New model of development on the rise in downtown Oakland

Developer Mike Ghielmetti (left) views construction with Konda Mason and Ashara Ekundayo of Impact Hub Oakland. Developer Mike Ghielmetti (left) views construction with Konda Mason and Ashara Ekundayo of Impact Hub Oakland. Photo: Lea Suzuki, The Chronicle Buy photo Photo: Lea Suzuki, The Chronicle Image 1 of / 8 Caption Close New model of development on the rise in downtown Oakland 1 / 8 Back to Gallery

Oakland may have more social-justice crusaders per capita than any city in the nation, and the do-gooders just got a development project tailor-made for their needs.

The Hive is a city block of new commercial, retail and housing being built in downtown Oakland that its developers hope will live up to its name: a swarming collective abuzz with entrepreneurs, inventors and businesses adhering to a new mantra - "People. Planet. Profit."

What makes the place special is that "while they're all doing business, there is also a sense of community," said Mike Ghielmetti, president of Signature Development Group, the project developer.

Built on the bones of Oakland's fading Broadway Auto Row, the Hive will include a mix of old structures converted for modern-day use as well as new construction. The project, bordered by Broadway and 23rd, 24th and Valley streets, will provide more than 100,000 square feet of office and retail space, a brewery, and 105 units of new housing. It will include shared outdoor patio space in an alleyway between the two anchor buildings that front Broadway.

Office construction is scheduled for completion at the end of the year, and 10 of the 11 spaces have already been leased. The housing phase should be completed by the end of 2015.

Ghielmetti isn't only the developer. He is building a new, two-story company headquarters at the site.

He envisions the Hive as a modern-day Bell Labs, a revolutionary think tank without corporate ID cards or lab coats. "You can understand what's happening or not, but it's a new energy and I want to be close to it," he said.

The first two tenants are stellar examples of the kinds of businesses that will operate out of the Hive.

Numi Organic Tea is a company "rooted in the principle of creating a healthful product that nurtures people and honors the planet," according to its website. Its neighbor, Impact Hub Oakland, which moved in last week, wants nothing less than to change the world.

At first glance, the Impact Hub Oakland lobby looks like a sanctuary for slackers who've been kicked out of the coffee shops for hogging the Wi-Fi. But here the coffee is free and there is more going on than meets the eye.

It's one of 60 such centers around the world, including one inside The Chronicle building in San Francisco. Impact Hub Oakland defines itself as a business incubator, a place where self-employed entrepreneurs can rent work space in an open lobby area. There are enclosed offices for up-and-running business concerns, a conference room and a stage to host after-hours events.

The goal is to foster a collaborative environment where people can share ideas and experiences and brainstorm on new ones in an office designed for them.

One Hub client, BayBucks.com, an online company, is working on a barter system for use in business-to-business transactions, said Lisa Chacon, a Hub co-director.

The Hive, maybe the business model of the future, embraces unique innovations in urban design that are attracting the kind of interest and attention Oakland wants. And with San Francisco refugees pouring in, it also represents the continuation of the rising fortunes of downtown Oakland, a revitalization effort that just keeps on going.

There is such a development boom under way in Oakland right now that city officials no longer grouse about the loss of state-funded local redevelopment agencies.

It's uncertain whether the Hive and its tenants will set the business world ablaze with new, pioneering ideas, but options are always nice, and the project is a viable alternative to the buttoned-down traditional business structure that younger generations are rejecting in ever-increasing numbers.

This column has been corrected since it appeared in print editions.