Economic Development & Intergovernmental Relations Committee Meeting - July 15, 2020
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Economic Development & Intergovernmental Relations Committee Meeting - July 15, 2020
The Economic Development and Intergovernmental Relations Committee met on Wednesday, July 15, 2020, beginning at 10:00 AM PDT. The meeting was conducted with remote participation due to COVID-19. The committee approved consent items, discussed four substantive agenda items (including a computer donation partnership, a property disposition for affordable housing, a loan modification, and received updates on state affairs and the small business relief fund), and passed all action items unanimously.
Consent Calendar
- Item 1: Compensation Agreement for Park Boulevard at Grade Crossing, Downtown Wayfinding Signage, and Imperial Avenue Streetscape Improvements Projects - The consent agenda included these three projects. Public comments included opposition from Nicole Burgess (Mobility Board) who called the Park Boulevard project a "monster project" and urged re-evaluation; Joy Sanyata requested the item be pulled for discussion but ultimately it remained on consent; and Marshall Anderson (Downtown San Diego Partnership) expressed support. Councilmembers Montgomery and Ward commented on the long-awaited improvements. The consent calendar was approved unanimously.
Public Comments & Testimony
- Nicole Burgess (Mobility Board) opposed the Park Boulevard at Grade Crossing project, calling it a "six-lane corridor" inappropriate for the area.
- Joy Sanyata asked to pull the consent item for presentation but later deferred to the chair; on Item 2 she praised the "modernize and evolve" approach; on Item 3 she urged "realistic and equitable" affordable housing; on Item 4 she supported the loan modification; on Item 5 she thanked the state affairs team.
- Marshall Anderson (Downtown San Diego Partnership) supported the consent items and Item 3 (Kilroy ENA).
- Cassandra Lineline (Cox Communications) supported Item 2, commending the partnership with San Diego Futures Foundation.
- Jesse Stein (Voices for Children) supported Item 2, noting foster youth received computers.
- Sarah Cooper (League of Amazing Programs) supported Item 2, citing 160 children unable to join online classes without computers.
- Ariel Hughjar (business owner) supported Item 3, praising Kilroy's support.
- Rebecca Lieberman (San Diego Regional Chamber of Commerce) supported Item 3.
- Maya Roth (Circulate San Diego) supported Item 3, noting the project's mobility certification.
- Martha Welch (public) spoke on Items 3 and 5, expressing concerns about empty downtown towers and county issues.
- John Straw (East Village Association) supported Item 3.
Discussion Items
Item 2: Approval of Ordinance to Donate End-of-Life Computers to San Diego Futures Foundation
Jonathan Banke (CIO) and Jen LeBron (Digital Strategy Manager) presented the proposal to bridge the digital divide by donating the city's retired computers (about 800 per year) to the San Diego Futures Foundation for refurbishment and distribution to low-income residents, students, veterans, and others. The foundation provides Windows 10 and Microsoft Office licenses, training, and a one-year warranty. The service is provided at no cost to the city. Councilmember Montgomery asked about outreach and training; Councilmember Ward asked about recipient criteria and requested a report back. The committee voted unanimously to approve the ordinance.
Item 3: Popular Market Site Disposition – Kilroy Realty Corporation
Christina Bibler (Director of Economic Development) presented options for the city-owned 20,000 sq. ft. parcel at Broadway and 13th Street, constrained by a fault line. Kilroy Realty, owner of the adjacent 40,000 sq. ft. block, proposed to acquire the site for integration into a 600,000+ sq. ft. office project. Three options were presented: (1) sale at premium to market value ($7-8M appraised), with proceeds deposited into the Low/Mod Income Housing Asset Fund to create 60-80 affordable units; (2) land swap; (3) partnership with an affordable housing developer. Kaiser Marston analysis showed standalone development would yield fewer affordable units and require subsidies. Councilmember Ward moved to enter into an exclusive negotiating agreement (ENA) with Kilroy, with proceeds from a sale transferred to the San Diego Housing Commission for affordable housing creation. The motion was seconded by Vice Chair Montgomery and passed unanimously. Councilmembers noted the option would produce affordable units faster than alternatives.
Item 4: Modification of Loan Documents for 900 F Street Partners LP
Monica Hardman (Assistant Deputy Director) presented a loan modification for a 115-unit affordable housing project (86 affordable units) built in 2002. The developer requested: reduction of interest rate from 6.75% to ~3%, conversion to a fixed amortized loan ($183,000/year), and no forgiveness of accrued interest. In exchange, the affordability restrictions would be extended 10 years to 2061. The committee approved the modification unanimously, with Councilmember Ward praising the extended affordability.
