Economic Development and Intergovernmental Relations Committee Meeting - September 6, 2023
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Economic Development and Intergovernmental Relations Committee Meeting - September 6, 2023
The Economic Development and Intergovernmental Relations (ED&IR) Committee met on Wednesday, September 6, 2023, at 10:00 AM. Chair Campillo presided, with Council President Pro Tem Montgomery Steppe, Councilmember Campbell, and Councilmember Lee present. Also in attendance were Nikki Bennett (IBA), Deputy City Attorney Daphne Scogan, and Stephen Hill (Mayor's Office). The meeting covered four agenda items, including updates on affordable housing, a grand jury report response, federal affairs, and HUD program performance.
Consent Calendar
- Unanimous approval of committee actions from July 12, 2023, with no public testimony.
Public Comments & Testimony
Non-Agenda Public Comment:
- Diane Gray expressed concern about marijuana businesses in lower-income neighborhoods, citing a Kaiser Family Foundation survey on substance use treatment disparities.
- A speaker (anonymous) criticized vaccine mandates and 5G, stating vaccines are ineffective and cause harm.
- Blair Beekman urged a slower timeline for the Smart Street Light contract process, emphasizing accountability and community review.
- Peggy Walker (Coastal Communities Drug Free Coalition) requested a smoke-free multi-unit housing ordinance, citing health and economic benefits.
- Judy Strang (Coastal Council of PTAs) noted increased marijuana use among 19-30 year olds (35% to 44% from 2017-2022) and urged caution on expanding marijuana businesses.
- Kathleen Lippett opposed expanding marijuana businesses, arguing for higher educational standards and against "math equity" concepts.
Public Comment on Item 1 (Affordable Housing Master Plan):
- Sally Small (Emerald Hills) stated that southeast San Diego has received a disproportionate share of extremely low-income housing without adequate jobs, infrastructure, or schools.
- Blair Beekman called for mixed-income development and clearer communication on housing plans.
- A speaker (anonymous) criticized the pace of construction, noting only 2,987 units completed in 10 years, and questioned the feasibility of adding 1,500 by 2028.
Public Comment on Item 2 (Port Governance Response):
- Job Nelson (Port of San Diego) thanked the IBA for capturing complexities, and clarified that the port operates with oversight from the State Lands Commission and Coastal Commission.
- Blair Beekman cited Oakland as a model for accountability.
- A speaker (anonymous) criticized the pattern of deflecting accountability.
Public Comment on Item 3 (Federal Affairs Update):
- Blair Beekman expressed concern about funding for war and disaster capitalism instead of local needs.
- A speaker (anonymous) criticized federal spending on Ukraine and the president, urging focus on local water infrastructure.
Public Comment on Item 4 (CAPER Report):
- Blair Beekman praised the report but urged development of housing for extremely low-income people.
- A speaker (anonymous) criticized harm reduction programs (e.g., syringe services) and questioned nonprofit effectiveness.
Discussion Items
Item 1: Affordable Housing Master Plan 2023 Update Michael Wong (Successor Agency Program Manager) presented progress since redevelopment dissolution in 2012. Key statistics: 6,309 total residential units created (4,155 affordable, including 1,350 permanent supportive housing and 194 transitional beds); 2,987 units completed. Over $233 million expended, averaging $56,000 per affordable unit. Remaining five properties to be developed. The city has issued three NOFAs (Bridge to Home) with $77.6 million committed for 1,281 units; Round 3 ($20 million) open until October 6, 2023. The plan anticipates facilitating 1,500 additional affordable units by 2028. Council President Pro Tem Montgomery Steppe inquired about alignment with state housing goals and net unit counts. Staff confirmed coordination with the Housing Element. The item was moved and passed unanimously.
Item 2: Proposed Response to Grand Jury Report on Port Governance Nikki Bennett and Jillian Andalina (IBA) presented findings and recommendations from the grand jury report titled "Governance of San Diego Bay and Its Tide Lands and Regions." The proposed response disagreed with several findings (e.g., that commissioners only represent perspectives, not interests) and partially disagreed with others. The four recommendations (term limits, quarterly updates, ratification of port master plan, alternative governance) were deemed not warranted or not implemented due to state law constraints. The IBA suggested clearer transparency on term limits and improved compliance with Council Policy 700-20 for port commissioner updates. Chair Campillo and members expressed support for the response, noting the port's state-created structure and economic importance. Motion to forward the response to City Council passed unanimously.
