Economic Development and Intergovernmental Relations Committee Meeting

This meeting of the Economic Development and Intergovernmental Relations Committee took place on October 19, 2017. The committee received informational reports from the Economic Development Department, the San Diego Convention Center Corporation and Tourism Authority, and the San Diego Workforce Partnership. Discussions centered on business retention and expansion, convention center performance and the need for expansion, and a re-entry employment program for formerly incarcerated individuals. No formal votes were taken.

Consent Calendar

• The record of action from the August 3, 2017 meeting was approved by unanimous consent without discussion.

Public Comments & Testimony

• Martha Wells spoke during non-agenda public comment. She expressed frustration that no comments were allowed on the CAFR (Comprehensive Annual Financial Report), stating, "You're hiding something because we couldn't make comments on that." She also criticized MTS for removing benches on Broadway, leaving only rings, and for changing bus routes that inconvenience riders.

Discussion Items

• Economic Development Department Report – Lydia Moreno (Deputy Director) and Christina Bibler (Manager of Business Expansion, Attraction and Retention) presented highlights of FY17 activities. Key points included:

  • Five Guaranteed Water for Industry certifications awarded.
  • Creation of a water sewer capacity bank approved December 2016, expected launch in FY18.
  • Innovation economy accounts for 25% of regional GDP ($55 billion), 6,600 companies.
  • Storefront Improvement Program completed 22 rebates, reached 1,000th facade improvement, and ran out of money for the first time.
  • Business walks: 562 surveys completed in Hillcrest, College Area, Morena, and Alcohol Boulevard. Top concerns from businesses were homelessness, safety, and trash.
  • 2,920 business assists provided during the fiscal year.
  • Councilmember Barbara Bry asked about specific permitting issues; Christina Bibler noted that staff provide education and handholding, especially for manufacturing and logistics. Councilember Mark Kersey inquired about relationships with the county and about the Guaranteed Water program. He also highlighted homeless/safety concerns from business walks and noted that workforce housing shortages could deter companies like Amazon.

• Convention Center Update – Gil Cabrera (Vice Chair, acting Chair), Rip Rippeto (President & CEO, San Diego Convention Center Corporation), and Joe Terzi (President & CEO, San Diego Tourism Authority) presented FY17 results:

  • 149 events generated $1.1 billion in economic impact.
  • Hotel and sales tax revenues were highest since FY08, providing $25.4 million to the city's general fund.
  • 899,000 attendees (4th highest ever).
  • 66 primary events, including a record 21 medical citywides with 199,000 attendees.
  • Top event by tax revenue: Comic-Con ($3 million+).
  • Building occupancy reached 75.5% (2nd highest ever); functionally full above 70%.
  • All-time record facility revenue of $41 million.
  • Booked into 2035; 70% of available space for next 10 years already sold.
  • Lost business: 2 million room nights lost, 65-66% due to lack of space/preferred dates.
  • Capital expenditures increased; new sales pavilion under construction with $25.5 million loan from Infrastructure Bank.
  • Net ROI to city: $8.7 million (52%) after all city costs.
  • Joe Terzi noted that without expansion, booking cycles will decline. He expressed hope for a citizens' initiative on expansion. Homelessness and Hepatitis A outbreak were discussed as concerns, but meeting planners have not yet cancelled.
  • Councilmembers praised the report and stressed the need for expansion to continue economic growth.

• San Diego Workforce Partnership Re-Entry Works Program – Kristen Walker (Manager of Adult Programs) presented:

  • Program costs average $1,700 per participant annually, compared to $76,000 per year to house one inmate.
  • Two job centers in jails (East Mesa and Las Colinas) provide pre-release job readiness, cognitive behavioral therapy, and post-release case management.
  • East Mesa job center served 1,000 participants; recidivism rate for those receiving services is 8%, well below the DOL target of 22%.
  • Stories shared of individuals transformed by employment, including a man who served 28 years and now works at a hotel.
  • Funding: Sheriff's Department contributed $150,000; Workforce Partnership matched $150,000 for continued operation. Federal DOL grant is expiring; Las Colinas has one more year.
  • Councilmembers Bry and Kersey expressed strong support, noted lack of state funding accompanying Proposition 47/57 reforms, and urged continued advocacy and city hiring of formerly incarcerated individuals.

Key Outcomes

• All items were informational; no formal votes or directives were taken.
• The committee was reminded that the next meeting is scheduled for November 9, 2017.