San Diego City Council Meeting - March 10, 2025: Homelessness, Cannabis Tax, Affordable Housing
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San Diego City Council Meeting - March 10, 2025
The San Diego City Council met on March 10, 2025, to consider several items including a resolution supporting state legislation to address homeless encampments on state property, a proposal to increase the cannabis business tax from 8% to 10%, and loan agreements for two affordable housing projects. The meeting began with a closed session on the All People's Church litigation, followed by public comment and council discussion on each agenda item.
Public Comments & Testimony
- All People's Church Lawsuit (Closed Session Item CS1): Michael Livingston, representing Save Del Cerro, urged the council to reject reconsideration of the All People's Church project, arguing the city had a defensible legal position under RLUIPA. He claimed the city's traffic study was flawed and that the church had already secured a facility in La Mesa. Another speaker, Cesar Javier, questioned which law should apply and called for collaboration.
- Item 200 – SB 569 (Homeless Encampments): Several speakers expressed support, including Aurora Livingston (Senator Blakespear's office), Clayton Fowler (Downtown San Diego Partnership), and Justine Murray (San Diego Regional Chamber of Commerce). They emphasized the need for better coordination with Caltrans to resolve encampments and connect people to services. Lived experience advisors, including Natalie Rashke and Julie Porter, voiced concerns about displacement and lack of resources, urging solutions that provide housing rather than just sweeps. John Brady suggested using travel trailers as emergency shelter.
- Item S400 – Cannabis Tax Increase: Speakers were divided. Supporters (e.g., Park Troutman, Madison) argued the increase would generate needed revenue and address public health concerns. Opponents, including cannabis workers and industry representatives (Eric Useya, Maribel McKenzie, Jessica McElfresh, Phil Rath), warned that higher taxes would drive consumers to the illicit market, harm businesses, and reduce city revenue. Some suggested alternative measures such as allowing extended hours, banning intoxicating hemp, and enforcing delivery taxes.
- Items S401/S402 – Sara Mesa Affordable Housing: Kat Stemple and Cindy Moore, representing Sara Mesa residents, opposed the 60-unit project, citing concerns about density (179 units per acre), insufficient parking (22 spaces for 60 units), building scale (5 stories vs. surrounding 1-2 stories), and lack of a traffic study. They supported the original 30-unit proposal. Cesar Javier spoke in favor of affordable housing but questioned the project's cost and timeline. Joyce (remote) praised Councilmember Campillo’s handling of the item at committee.
- Item S403 – Navajo Family Apartments: Cesar Javier expressed frustration that District 9 has not seen similar affordable housing projects. Joyce (remote) supported the loan but noted the high cost per unit ($680,000).
- Non-Agenda Public Comment: Speakers raised concerns about air quality from a ceramics kiln, trash collection fees, police commission appointments, cannabis enforcement, and committee scheduling.
Discussion Items
- Item 200 – Resolution Supporting SB 569: Councilmember Whitburn presented the resolution, highlighting that the city receives ~300 complaints monthly about encampments on state rights-of-way and that there were 60 fires near freeway encampments in the past year. Staff noted that 81% of extremely low-income households in the county spend over half their income on rent, and there is a shortage of 134,500 affordable homes. The bill would require Caltrans to coordinate with local governments, streamline delegated maintenance agreements, and provide funding for outreach and cleanup. Councilmembers discussed the need for resources, monitoring, and ensuring that people are not simply moved to other areas. The resolution passed unanimously 9-0.
- Item S400 – Cannabis Business Tax Increase: City Treasurer Liz Correa presented that the current 8% tax on cannabis businesses (excluding production facilities) would be raised to 10%. Tax revenue from cannabis was $18.9M in FY23, $17.2M in FY24, and $8M in the first six months of FY25. The increase is estimated to generate an additional $661,000 in the current fiscal year and $3.97 million annually. Councilmembers debated the impact on legal businesses versus the illicit market, with some calling for enforcement against out-of-city sellers and regulation of intoxicating hemp. The IBA noted that tax receipts have declined year-over-year and that the projected additional revenue might be optimistic. The motion passed 8-1 (Councilmember Foster dissenting).
