San Diego City Council Meeting - April 8, 2026: Approval of New Century Center Project and Zoning Code Update
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Well, I mean we have about the same on both items.
On both items of the I I I know uh uh let me let me see how on the speakers on 332.
I think that we have a number of people that um have to we have a major convention in town that they are attending.
And what I'd like to do, because we only have one speaker in opposition on that item is go to that item next and then come back to 330.
So we're gonna go to 332 uh and we'll take the staff report, a brief staff report.
This is the proposed redevelopment of the Kearney Mesa General Dynamics Site Plan, the new Century Center plan.
This is a plan that has been worked on for a long time by city staff, by council members, to bring forward the reuse of this property so that it will be a true addition to the community.
Uh we appreciate the cooperation of General Dynamics.
I will say that from the beginning it was very important to me to have uh light industrial property, which we very badly need in this city as part of the plan, and I do see that it has been incorporated because I could not support the plan without it.
Uh we do have one speaker in opposition, so what I am going to do uh is uh have the staff report, and then I'm going to go to the speaker in opposition, and then we'll go back to those in favor.
Okay, could I have the staff report?
Yes, Mike Westlake.
Project director.
Thank you, Mayor Golding.
City Council members.
Uh my name is Mike Westlake from the Development Service Department.
I'm the project manager on the New Century Center project.
Uh the proposed new Century Center Master Development Concept Plan includes establishing market-oriented office light industrial around a central market square.
The uh western approximately 85 acres of the site located along the frontage of SR 163 is being redesignated from industrial and business parks general commercial and rezoned from M1B to CA to accommodate retail and entertainment uses.
This portion of the project will accommodate a mixture of retail, entertainment, and mixed commercial land use is totaling 1.4 million square feet.
The eastern approximately 159 acres of the project site will for the most part retain its existing industrial and business park land use designation and M1B zoning.
This component of the project is planned for a campus-style industrial and business park area, incorporating a compatible mix of office research and development, light manufacturing, and industrial uses totaling just over three million square feet, which exceeds the amount of square footage that was in the original General Dynamics Manufacturing Plant.
The new Century Center project was initiated by the Planning Commission in December of 1995, and active and frequent public review of this project has occurred ever since.
The applicant has been meeting monthly with the Kearney Mesa Community Planning Group and many other interested organizations over the life of this project.
After more than 50 meetings with the community over the last three years, the Kearney Mesa Planning Group voted to approve the new Century Center project.
All of the conditions recommending by the planning group have been satisfied.
The planning commission also reviewed this project in great detail.
Five separate planning commission meetings were held, including the initiation hearing, three workshops, and the final planning commission hearing last month.
On October 23rd, the planning commission voted unanimously to approve the New Century Center project.
In addition to the New Century Center project itself, the city manager has successfully negotiated a development agreement with General Dynamics Properties to provide significant and extraordinary public benefits to the communities of Kearney Mesa, Sarah Mesa, and the city as a whole.
And I would now like to introduce Marcel Escobar Eck, who will provide you a summary of the terms and the extraordinary benefits provided through the development agreement.
The city manager's office successfully concluded negotiations with General Dynamics Properties Incorporated on a 15-year development agreement.
The 15 year the development agreement provides for significant and extraordinary benefit to the City of San Diego in a number of ways.
The development agreement will be providing $500,000 towards the construction of the Sarah Mesa Library.
It will also be providing $500,000 towards exclusive Kearney Mesa enhancement fund.
$250,000 will be provided towards the I-15 Auxiliary Lane between Murphy Canyon Road and Friars Road.
There is a contingency in the development agreement that if a funding source is found for the I-15 auxiliary lane through other means, then that money will be split half towards the Kearney Mesa Enhancement Fund and half towards the Sarah Mesa Library.
Permanent preservation of approximately 1,400 acres of the General Dynamics property in the Sycamore Canyon area will be preserved through this development agreement.
Of the 1,100 acres that are on the northern portion of Sycamore Canyon, they uh General Dynamics will be able to sell credit mitigation credits to third parties, and 40% of any potential revenue that comes up in that area will be tagged towards the Mission Trails Regional Park Fund.
Marcel, would you please explain that to me?
Because this is the first time I've heard about it.
I'm not real happy about this.
This what you just said.
I want to hear that again.
The um could you go to the slide that has the Sycamore Canyon?
The property.
This is the Sycamore Canyon site that General Dynamics owns out in this area.
Site J is approximately 1,100 acres, and the area with the pink portion around it is approximately 248 acres.
The 248 acres will be dedicated to the City of San Diego upon execution of the development agreement.
The 1100 acres, which is Site J will be preserved through the Conservation Agreement, which is attachment J of the Development Agreement.
They will also have the ability to get mitigation credits on Site J.
Those mitigation credits will be available to General Dynamics Properties Incorporated to self-mitigate for the impacts of the property that's located outside of the MSCP preserve right here, as well as for their Kearney Mesa site.
It's uncertain whether or not they will get any mitigation credits above and beyond what they need to self-mitigate.
If they do get any mitigation credits above and beyond what they need to self-mitigate, then they will have the potential to make those available to third parties by sale.
If they successfully sell off any mitigation credits, the city of San Diego would get 40 percent of that revenue.
Was there no site uh more appropriate uh with more nexus than this?
Something that uh could have been in the sixth districts since that's where the impact is, and we know the traffic impact is going to be formidable.
Um the 40 percent that the city would possibly get is is a potential.
It may be nothing, and it may be a significant amount because we have not determined what number of mitigation credits are available on site J.
We really don't know what that 40 percent equates to.
This was something that came up at the last minute um after we had successfully negotiated the terms of the development agreement.
We this was something that came in above and beyond at the last minute on the negotiations.
And because a lot of this area is um of its proximity to Mission Trails Regional Park, that was something that was um offered as an option to tag any potential funds that come in towards Mission Trails Regional Park.
And because the trails would ultimately connect that park, that's why um it probably made sense.
The other thing is the with the I-15 uh auxiliary lane money, we do have the option that that might be split between the Sarah Mesa Library as well as the Kearney Mesa Enhancement Fund.
So we're hoping that that actually gets added to the Kearney Mesa Enhancement Fund as well as the library.
Okay, go ahead and and uh finish your report.
Your Honor, I want to hear a little bit more about this, but I think she should finish.
I let her finish and then we can go back and ask any questions.
Okay.
Um those are the main terms of extraordinary benefit on the development agreement.
In exchange for the extraordinary benefit that the City of San Diego is getting, it is a 15-year development agreement that will define the rules and regulations at this point in time for the development.
It's applicable to the project land use entitlements that are defined by all the concurrent actions which are being uh would be adopted today, and the fees would be capped for a maximum of five years on the project, which is consistent with what they would be entitled to through a vesting tentative map.
In addition to that, there are significant economic development benefits that come forth from the project as proposed.
A significant number of jobs and investment money are being brought forth into the Kearney Mesa community as well as citywide.
Approximately 12,000 jobs are being brought into the region specifically into the Kearney Mesa area, and over $4 million in tax revenue will be generated by the proposed project.
The project also proposes new industrial development within the area, which will be an increase over the industrial development that existed when General Dynamics was in full operation.
As far as the potential retail impacts from the site, there have been numerous studies done that we have uh Jim Davies from our economic development staff here who can answer some questions on that if you have them later.
And the consultant uh is also here to answer any questions, but the analysis has shown that the draw on the retail market around the area will not be a significant impact to any of the surrounding centers.
Mike In conclusion, the city manager is recommending approval of the new Century Center project, which includes a number of discretionary actions.
The city manager is recommending that the city council take the following actions.
Number one, certify EIR LDR number 960165, adopt the findings and statement of overriding considerations and adopt the mitigation monitoring and program.
Number two, adopt the amendment to the Progress Guidance General Plan and Kearney Mesa Community Plan and adopt the new Century Center Master Plan.
Number three, approve the development agreement, and number four, adopt the remaining discretionary actions associated with this project, including a rezoned vesting tenative map, planned commercial development permit, planned industrial development permit, resource protection ordinance permit, and the new Century Center Development Standards and Design Manual.
And that concludes the staff report.
Thank you.
We'll go to Council for questions of staff first.
Would you like to wait and okay?
Okay, keep your number there.
These are questions of staff.
Then we'll go to public comment on this.
I have a question.
