Another 434 list two properties. Many have a
legitimate reason: Either they rent out two rooms in
their home, or they rent out a room
and also offer their entire home when they travel.
However, 205 hostscontrol threeor more listings. These
super hostsaccount for 4.8
percent of all hosts, but control 993 properties —
18.2 percent of Airbnb’s San Francisco
listings.
Many hostswith multiple listings are either
property managers like Fajardo or people
running hacker hostels, packing young techies
into bunk beds for cheap crash space and
camaraderie.
Properties handled by managers can include ones skirting
regulations, as well as those like
Fajardo’s that adapted to become legal. Pillow
(22 listings) and Guesthop (15 listings) are
otherleading concierge services.
Hacker hostels are problematic, as they may flout a
variety of city rules on overcrowding,
according to ScottSanchez, San Francisco zoning
administrator. If they require a 30-day
minimum stay, however, they may be allowed in most
districts as group houses, he said.
Airbnb’s top two super hostsboth run hacker hostels.
Rob, No. 1 with 30 listings, rents
rooms in Tech House SF but does not live there,
residents said. Gatz, No. 2, runs Looky
Home with 25 listings.
Another group of people who control multiple
listings seems to have turned entire homes
or apartments into year-round pads for travelers.
Often they have just a handful of listings
in different parts of the city.
Eighty Airbnb hostshave four to six listings,
controlling 374 rentals among them.
Generally
that’s too few for them to be property management
services — and too many for them to
be legitimately living at those locations. It’s a
rare San Franciscan who could rent six
bedrooms at his or her home.
As part of a renewed effort on enforcing
vacation-rental laws, San Francisco sent violation
letters this month to hostsin this category,
targeting 15 hostswith 72 short-term rentals
around the city. More than half are blocks of
multiple units in brand-new high-rises in
SoMa and Mid-Market, while others are two- to
four-units buildings entirely devoted to
short-term rentals, the City Planning Department
said. The units were listed on various
services, while somehad their own rental websites.
“We want to crack down on people taking
housing off the market and hurting San
Francisco,” said TonyWinnicker, a senior adviser
to Mayor Ed Lee. “But we also want law-
abiding people to be able to do occasional
(short-term rentals) because it helps many
people afford to live in our city.”
Part 4 - Airbnb hostscome and go
In the year sinceThe Chronicle’s last data dive, 2,773
listings dropped off of Airbnb —
although they were replaced by 3,492 new listings.
July 12, 2015
https://www.sfchronicle.com/airbnb-impact-san-francisco-
2015/#4
Bootstrapping a business was eating up her cash,so
the San Francisco woman listed her
Marina apartment on Airbnb in 2013. She rented
it out about 70 nights a year for $260 a
night. “I would coordinate trips for work and
family, camp out with friends or do ‘Airbnb
arbitrage,’ where I’d stay at a less-expensive
Airbnb place,” she said. The cute one-bedroom
with views of the Golden Gate Bridge was always
snapped up.
“It was a self-perpetuating, ka-ching ka-ching money
machine,” she said. “It was such a
relief to know I could always rent it on
Airbnb to subsidize my rent.” She made
almost a
year’s rent over two years.
But when San Francisco implemented its vacation-
rental rules in February, registering her
unit seemed like a hassle. She feared that the
city might compel Airbnb to identify hosts
and prosecute those who failed to register.
But her biggest worry — and the reason she
declined to be named for this story— is
that
short-term renting violates her lease. She took
down her listing.
“I felt like I made my hay when the sun
was shining, but now it’s over,” she said.
In the year sinceThe Chronicle’s last data dive, 2,773
listings, or 57.8 percent, dropped out
of the site, although they were replaced by a larger
number: 3,492 new listings for a net
growth of 719 listings, or 15 percent.
Airbnb says listings oftencycle in and out. For
instance, people list their house before they
go on vacation and take it down when they
return. Indeed, many of the new listings
appear
to have had longer tenure than a year.
Tom Slee, an independent researcherand author of
the forthcoming book “What’s Yours Is
Mine” about on-demand companies, examined
Airbnb churn worldwide, finding an exit
rate
of between 50 and 60 percent of listings in
cities such as New York, Los Angeles,
Amsterdam, Parisand Barcelona over about a year. At
the same time,the entryrate of new
listings always resulted in net growth, he found.
The listings that left generally had only a handful of
reviews, implying infrequentusage,
while those that stayed averaged reviews in
the double digits, he said.
“My feeling was that it was largely people who
tried it, found it wasn’t for them and left,”
he
said.
Looking at the Bay Area, including San Francisco,
the East Bay and the Peninsula, he found
a 51 percent exit rate, lower than that for the
city alone. That props up the idea that San
Francisco is losing more listings due to users’
fears about new regulations and landlord
prohibitions on subleasing.
Part 5 - Flouting the law
While Airbnb cultivates a folksy image of
hostsas middle-class locals making ends meet,
HomeAway proclaims its hostsare affluent out-of-
towners renting their pied-a-terres. July 12,
2015
https://www.sfchronicle.com/airbnb-impact-san-francisco-
2015/#5
While Airbnb cultivates a folksy image of its
hostsas middle-class locals making ends meet,
HomeAway proclaims that its hostsare affluent out-of-
towners renting out their pieds-a-
terre. “The vast majority of our listings fall into
the category that the city is trying to stop:
this ‘evil’ second-home owner, who we don’t
believe is evil,” said Carl Shepherd, co-founder
and chiefdevelopment officer of the Texas
company.
Prices for its 1,001 local listings, all private
homes, reflect that more upscale image,
averaging $302 in San Francisco compared with Airbnb’s
entire-home average of $255.
HomeAway, which ownsVRBO and otherbrands, is
up front about the fact that its business
model flouts San Francisco’s new vacation-rental
law. In fact, it sued the city, saying the law
was tailored for Airbnb. Most HomeAway properties in
San Francisco are second homes
whose owners do not reside here and thus are
barred by the new law from renting to
tourists for periods of less than 30 days,
HomeAway said in its suit claiming
discrimination.
A judge tossed the case on procedural
grounds.
Its hostsincreasingly request 30-day minimums in
San Francisco, Shepherd said, although
only 156 listings specified monthly rates.
People who control multiple properties — oftencalled
super hosts— are more dominant
on HomeAway than on Airbnb. Almost half of
the HomeAway properties — 461, or 46
percent — are in the hands of someone with
multiple listings. They are controlled by 87
hosts, or 14.8 percent of the total.
Hosts with dozens of listings are clearly
vacation-management companies like Pillow
and
RedAwning Vacation Rentals. That doesn’t prove
that their listings are legal or illegal, just
that they belong to otherpeople.
HomeAway functions like a classified listing service,
rather than a middleman like Airbnb.
That also means that far fewer reviews appear on
its website.
HomeAway said thereis about a 10 to 15
percent overlap between its listings and those
on
Airbnb worldwide; it didn’t have a breakdown
for San Francisco. It has even more overlap
with FlipKey because many largeproperty managers
list on both sites, but didn’t have a
specific number.
FlipKey, owned by TripAdvisor Inc., has 359 local
properties with an average priceof $269.
Super hostsalso dominate its site, with 220 properties,
or 61.3 percent, in the hands of 35
hosts, or 25.7 percent of hosts.
FlipKey declined to comment.
HomeAway has a big chunk of homes —
148 — controlled by people with just two or
three
listings, oftenin different parts of the city.
Shepherd is frank about the explanation. Most,
he presumes, are tenants gaming the
system.
“When someone has several different listings in a
city like San Francisco, those are
probably all rented apartments being arbitraged by
the renter,” he said. “Arbitrage means I
pay $4,000 a month and rent it (short term)
for $300 a night, with or without the
landlord’s
permission, but most likely without.”
San Francisco actually abetted such people by
regulating vacation rentals, Shepherd said.
“The new law tells you exactly how to skirt it,” he
said. “All you have to do is say you live
there270 days a year. You do have to lie and you do
have to obfuscate.But the city is at a
distinct disadvantage because they can’tcatch this.”
10-104
Rev: November 9, 2010
This case was prepared by Cate Reavis, Manager, MIT Sloan
Teaching Innovation Resources (MSTIR).
Copyright © 2010, Massachusetts Institute of Technology. This
work is licensed under the Creative Commons Attribution-
Noncommercial-No Derivative Works 3.0 Unported License. To
view a copy of this license visit
http://creativecommons.org/licenses/by-nc-nd/3.0/ or send a
letter to Creative Commons, 171 Second Street, Suite 300, San
Francisco, California, 94105, USA.
Turnaround and Transformation: Leadership and Risk at
Boston’s Institute of Contemporary Art
Cate Reavis
On February 9, 2009, Shepard Fairey, a renowned street artist
known for his iconic red, white and
blue, “hope”, “change”, and “progress” posters of Barack
Obama that were used in the president’s
election campaign, was on his way to an opening night party for
his “Supply and Demand” exhibition
at Boston’s Institute of Contemporary Art when he was arrested
on an outstanding warrant outside the
front door. Fairey had failed to appear in court three days
earlier on a vandalism charge dating back to
2000.
While the arrest interrupted the opening night’s festivities—and
was a definite downer for the nearly
800 people who were awaiting Fairey’s arrival, some of whom
had purchased tickets on Craig’s List
for $5001—it did nothing to dampen public enthusiasm for
Fairey’s exhibit. Between February and
the exhibition’s closing in August, 130,000 people attended the
show.
In some sense, the Fairey incident was great PR for the ICA, an
institution that had gone through an
enormous transformation under its Director, Jill Medvedow.
When Medvedow arrived in 1998, the
ICA had no money, few members, no permanent collection, and,
on a good year, clocked 25,000
visitors. Operating out of an old police station on Boylston
Street, it was hardly a must-see cultural
destination in Boston. It was considered less a museum and
more an “insider’s art club”.2
By the time of Fairey’s exhibition, the ICA was, quite literally,
in a very different place. In 2006 the
museum celebrated the grand opening of its new $51 million
building, located on highly coveted
1 Milton Valencia, “Street Artist Arrested on Way to Event at
ICA,” The Boston Globe, February 7, 2009.
2 Geoff Edgers, “Big Draw,” The Boston Globe, July 19, 2009.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 2
waterfront property in South Boston where, over the years,
several high-end commercial developers
had failed in their building attempts.
Medvedow’s ability to bring change to an organization that had
no power, involved being disciplined,
getting people to believe in an idea, and taking many, many
risks.
Contemporary Art in Boston
Up until the late 1920s, modern art in Boston, and throughout
the United States, struggled to be taken
seriously. In 1911 the director of Harvard University’s Fogg
museum summed up the general feeling
about contemporary art at the time: “In having exhibitions of
the work of living men we may subject
ourselves to various embarrassments.” By the late 1920s, a
group of Harvard undergraduates set out
to challenge this viewpoint by forming the Harvard Society of
Contemporary Art as a place where the
work of living men could be viewed.3 In 1936 the Society
became the Boston Museum of Modern Art
and in 1948 the museum changed its name to the Institute of
Contemporary Art. For more than 50
years, the ICA was the only place in Boston dedicated to
contemporary art.
Unlike other styles of art, contemporary art, which included
visual exhibitions, music, film, video and
performance created by living artists, had never caught on in
Boston like it had in other cities, most
notably New York and San Francisco. According to Medvedow,
there were a number of theories
behind this:
When you look at the ecology of what makes a vibrant
contemporary art scene, you need to have
several different components that all interact with one another.
There need to be art schools and a
strong artist community where work is created and ideas are
exchanged. You need collectors,
galleries and institutions that acquire, present, sell, and display
that work. Historically, Boston
lacked many of these components, never sustaining a critical
mass of contemporary art activity
and, as a result, these gaps prevented the growth of a healthy
contemporary art environment in
Boston.
Added to the ecology argument was the fact that there had been
little private and public sector
investment in the arts in Boston, particularly contemporary.
Municipal spending for the arts in Boston
was far less than what was spent in four dozen other cities in
the United States and, on a broader
scale, Massachusetts ranked 50th among the states for per capita
philanthropy.4 As Medvedow
remarked, “A lot of Boston’s wealth was built on conserving it
and less on creating it.” And then
there was the New York factor. As Medvedow noted, “New
York’s artistic energy, support, scale and
audience for the arts of all disciplines, has always been a
magnet for Boston’s artist community.”
3 Christine Temin, “The ICA at 60: Where does the museum fit
in?” The Boston Globe, May 5, 1996.
4 Maureen Dezell, “ICA Faces Fund-raising Challenge,” The
Boston Globe, March 10 2000.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 3
There were members of Boston’s art world that felt the absence
of a strong contemporary art
community was a big drawback for Boston. As William Rawn, a
Boston architect and long time ICA
board member, explained, “Artists provide a very different way
of looking at the world. They ask
questions that are different from the norm and in Boston, a city
that honors academics and inventors,
this is particularly admired.” Furthermore, through their work,
contemporary artists reflected what
was currently happening in society and as Vin Cipolla, who
served on the ICA board for 16 years and
as its chairman from 1997-2005, noted: “It’s the role of an
institution like the ICA to provide a safe
place where a diversity of perspectives can be expressed to a
wide audience.”
This was something Medvedow believed at her core.
Jill Medvedow
Described as “pathologically optimistic,” Jill Medvedow’s
commitment to civic causes began when
she was young. Raised in New Haven, Connecticut, by parents
who were political and social activists,
Medvedow admitted that campaigning was something she was
exposed to in utero. “My parents
taught me how to be a good citizen,” she said. “My mother was
deeply engaged in volunteering for
civic and charitable causes and my father was a prominent
elected official. I grew up thinking I was
part of the city’s political fabric.”5 Through her upbringing, she
“learned about the basic mechanics of
organizing and how to move an agenda,”6 skill sets that would
serve her well in her professional life.
Trained as an art historian, Medvedow arrived in Boston in
1986 from Seattle where she had founded
a nonprofit contemporary arts center. In 1991 she became the
first full-time contemporary curator at
the Isabella Stewart Gardner Museum, bringing in numerous
performing and visual artists from
around the world. When she left the Gardner in 1996,
Medvedow was determined that her next career
move would involve bringing art to a broader public. “I was
trying to figure out how to build a bridge
between contemporary art and an audience that didn’t have a
great affection for it,” she explained. “I
came up with the idea of framing public art projects through the
history and landscape of Boston,
which Bostonians typically have a lot of affection for.” Within a
year, she founded Vita Brevis, an
organization devoted to producing temporary public art pieces.
With the first Vita Brevis project near
completion, Medvedow found herself being courted to become
the ICA’s next director.
According to Rawn, who headed the search committee for the
ICA’s new director, it was
Medvedow’s character as much as her curatorial background
that made her such an attractive
candidate:
The minute you met Jill you immediately noticed that she is
centered. She is not wowed by
trends. In language, in dress, she is not the least bit pretentious.
She doesn’t try to be someone or
something she isn’t. She is not out to prove anything to
anybody. She has a strong intellectual
5 Christine Temin, “Jill Medvedow’s Dreamscape…” The
Boston Globe, July 15, 2001.
6 Rachel Strutt, “The Visionary Jill Medvedow…” The Boston
Globe, December 31, 2006.
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base for her opinions on art. This part of her persona was
reflected in her vision for the ICA,
which was something that really struck us. She was passionate
that the ICA needed to be relevant,
very public and non-elitist, and that in order for it to succeed, it
had to be better at outreach
whether it was with school children, local politicians, donors, or
members.
A further selling point for the search committee was that
because Medvedow was an outsider in the
world of museum directors, she didn’t come with old rivalries
or attachments.
Striving to be Marginal
When Medvedow took the reigns in March 1998, the ICA, with
a yearly attendance of 25,000 (an
average of 68 people a day) and a paltry budget just shy of $1
million, was in the midst of a severe
identity crisis. The museum was housed in a converted police
station and stable on Boylston Street, a
building it had purchased from the city of Boston in the early
1990s with $328,000 in donations from
trustees and overseers.7 (The Boylston address was the 10th
location the museum had had since its
founding.) The quirky space was largely defined by an
enormous staircase that cut down through the
center of the building’s four floors, creating enormous space
contraints for exhibits. Unlike other
Boston-area museums which could hang more than 10 shows a
year,8 the ICA was limited to just
four, with months of down time in between shows. Partly
because of space and largely because of
money and lack of interest, the ICA had no permanent
collection, an important symbol of status in the
museum world, which also helped art institutions create an
identity, draw repeat visitors, and build a
donor base. Meanwhile, contemporary art could be viewed at a
number of museums throughout
Boston, many of which were backed by well-endowed academic
institutions including MIT’s List
Visual Arts Center, the Rose Art Museum (Brandeis),
Massachusetts College of Art, the Museum of
Fine Arts, and Harvard University Art Museums. As Medvedow
liked to say at the time, “The ICA
was striving to be marginal.”
Medvedow’s mandate was to stabilize and reinvent. As Cipolla
explained,
The ICA was doing some great work but it didn’t really have a
point of view. The programming
was spotty, the outreach was not very strategic, and the building
we were in was a physical
manifestation of the inadequacy of the organization. The ICA
needed to be a place that, by the
nature of its work and outreach, touched multiple facets of the
Boston community. In order to
become this, we needed somebody driven, entrepreneurial, who
would be forceful about change.
One of the things that set Jill apart from the other candidates
wasn’t that she had spent a lifetime
in contemporary art but rather than she understood how to work
with audiences. She had the
passion to bring content and interactive thinking and approaches
to people of all ages across a
spectrum of interests, getting the ICA outside of an elite and
narrow comfort zone. She wasn’t
7 Christine Temin, “The ICA at 60: Where does the museum fit
in?” The Boston Globe, May 5, 1996.
8 Ibid.
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willing to accept that what the ICA had to offer, or what
contemporary artists had to say, was not
important for all kinds of people.
As part of her hiring agreement, Medvedow was allowed to
bring Vita Brevis with her and fold it into
the ICA’s programming, a move that proved critical over the
following years as the ICA strove to
reposition itself. As one journalist noted at the time, “Since the
ICA has so much trouble pulling
people in, putting art where people will virtually have to trip
over it may be a smart move.”9
Early Days
Shortly after her arrival, Medvedow put together a “business
planning group” comprised of three
board members and three outsiders including Sheryl Marshall,
who, as a top stockbroker, was a
known business leader in Boston; Nick Littlefield, a lawyer who
had served as Senator Edward
Kennedy’s Chief of Staff for 10 years; and, Mary Schneider
Enriquez, an art historian and critic who
had recently moved to Boston from Mexico City. (Marshall and
Schneider Enriquez would eventually
join the ICA board.) With the help of the business planning
group, Medvedow set out to disrupt the
unproductive conversations of the existing board about the
future of the ICA. As Medvedow recalled,
“We looked at a number of questions. What kind of audience
did we want? Did we want to stay small
and focused or did we want to broaden our offerings? What
should be the role of education? We
explored questions involving content, specifically if we should
become a collecting institution. And
finally we looked at whether we could do this work in our
current Back Bay location.” It didn’t take
long for the group to decide that the ICA needed to grow its
audience, expand its educational
initiatives, form a task force to look at the idea of collecting,
and begin looking for a new space. (On
two separate occasions, directors of the ICA who preceded
Medvedow explored relocating the
museum but were unable to garner board or community
support.)
