Special Meeting on Cannabis BID, Grants, and Military Impact - Nov 20, 2020
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Special Meeting of the Economic Development and Intergovernmental Relations Committee - November 20, 2020
The committee met to discuss three major items: the formation of a San Diego Cannabis Business Improvement District (SDCBID), the FY2020 citywide grants report, and the San Diego Military Advisory Council (SDMAC) annual military economic impact report. The meeting also included non-agenda public comments and farewell remarks for departing councilmembers.
Public Comments & Testimony
- Non-agenda public comment: Victoria's mom (United Cannabis Coalition) attempted to speak on item 1 but was redirected. Martha Welch spoke about financial audits and county-city issues.
- On item 1 (Cannabis BID): Six callers spoke in support. Alex Sheriff (UMMC president) thanked code compliance and police for shutting down illegal dispensaries and supported the BID for industry voice. Dave Dalal (Tory Holistics) highlighted black market challenges, including solicitations to minors. Rocky Goyle (Pot Care, UMMC board member) expressed support and noted social equity inclusion. Brandon Bolton (United Core Alliance) requested avoiding the term "black market" due to racial connotations and supported a social equity subcommittee. Cecil Carter (United Cannabis Coalition) supported a cannabis equity program. Will Sen (Urban Lease, co-founder of Medical Marijuana Coalition) emphasized the need for stable funding to compete with illicit market and thanked the committee.
- On item 2 (Grants Report): One caller, Martha Welch, criticized financial audits and claimed funds are not properly tracked.
- On item 3 (Military Impact): No public comments.
Discussion Items
Item 1: Formation of a San Diego Cannabis Business Improvement District (SDCBID)
- Presenters: Phil Rath (Executive Director, United Medical Marijuana Coalition) and John Lambeth (Civitas Advisors) proposed a BID under the 94 Act, with boundaries of San Diego city limits, including only permitted retail cannabis facilities (approximately 20 retailers). The district aims to increase legal sales, combat the black market (more than 50% of sales are illegal), coordinate industry, and fund social equity programs.
- Proposed annual budget: $640,000, funded by a 0.33% assessment on gross revenue (e.g., $0.33 per $100 sale). The assessment rate can increase up to 1% with member vote and council approval.
- Programs include marketing/advertising/PR, communications/policy development, and social equity (incubation, training, mentorship). The district would be open to all new permitted retailers automatically. The process requires three hearings at city council: resolution of intention, public meeting, and public hearing. The presenters requested moving forward to the next step.
- Committee members expressed support. Councilmember Montgomery Step noted interest in social equity and asked about overlapping BIDs. Councilmember Ward supported economic opportunity and emphasized the need for monetary equity for communities affected by the war on drugs. Councilmember Kirsey questioned why a formal BID is needed rather than voluntary association; presenters explained it ensures universal participation and benefits. Chair Cate asked about new outlets – they automatically join. The motion was amended to allow the next step to go to either committee or council within 60 days; passed unanimously.
Item 2: FY2020 Citywide Grants Report
- Presenters: Ali Brenter (Senior Manager of Government Affairs) and Keith Corey (Grants Administrator). The city submitted 74 grant applications valued at over $195 million, receiving 45 awards worth nearly $86.5 million in FY2020. Awards include pandemic-related assistance totaling over $303 million since COVID-19 started. Key departments: Transportation & Stormwater, Economic Development, etc. Highlighted: La Media Road Improvements project recommended for award ($25 million). The report includes multi-year grants and applications pending. The committee asked about police department grants (included), state vs. federal funding balance (varies by issue). No motion needed; information only.
Item 3: San Diego Military Advisory Council (SDMAC) Annual Military Economic Impact Report
- Presenter: Sally Sadoff (Associate Professor, Rady School of Management, UC San Diego) and Mark Warning (SDMAC). The report estimates military direct spending at $33.6 billion in FY2020, a 5.7% increase from FY2019. Military supports over 342,000 jobs (direct and indirect). Indirect effects: 17.5 billion in contracts to 2,000+ companies, 29% to small businesses. The military's share of regional GRP increased 2.5 percentage points to about 25% due to stability during COVID-19. Spotlights: addition of two aircraft carriers (total three), each employing 3,200 sailors and bringing $767 million per carrier. Councilmembers noted the importance of military as economic stabilizer and asked about impacts on housing, child care, and climate action. Information item only.
Key Outcomes
- Item 1 (Cannabis BID): Motion by Vice Chair Montgomery Step, seconded by Councilmember Ward, to move forward with the next step (resolution of intention) to either committee or council within 60 days. Passed unanimously (Councilmember Ward absent for roll call, but present for vote; all others yes).
- Item 2 (Grants Report): No action required; report received as information.
- Item 3 (Military Impact Report): No action required; report received as information.
- The meeting also included farewell remarks for Councilmember Kirsey (last committee meeting after 8 years and ~300 hearings) and Councilmember Ward (moving to state office). Chair Cate thanked members and adjourned.
Meeting Transcript
Okay. Um let's get started. Hopefully, um Chris can start. Okay. Good to go. Yes. All right. Good afternoon. Per executive order 29-20, which suspends certain requirements of the Brown Act. Some of the council members will be participating via Zoom, and no members of the public will be in attendance at the meetings in the interest of public health and safety. In addition, this meeting is being televised and live streamed on the city's 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 special meeting of the Economic Development and Intergovernmental Relations Committee of Friday, November 2020. November 20th, 2020 to order. For the purpose of the roll call, those on the Zoom include Vice Chair Montgomery Step, Councilmember Kircy, and myself. Also on the Zoom call is Jordan Moore of the Office of the Independent Budget Analyst, Rebecca Ribsick of the Office of the Mayor, and Daphne Scogan of the Office of the City Attorney. 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 shouldn't do this when the item you wish to speak to is introduced. Please do not call in prior to that time. When you're in the queue, you'll be able to hear the meeting and all others who are providing comments. Also, please mute the volume on your TV or computer before you begin to speak. Please monitor the meeting and ensure you are calling at the appropriate time. Or meet online by going to the City Council Committee's homepage at San Diego.gov and selecting City TV Live Webcast blue button on the right-hand side of the page. A quorum is now present. We will now dispense with the approval of the committee actions. The actions before the committee for approval is for the meeting of October 28th, 2020. Do I have a motion to approve the actions? I'll move the action. Starting with Vice Chair Montgomery Step. Yes. Councilmember Kirsey. Yes. And is Councilmember Ward on yes? I don't see. And I will vote yes, so that passes unanimously with Councilmember Ward absent. 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 two minutes. Please call 619-541-6310. Conference ID 877-861 pound to be placed in the queue. I will take any callers currently on the line now, but we'll keep the line open for a minimum of three minutes to allow members of the public time to phone in. And I will unlock our first caller for non-agenda public comment, and you'll have two minutes. Hello, my name is Victoria's mom, and I am with the United Cannabis Coalition, and I am in support of creating. Hi there. I just have to stop you real quick. Um this is just for uh non-agenda public comment. So item one, which is the item you're speaking to, I believe, will be um the next item that's up. So you'll have to just monitor their meeting and ensure that you're calling in at the appropriate time. Okay, thank you.
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