San Diego Economic Development & Intergovernmental Relations Committee Meeting - July 13, 2022
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San Diego Economic Development & Intergovernmental Relations Committee Meeting - July 13, 2022
On July 13, 2022, the Economic Development and Intergovernmental Relations Committee of the San Diego City Council met to discuss and act on several items, including federal affairs updates, utility easements, child care facility expansions, and a cannabis equity assessment. The meeting was chaired by Councilmember Campio, with Vice Chair Kate, Councilmember Campbell, and Council President Pro Tem Montgomery Step present. The meeting was conducted via hybrid format due to the COVID-19 state of emergency.
Consent Calendar
- Approved the first amendment to the consulting agreement with Mickey Iwasaki for the Children's Park Public Art Project.
- Approved the first amendment to the consulting agreement with Janelle Iglesias for the Pacific Highlands Ranch Branch Library Public Art Project.
- Public comment was received from one speaker (Joyce Sanyata) expressing strong support for both projects. The consent agenda passed unanimously.
Public Comments & Testimony
- Federal Affairs Update (Item 8): Joyce Sanyata (District 3) praised the presentation and highlighted the importance of the Tijuana River Valley cleanup, water quality, and transborder pollution.
- Child Care Facilities RFI (Item 6): Multiple speakers expressed support:
- Armando Sepulveda II (San Diego Regional Chamber of Commerce) emphasized the need for child care to support working families.
- Aaron Hogaboom (San Diego for Every Child / Children First Collective) commended the committee's swift action and urged continued investment.
- Jessica Frazier Dolan (UCUC Preschool / San Diego Reggio Roundtable) shared personal challenges as a small business owner and stressed the need for affordable care.
- Courtney Baltiski (YMCA Childcare Resource Service) called for equitable access and local momentum.
- Serena Lynn (Educational Enrichment Systems) thanked the committee for prioritizing children and families.
- Cannabis Equity Assessment (Item 7): Speakers included both supporters and opponents:
- Supporters: Armand King (Paving Great Futures, San Diego Black Cannabis Group) praised the process and urged consumption lounges and help for legacy market participants. James Johnson shared a personal story of his daughter's benefit from medical cannabis. Monique Ferguson thanked the city for opening opportunities. Miklos Campuzano (Cerec) supported the program and offered assistance. Emma Anderson (Millennium Hippie) thanked staff for transparency. Francine Maxwell (Southeastern San Diego resident) appreciated the report but criticized consultant selection.
- Opponents: Peggy Walker argued that the report ignored community members opposed to more drug businesses and cited Compton's rejection of legalization. Barbara Gordon emphasized harms to youth and substance abuse. Carol Green raised concerns about density, consumption lounges, and DUI risks. Kelly McCormick highlighted financial risks for small dispensaries and taxpayer costs. Judy Strang (San Deguido Alliance) shared family impact and asked for hearings of opposing voices. Another caller (anonymous) argued that marijuana businesses harm neighborhoods and health.
Federal Affairs Update (Item 8)
- Presentation by Walt Bishop (Mayor's Office), Leslie Polner, and Lori Henninger (Holland & Knight). Key points:
- The city secured $2.4 million in community project funding from the FY22 federal budget—the first earmarks in over a decade.
- The bipartisan Infrastructure Law provides guaranteed funding over five years for roads, transit, water, energy, etc.
- The Safer Communities Act offers $750 million for red flag laws, $800 million for mental health services, and $300 million for school safety.
- The city has applied for a RAISE grant for the Streamview Drive safety project and is working on applications for Safe Streets for All and Reconnecting Communities programs.
- The Tijuana River Valley cleanup received presidential budget support and language in appropriations bills.
- FY23 appropriations include nine city community project requests in the House bill and six in the Senate bill.
- Discussion on midterm elections and challenges in passing legislation.
- Councilmember Campbell thanked presenters. Council President Pro Tem Montgomery Step inquired about the Streamview Drive grant timeline; staff indicated a decision expected August 2022. She also asked about the Safer Communities Act funding mechanisms, noting it will be competitive grants through DOJ and state partnerships. Chair Campio asked about child care funding through NDAA; staff noted Congresswoman Jacobs' advocacy and pending amendments.