Medvedow’s attention then turned to learning about the Boston
real estate market. While she didn’t
know if or how it would be possible, she was clear that the ICA
needed to be located on the water:
“Our job is uniquely difficult in that Boston is not a city that
embraces contemporary art. Since
everything about our work is unfamiliar, we’re always fighting
for an audience. We needed to be
located on the water in order to attract people and motivate
them to come back time and again. And a
waterfront location was also a perfect metaphor for what we do
which is to expand horizons.”
After many months of knocking on doors to get information on
Boston waterfront real estate,
Mevedow’s research picked up momentum when the
Commissioner of Parks and Recreation, Justine
Liff, referred her to Ed Sidman, one of Boston’s big real estate
developers and a major philanthopist.
Sidman suggested they meet in the lobby of his firm’s building
as opposed to his office, a request
which sent an immediate negative signal to Medvedow. But she
succeeded in flipping the switch:
9 Christine Temin, “Seeing the Light,” The Boston Globe, April
19, 1998.
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After listening to my pitch, he was ready to send me off with a
name of the next person I should
talk to when I said to him, ‘You know, I swim in your pool at
the Leventhal-Sidman Jewish
Community Center in Newton.’ And he says, ‘Oh really.’ And I
say, ‘Yes, and I frequently go to
the openings in the center’s gallery.’ The next thing you know
he’s saying, ‘Let’s go to my
office.’ So now we’re in his office and I’ve honed in on his
passion which is how to get members
of a JCC to engage in Jewish continuity and not just athletics.
We ended up having a deep,
intense conversation. The next thing I know, he has given me a
couple good names to pursue for
waterfront real estate. And for the next couple of years, I meet
with him regularly to advise him
on his project.
Following up on Sidman’s recommendations, Medvedow
eventually landed a meeting with the
Boston 2000 committee. Put together by Mayor Thomas Menino
to plan millenial activities for
Boston, one of the committee’s responsibilities was deciding
who or what should be designated the
.75 acre parcel, also known as Parcel J, on Boston’s Fan Pier.
Little did she know, the committee would end up being
Medvedow’s last stop in her real estate
search.
Fan Pier’s Parcel J
Described as “a wasteland of parking lots,”10 Parcel J was just
a tiny sliver of the 21 acre, 3-million
square foot, nine-block industrial area owned by the Pritzker
family, which was slated to be part of
the largest waterfront development in Boston’s history. The
proposed plan was to populate the space
with 800 residential units, 1,000 hotel rooms, 150,000 square
feet of civic and cultural space, parks
and open space, and an extension of a walkway along Boston
Harbor.11 In a deal with the city of
Boston, which enabled them to expand the size of their
proposed hotels,12 the Pritzkers agreed to
donate Parcel J to a cultural site.
Medvedow met with the Boston 2000 committee in the spring of
1999. It was a Thursday. Impressed
with her ideas for a future ICA on the waterfront, the committee
suggested she present to the Boston
2000 subcommittee on Parcel J. Much to her disbelief,
Medvedow found herself committing to giving
a formal, “this-is-what-we-have-in-mind” presentation the next
Tuesday. As she recalled, “The
decision to go after the parcel was a big leap of faith. It was
very hard to imagine we could make the
case given how weak we were.”
Scraping together $5,000, Medvedow hired an architect who
drew a mock-up of a future ICA perched
on Parcel J. In giving the architect directives, Medvedow was
concerned with one detail: that the
10 Geoff Edgers, “How They Did It,” The Boston Globe,
December 6, 2006.
11 “Institute of Contemporary Art, Boston Announces Four
Internationally Recognized Architecture Firms….” ICA Press
Release, December 13, 2000.
12 It is not uncommon in commercial real estate for a developer
to designate a parcel of land in exchange for being allowed to
add height to a building as a way
to maximize revenue and earning potential.
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structure fit on the land that was available. Along with the
mock-up, Medvedow and a couple ICA
staff members spent the weekend before the presentation
making boards of eight museums — ranging
in size and cost from the Milwaukee Art Museum to
Minneapolis’ Weisman Art Museum to the Getty
in Los Angeles — that had been built in different cities since
the early 1990s. Their idea was to stress
the point that these museums had catapulted civic life and
economic development in their respective
cities and had played an important role in urban rebirth.
Medvedow arrived on the designated Tuesday to present and
found to her surprise that the ICA was
one of three finalists who were presenting. One of the other
finalists, a collaboration involving the
Wang Center, Boston Ballet and Boston Lyric Opera, proposed
a three-stage complex, described as a
cross between Sydney’s Opera House and New York’s Lincoln
Center. The $100 million complex
would include a 2,400-seat opera and ballet house, a 500-700-
seat playhouse, and a floating stage that
could accommodate an audience of 1,000. Due to its size, the
complex was expected to exceed the
allotted space and would require some additional land that had
been set aside by the Pritzkers for an
office tower. The other finalist was a relatively unknown
Boston-area entrepreneur who wanted to
develop a $40 million Fan Pier Performing Arts and Film Center
that would include a 700-seat recital
hall and 125-seat partially open-air theater.
In her pitch, Medvedow stressed that the new ICA would be “a
public destination and the
architectural heartbeat of the city.”13 Funded by a $40 million
capital campaign, the four-story
building would occupy 60,000 square feet and would include a
400-seat theater, and a roof sculpture
garden. It would hold up to 2,000 visitors. Medvedow left the
presentation thinking that the museum
had a slim shot, at best, of winning Parcel J, but she was
increasingly convinced that the waterfront
was the right location for a new ICA. The committee’s final
decision would be announced in
November.
Drumming up Support
In the intervening six months, Medvedow got busy educating
the public, particularly local politicians,
residents and area artists, on the ICA’s plans for a new home on
Fan Pier. To help her sell the idea,
Medvedow approached Gloria Larson, who at the time was a
partner at one of Boston’s premier law
firms who specialized in real estate development and
government. At the time, Larson was chairman
of the board of the Convention Center Authority and was in the
middle of her own campaign to get a
new convention center built in South Boston. As Larson
explained, “I joined the ICA ‘campaign’ as
both a lawyer and an advocate. I felt like Jill and I were
traveling down the same path together.”
In planning the campaign’s strategy, Larson recalled: “We
asked ourselves, ‘Who do we need to
touch who normally won’t get touched in a process like this?
Who would normally never support
building an ICA on South Boston’s waterfront?’” After a bit of
reflection, Larson decided to visit a
couple of South Boston’s key political leaders. Larson took
Medvedow to meet James Kelly, who at
13 Maureen Dezell, “ICA Faces Fund-raising Challenge,” The
Boston Globe, March 10 2000.
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the time was the city council’s president, state senator Stephen
Lynch, and state representative Jack
Hart, all of whom she knew from her law practice and her work
on the convention center. The
purpose of the meeting was to educate them on the ICA’s
development plans and to hear their
concerns.
After introductions, Kelly began the conversation by saying,
“You can’t tell us you’re going to build
a contemporary art museum next to Southie.” Medvedow
responded by saying, “Let me tell you about
it. Let me tell you about the programs we have and how I want
to bring kids from South Boston in,
and how the world of art is an opportunity to expand their
horizons in ways that I know you would
support.” Hearing her out, Kelly’s concerns turned to the
infamous Robert Mapplethorpe exhibit.
Shown at the ICA in the early 1990s, the exhibit caused great
controversy for its sexually explicit
photographs. “You have to promise me you will never do a
show like that again,” Kelly stated.
Medvedow retorted with: “You know I can’t make that promise.
That would be like me asking you to
promise that you’ll never do anything controversial again. But
how about I promise you that if I’m
going to do anything like that, I will give you notice so that you
won’t be caught by surprise.” Kelly
quickly responded with, “Well if you ever do anything like that
I will organize a picket.” “Well if you
organize a picket,” Medvedow said, “I’ll bring you coffee,
because that kind of attention is exactly
what we need to build an audience for the ICA in Boston.” It
was at this point in the exchange that
Kelly turned to Larson and said, “Larson, I like your friend
Jill.”
In November 1999 the Boston 2000 committee announced that
the ICA had won the Parcel J
competition. Medvedow believed one of the main reasons the
ICA was chosen was because the
mock-up demonstrated that from a space perspective, the
museum would be a perfect fit. In addition,
the ICA had successfully proven its financial viability to the
committee by identifying $12 million—
of which $6 million would come from the sale of its Boylston
building—of the estimated $40 million
needed for the project. Larson believed that Medvedow’s ability
to assess her audience before sharing
her vision was key to sealing the deal. “She had a way of
presenting to large and small audiences the
concept of a new ICA so that it became something they could
own too. She was able to tell the story
in ways that each audience could hear.”
Of course, there were many skeptics of the committee’s decision
and the ICA’s plan. Some thought
that locating the ICA away from other cultural attractions was a
mistake. After all, it had not been
able to attract visitors when it was located in the heart of
Boston’s tourist district. Then there was the
whole issue of money, something the ICA had little of and had
no history of raising. While the land
was free, the building and operational costs would more than
test the museum’s fundraising
capabilities. As Paul Buttenwieser, ICA board member and
Boston philanthropist, put it, “The key
question is whether the wider community of philanthropic and
arts supporters will see this as a
credible project they want to be involved with.”14
14 Maureen Dezell, “ICA Faces Fund-Raising Challenge,” The
Boston Globe, March 10, 2000.
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But then there were those who were quietly cheering for the
ICA. As one Boston Globe journalist
pointed out, “While informed observers think it unlikely the
ICA will realize its goals, an unusual
number hold out hope that it will. In a city better known for its
enthusiasm for sports, politics and
revenge than for boosterism, optimists and cynics admire the
organization for attempting to defy the
formidable odds against building something innovative in
Boston.”15
And then there was the ICA’s biggest cheerleader. As Larson
noted, “Jill believed in the vision
herself. She had no doubt that it could be done.”
Now What?
After winning the right to build on Parcel J, one of Medvedow’s
first orders of business was to hire a
director of development, a position that had not previously
existed at the ICA. A consultant
Medvedow had hired to help develop a fundraising and
endowment strategy suggested she talk to the
MFA’s marketing director Paul Bessire. This same consultant,
however, warned Medvedow that
Bessire would never leave the MFA for the ICA. She wanted to
talk to him nevertheless.
Meeting over a drink, Medvedow and Bessire connnected
immediately after discovering they lived in
the same neighborhood and their kids went to the same school.
When the conversation turned to the
purpose of their meeting Medvedow was blunt: “Why,” she
asked, “would you rather stay at the MFA
than be a part of making something totally new that could
reshape how the city of Boston thinks
about contemporary art?”
By spring 2000, Bessire was the ICA’s new Director of External
Relations. Shortly after his arrival
the ICA launched a $50 million “Campaign for the New ICA” —
which eventually grew to $62
million — on the back of $6 million that had been committed by
two ICA trustees. As Bessire
explained, launching a campaign with far less than 50% of
funds already raised was a very
unconventional strategy, but it was one that made sense for an
organization that wanted to send a
message to the community: “The strategy was to demonstrate
that there was a commitment on the
part of the board and the institution to make this project happen
and a good fundraising strategy
always begins with the family.”
In concert with developing a fundraising strategy and finding
and hiring the right talent to oversee it,
Medvedow was eager to bring in new blood—which was to say
business leaders with clout16 —to the
ICA’s 35-member board, and ease out those whose vision was
not aligned with where she was taking
the museum. Success in winning the rights to the land coupled
with Medvedow’s vision of investing
in Boston’s future as opposed to its past, Bessire noted, had put
the ICA in a very different light in the
eyes of potential board members. By early 2001, there were 13
new members, the majority of whom
15 Maureen Dezell, “ICA Faces Fund-Raising Challenge,” The
Boston Globe, March 10, 2000.
16 Geoff Edgers, “How They Did It,” The Boston Globe,
December 6, 2006.
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came from the private equity, venture capital, and financial
services sector. (See Exhibit 1 for list of
those who joined the ICA board between 1998 and 2001.)
Although Medvedow’s to-do list after winning the rights to
build on Parcel J was populated with
tasks relating to the museum’s future home, she never lost site
of the importance of not only keeping
the ICA up and running—and this included bringing in high-
profile artists like Cornelia Parker,
Olafur Eliasson, and Ellen Gallagher, and sponsoring public art
projects such as Art on the Emerald
Necklace that received national recognition—but publicly
repositioning the ICA by building
excitement for its future and demonstrating the legitimate need
for a new building. As Rawn noted, “I
cite this as one of the most notable elements of Jill’s leadership.
Too often you see institutions plunge
ahead on a new capital investment and they really let the
existing institution wither and put
themselves at risk for not succeeding in the new place.”
One of the most notable ways Medvedow involved the public in
the future ICA was in the selection
of architects.
Selecting an Architect
The ICA began its architect search with a couple of basic
criteria. As Cipolla explained in early 2001,
“We want an architect with a deep understanding of the civic.
This is not just a building, not just an
interior showcase. It has a civic role. A lot depends on what
happens outside the four walls.”17 In
addition, Medvedow noted that the museum was looking for an
individual or a firm that had not
completed a prominent building in the United States: “The ICA
has a long tradition of supporting the
work of emerging artists.”18
The ICA traveled down a fairly unconventional path when it
came to the actual selection process.
Instead of following the typical competition approach whereby a
select number of firms would be
paid an agreed upon sum of money to come up with a specific
proposal, Medvedow decided on a
different course of action. She explained:
One of our board members who was an architect said to me, ‘Be
careful about competitions
because you get what you pay for. In order to have a healthy
competition, you will need to offer
up significant funds so that architects will invest the time it will
take to come up with smart, well
thought through proposals.’ So, we decided not to do a
competition because we were certain we
didn’t have the money. And given that we’re in the business of
reviewing artists’ work over time
we felt that we could judge the work of architects ourselves.
With that decision made, Medvedow put together an Architect
Selection Committee. Headed by Nick
Pritzker, the committee included Medvedow, Cipolla, Henrique
de Campos Meirelles, President of
17 Robert Campbell, “Designers Vie for a Shot at the ICA,” The
Boston Globe, March 22, 2001.
18 Robert Campbell, “A Vision Fulfilled at Harbor’s Edge,”
The Boston Globe, December 1, 2006.
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Fleet Global Banking, Barbara Lee, Vice Chair of the Board of
Trustees and philanthropist, and Ellen
Poss, Vice Chair of the Board of Trustees and philanthropist.
Medvedow decided not to include any
architects in the group, as she didn’t want the committee to be
driven by any one architectural agenda.
The committee’s first assignment was to establish goals and
criteria, which would help guide the ICA
through the selection process. To help the committee, which had
no baseline knowledge of
architecture, Medvedow hired an architectural historian from
Harvard University to lead a seminar on
contemporary architecture for the group. The historian helped
the committee establish goals and
criteria (Exhibit 2), and drew up a list of 30 architectural firms
for consideration.
Using the list of goals and criteria as a guide, the committee
scaled down the list of 30 firms to twelve
and ultimately to four. The chosen four included Studio Granda
from Iceland, Boston-based Office
d’A, Peter Zumthor of Switerland, and Diller + Scofidio from
New York. Medvedow traveled to meet
the four firms and each was invited to Boston to present their
work to the committee.
Medvedow recognized that in order for the ICA to matter to a
wider audience, more people had to be
involved in the dialogue on the ICA’s building plans. On March
24, 2001, the ICA hosted “Building
A Vision: Four Architects’ Views”, a public presentation at the
Copley Theater where the final four
firms were asked to present. Medvedow laid down one rule for
the presenters: because the purpose of
the presentation was to enable the firms to show their work and
discuss their philosophies towards
contemporary art, they were not to present their ideas for
building a new ICA. She explained her
reasoning: “The minute there’s an image out there of what
architect X could create I feared that I
would have to manage a multitude of stakeholders who were
wedded to architect X’s proposal. But
what if we didn’t choose that proposal or what if we chose it
and it substantially changed during the
design process? I didn’t want to be caught in that kind of public
negativity.”
The presentations drew an impressive crowd. “People were
literally waiting in line to get in,”
Medvedow recalled. “There was not an unfilled seat in the
theater. This level of transparency in
museum planning had never happened before in Boston. There
was enormous enthusiasm behind our
out-of-the-box, if not downright off-the-wall project, and the
public was thrilled that we wanted to
share our ideas. In addition there was great excitement over
what might happen down on the
waterfront.” While not responsible for the ultimate decision,
attendees were queried on their thoughts
through a survey with questions that included: What did you
like about the work presented? What do
you think are some of the most important design opportunities
provided by the waterfront site? Do
you find any of the architects’ design philosophies to be
particularly responsive to the institutional
mission of the ICA?19
Of the four presenters, Peter Zumthor and Diller + Scofidio
stood out as much for their work as for
their general philosophy towards architecture.
19 Robert Campbell, “Designers Vie for a Shot at the ICA,” The
Boston Globe, March 22, 2001.
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Diller + Scofidio
Winners of the MacArthur Foundation “genius” grant in 1999—
marking the first time architects had
been awarded the grant—the husband and wife team of Richard
Scofidio and Elizabeth Diller was
known for integrating media and architecture. As Diller stated
during their presentation, “Architecture
and new technologies need not be adversaries. The union can
actually be quite fertile.”
Diller + Scofidio’s resume was quite deep when it came to the
work they had done on the inside of
museum walls. They had worked with many visual and
performing artists and had completed
numerous art installations. Their most well known indoor
architectural work was the renovation of the
Brasserie restaurant located in the Seagram building in New
York. As Diller explained, one of their
goals in redesigning the space was to find ways to connect the
restaurant, which was below ground
and without natural light, back to the street. They accomplished
this by getting a blurred video
snapshot of every person as they came through the revolving
door. The image was displayed above
the bar, with every new entrance image pushing the previous 15
to the right. (See Exhibit 3.)
When it came to building, however, their resume was quite thin;
in fact they had never built a
building in the United States. Their most renowned work was
the Blur Building, a media pavilion
built for the 2002 Swiss Expo in Neuchatal, which was less a
building and more a suspended platform
enveloped by a man-made cloud of fog. (See Exhibit 4.) Blur,
which was a temporary structure
where no one lived or worked, showcased Diller + Scofidio’s
belief that “architecture must always
question material and spatial conventions.”
