San Diego Development and Intergovernmental Relations Committee Meeting - November 14, 2019

The Development and Intergovernmental Relations Committee of the San Diego City Council met on November 14, 2019, to discuss four agenda items including a memorandum of agreement with the county for public health services, updates to the business incentive program, the convention center's annual performance, and a cannabis equity study. The meeting included public testimony and informational presentations, with only the first item requiring a vote.

Consent Calendar

• Approval of Minutes: The committee unanimously approved the minutes from the previous meeting.

Public Comments & Testimony

• Non-Agenda Public Comment: Martha Welch spoke for two minutes, alleging that the city takes bribes, lacks financial audits, and misleads the public. She also criticized the county for mismanagement and claimed to have worked with the FBI.
• Item 4 (Cannabis Equity Study):
  • Scott Chipman opposed using tax money for cannabis business development, stating the drug is harmful and citing health risks.
  • Kathleen Lippitt argued that grants for marijuana businesses would exploit low-income communities and that statistical disparities do not prove discrimination.
  • Becky Rapp, a parent, urged the committee to focus on youth health services and job training rather than marijuana businesses.
  • Sapphire Blackwood shared her brother’s story, advocating for social equity and opportunities for those impacted by the war on drugs.
  • Barry Harris Jr., president of Pavin Gray Futures, supported equity programs and noted that the cannabis industry currently favors wealthy white men.

Discussion Items

• Item 1: Memorandum of Agreement with County for Public Health and Environmental Services – Robert Vachy, Deputy Chief Operating Officer, presented the agreement. It updates communication protocols and service responsibilities between the city and county, superseding agreements from 1953 and 1977. The county will continue to provide services like disease control, food safety, and vector control. Vice Chair Montgomery raised concerns about a methadone clinic in her district, and the city attorney noted the need to align outdated municipal codes. The item passed unanimously.
• Item 2: Business Incentive Program Update – Lydia Moreno and Elizabeth Studebaker provided an informational update on Council Policy 900-12, approved in 2018. The program targets base-sector firms that create or retain middle-income jobs or invest $5 million. Outreach included a website, mailings to 64,000 businesses, and presentations. Of 52 applicants, most did not meet the base-sector definition. No action required.
• Item 3: San Diego Convention Center Corporation FY2019 Year-End Sales and Marketing Update – CEO Rip Rippeto, Board Chair Zima Jacobson, and Joe Tursey of the Tourism Authority reported record results: 143 events, $1.3 billion economic impact, $26.2 million in transient occupancy taxes, and 863,000 attendees. Occupancy reached 79.3% (exhibit hall 83.2%), far above the national average. The center generated $45 million in revenue, returning $1.80 for every dollar of city investment. Lost business due to space constraints remained high at 64%. Conventions were booked as far as 2035. The presentation emphasized the need for expansion to retain large events. No action taken.
• Item 4: Mid City CAN Cannabis Equity Study – Diana Ross and Imani Marshall presented findings on cannabis-related arrests from 2012–2017. There were 5,097 arrests, with Black residents arrested at six times the rate of whites, Pacific Islanders at four times, and Latinos at double. Youth arrest rates were six times higher than adult rates. The study recommended prioritizing equity in licensing and returning tax revenues to impacted communities via nonprofits. A poll showed 85% of San Diego voters support such reinvestment. Councilmember Kirsey noted that the city is missing state grant funds, and Chair Ward stated that a formal equity program is being developed.

Key Outcomes

• Item 1 was approved unanimously via motion by Vice Chair Montgomery and seconded by Councilmember Bree.
• Items 2, 3, and 4 were informational only and required no action.
• Chair Ward confirmed that the committee would continue working on a cannabis equity program for San Diego, with language expected in early 2020.