Special EDIR Committee Meeting: April 12, 2023
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Special Economic Development and Intergovernmental Relations Committee Meeting - April 12, 2023
The Economic Development and Intergovernmental Relations (EDIR) Committee met on Wednesday, April 12, 2023, at 9:00 AM. The meeting included approval of prior actions, consent agenda items, a state affairs update, the Fiscal Year 2024 Annual Action Plan for HUD programs, and a new three-year economic development strategy. All votes passed unanimously with all members present (Chair Campio, Vice Chair Montgomery Steppe, Councilmember Campbell, Councilmember Lee). Public comment was heard on multiple items.
Consent Calendar
- Approval of March 8, 2023 Committee Actions: Approved unanimously.
- Consent Agenda Items (1 & 2):
- Item 1: Hacienda Townhomes – Assignment, assumption, and amendment to loan documents.
- Item 2: Horton House – Approval of real property purchase and sale agreement, declaration of surplus land, and waiver of council policy requirements. Both items were approved unanimously without removal from consent.
Public Comments & Testimony
- Kelly McCormick (public health educator): Expressed support for Assembly Bill 1207 (Cannabis Candy Child Protection Act). Cited statistics: at Rady Children’s Hospital, THC-positive tests among young children quadrupled since 2016, average age 3, half hospitalized, 1 in 10 required intensive care; across California, marijuana-related ER visits increased 75% in five years.
- Blair Beekman: Suggested quarterly city staff workshops on sexual abuse complaints; urged advance notice (7–10 days) before homeless encampment sweeps; called for storage of homeless property and limiting what is considered illegal in encampments.
- Joyce Sanyata (District 3): Applauded the state affairs team and its work; noted the growing deficit should be prioritized in city budget; expressed concern that 20% administrative costs in CDBG seemed too high; requested clearer framework for how housing funding flows across departments.
- Judy Strang (Parent Advocates): Requested city council consider a letter of support for AB 1619 (prescription drug warning labels for interactions with THC/CBD).
- Melanie Kahn (Sr. Director, Biocom California): Supported the economic development strategy; noted life sciences is key to San Diego’s economy (112% business growth 2020–2022); 25% of life science workers have no college degree; offered partnership for workforce development and housing.
- Lauren Casares (San Diego Regional Chamber of Commerce): Commended staff for inclusive outreach; supported the economic development strategy, especially the business incentive study and cross-border economic ties.
- Blair Beekman (on economic development strategy): Urged a positive, inclusive process to avoid disaster capitalism and recession thinking.
Discussion Items
1. 2023 State Affairs Update (Item 5 – informational)
- Presenters: Adrian Grand (Director of Government Affairs) and Moira Top (State Legislative Consultant).
- Key Points: Over 2,700 bills introduced; state budget deficit of $22.5 billion (relative to prior $90 billion surplus); proposed cuts mostly in transportation; HAP (Homelessness Assistance Program) proposed for fifth year, not yet permanent; youth job core program proposed as ongoing $78 million; focus on homelessness/housing accountability, mental health reform, fentanyl legislation (two bills stalled), surplus lands act reform, and coastal commission modernization.
- Councilmember Campbell asked about removing Proposition 34 (public housing restriction); staff noted SCA-2 passed the Senate and will be on the 2024 ballot.
- Vice Chair Montgomery Steppe raised concerns about equitable approaches to fentanyl and conservatorship, learning from past war on drugs. Staff responded that bills are narrowly tailored and comprehensive solutions combining health and safety are being pursued.
- Councilmember Lee questioned about making HAP permanent and transportation infrastructure funding opportunities; staff confirmed SB1 dollars are untouched and GGRF funds flowing.
2. Fiscal Year 2024 Annual Action Plan for HUD Programs (Item 3 – action item)
- Presenters: Nadine Hassoon and Michelle Morano (Economic Development Department).
- Background: The annual action plan covers CDBG ($26M), HOME ($28.3M), and ESG ($1M) grants. CDBG allocations derived from competitive NOFA process: 54 organizations expressed interest, 45 qualified, 35 proposals submitted (31 eligible), 28 organizations recommended for 31 projects totalling over $7M (increase of $2M from prior year).
- CDBG Breakdown: 30% affordable housing, 25% city projects/nonprofit facilities, 10% economic development, 15% public services (with $1.3M set aside for homelessness services), 20% administration.
- Key Components:
- Microenterprise technical assistance: ~$2M to 9 organizations.
- Nonprofit facility improvements: ~$3.1M to 5 organizations (including Dreams for Change, Sisters Development Initiative, Rise Up Industries).
- Public services: ~$2M to 17 organizations.