Peter Zumthor
Of the four finalists, Peter Zumthor was the best known and the
most experienced architect, with the
art museum in Bregenz, Austria (Kunsthaus Bregenz) and the
thermal baths (Therme Vals) in
Switzerland being two of his most famous works. (See Exhibits
5 and 6.) As one journalist wrote,
“Although [Zumthor] cultivates the disarming role of simple
artisan-architect, he is responsible for
some of the most radical buildings of our time. His
sophisticated, demanding, exquisite structures of
rigidly reductive minimalism, in which every detail has
enormous aesthetic and emotional power,
create their own world of Zen-like, concentrated beauty – an
immutable perfectionism that probably
scares off as many clients as it attracts.”20
Zumthor was not known for a particular style, but, as one
observer noted, a number of themes were
interwoven throughout much of his work: celebration of place,
engagement of all the human senses,
deep understanding of space, light and materiality.21 For
Zumthor, architecture “[had] it’s own realm.
20 Ada Louise Huxtable, “Architecture’s Best Kept Secrets,”
Wall Street Journal, May 15, 2001.
21 Peter Davey, “Zumthor the Shaman,” Architectrual Review,
October 1, 1998.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 13
It has a special physical relationship with life. I do not think of
it primarily as either a message or a
symbol, but as an envelope and background for life which goes
on in and around it…”22
While his work was renowned, so was his need to control. “I
like to control the buildings I do,” he
admitted to the crowd gathered in the Copley Theater. During
his presentation Zumthor recounted his
frustration towards a project he was awarded in Berlin that was
never complete: “This was eight
damned years ago and for eight years these people wanted me to
make compromises and
compromises,” he explained showing great frustration, and
giving members of the Architect Selection
Committee some pause.23
Decision
In April 2001, the ICA announced that Diller + Scofidio had
been chosen to build the new building.
Liz Diller believed they were tapped because of their belief that
there needed to be a partnership
between the new building and the art it would house: “From the
beginning we said neither would play
a supporting role for the other.” From Medvedow’s perspective,
while the choice of Diller + Scofidio
was motivated largely by their “sheer brilliance,” there was
another important reason: “Because they
didn’t have a lot of experience they had as much to gain as we
did, and consequently as much to lose
as we did. So we all had as much at stake to make it work.”
By the time the ICA broke ground in September 2004, half of
the $62 million had been committed,
the majority coming from the ICA’s board of trustees and
corporate donors. Once again, the ICA was
relying on an unconventional and risky development strategy.
As Bessire explained, “Development
people always say the minute you break ground, people assume
it’s a done deal and will be reluctant
to give money. We broke ground and people started believing in
us.”
Stumbling Blocks
The ICA faced several major challenges in its effort to erect a
new home on Fan Pier. As Medvedow
explained, building a new waterfront property in Boston was an
“arduous” task when it came to
obtaining all the required state and city approvals. In fact the
ICA had to get dozens of approvals,
worth millions of dollars in legal fees, between the time it was
granted the land and when it opened its
doors in 2006. As Medvedow noted, the ICA’s ability to
navigate these waters was surprising to
many: “A lot of people thought that even though we had gotten
the land, the process of getting all the
approvals would end up killing us. We learned quickly who we
needed to talk to and convince to
grant us the approvals we needed.”
Just months away from breaking ground on the building, the
Pritzker family’s development plans for
the 21 acre lot surrounding the ICA were aborted. The family
announced in late 2003 that it would be
putting the land up for sale. Honoring the commitments they
made to the city of Boston, the Pritzkers
22 Peter Davey, “Zumthor the Shaman,” Architectrual Review,
October 1, 1998.
23 Geoff Edgers, “How They Did It,” The Boston Globe,
December 6, 2006.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 14
let it be known publicly that the new buyer would have to agree
to the building commitments they
made to the city of Boston, including setting aside the .75 acre
parcel for the ICA.24 The Pritzker’s
decision was a big disappointment for the ICA. As Medvedow
noted, “We lost a partner that
recognized the ICA as an asset.”
Finally, in April 2006, just five months before the new building
was scheduled to open, the ICA faced
another major change. Macomber, a 100-year old construction
firm that was considered one of
Boston’s leading builders, had fallen months behind schedule
and was dealing with the legal
aftermath of a recent accident on one of its construction sites
which claimed three lives. The ICA
responded by bringing in another firm to complete the work. In
August, Medvedow announced that
because of construction delays the ICA would have to delay its
September opening. In explaining the
postponement, Medvedow told The Boston Globe, “Our building
is beautiful, it’s close to completion,
and it works. But you only get one chance to make a first
impression. When we open, we are going to
hit the ground running. In the long life of this building, this is a
very insignificant and brief hiccup.”25
On December 10, 2006, the new ICA opened to more than 8,000
visitors. (See Exhibit 7.)
If They Build It, Will They Come?
The ICA’s ability to oversee the construction of a new building
on Boston’s waterfront by an
architecture firm that had never built a building in the United
States, raise over $75 million—
surpassing the capital campaign goal of $62 million—and
welcome over 280,000 visitors in its first
year—well over the 200,000 that was needed to break even—
was, in most people’s minds,
miraculous. The question posed by one museum director a year
before the new ICA opened its doors,
“Do you really think there are five times the market for the
ICA’s program than there is right now and
that the only reason they’re not getting them now is building
size?”26 had been answered “yes”.
But sustaining the attendance level would be the main challenge
going forward. New museums
tended to attract huge crowds in their first year of operation
only to see attendance taper off. San
Francisco’s Museum of Modern Art, which opened its new
building in 1995 saw its attendance soar
from 250,000 to 800,000 in its first year, and then come back
down to 600,000 in its second year. The
Peabody Essex Museum in Massachusetts more than doubled its
attendance in year one only to see it
decline in year two. As that museum’s deputy director stated,
“The first year [attendance] doesn’t
matter. It’s everybody looking at it because it’s there. The
‘lookyloos,’ I like to call them.”27
But in the case of the ICA, the ‘lookyloos’ seemed to be holding
their gaze. In 2008 and 2009, the
ICA had a combined attendance record of well over 450,000.
24 Thomas Palmer, “Fan Pier Site up for Sale,” The Boston
Globe, December 19. 2003.
25 Geoff Edgers, “Museum Sees Weeks-Long Construction
Delay,” The Boston Globe, August 4, 2006.
26 Geoff Edgers, “Under Construction: An Arts Renaissance,”
The Boston Globe, April 10, 2005.
27 Ibid.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 15
Exhibit 1 New Additions to the ICA Board (1998-2001)
Pat Stavaridis, Art Collector
Sheryl Marshall, Vice President, Donaldson, Lufkin and Jenrette
Vivien Hassenfeld, Designer, Hasbro
Mary Schneider Enriquez, art critic and independent curator
Henrique de Campos Meirelles, President and Chief Operating
Officer, Bank of Boston
Robert Davoli, Sigma Partners
Charles Rodgers, Chairman, WFD Consulting
Andrew Goldfarb, Managing Director, JAFCO America
Ventures
Anthony Terrana, oral surgeon
Tim Ferguson, Senior Managing Partner, Putnam Investments
Jonathan Seelig, Co-Founder, Akamai
Nicholas Adams, Senior Vice President, Partner and Equity
Portfolio Manager,
Wellington Management
Jean-Francois Formela, Investment Principal, Atlas Venture
Capital
Source: ICA.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 16
Exhibit 2 Goals and Criteria for New ICA
Goals
Architectural
Advancement
For almost 65 years, the Institute of Contemporary Art has
played a pivotal
international role as a vanguard institution by championing new
artistic practice
and delivering innovative programming. The ICA’s new
building should advance
architectural thought and practice, reflecting the artistic mission
of the ICA.
A Powerful
Visitor
Experience
The architect selected to design the new ICA should
demonstrate a sensitivity to
the exhibition and interpretation of contemporary art and to
providing a powerful
visitor experience. Through programs, architecture, education
and technology, the
new ICA should provide future generations with access to the
finest examples of
creativity, learning and inspiration.
Civic
Responsibility
The new ICA will be a visual and physical destination for
Bostonians and visitors
alike, and a cornerstone of the new Fan Pier. It will relate to the
intimate scale of
individual human beings while responding to the unique
character of its urban
context and waterfront location. The chosen architect should
have a sense of
responsibility to the public realm and a capacity to create a
building with
international public significance for Boston’s 21st century.
Criteria
Advances an architectural vision for the future
Creates a building whose presence can shape the waterfront
Innovates spatially
Scales building to human proportions
Shapes and uses natural light well
Attends to detail and construction
Possesses a vision of the museum’s public role in the city
Focuses on only a few, important projects
Respects the ICA’s professional and financial resources
Has a career trajectory where a breakthrough building is likely
Source: ICA.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 17
Exhibit 3 The Brasserie
Source: Diller + Scofidio
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 18
Exhibit 4 Blur Building, Swiss Expo
Source: Diller + Scofidio
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 19
Exhibit 5 Kunsthaus Bregenz
Source: Hans Peter Schaefer.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 20
Exhibit 6 Therme Vals (Thermal Baths)
Source: Roland Zumbüh.
TURNAROUND AND TRANSFORMATION: LEADERSHIP
AND RISK AT BOSTON’S INSTITUTE OF
CONTEMPORARY ART
Cate Reavis
NOVEMBER 9, 2010 21
Exhibit 7 The New ICA
Source: Christopher Peterson.
2/11/2019 Lake Tahoe houses sit vacant while locals struggle to
find affordable housing - SFChronicle.com
https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses-
sit-vacant-while-locals-13601651.php 1/7
L I F E S T Y L E L I F E S T Y L E L I F E S T Y L E // //
// T R AV E LT R AV E LT R AV E L
Lake Tahoe houses sit vacant while localsLake Tahoe houses sit
vacant while localsLake Tahoe houses sit vacant while locals
struggle to find affordable housingstruggle to find affordable ho
usingstruggle to find affordable housing
By Dave ZookBy Dave ZookBy Dave Zook
a.m.
Some Tahoe-area destinations are changing their rules around
vacation rentals.Some Tahoe-area destinations are changing
their rules around vacation rentals.Some Tahoe-area
destinations are changing their rules around vacation rentals.
Photo: iStockphoto / Getty ImagesPhoto: iStockphoto / Getty
ImagesPhoto: iStockphoto / Getty Images
2/11/2019 Lake Tahoe houses sit vacant while locals struggle to
find affordable housing - SFChronicle.com
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sit-vacant-while-locals-13601651.php 2/7
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At a standing-room-
only town hall meeting in January at Sierra Nevada CollegeAt a
standing-room-
only town hall meeting in January at Sierra Nevada CollegeAt a
standing-room-
only town hall meeting in January at Sierra Nevada College
in Incline Village, Nev., residents voiced passionate opinions on
a question thatin Incline Village, Nev., residents voiced passio
nate opinions on a question thatin Incline Village, Nev., residen
ts voiced passionate opinions on a question that
has chafed the Lake Tahoe area for decades: What’s the best wa
y to house thehas chafed the Lake Tahoe area for decades: What
’s the best way to house thehas chafed the Lake Tahoe area for
decades: What’s the best way to house the
hordes of vacationers who descend on the lake year-
round?hordes of vacationers who descend on the lake year-
round?hordes of vacationers who descend on the lake year-
round?
“They come and party and leave trash in the streets, and take ho
using away from“They come and party and leave trash in the str
eets, and take housing away from“They come and party and leav
e trash in the streets, and take housing away from
the locals,” a longtime resident said. “But I and many others co
uldn’t afford tothe locals,” a longtime resident said. “But I and
many others couldn’t afford tothe locals,” a longtime resident sa
id. “But I and many others couldn’t afford to
live here unless I rented out my spare bedroom.”live here unless
I rented out my spare bedroom.”live here unless I rented out m
y spare bedroom.”
“Plus, they bring in millions in tax dollars,” a woman added.“Pl
us, they bring in millions in tax dollars,” a woman added.“Plus,
they bring in millions in tax dollars,” a woman added.
Such is life for Tahoe locals: The crush of tourists can often fee
l overwhelming,Such is life for Tahoe locals: The crush of touri
sts can often feel overwhelming,Such is life for Tahoe locals: T
he crush of tourists can often feel overwhelming,
but it is also the lifeblood of the economy. The region, which en
compasses fivebut it is also the lifeblood of the economy. The r
egion, which encompasses fivebut it is also the lifeblood of the
economy. The region, which encompasses five
counties in two states, sees around 3 million visitors a year.cou
nties in two states, sees around 3 million visitors a year.countie
s in two states, sees around 3 million visitors a year.
At issue that evening was the management of short-
term rentals —
units leasedAt issue that evening was the management of short-
term rentals —
units leasedAt issue that evening was the management of short-
term rentals — units leased
for 30 days or less at a time. Think ski cabins, lakeside lodges,
vacation condosfor 30 days or less at a time. Think ski cabins, l
akeside lodges, vacation condosfor 30 days or less at a time. Thi
nk ski cabins, lakeside lodges, vacation condos
and the plethora of other housing options available on sites such
as Airbnb andand the plethora of other housing options availabl
e on sites such as Airbnb andand the plethora of other housing o
ptions available on sites such as Airbnb and
VRBO. STRs, as they’re known, are a crucial source of income
for residents andVRBO. STRs, as they’re known, are a crucial s
ource of income for residents andVRBO. STRs, as they’re know
n, are a crucial source of income for residents and
municipal governments in an area where tourism is the dominan
t industry, butmunicipal governments in an area where tourism i
s the dominant industry, butmunicipal governments in an area w
here tourism is the dominant industry, but
they’ve saddled communities with all sorts of nuisances: illegal
parking,they’ve saddled communities with all sorts of nuisances
: illegal parking,they’ve saddled communities with all sorts of n
uisances: illegal parking,
excessive noise, wild partying, trash.excessive noise, wild party
ing, trash.excessive noise, wild partying, trash.
“Opinions of STRs vary dramatically,” says Jeff Loux, town ma
nager of Truckee.“Opinions of STRs vary dramatically,” says Je
ff Loux, town manager of Truckee.“Opinions of STRs vary dram
atically,” says Jeff Loux, town manager of Truckee.
“We hear the spectrum from ‘STRs are the problem’ to ‘You can
’t possibly ban“We hear the spectrum from ‘STRs are the proble
m’ to ‘You can’t possibly ban“We hear the spectrum from ‘STR
s are the problem’ to ‘You can’t possibly ban
these, they are the lifeblood of the economy.’”these, they are th
e lifeblood of the economy.’”these, they are the lifeblood of the
economy.’”
Perhaps more consequential to a region where the median annua
l income hoversPerhaps more consequential to a region where th
e median annual income hoversPerhaps more consequential to a
region where the median annual income hovers
around $45,000, STRs stress the already limited housing supply
of Lake Tahoe —
around $45,000, STRs stress the already limited housing supply
of Lake Tahoe —
around $45,000, STRs stress the already limited housing supply
of Lake Tahoe —
http://www.sfchronicle.com/newsletters/travel/
2/11/2019 Lake Tahoe houses sit vacant while locals struggle to
find affordable housing - SFChronicle.com
https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses-
sit-vacant-while-locals-13601651.php 3/7
where 65 percent of homes sit vacant most of the year and local
s are increasinglywhere 65 percent of homes sit vacant most of t
he year and locals are increasinglywhere 65 percent of homes si
t vacant most of the year and locals are increasingly
struggling to find affordable housing.struggling to find affordab
le housing.struggling to find affordable housing.
The discord over STRs in Tahoe has been swirling for a decade,
since the rise ofThe discord over STRs in Tahoe has been swirl
ing for a decade, since the rise ofThe discord over STRs in Taho
e has been swirling for a decade, since the rise of
rental services. But the issue was reignited last fall when voters
in South Lakerental services. But the issue was reignited last fal
l when voters in South Lakerental services. But the issue was re
ignited last fall when voters in South Lake
Tahoe passed Measure T, an ordinance designed to phase out ST
Rs by 2021. TheTahoe passed Measure T, an ordinance designed
to phase out STRs by 2021. TheTahoe passed Measure T, an or
dinance designed to phase out STRs by 2021. The
measure passed by a mere 58 votes —
less than 1 percent of votes cast —
but themeasure passed by a mere 58 votes —
less than 1 percent of votes cast —
but themeasure passed by a mere 58 votes —
less than 1 percent of votes cast — but the
message became clear: South Lake’s citizenry is fed up with the
lack ofmessage became clear: South Lake’s citizenry is fed up
with the lack ofmessage became clear: South Lake’s citizenry is
fed up with the lack of
regulations on STRs.regulations on STRs.regulations on STRs.
While Measure T represents the most extreme example of action
on STRs, similarWhile Measure T represents the most extreme
example of action on STRs, similarWhile Measure T represents
the most extreme example of action on STRs, similar
debates are happening all around Lake Tahoe, exemplifying the
tightrope walkdebates are happening all around Lake Tahoe, exe
mplifying the tightrope walkdebates are happening all around L
ake Tahoe, exemplifying the tightrope walk
of attracting tourism and maintaining a town’s unique character.
of attracting tourism and maintaining a town’s unique character.
of attracting tourism and maintaining a town’s unique character.
“It is a balancing act,” Loux says. “On the one hand, this is a re
sort community“It is a balancing act,” Loux says. “On the one h
and, this is a resort community“It is a balancing act,” Loux says
. “On the one hand, this is a resort community
where people have rented their properties on a short-
term basis for decades. …where people have rented their propert
ies on a short-
term basis for decades. …where people have rented their propert
ies on a short-term basis for decades. …
On the other hand, we are a community, not just a resort.”On th
e other hand, we are a community, not just a resort.”On the othe
r hand, we are a community, not just a resort.”
To help ground future decisions in data, a report on the impact o
f STRs is soon toTo help ground future decisions in data, a repo
rt on the impact of STRs is soon toTo help ground future decisi
ons in data, a report on the impact of STRs is soon to
be released by the Mountain Housing Council of Tahoe-
Truckee, a coalition of 28be released by the Mountain Housing
Council of Tahoe-
Truckee, a coalition of 28be released by the Mountain Housing
Council of Tahoe-Truckee, a coalition of 28
business and community groups including ski resorts, governme
nts and realtybusiness and community groups including ski reso
rts, governments and realtybusiness and community groups incl
uding ski resorts, governments and realty
boards. Due out this month, the report focuses on the Truckee/N
orth Tahoeboards. Due out this month, the report focuses on the
Truckee/North Tahoeboards. Due out this month, the report focu
ses on the Truckee/North Tahoe
region, which includes the majority of Tahoe’s west shore, the n
orth shore goingregion, which includes the majority of Tahoe’s
west shore, the north shore goingregion, which includes the maj
ority of Tahoe’s west shore, the north shore going
east to where it borders Nevada, and up to Truckee, 15 miles no
rth of the lake.east to where it borders Nevada, and up to Truck
ee, 15 miles north of the lake.east to where it borders Nevada, a
nd up to Truckee, 15 miles north of the lake.
