San Diego City Council Meeting – September 8, 2025

The San Diego City Council convened on Monday, September 8, 2025, at 2:00 p.m. after a morning closed session. The meeting included presentations and votes on a zoo lease amendment, two affordable housing loan agreements, a loan assignment for the Mercado Apartments, and an informational report on Balboa Park connections. Public comment covered a wide range of topics, including opposition to paid parking, concerns about affordable housing financing, and critiques of city governance. The council also recognized the 2025 Mayor for the Day, Landry Gage, and heard remarks from the fire chief and mayor on wildfire preparedness.

Public Comments & Testimony

• Closed Session (CS1-CS5): Two remote speakers commented on litigation items. One speaker expressed appreciation for more detailed agenda information but criticized city spending on infrastructure and parking policies. The second speaker requested discussion on specifics of the motor vehicle versus pedestrian accident and urged early settlement to avoid costly trials.
• Item S400 – Zoo Lease Amendment: Numerous speakers opposed paid parking at the zoo, arguing it would hurt low-income families, zoo members, and regular visitors. Some called for a tiered pricing system with discounts for city residents and county residents. Others criticized the city's revenue motives and questioned how parking revenue would be shared. A few speakers opposed the zoo itself due to animal treatment.
• Items S403 and S404 – Affordable Housing Loans: Several speakers criticized the projects as benefiting developers and billionaires while failing the poorest residents. One speaker detailed a perceived fraud scheme involving tax credits and long-term affordability covenants. Others supported the projects but urged smoke-free policies. A few questioned the concentration of poverty in low-resource areas.
• Item S405 – Mercado Apartments: Public comment included opposition to further affordable housing loans, with claims of control and exploitation. Some speakers supported the project for preserving and adding affordable units in Barrio Logan. Concerns were raised about relocation and long-term affordability.
• Item S402 – Balboa Park Connections: Speakers were divided. Some praised the working group's vision for improving park-school connections, while others criticized the report as a step toward privatization, freeway lids, and control of public space. One speaker accused the chair of past misconduct.
• Non-Agenda Public Comment: Topics included opposition to RFID trash bins and the new trash fee, complaints about police oversight, calls for stronger marijuana regulations, concerns about youth cannabis use and suicide prevention, and demands for action on Torrey Pines glider port access. Many speakers expressed distrust of the council.

Discussion Items

• Item S400 – First Amendment to Zoo Lease (San Diego Zoo): The council approved a resolution to waive part of Council Policy 700-10 and authorize execution of the first lease amendment. The change removes a sentence that prohibited the zoo from charging different parking rates for different users, allowing the zoo to charge city residents less and to adjust parking fees in coordination with the city's paid parking rollout in Balboa Park (targeted for October 1, 2025). The IBA noted that the FY2026 budget assumes $3 million in revenue from zoo parking and urged a written commitment on revenue sharing. The zoo's treasurer confirmed this is a first step, with a full lease extension and revenue-sharing agreement expected by year-end. Councilmember Moreno opposed, citing concerns about cost-of-living increases and regressive fees. Councilmember Elo Rivera expressed hope for a 50/50 revenue split in the future.
• Items S403 and S404 – Affordable Housing Loan Agreements: Both projects received unanimous approval (8-0, Councilmember Campillo absent). S403 provides a $3 million loan to 73rd Street Investors LP for the 73rd Street Apartments (119 units) in the College Area. S404 provides a $5 million loan to Market Street Senior Housing LP for the Market Street Apartments (137 senior units) in Encanto. Both loans are at 3% simple interest with 55-year terms and affordability covenants. Staff noted the projects use Low and Moderate Income Housing Asset Funds, restricted to affordable housing. Councilmember Foster seconded motions. Councilmembers highlighted the need for family-sized units and resource-area distribution.
• Item S405 – Mercado Apartments Assignment and Amendment: The council unanimously approved (8-0) the assignment and amendment to loan documents for the Mercado Apartments in Barrio Logan. The project will preserve 132 existing affordable units and add 92 new units (total 222) through rehabilitation and new construction. Affordability will be extended 55 years. Councilmember Moreno made the motion, citing the importance of preservation and long-term affordability.
• Item S402 – Balboa Park San Diego High School Connections Report (Informational): Chair Michael Stepner presented the working group's planning framework, which includes recommendations for improved pedestrian and bike connections, green Rust Boulevard, freeway lids, joint use of parking, and design review. The report is a framework, not a plan. Councilmembers Whitburn and Elo Rivera thanked the group. Council President LaCava asked the mayor's office to circulate the report to departments for feedback, with a final report expected by year-end. No vote was taken.

Key Outcomes

• Item S400 – Zoo Lease Amendment: Approved 7-1 (Moreno no, Campillo absent). The amendment allows the zoo to charge variable parking rates and is the first step toward a broader lease negotiation.
• Item S403 – 73rd Street Apartments Loan: Approved 8-0. $3 million loan for 119 affordable family apartments.
• Item S404 – Market Street Apartments Loan: Approved 8-0. $5 million loan for 137 affordable senior apartments with on-site child care.
• Item S405 – Mercado Apartments Assignment: Approved 8-0. Loan documents amended to facilitate rehabilitation and construction of 222 affordable units.
• Item S402 – Informational Report: No action taken; staff directed to review and incorporate recommendations into park planning.
• Closed Session: Council voted 9-0 to accept a $425,000 settlement in the case of Larry Speller versus City of San Diego.
• Meeting Adjourned: Next regular council meeting scheduled for Tuesday, September 9, 2025, at 10:00 a.m.