Economic Development and Intergovernmental Relations Committee Meeting - February 11, 2016
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Economic Development and Intergovernmental Relations Committee Meeting - February 11, 2016
The Economic Development and Intergovernmental Relations Committee met on February 11, 2016, at 10:00 AM, chaired by Councilmember Cole. All members were present, including Vice Chair Kirsey, Councilmember Kate, and new member Councilmember Alvarez. The committee approved the minutes from January 21, 2016, by unanimous consent. No public comments were made. Committee members discussed priorities and a recent advocacy trip to Sacramento, focusing on water and economic development. The committee reviewed two informational reports: the Tourism Marketing District (TMD) FY2015 performance and the federal lobbying year-in-review and outlook.
Consent Calendar
- Approval of the committee record of actions from January 21, 2016, by unanimous consent.
Public Comments & Testimony
- None.
Discussion Items
Item 1: Report on San Diego Tourism Marketing District (TMD) FY2015 Performance
- Presented by Meredith Dibden Brown (Economic Development Department) and Lauren Stewart (Executive Director, TMD Corporation).
- The report highlighted the importance of tourism to San Diego. City TOT receipts for FY2015 were $186 million, $16 million higher than FY2014, partly due to the TMD program.
- The renewed TMD district includes all lodging businesses within the city. Deployment of funding was delayed in early months, and a reserve of $12 million was held at end of FY2015, projected to reach $30 million by end of FY2017.
- One outstanding lawsuit continues; a March 2016 court date is scheduled for the merits phase.
- The San Diego Tourism Authority (SDTA) received $22.5 million in TMD funds, supporting approximately 3.7 million TMD room nights, yielding $584 million in hotel revenue, with a return on investment (ROI) of 26:1.
- Overall TMD funding deployed in FY2015: $24,509,828, supporting 3.9 million TMD room nights, yielding $605 million in revenue, with an overall ROI of 25:1.
- Other funded events and their ROIs: SportsFirst (6:1), California State Games (11:1), San Diego Bay Fair (25:1), La Jolla Playhouse's Hunchback of Notre Dame (12,000:1 – note: the transcript states $18,000 funding yielded $224,000 revenue, so ROI is 12.4:1; the figure given is 12,000 to one, which appears to be a misstatement – likely 12:1), Beer Week (17:1), Holiday Bowl (29,000 room nights, $4.3 million revenue), Farmers Insurance Open (31:1), Crew Classic, and Rock 'n' Roll Marathon (15:1).
- Committee members questioned measurement methods, particularly for craft beer tourism, and discussed future events like the 2016 MLB All-Star Game (funded $400,000 through a supplemental application) and the 2017 World Beach Games. The need for a strategic destination master plan was emphasized.
Item 2: Report from Federal Lobbyist Squire Patton Boggs – 2015 Year in Review and 2016 Outlook
- Presented by Alejandro Kobaldon (Mayor's Office) and Pamela Welsh (Squire Patton Boggs).
- Key federal successes in 2015: two-year budget deal, five-year surface transportation reauthorization (FAST Act), extension of EB-5 and tax extenders (including permanent R&D tax credit, New Markets Tax Credit through 2019), and delay of Cadillac and medical device taxes.
- San Diego-specific advocacy: Pure Water and drought funding (Senator Feinstein's reintroduced bill includes increased Bureau of Reclamation project cap from $4 million to $20 million, and creation of RIFIA for recycled water), Point Loma wastewater treatment (EPA waiver expected by late spring/early summer 2016, with a five-year extension), homelessness funding (HUD agreed to waive fair market rent up to 160%), HUD Moving to Work program extension through 2028, and transportation (Tiger grant for Port, Mid-Coast Trolley funding).
- 2016 outlook: Election year slowdown expected by May. Priorities include maintaining UASI funding (president's budget proposed cuts), cybersecurity, protecting municipal bond tax exemption, supporting the Coast Guard City designation, and continuing work on homelessness formula disparity, banking regulations, and workforce initiatives.
- Committee members asked about CBP personnel at ports, banking regulations, DOD procurement, and alternatives to incarceration programs.
Key Outcomes
- Both items were informational only; no motions were required.
- The committee acknowledged the TMD performance report and thanked Lauren Stewart for his service as he departs in March 2016.
- The committee received the federal lobbying report and expressed appreciation for the detailed San Diego-specific focus.
- The meeting was adjourned to the next meeting scheduled for March 10, 2016.
Meeting Transcript
She pulls those shades down tight. When the pain comes. Oh yeah. Don't you know that look up here? I'm in heaven. I've got scars that can't be seen. I've got drama can't be stolen. Everybody knows me now. Look up here, man. I'm in danger. I've got nothing left to lose. I got to New York. Just let that blue bird free that just like me. Your access to City Hall of Big Love. Good afternoon and welcome to the February 11th, 2016 meeting of the Economic Development and Intergovernmental Relations Committee. I think that's one of the longest uh committee names that we have, I think, here. But um let the record reflect that all members are now present, including Vice Chair Kirsey, Councilmember Kate, and our newest member, Councilmember Alvarez. Welcome, Mr. Alvarez. Also in attendance, our Chief Deputy City Attorney, Kevin Reich, Kristen Tilquist representing the mayor's office, Jeff Kawar from the Office of the Independent Budget Analysts, and as always, our fabulous, fantastic Pim Ison, our committee consultant. We will begin today with the approval of the minutes. The committee record of actions from January the 21st, 2016, will be approved by unanimous consent unless pulled for discussion. We will now hear from the public with non-agenda public. Do we have none? Are you serious? We have none. Any other committee member comments? Mr. Alvarez. Hello. I just wanted to uh once again say thank you for uh for allowing me to be part of the committee. I want to thank uh council president for uh for entrusting me with uh ability to sit on this committee, and I look forward to a productive year. Um I didn't get a chance to uh when I know last meeting you all talked about priorities. Um I did actually submit priorities to the committee as well early on when you uh put out a request for for uh priorities and um uh read the headlines of of my memo. Um update on policy nine hundred-01 um as it relates to uh incentives for uh economic development. Um the issue of the redistribution of property tax funds, use for revitalization efforts in disadvantaged communities. Um a new piece of legislation signed by the governor, which is the community reinvestment, a revitalization authority. Um look forward to working through the committee to bring that to San Diego. Um people are calling that redevelopment 2.0. Uh I think that's uh def that's not exactly the case, but it is a tool that's important. So again, thank you very much. And I look forward to all our discussions. Thank you, Councilmember Alvarez. Also, I like to uh once again highlight a recent advocacy trip to Sacramento that Council President Leitner, Council President Pro Tim Emerald, and I participated in. Uh, with several state agencies, the governor's office and members of our delegation, including our friend, the Speaker of the Assembly, Tony Atkins. We focused on water and economic development. Some of the takeaways from that trip that I look forward to exploring to this committee in the next few months are related to the governor's employment training panel and workforce training. This is an actual funding out there that, or there is actual funding that we reimbur reimburse employers who take time out to train employees. And with the Governor's small business advocate and their capital infusion program, again more cash and resources that we can help bring to our local businesses to make sure they are able to grow and remain competitive. And I would really like to thank our State lobbyists, particularly Mora Top for helping to facilitate the visit.
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