Economic Development Committee Meeting - September 8, 2021
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Economic Development and Intergovernmental Relations Committee Meeting - September 8, 2021
The Economic Development and Intergovernmental Relations Committee of the San Diego City Council met virtually on September 8, 2021, at 2:00 PM. This was the second meeting of the committee's border economy theme. The committee received three presentations: on the 2021 California Baja California Border Master Plan, the Otay Mesa East Port of Entry project, and the impacts of non-essential travel restrictions at the Canadian and Mexican borders. Additionally, a progress report was given on assessing city-owned facilities for potential child care use.
Consent Calendar
- The committee unanimously approved the minutes from the July 28, 2021 meeting.
Public Comments & Testimony
- Becky Rapp (mother and public health advocate) commented on workforce development, urging the city to recognize effective programs and to push back against commercialization of marijuana, citing concerns about youth addiction and high-THC products.
- Gustavo de la Fuente (Smart Border Coalition) expressed gratitude for the committee's focus on cross-border relations, reported on a recent visit to California by Baja California Governor-Elect Marina del Pilar Ávila Olmea, and offered to brief the committee on the emerging binational vision.
- A third caller had technical difficulties and could not be heard.
Discussion Items
Progress Report: City-Owned Facilities for Child Care
- Penny Moss (Director of Real Estate and Airport Management) and Karen Johnson (Municipal Asset Services) provided an update on the assessment directed by the committee in May 2021. From a master list of approximately 1,600 city-owned properties, 121 were identified as potentially suitable for child care. Zoning has been reviewed with the Development Services Department. Site visits are underway to assess square footage, outdoor space, vacancy, and required tenant improvements. A full report with findings and recommendations is due in November 2021.
2021 California Baja California Border Master Plan
- Jose Marquez (Senior Transportation Planner, Caltrans District 11) presented the binational plan, coordinated by Caltrans and the State of Baja California with nearly 40 agencies. Key points:
- The plan updates previous versions from 2008 and 2014.
- Identified challenges include border delays costing billions in lost economic output, greenhouse gas emissions, and inadequate infrastructure.
- For the first time, a common vision and strategies for people and goods movement were established, including innovative approaches such as a reservation system for border crossings (like an airport terminal), pedestrian amenities (Wi-Fi, restrooms, phone charging), and staging areas for zero-emission commercial vehicles.
- A Regional Border Management System (RBMS) is being developed, supported by a $9.3 million USDOT grant to SANDAG.
- The plan includes nearly 200 infrastructure projects on both sides of the border, representing an investment of more than $13.5 billion over 20 years.
- Policy recommendations include managing the border as a system, expanding transit access, and exploring zero-emission trucks.
- Councilmember Ilo Rivera asked about the Desert Line rail project. Mario Orso (Caltrans/SANDAG) noted that a feasibility study is needed to assess costs and capacity, and they are working with MTS to pursue funding for such a study.
- Councilmember Rivera also asked about thermal and biometric detectors. Mr. Marquez confirmed that CBP already uses retina scans at San Ysidro, and the border master plan envisions using such technology to speed crossings. Mr. Orso added that CBP is testing non-intrusive inspection technologies, which may require dedicated space, making Otay Mesa East attractive.
- Councilmember Moreno highlighted the importance of the web-based tool with an interactive map for communicating border statistics to Washington and Mexico City.
Otay Mesa East Port of Entry Project (State Route 11)
- Maria Rodriguez Molina (Project Manager, SANDAG) presented the status of this new port of entry. Key facts:
- The region's four existing ports handled approximately 112 million individual crossings in 2019 (30% growth from 2009). San Ysidro is the busiest land border crossing in the Western Hemisphere.
- Border delays currently cost $3.4 billion in lost economic output, projected to reach $5 billion by 2025. Otay Mesa East is expected to reduce wait times at existing ports by 50% on opening day and provide an average 20-minute wait time with a toll.
- $565 million has been invested so far, funding connections (SR 11, northbound and southbound connectors). The southbound connectors from SR 125 to SR 11 and SR 905 are expected to open by the end of October 2021; the second section of SR 11 will be completed by end of year.
- The port will initially have 5 lanes for private vehicles and 5 for commercial vehicles (expandable to 20x20). It will include interchangeable lanes, 100% non-intrusive inspection scanners, and visual identification for moving vehicles.
- A memorandum of understanding was signed on June 28, 2021, with Mexican partners covering intelligent transportation systems, toll sharing, binational financial strategy, and a target opening by the end of 2024.
- Remaining funding needs: port of entry construction and some ITS infrastructure. Funding sought in 2022.
- Councilmember Ilo Rivera asked about environmental justice and air quality. Mr. Orso responded that the project aims to reduce idling times (wait times of 3-5 hours currently). Initiatives include an appointment system for freight, refrigeration hookups for trucks, and installation of air monitors to measure pollution. The goal is to create a "green lane" and promote zero-emission vehicles.
- Councilmember Campillo noted that the financial commitment from Mexico builds trust and benefits the entire binational region.
Impacts of Non-Essential Travel Restrictions at the Canadian and Mexican Borders
- Kenya Zamaripa (Executive Director of International Business Affairs, San Diego Regional Chamber of Commerce) presented:
- The pandemic and travel restrictions have caused severe economic impacts, especially in tourism and retail. 85% of surveyed companies experienced income loss.
