OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Economic Development Committee Meeting on Promise Zone and Brewery Industry - July 14, 2016

Economic Development & Intergovernmental Relations CommitteeThursday, July 14, 2016
BodySan Diego, California
SessionEconomic Development & Intergovernmental Relations Committee
DateThursday, July 14, 2016
StatusFILED
Video Record

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Transcript — Verbatim
2:41

Good afternoon and welcome to to the July 14th uh twenty sixteen meeting of the economic development and intergovernmental relations committee.

2:51

Let the record reflect that all members are present, including Vice Chair Kercy, Councilmember Kate, and Councilmember Alvarez.

2:58

Also in attendance today.

2:59

Our Deputy City Attorney Nate Slagers, Denise Garcia representing the mayor's office, Jeff Coir from the Office of the Independent Budget Analysts, and uh our always wonderful committee consultant Pam Ison.

3:12

We will begin today with approval of the minutes and the committee record of actions uh from June sixteenth, twenty sixteen will be approved by unanimous consent unless we pulled for discussion is not so it is approved.

3:25

We will now hear from the public with non-agenda public comment, and we do have a speaker, and that speaker's name is Martha Welch.

3:34

You have two minutes, Miss Welch.

3:39

Good afternoon, Martha.

3:40

Sometimes when we do standard way.

3:46

I I see other bad um webs uh uh uh cities, the budgets and everything everywhere, but but we have performance audits.

3:56

In San Diego, we're um I think sometimes we're not in the in California or SA.

4:02

So the state and federal don't hate you.

4:04

Why?

4:05

Because calling.

4:06

You don't follow the rules everybody else.

4:10

And also there's a lawsuit with um uh voters.

4:15

But uh sending over time.

4:17

I'm gonna help them everywhere I can too do.

4:20

I also uh searching about the counties only one that 50 percent, it's only uh this one only.

4:27

Because calling you know how um we we vote 29th before the elections.

4:34

And um, you know what, um this is not right what you do in here.

4:38

And you know the proof of this?

4:40

Orange County.

4:41

Bill Horn has lawsuits, and they're losing cases, a lot of them right now.

4:45

And that's what's going on.

4:47

Because the calling wrecks everything in this county.

4:49

Because the rules are not right.

4:51

With housing is the worst part of the housing is the worst thing we do in this county.

4:56

It's not fair.

4:57

What do you do?

4:57

But aim is not um no one else used this ever.

5:01

Um also you have tiers with with rents.

5:04

I know that where I live, there's three rents where I live.

5:07

And also Section 8 is not right.

5:09

You give into properties, not and also the county does not step out and pay their share to the owner.

5:14

Owners not respected in this county, also in the city.

5:17

You're showing property, that's one of the things on the lawsuits.

5:20

Also, callings another thing, and not paying goods and services.

5:24

The other thing are the lawsuits.

5:29

Excuse me.

5:30

Any um committee member comments?

5:32

Moving on to city attorney.

5:35

IBA or the mayor's staff.

5:38

Thank you.

5:39

We'll now move to the information agenda.

5:42

Our first item is a report from Catherine Crow from Corporate Partnerships and Development.

5:50

She will provide an overview regarding San Diego's recent promise zone designation.

5:55

On Tuesday, council voted unanimously to ratify the designation agreement with HUD that was awarded to the San Diego to San Diego on June 6th, 2016, and to accept the designation for a period of 10 years.

6:11

The promise zone is something I like this committee to provide close oversight because this designation has the potential to transform neighborhoods like the ones Councilmember Alvarez and I represent.

6:25

So this committee will definitely keep a close eye on this.

6:48

Thank you, Chairwoman Cole and committee members.

6:51

My name is Catherine Crow, and I am the citywide grants and donations program manager with uh corporate partnerships and development.

7:01

So in his 2013 State of the Union address, President Obama laid out an initiative to designate a number of urban, rural, and tribal communities as promise zones.

7:12

Promise zones are high poverty communities in which federal government partners with local leaders to increase economic activity, improve educational opportunities, leverage private investment, reduce violent crime, enhance public health, and address other priorities as identified by those communities.

7:29

The core focus of the promise is a collaboration between private business and state, federal, and local officials, faith-based and nonprofit organizations, and resident engagement.

7:40

The 22 urban, rural, and tribal promise zones were selected through three rounds of national competition in which applicants demonstrated a consensus vision for their community and its residents, the capacity to carry out that vision, and a shared commitment to specific measurable results.

7:59

So in order to be able to apply for the promo zone uh designation, we had to have a boundary that included uh but was between 10,000 and 200,000 people, uh had to have a poverty level of at least 33 percent, and had to be one contiguous geography.

8:19

So this map is the San Diego Promise Zone.

8:22

So this is actually um it's 19 partial and full census tracts.

8:28

I think 17 are full census tracts, two or partial.

Discussion Breakdown — Share of Meeting
Economic Development█████████████████████████████████████████████74%
Public Comment█████8%
Public Engagement████6%
Water And Wastewater Management██4%
Technology and Innovation2%
Development Services2%
Waste Management2%
Procedural2%
Summary of Proceedings

Economic Development and Intergovernmental Relations Committee Meeting - July 14, 2016

The Economic Development and Intergovernmental Relations Committee met on Thursday, July 14, 2016, at 10:00 AM. The committee received an informational report on the new San Diego Promise Zone designation and a presentation from the San Diego Brewers Guild on the local craft beer industry. No voting actions were taken on these agenda items.