Yeah, go ahead, Chris.
Okay.
I guess to Marcel on the extraordinary benefits, public benefits.
Can you we've got $500,000 going to Sarah Mesa Library construction, $500,000 to the special enhancements.
Is that the Sycamore Canyon?
No.
Okay.
What what are the special enhancements?
That is just a pool of money that can be used by the Kearney Mesa community to pool it with other money for projects in the Kearney Mesa area.
Okay, so that will be used in the local area, correct.
And it will be designated by the community planning group, the community association.
What?
In conjunction with the council office, correct.
Okay.
And I guess at $500,000 level, we'll be looking at some of that again here at the city at the city council.
Correct.
It could be broken up.
It's not identified for any one source except for the fact that it specifically can only be used in the Kearney Mesa area.
I think the the the story behind that is that we've asked this developer to work with the Kearney Mesa Planning Group, and I and I believe there are people here from that planning group.
And one of the concerns we have in Kearny Mesa is that it needs a lot of attention and there are very few fonts of money that it that it qualifies for.
So the community has met with um with the group here to ask that they be their considerations come to the front of the table.
So we'll probably see a combination of needs both from the commercial and from the residential that will come forward.
They they don't qualify for um C D BG dollars, a lot of that area, they don't qualify for the I I strongly support this kind of thing.
I I think that the local residents and business owners are probably the best to say who you know where these amenities should go and what they should be.
No, actually that that's how the development agreement originally was negotiated, that if we didn't need that money for I-15, we would have lost that money.
What happened in in some later negotiations was if if we're able to find the $250,000 for I-15, that last $250,000 through some other source, or if it's determined that that auxiliary lane is not needed, we will not lose that money.
That money will then be split between the Sarah Mesa Library and the Kearney Mesa Enhancement Fund.
So they're committed to the 250s.
Exactly.
Regardless of the ultimate disposition of it.
Then uh on the Sycamore Canyon side again, is is this um you know uh uh what?
Is it mitigation?
Is it uh you know, open space funding?
What what what's what what is going on here?
When we go into quite it, there was another page that I think talked about some um financing.
Could we look at that again?
Yeah.
The reason that this property came into the negotiations on the development agreement, when we enter negotiations on a development agreement, we try and find something that would be of high benefit to the city of San Diego and low cost to the developer.
In this case, because they own that property, they certainly have value associated with this property, but it's it's um it it has a a tremendous benefit to us because it it enhances the the value of the MSCP preserve and it brings us further towards the MSCP preserve goals.
Because they already own this property and they have some existing uses out there and it was already out uh identified within the MSCP preserve that it would be at some point in time subject to some future negotiations included in the preserve.
We thought that it would be of great value to include this in the extraordinary benefits.
The smaller portion of the property.
The smaller portion of the property in the and Tom Story can answer some more of the details, had 25 percent potential development rights, so there was uh possibility that that property could be impacted at some future date in time.
What we did was we have ensured that the smaller portion of the property, which we'll get to in just one second, is now permanently in pres uh being preserved.
The 1100 acres did not have development potential except for the existing uses, but it did have mitigation credit potential.
Again, that had not been identified as to whether it was going to be one mitigation credit or all 1,100 acres.
What we've done through the conservation agreement, which is attached to the development agreement, is ensured the permanent preservation of the property.
So the value to the City of San Diego is that we know at this time, as opposed to in some point in the future that it will be permanently preserved.
The issue who was ownership will that 1,100 acres be in.
Currently, it will stay in the ownership of General Dynamics or successors and interests.
At the time that the mitigation credits are sold, we will we will be negotiating a conservation bank agreement or mitigation bank agreement pursuant to the terms of this conservation agreement.
And in that agreement, we'll come back and present to the council the particular terms about any mitigation bank that's that's established here.
So they'll the owners will do the maintenance or if anything comes up on the interim for the period of time uh that will be the uh owner's responsibility.
Until such time as the mitigation was went out to some other owner, right?
That's correct.
Okay.
Okay, if there are no other questions of the council of the staff follow-up on that.
The ownership remains with uh general dynamics for the current period on both parcels?
No.
Just on the smaller parcel?
The the large the smaller parcel, the 248-acre parcel, will be dedicated to the city.
Right.
And that's so it's the larger parcel of the larger parcel.
Potential bank of mitigation credits.
That's the one that potentially could come back into city ownership, but in the interim, it remains with General Dynamics.
That's correct, yeah.
Thank you.
Thank you.
Let's go to the speakers.
Um, in favor, we'll start with um we have Steve Armor, Gordon Carrier.
Followed by Glenn Bess and Ed Bacani.
Uh thank you, Deputy Mayor Warden, uh, members of the council, good morning.
My name is Steve Imer.
My address is 8787 Complex Drive in San Diego.
Um presentation, the organized portion of it, will take a maximum of about 12 minutes.
I will cut that as brief as we can in the interest of time.
We appreciate being moved up on the agenda.
Thank you.
I am very pleased to be able to bring before you today our plans for the redevelopment of General Dynamics property in Kearney Mesa.
As you know, this 244-acre site, located in the geographic heart of San Diego region, was once an important hub for aerospace research and manufacturing.
The night the nationwide changes that shook that industry to its foundations in the early 1990s, forced us to look to the future, not to the past for a r for a new formula for redeveloping this site so that it could once again become a productive part of the socioeconomic fabric of Kearney Mesa and San Diego's future.
Our first and ultimately most important step was to enter into a cooperative planning and public review process with you.
Through adhering to the process outlined in a memorandum of understanding approved by you in July of 1995, we bring this proposed project forward today for your consideration with virtually unanimous support.
During the past two years since that MOU was approved, we have been very busy indeed.
We have actively participated in over 50 community group meetings, which have focused on virtually every aspect of the plan and program.
On a regular basis, we have conducted dozens of outreach uh sessions with other members of the Kearney Mesa community as well as surrounding communities, uh, including uh surrounding property owners, small business owners, and interested individuals.
Also, we have been engaged in a constant dialogue with city staff in defining issues and refining our plans.
Um finally, we participated in three planning commission workshops on the project plus the final hearing.
The primary results of this uh very innovative public private process are twofold.
First, the plan and program have been improved, uh and the redevelopment scheme we believe will work better.
Secondly, this cooperative joint process, although frustrating at times, has allowed us to bring this project forward to you with nearly universal support.
The Kearney Mesa Planning Group strongly endorsed the project on a 10 to 2 vote.
The city manager's strong recommendation for approval is before you, and the Planning Commission unanimously recommends approval of the project.
In addition to carefully following a public-private planning process, we have also retained or remained true to the redevelopment objectives established jointly with you at the outset of this process.
Primary among those objectives were one, the recreation of high paying quality jobs at the site, and two, the regeneration of tax revenues to the City of San Diego.
As you know, no one currently works at the site where demolition of the old and outmoded structures is all but complete.
Current annual tax revenue to the City of San Diego is approximately 100,000.
However, on the new job front, I would like to summarize what New Century Center will achieve.
Obviously, during construction there will be many jobs created over the 8 to 12 year period of project development.
With regard to permanent jobs, with the build out of New Century Center, there will be approximately 12,000 employees working on site.
Because the majority of the square footage of the project will be targeted for use by high technology companies, we would expect that the jobs will be relatively high paying and focused on the growth industries in the city's future.
In addition, our analysts estimate that the activity on site at New Century Center will create opportunities for approximately 7,000 additional jobs in the surrounding area.
Very importantly, on the tax revenue front, it is estimated that New Century Center will generate in annual tax revenue to the city approximately 4.2 million dollars against 100,000 today.
This revenue, estimated in 1997 dollars, will come from a combination of property tax, sales tax, and transient occupy taxes.
I think it is very important to highlight that these jobs and tax benefits will accrue without the need for investing any public monies on this project.
The plan and program for the project have been very carefully structured so that its implementation in contrast to many other defense conversion projects can be done and will be done with private funding only.
In addition, the staff has, I think, carefully outlined to you the many significant benefits which will accrue to the city due to uh our entering into a development agreement with you.
Uh we are prepared to uh I've asked Gordon Carrier, our planner and architect, to be able to walk you through some of the highlights of the plan and program.
His presentation will take about eight to ten minutes.
Um however, in the interest of time and and uh the public here for the next item, I would uh uh abide by your wishes as to whether or not you would like that presentation.
