East Oakland property acquired by nonprofit in $10 deal; housing planned

In the city of Oakland, the high cost of housing has reached a crisis level, and it's forcing many African American residents out of the city.

But a new housing proposal is attempting to battle both those problems, and it starts with a real estate deal that sounds too good to be true.

Until recently, a vacant lot near the corner of MacArthur and 82nd Avenue in East Oakland was filled with weeds growing 10 feet high. What Carolyn Johnson, who goes by CJ, saw was an opportunity.

"I don't see these weeds," she told CBS News Bay Area. "Actually, I don't. Some call me a little crazy, but I don't see this. I see a beautiful future. I see what people deserve."

Johnson runs the Centers of Excellence Network Foundation in Oakland, a nonprofit that just purchased the land from Alameda County to be part of the so-called Black Cultural Zone in East Oakland. The parcel, valued at $1.2 million, has been empty for more than 10 years and now has a tax debt of $1.7 million.

"When the liens and expenses got to be more than the value of the property, no one, who's not crazy, is ever going to buy something and you owe more," she said. "So, they had to forgive it.  But they didn't want to forgive it for just any kind of development. It has to do something good for the community, and we need housing."

So, the plan is to build a mixed-use complex with retail on the bottom and at least 40 units of affordable housing above. But what's amazing is what CJ had to pay for the property: $10 dollars!

However, she said, when it's finished it won't be cheap.

"$50 million, in today's dollars," CJ said.

And so far?  "I have $10 invested!" she added

But it's no pipe dream. Another Black Cultural Zone property known as Liberation Park will break ground on a new housing development in October.  They were able to raise $130 million in five years for that one.

CJ used to walk past the empty lot on her way to high school, but she now feels a higher calling.

Through the 1990s, Oakland was a historically Black-majority city, but with gentrification it's now down to 20%, and is projected by 2040 to be less than 10%.

"And I think, after the shock of the crack epidemic and the foreclosure crisis, we have been able to say, wait a minute, we can't let this happen," she said.  "Many of us have gone away, gone to other schools, and come back to help.  This is my call to all of the heroes from Oakland, with all of your talent. We need you back here in East Oakland, and Oakland, to bring all that you know to help make it work.  Because this is hard work."

While it may be hard work, it's starting with a great deal.

The county land was sold under a little-used law called a Chapter 8 transfer. Under those rules, selling public property at a reduced price requires that it be put to a good public use, in this case, affordable housing.  But a million-dollar property for 10 bucks?

"Ten dollars, I'll be honest, is surreal," CJ said, laughing.  "But I'm appreciative of it and we will honor what they gave it to us for. We will not play around. We will do what we said we're going to do. We're going to build housing here because that's why they did it for us. Not as a gift or a giveaway. We made a promise and we're going to keep it."

CJ expects it will take years to raise the money for the project, and in the meantime, the lot will be transformed into a peaceful community gathering space.  She said she's confident it will happen, but like any other improvement project in Oakland, you first must be able to see past the weeds.