a Better Bubble™
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For more than five years, the mayor of Reno, Nevada, has supported the demolition of dozens of dilapidated motels that provided shelter for thousands of residents squeezed by the city’s housing crisis, rather than rehabilitate the buildings to provide affordable housing. Now she’s changing course.
Mayor Hillary Schieve is proposing to spend hundreds of millions of dollars to acquire and rehabilitate motels in downtown through the Reno Housing Authority. In fact, the agency has already moved quietly to buy two shuttered buildings. Last week, the agency submitted an offer to buy the Bonanza Inn, a closed 58-unit motel with a history of code violations that is now part of an estate sale. It also submitted a letter of intent to make an offer on a much larger property — the 19-story former Sundowner casino-hotel.
Details of the offers — the prices, contingencies and financing — are not public. The RHA’s board of commissioners discussed the offers last month in a series of closed-door meetings allowed under an exemption in the state’s open meeting law. An RHA spokesperson said the agency has enough funds to purchase the Bonanza Inn but would need to secure financing for the Sundowner purchase. An early estimate by the RHA indicated it would cost $22 million to buy both properties and up to $50 million to rehab the buildings.
The purchases would be the beginning of a broader effort to increase affordable housing in the region, Schieve said. She supports using part of the city’s share of federal stimulus money from the American Rescue Plan Act and would like to see the state, the county and the neighboring city of Sparks chip in money, as they do for other regional projects such as Reno’s homeless shelter. Schieve also wants to explore whether the housing authority can use its existing housing stock as collateral for bonds to help finance more affordable housing. She’d like to borrow at least $200 million. She didn’t provide details on her plans for the additional funding.
“We have a real opportunity when it comes to workforce and affordable housing,” Schieve said.
The city’s about-face follows a ProPublica investigation that found Reno did little to deter the demolition of similar motels that housed some of the city’s most vulnerable residents. Nor did the city provide any incentives for landowners to replace that housing. One developer, casino-owner Jeff Jacobs, has been responsible for most of the motel demolitions, razing nearly 600 housing units since 2017. Schieve and other council members posed for photos during some of those demolitions, celebrating the elimination of what they said were blighted properties to make way for a proposed entertainment district.
After widespread criticism of the demolitions, Jacobs recently announced he would be willing to donate up to $15 million in land for an affordable housing and public parking project. The donation would be contingent on the housing authority financing the project and the city acquiring additional land, he said.
Jacobs has been assembling more than 100 parcels in downtown Reno for what he describes as a $1.8 billion entertainment district that would include hotels, restaurants and an amphitheater. He said the motels he demolished were slums that couldn’t be remodeled and said he provided relocation assistance to most of the people who lived in them.
The property sought by the Reno Housing Authority sits within Jacobs’ proposed district, directly across from his signature casino, the Sands Regency. In fact, the agency’s letter of intent on the Sundowner includes a vacant parcel on a block primarily owned by Jacobs.
The Sundowner has been vacant since 2003. The Bonanza Inn, however, was only recently listed for sale following the death of its owner. Her son told the Reno Gazette Journal that the estate was forced to sell the motel, which had been vacant for more than a year, following aggressive code enforcement efforts by the city. His family couldn’t afford to make the required repairs, he told the newspaper. The property had been cited multiple times for code violations since 2012, according to public records.
In an interview with ProPublica, Schieve reiterated that she doesn’t think “slumlords should be landlords,” but also said she doesn’t favor wholesale demolition of the hotels.
“If you can rehab something, then that’s great, obviously, and if it makes sense to,” Schieve said. “I honestly believe in saving everything you can.”
She added, “I’m not like, ‘Let’s demolish everything.’ That’s not who I am.” Rather, she said, she doesn’t believe people should be forced to live in terrible conditions.
This is the city’s first attempt, however, at preserving such buildings. In addition to supporting Jacobs’ razing of mostly squalid motels, the city used its blight fund in 2016 to finance the demolition of two vacant motels despite pleas from the community to preserve them as housing.
Schieve said the city hasn’t had the financial resources to buy and rehab motels for housing. Federal stimulus money has now made it possible to pursue such acquisitions, she said.