Can you shorten it, Gordon, please?
Thank you.
Deputy Mayor Orton, Council members, uh it's a pleasure to be here.
My name is Gordon Carrier, I'm a principal of Carrier Johnson Wu architects and planners here in in San Diego.
Um I will be brief.
Um I want to talk a little bit about the issues of opportunity that this this site creates.
Uh, primarily uh the site is one that I think uh allows us to view a catalytic development of the Kearney Mesa area, which uh clearly is something that we collectively know uh is a is a positive thing for that community, and certainly we have heard that from the community group as well.
It's also aimed at the future workplace need, which I think is even more inherent in the in the planning that we're looking at.
Um as a catalyst can allow us uh the first real defense or the first opportunity to convert a defense site without use of public subsidy in any way.
So it's a very positive uh uh opportunity uh from that perspective.
What I wanted to do in brevity was take you through just some of the highlights of it.
Um of the things that we've experienced in our practice working with a variety of Fortune 500 companies is there is a very tangible change in the way companies are viewing their business climate.
Uh that is to say that uh they're looking for new destination facilities.
They're looking for co-location of different elements of their facility on one site.
Uh very difficult to do in many of the areas we have unless you have a mixed-use setting on which to draw.
So this site has some unique qualities in that regard, and in fact is the most unique property and most perhaps most unique opportunity we have is a San Diego uh environment to provide those kinds of uses for future technology users.
I want to start with market square, which is uh on the slide here before us.
Market square uh we've we've captured with the term the heart, and one of the reasons for that is it happens to be in the center of the site.
But more importantly, it's really the pulse of the site, it's the catalytic area where all the other uses come together.
It's where the differing parts of all the plan uh unite at any given part.
It's exterior in nature, it's a gathering place.
More importantly, it's a place of memory.
It's something that is memorable to you when you are there and something memorable to the community as a as a contribution.
It really combines the the issues of urban edge, which is here with open space, and you can see how uh in that slide that uh uh that can be achieved.
Next slide, please.
The next area is the entertainment venue, and this is uh captured by the term a destination because that's what it is.
It's something that will attract people both inward and outward from the site.
It's an extended hour venue, it's a it's a uh business and social serving venue, it's high energy in its nature.
Uh and it's also a marquee for the community.
It's something the community can look to, recognize, and know as a place of their own.
Excellent.
Excuse me.
Likewise, uh the the well, likewise the project is is filled with other uh elements such as community edge, the the idea of creating an edge for the community that is a symbol to the community, uh, an interface of the landscaping elements with adjacent properties that allows you to continue the idea of edge to the properties on either side of this particular area while creating an entry uh feature for the property and project uh as a whole.
Next slide, please.
Advanced technology, we call this the environment, because after all, this project is all about creating an environment for business, is creating a place for future business to house themselves.
In that in that uh context, what we're trying to do through this plan is create a simple, consistent site sequence.
Uh that is to say that each individual firm can have an individual identity, but more importantly, they have the ability to fit within the whole of a complex that has amenity services adjacent to it.
The co-location of corporate requirements can occur here, such as headquarters, uh the accessibility for shipping, communications, parking, all the needs that a given community has, as well as the amenity enhancements, which are required of a community to know that their workforce has a place to go at lunch for simple things like that, or a place to get the things they can't get done uh in the course of the day.
It has a headquarters facility capable environment, and I think that's probably the chief uh the chief issue uh related to this proper this particular property, please.
Next slide, please.
But there is probably a more significant part to this whole project that that I want to allude to, and that has it it's a little bit about a simple irony.
You know, we we're living in a in a community now where the computer chip has made things faster, uh the speed of productivity is faster, efficiencies are greater, we're feeling more pressure than we've ever felt before.
We're now using work shifts, uh which is an old uh idea in lieu of uh additional space in many cases, so that we are multiplying the use of a particular property.
There's been a shift in the workplace attitude.
Uh we're now dealing with global time, not national time.
We're no longer San Diego, we're the world.
And it's uh if it's 11 o'clock here, it's two AM in Seoul Korea tomorrow, which means they still may be our competitor, but nonetheless, we're on a worldwide clock.
We need to appreciate that our businesses uh have to work in that sort of area.
But the real irony is that I'm sorry.
I say actually, Mr.
Carey, it's the time is one minute till you are finished.
Okay, that's good.
That's great.
The irony is one minute till I'm finished, okay.
Uh uh the the the biggest issue there is And that's local time.
That's right.
That's right.
That's a um here.
Shoot, I knew that.
Um there's really been no apparent reduction in our work day.
And this property then allows us one very unique opportunity.
We have one owner, we have 243 acres under one ownership that has the opportunity to be planned as a community serving all the amenity needs, both of the workplace and the off-hour need of the environment that it that it's housed within it.
It's simple, uh, it's a comprehensive plan, but it's interactive and can plug can create a place for our future workforce here in San Diego we can all be proud of, and we will certainly set a new trend for the business working environment.
Thank you, Mr.
Carrier.
Our red lights aren't working, so actually we do need to um do you have a final comment, Mr.
Eimer?
But just that.
Our entire team is here and would be happy to be able to do that.
I notice the entire front row is filled with suits.
So exactly right.
I thought we would go we'll finish the speakers.
I would like to hear from Glenn Best from the Kearney Mesa Planning Group, if we may, and also Ed Picani from the Asian Business Association, and then we have a speaker in opposition, and then we'll go to council and they will ask questions of you who are all sitting in the front.
Good morning, Deputy Mayor Barbara Warden and City Council.
My name is Glenn Best.
I work at Nutrasweek Kelko at 8355, Arrow Drive in Kearney Mesa.
I am the chair of the Kearney Mesa Community Planning Group, and I am speaking on behalf of the planning group this morning.
As Mike said, we have been working on this project since mid-1995.
When that project first came before us, there were parts to it that we liked very much, and there were parts that concerned us.
But we worked with the applicant for two and a half years, and yes, Steve, it was frustrating at times.
Two meetings twice a month.
The applicant, as a result of that discussion, has significantly changed the project.
But we also significantly changed our opinion on the project.
As detailed in my two letters to you, we are now supporting the project.
There are some features about the project we particularly like, and that is the 12,000 jobs that it will bring to our community, particularly the 9,000 high-tech, high-paying jobs, because those type of jobs are what support Kearney Mesa.
And we have been too long without those kind of jobs in this parcel of land.
Number two, we have always been particularly supportive of the entertainment portion of this project.
Too many of our businesses are telling us that at 5 o'clock on a work day, you can roll up the sidewalks in Kearney Mesa because everybody's gone home.
And we hope that this will keep people in Kearney Mesa and rejuvenate our present community.
However, from the very beginning, we have had concern about the amount of retail.
There was a large amount of retail initially proposed.
The applicant heard our concern and has made significant reductions in the amount of retail.
Because we understand that this entertainment retail center needs a certain amount of critical mass to function.
So we hope that this center will at worst have just a negative or uh no effect on our retail.
Or at best, it might enhance the retail that we currently have.
Mr.
Best, thank you.
Your your the lights are off, but your time is a very important thing.
I'm sorry.
Thank you for coming.
Thank you.
Uh Ed, are you here?
May I ask Mr.
Best a question?
Sure.
Mr.
Best, I um just uh on uh on the uh amount of retail.
I'm a little more concerned on the amount of industrial.
Did the planning group uh have any response on that?
We never had any concerns about the amount of industrial.
So you're satisfied with the way it's there were only concerns that we were giving up some of that industrial for retail.
I see, but but the way it is configured now is what you're supporting.
Right.
You are supporting it.
Okay.
Mr.
Owens has a question.
I just wanted to ask about your concerns about traffic.
My concerns about traffic are very simple.
Um I don't think the planning group ever really understood the traffic studies.
Um I myself got a degree in chemistry, and I to get that degree I had to master quantum mechanics.
Quantum mechanics was simple compared to mastering a traffic study.
I I do I do read a letter from Caltrans that says we will have a four-mile-long queue at one of the on-ramps from this project.
That concerns me.
But the applicant says that's not going to happen.
City staff says that's not going to happen.
My message to you, the city is to make sure that their traffic effects are mitigated.
Would uh would staff please comment on that the discrepancy between what Caltrans is saying and what what we're saying?
Because I I'm uh very concerned about the traffic impact here.
