Economic Development and Intergovernmental Relations Committee Meeting - October 20, 2016
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Economic Development and Intergovernmental Relations Committee Meeting - October 20, 2016
The Economic Development and Intergovernmental Relations Committee met on October 20, 2016, at 10:00 AM. The meeting was chaired by Councilmember Cole, with Councilmembers Kate and Alvarez present, and Vice Chair Kersey joining later. The agenda included reports on state and federal legislative advocacy, an update from Civic San Diego, an action item to extend a federal lobbying contract, approval of a modified Tourism Marketing District (TMD) operating agreement, and a discussion on reinvesting redevelopment property tax trust fund (RPTTF) residuals into underserved communities.
Public Comments & Testimony
- Martha Welch (first public comment) spoke about voting procedures, criticizing the requirement for two stamps on mail-in ballots and the lack of public service announcements. She urged the Board of Supervisors to address the issue.
- Ikechiko Joshua Njoku (student from E3 Civic High School) introduced himself and explained he was shadowing at the Mayor’s Office for a job shadow program.
Reports and Presentations
- State Legislative Update (Item 1) – Kristen Tilquist (Mayor’s Office) introduced Maura Top (Top Strategies) and Nick Garcia (Platinum Advisors), who summarized the 2016 legislative session. Key points: seven legislative races could affect a Democratic supermajority; transportation funding remained unresolved (special session open until Nov. 30); $900M cap-and-trade spending agreed; local breweries bill (SB 1426) defeated; AB 2664 (entrepreneurship at UC campuses) signed; pure water demonstration bill (AB 2022) faced Water Board reticence; stormwater fee fix (Prop 218) discussed but no resolution; housing bond (AB 2817) vetoed; Prop 63 funds for homelessness directed to counties. Councilmember Kate asked about Governor Brown’s final priorities (fiscal restraint) and water tunnels litigation risks. Vice Chair Kersey asked about pure water and housing bonds. Chair Cole advocated for Prop 47 funding for reentry services.
- Civic San Diego Report (Item 2) – Michael Lindell and Gustavo Bidart presented the FY17 Economic and Community Development Work Plan. They highlighted: $83M in New Markets Tax Credit allocations (93% invested in five projects); formation of a Transit-Oriented Development (TOD) Fund (market assessment completed, fund launch late 2017); exploring an EB-5 regional center; launching a Business Improvement District (BID) Neighborhood Small Business Program in November 2016 targeting Alcalahome and Southeastern Diamond corridors; $400,000 non-interest-bearing note to Axiom San Diego for small business lending; partnership to activate commercial kitchens for social enterprise; commitment to allocate 20% of low-moderate income housing assets and 35% of New Markets Tax Credits to the newly designated Promise Zone in Southeast San Diego.
Action Items
- Amendment to Federal Lobbying Contract (Item 3) – Alejandra Cabaldon requested approval to extend the contract with Squire Patton Boggs for two one‑year options (Jan. 1, 2017–Dec. 31, 2018) at $14,000/month ($336,000 total). The first year (FY17 remainder) is $84,000 already budgeted. Councilmember Alvarez moved approval, seconded by Councilmember Kate. The motion passed unanimously.
- Tourism Marketing District (TMD) Update and Operating Agreement (Item 4) – Meredith Dibden Brown presented the updated FY17 budget split into Part 1 (July–Oct. 2016, ~$41M) and Part 2 (Nov. 2016–June 2017, ~$24.5M) reflecting the modified district (only hotels with 70+ rooms). The new five-year operating agreement begins Nov. 1, 2016. Litigation reserve is $29M in FY17 and $30M in FY18. Councilmember Alvarez asked for a litigation update before full council; staff offered an individual briefing. Motion to approve passed unanimously.
Discussion Items
- Use of Redevelopment Property Tax Trust Fund (RPTTF) Residuals (Items 5 & 6) – Charles Modica (IBA) provided background: redevelopment dissolution in 2012 created the RPTTF; the city’s share of residual revenue is ~17% of the countywide pool, projected to grow from $14M (FY14) to $23.7M (FY21). Councilmembers Cole and Alvarez proposed dedicating these unrestricted general fund residuals to affordable housing (25% set‑aside) and economic development in former redevelopment areas and CDBG-eligible neighborhoods. They cited successful redevelopment examples (North Park, downtown). Public speakers in favor: Michelle Muniz (Affirmed Housing Group), Matt Adams (BIA), John Seymour (National CORE), Carol Kim (Building Trades Council), Stephen Russell (San Diego Housing Federation). One speaker (Martha Walsh) opposed, arguing the funds should go to HUD-based affordable housing. Mary Lewis (CFO) warned that earmarking residuals ($18M anticipated FY18) would create a general fund hole, compounded by $25M increased pension ADC payments and Prop H infrastructure set-asides. Vice Chair Kersey suggested waiting for the five‑year financial outlook (due Nov. 9) before committing. Councilmember Kate asked about unexpended funds and geographic equity, noting CDBG areas in his district. The item was informational only; no motion was taken.
Key Outcomes
- Votes passed unanimously: Amendment to Squire Patton Boggs contract (Item 3); approval of modified TMD budget and new operating agreement (Item 4).
- Directives: The committee requested a litigation status update on the TMD before full council consideration. Council staff will work with the Mayor’s Office, City Attorney, and IBA to develop a formal policy on RPTTF residual use, with further discussion expected after the five‑year outlook is released.
- Next EDIC meeting: Scheduled for November 17, 2016.
Additional Remarks
The meeting included a brief student introduction and a closing announcement for Tijuana Innovadora 2016 (Nov. 3–10), but those were not part of the formal agenda.
Meeting Transcript
Good afternoon. We're gonna start. We do have a quorum. Um good afternoon to everyone. Welcome to the October 20th, 2016 meeting of the economic development and intergovernmental relations committee. Let the record reflect that uh we have present council members Kate and Alvarez and myself, and also in attendance are the extraordinary team. W city attorney Kevin Reich, Kristen Tilquist representing the mayor's office, Jeff Kwar from the Office of the Independent Budget Analysts, and our committee consultant Pam Eisen. Today we'll begin with approval of the minutes. Yes, we do have one. And we have Martha Welch, please, Martha Welch come up. And you have two minutes. This is about voting in the register of voters. First time we have to put two stamps on our mail. The sample on your voting right this year. First time. Um they only said red and pencil. They didn't say blue or or or black. They didn't say anything on the on also. We're going back. Because a couple of years we had punch cards. I remember that. You came well, it had a little like that, and you and and also we used to have a um a box and put your in your your v and there and you sign. I went last year. I went to the training, and they don't do that anymore. You don't sign or anything else. It's going backwards. And this why is it's not right. And it's you know what's proper, the board of supervisors. Because they they hire and fire and they should do knowing what is going on. Because I think that that right now you have the best thing to do black um black or maybe a vote electorate. Because you can go up to the voters right now, you can vote up there on on on Overland Street. You can vote up there. The media won't uh on TV won't uh public service tell put two stamps on your uh on your uh voters um uh mail, they won't tell you. That's what's wrong with our city. They uh media won't talk about this stuff, and it should be uh talked about this. People might uh don't use to putting in the mailbox or something. It's just a new thing, and people might not notice that. Thank you. And and please note that uh for the record that Voss Chair Kersey has joined us. Welcome. Thank you. Good. Any uh committee member comments? Comments from the city attorney, IBA, mayor staff, alrighty. And I want to welcome some students. Uh what if you come up and tell us where you're from? Come on. Somebody else. We won't put you on the spot. You're here.
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