San Diego Economic Development Committee Meeting March 8, 2023
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San Diego Economic Development Committee Meeting March 8, 2023
The Economic Development and Intergovernmental Relations Committee met on March 8, 2023, to discuss a port commissioner update, a digital wayfinding kiosk agreement, business improvement district budgets, and a cannabis equity program update. The committee approved the consent calendar and unanimously supported the wayfinding kiosk agreement and BID budgets, while the cannabis item was informational only.
Consent Calendar
- Approved the committee actions of February 8, 2023, unanimously.
Public Comments & Testimony
- Gary Smith (San Diego Downtown Residents Group) urged the committee to appoint a representative to the North County Transit Board, noting a proposed Coaster station that would require 22 additional daily train trips and over 90 minutes of additional crossing gate closures south of Broadway.
- Cecil Carter (public comment) expressed support for cannabis consumption lounges, citing economic benefits and reduced public consumption.
- Sonia (caller) requested the committee invite the former Imperial Beach mayor to speak about pollution in the Tijuana River estuary.
- Austin Evans (Chair, Small Business Advisory Board) gave a heads up on budget priorities letter sent to offices.
- Diane Grace (parent and grandparent) urged focus on children and youth, expressing concern about marijuana businesses taking precedence over young people.
- Anthony Avalos (fourth-generation San Diegan, survivor of the war on drugs) commended the city's efforts to identify harm caused by the war on drugs.
- Blair Beekman urged careful consideration of smart streetlight technology and surveillance, calling for community input through the Privacy Advisory Board.
- Judy Strang emphasized the importance of equity for children and praised the committee's workforce development priorities.
- Mark Wilcox (father, grandfather, businessman) supported youth employment training but urged keeping the 1,000-foot distance from marijuana businesses to protect children.
Discussion Items
Item 3: Report from Port Commissioners
- Port Commissioners Rafael Castellanos, Danielle Moore, and Michael Zuquette presented an update on port initiatives. Key points included:
- Blue Economy initiatives (aquaculture, underwater robotics, seaweed farming, oyster farming) with nine demonstration projects.
- Upgrades to Cesar Chavez Park ($650,000 turf replacement, 20 shade trees).
- Freedom Park on Navy Pier (over $60 million, expected completion by 2028, with $50 million contribution from the Midway Museum).
- Cruise ship recovery: 100 visits in 2022, trending above pre-pandemic levels of 140+ calls, each worth about $2 million to the local economy.
- Installation of a second shore power system for cruise ships.
- Central Embarcadero redevelopment (Seaport San Diego) with environmental review underway.
- Top Golf proposal on East Harbor Island undergoing environmental review.
- Maritime Clean Air Strategy: goal of 100% zero-emission cargo truck trips by 2030 (exceeding state goals by 5 years), 40% by 2026; first two all-electric cargo cranes in North America at 10th Avenue Marine Terminal; first all-electric tugboat in North America.
- Port partnership with U.S. Navy for low-carbon fuel standard credits.
- Harbor Drive 2.0 project to separate truck traffic from regular traffic in Barrio Logan.
- Port-side air quality relief program (PAIR) providing air monitors and purifiers to residents.
- Diversity, equity, and inclusion efforts: DEI office with three pillars (culture, workforce, procurement).
- Public comments: Nicole Burgess advocated for better bike infrastructure along the waterfront. A caller supported the port's electrification efforts and praised the presentation.
- Committee discussion: Council President Pro Tem Montgomery Steppe asked about affordable accommodations. Commissioner Castellanos noted ongoing efforts, including a pod concept and RV resort in Chula Vista, and a requirement for 25% affordable accommodations in new hotel developments. Councilmember Lee asked about growth opportunities; Commissioner Castellanos highlighted hospitality, maritime modernization, and Blue Economy.
Item 1: Digital Wayfinding Kiosk Agreement
- Staff presentation (Sarah Brenner, Economic Development): Proposed 10-year marketing agreement with IKE Smart City and Downtown San Diego Partnership (DSDP) for up to 50 digital kiosks in downtown (excluding coastal zone). Key terms:
- IKE pays all costs; city receives greater of minimum annual guarantee (starting at $16,000 per kiosk, escalating to $22,000) or 45% of net advertising revenue.
- 51% of screen time for public messaging; 66% during active use.
- Free Wi-Fi, emergency call button, translation in over 100 languages.
- Revenue: minimum $14.7 million over 10 years, up to $24.9 million with renewal.
- Exception from city sign regulations required.
- No surveillance technology unless compliant with Trust Ordinance.
- Public comments: Support from DSDP, Gaslamp Quarter Association, City Center BID, East Village Association, and La Jolla Village Merchants. Opposition from Scenic San Diego (Pamela Wilson) and Paul Krueger, who warned of unintended consequences to sign ordinance.
- Committee discussion: Chair Campillo highlighted benefits and protections, including data privacy (IKE confirmed phone numbers are not stored). Councilmember Montgomery Steppe asked about surveillance ordinance exemptions; city attorney deferred to mayor's office, but staff agreed to provide information before full council. Councilmember Lee noted successful deployments in 14 cities (e.g., Miami, Atlanta, Berkeley). The committee voted unanimously to send to full council.