Item 5: 2020 State Affairs Update (Informational)
Adrian Granda (Government Affairs), Moira Tope, and Nick Garcia provided an update on state legislative and budget activities. Key topics: COVID-19 impact on legislative schedule, the state budget ($54.3B deficit), federal funding triggers, housing and homelessness funding ($550M for Project Homekey), CEQA streamlining bills (SB 995), and police reform legislation (AB 1196). The presentation was for information only; no vote was taken.
Item 6: Small Business Relief Fund Informational Update
Christina Bibler reported on the Small Business Relief Fund launched March 24, 2020. As of July 14, 2020: 10,232 unique applications received, 804 awards distributed, totaling $7.1 million across five funding sources (CDBG, EDA, former enterprise zone funds, private donations, CARES Act). The program has supported 3,837 jobs, with an average business size of 5.1 FTEs. 60% of awards went to low- and moderate-income areas. Updates included expanded eligibility to sole proprietors and independent contractors. The committee received the report for information.
Key Outcomes
- Consent Calendar (Item 1): Approved unanimously.
- Item 2 (Computer Donation): Ordinance approved unanimously.
- Item 3 (Popular Market Site): Committee directed staff to enter into an ENA with Kilroy Realty, with proceeds to be used for affordable housing via the Housing Commission. Approved unanimously.
- Item 4 (900 F Street Loan Modification): Approved unanimously.
- Items 5 & 6: Received as informational; no action taken.
- Next Meeting: Scheduled for Wednesday, September 9, 2020, at 2:00 PM.
Meeting Transcript
Hi, who has joined the call? Hi, it's Mark Bruce. Great, I'll call that please hang up. Thank you. Good afternoon, everybody. Executive 2920, which is the conference is unlocked. Certain requirements of the Brown Act. Some of the council members will be participating via teleconference, and no members of the public will be in attendance at the meetings in the interest of public safety public health and safety. In addition, this meeting is being televised and live streamed on the city's website, and the committee liaison has made arrangements for the public to comment by phone and electronically. We appreciate the public's cooperation. I will now call the economic development and intergovernmental relations committee meeting of Wednesday, July 15th, 2020 to order. We have several members of the committee and staff calling in via teleconference. For the purposes of the roll call, those on teleconference include Councilmember Ward and Councilmember Kercy. Those council members will be watching the meeting from their remote location via City TV, and they are live at our teleconference over the committee room where they will participate in this meeting remotely. Those council members present in the committee room are myself and Vice Chair Montgomery. Also present in the committee room are Jordan Moore from the office of the IBA as well as our committee consultant Sophie Barnhorst. And also on the teleconference line is Daphne Scogan from the Office of the City Attorney and Zio Crespo from the Office of the Mayor. The public may call in following the instructions posted on the agenda by calling 619-541-6310 and entering conference ID 877-861 pound to be placed in the queue for public comment. You should do this when the item you wish to speak to is introduced. Please do not call in prior to that time. Our committee consultant will announce when the public comment period is open for an item, and a slide will go up on City TV. When the phone queue is empty, the public comment period will be closed. The same process will be used for each agendized item. When you are in the queue, you'll be able to hear the meeting and all others who are providing comment. You will know that it is it is your turn to speak. When you hear the system prompt say your phone has been unmuted. When you hear the prompt, immediately state your name and make your comments, then hang up. Each speaker will have one minute. Also, please mute the volume on your TV or computer before you begin to speak. If you call in during non-comment period, your call will not be taken. Please monitor the meeting and ensure you are calling at the appropriate time. The public may view the meetings on public television on CD TV channel 24 for Cox Communications and Time Water Cable or Channel 99 for ATT, or view the meeting online by going to the City Council Committee's homepage at San Diego.gov and selecting the City TV Live Webcast blue button on the right side of the page. A quorum is now present. We will now dispense with the approval of the committee actions. Motion by Vice Chair Montgomery, which I will second. We will now have each council member member register their votes. And again, just remind our colleagues to please mute your phone after you complete your comments. Call in first Vice Chair Montgomery. Yes. Councilmember Ward. Yeah. Councilmember Kirsey. Yes. And I am a yes. That motion passes unanimously. We will now take up non-agenda public comments. Sophie, please proceed. Per temporary rule 2.6, non-agenda public comment is an opportunity for members of the public to comment on items that are not on the agenda, but within the subject matter jurisdiction of the city council. Each speaker will have one minute. I'm sorry.
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