Economic Development and Intergovernmental Relations Committee Meeting - May 22, 2024
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Economic Development and Intergovernmental Relations Committee Meeting - May 22, 2024
The Economic Development and Intergovernmental Relations Committee met on May 22, 2024, at 17:00 UTC. The meeting covered a consent agenda item, lease amendments, an exclusive negotiation agreement for affordable housing, downtown property and business improvement district (PBID) and tourism marketing district (TMD) budgets, and an update on the World Design Capital 2024. All action items passed unanimously.
Consent Calendar
- Item 1: Fourth Implementation Agreement with SD EEC LLC for the San Diego Energy Equity Campus at Valencia Business Park. The project will bring 72 permanent full-time equivalent jobs and green sustainable industry to the Imperial Corridor. Approved unanimously.
Public Comments & Testimony
- Item 8 (World Design Capital 2024): Blair Beekman expressed support for the binational collaboration and called for more open conversations about border issues.
- Items 2 & 3 (Lease Amendments): Manny Rodriguez and Blair Beekman spoke in support of the Courtyard lease at 1301 Market Street, noting its use as a free community gathering space with music events.
- Item 4 (Exclusive Negotiation Agreement – 7th & Market): Janet Bourjois (East Village) supported the project but criticized the design as “very ugly,” requesting a more attractive building. Blair Beekman also spoke, urging preservation of historic buildings nearby.
- Item 5 (Downtown PBID Budget): Alonso Vivas (Downtown San Diego Partnership) highlighted accomplishments: over 78,000 sidewalks cleaned, 1.4 million pounds of trash removed, 116,000 safety patrols, and 500+ street light repairs.
- Item 6 (TMD Budget): Danielle Walker (owner of The Mental Bar in District 4) and Chris Liang (owner of Common Theory in District 6) spoke in support, citing benefits from the Tourism Authority’s DEI Accelerator Program.
- Non-Agenda Public Comment: Blair Beekman urged openness and accountability in local government. Peggy Walker, Megan Stewart, and Becky Rapp raised concerns about economic costs of cannabis legalization, citing studies on increased substance use disorders, homelessness, and unpaid taxes.
Discussion Items
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Item 8 – World Design Capital 2024 Progress Report:
- Jonathan Glus (Executive Director, Commission for Arts and Culture) and Mai Wen (Board Chair, WDC San Diego Tijuana 2024) presented. The $3 million city contract (November 2023) covers three areas: $1 million for grants and pavilion, $1 million for general administration, and $1 million for other deliverables.
- Key accomplishments: 400 community submissions, 300 endorsed initiatives, 17 grants awarded ($75,000 and $25,000 each), pavilion to be installed in Plaza de Panama (end of July 2024), over 250 million media impressions, and signature events including the World Design Festival in Tijuana.
- Vice Chair Lee expressed disappointment that the $1 million designated for grants was partially used for the pavilion ($350,000), leaving only $550,000 for grants. She requested a detailed budget briefing, noting the request was made six months prior.
- Councilmember Campbell asked for better communication of events to council offices and suggested using print and television media in addition to social media.
- Councilmember Foster requested a written memorandum with accounting and an IBA analysis.
- The item was informational only; no vote taken.
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Items 2 & 3 – Lease Amendments:
- Item 2: First amendment to lease with Courtyard at 1301 Market Street (East Village). Monthly rent $1,800, through July 2025, with two one-year renewal options. Generates $21,000 annually for the Low-Mod Housing Fund. The site operates as a multi-use public gathering space.
- Item 3: Fourth amendment to lease with Neighborhood House Association at 808 West Cedar Street (Little Italy). Monthly rent over $20,000, through August 2025, with two one-year renewal options. The Head Start program serves 54 children daily. Generates $243,000 annually for the housing fund.
- Councilmember Foster noted that the two leases combined will help fund at least five additional housing units via the Bridge to Home program. Approved unanimously.
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Item 4 – Exclusive Negotiation Agreement (ENA) with Chelsea Investment Corporation for 7th & Market Street:
- The site (bounded by 7th Ave, Market St, 8th Ave, and Island Ave) is a former redevelopment agency asset. After a terminated 2016 DDA, the city declared the site surplus in March 2023 and issued a Notice of Availability (NOA) under the Surplus Land Act (SLA). Three responses were received; selected Chelsea Investment Corporation for proposing the greatest number of affordable units.
- Proposed development: 405 residential units, 402 of which are affordable (multi-building mid-rise). Financial terms to be negotiated in a future DDA. The ENA outlines a 180-day negotiation period with a possible 90-day extension.
- Councilmember Campbell asked about developer capacity; Jim Anderson (Chelsea) confirmed they have 10–12 projects under construction statewide.
- Councilmember Lee asked about height limits; Christina Bibler (Director of Economic Development) said there is no height limit downtown, but FAA restrictions apply. The SLA prioritizes maximum affordable units, leading to 100% affordable proposal.