Caltrans in a comment back on the environment environmental impact report had reversed a position that it had taken previously regarding ramp metering rates.
As a result of that, they began to um show an unrealistic queuing.
Um, and what staff did as a result of that in with the final environmental document was to put some additional conditions on in a in particular the ramp at uh just at the south end of the property to include a provision that if we begin having um long queue rates that they would include uh provision for HOV bypass lanes onto the freeway.
Okay.
Is that help a bit?
Well, like I said, traffic is very difficult to understand.
The truth will be when the project is is filled up with people, and then we'll see what happens.
If they all stay over to watch a movie after work, that's uh that's the key because then they stay out of that uh queue.
Right.
But actually the movies created uh, you know, the 20 in Mission Valley, when that lets out, uh, or when when it's you know, they they do stagger them, but you know, seven seven o'clock on a Friday night, the traffic coming east on eight to exit at that ramp is so busy you can't get into the freeway anymore, you know.
Yeah.
So the movies don't really relieve it.
I think they just create uh uh uh traffic jams at different times.
I don't know, you're the traffic engineer.
Well, to a certain that that's true that that you'll see some cueing going on as as entertainment facilities are letting out, but to some extent it does help spread that cue, so it doesn't all hit at one time.
What ramp is at the south end of the property?
I don't know.
I'm looking at the map here.
I don't know.
I believe it's the Kearney via ramp.
Uh-huh.
It's a 163.
Um Mr.
Rakani, Ed uh, thank you, Mr.
Best.
I think those are the questions at the moment.
Um Mr.
Bacani.
Good morning.
Um Ed Bacani, I'm uh CPA, and I'm uh C C D C board member, and I represent the Asian um business association.
I personally, and on behalf of um the ABA uh enthusiastically endorsed this uh project.
On a general overview, I I agree with the mayor that it will strengthen the economic base of the community without much financial negative impact.
In particular, uh the Carne Mesa community would welcome this to replenish some of those lost uh high-paying middle income jobs that were the victims of the um uh decrease in um defense contracting.
Um coming from a financial and uh redevelopment uh background, the four million dollars revenue uh is very uh fascinating in the sense that uh not only can be a current source of uh uh funding, but uh uh some part of it could be used for uh uh bundable development projects.
The potential retail impact is very real, as you probably very well know in that community.
The um Asians have a lot of food stores and restaurants, which would complement the um the entire uh economic base.
I thank you for your situation.
Thank you, Ed.
We have a speaker in opposition, uh Michael Conga.
Mayor Warden, my name is Mark Greedy.
I had turned in a slip in favor of the.
Oh, I'm sorry, sir.
I do not need to speak.
I'm sorry.
We have Carlos, I thought you didn't need to speak.
Mark Reedy, Carlos Citi, and Walter Conwell.
Do any of those gentlemen would you like to speak, sir?
Go ahead.
Thank you.
Sorry for the intrusion.
Uh Deputy Mayor Warden and members of the City Council, I'm Mark Reedy.
I'm the Ernest Hahn professor of real estate finance of the University of San Diego, and I'm here today to support the approval of New Century Center.
The planned redevelopment of the General Dynamics site scores a bullseye in addressing San Diego's economic development needs as the first great city of the 21st century.
Most of our city's old engines of economic growth have blown down.
The new engines that will drive economic growth well into the 21st century, non-defense high technology, telecommunications, biomed, tourism, international trade, and business and professional services truly are revving up.
At the same time, new business and corporations have been in the three to four thousand range in San Diego in recent years.
These newly incorporated businesses add to the 50,000 small businesses already in existence.
They add depth and resilience for economic base and improve greatly San Diego's ability to withstand exogenous economic shocks, such as a national economic recession.
Moreover, when employers from elsewhere in the state, in the nation, and from other countries are considering their relocation options, they tend to prefer to move to areas where they feel at home among similar sizes and types of corporations.
New Century Center offers such a home.
New Century Center includes a core of approximately two to two and a half million square feet of space for research and development, light manufacturing and business and professional services.
All of these are synchronous with the city's new engines of economic growth, as outlined in your economic development strategy statement, charting a new course for the 21st century.
Further, New Century Center appeals directly to the mid-size and smaller businesses that are the future backbone of the San Diego regional economy.
In this vein, the redevelopment of the General Dynamics site also is in sync with one of the major themes of the Mayor's Renaissance Commission, stronger support for the city's small businesses.
San Diego faces intense competition from other major American and foreign cities in attracting and retaining the types of high-tech, knowledge-based high-wage jobs and businesses that comprise the core of New Century Center.
These jobs and businesses need to be nurtured and supported to assure that they come here in the first place, that they flourish, and that they find an economically viable to stay here once they arrive and or grow.
In my judgment, New Century Center demonstrates exceptional foresight in terms of its layout and development plan.
It greatly strengthens San Diego's ability to attract and retain the desirable types of jobs and businesses that have been identified both in the report of the Renaissance Commission and in your recently published economic development strategy.
Thank you, Mr.
And I also support and applaud.
Thank you very much.
Thank you very much, Mr.
Reedy.
There was one right in an opposition's map and Michael Conger.
Thank you, Mayor Golding.
My name is Michael Conger.
I'm at 1450 Front Street here in San Diego.
The primary objective of why I came this morning was to ask that there be a continuance of the approval of this until the next council meeting, in order that I can have enough time to bring to you uh clients that I represent, Ryan Monahan and I represent in a case against General Dynamics.
These are longtime former employees of the company, and there are hundreds of others like them in this town that have been betrayed by this company before.
And I realize that we're up for a plan of somebody wanting to develop property, but the key issue, Mayor, is that this is a company that in San Diego has repeatedly, repeatedly broken promises in this decade to people that were loyal to it, people that supported it, people that gave their lives for it, and they're coming to this uh council asking that you again take its word on things.
I've heard things like we hope that they'll do this, and we hope that they'll do that.
I can tell you that from experience, I've been in litigation with this company for five years in many cases, that when you hope you're you're the hopes are not going to come true.
My primary objective is to ask you to continue this.
Uh Brian Monahan sent a letter to all the council members last week, November 13th, and we were advised yesterday that this was coming up today.
And I apologize for that.
That's that's our fault for not knowing that.
Sir, I I just have to make comment here.
We've been talking about, we've been in working with it on this for over two years.
It's had total coverage in the local newspapers as to what the plans were.
It's been really no surprise.
Um, Councilman, it is in Councilman Stalling's district, but she and I have worked on it together because we do share Kearney Mason.
I don't believe I've ever heard from you until this letter today.
I take exception.
You are asking for an continuance today.
I think the time, I mean, I think there has plenty of time been plenty of time for you to come forward on this.
Deputy Mayor, I do apologize for that, but I think the greater issue and the more thing that's more important is that a correct decision is made.
You are about to enter into a 15-year agreement with the company that I have been proven to have defrauded.
My question is where have you been for two years?
I've been working against general dynamics in court, is where I've been.
And we have been working here with them on this plan for two years.
I I wonder why we haven't seen you before.
That that's my thought, and I take full responsibility for that.
Okay.
And I don't have an excuse, and I'm not going to try to explain it other than to say I think the more important thing is as I stand here, I can tell you for a fact that in the history of the city of San Diego, County of San Diego, the largest punitive damage is burning.
My question only was trying to defer to try his case here in this dais, and I think that's a matter for the court.
And I think that's a matter for the court.
I don't know why you didn't come forward at the beginning of this meeting.
And ask for a continuance if that's uh that's your intention, because that's that's the process here.
I understood that to be for consent.
Perhaps I misunderstood of consent matters as opposed to matters that weren't consented to.
And I'm not trying to try my case.
What I'm trying to do is to point out to the council that the applicant that the project may be a wonderful project, but the applicant who is standing behind the commitments is an applicant who has lied to the people in this town, have lied to voters, have lied to constituents.
I think that's a matter before the court myself, not for a judge.
I I um I uh also take exception that it coming at this particular point in time after all the work that we've done.
Um it is your responsibility, and you blew it.
And I'm sorry I can't support a continuance as much as I respect um Mr.
Monahan.
All right.
Th thank you, sir.
Um I think uh my my assumption is that the reason you're you're doing this and bringing this our attention is that you're concerned that we regard any agreement that we make with General Dynamics carefully and that we make sure that we are not depending on uh other on things other than a contractual agreement to support whatever their agreements are.