Item 2: Fiscal Year 2024 Business Improvement District Budgets
- Staff presentation (Michelle Munoz, Economic Development): 18 BIDs with estimated $1.8 million in assessments from ~12,000 businesses. The council will take eight actions over two meetings, including approving budgets, setting a public hearing, and authorizing contracts. Accountability provisions from FY2022 were continued.
- Public comments: Support from City Center BID, North Park Main Street, Hillcrest Business Association, Discover Pacific Beach, and the Small Business Advisory Board.
- Committee action: Councilmember Montgomery Steppe moved staff recommendation; passed unanimously.
Item 4: Cannabis Equity Program Update
- Staff presentation (Laura Gates, Deputy Director, Cannabis Business Division): Provided update on accomplishments (adopting cannabis equity assessment in October 2022, receiving $885,000 state grant) and barriers (illicit market, intoxicating hemp, zoning restrictions, staff capacity). Proposed creating a Cannabis Outlet Social Equity and Economic Development Overlay Zone (COSEED) with 36 new equity permits, reduced sensitive use separation to 600 feet (state minimum), waiving fees, and removing property pre-selection requirement. Slow rollout of 9 permits per year over 4 years. Need for additional staff and funding highlighted.
- Public comments: Mixed views. Supporters (e.g., Terry Best, Armand King, Anthony Avalos, Christopher Martinez) urged funding (minimum $1 million) and fast-tracking. Opponents (e.g., Barbara Gordon, Kathleen Lippitt, Judy Strang, Kelly McCormick, Peggy Walker) argued the market is oversaturated, raised public health concerns, and questioned equity program design.
- Committee discussion: Councilmember Montgomery Steppe expressed strong support for repairing harm from the war on drugs, noting that current licensees do not include those personally impacted. She emphasized the need for funding and community input through the upcoming SEED Task Force. No action taken as item was informational.
Key Outcomes
- Consent Calendar: Approved unanimously.
- Item 1 (Wayfinding Kiosks): Motion to approve staff recommendation made by Chair Campillo, seconded by Vice Chair Montgomery Steppe, passed unanimously. The item will go to full City Council.
- Item 2 (BID Budgets): Motion to approve staff recommendation made by Vice Chair Montgomery Steppe, seconded by Chair Campillo, passed unanimously.
- Item 3 (Port Report): Informational only; no vote needed.
- Item 4 (Cannabis Equity): Informational only; no vote needed. Staff directed to continue developing the program and seek funding in upcoming budget.
Meeting Transcript
Let's create some jobs, shall we? Good afternoon, everyone, and welcome to the Economic Development and Intergovernmental Relations Committee meeting of March 8th, 2023. Our committee liaison, Sarah Jordan will provide information and instruction for the public to participate in today's meeting. Thank you, Chair Kempio. While members of the public are able to attend the meeting in person, this meeting is being televised and live streamed on the city's website, and the council administration will continue to make arrangements for the public to comment using the Zoom webinar platform. Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the virtual queue closes. This queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business. We appreciate the public's cooperation. Chair Kempio. I will now call the meeting of the Economic Development and Intergovernmental Relations Committee of Wednesday, March 8th, 2023 to order calling the role. Vice Chair Montgomery Step. Here. Councilmember Lee. And I am also present, also present in chambers, our Nikki Bennett, Associate Fiscal and Policy Analyst from the Office of the IBA. Deputy City Attorney Kate Malcolm from the Office of the City Attorney, and Stephen Hill, Senior Policy Advisor from the Office of the Mayor. Sarah, please continue with public comment instructions. If you are in person, please complete a speaker slip located at the entrance of chambers and place it in the box indicated at the speaker's lectern at the front of the room. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins. Members of the public can join the webinar by computer, tablet, or smartphone by accessing a web link which is listed online in the preamble language of the agenda on the city's webpage. To join the Zoom webinar by telephone, please dial 1669-2545252. When prompted input webinar ID 160-381-2925 pound. This information is also available on the agenda and it will appear on the screen during the public comment period for each agenda item. Members of the public who wish to provide virtual testimony must enter the virtual speaking queue by raising their hand before the queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after the conclusion of in-person public testimony ending whichever occurs first. Please note that if you're watching via City TV Channel 24 or online, there may be a delay. Please participate via the audio on your phone and mute your TV or computer when it's your turn to speak. If you wish to speak on a particular item, wait for that items to be called and then raise your hand by speaking by tapping the raise your hand icon or if you are a call-in participant by pressing star nine on your cell phone or landline. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you, Sarah, for reviewing the instructions for the benefit of the public. A quorum being present, we will now dispense of the approval of the committee actions of February 8th, 2023. Sarah, please proceed. Thank you, Chair. The public comment period for the approval of the past committee actions is now open. Thank you very much. We will now uh seek a motion to approve the action, so I have a motion. I have a motion from the Council President Pro Tem and a second from Councilmember Lee. Uh we will now take the vote. Vice Chair Montgomery Step. Yes. Councilmember Lee. Yes. And I am also a yes. That passes unanimously with all members present. We'll now take up non-agenda public comment. And the council members respect and appreciate the public's input and are fully committed to protecting every participant's free speech rights at council and committee meetings. Sarah, please proceed with the non-agenda public comment. Per rule 2.7, non-agenda public comment is an opportunity for the members of the public to comment on items that are not on the agenda but within the subject matter jurisdiction of the committee.
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