Economic Development & Intergovernmental Relations Committee Meeting - November 17, 2021
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Economic Development and Intergovernmental Relations Committee Meeting - November 17, 2021
The Economic Development and Intergovernmental Relations Committee met virtually on November 17, 2021, with Chair Campillo presiding, Vice Chair Kate, Councilmember Moreno, and Councilmember Ilo Rivera present. The meeting included informational updates on the San Diego Promise Zone, Port of San Diego, San Diego International Airport, and the first round of the Affordable Housing Notice of Funding Availability (NOFA), as well as a vote on a proposed reduction to the cannabis production facility tax rate. Public comment was heard on several items.
Consent Calendar
- Approval of October 20, 2021 Committee Actions: Motion by Councilmember Ilo Rivera, second by Vice Chair Kate. Passed unanimously (4-0).
Public Comments & Testimony
- Promise Zone Update: Wanda Rogers (Jacobs Center) asked how to be recognized as a partner; Kathleen Leppett criticized the city for prioritizing marijuana businesses over community needs.
- Cannabis Tax Reduction: 21 speakers total. Supporters included Summer Bales (San Diego Regional Chamber of Commerce), Spencer Andrews (March and Ash), Rob Howard (Columbia Care), Roger Tower (cannabis real estate consultant), Chris Boudreau (Cannabis Chamber of Commerce), Terry Best (Americans for Safe Access), Miklos Campuzano (CREC), Lisa Cohen (SDRC Cannabis 21 Plus), Adam Hijazi (Long Beach Collective Association), Lance Rogers (attorney), Rocky Goyal (retailer), David Dalal (Tory Holistics), Phil Rath (United Medical Marijuana Coalition), Aaron Magagana (High Key Cannabis), Brittany Biesterfeld (Austin Legal Group), Daniel (operator), and Virginia Casey (Blue Water Government Affairs). Opponents included Kathleen Lippitt, Kelly McCormick, Judy Strang (parent advocate), and Barbara Gordon.
- Port of San Diego Update: Lori Saldania urged electrification (cold ironing) and public restrooms.
- Airport Update: Lori Saldania asked about women-owned business contracting opportunities.
- Affordable Housing NOFA: Lori Saldania questioned why the city is not more aggressively pursuing Project Homekey funds.
Discussion Items
- San Diego Promise Zone Update: Presented by C O Mali Crespo (Promise Zone Program Manager). The federal designation covers 6.4 square miles in Barrio Logan, Logan Heights, Southeastern San Diego, and parts of East Village. Key achievements include expedited permitting, a new data website, and nearly $50 million in grants to partners. A five-year partnership with California Coast Credit Union provides $60,000 annually for small grants. Councilmembers discussed interaction with Opportunity Zones, federal administration changes, and capacity building for underserved neighborhoods.
- Cannabis Tax Reduction Proposal: Presented by Justine Murray (Chief of Policy, District 7). Proposed reducing the cannabis production facility (CPF) tax from 8% to 2% to improve competitiveness, citing that only 19 of 40 permitted CPFs operate. The Office of the Independent Budget Analyst (Jordan Moore) requested additional fiscal impact information before full council consideration. After public testimony and committee discussion, a motion to recommend the ordinance to the full council passed unanimously (4-0), with the request for further IBA analysis.
- Port of San Diego Update: Presented by Board Chair Michael Zuquet and Commissioner Rafael Castellanos. Highlights: about $100 million in federal stimulus allocated to deferred maintenance and electrification projects (including a $14 million electric mobile harbor crane at 10th Avenue Marine Terminal); the new Maritime Clean Air Strategy aiming for 100% electrification of cargo truck trips by 2030; Harbor Drive 2.0 corridor improvements; recovery of cruise business (100 calls scheduled); and the new Bayside Performance Park. Councilmember Moreno commended the clean air strategy for its environmental justice focus. Councilmembers asked about Harbor Island development and Seaport Village redevelopment timelines.
- San Diego International Airport Update: Presented by CEO Kim Becker and Board Chair Gil Cabrera. Passenger volume recovered to 75% of pre-COVID levels, with 17 new routes added in 2021. The new Terminal 1 project (30 gates, 5,600 parking spaces) began construction November 1, 2021, with Phase 1 opening targeted for Q2 2025. Economic impact: $12 billion regionally; 15,000-20,000 construction jobs. Concession outreach will prioritize local, small, and veteran-owned businesses. Councilmembers discussed international route expansion, concession timeline, and sustainability.
- Affordable Housing NOFA Round One Update: Presented by Monica Hardman (Deputy Director, Economic Development). Seven projects recommended for funding, creating or rehabbing 662 units across Council Districts 3, 5, 8, and 9. Funding sources: Low Mod Income Housing Asset Fund, Permanent Local Housing Allocation (PLHA), and CDBG. The next NOFA round (Q1 2022) will have $15-20 million. Councilmember Ilo Rivera requested that future criteria include affirmatively furthering fair housing (de-segregation).
Key Outcomes
- Approved consent calendar (unanimous).
- Voted unanimously to recommend the cannabis tax reduction ordinance (8% to 2% for CPFs) to the full City Council, with a request for additional fiscal analysis from the IBA.
- Received informational updates on the Promise Zone, Port of San Diego, Airport, and Affordable Housing NOFA; no votes required.
- Meeting adjourned; next meeting tentatively scheduled for Wednesday, January 12, 2022, at 2:00 PM.
Meeting Transcript
Sophie. Yes, Alive. Can you please send Travis Cleveland? A panelist invitation for right now. Is that you? Um, sure. Oh, is that you or Mary Ann? I'm sorry. It is Mary Ann. Okay. Thank you. Thank you. Chair Campio, we are still missing uh Councilmember Moreno. Would you like to go ahead and open to the public or would you like to wait? Let's wait 60 more seconds. Very good. Everyone, please curtail your comments as the meeting is going live on City TV as we wait another 45 seconds. Thank you. Yes. Good afternoon. Per California government code section 54953G, added by Assembly Bill 361, which allows the city to use teleconferencing to provide the public an opportunity to address the City Council Committee via call-in option or internet-based service option. The committee members will be participating via Zoom. 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. The committee liaison has made arrangements for the public to comment using the Zoom webinar platform. We appreciate the public's 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. Vice Chair Kate. Here. Councilmember Moreno. Present. Councilmember Elo Rivera. And I am present as well. Each committee member is visiting virtually. Also on the virtual meeting is Jordan Moore, Fiscal and Policy Analyst in 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 Communications and Spectrum or Channel 99 on ATT Uverse. Or view the meeting online by going to the City Council Committee's homepage at Sandiego.gov and selecting the City TV live webcast 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 a smartphone, cellular phone, or landline. The link to join the committee meeting webinar by computer, tablet, or smartphone is listed on the agenda on how to join by iPhone one tap. To join the Zoom webinar by telephone, you may dial 1669-254-5252. And when prompted, input webinar ID 161-735-9340 pound. This information will be available on the agenda, will appear on the screen during the public comment period for each item. When I introduce the item you would like to comment on, you will raise your hand by tapping either the raise your hand button on this computer tablet or smartphone or by pressing star nine on your phone. You'll be taking an order in which you raise your hand and you may only speak once per particular item. When our committee consultant, Sophie Barnhorst indicates it is your turn to speak. She will call on 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've 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'll receive a pop-up notice to select to unmute your device. If you have called into the meeting by cell phone or landline, you will press star six on your phone to unmute yourself.
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