Item 3: Fall 2023 Federal Affairs Update (Informational) Adrian Granda (Director of Government Affairs) and representatives from Holland & Knight provided an update. Key issues: Congress returning from recess with appropriations expiring September 30; risk of government shutdown; $40 billion emergency supplemental request including Tijuana River funding. The city has secured over $24 million in community project funding since FY2022, with 14 projects worth $14.5 million pending in FY2024 bills. Priorities include maintaining housing/homelessness funding, pursuing the PRO Housing (PRO-YIMBY) competitive grant ($85 million available, 20 awards nationally), and seeking regulatory waivers similar to Los Angeles to expedite permanent supportive housing placement. Legislation to raise the federal WIFIA loan cap for Pure Water (Phase 1 completion and Phase 2) is being introduced by Congressman Peters and Senator Padilla. Councilmember Campbell emphasized the OB Pier replacement and Scripps research collaboration.
Item 4: FY2023 CAPER for HUD Programs (Informational) Angela Nazareno Clark and Michelle Morano (Economic Development Department) presented the Consolidated Annual Performance and Evaluation Report covering July 1, 2022 – June 30, 2023. Over $29 million invested through CDBG, HOME, and ESG programs. Outcomes: 56,000 people served, 170 households, 89 businesses, 48 projects completed. Highlights included 80 households benefiting from new affordable rental housing (e.g., Orchard at Hilltop, St. Teresa of Calcutta, Trinity Place), homeless services reaching over 12,000 individuals, microenterprise support for 274 entrepreneurs, workforce training (Kitchens for Good apprenticeship), and public facility improvements (Linda Vista Skate Park, Woodman Street sidewalks). Nonprofit facility projects included Access Youth Academy expansion. Staff conducted 1,200 programmatic/fiscal audits and 60 technical assistance meetings. The CAPER will go to the Consolidated Plan Advisory Board on September 13 and City Council on September 19. Council President Pro Tem Montgomery Steppe noted the increase in people served (from ~19,000 to 56,000) was due to multi-year projects closing out.
Key Outcomes
- Consent calendar approved unanimously.
- Affordable Housing Master Plan update accepted and motion approved unanimously.
- Proposed response to the grand jury report on port governance approved for forwarding to City Council unanimously.
- Federal Affairs Update received as informational.
- CAPER report received as informational; public comment period open until City Council hearing on September 19.
- Next ED&IR Committee meeting scheduled for Wednesday, October 4, 2023, at 2:00 PM.
Meeting Transcript
Our committee liaison Sarah Jordan will provide information and instructions for the public on participating in today's meeting. Thank you, Chair. 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. The 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 that the committee is able to manage and conduct city business. We appreciate the public's cooperation. Chair Kempio. Council President Pro Tem Montgomery Step. Here. Councilmember Campbell. Councilmember Lee. Here. I'm also present, also in Chambers, Nikki Bennett, Associate Fiscal and Policy Analyst from the Office of the IBA. Deputy City Attorney Daphne Scogan of the Office of City Attorney. And Stephen Hill, Senior Policy Advisor for the Mayor of Todd Gloria. Sarah, please continue with public comment instructions. Thank you, Chair. 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 lecture and in 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 today's Zoom webinar by telephone, please dial 1669-2545252 and 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 after the last virtual speaker finishes speaking or five minutes after the conclusion of in-person testimony, whichever goes 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 to 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 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 those instructions for the benefit of the public and a quorum now being present. We will dispense with the approval of committee actions of July 12th, 2023. Sarah, please proceed. Thank you, Chair. We have not received any speaker slips, nor do we have any hands raised in the virtual queue. So that does conclude public testimony for the committee actions. Very good. We'll entertain motions and comments from my colleagues. Do I have a motion? Motion from Councilmember Campbell and a second from the Council President Pro Tem. Any questions or comments? Seeing none, we have a motion and a second, and I will now call the role. Council President Pro Tem Montgomery Step. Yes. Councilmember Campbell. Councilmember Lee. Yes. And I am a yes. That passes unanimously with all members present.
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