- Items S401/S402 – Sara Mesa Apartments (Disposition and Loan): Staff presented a 60-unit affordable housing project on city-owned land at 3440 Sand Rock Road, with 30 units set aside for veterans experiencing homelessness. The project cost is $42.4 million, with a $4 million bridge-to-home loan from the city. Councilmember Campillo moved approval, noting that the project complies with zoning and that the developer, Community Housing Works, has a strong track record. Some concerns were raised about the building's height and parking, but staff confirmed the project meets all requirements. The ground lease is for 65 years, with the city retaining ownership. The motion passed unanimously 9-0.
- Item S403 – Navajo Family Apartments (CDBG Loan): Staff presented a $3.1 million CDBG loan for acquisition of a 44-unit affordable housing project at 7005 Navajo Road. The project will serve households earning up to 60% of AMI, with 11 units for persons with intellectual or developmental disabilities. Total project cost is $30.6 million. The IBA noted that the project’s per-unit city subsidy ($144,000) exceeds the Housing Commission’s $100,000 cap, but this project was not subject to that cap. The motion passed unanimously 9-0.
- Adjournment in Memory of Leon L. Williams: Councilmember Foster led a tribute to the first Black city councilmember and county supervisor, who died recently. The council adjourned in his memory.
Key Outcomes
- Item 200: Adopted resolution in support of SB 569 (9-0).
- Item S400: Approved ordinance to increase cannabis business tax from 8% to 10% (effective May 1, 2025), excluding production facilities (8-1).
- Item S401: Approved disposition and development agreement and ground lease for Sara Mesa Apartments (9-0).
- Item S402: Approved $4 million affordable housing loan agreement for Sara Mesa Apartments (9-0).
- Item S403: Approved $3.1 million CDBG loan for Navajo Family Apartments (9-0).
- Council recessed into closed session at 11:00 AM and reconvened at 2:00 PM. The city attorney reported nothing from closed session.
Meeting Transcript
Did you hear your gospel pride with the cave to carry you over? Did you hear you make a little song with one last time? Your voice. Your voice. Find yourself a girl and settle down. Live a simple life in a quiet town. Steady as she goes. Steady as you go. So steady as she goes. Your friends have shown a kink in a single life. You've had too much to think. Now you need a wife. Steady as he goes. So steady as you go. Steady as she goes. Where did we go again? You found yourself a friend. I know you well. But no matter what you do, you always feel as long as it should end back. So steady as she goes. And your breast depleted to the pony stable glue. Then you get alone. Then you'll get alone. Steady as you go. So steady as you go Where we go again. You found yourself a friend that knows you well as you do. You always feel as though you said that is ready as you go. Steady as she goes on, down, but you the sound rather bound, stay the boy so down, but to the sound, better galaxy. So steady as you go, as she goes, Steady as you go, steady as she goes, she goes, so steady as you go, she go Steady as you go, by the steady now Steady as you go, by the steady now Steady as you go, by you steady now Steady as you go, by the steady now, steady as you go now that it's all said and done I can believe you were the one to build me up and tear me down like an old abandoned house what you said when you left Just left me cold and out of breath I felt too far was in way too deep Yes I let you get the best of me well I never thought we done shouldn't have started running a long time ago And I'm not about to die to a better I was not you all that you all you know slowly getting to I got this really old I like it better now big enough a piece of spending all the days put it in my back together I thought I'd never get through I got over you took a hammer to these walls dragged the memories down the hall pack your bags and walked away Now I'm bigger than a piece. I spent it all a day. She has put it in my back to get us through. I thought I never get through. I got over you. You took a hand look to these walls. Drag the memories down the hole. Pack your bags and walked away. There was nothing I could see. And when you slam the front door shut, a lot of others opened up, so did my eyes, so I could see that you never were the best for me. Well, I never thought we done it. I should have thought it running a long time ago. But I never thought I died too. I better run a doubt you're new, you know. Slowly getting cold, you I got this really over. I like it better. Now I'm bigger than a piece. But it all of angels put it in my heart to get never get through. And I never thought I doubt you I'm better up without you. I never thought it coming, I should have thought it running a long, long time ago. But I never thought I doubt you're better on without you, more than you all that you know.
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