- City CIP projects: $3.2M for University Avenue Complete Street Phase 1, John F. Kennedy Neighborhood Park improvements, and Coral Gate Neighborhood Playground.
- HOME program: $24.7M for rental housing, $1M for first-time homebuyer assistance.
- ESG: $1M for interim shelters (Father Joe’s Village, Connections Housing) and rapid rehousing.
- New: Nonprofit accelerator capacity building program (up to $600,000 from admin funds).
- Consolidated Plan Advisory Board unanimously recommended approval.
- IBA Comment: Noted that the FY24 plan does not include $1M for the Homelessness Response Center (funding ended FY23); HSSD plans to continue operations through city budget.
- Public Comment: Joyce Sanyata questioned 20% admin costs; staff explained it is the federal cap and labor-intensive. Blair Beekman urged mixed-income housing and cross-border cooperation.
- Committee Vote: Motion by Vice Chair Montgomery Steppe, seconded by Councilmember Lee; passed unanimously.
3. Development of Focused Economic Development Strategy (Item 4 – action item)
- Presenters: Elizabeth Studebaker (Assistant Deputy Director) and team.
- Overview: Three-year strategy (through 2026) replacing 2017–2019 plan. Developed through 224 key insights from stakeholder engagement, data analysis, and alignment with city plans.
- Framework: Four goal areas:
- Supporting Families and Workers – expand middle/high-income jobs, training, wraparound services.
- Supporting Small and Local Businesses – strengthen nonprofit network, technical assistance, increase capital access.
- Bolstering Trade and Innovation – catalyze trade, invest in innovation economy, support binational economy.
- Strengthening Neighborhoods – invest in under-resourced communities, commercial corridors, cultural spaces, and affordable housing.
- Guiding Principles: Streamline processes, embrace sustainability, center equity, convene partners, use data.
- Example Tactics: Apprenticeship programs with colleges, childcare subsidies, small business contracting assistance, foreign direct investment support, sports tourism, and coordination of major projects (Sports Arena, Civic Center).
- Equity Standards: Each goal includes equality standard and acknowledges disparities (e.g., Hispanic residents 33% of population but only 15% of innovation economy jobs; housing cost burden disproportionately affects non-white households).
- Next Steps: Final adjustments based on committee feedback; full City Council approval in May; future updates to Business Incentive Program (Council Policy 900-12) will align with strategy.
- Public Comment: Support from Biocom California and Chamber of Commerce; Blair Beekman urged inclusive economic planning.
- Committee Vote: Motion by Chair Campio, seconded by Vice Chair Montgomery Steppe; passed unanimously.
Key Outcomes
- Consent Calendar (Items 1 & 2): Approved unanimously.
- Fiscal Year 2024 Annual Action Plan for HUD Programs (Action Items 1–22): Recommended to City Council for approval unanimously.
- Focused Economic Development Strategy: Approved unanimously with direction to incorporate minor modifications before City Council.
- Next Meeting: Wednesday, May 17, 2023 at 9:00 AM.
Meeting Transcript
We will start in 30 seconds. Good afternoon, and welcome to the special economic development and intergovernmental relations committee meeting of April 12th, 2023. Our committee liaison, Sarah Jordan will provide the information and instruction for the public to participate in today's meeting. Thank you, Chair Campio. While members of the public are able to attend the meetings 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 after the last virtual speaks. Virtual speaker speaks 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 Campio. Thank you. I will now call the special meeting of the Economic Development and Intergovernmental Relations Committee of Wednesday, April 12th, 2023 to order and call the role. Vice Chair Montgomery Step. Here. Councilmember Campbell. Councilmember Lee. Here. And I'm also present and also present in chambers or Nikki Bennett, Associate Fiscal and Policy Analyst from the Office of the IBA. Deputy City Attorney Daphne Scogan 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, please. 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 the 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 1669-254-5252. When prompted, input webinar ID 160 381 2925 pound. This information is also available on the agenda and will appear on the screen during 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 speaker before the queue closes. The queue will close after the virtual speaker finishes speaking, or five minutes after the conclusion of in-person public testimony, whichever occurs first. Please note that if you're watching 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 item to be called and then raise your hand to speak by tapping the raise your hand icon, or if you are a call-in participant by pressing star nine on your phone. 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 and a quorum being present. We will now dispense with the approval of the committee actions of March 8th, 2023. Please proceed. The public comment period for the approval of the past committee actions is now open. Chair, we don't have any speaker slip submitted, nor do we have anybody in the virtual queue wishing to comment. Understood. Do I have a second? I have a second from Councilmember Lee. We will now proceed to the vote. Yes. Councilmember Campbell. Yes. Councilmember Lee. Yes. I'm also a yes.
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