Seana Doherty, project manager for the council, hopes the study
will serve as aSeana Doherty, project manager for the council,
hopes the study will serve as aSeana Doherty, project manager f
or the council, hopes the study will serve as a
turning point for policymakers, as it will sharpen the focus on t
he scope of theturning point for policymakers, as it will sharpen
the focus on the scope of theturning point for policymakers, as
it will sharpen the focus on the scope of the
issue. For example, the council found that 13 percent of the esti
mated 38,801issue. For example, the council found that 13 perce
nt of the estimated 38,801issue. For example, the council found
that 13 percent of the estimated 38,801
housing units in Truckee and North Tahoe are being rented on a
short-
termhousing units in Truckee and North Tahoe are being rented
on a short-
termhousing units in Truckee and North Tahoe are being rented
on a short-term
basis. Doherty believes this number is significantly lower than p
eople wouldbasis. Doherty believes this number is significantly
lower than people wouldbasis. Doherty believes this number is s
ignificantly lower than people would
have assumed, indicating that the impact of STRs may not be as
large a part ofhave assumed, indicating that the impact of STRs
may not be as large a part ofhave assumed, indicating that the i
mpact of STRs may not be as large a part of
the housing problem as people imagined.the housing problem as
people imagined.the housing problem as people imagined.
2/11/2019 Lake Tahoe houses sit vacant while locals struggle to
find affordable housing - SFChronicle.com
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sit-vacant-while-locals-13601651.php 4/7
For now, the debate remains hotly contested, as different areas
of the lake takeFor now, the debate remains hotly contested, as
different areas of the lake takeFor now, the debate remains hotl
y contested, as different areas of the lake take
different approaches to management. Here is how the issue is sh
aping up arounddifferent approaches to management. Here is ho
w the issue is shaping up arounddifferent approaches to manage
ment. Here is how the issue is shaping up around
the lake.the lake.the lake.
South Lake TahoeSouth Lake TahoeSouth Lake TahoeSouth Lak
e Tahoe
Situated adjacent to a handful of tourist-
friendly casinos just over the stateSituated adjacent to a handful
of tourist-
friendly casinos just over the stateSituated adjacent to a handful
of tourist-friendly casinos just over the state
border in Nevada, South Lake Tahoe is the largest city on the la
ke, with 22,000border in Nevada, South Lake Tahoe is the large
st city on the lake, with 22,000border in Nevada, South Lake Ta
hoe is the largest city on the lake, with 22,000
residents.residents.residents.
It’s also a hotbed of STR controversy; Measure T is the most ag
gressive attemptIt’s also a hotbed of STR controversy; Measure
T is the most aggressive attemptIt’s also a hotbed of STR contro
versy; Measure T is the most aggressive attempt
to rein in short-
term rentals in the region. Supporters believe the measure could
to rein in short-
term rentals in the region. Supporters believe the measure could
to rein in short-
term rentals in the region. Supporters believe the measure could
add to the supply of long-
term rental options. Detractors worry about stymieingadd to the
supply of long-
term rental options. Detractors worry about stymieingadd to the
supply of long-
term rental options. Detractors worry about stymieing
cash flow to the city, including an estimated $4 million in annua
l tax revenue.cash flow to the city, including an estimated $4 mi
llion in annual tax revenue.cash flow to the city, including an es
timated $4 million in annual tax revenue.
The measure seeks to reduce occupancy limits for STR units and
eliminate themThe measure seeks to reduce occupancy limits fo
r STR units and eliminate themThe measure seeks to reduce occ
upancy limits for STR units and eliminate them
completely by the end of 2021 outside the tourist core, which ru
ns alongcompletely by the end of 2021 outside the tourist core,
which runs alongcompletely by the end of 2021 outside the touri
st core, which runs along
Highway 50 from Ski Run Boulevard to the Nevada border. Ther
e are about 1,400Highway 50 from Ski Run Boulevard to the Ne
vada border. There are about 1,400Highway 50 from Ski Run Bo
ulevard to the Nevada border. There are about 1,400
units outside the tourist core and 400 within it. Measure T grant
s full-
time Southunits outside the tourist core and 400 within it. Meas
ure T grants full-
time Southunits outside the tourist core and 400 within it. Meas
ure T grants full-time South
Lake Tahoe residents an exemption to the new rules.Lake Tahoe
residents an exemption to the new rules.Lake Tahoe residents a
n exemption to the new rules.
Before Measure T, the city had taken other measures to curb unc
hecked STRBefore Measure T, the city had taken other measure
s to curb unchecked STRBefore Measure T, the city had taken ot
her measures to curb unchecked STR
growth. In October 2017, for example, the city put a moratorium
on vacationgrowth. In October 2017, for example, the city put a
moratorium on vacationgrowth. In October 2017, for example, t
he city put a moratorium on vacation
rental permits, and at the end of that year enacted heavy fines fo
r partying,rental permits, and at the end of that year enacted hea
vy fines for partying,rental permits, and at the end of that year e
nacted heavy fines for partying,
illegal parking and other nuisance issues.illegal parking and oth
er nuisance issues.illegal parking and other nuisance issues.
Still, some residents felt that wasn’t enough. In late 2017, two S
outh Lake TahoeStill, some residents felt that wasn’t enough. In
late 2017, two South Lake TahoeStill, some residents felt that
wasn’t enough. In late 2017, two South Lake Tahoe
citizens started to circulate a petition to get Measure T on the b
allot. The Tahoecitizens started to circulate a petition to get Me
asure T on the ballot. The Tahoecitizens started to circulate a pe
tition to get Measure T on the ballot. The Tahoe
Neighborhoods Group formed to back it, and in April 2018 it su
bmitted theNeighborhoods Group formed to back it, and in April
2018 it submitted theNeighborhoods Group formed to back it, a
nd in April 2018 it submitted the
necessary signatures to get it on that year’s ballot.necessary sig
natures to get it on that year’s ballot.necessary signatures to get
it on that year’s ballot.
But it appears the fight is just beginning. In December, the Sout
h Lake TahoeBut it appears the fight is just beginning. In Dece
mber, the South Lake TahoeBut it appears the fight is just begin
ning. In December, the South Lake Tahoe
Property Owners Group filed suit against the city, saying the me
asure isProperty Owners Group filed suit against the city, sayin
g the measure isProperty Owners Group filed suit against the cit
y, saying the measure is
2/11/2019 Lake Tahoe houses sit vacant while locals struggle to
find affordable housing - SFChronicle.com
https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses-
sit-vacant-while-locals-13601651.php 5/7
unconstitutional and unenforceable and infringes on property o
wners’ rights.unconstitutional and unenforceable and infringes o
n property owners’ rights.unconstitutional and unenforceable an
d infringes on property owners’ rights.
The measure also took a blow when, on Dec. 24, an El Dorado C
ounty judge put aThe measure also took a blow when, on Dec. 2
4, an El Dorado County judge put aThe measure also took a blo
w when, on Dec. 24, an El Dorado County judge put a
temporary stay on the new occupancy limits that were set to tak
e immediatetemporary stay on the new occupancy limits that we
re set to take immediatetemporary stay on the new occupancy li
mits that were set to take immediate
effect, citing concerns over how it would affect the busy holida
y season.effect, citing concerns over how it would affect the bus
y holiday season.effect, citing concerns over how it would affec
t the busy holiday season.
As a result, it’s too early to tell whether the city will see a signi
ficant downturn inAs a result, it’s too early to tell whether the c
ity will see a significant downturn inAs a result, it’s too early to
tell whether the city will see a significant downturn in
STRs this year.STRs this year.STRs this year.
Placer CountyPlacer CountyPlacer CountyPlacer County
Stretching from Tahoma on the West Shore of Lake Tahoe to Ki
ngs Beach on theStretching from Tahoma on the West Shore of
Lake Tahoe to Kings Beach on theStretching from Tahoma on th
e West Shore of Lake Tahoe to Kings Beach on the
border of Nevada, eastern Placer County encompasses a diverse
range ofborder of Nevada, eastern Placer County encompasses a
diverse range ofborder of Nevada, eastern Placer County encom
passes a diverse range of
neighborhoods as well as the ski-
area communities of Squaw Valley andneighborhoods as well as
the ski-
area communities of Squaw Valley andneighborhoods as well as
the ski-area communities of Squaw Valley and
Northstar. It has about 2,500 STRs, according to the council’s st
udy, whichNorthstar. It has about 2,500 STRs, according to the
council’s study, whichNorthstar. It has about 2,500 STRs, accor
ding to the council’s study, which
brought in an estimated $10.6 million through transient occupan
cy taxes in 2018.brought in an estimated $10.6 million through t
ransient occupancy taxes in 2018.brought in an estimated $10.6
million through transient occupancy taxes in 2018.
To manage the yearly uptick in STR usage, the county is workin
g on reducingTo manage the yearly uptick in STR usage, the co
unty is working on reducingTo manage the yearly uptick in STR
usage, the county is working on reducing
nuisance issues and increasing enforcement. In December, Place
r updated itsnuisance issues and increasing enforcement. In Dec
ember, Placer updated itsnuisance issues and increasing enforce
ment. In December, Placer updated its
STR ordinances, including requiring a designated local contact
within 50 milesSTR ordinances, including requiring a designate
d local contact within 50 milesSTR ordinances, including requir
ing a designated local contact within 50 miles
for renters to respond to complaints; a good neighbor “fact shee
t” to be posted onfor renters to respond to complaints; a good ne
ighbor “fact sheet” to be posted onfor renters to respond to com
plaints; a good neighbor “fact sheet” to be posted on
the property about issues including parking, trash and noise; saf
ety information;the property about issues including parking, tras
h and noise; safety information;the property about issues includi
ng parking, trash and noise; safety information;
and more.and more.and more.
However, policymakers there appear less interested in limiting l
andowners’However, policymakers there appear less interested i
n limiting landowners’However, policymakers there appear less
interested in limiting landowners’
ability to rent, citing the wide range of services that the occupa
ncy taxes fund,ability to rent, citing the wide range of services t
hat the occupancy taxes fund,ability to rent, citing the wide ran
ge of services that the occupancy taxes fund,
which include the Sheriff’s Department, public transportation, t
ourismwhich include the Sheriff’s Department, public transporta
tion, tourismwhich include the Sheriff’s Department, public tran
sportation, tourism
marketing and more.marketing and more.marketing and more.
Jennifer Merchant, Placer County’s deputy CEO for Lake Tahoe
, says she isJennifer Merchant, Placer County’s deputy CEO for
Lake Tahoe, says she isJennifer Merchant, Placer County’s depu
ty CEO for Lake Tahoe, says she is
working to address the housing situation but doesn’t believe so
mething akin toworking to address the housing situation but doe
sn’t believe something akin toworking to address the housing sit
uation but doesn’t believe something akin to
Measure T is the solution. “Prohibiting STRs outright would not
necessarily yieldMeasure T is the solution. “Prohibiting STRs o
utright would not necessarily yieldMeasure T is the solution. “P
rohibiting STRs outright would not necessarily yield
the deserved result in improving our housing shortage, but it wo
uld have athe deserved result in improving our housing shortage
, but it would have athe deserved result in improving our housin
g shortage, but it would have a
negative impact on the local economy,” Merchant says.negative
impact on the local economy,” Merchant says.negative impact o
n the local economy,” Merchant says.
2/11/2019 Lake Tahoe houses sit vacant while locals struggle to
find affordable housing - SFChronicle.com
https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses-
sit-vacant-while-locals-13601651.php 6/7
Placer County has carried out surveys with second-
home owners and looked atPlacer County has carried out survey
s with second-
home owners and looked atPlacer County has carried out survey
s with second-home owners and looked at
similar mountain towns outside of Tahoe. The results haven’t co
nvincedsimilar mountain towns outside of Tahoe. The results ha
ven’t convincedsimilar mountain towns outside of Tahoe. The re
sults haven’t convinced
Merchant that limiting STRs would open up more long-
term housing. “I haven’tMerchant that limiting STRs would ope
n up more long-
term housing. “I haven’tMerchant that limiting STRs would ope
n up more long-term housing. “I haven’t
seen any empirical data that demonstrates a significant impact o
n long-
termseen any empirical data that demonstrates a significant imp
act on long-
termseen any empirical data that demonstrates a significant imp
act on long-term
rentals that directly correlates from regulating STRs,” she says.r
entals that directly correlates from regulating STRs,” she says.r
entals that directly correlates from regulating STRs,” she says.
TruckeeTruckeeTruckeeTruckee
The Nevada County town, with 17,000 residents and an estimate
d 1,700 STRs, isThe Nevada County town, with 17,000 resident
s and an estimated 1,700 STRs, isThe Nevada County town, wit
h 17,000 residents and an estimated 1,700 STRs, is
juggling a plethora of housing and commercial developments an
d upcomingjuggling a plethora of housing and commercial devel
opments and upcomingjuggling a plethora of housing and comm
ercial developments and upcoming
changes to the size and fabric of the town.changes to the size an
d fabric of the town.changes to the size and fabric of the town.
For example, a development is essentially doubling the size of T
ruckee’sFor example, a development is essentially doubling the
size of Truckee’sFor example, a development is essentially dou
bling the size of Truckee’s
downtown, including affordable housing units. A project is also
in the works todowntown, including affordable housing units. A
project is also in the works todowntown, including affordable h
ousing units. A project is also in the works to
build 137 deed-
restricted, prefabricated housing units near Truckee’s downtown
.build 137 deed-
restricted, prefabricated housing units near Truckee’s downtown
.build 137 deed-
restricted, prefabricated housing units near Truckee’s downtown
.
A long-
standing STR issue here: Some renters don’t register their prope
rties.A long-
standing STR issue here: Some renters don’t register their prope
rties.A long-
standing STR issue here: Some renters don’t register their prope
rties.
That means not only that the city doesn’t collect taxes on those
units but alsoThat means not only that the city doesn’t collect ta
xes on those units but alsoThat means not only that the city doe
sn’t collect taxes on those units but also
that the scope of the STR presence in Truckee is unknown to cit
y leaders.that the scope of the STR presence in Truckee is unkn
own to city leaders.that the scope of the STR presence in Truck
ee is unknown to city leaders.
To address that issue, in June 2016, Truckee was one of the first
five cities in theTo address that issue, in June 2016, Truckee w
as one of the first five cities in theTo address that issue, in June
2016, Truckee was one of the first five cities in the
nation to hire a company called Host Compliance to identify ST
Rs and help localnation to hire a company called Host Complian
ce to identify STRs and help localnation to hire a company calle
d Host Compliance to identify STRs and help local
officials register and track them. The company now has more th
an 150 clientsofficials register and track them. The company no
w has more than 150 clientsofficials register and track them. Th
e company now has more than 150 clients
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Airbnb’simpactinSanFranciscoSFChronicle.docx

  • 1. Airbnb’s impact in San Francisco SF Chronicle Carolyn Said July 12, 2015 Said,C. (2015, July 12, 2015). The Airbnb effect. San Francisco Chronicle. Retrieved from https://www.sfchronicle.com/airbnb- impact-san-francisco-2015/#1 Part 1 - The Airbnb effect
  • 2. At least 350 entire homes listed on Airbnb appear to be full-time vacation rentals, bolstering claims by activists that the service removes scarce housing from the city’s limited inventory. July 12, 2015 https://www.sfchronicle.com/airbnb-impact-san-francisco- 2015/#1 Stories by Carolyn Said | Design by Michael Grant | Development and graphics by Aaron Williams, Maegan Clawges and John Blanchard | Photography by Paul Chinn, Liz Hafalia, Jason Henry, Leah Millis, Amy Osborne, Lea Suzuki and Sam Wolson | Edited by Ben Muessig | Copyedited by Caroline Grannan Both Airbnb and its San Francisco critics are correct. Mostof the booming vacation-rental company’s local listings are only occasionally rented to travelers, as Airbnb says. However, at least 350 entire properties listed on Airbnb — and hundreds more listed on competing sites HomeAway/VRBO and FlipKey — appear to be full-time vacation rentals, bolstering claims by activists that the services remove scarce housing from the city’s limited inventory.Those are among the findings from a data dive into the threecompanies’ websites.