“It’s tough to build it. It’s expensive,” she said. “With the ARPA funds, it really gives us a foot in the door.”
Hopefully, you will recall our discussion about one YouTuber, Totally Not Mark, suddenly getting flooded with 150 copyright claims on his YouTube channel all at once from Toei Animation. Mark's channel is essentially a series of videos that discuss, critique, and review anime. Toei Animation produces anime, including the popular Dragon Ball series. While notable YouTuber PewDiePie weighed in with some heavy criticism over how YouTube protects its community in general from copyright claims, the real problem here was one of location. Matt is in Ireland, while Toei Animation is based out of Japan. Japan has terrible copyright laws when it comes to anything resembling fair use, whereas Ireland is governed by fair dealing laws. In other words, Matt's use was just fine in Ireland, where he lives, but would not be permitted in Japan. Since YouTube is a global site, takedowns have traditionally been global.
Well, Matt has updated the world to note that he was victorious in getting his videos restored and cleared, with a YouTube rep working directly with him on this.
But shortly after, as Fitzpatrick revealed in a new video providing an update on the legal saga, someone “high up at YouTube’’ who wished to remain anonymous, reached out to him via Discord. Fitzpatrick said the contact not only apologized for his situation not being addressed sooner, but divulged a prior conflict between YouTube and Toei regarding his videos fair use status.
“I’m not going to lie, hearing a human voice that felt both sincerely eager to help and understanding of this impossible situation felt like a weight lifted off my shoulders,” Fitzpatrick said.
Hey, Twitch folks, if you're reading this, this is how it is done. But it isn't the whole story. Before the videos were claimed and blocked, Toei had requested that YouTube manually take Matt's videos offline. YouTube pushed back on Toei, asking for more information on its requested takedowns, specifically asking if the company had considered fair use/fair dealing laws in its request. Alongside that, YouTube also asked Toei to provide more information as to what and why Matt's videos were infringing. Instead of complying, Toei utilized YouTube's automated tools to simply claim and block those 150 videos.
The following week, a game of phone tag ensued between Toei, the Japanese YouTube team, the American YouTube team, Fitzpatrick’s YouTube contact, and himself to reach “some sort of understanding” regarding his copyright situation. Toei ended up providing a new list of 86 videos of the original 150 or so that the company deemed should not remain on YouTube, a move Fitzpatrick described as “baffling” and “inconsistent.” Toei, he concludes, has no idea of the meaning of fair use or the rules the company wants creators to abide by.
“Contained in this list was frankly the most arbitrary assortment of videos that I had ever seen,” he said. “It honestly appeared as if someone chose videos at random as if chucking darts at a dart board.”
While Matt regained control of his videos thanks to his work alongside the YouTube rep, he was still in danger of Toei filing a lawsuit in Japan that he would almost certainly lose, given that country's laws. Fortunately, YouTube has a method for blocking videos based on copyright claims in certain countries for these types of disputes. The Kotaku post linked above suggests that this method is brand new for YouTube, but it isn't. It's been around for a while but, somewhat amazingly, it appears to have never been used specifically when it comes to copyright laws in specific countries.
YouTube’s new copyright rule allows owners like Toei to have videos removed from, say, Japan’s YouTube site, but said videos will remain up in other territories as long as they fall under the country’s fair use policies. To have videos removed from places with more allowances for fair use, companies would have to argue their cases following the copyright laws of those territories.
And so Matt's review videos remain up everywhere except in Japan. That isn't a perfect solution by any stretch, but it seems to be as happy a middle ground as we're likely to find given the circumstances. Those circumstances chiefly being that Toei Animation for some reason wants to go to war with a somewhat popular YouTuber who, whatever else you might want to say about his content, is certainly driving interest publicly in Toei's products, for good or bad. This is a YouTuber the company could have collaborated with in one form or another, but instead it is busy burning down bridges.
“Similarly to how video games have embraced the online sphere, I sincerely believe that a collaborative or symbiotic relationship between online creators and copyright owners is not only more than possible but would likely work extremely well for both sides if they are open to it,” Fitzpatrick said.
That Toei Animation is not open to it is the chief problem here.
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