Economic Development & Intergovernmental Relations Committee Meeting – March 9, 2022
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Economic Development & Intergovernmental Relations Committee Meeting – March 9, 2022
The Economic Development and Intergovernmental Relations Committee met virtually on March 9, 2022, to consider three agenda items: a consent agenda item for a public art project, a major disposition and development agreement for the East Village Quarter (Tailgate Park) with the Padres Development Team, and an informational update on the city's economic development strategy. The committee also heard non-agenda public comments on the fentanyl crisis and cannabis issues.
Consent Calendar
- First Amendment to Consulting Agreement with Christian Moeller Studio, LLC for Purewater North City Public Art Project: The committee unanimously approved the consent agenda item without discussion or public comment.
Public Comments & Testimony
- Non-Agenda Public Comments:
- Peggy Walker (youth substance abuse prevention, 25 years) cited alarming data from the District Attorney: fentanyl is the number one killer of those 18–34 in the U.S.; overdose deaths in San Diego rose from 152 in 2019 to 840 in 2021. She urged the committee to stimulate intergovernmental discussion on the border drug crisis.
- Becky Rapp (parent, public health educator) expressed concerns about marijuana exports to Mexico, citing a Washington Post report that 55% of customers at a local dispensary are Mexican nationals. She opposed producing more cannabis.
- A caller (phone number ending 7234) criticized the city's reduction of the marijuana cultivation tax rate from 8% to 2%, calling it preferential treatment, and urged compliance policies so the city receives promised taxes to address health and welfare damages, especially for youth.
- Public Comment on Item 2 (East Village Quarter DDA): Seven speakers supported the project:
- Matthew Labor Gonzalez (San Diego Building and Construction Trades Council) emphasized local hire, good wages, benefits, and a project labor agreement.
- Keith Jones (Ace Parking) applauded the transparent process and urged approval.
- Mark Ballmert (San Diego Military Advisory Council) supported the housing component, particularly for the military community.
- Jorge Villa Montes (Carpenters Union Local 619) highlighted jobs and parking replacement, and favored approval.
- Stephanie Benvenuto (San Diego Regional Chamber of Commerce) praised the project for homes and jobs.
- Rebecca Ribsick (Downtown San Diego Partnership) noted it would bring the largest concentration of affordable housing downtown and transform a parking lot into a vibrant community.
- Jesse Garcia (San Diego Carpenters Union Local 619) supported the project labor agreement and fair wages.
- Francisco Peña (carpenter for 30 years) favored the 15% on-site affordable housing, aligning with Mayor Gloria's 'Homes for All of Us'.
- Joy Sanyata (District 3) raised three questions about redevelopment law, the Park Boulevard at-grade project, and a blighted pocket park, but expressed support.
- Public Comment on Item 3 (Economic Development Strategy): Three speakers:
- Joy Sanyata praised the staff report and highlighted the word 'inclusive' in the RFP.
- Stephanie Benvenuto (Chamber) emphasized the need for inclusive growth given high costs of housing and childcare.
- Rebecca Ribsick (Downtown Partnership) commended the department's past work and looked forward to the new strategy.
Discussion Items
- East Village Quarter Tailgate Park Disposition and Development Agreement:
- Christina Bibler (Director of Economic Development) presented the project: 5.25 acres downtown, purchased from former redevelopment agency in 2016. After a competitive process, the Padres Development Team (Padres, Tishman Speyer, Ascendant Capital) was selected. The $35.1 million purchase price exceeds the $34 million appraised fair market value. The project includes 1,800 housing units (15% affordable: 10% at 60% AMI, 5% at 150% AMI), 1,200 parking spaces, 50,000 sq ft retail/office, and a nearly 2-acre public park. Phase 1 includes 900 units and the parking garage; completion by December 2035. The developer will enter a project labor agreement.
- Eric Gruppner (Padres CEO) noted the project has been envisioned since Prop C and respects parking requirements for Petco Park.
- Paul DiMartini (Tishman Speyer) described guiding principles, fault lines reducing developable area by over 30%, and sustainability commitments including renewable energy.
- Baku Patel (IBA) noted no concerns, emphasizing the prescriptive redevelopment dissolution process.
- Committee members expressed strong support. Council President Pro Tem Montgomery Stepp clarified affordable housing percentages and confirmed that affordable units would be front-loaded in Phase 1. Chair Campillo asked about performance remedies and green building; the team confirmed accountability measures and sustainability features (Padres' solar array and renewable energy commitment). The chair also urged inclusion of childcare in ground-floor space.