  • 3. It’s not the thousands of illegal hotels that critics allege have sprung up thanks to Airbnb and its rivals. But in a city wracked by a housing crisis, where a typical year sees just 2,000 new units added, a few hundred units off the market makes a significant dent. Using houses as hotels ranks among San Francisco’s most-contentious issues, debated fiercely by lawmakers, residents, advocates and corporations, and now likely headed for a ballot-boxshowdown. Opponents say short-term rentals are so lucrative that greedy landlords and tenants illegally divert precious housing stock to the practice. Proponents say services like Airbnb help regular people afford to stay in San Francisco, while forging international friendships. For decades, a seldom-enforced law banned vacation rentals in San Francisco. A new law enacted on Feb. 1 legalized such rentals, with conditions: hostsmust be full-time residents, whole-property rentals are capped at 90 days a year, and all hostsmust register with the city. But so far only a fraction of hosts— about 700 — have registered, while the city itself admits it struggles to catch scofflaws.Mayor Ed Lee this month created a new office to streamline registration and pursue violations. At the core of this dispute is a simple
  • 4. question that is devilishly difficult to answer: How do the impromptu inns affect the city’s housing market? To investigate, The Chronicle commissioned data- extraction companies Connotate Inc. and Import.io to harvest San Francisco information from the Airbnb, HomeAway and FlipKey websites on May 19. Connotate also extracted Airbnb listing data for The Chronicle on the same date in 2014, allowing for insights about year-over-year changes. Here’s a summary of the findings: Total listings and cost Amid all the controversy, the number of Airbnb listings in San Francisco grew 13.8 percent in the year, hitting 5,459, despite a significant portion of properties dropping out. The $202 average nightly cost among all property types — entire homes, private rooms and shared rooms — was up $19 (10.9 percent) from a year ago. Entire homes accounted for 3,264 of the 2015 listings, or 59.8 percent; private rooms numbered 1,969 or 36 percent and shared rooms tallied 226 or 4.1 percent. Prices for entire homes rose 13.3 percent to $255; private rooms edged up 6 percent to $123 and
  • 5. shared rooms ballooned 55 percent to $124. That increase was propelled by somenew hacker hostels — shared houses that pack young workers into bunk beds. Length and frequency of rentals Almost two-thirds— 64 percent — of all listings had 10 or fewer reviews over the past year, supporting the idea that they were rented only infrequently. However, the remaining listings racked up a significant chunk of guest reviews — a telling, albeit conservative indicator of usage as not all guests leave reviews. Properties listed on Airbnb both last year and this year averaged 22 reviews each. Among entire homes, 352 showed 26 or more reviews in the 52-week period. That means new guests checked in at least every otherweekand likely more often. An additional 349 new or returning listings for entire homes also had 26 or more reviews, attained during an indeterminate time period. Where are they? Vacation rentals are spread throughout San Francisco, in contrast to the city’s 34,000
  • 6. hotel rooms, which are heavily clustered near Moscone Center, Union Square and Fisherman’s Wharf. The Mission District, with 789 listings (up from 681 last year), remains the city’s most popular Airbnb location, followed by SoMa (388 listings) and the Western Addition/NoPa (369). Bernal Heights added 58 properties to become fourth-most-popular, with 264 spaces for rent. The Bayview added eightlistings (for a total of 58), and racked up 757 new guest comments in a year, pointing to rise in usage in one of the city’s lower-cost neighborhoods. Who hosts? While most Airbnb hostscontrol a single property, 205 hostshave threeor more listings. These super hostsaccount for 4.8 percent of all hosts, but control 993 properties — 18.2 percent of Airbnb’s local listings. Some are property managers, someare hacker hostels, someare legal hotels and someare people who may have siphoned off housing stock to make more money hosting visitors. Wrede Petersmeyer, who oversees Airbnb analytics, flew out from New York, to discuss the company’s data and defend its model. Most entire units in San Francisco are rented out fewer than 30 days a year, he said, while only 10 percent of hostsrent out a space where they do not live. Entire units were booked an average of 65 nights over the 12 months
  • 7. ended July 5, with a median stay of 29 nights, Airbnb said. “Data scrapes are unfairly used to draw specific — oftennegative — conclusions about a small subset of our host community,” he said, “when the reality is the vast majority are middle-class families sharing the home in which they live.” Since 60 percent of Airbnb’s local listings are entire homes, does that undercut the company’s assertion that guests and hostsare “sharing” spaces and forging friendships? “Local, authentic hospitality doesn’t always mean the host has to be thereto give you the keys,” Petersmeyer said. Part 2 - Living with Airbnb A family in the Castro welcomes guests to raise funds and make friends, while a landlord in Nob Hill stands accused of turning a Victorian home into a full-time hotel. July 12, 2015 https://www.sfchronicle.com/airbnb-impact-san-francisco-
  • 8. 2015/#2 Geoff Benjamin and his husband, Craig Persiko, oftenlist rooms in their four-bedroom Castro condo on Airbnb to raise spare cash. Another host identified on the site as Yumi has allegedly turned two entire flats on Nob Hill into Airbnb hotels, hosting a frequent stream of temporary renters, while also listing another roomfor rent in the Richmond District. The tales of thesehostsillustrate both sidesof the vacation- rental debate. Persiko chairs the computer science department at City College of San Francisco, while Benjamin recently launched the SoMa cabaret theatre and nightclub Oasis — a laborof love financed by Airbnb guests. Renting to travelers “in many ways became like a small-business loan that we didn’t have to repay,” Benjamin said. “In essence, it paid my salary for the two years it took to open Oasis.” The couple rent two to four rooms to travelers at different times. They paid for sleep-away camp for their children, Tobias, 10, and Serafina, 12, by renting out their bedrooms while they were away, for instance. They love meeting people, and the feeling seems mutual. Airbnb guests read to their kids and eat meals with the family. Benjamin said the
  • 9. rooms wouldn’t work as permanent housing, because most people prefer not to stay long with a family with children. “I’vealways wanted my children to identify as citizens of the world,” Benjamin said. “A really excited energy comes from people when they travel. We get to see the city through their eyes.” Over on Nob Hill, Katieanne Moran and her flatmates say they are surrounded by Airbnb renters. Long-term tenants in the middle flat of a Victorian triplex, they discovered that the top floor and basement flats had been converted to full- time Airbnb use, with six individual rooms going for $100 to $130 a night. “Rooms were being rented below us, above us and in the building all around us,” she said. “It was very disconcerting; we felt trapped.” Their landlady, Yumi, does not live in the building, the tenants said. When they voiced concerns about noise and security, the landlady said “she could do whatever she wanted and if it caused problems, we would be evicted.” Now they’re suing Yumi, whose legal name is Mingjing Li, for violating city ordinances, negligence and creating a private nuisance. Li
  • 10. and her attorney declined to comment. “This is one of the more egregious cases, but we oftensee landlords try to forcetenants out ... (to use) Airbnb and otherhosting platforms,” said Mark Hooshmand, the tenants’ lawyer. “Money motivates people to not follow regulations.” Part 3 - Hosts or hoteliers? The Chronicle compiled a conservative estimate of Airbnb listings functioning as full-time vacation rentals. July 12, 2015 https://www.sfchronicle.com/airbnb-impact-san-francisco- 2015/#3 How many San Franciscans use Airbnb to turn their places into year-round hotels? Airbnb knows the answer: Its transaction system captures exactly how many nights each property is rented. The company could remove listings after they exceed the legal limit of 90 days — but it doesn’t want to do so. It says those bad players would simply migrate to other platforms such as Craigslist that don’t police listings. Nor does it want to open the kimono on exactly how many days each place is rented out. And even though it now collects San Francisco’s 14
  • 11. percent hoteltax — remitting more than $1 million a month — it resists requests to tell the tax collector which homes are rented and how often. For someone looking in, guest reviews provide the best insight into how oftena unit is rented. The more reviews, the more frequentlya property hoststravelers. By counting how many reviews each property generated in the 365 days between our two data dives, we compiled a conservative estimate of places functioning as full-time vacation rentals. Among whole properties — houses, condos and apartments — listed on the site on May 19 in 2014 and 2015, 352 racked up 26 or more reviews over the year. That includes 104 with a stunning 51 or more reviews. For entire units that weren’t on the site last year, 349 had a total of 26 or more reviews. Some were new listings and somewere returning properties, so we can’tsay conclusively that all reviews were accumulated in a single year. Reviews underestimate usage. Airbnb says only two- thirds of guests leave reviews — meaning a property with 30 reviews in a year
  • 12. may have hosted 45 unique visitors, nearly one a week. San Francisco guests stay an average of 5.5 nights, Airbnb says, so 30 reviews translates into an average of 165 nights of occupancy — and likely more, accounting for guests who don’t leave reviews. Overall, the number of reviews for all San Francisco listings surged over the 12 months, rising by 44,842 to 105,192. Yet the majority of listings had only a handful of reviews, buttressing Airbnb’s assertion of infrequentusage. Looking at all categories of properties and including both repeats and the new or returned listings, 3,242 or 59.3 percent, have 10 or fewer reviews over their entire time on Airbnb. Another 958 had 11 to 25 reviews, while 639 had 26 to 50 reviews, implying usage between casual and frequent. But 620 homes and rooms, or 11.4 percent of listings, amassed 51 or more reviews, implying very heavy usage. The power of super hosts MostAirbnb hostscontrol just a single listing — but 206 hostscontrol threeor more listings. These “superhosts” account for 4.8 percent of all hosts, but run 18.2 percent of Airbnb’s San Francisco listings.
  • 13. Annette Fajardo says it’s no mystery why landlords prefer to rent to short-term visitors. “The dirty little secret is that owners do this to avoid rent control,” she said. At the same time,“rent-controlled tenants do it to make money on the units that the owners should be making money on.” She’s in a position to know. Her SF Holiday Rentals, in business since2002, is the city’s oldest short-term rental management site, she said. She handles 20 to 30 San Francisco listings and another seven to 10 in Pacifica, listing them on multiple websites, including Airbnb, HomeAway and its subsidiaryVRBO. Her listings focus on entire homes, many available year-round. About a third are in-law units; someare second homes; someare small buildings owned by a landlord, including her own Bernal Heights duplex (she lives elsewhere and rents both units to travelers). She does this all legally. Her property owners now request a 30-day minimum stay, she said, exempting them from the new short-term rental law. “They didn’t want the headaches of working with the government or (officials) snooping into their business practices,” she said. The change made her business easier, sinceshe
  • 14. doesn’t have to handle turnover every few days. Fajardo is a “super host” on both Airbnb and HomeAway, among the top 10 on both sites based on number of listings. MostAirbnb hosts(3,599 people, or 85 percent of hosts) control just a single listing, accounting for 66 percent of all properties. Another 434 list two properties. Many have a legitimate reason: Either they rent out two rooms in their home, or they rent out a room and also offer their entire home when they travel. However, 205 hostscontrol threeor more listings. These super hostsaccount for 4.8 percent of all hosts, but control 993 properties — 18.2 percent of Airbnb’s San Francisco listings. Many hostswith multiple listings are either property managers like Fajardo or people running hacker hostels, packing young techies into bunk beds for cheap crash space and camaraderie. Properties handled by managers can include ones skirting regulations, as well as those like Fajardo’s that adapted to become legal. Pillow
  • 15. (22 listings) and Guesthop (15 listings) are otherleading concierge services. Hacker hostels are problematic, as they may flout a variety of city rules on overcrowding, according to ScottSanchez, San Francisco zoning administrator. If they require a 30-day minimum stay, however, they may be allowed in most districts as group houses, he said. Airbnb’s top two super hostsboth run hacker hostels. Rob, No. 1 with 30 listings, rents rooms in Tech House SF but does not live there, residents said. Gatz, No. 2, runs Looky Home with 25 listings. Another group of people who control multiple listings seems to have turned entire homes or apartments into year-round pads for travelers. Often they have just a handful of listings in different parts of the city. Eighty Airbnb hostshave four to six listings, controlling 374 rentals among them. Generally that’s too few for them to be property management services — and too many for them to be legitimately living at those locations. It’s a rare San Franciscan who could rent six bedrooms at his or her home. As part of a renewed effort on enforcing
  • 16. vacation-rental laws, San Francisco sent violation letters this month to hostsin this category, targeting 15 hostswith 72 short-term rentals around the city. More than half are blocks of multiple units in brand-new high-rises in SoMa and Mid-Market, while others are two- to four-units buildings entirely devoted to short-term rentals, the City Planning Department said. The units were listed on various services, while somehad their own rental websites. “We want to crack down on people taking housing off the market and hurting San Francisco,” said TonyWinnicker, a senior adviser to Mayor Ed Lee. “But we also want law- abiding people to be able to do occasional (short-term rentals) because it helps many people afford to live in our city.” Part 4 - Airbnb hostscome and go In the year sinceThe Chronicle’s last data dive, 2,773 listings dropped off of Airbnb — although they were replaced by 3,492 new listings. July 12, 2015 https://www.sfchronicle.com/airbnb-impact-san-francisco- 2015/#4 Bootstrapping a business was eating up her cash,so the San Francisco woman listed her
  • 17. Marina apartment on Airbnb in 2013. She rented it out about 70 nights a year for $260 a night. “I would coordinate trips for work and family, camp out with friends or do ‘Airbnb arbitrage,’ where I’d stay at a less-expensive Airbnb place,” she said. The cute one-bedroom with views of the Golden Gate Bridge was always snapped up. “It was a self-perpetuating, ka-ching ka-ching money machine,” she said. “It was such a relief to know I could always rent it on Airbnb to subsidize my rent.” She made almost a year’s rent over two years. But when San Francisco implemented its vacation- rental rules in February, registering her unit seemed like a hassle. She feared that the city might compel Airbnb to identify hosts and prosecute those who failed to register. But her biggest worry — and the reason she declined to be named for this story— is that short-term renting violates her lease. She took down her listing. “I felt like I made my hay when the sun was shining, but now it’s over,” she said. In the year sinceThe Chronicle’s last data dive, 2,773 listings, or 57.8 percent, dropped out of the site, although they were replaced by a larger
  • 18. number: 3,492 new listings for a net growth of 719 listings, or 15 percent. Airbnb says listings oftencycle in and out. For instance, people list their house before they go on vacation and take it down when they return. Indeed, many of the new listings appear to have had longer tenure than a year. Tom Slee, an independent researcherand author of the forthcoming book “What’s Yours Is Mine” about on-demand companies, examined Airbnb churn worldwide, finding an exit rate of between 50 and 60 percent of listings in cities such as New York, Los Angeles, Amsterdam, Parisand Barcelona over about a year. At the same time,the entryrate of new listings always resulted in net growth, he found. The listings that left generally had only a handful of reviews, implying infrequentusage, while those that stayed averaged reviews in the double digits, he said. “My feeling was that it was largely people who tried it, found it wasn’t for them and left,” he said. Looking at the Bay Area, including San Francisco,
  • 19. the East Bay and the Peninsula, he found a 51 percent exit rate, lower than that for the city alone. That props up the idea that San Francisco is losing more listings due to users’ fears about new regulations and landlord prohibitions on subleasing. Part 5 - Flouting the law While Airbnb cultivates a folksy image of hostsas middle-class locals making ends meet, HomeAway proclaims its hostsare affluent out-of- towners renting their pied-a-terres. July 12, 2015 https://www.sfchronicle.com/airbnb-impact-san-francisco- 2015/#5 While Airbnb cultivates a folksy image of its hostsas middle-class locals making ends meet, HomeAway proclaims that its hostsare affluent out-of- towners renting out their pieds-a- terre. “The vast majority of our listings fall into the category that the city is trying to stop: this ‘evil’ second-home owner, who we don’t believe is evil,” said Carl Shepherd, co-founder and chiefdevelopment officer of the Texas company.
  • 20. Prices for its 1,001 local listings, all private homes, reflect that more upscale image, averaging $302 in San Francisco compared with Airbnb’s entire-home average of $255. HomeAway, which ownsVRBO and otherbrands, is up front about the fact that its business model flouts San Francisco’s new vacation-rental law. In fact, it sued the city, saying the law was tailored for Airbnb. Most HomeAway properties in San Francisco are second homes whose owners do not reside here and thus are barred by the new law from renting to tourists for periods of less than 30 days, HomeAway said in its suit claiming discrimination. A judge tossed the case on procedural grounds. Its hostsincreasingly request 30-day minimums in San Francisco, Shepherd said, although only 156 listings specified monthly rates. People who control multiple properties — oftencalled super hosts— are more dominant on HomeAway than on Airbnb. Almost half of the HomeAway properties — 461, or 46 percent — are in the hands of someone with multiple listings. They are controlled by 87 hosts, or 14.8 percent of the total. Hosts with dozens of listings are clearly vacation-management companies like Pillow
  • 21. and RedAwning Vacation Rentals. That doesn’t prove that their listings are legal or illegal, just that they belong to otherpeople. HomeAway functions like a classified listing service, rather than a middleman like Airbnb. That also means that far fewer reviews appear on its website. HomeAway said thereis about a 10 to 15 percent overlap between its listings and those on Airbnb worldwide; it didn’t have a breakdown for San Francisco. It has even more overlap with FlipKey because many largeproperty managers list on both sites, but didn’t have a specific number. FlipKey, owned by TripAdvisor Inc., has 359 local properties with an average priceof $269. Super hostsalso dominate its site, with 220 properties, or 61.3 percent, in the hands of 35 hosts, or 25.7 percent of hosts. FlipKey declined to comment. HomeAway has a big chunk of homes — 148 — controlled by people with just two or three listings, oftenin different parts of the city.
  • 22. Shepherd is frank about the explanation. Most, he presumes, are tenants gaming the system. “When someone has several different listings in a city like San Francisco, those are probably all rented apartments being arbitraged by the renter,” he said. “Arbitrage means I pay $4,000 a month and rent it (short term) for $300 a night, with or without the landlord’s permission, but most likely without.” San Francisco actually abetted such people by regulating vacation rentals, Shepherd said. “The new law tells you exactly how to skirt it,” he said. “All you have to do is say you live there270 days a year. You do have to lie and you do have to obfuscate.But the city is at a distinct disadvantage because they can’tcatch this.” 10-104
  • 23. Rev: November 9, 2010 This case was prepared by Cate Reavis, Manager, MIT Sloan Teaching Innovation Resources (MSTIR). Copyright © 2010, Massachusetts Institute of Technology. This work is licensed under the Creative Commons Attribution- Noncommercial-No Derivative Works 3.0 Unported License. To view a copy of this license visit http://creativecommons.org/licenses/by-nc-nd/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Turnaround and Transformation: Leadership and Risk at Boston’s Institute of Contemporary Art Cate Reavis On February 9, 2009, Shepard Fairey, a renowned street artist known for his iconic red, white and blue, “hope”, “change”, and “progress” posters of Barack Obama that were used in the president’s election campaign, was on his way to an opening night party for his “Supply and Demand” exhibition at Boston’s Institute of Contemporary Art when he was arrested on an outstanding warrant outside the front door. Fairey had failed to appear in court three days earlier on a vandalism charge dating back to 2000. While the arrest interrupted the opening night’s festivities—and was a definite downer for the nearly 800 people who were awaiting Fairey’s arrival, some of whom had purchased tickets on Craig’s List for $5001—it did nothing to dampen public enthusiasm for Fairey’s exhibit. Between February and the exhibition’s closing in August, 130,000 people attended the
  • 24. show. In some sense, the Fairey incident was great PR for the ICA, an institution that had gone through an enormous transformation under its Director, Jill Medvedow. When Medvedow arrived in 1998, the ICA had no money, few members, no permanent collection, and, on a good year, clocked 25,000 visitors. Operating out of an old police station on Boylston Street, it was hardly a must-see cultural destination in Boston. It was considered less a museum and more an “insider’s art club”.2 By the time of Fairey’s exhibition, the ICA was, quite literally, in a very different place. In 2006 the museum celebrated the grand opening of its new $51 million building, located on highly coveted 1 Milton Valencia, “Street Artist Arrested on Way to Event at ICA,” The Boston Globe, February 7, 2009. 2 Geoff Edgers, “Big Draw,” The Boston Globe, July 19, 2009. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 2 waterfront property in South Boston where, over the years, several high-end commercial developers had failed in their building attempts.
  • 25. Medvedow’s ability to bring change to an organization that had no power, involved being disciplined, getting people to believe in an idea, and taking many, many risks. Contemporary Art in Boston Up until the late 1920s, modern art in Boston, and throughout the United States, struggled to be taken seriously. In 1911 the director of Harvard University’s Fogg museum summed up the general feeling about contemporary art at the time: “In having exhibitions of the work of living men we may subject ourselves to various embarrassments.” By the late 1920s, a group of Harvard undergraduates set out to challenge this viewpoint by forming the Harvard Society of Contemporary Art as a place where the work of living men could be viewed.3 In 1936 the Society became the Boston Museum of Modern Art and in 1948 the museum changed its name to the Institute of Contemporary Art. For more than 50 years, the ICA was the only place in Boston dedicated to contemporary art. Unlike other styles of art, contemporary art, which included visual exhibitions, music, film, video and performance created by living artists, had never caught on in Boston like it had in other cities, most notably New York and San Francisco. According to Medvedow, there were a number of theories behind this: When you look at the ecology of what makes a vibrant contemporary art scene, you need to have several different components that all interact with one another.
  • 26. There need to be art schools and a strong artist community where work is created and ideas are exchanged. You need collectors, galleries and institutions that acquire, present, sell, and display that work. Historically, Boston lacked many of these components, never sustaining a critical mass of contemporary art activity and, as a result, these gaps prevented the growth of a healthy contemporary art environment in Boston. Added to the ecology argument was the fact that there had been little private and public sector investment in the arts in Boston, particularly contemporary. Municipal spending for the arts in Boston was far less than what was spent in four dozen other cities in the United States and, on a broader scale, Massachusetts ranked 50th among the states for per capita philanthropy.4 As Medvedow remarked, “A lot of Boston’s wealth was built on conserving it and less on creating it.” And then there was the New York factor. As Medvedow noted, “New York’s artistic energy, support, scale and audience for the arts of all disciplines, has always been a magnet for Boston’s artist community.” 3 Christine Temin, “The ICA at 60: Where does the museum fit in?” The Boston Globe, May 5, 1996. 4 Maureen Dezell, “ICA Faces Fund-raising Challenge,” The Boston Globe, March 10 2000.
