San Diego Economic Development and Intergovernmental Relations Committee Meeting

On October 7, 2020, the Economic Development and Intergovernmental Relations Committee of the San Diego City Council met virtually via Zoom, in compliance with Executive Order 29-20, to discuss four agenda items: an update from the Port of San Diego, digital equity initiatives, the Welcoming San Diego strategic plan, and a creative economy study. The meeting was chaired by Councilmember Kate, with Vice Chair Montgomery Steppe, Councilmember Ward, and Councilmember Kirsey present. The committee approved the previous meeting's actions unanimously and received public comments on several items.

Consent Calendar

• Approval of Actions (September 9, 2020): The committee unanimously approved the actions from the previous meeting. Motion by Councilmember Ward, seconded by Councilmember Kirsey. Votes: Vice Chair Montgomery Steppe (yes), Councilmember Ward (yes), Councilmember Kirsey (yes), Chair Kate (yes).

Public Comments & Testimony

• Non-Agenda Public Comment:
  • Martha Welch expressed concerns about the city's tax payments to state and federal governments, and referenced former Supervisor Bill Horn (indicted and in jail). She also criticized MTS and the county for alleged mismanagement.
• Port of San Diego Update (Item 1):
  • Joy Sanyata thanked the port commissioners for the presentation, praised the North Embarcadero Visionary Plan, and expressed support for the Port's work. (Position: supportive)
• Digital Equity Initiatives (Item 2):
  • Joy Sanyata spoke in support of the digital equity program, noting its importance for seniors and the community. She urged continued help for low-income seniors to access the internet. (Position: supportive)
• Creative Economy Study (Item 4):
  • Joy Sanyata thanked the presenters, called the presentation a learning experience, and highlighted the economic value of the creative economy. (Position: supportive)

Discussion Items

• Port of San Diego Update:
  • Commissioners Michael Zuquette, Rafael Castellanos, and Marshall Merrifield provided an update. Key points:
    • Financial Impact of COVID-19: Port revenues declined 15% ($30 million) from March to June 2020 compared to budget, and a $60 million shortfall is projected for FY2021. The Port is ineligible for CARES Act funding because it is a special independent agency. Concession rent from hotels dropped 84% from March to July 2020 (from $27 million to $4.2 million). Convention center hotels saw a 90% decline. The Port has $120 million in reserves and has enacted hiring freezes and cost-cutting measures; no full-time layoffs occurred.
    • Maritime Clean Air Strategy (MCAS): A four-phase initiative to improve air quality in port-adjacent communities (Barrio Logan, Logan Heights, Sherman Heights, National City). These communities rank among the worst air quality in California (top 10% per CalEnviroScreen). The Port allocated $500,000 for window and air filter replacements at Perkins Elementary School. Also, $100,000 was spent on hotel rooms for residents affected by the USS Bonhomme Richard fire in July 2020.
    • Port Master Plan Update: A discussion draft of the updated plan is expected for public comment later in October 2020, with CEQA review in 2021 and Coastal Commission approval in 2022. The concept of "Harbor Drive 2.0" (dedicated freight haul road) is being studied with SANDAG, Caltrans, and the Navy.
    • Seaport Village Revitalization: Occupancy increased from 84% to 92% since 2018. New tenants include Sam the Cooking Guy, Louisiana Charlie's, and Malibu Farms (pending approval). Portside Pier (North Embarcadero) opened two months prior, serving 90,000 parties and generating $5 million in revenue despite the pandemic.
    • CEO Search: Following CEO Randa Conley's retirement announcement, the Port has launched a national search, with a target to have a new CEO by early 2021.
  • Councilmember questions focused on the Port's ineligibility for CARES Act, small business inclusion, rent deferment programs (deferral of minimum rent to October 2021, with conditions including worker rehire policies), and the outlook for the cruise industry (likely return in mid-2021).
• Digital Equity Initiatives:
  • Presented by Jonathan Banke (CIO) and Sam Alice Crespo (Economic Development). Key points:
    • The City Council allocated $500,000 in one-time funds to bridge the digital divide. A working group (SD Access for All) has been formed.
    • Partnership with San Diego Futures Foundation: 2,200 end-of-life computers donated for refurbishment. The Foundation has provided over 53,000 computers to date.
    • Outdoor community computer labs opened at four library locations (Central, Skyline Hills, San Ysidro, Malcolm X). Seven more are in progress. Parks Wi-Fi: 10 of 25 sites active, with Parks Foundation funding.
    • A grant application to the Economic Development Administration (EDA) for $380,000 (plus matching funds, total ~$500,000) was submitted to support digital inclusion in the Promise Zone (covering East Village, Barrio Logan, Logan Heights, Southeastern San Diego, Encanto). The project includes digital navigators, device distribution, and outdoor computer access labs.
  • Councilmembers requested metrics on usage and emphasized collaboration with schools and ISPs.
• Welcoming San Diego Update:
  • Presented by Denise Garcia and Rita Fernandez (Immigrant Affairs Manager). Key points:
    • The city hired its first-ever Immigrant Affairs Manager in November 2019. The Welcoming San Diego Strategic Plan (developed over five years) is in implementation phase.
    • COVID-19 impacts: 36,000 foreign-born essential health care workers and 32,400 foreign-born essential food/agricultural workers in San Diego. Many immigrants are ineligible for federal aid due to lack of Social Security numbers.
    • Key initiatives: resource guide for new San Diegans, advocacy on DACA (30,000 DACA recipients in health sector), naturalization (fee increases opposed), public charge rule, refugee resettlement (Mayor signed consent letter), and comprehensive immigration reform.
    • The plan has six sections: cross-sector, economic opportunity, education, inclusive access, civic engagement, and public safety. Examples include creating an Office of Immigrant Affairs, leveraging data, facilitating career advancement (re-credentialing), and expanding library services.
    • Councilmembers requested outreach to hard-to-reach immigrant populations and emphasized multilingual communications.
• Creative Economy Study:
  • Presented by Christina Bibler (Economic Development), Jordan Latchford (San Diego Regional EDC), and Jonathan Glus (Commission for Arts and Culture). Key points:
    • The study is the first comprehensive analysis of San Diego's creative economy, based on 2019 data (pre-COVID).
    • Creative industries (71 sectors) have an $11 billion regional economic impact (4.5% of regional economy) and support 17,000+ jobs (7% of total employment). For every job in creative industries, 1.1 jobs are supported elsewhere.
    • Creative occupations (77 types) employ 70,000 workers, with a median annual income of $75,000. Self-employed creatives (13,000) earn about $40,000/year.
    • Key findings: Creative firms value experience over degrees; top challenge is high cost of living; demand for more physical space (theaters, studios) and better marketing (e.g., film commission).
    • COVID-19 impact: As of August 2020, creative industry employment declined by 14,500 jobs, resulting in a $2.1 billion economic loss.
  • Councilmembers noted the importance of supporting the creative sector in recovery efforts and discussed branding and regional collaboration.

Key Outcomes

• All items were informational; no motions or votes were taken on the agenda items.
• The committee approved the consent calendar (meeting actions from September 9, 2020) unanimously.
• Chair Kate announced that the next two meetings (October 28 and a later date) will cover rent increases for city lessees and will be the last meetings of the year.
• The committee will continue to monitor the Port's financial situation, digital equity progress, immigrant integration efforts, and creative economy recovery.