Utility Easement at NTC Liberty Station (Item 3)
- Michael Wong (Economic Development Department) presented a request to grant an underground utility easement to SDG&E for gas and utility infrastructure necessary for redevelopment of the hotel site at NTC Liberty Station. The easement covers 14,449 square feet, with no monetary consideration, as it was part of the original development agreement. The action is required to comply with city laws regarding land transfers.
- Public comment: None.
- Vote: Unanimous approval.
Lease Amendments with Neighborhood House Association (Items 4 & 5)
- Michael Wong presented two lease amendments:
- 808 West Cedar (Item 4): Third amendment to extend the Head Start program lease for one year to August 2023, with an option for an additional year at city discretion. Estimated additional revenue of $217,000 for the Low Income Housing Asset Fund. The site is planned for affordable housing development, with discussions expected by fall 2022.
- 475 West Broadway (Item 5): Second amendment to extend the lease for eight months to August 31, 2023, with an option for up to 24 months. Estimated additional revenue of $137,000. Both sites are former redevelopment agency assets and must be used for affordable housing under the city's Affordable Housing Master Plan.
- Public comment: None.
- Councilmember Campbell noted the importance of co-locating child care at affordable housing sites. Council President Pro Tem Montgomery Step moved both items, with second by Campbell. Both votes unanimous.
Child Care Facilities Request for Information (Item 6)
- Lucy Contreras (Deputy Director of Real Estate) presented an update. Key points:
- COVID-19 exacerbated child care shortages: 40% of San Diego families with children have both parents working; over 190,000 children under 12 lack a stay-at-home parent and cannot secure care. Many neighborhoods are child care deserts.
- The city conducted a facilities assessment identifying seven potential sites, but four are on parks and recreation land not currently permitted for child care under municipal code. A ballot measure to allow such uses is being considered by City Council on June 25, 2022 (note: the date in the transcript appears to be June 25, but the meeting is July 13; likely a reference to a prior or future action; the ballot measure would be on the November 2022 ballot).
- The Request for Information (RFI) will be issued on July 18, 2022, and close on September 16, 2022, to gather information on child care facility requirements to inform a future Request for Proposals (RFP) in 2023.
- Public comment: All speakers supported the initiative.
- Councilmember Kate inquired about outreach to in-home providers; staff confirmed they will use multiple channels. Councilmember Campbell raised liability questions; staff noted that will be addressed in the RFP with the City Attorney's office. Chair Campio emphasized the need for expeditious action.
Cannabis Equity Assessment Report (Item 7)
- Laura Gates (Deputy Director, Cannabis Business Division) and Kim Desmond (Chief of Race and Equity) presented the draft Cannabis Equity Assessment and preliminary recommendations. Key findings:
- From 2015-2022, Black/African American and Hispanic/Latino individuals accounted for 50% of cannabis-related arrests despite being 29% of the population. Youth under 19 were disproportionately arrested; 40% of youth arrests were Hispanic/Latino.
- 68% of cannabis business license holders are white; 87% are male.
- Barriers to entry: access to capital (80% of survey respondents), navigating application process, business knowledge, prior convictions, zoning.
- 80% of the cannabis market is illicit (legacy market).
- Recommendations include short-term (task force, equity applicant definition, revolving loan fund, delivery amnesty, limiting background checks), medium-term (36 additional equity-only licenses, city-owned incubator space, fee waivers, mentorship), and long-term (consumption lounges, cannabis tourism, data collection).
- The draft report is available for public comment until August 8, 2022. The plan is to present to the Planning Commission on August 18, return to this committee as an action item on September 7, and go to City Council on September 22, with a state grant application deadline of October 25, 2022.
- Discussion: Council President Pro Tem Montgomery Step expressed concern about waiting for a task force to define equity applicant criteria and urged staff to bring forward a proposal in September. Staff indicated they can do so. Vice Chair Kate raised concerns about policy implications of recommendations, particularly additional permits and land use impacts, and noted the need for thorough analysis. Chair Campio praised the work and stressed the importance of meeting state deadlines to secure up to $3 million in state funding. The item was informational; no vote taken.