- Councilmember Foster stressed amenities, aesthetic quality, and labor engagement. Kim Miller (Chelsea) stated the project will be prevailing wage and is working with trade unions, including carpenters.
- Approved unanimously.
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Item 5 – Downtown PBID FY2025 Budget:
- The Downtown San Diego Partnership operates the Clean and Safe program. The FY2025 budget is $12.4 million, including $150,000 for city administration. The PBID covers 275 blocks, 13,964 parcels, with six neighborhood zones. Services include sidewalk maintenance, graffiti removal, safety ambassadors, and beautification.
- Councilmember Campbell asked about street light repairs and Big Belly trash cans. Alonso Vivas noted 700 lights were repaired, and Big Belly modified trash cans to reduce cost by 70–80%.
- Approved unanimously.
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Item 6 – Tourism Marketing District (TMD) FY2025 Budget:
- The TMD covers lodging businesses with 70+ rooms. The FY2025 budget is $50.9 million, funded by assessments ($47.6 million) and prior year savings ($16.6 million). Expected to generate $1.5 billion in hotel room night revenue and associated TOT.
- Key allocations: Sports San Diego ($1.8 million, projected $31 million return), San Diego Tourism Authority ($47.5 million, projected $1.4 billion return).
- Councilmember Campbell noted the ROI (24:1 to 25:1) and suggested marketing in Pittsburgh and highlighting San Diego’s low crime rate.
- Councilmember Foster asked about the large carryover; Colleen Anderson explained it results from unspent event funds and better-than-expected assessment collections, which go into the Opportunity/Catastrophe reserve.
- Approved unanimously.
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Item 7 – Bridge to Home NOFA Informational Update:
- Presented by Michelle Morano and Letitia Thomas. The program has approved 10 projects in rounds 1–2, creating 897 affordable units (232 permanent supportive housing). Round 3 (August 2023) offered $20 million; five projects were recommended in January 2024.
- A new project, Grantville Mission Trails (5945 Mission Gorge Rd, District 7), is recommended for a $2.5 million CDBG loan. It will be a 47-unit affordable housing development (20–60% AMI, including 14 supportive housing units). Project completion anticipated August 2026.
- Vice Chair Lee asked about timing; the round 3 NOFA was issued in FY2024 budget. Staff noted that cumulative bridge-to-home units will reach 1,344 by end of 2024. Round 4 is expected later in 2024 with $15–20 million available.
- Item was informational; no vote taken.
Key Outcomes
- Items 1, 2, 3, 4, 5, 6: All approved unanimously by the committee (4 votes in favor).
- Item 8 (World Design Capital): No action taken; councilmembers requested a detailed budget briefing and written memorandum with IBA analysis.
- Item 7 (Bridge to Home): No action taken; informational only.
- Next Meeting: The committee will reconvene on Wednesday, June 12, 2024, at 12:00 p.m.
Meeting Transcript
Good morning, everyone. Welcome to the economic development and intergovernmental relations committee meeting of May twenty second, twenty twenty-four, and our committee liaison. Sarah Jordan will provide information and instruction for the public to participate in today's meeting. This will allow for better meeting management between the two platforms and ensure the committee is able to manage New Tech City business. If you are in person, please complete a speaker slip located at the entrance of chambers and place it at the box indicated at the speaker's lecture and 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 1669-2545252. And when prompted, input webinar ID 161-965-4979 pound. This information is also available on the agenda and 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 testimony, 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 is your turn to speak. If you wish to speak to a particular item, please wait for that item to be called and then raise your hand 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 the committee meeting minutes of March 13th, 2024. Sarah, do we have any public comment on the minutes? Thank you, Chair. We have not received any slips here in chambers, and I don't see any hands raised in the virtual queue, so that does conclude public testimony on the past committee minutes. Very good. We will take committee members' questions, comments, and entertain a motion. I'll make a motion to approve. Do I have a second? I have a second from Councilmember Campbell. Are there any questions? Seeing none, I'll call the roll. Vice Chair Lee. Yes. Committee member Campbell. Committee member Foster. Yes. And I am also a yes. That passes unanimously with all members present. We'll now move to committee members, mayoral staff, city attorney, and IBA comment. Seeing no comment, we will see if there's any requests for continuances. Seeing no request for continuances, we'll now move to our agenda. As a note to the public, we'll be hearing our agenda out of order today. We're going to start with our consent agenda, and then we're going to go to item eight, and then we'll be hearing non-agenda public comment at the end of our meeting after agendized items. We will now move to our consent agenda. Do we have any requests to pull the item from our consent agenda? Hearing none, we'll move forward with our public comment on our consent agenda. Sarah, please proceed. Thank you, Chair. The public comment period for the consent agenda is now open. The consent agenda includes item number one, fourth implementation agreement with the S D E E C L L C for San Diego Energy Equity Campus at Valencia Business Park. And Chair, we have not received any speaker slips here in chambers, and I don't see any hands raised in the virtual queue, so that will conclude public testimony on the consent agenda.
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