That's and that's your purpose of coming forward today.
And and without question, I'm very biased, but there's a reason for that.
Okay.
And I just caution the council to please make sure that the commitments are ironclad.
Right.
I appreciate that, sir.
Um that is that is the last speaker.
Um I don't think that uh obviously this council is not a party to that lawsuit, but I think the we do we have had we've had other experiences with development agreements in the past that had nothing to do with general dynamics where we have had problems.
Um we do we should make sure that this agreement, which appears to me to be a good agreement and a good land use plan for the area, and I think it's been worked on very carefully with uh concerns of council members and the mayor being taken into account as to how this piece of property should develop.
Um they do have a right to reasonable development of their property, but um they have been very cooperative with this council.
But I would like staff response to uh the concern that is raised.
What what it what is what is clearly part of the contractual agreement and what is it that you are hoping and what is the difference between the two.
The we are very confident that through the development agreement as well as all the discretionary approvals that m are being brought forth to the City Council today, that we have the ability, if we find that General Dynamics Properties Incorporated is in breach of any of these documents, that we have the ability to come before the council again and identify any corrective measures that are necessary.
The the main hammer is the development agreement, and we're very confident that we have assurances, contractual assurances through the development agreement that that ensure that these obligations will be fulfilled.
And the council still retains permit uh authority, and that is where we are able to make sure that agreements are are met, because permits don't have to be issued unless the agreements are met.
And so I think that we have an ability to make sure that this land use plan, which I think is a good land use plan, um, is maintained and that it proceeds in the desired manner.
Um any further comment or are these on this, Ms.
McCarty?
Go ahead.
Thank you very much.
Uh when it comes time for a motion, I'll defer to the council member for the district.
I just wanted to comment on the discussion we had on Mission Trails Regional Park.
Uh, the goal, since this was uh on the eastern, far eastern edge of the city, is to expand the boundaries of the park, and this takes us a very long way.
Uh it we hope uh someday that Barbara and I can each on the other end from our homes get on a horse and meet each other halfway.
Uh uh.
That is the goal to to expand the open space uh not just through MSCP but through the uh Mission Trails Regional Park.
And of course, uh as this city becomes more urbanized, to have these chances for the public to enter a park and to have recreational um opportunities is just extremely important, I think, to the quality of life of each of us.
So for recreation, I think this is uh very important.
I'd like to thank General Dynamics uh for that.
Um also for the um help along the I-15, uh that auxiliary lane.
I know uh from speaking to Caltrans people over the weekend that they are working on some design to try to figure out that problem uh between Arrow Drive and I-8.
Uh it's a horrible problem.
And so we appreciate the help along there.
Beyond that, I want to comment that uh I do appreciate the willingness of General Dynamics finally to work with the community to come up with a program that we can accept.
I've been a no vote for a long time.
Uh and when we finally came down to the last draw, I'm just very pleased to see that you have put forward a program with industrial use, which we wanted, and uh and the entertainment and the retail of course Missile Park.
So um when the motion is made, I will be very happy to support it and thank you very much for all of your efforts.
Thank thank you, Miss McCarty.
Ms.
Warden followed by Miss Kehart.
I'd like if I might defer my uh let Ms.
Dolans go ahead of me, she has a motion.
They wiped out the lights, but I was up there before to speak now.
So I appreciate it.
Um I want to take who is they Mr.
Clerk.
Okay.
We'll put it's not the anonymous say the ubiquitous.
Um I would like to take this opportunity um to uh thank General Dynamics and the people that we've been working with.
Um originally I would have never thought we'd gotten to this day.
From the first day they walked in my office, we have come a long way.
This was a group of people who um hadn't really known how important it was to work with the community.
And we stressed that without that it wasn't gonna happen.
The project was not gonna happen.
And um and admittedly, kicking and screaming, they went to their first meeting, scared to death of what the community was going to do to them.
And in fact, it came to be a very positive uh uh meeting, and they came away with a whole different idea, and from that point to this have worked ever more forward with the community, with the needs uh uh from for all of all of us uh in San Diego to make this be a really wonderful project.
I have had concerns, as they know, regarding the rezoning of uh industrial land to retail entertainment, and with the many meetings we've had with General Dynamics, they've agreed to a number of revisions, and I think those it would be uh reasonable to mention some of those so that people understand kind of where they've come uh where they've come to.
And in addition, Missile Park is left as open space, and that was the first thing as everybody will remember.
Uh the the uh the assets in the main have been sold off by by the uh association, but the space is there open as Passive Park and it will be there and it's incorporated in the plan of development.
So I see that as our first real big success uh in working with General Dynamics.
I think they recognize that that was a very important piece for the community.
Um when compared with originally submitted project, General Dynamics uh has agreed to an approximately thirty percent reduction, thirty percent reduction in the total amount of retail and entertainment um and commercial uses.
That leaves that much more for developing of industrial uh kinds of uh uh um space which will bring in the kind of jobs, the salaries that we're looking for, and there are people out there looking, and I might say to General Dynamics at this point, I think it's very important that your marketing people work with the EDC and Julie Meyer Wright on uh going forward, because uh this is uh an incredibly uh under especially under the new leadership of um Ms.
Wright, uh incredibly dynamic, aggressive group looking for the kinds of of uh uh jobs and businesses to come to San Diego.
So I I urge you to work with them.
General Dynamics has decreased the total retail entertainment and commercial acreage from 120 acres to 85.
So that's that's great.
And the square footage from over two million to one pipe 1.4 million square feet.
Um now, if this master plan for New Century Center is followed and does all the thing it's planning to do, like Market Square, and when you look at the pictures, I think I'm gonna go out there with the pictures afterwards and say, does this look like what you showed me?
Or if you if you want to improve on it, fine.
Don't give me less.
I think the whole idea of it being a marketplace is very exciting, and it will give those people that are working there something uh something special.
I don't want what I don't want to see is um uh changes like we have from the plans that were in the 80s.
In the 80s, people are now came back then in the 90s say, oh, we can't do that, and everything gets changed.
This is the plan we've agreed to, and this is what I want to see going forward.
I think if anybody's been at the mall lately, as I have, as probably most of us, you realize that shopping centers are the town centers these days.
Like it or not, that's what's happening.
Uh uh and I was in uh Mission Valley on the weekend, and it's the place where people hang out and visit.
It's just incredible.
And I see that this is going to be creating a town center, probably for Kearney Mesa.
So I thank everybody involved.
I especially thank Flynn Best and the Kearney Mesa Community Planning Group and all the community people who have been involved in making this be a better project.
I appreciated their input.
And I make a motion that we uh uh accept the manager's recommendation, all the different sub-items with the uh changes that we have made even at the last minute.
And I understand, Marcella, there's an even more up-to-date, something that somehow we managed to get.
Yes, that's the nature of development agreements is extraordinary benefits sometimes start ballooning up at the end.
And one of the things I wanted to mention is um, as you know, for adopting a development agreement, you are required to obtain extraordinary benefits, or that's an option that the City of San Diego has.
And in addition to all of the extraordinary benefits that are enumerated in the development agreement that is before you today, the 40 percent revenue split, which was not originally listed as extraordinary benefit, which is happening um and and again this is a potential.
What has happened is uh uh result of some of the concerns that were just identified uh a few minutes ago is I'd like to amend the conservation agreement that is before you today.
And I during the second reading, I'll provide you an errata sheet to that.
But instead of a 40 percent potential revenue split, the City of San Diego will receive 50 percent of any potential mitigation credits that come out of the 1100 acres in Sycamore Canyon.
The the way that that 50 percent will be in exchange for that 50 percent, the City of San Diego agrees to do everything in negotiating good faith efforts and assist General Dynamics Properties Incorporated in any way possible with the resource agencies to maximize the number of mitigation credits that are available within those 1100 acres.
That 50 percent will be uh the proceeds of that 50 percent will go 40 percent into the Mission Trails Regional Park Foundation is identified in the conservation agreement, and 10 percent will go towards the Kearney Mesa Enhancement Fund, and it will be added to that trust fund that is set up if any money does come in from that.
Thank you.
And as you identified, there there are other significant extraordinary benefits which are not outlined, such as the preservation of missile park that are being insured through the development agreements.
And then Mr.
Westlake also wanted to mention there was a couple of modifications that we had made to the conditions.
