Ministers have financial ties to developer

Two of the San Francisco church leaders who this week praised plans to build condominiums on the former Hunters Point Naval Shipyard have an economic stake in the development - as partners with the project's main developer, the Lennar Corp.

While the ministers say they have been up front about their involvement, it came as a shock to some community members.

Some residents of Bayview-Hunters Point are protesting the development because they say dust kicked up from the site is causing health problems, such as asthma and nosebleeds. Hundreds of supporters and opponents of the project turned out Tuesday at a Board of Supervisors meeting about the health concerns.

The ministers - the Rev. Arelious Walker of True Hope Church of God in Christ and the Rev. J. Edgar Boyd of Bethel AME - said at the meeting that there is no proof that naturally occurring asbestos and dust are a danger, and they urged the project to move forward. The city Public Health Department and other agencies said it is impossible to test the health effects of the dust and there is no proof it is a danger. The Board of Supervisors voted to let the project continue.

Boyd, in his testimony at the public hearing, did not acknowledge his financial relationship with Lennar. Walker said that he represented Tabernacle Affiliated Developers, but did not explain what that is.

The ministers acknowledged the financial relationship when asked about it on Wednesday by The Chronicle.

Boyd and Walker are part of a 2-year-old development team - Tabernacle Affiliated Developers - that includes the Rev. James McRay of Jones Memorial United Methodist Church, the Rev. Donald Green of San Francisco Christian Center and Calvin Jones of Providence Baptist Church. Under their contract with Lennar, the Tabernacle group will build about 200 affordable homes, Walker said. The profits from those home sales will go to Tabernacle and the five ministers.

They pointed to press releases and Web sites explicitly disclosing the relationship, and said they regularly tell their parishioners about their development efforts, which don't involve church money. They said they began their affordable housing development efforts to stanch African American flight from the city to cheaper suburbs.

Redevelopment has historically driven African Americans from neighborhoods like the Western Addition, said Walker, 76, a lifelong resident of the Bayview.

The area's toxic land, lack of jobs, inadequate housing and high crime all are problems, Walker said. But, he added, because construction dust cannot be proved to be a health issue, the development should move forward.

"We need some strong economic development to change the paradigm for quality of life," he said.

Bayview community activist Marie Harrison said she was outraged to learn that local ministers are working with Lennar as developers.

"Some of these pastors can't decipher between church and politics," she said. "When I found out J. Edgar Boyd was in business with Lennar, my stomach did loops.

"I really think there should be a separation between religion and politics. He doesn't even live in this community nor have a church in this community. He has no connection."

Christopher Muhammad, a Nation of Islam minister who runs a school in the area, said his students suffer health problems from the dust and called for a halt to the development until health tests are done.

"I am in pain because I do see a community so wounded, so ill-affected by its economic deprivation over the years that they are forced to choose between their health and jobs," said Muhammad.

Kofi Bonner, president of Lennar's urban land division and the company's leading executive in San Francisco, said the company is required to work with "community builders" as part of its redevelopment agreement. Faith-based groups are among the options, he said.

"It's all very aboveboard," Bonner said.

Boyd said the community will gain from Tabernacle's involvement.

"Our company will profit but also offer opportunities for the community," Boyd said. "You cannot help someone off the ground if you are on the ground yourself.

"We will get above ground and then reach back and assist."

E-mail the writers at mkuruvila@sfchronicle.com and lfulbright@sfchronicle.com.