  • 27. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 3 There were members of Boston’s art world that felt the absence of a strong contemporary art community was a big drawback for Boston. As William Rawn, a Boston architect and long time ICA board member, explained, “Artists provide a very different way of looking at the world. They ask questions that are different from the norm and in Boston, a city that honors academics and inventors, this is particularly admired.” Furthermore, through their work, contemporary artists reflected what was currently happening in society and as Vin Cipolla, who served on the ICA board for 16 years and as its chairman from 1997-2005, noted: “It’s the role of an institution like the ICA to provide a safe place where a diversity of perspectives can be expressed to a wide audience.” This was something Medvedow believed at her core. Jill Medvedow Described as “pathologically optimistic,” Jill Medvedow’s commitment to civic causes began when she was young. Raised in New Haven, Connecticut, by parents who were political and social activists, Medvedow admitted that campaigning was something she was exposed to in utero. “My parents taught me how to be a good citizen,” she said. “My mother was deeply engaged in volunteering for
  • 28. civic and charitable causes and my father was a prominent elected official. I grew up thinking I was part of the city’s political fabric.”5 Through her upbringing, she “learned about the basic mechanics of organizing and how to move an agenda,”6 skill sets that would serve her well in her professional life. Trained as an art historian, Medvedow arrived in Boston in 1986 from Seattle where she had founded a nonprofit contemporary arts center. In 1991 she became the first full-time contemporary curator at the Isabella Stewart Gardner Museum, bringing in numerous performing and visual artists from around the world. When she left the Gardner in 1996, Medvedow was determined that her next career move would involve bringing art to a broader public. “I was trying to figure out how to build a bridge between contemporary art and an audience that didn’t have a great affection for it,” she explained. “I came up with the idea of framing public art projects through the history and landscape of Boston, which Bostonians typically have a lot of affection for.” Within a year, she founded Vita Brevis, an organization devoted to producing temporary public art pieces. With the first Vita Brevis project near completion, Medvedow found herself being courted to become the ICA’s next director. According to Rawn, who headed the search committee for the ICA’s new director, it was Medvedow’s character as much as her curatorial background that made her such an attractive candidate: The minute you met Jill you immediately noticed that she is
  • 29. centered. She is not wowed by trends. In language, in dress, she is not the least bit pretentious. She doesn’t try to be someone or something she isn’t. She is not out to prove anything to anybody. She has a strong intellectual 5 Christine Temin, “Jill Medvedow’s Dreamscape…” The Boston Globe, July 15, 2001. 6 Rachel Strutt, “The Visionary Jill Medvedow…” The Boston Globe, December 31, 2006. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 4 base for her opinions on art. This part of her persona was reflected in her vision for the ICA, which was something that really struck us. She was passionate that the ICA needed to be relevant, very public and non-elitist, and that in order for it to succeed, it had to be better at outreach whether it was with school children, local politicians, donors, or members. A further selling point for the search committee was that because Medvedow was an outsider in the world of museum directors, she didn’t come with old rivalries or attachments.
  • 30. Striving to be Marginal When Medvedow took the reigns in March 1998, the ICA, with a yearly attendance of 25,000 (an average of 68 people a day) and a paltry budget just shy of $1 million, was in the midst of a severe identity crisis. The museum was housed in a converted police station and stable on Boylston Street, a building it had purchased from the city of Boston in the early 1990s with $328,000 in donations from trustees and overseers.7 (The Boylston address was the 10th location the museum had had since its founding.) The quirky space was largely defined by an enormous staircase that cut down through the center of the building’s four floors, creating enormous space contraints for exhibits. Unlike other Boston-area museums which could hang more than 10 shows a year,8 the ICA was limited to just four, with months of down time in between shows. Partly because of space and largely because of money and lack of interest, the ICA had no permanent collection, an important symbol of status in the museum world, which also helped art institutions create an identity, draw repeat visitors, and build a donor base. Meanwhile, contemporary art could be viewed at a number of museums throughout Boston, many of which were backed by well-endowed academic institutions including MIT’s List Visual Arts Center, the Rose Art Museum (Brandeis), Massachusetts College of Art, the Museum of Fine Arts, and Harvard University Art Museums. As Medvedow liked to say at the time, “The ICA was striving to be marginal.” Medvedow’s mandate was to stabilize and reinvent. As Cipolla explained,
  • 31. The ICA was doing some great work but it didn’t really have a point of view. The programming was spotty, the outreach was not very strategic, and the building we were in was a physical manifestation of the inadequacy of the organization. The ICA needed to be a place that, by the nature of its work and outreach, touched multiple facets of the Boston community. In order to become this, we needed somebody driven, entrepreneurial, who would be forceful about change. One of the things that set Jill apart from the other candidates wasn’t that she had spent a lifetime in contemporary art but rather than she understood how to work with audiences. She had the passion to bring content and interactive thinking and approaches to people of all ages across a spectrum of interests, getting the ICA outside of an elite and narrow comfort zone. She wasn’t 7 Christine Temin, “The ICA at 60: Where does the museum fit in?” The Boston Globe, May 5, 1996. 8 Ibid. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 5 willing to accept that what the ICA had to offer, or what
  • 32. contemporary artists had to say, was not important for all kinds of people. As part of her hiring agreement, Medvedow was allowed to bring Vita Brevis with her and fold it into the ICA’s programming, a move that proved critical over the following years as the ICA strove to reposition itself. As one journalist noted at the time, “Since the ICA has so much trouble pulling people in, putting art where people will virtually have to trip over it may be a smart move.”9 Early Days Shortly after her arrival, Medvedow put together a “business planning group” comprised of three board members and three outsiders including Sheryl Marshall, who, as a top stockbroker, was a known business leader in Boston; Nick Littlefield, a lawyer who had served as Senator Edward Kennedy’s Chief of Staff for 10 years; and, Mary Schneider Enriquez, an art historian and critic who had recently moved to Boston from Mexico City. (Marshall and Schneider Enriquez would eventually join the ICA board.) With the help of the business planning group, Medvedow set out to disrupt the unproductive conversations of the existing board about the future of the ICA. As Medvedow recalled, “We looked at a number of questions. What kind of audience did we want? Did we want to stay small and focused or did we want to broaden our offerings? What should be the role of education? We explored questions involving content, specifically if we should become a collecting institution. And finally we looked at whether we could do this work in our
  • 33. current Back Bay location.” It didn’t take long for the group to decide that the ICA needed to grow its audience, expand its educational initiatives, form a task force to look at the idea of collecting, and begin looking for a new space. (On two separate occasions, directors of the ICA who preceded Medvedow explored relocating the museum but were unable to garner board or community support.) Medvedow’s attention then turned to learning about the Boston real estate market. While she didn’t know if or how it would be possible, she was clear that the ICA needed to be located on the water: “Our job is uniquely difficult in that Boston is not a city that embraces contemporary art. Since everything about our work is unfamiliar, we’re always fighting for an audience. We needed to be located on the water in order to attract people and motivate them to come back time and again. And a waterfront location was also a perfect metaphor for what we do which is to expand horizons.” After many months of knocking on doors to get information on Boston waterfront real estate, Mevedow’s research picked up momentum when the Commissioner of Parks and Recreation, Justine Liff, referred her to Ed Sidman, one of Boston’s big real estate developers and a major philanthopist. Sidman suggested they meet in the lobby of his firm’s building as opposed to his office, a request which sent an immediate negative signal to Medvedow. But she succeeded in flipping the switch:
  • 34. 9 Christine Temin, “Seeing the Light,” The Boston Globe, April 19, 1998. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 6 After listening to my pitch, he was ready to send me off with a name of the next person I should talk to when I said to him, ‘You know, I swim in your pool at the Leventhal-Sidman Jewish Community Center in Newton.’ And he says, ‘Oh really.’ And I say, ‘Yes, and I frequently go to the openings in the center’s gallery.’ The next thing you know he’s saying, ‘Let’s go to my office.’ So now we’re in his office and I’ve honed in on his passion which is how to get members of a JCC to engage in Jewish continuity and not just athletics. We ended up having a deep, intense conversation. The next thing I know, he has given me a couple good names to pursue for waterfront real estate. And for the next couple of years, I meet with him regularly to advise him on his project. Following up on Sidman’s recommendations, Medvedow eventually landed a meeting with the Boston 2000 committee. Put together by Mayor Thomas Menino to plan millenial activities for Boston, one of the committee’s responsibilities was deciding
  • 35. who or what should be designated the .75 acre parcel, also known as Parcel J, on Boston’s Fan Pier. Little did she know, the committee would end up being Medvedow’s last stop in her real estate search. Fan Pier’s Parcel J Described as “a wasteland of parking lots,”10 Parcel J was just a tiny sliver of the 21 acre, 3-million square foot, nine-block industrial area owned by the Pritzker family, which was slated to be part of the largest waterfront development in Boston’s history. The proposed plan was to populate the space with 800 residential units, 1,000 hotel rooms, 150,000 square feet of civic and cultural space, parks and open space, and an extension of a walkway along Boston Harbor.11 In a deal with the city of Boston, which enabled them to expand the size of their proposed hotels,12 the Pritzkers agreed to donate Parcel J to a cultural site. Medvedow met with the Boston 2000 committee in the spring of 1999. It was a Thursday. Impressed with her ideas for a future ICA on the waterfront, the committee suggested she present to the Boston 2000 subcommittee on Parcel J. Much to her disbelief, Medvedow found herself committing to giving a formal, “this-is-what-we-have-in-mind” presentation the next Tuesday. As she recalled, “The decision to go after the parcel was a big leap of faith. It was very hard to imagine we could make the case given how weak we were.” Scraping together $5,000, Medvedow hired an architect who
  • 36. drew a mock-up of a future ICA perched on Parcel J. In giving the architect directives, Medvedow was concerned with one detail: that the 10 Geoff Edgers, “How They Did It,” The Boston Globe, December 6, 2006. 11 “Institute of Contemporary Art, Boston Announces Four Internationally Recognized Architecture Firms….” ICA Press Release, December 13, 2000. 12 It is not uncommon in commercial real estate for a developer to designate a parcel of land in exchange for being allowed to add height to a building as a way to maximize revenue and earning potential. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 7 structure fit on the land that was available. Along with the mock-up, Medvedow and a couple ICA staff members spent the weekend before the presentation making boards of eight museums — ranging in size and cost from the Milwaukee Art Museum to Minneapolis’ Weisman Art Museum to the Getty in Los Angeles — that had been built in different cities since the early 1990s. Their idea was to stress the point that these museums had catapulted civic life and economic development in their respective cities and had played an important role in urban rebirth.
  • 37. Medvedow arrived on the designated Tuesday to present and found to her surprise that the ICA was one of three finalists who were presenting. One of the other finalists, a collaboration involving the Wang Center, Boston Ballet and Boston Lyric Opera, proposed a three-stage complex, described as a cross between Sydney’s Opera House and New York’s Lincoln Center. The $100 million complex would include a 2,400-seat opera and ballet house, a 500-700- seat playhouse, and a floating stage that could accommodate an audience of 1,000. Due to its size, the complex was expected to exceed the allotted space and would require some additional land that had been set aside by the Pritzkers for an office tower. The other finalist was a relatively unknown Boston-area entrepreneur who wanted to develop a $40 million Fan Pier Performing Arts and Film Center that would include a 700-seat recital hall and 125-seat partially open-air theater. In her pitch, Medvedow stressed that the new ICA would be “a public destination and the architectural heartbeat of the city.”13 Funded by a $40 million capital campaign, the four-story building would occupy 60,000 square feet and would include a 400-seat theater, and a roof sculpture garden. It would hold up to 2,000 visitors. Medvedow left the presentation thinking that the museum had a slim shot, at best, of winning Parcel J, but she was increasingly convinced that the waterfront was the right location for a new ICA. The committee’s final decision would be announced in November. Drumming up Support
  • 38. In the intervening six months, Medvedow got busy educating the public, particularly local politicians, residents and area artists, on the ICA’s plans for a new home on Fan Pier. To help her sell the idea, Medvedow approached Gloria Larson, who at the time was a partner at one of Boston’s premier law firms who specialized in real estate development and government. At the time, Larson was chairman of the board of the Convention Center Authority and was in the middle of her own campaign to get a new convention center built in South Boston. As Larson explained, “I joined the ICA ‘campaign’ as both a lawyer and an advocate. I felt like Jill and I were traveling down the same path together.” In planning the campaign’s strategy, Larson recalled: “We asked ourselves, ‘Who do we need to touch who normally won’t get touched in a process like this? Who would normally never support building an ICA on South Boston’s waterfront?’” After a bit of reflection, Larson decided to visit a couple of South Boston’s key political leaders. Larson took Medvedow to meet James Kelly, who at 13 Maureen Dezell, “ICA Faces Fund-raising Challenge,” The Boston Globe, March 10 2000. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 8
  • 39. the time was the city council’s president, state senator Stephen Lynch, and state representative Jack Hart, all of whom she knew from her law practice and her work on the convention center. The purpose of the meeting was to educate them on the ICA’s development plans and to hear their concerns. After introductions, Kelly began the conversation by saying, “You can’t tell us you’re going to build a contemporary art museum next to Southie.” Medvedow responded by saying, “Let me tell you about it. Let me tell you about the programs we have and how I want to bring kids from South Boston in, and how the world of art is an opportunity to expand their horizons in ways that I know you would support.” Hearing her out, Kelly’s concerns turned to the infamous Robert Mapplethorpe exhibit. Shown at the ICA in the early 1990s, the exhibit caused great controversy for its sexually explicit photographs. “You have to promise me you will never do a show like that again,” Kelly stated. Medvedow retorted with: “You know I can’t make that promise. That would be like me asking you to promise that you’ll never do anything controversial again. But how about I promise you that if I’m going to do anything like that, I will give you notice so that you won’t be caught by surprise.” Kelly quickly responded with, “Well if you ever do anything like that I will organize a picket.” “Well if you organize a picket,” Medvedow said, “I’ll bring you coffee, because that kind of attention is exactly what we need to build an audience for the ICA in Boston.” It was at this point in the exchange that Kelly turned to Larson and said, “Larson, I like your friend Jill.”
  • 40. In November 1999 the Boston 2000 committee announced that the ICA had won the Parcel J competition. Medvedow believed one of the main reasons the ICA was chosen was because the mock-up demonstrated that from a space perspective, the museum would be a perfect fit. In addition, the ICA had successfully proven its financial viability to the committee by identifying $12 million— of which $6 million would come from the sale of its Boylston building—of the estimated $40 million needed for the project. Larson believed that Medvedow’s ability to assess her audience before sharing her vision was key to sealing the deal. “She had a way of presenting to large and small audiences the concept of a new ICA so that it became something they could own too. She was able to tell the story in ways that each audience could hear.” Of course, there were many skeptics of the committee’s decision and the ICA’s plan. Some thought that locating the ICA away from other cultural attractions was a mistake. After all, it had not been able to attract visitors when it was located in the heart of Boston’s tourist district. Then there was the whole issue of money, something the ICA had little of and had no history of raising. While the land was free, the building and operational costs would more than test the museum’s fundraising capabilities. As Paul Buttenwieser, ICA board member and Boston philanthropist, put it, “The key question is whether the wider community of philanthropic and arts supporters will see this as a credible project they want to be involved with.”14
  • 41. 14 Maureen Dezell, “ICA Faces Fund-Raising Challenge,” The Boston Globe, March 10, 2000. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 9 But then there were those who were quietly cheering for the ICA. As one Boston Globe journalist pointed out, “While informed observers think it unlikely the ICA will realize its goals, an unusual number hold out hope that it will. In a city better known for its enthusiasm for sports, politics and revenge than for boosterism, optimists and cynics admire the organization for attempting to defy the formidable odds against building something innovative in Boston.”15 And then there was the ICA’s biggest cheerleader. As Larson noted, “Jill believed in the vision herself. She had no doubt that it could be done.” Now What? After winning the right to build on Parcel J, one of Medvedow’s first orders of business was to hire a director of development, a position that had not previously existed at the ICA. A consultant Medvedow had hired to help develop a fundraising and endowment strategy suggested she talk to the
  • 42. MFA’s marketing director Paul Bessire. This same consultant, however, warned Medvedow that Bessire would never leave the MFA for the ICA. She wanted to talk to him nevertheless. Meeting over a drink, Medvedow and Bessire connnected immediately after discovering they lived in the same neighborhood and their kids went to the same school. When the conversation turned to the purpose of their meeting Medvedow was blunt: “Why,” she asked, “would you rather stay at the MFA than be a part of making something totally new that could reshape how the city of Boston thinks about contemporary art?” By spring 2000, Bessire was the ICA’s new Director of External Relations. Shortly after his arrival the ICA launched a $50 million “Campaign for the New ICA” — which eventually grew to $62 million — on the back of $6 million that had been committed by two ICA trustees. As Bessire explained, launching a campaign with far less than 50% of funds already raised was a very unconventional strategy, but it was one that made sense for an organization that wanted to send a message to the community: “The strategy was to demonstrate that there was a commitment on the part of the board and the institution to make this project happen and a good fundraising strategy always begins with the family.” In concert with developing a fundraising strategy and finding and hiring the right talent to oversee it, Medvedow was eager to bring in new blood—which was to say business leaders with clout16 —to the ICA’s 35-member board, and ease out those whose vision was
  • 43. not aligned with where she was taking the museum. Success in winning the rights to the land coupled with Medvedow’s vision of investing in Boston’s future as opposed to its past, Bessire noted, had put the ICA in a very different light in the eyes of potential board members. By early 2001, there were 13 new members, the majority of whom 15 Maureen Dezell, “ICA Faces Fund-Raising Challenge,” The Boston Globe, March 10, 2000. 16 Geoff Edgers, “How They Did It,” The Boston Globe, December 6, 2006. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 10 came from the private equity, venture capital, and financial services sector. (See Exhibit 1 for list of those who joined the ICA board between 1998 and 2001.) Although Medvedow’s to-do list after winning the rights to build on Parcel J was populated with tasks relating to the museum’s future home, she never lost site of the importance of not only keeping the ICA up and running—and this included bringing in high- profile artists like Cornelia Parker, Olafur Eliasson, and Ellen Gallagher, and sponsoring public art projects such as Art on the Emerald Necklace that received national recognition—but publicly
  • 44. repositioning the ICA by building excitement for its future and demonstrating the legitimate need for a new building. As Rawn noted, “I cite this as one of the most notable elements of Jill’s leadership. Too often you see institutions plunge ahead on a new capital investment and they really let the existing institution wither and put themselves at risk for not succeeding in the new place.” One of the most notable ways Medvedow involved the public in the future ICA was in the selection of architects. Selecting an Architect The ICA began its architect search with a couple of basic criteria. As Cipolla explained in early 2001, “We want an architect with a deep understanding of the civic. This is not just a building, not just an interior showcase. It has a civic role. A lot depends on what happens outside the four walls.”17 In addition, Medvedow noted that the museum was looking for an individual or a firm that had not completed a prominent building in the United States: “The ICA has a long tradition of supporting the work of emerging artists.”18 The ICA traveled down a fairly unconventional path when it came to the actual selection process. Instead of following the typical competition approach whereby a select number of firms would be paid an agreed upon sum of money to come up with a specific proposal, Medvedow decided on a different course of action. She explained:
  • 45. One of our board members who was an architect said to me, ‘Be careful about competitions because you get what you pay for. In order to have a healthy competition, you will need to offer up significant funds so that architects will invest the time it will take to come up with smart, well thought through proposals.’ So, we decided not to do a competition because we were certain we didn’t have the money. And given that we’re in the business of reviewing artists’ work over time we felt that we could judge the work of architects ourselves. With that decision made, Medvedow put together an Architect Selection Committee. Headed by Nick Pritzker, the committee included Medvedow, Cipolla, Henrique de Campos Meirelles, President of 17 Robert Campbell, “Designers Vie for a Shot at the ICA,” The Boston Globe, March 22, 2001. 18 Robert Campbell, “A Vision Fulfilled at Harbor’s Edge,” The Boston Globe, December 1, 2006. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 11 Fleet Global Banking, Barbara Lee, Vice Chair of the Board of Trustees and philanthropist, and Ellen Poss, Vice Chair of the Board of Trustees and philanthropist. Medvedow decided not to include any
  • 46. architects in the group, as she didn’t want the committee to be driven by any one architectural agenda. The committee’s first assignment was to establish goals and criteria, which would help guide the ICA through the selection process. To help the committee, which had no baseline knowledge of architecture, Medvedow hired an architectural historian from Harvard University to lead a seminar on contemporary architecture for the group. The historian helped the committee establish goals and criteria (Exhibit 2), and drew up a list of 30 architectural firms for consideration. Using the list of goals and criteria as a guide, the committee scaled down the list of 30 firms to twelve and ultimately to four. The chosen four included Studio Granda from Iceland, Boston-based Office d’A, Peter Zumthor of Switerland, and Diller + Scofidio from New York. Medvedow traveled to meet the four firms and each was invited to Boston to present their work to the committee. Medvedow recognized that in order for the ICA to matter to a wider audience, more people had to be involved in the dialogue on the ICA’s building plans. On March 24, 2001, the ICA hosted “Building A Vision: Four Architects’ Views”, a public presentation at the Copley Theater where the final four firms were asked to present. Medvedow laid down one rule for the presenters: because the purpose of the presentation was to enable the firms to show their work and discuss their philosophies towards contemporary art, they were not to present their ideas for building a new ICA. She explained her reasoning: “The minute there’s an image out there of what
  • 47. architect X could create I feared that I would have to manage a multitude of stakeholders who were wedded to architect X’s proposal. But what if we didn’t choose that proposal or what if we chose it and it substantially changed during the design process? I didn’t want to be caught in that kind of public negativity.” The presentations drew an impressive crowd. “People were literally waiting in line to get in,” Medvedow recalled. “There was not an unfilled seat in the theater. This level of transparency in museum planning had never happened before in Boston. There was enormous enthusiasm behind our out-of-the-box, if not downright off-the-wall project, and the public was thrilled that we wanted to share our ideas. In addition there was great excitement over what might happen down on the waterfront.” While not responsible for the ultimate decision, attendees were queried on their thoughts through a survey with questions that included: What did you like about the work presented? What do you think are some of the most important design opportunities provided by the waterfront site? Do you find any of the architects’ design philosophies to be particularly responsive to the institutional mission of the ICA?19 Of the four presenters, Peter Zumthor and Diller + Scofidio stood out as much for their work as for their general philosophy towards architecture. 19 Robert Campbell, “Designers Vie for a Shot at the ICA,” The Boston Globe, March 22, 2001.