Um I'll second the motion while we're in the middle of it.
There is uh what was an errata sheet that was handed out prior to the hearing that I think you all have in your hand.
There's just some very minor changes to the conditions in the PID and the repo permit and the PR and the PCD.
Um all of those affected have looked at the errata sheet and everyone is in agreement.
I just wanted to read that into the record.
Okay, thank you.
Ms.
Kehoe.
Me.
Oh.
I'm sorry.
Sorry about that.
I I thought your second.
Don't even give my time to Valerie.
Let her go ahead and I thought your second was your brief comment.
No, no, no.
I was hoping.
Go ahead, Ms.
Ward.
I could actually just ditto everything Ms.
Darling said, but I don't want to get let you get away with that short of uh talk.
Um actually it's in Valerie's district, as you know, and I know from the beginning I've been kind of a pain in the neck about this project, but I thought I should help Valerie with it.
Um I'm sure that in the beginning there were some concerns amongst the people in the front row.
But we have put together, I think, between the people in the front row and Glenn Best, who's here and his group of Kearney, uh Kearney Mesa planning group, um, uh really a package that I think looks um very good for the city, and I'm I'm very proud that we've come here today.
And I see Mr.
Carrier in the front row and and Gordon, I charge you with doing this project or your work on this is fine as the last one that I looked at with you.
Um so I will be there to help you with that too, you'll be glad to know.
But um I'm I'm very pleased to second the motion today.
I I do thank staff for all the work they've done on this, and I I'm and it's been a long, long process.
I didn't mean to be rude to the gentleman who came here, the attorney, but when you're when you're working over two years on a project and you start from ground zero and you get to the point of completion, it's very discouraging to have someone come forward and and ask that we we continue a project that we work so hard on.
So my thanks to those of you in the room who worked on it, the staff, uh the group in the front row, and and the community, I think that we as a city have benefited from what we will have here today, and we're looking forward to the project as it comes online.
Thank you, Ms.
Warden.
Ms.
Kehall.
Thank you, Your Honor.
Uh just a couple of questions for staff.
Um how much of the the uh proposed development is industrial versus commercial and retail.
There's essentially two separate sub-areas of uh commercial and industrial.
The western about 85 acres is retail, commercial, retail and entertainment commercial, and that will total about 1.4 million square feet.
And the eastern about 159 acres will retain its industrial designation, and when developed completely, it will be about three million square feet of industrial and manufacturing.
Okay.
Uh how were how was that divvied up?
How was it determined how much would be industrial and how much would be commercial?
If you look, it may be helpful to look at the manager's report, there's a map and a table that shows you how the different planning areas are designated on general dynamics.
I have that here, but I mean what what what are the determining factors?
Did you look at how much industrial land there is left in San Diego and you know what the vacancy rates are and things like that?
Well, actually, no, we looked at the uh the submittal that the applicant gave us and and distributed those plans throughout the city, had people comment on it, including the planning group, and uh we found out that the original plan actually had a lot more retail than we could support, and as indicated in the in the uh managers report, we have reduced that by about 30 percent.
And we think we're at a point right now where we have uh a pretty good combination, a good mix of retail versus industrial.
And we looked at several uh economic studies that were provided by the applicant that show that this development is uh pretty consistent with other developments in the nation that have a good mix of retail and industrial.
And then uh were you involved in uh the discussions with MTDB and the developer to see uh if uh our trolley right away was possible?
Yes, and I see your transit elements here, but what about a Charlie?
Yes, we work very closely with MTDB and uh they did look at a trolley line through General Dynamics, it actually actually went to the executive board, and I think uh final decision was that we wouldn't look at LRT through through the General Dynamics site at this time, but as you see, there is a transit center within the facility.
Right, but it does this does the transit center have the potential to be uh you know converted to light rail if that if there's enough demand or it's a bus transit center now, right?
Yes, it is the public here.
Does it connect?
No, in fact, it would not.
Um what it would provide is the opportunity to make the transfer to a nearby LRT station.
Okay.
Uh maybe I could ask Steve a couple of questions, if that's okay.
Uh in in your design uh for the resident or the commercial and industrial split, is there any flexibility there?
I mean, if the market suddenly skyrockets uh for industrial demand, uh would you uh you know can you convert buildings or whatever?
Umcrease the industrial.
I think the short answer is yes.
But uh just to put a little footnote on it, um the nature of the industrial space, uh, as Gordon I think alluded in his presentation is changing dramatically.
And so what today you might sort of call office really may be an industrial kind of use because it's high-tech oriented.
And I believe that uh particularly your new zoning code update provides uh a lot a lot more forward-looking view that office space in general can, in fact, accommodate industrial uses.
So there is a potential that a significant portion of the commercial space, if the market drives us that way, could go in that direction.
And then when will the funding for uh community benefits be available?
Funding for community benefits within the terms of the development agreement.
Okay.
Um Marcella correct me if I'm wrong, but I I think that the uh per 50 percent, my recollection, 50 percent of the funding for the library and the Kearney Mason Enhancement Fund are uh to be funded with the first building permit to uh for the project, correct?
Um actually, sorry.
Uh oh my memory is fading.
Fifty percent of the library money comes within thirty days of approval of this project.
Is that that's today's action?
Uh it would be the second reading and then any uh paperwork and appeal periods afterwards, and then the library money, the second 50 percent has an option of either coming upon issuance of the first building permit, as Mr.
Imer described, or if it's the last 250,000 dollars for the library, so if we're able to pool the rest of the money for the library sooner than that first building permit, then we have essentially what's what would be the equivalent of a call option on that money, and we can draw down on that money sooner.
For the Kearney Mesa enhancement fund, the first half comes upon issuance of the first building permit for any portion of the project, and the second portion comes upon issuance of the first building permit for what is called the the redevelopment increment once you pass that.
Okay.
Um then uh you know, it's uh I'm glad to see that there's some flexibility.
Uh I I wish that there had been uh uh I can see you not wanting to overbuild when you're embarking on uh you know uh a development of this size, but when we've just gone through the retrofits at Fashion Valley and Mission Valley, it makes me wonder uh how uh how long it will be before something like this needs parking structures or whatever second stories or more density or whatever we need to do to accommodate a a large market.
Um but uh you know I can see what's before us now.
I think uh as it's true that what the other council members have said, you've come a long way.
Um I I I still think there's some things that uh the project would have benefited to have done differently, but it's um it's uh it's gonna be a huge addition to that community, and I think uh it'll change the face of that uh of Kearney Mesa entirely.
And one final question is have you signed IKEA on the dotted line yet?
So have we signed what on the dotted line?
IKEA, the furniture store.
Oh no, no, we haven't.
Uh no, we haven't?
No.
I keep hearing that you're you're working on it.
So I know if I am hearing it, everybody else must be hearing it too.
Active conversation out there.
Okay.
Well, I hope you do.
Great.
That's a good one.
Anything else?
No, that's it.
Thank you.
I believe I am next, Madame Mayor.
Yes, you are.
Thank you.
I'm happy that something is going to happen to the big hole that we have up there.
To be honest with you, driving up 163 and looking over at the demolishing of the buildings there.
It's it is sad to see how many jobs uh used to be there and have been erased.
I think many of us uh feel that way.
Obviously, it has been a staple in the in this city for a long time.
And I am just happy that we're going to be able to replace them with uh some high paying jobs.
I hope that all 12,000 of them do materialize.
I hope that we're also able to attract those high-tech companies now that are looking elsewhere outside of the city and outside of our region.
I think that this center can be attractive enough if done well that you can, in fact, uh keep many of our industries that are blossoming and doing well and and replace the jobs that we have lost.
So I hope that in fact uh you are able to do that.
Um I'm tempted to ask about uh Professor Reedy about the exogenous economic shots, but I'll keep it clean.
But I but I'm sure what he meant was that those larger economic impacts beyond our area here, and and obviously they have been of great concern, and they we have in San Diego lived and died by them.
But I think that this diversification is smaller in us, if you will, will probably go on a long a long way in insulating us from those shots.
And again, I I hope that you do do well.
I think it's uh incumbent upon you to try to do a good job there.
You've earned a lot of money in the past from this site.
You have employed a lot of people, and I think that this site can be a great job generator.
They can employ a lot of our uh people that uh need work and want to have better futures, and I think it's incumbent upon you to do a good job, and I I hope you do.
