Economic Development & Intergovernmental Relations Committee Meeting – April 14, 2021

The Economic Development and Intergovernmental Relations Committee met virtually on April 14, 2021, to discuss multiple items including a proposed amendment to remove a public restroom requirement from a downtown development, approval of FY22 Business Improvement District budgets, amendments to affordable housing agreements, and an informational update from the Small Business Advisory Board. The committee took action on consent and discussion items, with several public comments addressing specific agenda items.

Consent Calendar

• Item 2 – Second Amendment to Software License and Maintenance Agreement with Open Counter Enterprises Inc.: Approved unanimously (4-0). Councilmember Ilo Rivera requested that the forthcoming RFP for San Diego's business portal include language services beyond English and Spanish to improve access for non-English speakers.

Public Comments & Testimony

• Non-Agenda Public Comments:

  • Kathleen Lippett expressed concern about a growing monopoly in marijuana business permits, urging the committee to review the concentration of applicants and permittees.
  • Ben Nichols (Executive Director, Hillcrest Business Association; President, San Diego Small Business Alliance) advocated for full funding of the Economic Development Department in the FY22 budget, noting its critical role during the pandemic.
  • Jim Schneider (Executive Director, College Area Business District; BID Alliance) supported full funding of the Economic Development Department and highlighted the Storefront Improvement Program as vital for COVID-19 recovery.
  • Sunny Lee (Executive Director, Discover Pacific Beach; member of the Business Improvement District) praised the Economic Development Department's pandemic response, including outdoor dining expansion and the Small Business Relief Fund, which assisted over 10,500 applicants and awarded nearly $20 million.

• Item 1 – First Amendment to Park and Market Disposition and Development Agreement (Portland Loo):

  • Michelle Woodson (Executive Director, Think Dignity) opposed removing the public restroom requirement, calling it inhumane and a threat to public health during a pandemic.
  • Jerry Hall (East Village resident) urged rejection, citing the 2017 hepatitis A outbreak that killed 20 San Diegans and noting the developer has not yet opened the required park and plaza.
  • Genevieve Jones Wright (Executive Director, MOGO) opposed the amendment, highlighting the lack of hygiene resources for unhoused residents and comparing San Diego unfavorably to Vallejo’s recent investment in restroom facilities.
  • Christine Lopez (District 6 resident) argued that removing restrooms criminalizes homelessness and perpetuates the cycle of homelessness.
  • Janui (local organizer and academic) called the issue a no-brainer, emphasizing basic human dignity and public health.

• Item 3 – FY22 Business Improvement District Budgets:

  • Rebecca Ribsick (Downtown San Diego Partnership) supported the City Center BID budget, noting BIDs provided vital public health information and outdoor dining activations during the pandemic.
  • Ben Nichols (Hillcrest Business Association) highlighted that for every dollar the city invests, the Hillcrest BID returns over $5 in services and programs.

• Item 6 – Small Business Advisory Board Update:

  • Austin Evans (Board member) offered brief remarks in support of the board’s presentation.

Discussion Items

• Item 1 – First Amendment to Park and Market Disposition and Development Agreement (removal of Portland Loo requirement):

  • Staff requested to withdraw the item for further work. The chair allowed public comment before withdrawal. After public testimony, committee members expressed strong opposition to the amendment. Chair Campillo noted the Portland loo was to provide 24/7 restroom access for homeless individuals. Councilmember Moreno stated she could not support the amendment without equivalent compensation to the city, and suggested the developer should provide an interim restroom until a permanent one opens in East Village Green (2023). Councilmember Ilo Rivera echoed concerns about basic dignity, health risks, and ensuring the city gets a fair deal. The item was withdrawn without a vote; it may return at a future meeting.

• Item 3 – FY22 Business Improvement District Budgets:

  • Staff presented the annual appropriation process for 18 BIDs, with an estimated $1.4 million in assessments collected from ~12,000 businesses. Revenue during COVID-19 months initially dropped 35.9% but rebounded 15.9% in subsequent months. The committee approved the recommendation to council unanimously.

• Item 4 – Amendment to Agreement Affecting Real Property – Hacienda Townhomes:

  • Staff requested approval to amend the affordability covenants to align with TCAC rent levels, allowing up to 5% annual rent increases (an additional $32–$64/month) to address $400,000 in critical immediate repairs and position the 52-unit project for comprehensive renovation. Councilmembers raised concerns about the impact on tenants during a pandemic. The developer noted 19 project-based vouchers had been secured to mitigate rent burden. The amendment passed unanimously.

• Item 5 – Owner Participation Agreement – Cedar and Kettner Senior Apartments:

  • Staff presented a $4.48 million city loan (from Low/Moderate Income Housing Asset Fund) to Bridge Housing for construction of a 64-unit senior affordable housing project in Little Italy. The project is shovel-ready; 63 units will be restricted to low- and very low-income seniors for 55 years. The committee approved the recommendation to council unanimously.

• Item 6 – Small Business Advisory Board Update (Informational):

  • Board members Michelle Gray (Chair), Tristan Farnum, and Jim Schneider presented the board’s mission, recent activities, and recommendations. They advocated for full funding of the Economic Development Department in the FY22 budget (particularly the Storefront Improvement Program), improved data collection on business demographics (e.g., using business tax certificates), and highlighted access-to-capital resources. The board will begin submitting formal written recommendations to the mayor and council. Committee members thanked the board and encouraged ongoing collaboration.

Key Outcomes

• Item 2 approved unanimously (4-0).
• Item 1 was withdrawn by staff after public comment; no vote taken.
• Item 3 (FY22 BID budgets) approved unanimously with a recommendation to city council.
• Item 4 (Hacienda Townhomes amendment) approved unanimously.
• Item 5 (Cedar and Kettner Senior Apartments OPA) approved unanimously.
• Item 6 was informational; no action taken.
• The committee adjourned to the next meeting on Wednesday, May 26, 2021, at 2:00 PM.