  • 48. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 12 Diller + Scofidio Winners of the MacArthur Foundation “genius” grant in 1999— marking the first time architects had been awarded the grant—the husband and wife team of Richard Scofidio and Elizabeth Diller was known for integrating media and architecture. As Diller stated during their presentation, “Architecture and new technologies need not be adversaries. The union can actually be quite fertile.” Diller + Scofidio’s resume was quite deep when it came to the work they had done on the inside of museum walls. They had worked with many visual and performing artists and had completed numerous art installations. Their most well known indoor architectural work was the renovation of the Brasserie restaurant located in the Seagram building in New York. As Diller explained, one of their goals in redesigning the space was to find ways to connect the restaurant, which was below ground and without natural light, back to the street. They accomplished this by getting a blurred video snapshot of every person as they came through the revolving door. The image was displayed above the bar, with every new entrance image pushing the previous 15 to the right. (See Exhibit 3.)
  • 49. When it came to building, however, their resume was quite thin; in fact they had never built a building in the United States. Their most renowned work was the Blur Building, a media pavilion built for the 2002 Swiss Expo in Neuchatal, which was less a building and more a suspended platform enveloped by a man-made cloud of fog. (See Exhibit 4.) Blur, which was a temporary structure where no one lived or worked, showcased Diller + Scofidio’s belief that “architecture must always question material and spatial conventions.” Peter Zumthor Of the four finalists, Peter Zumthor was the best known and the most experienced architect, with the art museum in Bregenz, Austria (Kunsthaus Bregenz) and the thermal baths (Therme Vals) in Switzerland being two of his most famous works. (See Exhibits 5 and 6.) As one journalist wrote, “Although [Zumthor] cultivates the disarming role of simple artisan-architect, he is responsible for some of the most radical buildings of our time. His sophisticated, demanding, exquisite structures of rigidly reductive minimalism, in which every detail has enormous aesthetic and emotional power, create their own world of Zen-like, concentrated beauty – an immutable perfectionism that probably scares off as many clients as it attracts.”20 Zumthor was not known for a particular style, but, as one observer noted, a number of themes were interwoven throughout much of his work: celebration of place, engagement of all the human senses, deep understanding of space, light and materiality.21 For
  • 50. Zumthor, architecture “[had] it’s own realm. 20 Ada Louise Huxtable, “Architecture’s Best Kept Secrets,” Wall Street Journal, May 15, 2001. 21 Peter Davey, “Zumthor the Shaman,” Architectrual Review, October 1, 1998. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 13 It has a special physical relationship with life. I do not think of it primarily as either a message or a symbol, but as an envelope and background for life which goes on in and around it…”22 While his work was renowned, so was his need to control. “I like to control the buildings I do,” he admitted to the crowd gathered in the Copley Theater. During his presentation Zumthor recounted his frustration towards a project he was awarded in Berlin that was never complete: “This was eight damned years ago and for eight years these people wanted me to make compromises and compromises,” he explained showing great frustration, and giving members of the Architect Selection Committee some pause.23 Decision
  • 51. In April 2001, the ICA announced that Diller + Scofidio had been chosen to build the new building. Liz Diller believed they were tapped because of their belief that there needed to be a partnership between the new building and the art it would house: “From the beginning we said neither would play a supporting role for the other.” From Medvedow’s perspective, while the choice of Diller + Scofidio was motivated largely by their “sheer brilliance,” there was another important reason: “Because they didn’t have a lot of experience they had as much to gain as we did, and consequently as much to lose as we did. So we all had as much at stake to make it work.” By the time the ICA broke ground in September 2004, half of the $62 million had been committed, the majority coming from the ICA’s board of trustees and corporate donors. Once again, the ICA was relying on an unconventional and risky development strategy. As Bessire explained, “Development people always say the minute you break ground, people assume it’s a done deal and will be reluctant to give money. We broke ground and people started believing in us.” Stumbling Blocks The ICA faced several major challenges in its effort to erect a new home on Fan Pier. As Medvedow explained, building a new waterfront property in Boston was an “arduous” task when it came to obtaining all the required state and city approvals. In fact the ICA had to get dozens of approvals, worth millions of dollars in legal fees, between the time it was granted the land and when it opened its doors in 2006. As Medvedow noted, the ICA’s ability to
  • 52. navigate these waters was surprising to many: “A lot of people thought that even though we had gotten the land, the process of getting all the approvals would end up killing us. We learned quickly who we needed to talk to and convince to grant us the approvals we needed.” Just months away from breaking ground on the building, the Pritzker family’s development plans for the 21 acre lot surrounding the ICA were aborted. The family announced in late 2003 that it would be putting the land up for sale. Honoring the commitments they made to the city of Boston, the Pritzkers 22 Peter Davey, “Zumthor the Shaman,” Architectrual Review, October 1, 1998. 23 Geoff Edgers, “How They Did It,” The Boston Globe, December 6, 2006. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 14 let it be known publicly that the new buyer would have to agree to the building commitments they made to the city of Boston, including setting aside the .75 acre parcel for the ICA.24 The Pritzker’s decision was a big disappointment for the ICA. As Medvedow noted, “We lost a partner that recognized the ICA as an asset.”
  • 53. Finally, in April 2006, just five months before the new building was scheduled to open, the ICA faced another major change. Macomber, a 100-year old construction firm that was considered one of Boston’s leading builders, had fallen months behind schedule and was dealing with the legal aftermath of a recent accident on one of its construction sites which claimed three lives. The ICA responded by bringing in another firm to complete the work. In August, Medvedow announced that because of construction delays the ICA would have to delay its September opening. In explaining the postponement, Medvedow told The Boston Globe, “Our building is beautiful, it’s close to completion, and it works. But you only get one chance to make a first impression. When we open, we are going to hit the ground running. In the long life of this building, this is a very insignificant and brief hiccup.”25 On December 10, 2006, the new ICA opened to more than 8,000 visitors. (See Exhibit 7.) If They Build It, Will They Come? The ICA’s ability to oversee the construction of a new building on Boston’s waterfront by an architecture firm that had never built a building in the United States, raise over $75 million— surpassing the capital campaign goal of $62 million—and welcome over 280,000 visitors in its first year—well over the 200,000 that was needed to break even— was, in most people’s minds, miraculous. The question posed by one museum director a year before the new ICA opened its doors, “Do you really think there are five times the market for the ICA’s program than there is right now and
  • 54. that the only reason they’re not getting them now is building size?”26 had been answered “yes”. But sustaining the attendance level would be the main challenge going forward. New museums tended to attract huge crowds in their first year of operation only to see attendance taper off. San Francisco’s Museum of Modern Art, which opened its new building in 1995 saw its attendance soar from 250,000 to 800,000 in its first year, and then come back down to 600,000 in its second year. The Peabody Essex Museum in Massachusetts more than doubled its attendance in year one only to see it decline in year two. As that museum’s deputy director stated, “The first year [attendance] doesn’t matter. It’s everybody looking at it because it’s there. The ‘lookyloos,’ I like to call them.”27 But in the case of the ICA, the ‘lookyloos’ seemed to be holding their gaze. In 2008 and 2009, the ICA had a combined attendance record of well over 450,000. 24 Thomas Palmer, “Fan Pier Site up for Sale,” The Boston Globe, December 19. 2003. 25 Geoff Edgers, “Museum Sees Weeks-Long Construction Delay,” The Boston Globe, August 4, 2006. 26 Geoff Edgers, “Under Construction: An Arts Renaissance,” The Boston Globe, April 10, 2005. 27 Ibid. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART
  • 55. Cate Reavis NOVEMBER 9, 2010 15 Exhibit 1 New Additions to the ICA Board (1998-2001) Pat Stavaridis, Art Collector Sheryl Marshall, Vice President, Donaldson, Lufkin and Jenrette Vivien Hassenfeld, Designer, Hasbro Mary Schneider Enriquez, art critic and independent curator Henrique de Campos Meirelles, President and Chief Operating Officer, Bank of Boston Robert Davoli, Sigma Partners Charles Rodgers, Chairman, WFD Consulting Andrew Goldfarb, Managing Director, JAFCO America Ventures Anthony Terrana, oral surgeon Tim Ferguson, Senior Managing Partner, Putnam Investments Jonathan Seelig, Co-Founder, Akamai Nicholas Adams, Senior Vice President, Partner and Equity Portfolio Manager, Wellington Management
  • 56. Jean-Francois Formela, Investment Principal, Atlas Venture Capital Source: ICA. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 16 Exhibit 2 Goals and Criteria for New ICA Goals Architectural Advancement For almost 65 years, the Institute of Contemporary Art has played a pivotal international role as a vanguard institution by championing new artistic practice and delivering innovative programming. The ICA’s new building should advance architectural thought and practice, reflecting the artistic mission of the ICA. A Powerful Visitor Experience
  • 57. The architect selected to design the new ICA should demonstrate a sensitivity to the exhibition and interpretation of contemporary art and to providing a powerful visitor experience. Through programs, architecture, education and technology, the new ICA should provide future generations with access to the finest examples of creativity, learning and inspiration. Civic Responsibility The new ICA will be a visual and physical destination for Bostonians and visitors alike, and a cornerstone of the new Fan Pier. It will relate to the intimate scale of individual human beings while responding to the unique character of its urban context and waterfront location. The chosen architect should have a sense of responsibility to the public realm and a capacity to create a building with international public significance for Boston’s 21st century. Criteria Advances an architectural vision for the future Creates a building whose presence can shape the waterfront Innovates spatially Scales building to human proportions Shapes and uses natural light well Attends to detail and construction Possesses a vision of the museum’s public role in the city
  • 58. Focuses on only a few, important projects Respects the ICA’s professional and financial resources Has a career trajectory where a breakthrough building is likely Source: ICA. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 17 Exhibit 3 The Brasserie Source: Diller + Scofidio TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis
  • 59. NOVEMBER 9, 2010 18 Exhibit 4 Blur Building, Swiss Expo Source: Diller + Scofidio TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 19 Exhibit 5 Kunsthaus Bregenz Source: Hans Peter Schaefer. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 20 Exhibit 6 Therme Vals (Thermal Baths)
  • 60. Source: Roland Zumbüh. TURNAROUND AND TRANSFORMATION: LEADERSHIP AND RISK AT BOSTON’S INSTITUTE OF CONTEMPORARY ART Cate Reavis NOVEMBER 9, 2010 21 Exhibit 7 The New ICA Source: Christopher Peterson. 2/11/2019 Lake Tahoe houses sit vacant while locals struggle to find affordable housing - SFChronicle.com https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses- sit-vacant-while-locals-13601651.php 1/7 L I F E S T Y L E L I F E S T Y L E L I F E S T Y L E // // // T R AV E LT R AV E LT R AV E L Lake Tahoe houses sit vacant while localsLake Tahoe houses sit vacant while localsLake Tahoe houses sit vacant while locals struggle to find affordable housingstruggle to find affordable ho usingstruggle to find affordable housing By Dave ZookBy Dave ZookBy Dave Zook
  • 61. a.m. Some Tahoe-area destinations are changing their rules around vacation rentals.Some Tahoe-area destinations are changing their rules around vacation rentals.Some Tahoe-area destinations are changing their rules around vacation rentals. Photo: iStockphoto / Getty ImagesPhoto: iStockphoto / Getty ImagesPhoto: iStockphoto / Getty Images 2/11/2019 Lake Tahoe houses sit vacant while locals struggle to find affordable housing - SFChronicle.com https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses- sit-vacant-while-locals-13601651.php 2/7 For more stories like this, check out The Chronicle’s weekly Tr avel newsletter!For more stories like this, check out The Chroni cle’s weekly Travel newsletter!For more stories like this, check out The Chronicle’s weekly Travel newsletter! Sign up Sign up Sign up hereherehere... At a standing-room- only town hall meeting in January at Sierra Nevada CollegeAt a standing-room- only town hall meeting in January at Sierra Nevada CollegeAt a standing-room- only town hall meeting in January at Sierra Nevada College in Incline Village, Nev., residents voiced passionate opinions on a question thatin Incline Village, Nev., residents voiced passio nate opinions on a question thatin Incline Village, Nev., residen
  • 62. ts voiced passionate opinions on a question that has chafed the Lake Tahoe area for decades: What’s the best wa y to house thehas chafed the Lake Tahoe area for decades: What ’s the best way to house thehas chafed the Lake Tahoe area for decades: What’s the best way to house the hordes of vacationers who descend on the lake year- round?hordes of vacationers who descend on the lake year- round?hordes of vacationers who descend on the lake year- round? “They come and party and leave trash in the streets, and take ho using away from“They come and party and leave trash in the str eets, and take housing away from“They come and party and leav e trash in the streets, and take housing away from the locals,” a longtime resident said. “But I and many others co uldn’t afford tothe locals,” a longtime resident said. “But I and many others couldn’t afford tothe locals,” a longtime resident sa id. “But I and many others couldn’t afford to live here unless I rented out my spare bedroom.”live here unless I rented out my spare bedroom.”live here unless I rented out m y spare bedroom.” “Plus, they bring in millions in tax dollars,” a woman added.“Pl us, they bring in millions in tax dollars,” a woman added.“Plus, they bring in millions in tax dollars,” a woman added. Such is life for Tahoe locals: The crush of tourists can often fee l overwhelming,Such is life for Tahoe locals: The crush of touri sts can often feel overwhelming,Such is life for Tahoe locals: T he crush of tourists can often feel overwhelming, but it is also the lifeblood of the economy. The region, which en
  • 63. compasses fivebut it is also the lifeblood of the economy. The r egion, which encompasses fivebut it is also the lifeblood of the economy. The region, which encompasses five counties in two states, sees around 3 million visitors a year.cou nties in two states, sees around 3 million visitors a year.countie s in two states, sees around 3 million visitors a year. At issue that evening was the management of short- term rentals — units leasedAt issue that evening was the management of short- term rentals — units leasedAt issue that evening was the management of short- term rentals — units leased for 30 days or less at a time. Think ski cabins, lakeside lodges, vacation condosfor 30 days or less at a time. Think ski cabins, l akeside lodges, vacation condosfor 30 days or less at a time. Thi nk ski cabins, lakeside lodges, vacation condos and the plethora of other housing options available on sites such as Airbnb andand the plethora of other housing options availabl e on sites such as Airbnb andand the plethora of other housing o ptions available on sites such as Airbnb and VRBO. STRs, as they’re known, are a crucial source of income for residents andVRBO. STRs, as they’re known, are a crucial s ource of income for residents andVRBO. STRs, as they’re know n, are a crucial source of income for residents and municipal governments in an area where tourism is the dominan t industry, butmunicipal governments in an area where tourism i s the dominant industry, butmunicipal governments in an area w here tourism is the dominant industry, but they’ve saddled communities with all sorts of nuisances: illegal
  • 64. parking,they’ve saddled communities with all sorts of nuisances : illegal parking,they’ve saddled communities with all sorts of n uisances: illegal parking, excessive noise, wild partying, trash.excessive noise, wild party ing, trash.excessive noise, wild partying, trash. “Opinions of STRs vary dramatically,” says Jeff Loux, town ma nager of Truckee.“Opinions of STRs vary dramatically,” says Je ff Loux, town manager of Truckee.“Opinions of STRs vary dram atically,” says Jeff Loux, town manager of Truckee. “We hear the spectrum from ‘STRs are the problem’ to ‘You can ’t possibly ban“We hear the spectrum from ‘STRs are the proble m’ to ‘You can’t possibly ban“We hear the spectrum from ‘STR s are the problem’ to ‘You can’t possibly ban these, they are the lifeblood of the economy.’”these, they are th e lifeblood of the economy.’”these, they are the lifeblood of the economy.’” Perhaps more consequential to a region where the median annua l income hoversPerhaps more consequential to a region where th e median annual income hoversPerhaps more consequential to a region where the median annual income hovers around $45,000, STRs stress the already limited housing supply of Lake Tahoe — around $45,000, STRs stress the already limited housing supply of Lake Tahoe — around $45,000, STRs stress the already limited housing supply of Lake Tahoe — http://www.sfchronicle.com/newsletters/travel/
  • 65. 2/11/2019 Lake Tahoe houses sit vacant while locals struggle to find affordable housing - SFChronicle.com https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses- sit-vacant-while-locals-13601651.php 3/7 where 65 percent of homes sit vacant most of the year and local s are increasinglywhere 65 percent of homes sit vacant most of t he year and locals are increasinglywhere 65 percent of homes si t vacant most of the year and locals are increasingly struggling to find affordable housing.struggling to find affordab le housing.struggling to find affordable housing. The discord over STRs in Tahoe has been swirling for a decade, since the rise ofThe discord over STRs in Tahoe has been swirl ing for a decade, since the rise ofThe discord over STRs in Taho e has been swirling for a decade, since the rise of rental services. But the issue was reignited last fall when voters in South Lakerental services. But the issue was reignited last fal l when voters in South Lakerental services. But the issue was re ignited last fall when voters in South Lake Tahoe passed Measure T, an ordinance designed to phase out ST Rs by 2021. TheTahoe passed Measure T, an ordinance designed to phase out STRs by 2021. TheTahoe passed Measure T, an or dinance designed to phase out STRs by 2021. The measure passed by a mere 58 votes — less than 1 percent of votes cast — but themeasure passed by a mere 58 votes — less than 1 percent of votes cast — but themeasure passed by a mere 58 votes — less than 1 percent of votes cast — but the
  • 66. message became clear: South Lake’s citizenry is fed up with the lack ofmessage became clear: South Lake’s citizenry is fed up with the lack ofmessage became clear: South Lake’s citizenry is fed up with the lack of regulations on STRs.regulations on STRs.regulations on STRs. While Measure T represents the most extreme example of action on STRs, similarWhile Measure T represents the most extreme example of action on STRs, similarWhile Measure T represents the most extreme example of action on STRs, similar debates are happening all around Lake Tahoe, exemplifying the tightrope walkdebates are happening all around Lake Tahoe, exe mplifying the tightrope walkdebates are happening all around L ake Tahoe, exemplifying the tightrope walk of attracting tourism and maintaining a town’s unique character. of attracting tourism and maintaining a town’s unique character. of attracting tourism and maintaining a town’s unique character. “It is a balancing act,” Loux says. “On the one hand, this is a re sort community“It is a balancing act,” Loux says. “On the one h and, this is a resort community“It is a balancing act,” Loux says . “On the one hand, this is a resort community where people have rented their properties on a short- term basis for decades. …where people have rented their propert ies on a short- term basis for decades. …where people have rented their propert ies on a short-term basis for decades. … On the other hand, we are a community, not just a resort.”On th e other hand, we are a community, not just a resort.”On the othe r hand, we are a community, not just a resort.”
