Heart of hippie Haight in legal limbo, (July 2006)

Walls that witnessed four decades of community activism at 409 Clayton St. now surround stillness.

Few buildings in the Haight have held as much history since the Summer of Love, when a heady art collective called Happening House moved into the dozen downstairs rooms. But now that name brings to mind the multimillion-dollar real estate firm originally established to purchase the property so the Haight Ashbury Free Clinics could use the top floor.

Nobody would rent space to a radical medical center, so Free Clinics founder Dr. David Smith created Happening House Ventures for that very purpose. Almost 40 years and a healthy twist of irony later, a less-than-civil legal dispute has erupted between both his brainchildren conceived in 1967: the latter is now a disgruntled landlord while the former has moved most of its offices to the Mission.

Brief history of 409

The Free Clinics pioneered substance abuse treatment at 409 Clayton, and in that building ran and/or hosted many other progressive programs over the years—including HIV prevention and case management services, and youth needle exchange and drop-in centers. The Journal of Psychoactive Drugs—which spun off of the Clinics—called 409 home, as did the Haight Ashbury Ecumenical Ministry and the Haight Ashbury Service Association.
The aptly named activist organization 409 House inhabited the building for 37 years before leaving for 405 Shrader in December. Over that stretch, 409 House advocated civil rights, protested wars, and—often overlapping efforts with the Haight Ashbury Neighborhood Council, the San Francisco Information Clearinghouse, and the Council of Community Housing Organizations—championed affordable housing and empowered neighbors with planning knowledge and resources to influence local development. Leaders of those groups coordinated numerous campaigns for and against ballot measures out of 409 Clayton.

And when Jerry Garcia died in 1995, his widow Deborah Koons Garcia directed donations to the Free Clinics Detox Unit, then located at 409 Clayton.

Goodbye, good vibes

John Eckstrom, current CEO of the Haight Ashbury Free Clinics, Inc (HAFCI)—now neither free (sliding scale) nor of the Haight (discuss)—ousted Smith in February. Technically, Smith resigned, but HAFCI had raided his office for records and laid off his friends in a cost-cutting and culture-changing overhaul that signaled war between the Clinics’ founder and its relatively new management. Eckstrom was named CEO last year in the wake of an embarrassing and expensive embezzlement, for which CFO Carl Gill was arrested. Many believe the amount taken exceeds the official figure of $773,000, and the true cost must include subsequently divested public and private funding.

While cleaning house, Eckstrom claimed Smith improperly paid a business partner in 1989 with half of HAFCI’s stake in Happening House Ventures—which Smith had donated in 1967 so the Clinics would be partial owners of their buildings––and sued to reclaim its share.

Smith argued in a letter to the Guardian that HAFCI “has been paid its proportionate share of the profits from the beginning of the partnership,” and that Happening House was owed the value of HAFCI’s stake for “tenant improvements ordered by the clinic.” He said that in exchange for below-market-rate rent, the lease holds HAFCI responsible for maintaining the properties, and Smith is now suing HAFCI for repair costs on the still-occupied yet dilapidated buildings at 1692 Haight St. (where the new Homeless Youth Alliance is subletting to replace HAFCI's recently closed Youth Outreach) and 529 Clayton (Substance Abuse center), as well as the vacant 409 Clayton. (Note: the medical clinic at 558 Clayton has a different landlord, and HAFCI has not indicated any plans to relocate it.)

Court documents state that an estimated $500,000 to $1 million is needed to restore the buildings, and Smith is asking for the remainder of HAFCI’s interest in Happening House––which he values at roughly $1 million––to compensate the cost of repairs.

HAFCI did not respond to The Beat’s inquires, but a March press release quoted board chairman Eric Flowers stating that the Clinics “will continue to be diligent in pursuing a proper accounting of [our] interest in Happening House Ventures.”

In April, Eckstrom told the Guardian, “There are two questions. What’s HAFCI’s interest in Happening House? And what’s the value of Happening House?”

Happening House intends to sell 409 Clayton as a single-family dwelling, which it was before it became a hotbed of activism, and will sell 528 Clayton and 1692 Haight, as well. The true crux of this case is how, if at all, that impending multimillion-dollar windfall will be split between the organizations––once fraternal twins, now estranged siblings squabbling over their shares of the inheritance.

The parties have been in mediation for months, and don’t appear close to agreeing on the numbers. A June 13 settlement offer from HAFCI was rejected by Smith as “totally unreasonable.” Smith accuses HAFCI of failing to bargain in good faith. Another sit-down had not yet been scheduled when this article went to press.

A Fixer Upper

Meanwhile, 409 Clayton stands in a state of disrepair. A barely legible handwritten “private property” sign hangs along the side-walk-level railing, and a length of pipe blocks the stairs.

Smith charges that “the barrier to fixing up the property is HAFCI and its current administration,” and that Happening House cannot make repairs until the lawsuits are settled—or until HAFCI’s lease expires in June 2007.

But neighbors of 409 Clayton care less about the legal wrangling and more about when the blue building will be restored and occupied. "We're sick of the filth in the yard.…and there’s a big dead tree that’s ready to fall over and take out some power lines,” said a concerned resident who did not want to be identified. “There are a lot of kids and dogs around here. The [former site of] the Haight Ashbury Free Clinics is probably a health hazard now. It’s supposed to be a place that helps people get healthy. The Clinics can’t be straight with us as to why they can’t even put a little money into protecting it. There is no communication. No one really knows what’s going on internally.”

Amber Cafourek-Belasco, another longtime neighbor, is also troubled by the vacancy. "I love this building, it’s beautiful," she said wistfully. "It’d be nice if they could pull it back together.”

Community members hope the bad breakup between HAFCI and Happening House won't leave 409 Clayton empty for a full year. In the meantime, the Haight has lost a piece of its heart, as the historic building is now a place where nothing is happening.

Breezy Duncan contributed to this report.