- In San Ysidro alone, 200 businesses have closed permanently, directly attributed to the restrictions. 80% of local businesses rely on cross-border customers.
- Estimated job losses of 2,000-6,000 in 2020.
- Restrictions have increased border wait times even for essential travelers, causing cross-border employees to arrive late or miss work, disrupting supply chains (e.g., a textile company cleaning hospital linens faced staffing issues affecting healthcare).
- Cross Border Express (CBX) reported that 75,000 Mexican travelers per month are diverting to other U.S. airports, bypassing San Diego, straining CBX's financial sustainability.
- The uncertainty is alienating clients and deterring foreign direct investment.
- Mayor's Global Affairs Team (Rita Fernandez and Sarah Moga Alemani) reported that Mayor Gloria has been vocal in urging the Biden administration to lift restrictions, including letters to Secretary Mayorkas, a Zoom meeting, and a policy resolution passed by the U.S. Conference of Mayors. They emphasized that the restrictions are not based on vaccination status and are ineffective, as air travel remains unrestricted.
- Public comment: Gustavo de la Fuente (Smart Border Coalition) noted the upcoming U.S.-Mexico High-Level Economic Dialogue in Washington, D.C., and urged a gradual reopening of the border, supported by trade facilitation, preclearance, physical infrastructure, green practices, and technology implementation.
- Councilmember Moreno detailed the economic devastation: $644 million in lost sales, 1,900 jobs lost, 200 businesses closed. He criticized the restrictions as ineffective since crossings are at 75% of pre-pandemic levels by air, yet land restrictions hurt small businesses. He called for removal of the restrictions.
- Councilmember Ilo Rivera supported the advocacy, noting the significant impact on both sides of the border.
- In response to Councilmember Campillo, Ms. Zamaripa projected that the full impact may not be known until months after restrictions are lifted, as many businesses are reluctant to share data. She also highlighted the lack of transparency from the federal government on criteria for lifting restrictions, calling for clear goals (e.g., vaccination rates).
Key Outcomes
- The committee received all briefings as information items; no motions were required or taken.
- The committee expressed strong support for the border master plan, the Otay Mesa East port project, and the lifting of non-essential travel restrictions.
- The committee will reconvene on Wednesday, September 22, 2021, at 2:00 PM.
Meeting Transcript
Now, can you see my second presentation? Yes. Perfect. I'll stop sharing. Chair, please proceed. Good afternoon. Per California Executive Order N 0821, 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 meeting in the interest of 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 using the Zoom webinar platform. We appreciate your cooperation. I will go over the specifics of how to join the webinar and we'll give details on how the public can offer their public testimony. I will now call the meeting of the Economic Development and Intergovernmental Relations Committee of Wednesday, September 8th, 2021 to order. I'll now call the role. Vice Chair Kate is unable to join us. Councilmember Moreno. Present. Councilmember Elo Rivera. Present. And I am also present. Each committee member is attending virtually. Also on the virtual meeting is Jordan Moore, fiscal and policy analysts of the Office of the Independent Budget Analyst. Steve Hill, Senior Advisor from the Office of Mayor Todd Gloria, and Deputy City Attorney Kate Malcolm from the Office of the City Attorney. The public may view the meeting on public television on City TV Channel 24 for Cox Communication and Time Warner 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 hand side of the page. The committee meetings will be held virtually using the Zoom webinar platform, and members of the public can offer public comment on items by accessing the Zoom webinar online using a desktop computer, laptop, tablet, or smartphone, or by calling into the meeting using their smartphone, cellular phone, or landline. The link to join the committee meeting webinar by computer, tablet, or smartphone is listed on the agenda on the how to join by iPhone one tab. To join the Zoom webinar by telephone, you may dial 1669-254-5252. And when prompted, the webinar ID is 161-735-9340 pound. This information will be available on the agenda and will appear on the screen during the public comment period for each item. When I introduce the item you would like to comment on, please raise your hand by tapping raise your hand on your computer, tablet, or smartphone, or by pressing star nine on your telephone. You will take and be taken in the order in which your hand is raised, and you may speak only once on a particular item. When our committee consultant Sophie Barnhorst indicates it is your turn to speak, she will call you by your name as it appears on the webinar attendee list, or she will read the last four digits of your phone number if you have called into the meeting. This is how you will know it is your turn to speak. If you have joined the webinar by computer, tablet, or smartphone, you will receive a pop-up notice to select to unmute your device and press uh star six to unmute yourself if you're on a cell phone or landline. I'll review the instructions briefly as we go through each item. Please wait until the item you wish to speak has been called before raising your hand. And if you raise your hand during a non-comment period, your hand will be lowered. And you're announced as the next speaker, please unmute yourself and then offer your comments. The quorum is now present, so we will dispense with the approval of committee actions. Those of which be before you for approval is the meeting of July 28th, 2021. Do I have a motion to approve the actions? So moved. I have a motion. I have a motion by Councilmember Elo Rivera and a second by Council Member Moreno. We'll now take questions, comments, and registering your vote. Starting with Councilmember Moreno. No questions or comments. I vote yes. Thank you. Councilmember Ilo Rivera.
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