  • 67. To help ground future decisions in data, a report on the impact o f STRs is soon toTo help ground future decisions in data, a repo rt on the impact of STRs is soon toTo help ground future decisi ons in data, a report on the impact of STRs is soon to be released by the Mountain Housing Council of Tahoe- Truckee, a coalition of 28be released by the Mountain Housing Council of Tahoe- Truckee, a coalition of 28be released by the Mountain Housing Council of Tahoe-Truckee, a coalition of 28 business and community groups including ski resorts, governme nts and realtybusiness and community groups including ski reso rts, governments and realtybusiness and community groups incl uding ski resorts, governments and realty boards. Due out this month, the report focuses on the Truckee/N orth Tahoeboards. Due out this month, the report focuses on the Truckee/North Tahoeboards. Due out this month, the report focu ses on the Truckee/North Tahoe region, which includes the majority of Tahoe’s west shore, the n orth shore goingregion, which includes the majority of Tahoe’s west shore, the north shore goingregion, which includes the maj ority of Tahoe’s west shore, the north shore going east to where it borders Nevada, and up to Truckee, 15 miles no rth of the lake.east to where it borders Nevada, and up to Truck ee, 15 miles north of the lake.east to where it borders Nevada, a nd up to Truckee, 15 miles north of the lake. Seana Doherty, project manager for the council, hopes the study will serve as aSeana Doherty, project manager for the council, hopes the study will serve as aSeana Doherty, project manager f or the council, hopes the study will serve as a
  • 68. turning point for policymakers, as it will sharpen the focus on t he scope of theturning point for policymakers, as it will sharpen the focus on the scope of theturning point for policymakers, as it will sharpen the focus on the scope of the issue. For example, the council found that 13 percent of the esti mated 38,801issue. For example, the council found that 13 perce nt of the estimated 38,801issue. For example, the council found that 13 percent of the estimated 38,801 housing units in Truckee and North Tahoe are being rented on a short- termhousing units in Truckee and North Tahoe are being rented on a short- termhousing units in Truckee and North Tahoe are being rented on a short-term basis. Doherty believes this number is significantly lower than p eople wouldbasis. Doherty believes this number is significantly lower than people wouldbasis. Doherty believes this number is s ignificantly lower than people would have assumed, indicating that the impact of STRs may not be as large a part ofhave assumed, indicating that the impact of STRs may not be as large a part ofhave assumed, indicating that the i mpact of STRs may not be as large a part of the housing problem as people imagined.the housing problem as people imagined.the housing problem as people imagined. 2/11/2019 Lake Tahoe houses sit vacant while locals struggle to find affordable housing - SFChronicle.com https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses-
  • 69. sit-vacant-while-locals-13601651.php 4/7 For now, the debate remains hotly contested, as different areas of the lake takeFor now, the debate remains hotly contested, as different areas of the lake takeFor now, the debate remains hotl y contested, as different areas of the lake take different approaches to management. Here is how the issue is sh aping up arounddifferent approaches to management. Here is ho w the issue is shaping up arounddifferent approaches to manage ment. Here is how the issue is shaping up around the lake.the lake.the lake. South Lake TahoeSouth Lake TahoeSouth Lake TahoeSouth Lak e Tahoe Situated adjacent to a handful of tourist- friendly casinos just over the stateSituated adjacent to a handful of tourist- friendly casinos just over the stateSituated adjacent to a handful of tourist-friendly casinos just over the state border in Nevada, South Lake Tahoe is the largest city on the la ke, with 22,000border in Nevada, South Lake Tahoe is the large st city on the lake, with 22,000border in Nevada, South Lake Ta hoe is the largest city on the lake, with 22,000 residents.residents.residents. It’s also a hotbed of STR controversy; Measure T is the most ag gressive attemptIt’s also a hotbed of STR controversy; Measure T is the most aggressive attemptIt’s also a hotbed of STR contro versy; Measure T is the most aggressive attempt to rein in short-
  • 70. term rentals in the region. Supporters believe the measure could to rein in short- term rentals in the region. Supporters believe the measure could to rein in short- term rentals in the region. Supporters believe the measure could add to the supply of long- term rental options. Detractors worry about stymieingadd to the supply of long- term rental options. Detractors worry about stymieingadd to the supply of long- term rental options. Detractors worry about stymieing cash flow to the city, including an estimated $4 million in annua l tax revenue.cash flow to the city, including an estimated $4 mi llion in annual tax revenue.cash flow to the city, including an es timated $4 million in annual tax revenue. The measure seeks to reduce occupancy limits for STR units and eliminate themThe measure seeks to reduce occupancy limits fo r STR units and eliminate themThe measure seeks to reduce occ upancy limits for STR units and eliminate them completely by the end of 2021 outside the tourist core, which ru ns alongcompletely by the end of 2021 outside the tourist core, which runs alongcompletely by the end of 2021 outside the touri st core, which runs along Highway 50 from Ski Run Boulevard to the Nevada border. Ther e are about 1,400Highway 50 from Ski Run Boulevard to the Ne vada border. There are about 1,400Highway 50 from Ski Run Bo ulevard to the Nevada border. There are about 1,400 units outside the tourist core and 400 within it. Measure T grant s full- time Southunits outside the tourist core and 400 within it. Meas
  • 71. ure T grants full- time Southunits outside the tourist core and 400 within it. Meas ure T grants full-time South Lake Tahoe residents an exemption to the new rules.Lake Tahoe residents an exemption to the new rules.Lake Tahoe residents a n exemption to the new rules. Before Measure T, the city had taken other measures to curb unc hecked STRBefore Measure T, the city had taken other measure s to curb unchecked STRBefore Measure T, the city had taken ot her measures to curb unchecked STR growth. In October 2017, for example, the city put a moratorium on vacationgrowth. In October 2017, for example, the city put a moratorium on vacationgrowth. In October 2017, for example, t he city put a moratorium on vacation rental permits, and at the end of that year enacted heavy fines fo r partying,rental permits, and at the end of that year enacted hea vy fines for partying,rental permits, and at the end of that year e nacted heavy fines for partying, illegal parking and other nuisance issues.illegal parking and oth er nuisance issues.illegal parking and other nuisance issues. Still, some residents felt that wasn’t enough. In late 2017, two S outh Lake TahoeStill, some residents felt that wasn’t enough. In late 2017, two South Lake TahoeStill, some residents felt that wasn’t enough. In late 2017, two South Lake Tahoe citizens started to circulate a petition to get Measure T on the b allot. The Tahoecitizens started to circulate a petition to get Me asure T on the ballot. The Tahoecitizens started to circulate a pe tition to get Measure T on the ballot. The Tahoe
  • 72. Neighborhoods Group formed to back it, and in April 2018 it su bmitted theNeighborhoods Group formed to back it, and in April 2018 it submitted theNeighborhoods Group formed to back it, a nd in April 2018 it submitted the necessary signatures to get it on that year’s ballot.necessary sig natures to get it on that year’s ballot.necessary signatures to get it on that year’s ballot. But it appears the fight is just beginning. In December, the Sout h Lake TahoeBut it appears the fight is just beginning. In Dece mber, the South Lake TahoeBut it appears the fight is just begin ning. In December, the South Lake Tahoe Property Owners Group filed suit against the city, saying the me asure isProperty Owners Group filed suit against the city, sayin g the measure isProperty Owners Group filed suit against the cit y, saying the measure is 2/11/2019 Lake Tahoe houses sit vacant while locals struggle to find affordable housing - SFChronicle.com https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses- sit-vacant-while-locals-13601651.php 5/7 unconstitutional and unenforceable and infringes on property o wners’ rights.unconstitutional and unenforceable and infringes o n property owners’ rights.unconstitutional and unenforceable an d infringes on property owners’ rights. The measure also took a blow when, on Dec. 24, an El Dorado C ounty judge put aThe measure also took a blow when, on Dec. 2 4, an El Dorado County judge put aThe measure also took a blo w when, on Dec. 24, an El Dorado County judge put a
  • 73. temporary stay on the new occupancy limits that were set to tak e immediatetemporary stay on the new occupancy limits that we re set to take immediatetemporary stay on the new occupancy li mits that were set to take immediate effect, citing concerns over how it would affect the busy holida y season.effect, citing concerns over how it would affect the bus y holiday season.effect, citing concerns over how it would affec t the busy holiday season. As a result, it’s too early to tell whether the city will see a signi ficant downturn inAs a result, it’s too early to tell whether the c ity will see a significant downturn inAs a result, it’s too early to tell whether the city will see a significant downturn in STRs this year.STRs this year.STRs this year. Placer CountyPlacer CountyPlacer CountyPlacer County Stretching from Tahoma on the West Shore of Lake Tahoe to Ki ngs Beach on theStretching from Tahoma on the West Shore of Lake Tahoe to Kings Beach on theStretching from Tahoma on th e West Shore of Lake Tahoe to Kings Beach on the border of Nevada, eastern Placer County encompasses a diverse range ofborder of Nevada, eastern Placer County encompasses a diverse range ofborder of Nevada, eastern Placer County encom passes a diverse range of neighborhoods as well as the ski- area communities of Squaw Valley andneighborhoods as well as the ski- area communities of Squaw Valley andneighborhoods as well as the ski-area communities of Squaw Valley and
  • 74. Northstar. It has about 2,500 STRs, according to the council’s st udy, whichNorthstar. It has about 2,500 STRs, according to the council’s study, whichNorthstar. It has about 2,500 STRs, accor ding to the council’s study, which brought in an estimated $10.6 million through transient occupan cy taxes in 2018.brought in an estimated $10.6 million through t ransient occupancy taxes in 2018.brought in an estimated $10.6 million through transient occupancy taxes in 2018. To manage the yearly uptick in STR usage, the county is workin g on reducingTo manage the yearly uptick in STR usage, the co unty is working on reducingTo manage the yearly uptick in STR usage, the county is working on reducing nuisance issues and increasing enforcement. In December, Place r updated itsnuisance issues and increasing enforcement. In Dec ember, Placer updated itsnuisance issues and increasing enforce ment. In December, Placer updated its STR ordinances, including requiring a designated local contact within 50 milesSTR ordinances, including requiring a designate d local contact within 50 milesSTR ordinances, including requir ing a designated local contact within 50 miles for renters to respond to complaints; a good neighbor “fact shee t” to be posted onfor renters to respond to complaints; a good ne ighbor “fact sheet” to be posted onfor renters to respond to com plaints; a good neighbor “fact sheet” to be posted on the property about issues including parking, trash and noise; saf ety information;the property about issues including parking, tras h and noise; safety information;the property about issues includi ng parking, trash and noise; safety information; and more.and more.and more.
  • 75. However, policymakers there appear less interested in limiting l andowners’However, policymakers there appear less interested i n limiting landowners’However, policymakers there appear less interested in limiting landowners’ ability to rent, citing the wide range of services that the occupa ncy taxes fund,ability to rent, citing the wide range of services t hat the occupancy taxes fund,ability to rent, citing the wide ran ge of services that the occupancy taxes fund, which include the Sheriff’s Department, public transportation, t ourismwhich include the Sheriff’s Department, public transporta tion, tourismwhich include the Sheriff’s Department, public tran sportation, tourism marketing and more.marketing and more.marketing and more. Jennifer Merchant, Placer County’s deputy CEO for Lake Tahoe , says she isJennifer Merchant, Placer County’s deputy CEO for Lake Tahoe, says she isJennifer Merchant, Placer County’s depu ty CEO for Lake Tahoe, says she is working to address the housing situation but doesn’t believe so mething akin toworking to address the housing situation but doe sn’t believe something akin toworking to address the housing sit uation but doesn’t believe something akin to Measure T is the solution. “Prohibiting STRs outright would not necessarily yieldMeasure T is the solution. “Prohibiting STRs o utright would not necessarily yieldMeasure T is the solution. “P rohibiting STRs outright would not necessarily yield the deserved result in improving our housing shortage, but it wo uld have athe deserved result in improving our housing shortage , but it would have athe deserved result in improving our housin
  • 76. g shortage, but it would have a negative impact on the local economy,” Merchant says.negative impact on the local economy,” Merchant says.negative impact o n the local economy,” Merchant says. 2/11/2019 Lake Tahoe houses sit vacant while locals struggle to find affordable housing - SFChronicle.com https://www.sfchronicle.com/travel/article/Lake-Tahoe-houses- sit-vacant-while-locals-13601651.php 6/7 Placer County has carried out surveys with second- home owners and looked atPlacer County has carried out survey s with second- home owners and looked atPlacer County has carried out survey s with second-home owners and looked at similar mountain towns outside of Tahoe. The results haven’t co nvincedsimilar mountain towns outside of Tahoe. The results ha ven’t convincedsimilar mountain towns outside of Tahoe. The re sults haven’t convinced Merchant that limiting STRs would open up more long- term housing. “I haven’tMerchant that limiting STRs would ope n up more long- term housing. “I haven’tMerchant that limiting STRs would ope n up more long-term housing. “I haven’t seen any empirical data that demonstrates a significant impact o n long- termseen any empirical data that demonstrates a significant imp act on long- termseen any empirical data that demonstrates a significant imp
  • 77. act on long-term rentals that directly correlates from regulating STRs,” she says.r entals that directly correlates from regulating STRs,” she says.r entals that directly correlates from regulating STRs,” she says. TruckeeTruckeeTruckeeTruckee The Nevada County town, with 17,000 residents and an estimate d 1,700 STRs, isThe Nevada County town, with 17,000 resident s and an estimated 1,700 STRs, isThe Nevada County town, wit h 17,000 residents and an estimated 1,700 STRs, is juggling a plethora of housing and commercial developments an d upcomingjuggling a plethora of housing and commercial devel opments and upcomingjuggling a plethora of housing and comm ercial developments and upcoming changes to the size and fabric of the town.changes to the size an d fabric of the town.changes to the size and fabric of the town. For example, a development is essentially doubling the size of T ruckee’sFor example, a development is essentially doubling the size of Truckee’sFor example, a development is essentially dou bling the size of Truckee’s downtown, including affordable housing units. A project is also in the works todowntown, including affordable housing units. A project is also in the works todowntown, including affordable h ousing units. A project is also in the works to build 137 deed- restricted, prefabricated housing units near Truckee’s downtown .build 137 deed- restricted, prefabricated housing units near Truckee’s downtown .build 137 deed-
  • 78. restricted, prefabricated housing units near Truckee’s downtown . A long- standing STR issue here: Some renters don’t register their prope rties.A long- standing STR issue here: Some renters don’t register their prope rties.A long- standing STR issue here: Some renters don’t register their prope rties. That means not only that the city doesn’t collect taxes on those units but alsoThat means not only that the city doesn’t collect ta xes on those units but alsoThat means not only that the city doe sn’t collect taxes on those units but also that the scope of the STR presence in Truckee is unknown to cit y leaders.that the scope of the STR presence in Truckee is unkn own to city leaders.that the scope of the STR presence in Truck ee is unknown to city leaders. To address that issue, in June 2016, Truckee was one of the first five cities in theTo address that issue, in June 2016, Truckee w as one of the first five cities in theTo address that issue, in June 2016, Truckee was one of the first five cities in the nation to hire a company called Host Compliance to identify ST Rs and help localnation to hire a company called Host Complian ce to identify STRs and help localnation to hire a company calle d Host Compliance to identify STRs and help local officials register and track them. The company now has more th an 150 clientsofficials register and track them. The company no w has more than 150 clientsofficials register and track them. Th e company now has more than 150 clients