Key Outcomes
- Consent Agenda: Approved unanimously.
- Item 3 (SDG&E Easement): Approved unanimously.
- Item 4 (808 West Cedar Lease Amendment): Approved unanimously.
- Item 5 (475 West Broadway Lease Amendment): Approved unanimously.
- Item 6 (Child Care RFI): The committee received the update; no action required.
- Item 7 (Cannabis Equity Assessment): Informational; staff directed to return with a proposed equity applicant definition in September.
- Next Meeting: Scheduled for September 7, 2022, at 2:00 p.m.
Meeting Transcript
Committee meetings will be conducted pursuant to the provisions of California Government Code 54953e added by Assembly Bill 361, which allows the city to use teleconferencing and to provide the public an opportunity to address the city council via call-in option or an internet based service option during a proclaimed state of emergency. While the public is allowed to attend the meetings in person, we encourage you to maintain six feet of social distance as well as follow California Mass Guidelines where masks are strongly recommended. In addition to being able to attend in person, this meeting is being televised and live streamed on the city's website. The committee liaison will continue to make arrangements for the public to comment using the Zoom webinar platform. Additionally, members of the public who wish to provide testimony via call-in or internet based service option must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted, whichever occurs first. This will allow us to have better management between the two platforms and ensure we are able to conduct our city business. We appreciate the public's cooperation. I will now call the meeting of the Economic Development and Intergovernmental Relations Committee of Wednesday, July 13th, 2022 to order. I'll now call the roll. Vice Chair Kate. Here. Councilmember Campbell. Here. Council President Pro Tem Montgomery Step. And I am also present. We will have uh voice votes today. Also in chambers are Jordan Moore, Fiscal and Policy Analysts of the Office of the Independent Budget Analyst, Steve Hill, Senior Advisor from the Office of Mayor Gloria, Deputy City Attorney Daphne Scogan from the off of the Office of the City Attorney. Maybe not. Sorry about this group. If you're in person, please complete a speaker slip located in the entrance of chambers and place it in the box indicated at the speaker's lectern in the front of the room. Please do so in a timely manner to ensure proper meeting management. Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link, which is listed online in the preamble language of the agenda or on the city's webpage. The link to join the committee meeting webinar by computer, tablet or smartphone is listed in the agenda. To join by telephone, please dial 1669-254-5252. And when prompted, the webinar ID is 161-735-9340 pound. This information is available on the agenda and will appear on the screen during public comment period for each agenda item. Please note that if you're watching on City TV Channel 24 or online, there may be a delay. Please participate via the audio on your phone and mute your TV and computer when it is your turn to speak. When I introduce the item you would like to comment on, please raise your hand by either tapping the raise your hand button on your computer, tablet, or smartphone, or by pressing star nine on your phone. You will be taken in the order in which you raise your hand. You may only speak once per particular item. When our committee consultant, Sophie Barnhorse indicates it is your turn to speak. She will call you by your name as it appears on the Zoom webinar attendee list or read out the last four digits of your phone number. If you've called into the meeting, this is how you'll know it's your turn to speak. If you're in person, please come up to the reserve seats at the front of the room when your name is called and be prepared to come up to the lecture in the order called. If you have joined the webinar by computer, smartphone, or tablet, you'll notice a pop-up notice to select to unmute your device. You can click star six to unmute yourself. We'll review the instructions briefly again when the public comment period for each item is open. When you're announced as the next speaker, please unmute yourself and offer your comments and mute the volume of your TV and computer before you begin to speak. The quorum is now present, so we will move to dispensing with the approval of committee actions for the meeting of June 15th, 2022. The public comment period for this item is open. If you're in person, please be sure to have your speaker slip submitted. Members of the public who wish to provide testimony via call-in or internet-based service option, may do so. If you have already joined the Zoom webinar by phone, you can raise your hand to speak. Again, the numbers 1669-254-5252, and the ID is 161-735-9340 pound. Sparnhorst will announce when it is your turn to speak. We do not have anyone in Council Chambers who submitted a speaker slip, nor anyone with their hands raised on the virtual queue. So that concludes public comment on this item. We will now move to uh approval of the committee actions of Wednesday, June 15, 2022. I will make the motion.
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