Thank you, Madam Mayor.
Very quickly, Your Honor.
Thank thank you, Mr.
Vargas and Mr.
Stevens.
Yes, very quickly.
I am very impressed, especially about the 12,000 job possibility.
And I hope that does come through.
I think it's a creative project and it is very innovative, and I wish you all the success with the development of it.
Thank you.
Thank thank you, Mr.
Stevens.
Uh I think most comments on this project have been made already.
Uh when it started a couple of years ago, I had real concerns about what the final outcome would be because it was at that time very heavy on retail.
I think everyone has done an excellent job of crafting uh a project that's really going to be good for the area and be exciting for people.
And is the center, geographic center of the county.
And I think what is going to happen here is going to add some amenities to this particular area, both it the business community, but also the residential areas around it, which they badly need without having to travel great distances.
The fact that the market square concept is there is important because if we've learned nothing else over the last decade of land use policy, it's that you really want people to be able to come somewhere and walk and not have to use a car to go to each separate site.
And this kind of a of a concept will allow that to happen and doing it by master plan as well.
It really achieves the city's policy goals that we set a long time ago.
If you remember in the council's adoption of the goals of the uh city of the future by promoting economic development, defense conversion, that's which this most assuredly is, and a home for growth cluster industries.
And because of the light industrial that's included, we will now have light industrial land uh that we desperately need, considering the growth in high tech and biomed in this community and others as well.
Uh I think we've already gone over what the benefits to the community are.
Obviously, those only come to pass if this moves forward under the present guidelines, but uh we as part of it in the retention of Missile Park, which I think is an important part of the history of the city.
And I know it's always difficult not you know to give up land or or property when you would like to develop it, but that is so intertwined with the history of the city and and the economy of this region for so many years.
I'm very pleased there was an agreement to do that, and that the people who worked there for so many years, and even those who didn't, but who certainly are aware of it's con of of the contribution made by the employees and the company to the history of this country, really, in many respects, that we still have a chance to remember that and our children have a chance to remember it.
So I want to thank everybody, and if you'll cast your vote, uh we will move on.
Call the roll.
The motion passes unanimously.
Mayor Golding.
Mayor Goldie.
Oh, yes.
If I could for just a second.
It's you may have a second.
Please, thank you.
Um behalf of myself and and particularly Steve Hess, but also the rest of our entire team.
I would very much like to thank the council for their vote uh and their uh willingness to work with us long and hard.
And also uh thank uh on our behalf the staff uh from the city who has done a tremendous job in our yeoman service and working with us all these years.
Thanks for putting up with us so long.
And if I could just introduce uh Mr.
Jeff Cudlack very briefly, who is with General Dynamics.
Thank you, Honorable Mayor and members of the council.
I appreciate you moving our item up quickly today.
We have a very exciting group of national real estate officials making their way to the project this afternoon, and I think this is fabulous news for us to talk for the entire corporate real estate business of this United States about the action of the council today.
And on behalf of General Dynamics, we're very appreciative of the staff's effort, the council, the planning commission, and all the community, and we're looking forward to the implementation of this project.
Thank you again.
Best of luck, thank you.
Okay, we stand adjourned until two council meeting of Tuesday, November 18th, uh 1997.
We will go to the item still before us under discussion items.
And those relate to the municipal code amendments, really what it is the zoning code update.
And we we have not taken final action on it, was continued until today to work on uh to look at the transcript and work to work on uh certain problems that still exist.
So we have that, and I do recommend we take action today.
Um I think we can do that.
So I'd like to do that first.
Do you have uh comments?
Your Honor, if I might I hate to jump here.
Can I introduce my scouts first?
I have a uh we blow pack here, 1216 from Scripps Ranch, and one Girl Scout from Troop 8101.
So if you would stand up, please, so we can see you and welcome you to the City Hall.
They've had they've had their tour of the city.
They're from the Scripps Ranch area, and we're very pleased to have you here today.
They have been very well behaved and they are attentive to what we're doing today.
Thanks for coming down.
Thank you, Ms.
Ward.
I want to know how many of the scouts have a uh badge that relates to government or civic affairs.
Anybody?
Or is that what you are doing here today?
All right.
Okay, just checking.
Congratulations.
Okay, staff.
Thank you.
Thank you, and uh good afternoon.
We're here to continue the discussion on the zoning code update and hopefully uh get um introduction of the ordinance and the resolution revisions.
Um at last week's meeting on October 28th, we were directed to prepare a written response to public testimony from that meeting, which we've done, and uh that's dated October 29th.
We are also directed to prepare revised ordinances and resolutions uh reflecting what we understood the council's motion to be, and that's in managers report number P97-180, which will be the report that um some of my comments will refer to.
In that uh report, we made modifications to uh the following issues grounds for appeal, uh the definition of sensitive biological resources, uh dealing with employee housing and agricultural zones, applicability of the environmentally sensitive lands regulations and making some clarifications.
We also made some modifications to the companion unit regulations, and um we also added a clarification uh to that ordinance that's before you today to identify that um companion units uh the regulations that we added back in to were to deal with the RS zones.
We dealt with bed and breakfast facilities, veterinary clinics, and animal hospitals, um, again dealing with where those uses uh were allowed.
Uh dealing with mining and extractive industries, heavy manufacturing parking.
Uh we modified the purpose and intent for environmentally sensitive lands regulations.
We clarified the single room occupancy hotel regulations.
We uh changed the categorical exclusion resolution to reflect the council direction or um motion.
And the last two items, the wetland use restrictions and the biology guidelines uh were modified uh to what we believe were consistent with the motion made by council.
However, I know that we've been informed that there have been some uh questions about that that particular area.
So I have prepared and distributed for you and also provided at the back table two motions, motion A and motion B.
And just to introduce them, motion A, I will say reflects what we thought um the motion by council was.
It is what's reflected in the report, the manager's report that's before you, and what that basically did is change some of our regulations for resources back to the way they are currently regulated under our existing municipal code.
Wetlands motion B, and I'll get into the detail of both of those.
Wetland Motion B retained what the manager had originally proposed as part of um the original code that came forward to you at that last meeting.
So to go into wetlands motion A, just in a little bit more detail, um the the change as we understood it was to approve the biology guidelines that include the following changes that we modify the mitigation ratio for coastal wetlands to be two to one and and um and change that to four to one as shown on the attachment.
That the mitigation ratios for riparian scrub and freshwater marsh were changed from two to one to three to one as shown on attachment eighteen, and that the wetland mitigation methods were changed to require creation or restoration mitigation at a one-to-one ratio before enhancement or acquisition could be used.
Again, dealing with the discussion that you had of no net loss.
We also uh modified the language that the wetland mitigation required through a federal or state permit will supersede mitigation identified in a local CEQA document, and that language was deleted in this under this motion.
Moving on to item number two.
Uh the first series of items dealt with the guidelines.
Item number two is actually an amendment to the ordinance where we added uses, uh added limits to uses and activities permitted in wetlands to those that are identified in the attachment, to aquaculture or similar resource-dependent uses, to wetland restoration projects, and to incidental public uh service projects.
And the description of those uses are on that attachment.
13, 14, and 15.
And then the last part of the motion as we understood it was to direct the manager to refer the changes that the manager had originally proposed back to the wetlands.
San Diego City Council Meeting - April 8, 2026: Approval of New Century Center Project and Zoning Code Update
The San Diego City Council met on April 8, 2026, to consider and approve the New Century Center redevelopment of the former General Dynamics site in Kearney Mesa, and to continue discussion on the zoning code update. After a staff report, public testimony, and council deliberation, the council voted unanimously to approve the project, including a development agreement with extraordinary benefits. The meeting also included a preliminary discussion on proposed amendments to the zoning code, which was continued from a previous session.
Public Comments & Testimony
- Steve Eimer (project sponsor, 8787 Complex Drive, San Diego): Spoke in favor, highlighting the project's 12,000 permanent jobs, $4.2 million in annual tax revenue, and private funding. He noted the cooperative planning process with over 50 community meetings and unanimous support from the Kearney Mesa Planning Group (10-2 vote) and Planning Commission (unanimous).
- Gordon Carrier (architect, Carrier Johnson Wu): Presented design highlights, describing the market square, entertainment venue, and advanced technology campus as a catalyst for Kearney Mesa and a future workplace destination.