Consent Calendar

  • The minutes from the June 16, 2016 meeting were approved by unanimous consent without discussion.

Public Comments & Testimony

  • Martha Welch spoke on non-agenda items, criticizing city and county practices. She expressed opposition to what she described as unfair housing policies, Section 8 mismanagement, and county failure to pay its share to property owners. She referenced lawsuits in Orange County and alleged that the county's rules are not right, particularly regarding housing and rent tiers. She urged the committee to follow performance audit practices seen in other cities.

Discussion Items

  • San Diego Promise Zone Designation – Catherine Crow, Citywide Grants and Donations Program Manager, presented an overview. The Promise Zone is a 10-year federal designation awarded to San Diego on June 6, 2016, covering 19 census tracts in Districts 3, 4, 8, and 9 (population 77,241; poverty rate 39.6%; unemployment 15.61%; youth unemployment 40.1%). The designation provides priority preference points on federal grants, five AmeriCorps VISTA volunteers, and a dedicated HUD liaison. Fiscal impact is unknown but earlier rounds brought in approximately $550 million. The city is the lead applicant; partners include Civic San Diego, County HHSA, Jacobs Center, Housing Commission, San Diego Unified School District, and Workforce Partnership. Next steps include launching October 1, 2016, developing MOUs, and creating a strategic plan. Councilmember Alvarez asked about staffing, data measurement, and the process for partners to obtain certification for bonus points. Chairwoman Cole directed that the Promise Zone tax incentive be included in the city’s federal legislative program.
  • San Diego Brewers Guild Report – Rick Chapman (Coronado Brewing Co.) and Lee Doxeder (San Diego Brewing Co.) provided an update on the craft beer industry. In 2015, the industry generated $851 million in sales and employed over 4,500 workers countywide; there are approximately 122 breweries as of 2016. They highlighted that 95% of biotech jobs go to outsiders, while brewery jobs are local. Key challenges include: navigating city permitting (Development Services Department), water/wastewater issues, air pollution control district fees, and a lack of coordination across county municipalities. They praised Russ Gibbons of the city’s Economic Development Department as a valuable liaison. They requested a dedicated brewery “czar” or one-stop point of contact, and asked the committee to consult the industry before enacting regulations. Councilmember Kate raised questions about spent grain disposal, access to capital, and state legislation on taphouse laws (SB 1426). Vice Chair Kercy noted consolidation in the industry and praised craft beer tourism. Chairwoman Cole referred the issues raised to the mayor’s office and Russ Gibbons.

Key Outcomes

  • The committee took no formal vote on either information item.
  • Directives were given to include the Promise Zone tax incentive in the city’s 2017 federal legislative program, to be developed in October/November 2016.
  • The committee referred the brewery-related issues (permitting coordination, regulatory streamlining) to the mayor’s office and Economic Development staff (Russ Gibbons) for further action.
  • The next Economic Development and Intergovernmental Relations Committee meeting is scheduled for August 4, 2016.

Meeting Transcript

Good afternoon and welcome to to the July 14th uh twenty sixteen meeting of the economic development and intergovernmental relations committee. Let the record reflect that all members are present, including Vice Chair Kercy, Councilmember Kate, and Councilmember Alvarez. Also in attendance today. Our Deputy City Attorney Nate Slagers, Denise Garcia representing the mayor's office, Jeff Coir from the Office of the Independent Budget Analysts, and uh our always wonderful committee consultant Pam Ison. We will begin today with approval of the minutes and the committee record of actions uh from June sixteenth, twenty sixteen will be approved by unanimous consent unless we pulled for discussion is not so it is approved. We will now hear from the public with non-agenda public comment, and we do have a speaker, and that speaker's name is Martha Welch. You have two minutes, Miss Welch. Good afternoon, Martha. Sometimes when we do standard way. I I see other bad um webs uh uh uh cities, the budgets and everything everywhere, but but we have performance audits. In San Diego, we're um I think sometimes we're not in the in California or SA. So the state and federal don't hate you. Why? Because calling. You don't follow the rules everybody else. And also there's a lawsuit with um uh voters. But uh sending over time. I'm gonna help them everywhere I can too do. I also uh searching about the counties only one that 50 percent, it's only uh this one only. Because calling you know how um we we vote 29th before the elections. And um, you know what, um this is not right what you do in here. And you know the proof of this? Orange County. Bill Horn has lawsuits, and they're losing cases, a lot of them right now. And that's what's going on. Because the calling wrecks everything in this county. Because the rules are not right. With housing is the worst part of the housing is the worst thing we do in this county. It's not fair. What do you do? But aim is not um no one else used this ever. Um also you have tiers with with rents. I know that where I live, there's three rents where I live. And also Section 8 is not right. You give into properties, not and also the county does not step out and pay their share to the owner. Owners not respected in this county, also in the city. You're showing property, that's one of the things on the lawsuits. Also, callings another thing, and not paying goods and services. The other thing are the lawsuits. Excuse me. Any um committee member comments? Moving on to city attorney. IBA or the mayor's staff. Thank you. We'll now move to the information agenda. Our first item is a report from Catherine Crow from Corporate Partnerships and Development. She will provide an overview regarding San Diego's recent promise zone designation. On Tuesday, council voted unanimously to ratify the designation agreement with HUD that was awarded to the San Diego to San Diego on June 6th, 2016, and to accept the designation for a period of 10 years. The promise zone is something I like this committee to provide close oversight because this designation has the potential to transform neighborhoods like the ones Councilmember Alvarez and I represent. So this committee will definitely keep a close eye on this.

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