Urban Alchemy requests additional $10 million on top of initial $3.1 million in funding

Supervisor Shamann Walton met with leaders the day before the budget hearing and he wasn't happy they didn't mention it

Office of Economic and Workforce Development (OEWD) Director Kate Sofis and Director of Economic Recovery Katherine Daniel went to the Board of Supervisors last Wednesday to ask for an additional $3.1 million for Urban Alchemy's Tenderloin Ambassadors program, plus another $3.3 million for a separate Downtown Ambassadors program.

The dustup started once OEWD staff added a last minute amendment to their funding request just moments before the hearing began. That set off all the Supervisors, especially Shamann Walton, who OEWD had just met with the day before but didn't mention that OEWD was planning to quadruple their funding request for Urban Alchemy.

That's right: another $10 million for Urban Alchemy on top of the $3.1 million they initially requested, for a total of $13.1 million more for Urban Alchemy.

The grilling during the two-hour hearing from all Budget Committee members ultimately resulted in continuing the hearing to today (March 14. At the conclusion of the hearing, Chair Connie Chan quipped, "That's gonna be a great hearing.”

But no one was angrier than Walton. Click here to watch a videotape of the hearing and below is a transcript of Walton’s exchange with Sofis and Daniel. (The next hearing is happening right now before the same committee.)

Supervisor Shamann Walton: I do have a question for Director Daniel or Director Sofis, whoever wants to answer. What day of the week did I last meet with you?

Director Katherine Daniel: I believe it was Tuesday, Supervisor.

Supervisor Walton: What's today?

Director Daniel: Today is Wednesday.

Supervisor Walton: Did you mention anything about amendments to me or my office?

Director Daniel: I believe so. I'm sorry, I thought that we did.

Supervisor Walton: Well I have a presentation. It wasn't in there so...when, did I just miss it, in our conversation?

Director Daniel: I thought...I mean. I, we uh. Oh sure…

Director Kate Sofis: Hi, Executive Director Sofis. Yeah at the beginning of that meeting we said, "Well, we have this hearing coming up and do you have any questions in advance," and we said that that could be the first part. And you said “we have no questions.”

Supervisor Walton: Correct. But I — did you mention anything about amendments? I didn't see anything about amendments, I didn't receive anything from you about amendments, unless there was something I missed.

Director Sofis: The...

Supervisor Walton: I'm talking about the additional $10 million, the additional $3 million. I don't remember that conversation.

Director Sofis: Yeah, we didn't go into it [yesterday].

Supervisor Walton: Correct. So what happened between our conversation yesterday and now? Why is this, why am I just now hearing about these amendments? I guess is my question.

Director Sofis: I think with respect to the concern that colleagues are rightfully raising about we are trying to get better at having some preview as to what authorities we would need. My team recommended and wanted to bring it before you today, the contracting authority for funding beyond the end of this year, because it was made clear to us by our partners that if we didn't have purview beyond the end of this fiscal year we would again be at risk in a few months of folks being laid off. So it's really our ability to try to bring forward to you as quickly as we could the guidance we are getting from the community.

Supervisor Walton: And I'm supposed to believe you didn't know this yesterday?

Director Sofis: Uh. I did not know that we were not clear in conveying that to all of you beforehand.

Interesting to note that once Hunters Point Family became Urban Alchemy, and once the SFPUC tightened up on its practice of directing community benefits payments (a story I broke in the Marina Times in July of 2020) it seems that all of the money for Urban Alchemy has been coming from the City, mostly running through OEWD. While Walton was actively involved with the SFPUC’s Community Benefits program, it seems he has little knowledge of Urban Alchemy’s funding structure since the arrest of Harlan Kelly and the subpoena (and subsequent resignation) of his deputy director and girlfriend, Juliet Ellis (both close friends of Walton’s).