- Economic Development Strategy Update (Informational):
- Christina Bibler reviewed the history of the city's economic development strategy (last updated in 2016) and highlighted accomplishments: Tech Hire program (1,415 opportunity youth served), reinvestment initiatives ($112 million for affordable housing, workforce, etc.), nonprofit academy, Connect All business accelerator, Library Next STEM program, Metro Connect export program (95% export growth, $95 million increase), and the San Diego Promise Zone. A new strategy will be developed via an RFP in March 2022, with community engagement through 2022 and council approval targeted for January 2023. The strategy will focus on inclusive growth, post-pandemic recovery, and integration with new plans.
- Councilmember Montgomery Stepp requested attention to underserved neighborhoods like her district, citing the need for revitalization and the Black Arts and Culture District.
- Councilmember Campbell praised the department's work and looked forward to equitable, globally competitive recovery.
- Chair Campillo emphasized the importance of workforce policies, specifically parental leave (currently 4 weeks), which she plans to address as a committee priority in 2022.
Key Outcomes
- Consent Agenda: Approved unanimously (4–0).
- East Village Quarter Tailgate Park DDA: Moved to full City Council with a unanimous vote (4–0). The committee approved staff's recommendation to forward the item. The purchase price is $35.1 million, with the city's net share approximately $6 million. The developer must close by December 2022 and complete all phases by December 2035. Annual progress reports are required. The project will include a project labor agreement.
- Economic Development Strategy: No vote required (informational). The committee endorsed the plan to issue an RFP in March 2022 for a consultant to draft a new strategy, with council approval expected in January 2023. Chair Campillo indicated her intent to involve the committee in the process.
Meeting Transcript
Good afternoon. And welcome to the Economic Development and Intergovernmental Relations Committee meeting of March 9th, 2022. Good afternoon. And per California Government Code Section 54953G added by Assembly Bill 361, which allows the city to use teleconferencing and to provide a the public an opportunity to address the City Council Committee via call-in option or an internet based service option. 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 committee A lay is on has made arrangements for the public to comment using the Zoom webinar platform. We appreciate the public's cooperation. And I will now go over the specifics of how to join the webinar and give details of how the public can offer their public testimony. I now call the meeting of the economic development intergovernmental relations committee of Wednesday, March 9th, 2022 to order. Calling the roll, Vice Chair Chris Kate. Here. Councilmember Dr. Jennifer Campbell. Here. And Councilmember Monica Montgomery Step. And I am also present. Also joining us is Baku Patel, Fiscal and Policy Analyst from the Office of the Independent Budget Analysts in Council Chambers. Stephen Hill, Senior Advisor from the Office of Mayor Todd Gloria, Deputy City Attorney Kate Malcolm from the Office of the City Attorney are also attending virtually. And the public may view the meeting on public television on City TV, Channel 24 for Cox Communications and Spectrum, or Channel 99 for ATT, or view the meeting online by going to the City Council Committee's homepage at Sandiego.gov, selecting the City TV Live Webcast button on the right hand side of the page. The committee meetings are held virtually via the Zoom webinar platform, and members of the public can offer their comments on items by accessing the Zoom webinar platform via desktop, computer, laptop, tablet, 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 in the agenda. To join the Zoom webinar by telephone, dial 1669-254-5252. And when prompted, the webinar ID is 161-735-9340 pound. This information is available on the agenda and appears 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 either the raise your hand button on the computer or tablet or smartphone or by pressing star nine on your phone. You'll be taken in the order in which you raise your hand. 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 web uh on the webinar attendee list, or she will read the last four digits of your phone number if you have called into the meeting, and this is how you will know it is your turn to speak. If you've joined the webinar by computer, tablet, or smartphone, you'll receive a pop-up notice to select to unmute your device. And if you have called into the meeting by cell phone or landline, you'll then press star six on your phone to unmute yourself. We will review these instructions briefly during the public comment period for each item. Please wait until the item you wish to speak to has been called before raising your hand to speak. If you raise your hand during the non-public comment period, your hand will be lowered. When you are announced as the next speaker, unmute yourself and offer your comments, and please mute the volume on your TV or computer before you begin to speak. A quorum now being present, we will dispense with the approval of the committee actions. The actions before you for approval are from the meeting of February 9th, 2022. The public comment period for this item is now open. You may raise your hand on the Zoom webinar platform or via your phone. If you're watching on City TV, again, the number is 669-2545252. And when prompted, put the webinar ID 161-735-9340 pound. We have one member of the public with their hand raised to speak to the committee actions. Um Becky Rapp, I'll allow you to speak. Okay, that will be coming up uh speak on non-agenda. Okay, all right. Thank you. Thank you. That concludes uh public comment on this item. Thank you. Uh I'll entertain a motion to approve the actions. I see a chair.
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