- Glenn Best (Chair, Kearney Mesa Community Planning Group, Nutrasweet Kelko): Expressed support on behalf of the planning group, citing the 12,000 jobs (9,000 high-tech), entertainment component, and reduction in retail from original proposal. He voiced concerns about traffic impacts and Caltrans’ prediction of a four-mile queue, but noted staff mitigation conditions.
- Ed Bacani (CPA, Asian Business Association board member): Enthusiastically endorsed the project, emphasizing job creation, $4 million revenue, and potential for Asian businesses to complement the economic base.
- Mark Reedy (Ernest Hahn Professor of Real Estate Finance, University of San Diego): Supported the project, stating it aligns with San Diego's economic development needs, attracts high-tech jobs, and strengthens small business growth.
- Michael Conger (attorney, representing former General Dynamics employees): Requested a continuance to the next council meeting, citing ongoing litigation against General Dynamics for alleged broken promises. He argued the company had defrauded employees and urged the council to ensure ironclad commitments. Council members denied the continuance, noting the two-year public process and lack of prior outreach from the attorney.
Discussion Items
- Staff Report and Development Agreement: Mike Westlake (Project Director, Development Services Department) and Marcel Escobar Eck (City Manager's Office) presented the New Century Center Master Development Concept Plan. The project includes 85 acres of retail/entertainment (1.4 million sq ft) and 159 acres of industrial/business park (3 million sq ft). The 15-year development agreement provides extraordinary benefits: $500,000 for the Sarah Mesa Library, $500,000 for a Kearney Mesa Enhancement Fund, $250,000 for an I-15 auxiliary lane (with contingency to split between library and enhancement fund if other funding found), permanent preservation of 1,400 acres in Sycamore Canyon (248 acres dedicated to the city, 1,100 acres conserved with mitigation credit potential), and 50% of any mitigation credit revenue to the city (40% to Mission Trails Regional Park, 10% to Kearney Mesa Enhancement Fund, amended from 40% during the meeting). Additionally, Missile Park is retained as open space.
- Council Questions and Amendments: Council members discussed traffic concerns (staff clarified mitigation via HOV bypass lanes), the industrial/retail mix (30% reduction in retail from original, now 1.4 million sq ft retail vs. 3 million sq ft industrial), and community benefits. Council member McCarty highlighted the importance of expanding Mission Trails Regional Park. Council member Kehoe inquired about transit connections and flexibility in industrial use. The city manager amended the conservation agreement to increase the city's share of mitigation credit revenue from 40% to 50%, with 40% of that directed to Mission Trails and 10% to the Kearney Mesa Enhancement Fund.
- Zoning Code Update: Following the vote, the council moved to the zoning code update (continued from October 28, 2025). Staff presented Motion A and Motion B regarding wetlands regulations, biology guidelines, and other amendments. The council directed staff to prepare written responses and revised ordinances. Discussion was ongoing at the end of the transcript.
Key Outcomes
- Approval of New Century Center Project: The council voted unanimously to approve the project, including:
- Certification of Environmental Impact Report (EIR) LDR 960165.
- Adoption of amendments to the Progress Guide and General Plan and Kearney Mesa Community Plan.
- Approval of the New Century Center Master Plan, development agreement, and associated permits (vesting tentative map, planned commercial/industrial development permits, resource protection ordinance permit, and design standards manual).
- Extraordinary Benefits: The development agreement secures:
- $500,000 for Sarah Mesa Library.
- $500,000 for Kearney Mesa Enhancement Fund.
- $250,000 for I-15 auxiliary lane (with reallocation option).
- Permanent preservation of 248 acres dedicated to the city and 1,100 acres in Sycamore Canyon with a 50% revenue split from mitigation credits (40% to Mission Trails Regional Park, 10% to Kearney Mesa Enhancement Fund).
- Retention of Missile Park as open space.
- Next Steps: The zoning code update discussion was continued; staff will provide revised ordinances and responses to public testimony for further council action.
Meeting Transcript
Well, I mean we have about the same on both items. On both items of the I I I know uh uh let me let me see how on the speakers on 332. I think that we have a number of people that um have to we have a major convention in town that they are attending. And what I'd like to do, because we only have one speaker in opposition on that item is go to that item next and then come back to 330. So we're gonna go to 332 uh and we'll take the staff report, a brief staff report. This is the proposed redevelopment of the Kearney Mesa General Dynamics Site Plan, the new Century Center plan. This is a plan that has been worked on for a long time by city staff, by council members, to bring forward the reuse of this property so that it will be a true addition to the community. Uh we appreciate the cooperation of General Dynamics. I will say that from the beginning it was very important to me to have uh light industrial property, which we very badly need in this city as part of the plan, and I do see that it has been incorporated because I could not support the plan without it. Uh we do have one speaker in opposition, so what I am going to do uh is uh have the staff report, and then I'm going to go to the speaker in opposition, and then we'll go back to those in favor. Okay, could I have the staff report? Yes, Mike Westlake. Project director. Thank you, Mayor Golding. City Council members. Uh my name is Mike Westlake from the Development Service Department. I'm the project manager on the New Century Center project. Uh the proposed new Century Center Master Development Concept Plan includes establishing market-oriented office light industrial around a central market square. The uh western approximately 85 acres of the site located along the frontage of SR 163 is being redesignated from industrial and business parks general commercial and rezoned from M1B to CA to accommodate retail and entertainment uses. This portion of the project will accommodate a mixture of retail, entertainment, and mixed commercial land use is totaling 1.4 million square feet. The eastern approximately 159 acres of the project site will for the most part retain its existing industrial and business park land use designation and M1B zoning. This component of the project is planned for a campus-style industrial and business park area, incorporating a compatible mix of office research and development, light manufacturing, and industrial uses totaling just over three million square feet, which exceeds the amount of square footage that was in the original General Dynamics Manufacturing Plant. The new Century Center project was initiated by the Planning Commission in December of 1995, and active and frequent public review of this project has occurred ever since. The applicant has been meeting monthly with the Kearney Mesa Community Planning Group and many other interested organizations over the life of this project. After more than 50 meetings with the community over the last three years, the Kearney Mesa Planning Group voted to approve the new Century Center project. All of the conditions recommending by the planning group have been satisfied. The planning commission also reviewed this project in great detail. Five separate planning commission meetings were held, including the initiation hearing, three workshops, and the final planning commission hearing last month. On October 23rd, the planning commission voted unanimously to approve the New Century Center project. In addition to the New Century Center project itself, the city manager has successfully negotiated a development agreement with General Dynamics Properties to provide significant and extraordinary public benefits to the communities of Kearney Mesa, Sarah Mesa, and the city as a whole. And I would now like to introduce Marcel Escobar Eck, who will provide you a summary of the terms and the extraordinary benefits provided through the development agreement. The city manager's office successfully concluded negotiations with General Dynamics Properties Incorporated on a 15-year development agreement. The 15 year the development agreement provides for significant and extraordinary benefit to the City of San Diego in a number of ways. The development agreement will be providing $500,000 towards the construction of the Sarah Mesa Library. It will also be providing $500,000 towards exclusive Kearney Mesa enhancement fund. $250,000 will be provided towards the I-15 Auxiliary Lane between Murphy Canyon Road and Friars Road. There is a contingency in the development agreement that if a funding source is found for the I-15 auxiliary lane through other means, then that money will be split half towards the Kearney Mesa Enhancement Fund and half towards the Sarah Mesa Library. Permanent preservation of approximately 1,400 acres of the General Dynamics property in the Sycamore Canyon area will be preserved through this development agreement. Of the 1,100 acres that are on the northern portion of Sycamore Canyon, they uh General Dynamics will be able to sell credit mitigation credits to third parties, and 40% of any potential revenue that comes up in that area will be tagged towards the Mission Trails Regional Park Fund. Marcel, would you please explain that to me? Because this is the first time I've heard about it. I'm not real happy about this. This what you just said. I want to hear that again. The um could you go to the slide that has the Sycamore Canyon? The property. This is the Sycamore Canyon site that General Dynamics owns out in this area. Site J is approximately 1,100 acres, and the area with the pink portion around it is approximately 248 acres. The 248 acres will be dedicated to the City of San Diego upon execution of the development agreement. The 1100 acres, which is Site J will be preserved through the Conservation Agreement, which is attachment J of the Development Agreement.
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