Economic Development & Intergovernmental Relations Committee Meeting - July 17, 2024
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Economic Development & Intergovernmental Relations Committee Meeting - July 17, 2024
The Economic Development and Intergovernmental Relations Committee of the San Diego City Council met on Wednesday, July 17, 2024, to discuss and act on several items, including a disposition and development agreement for affordable housing, a federal legislative update, and progress on disparity study recommendations. The meeting began with a moment of silence in memory of Rebecca Taylor, chair of the local Democratic Party.
Consent Calendar
- Approval of Past Committee Minutes: The minutes from the previous meeting were approved unanimously by all members present (Vice Chair Lee, Councilmember Foster, and Chair Campillo).
Public Comments & Testimony
- Non-Agenda Public Comment:
- Joy Sanyata (District 3) expressed gratitude to city staff and City TV for their work.
- Terry Ann Skelly voiced concern about rising marijuana use among young adults (ages 19–30), citing national research, and urged the committee to consider the impact on youth employment and success.
- Peggy Walker (public health educator) asked the committee to ensure follow-through on a grand jury assessment of marijuana legalization's economic and public health costs, including the black market, tax delinquencies, and health care burdens.
- Blair Beekman commented on the role of council members in the Democratic Party and urged open discussion about mobile surveillance technology for Pride events, emphasizing the need for oversight.
- Sally Small (District 4, Emerald Hills) noted that the Promise Zone is ending with little economic development and asked the city to continue supporting communities of concern. She also requested that the city work with MTS and SANDAG on the Orange Line separation at Euclid Avenue for safety and equity.
- Judy Strang shared observations from college-aged grandchildren about marijuana-impaired driving and "failure to launch" among youth, linking it to the committee's focus on economic development.
- Item 1 – Disposition and Development Agreement:
- Joy Sanyata supported the agreement but asked about cost per unit ($600,000 estimated), net sales to the housing fund, and AMI thresholds.
- Blair Beekman emphasized the importance of mixed-income housing and collaboration with Tijuana.
- Item 2 – Federal Update:
- Joy Sanyata congratulated staff and asked if the city has a dedicated grant expert, noting the 15 competitive federal grants listed. She stressed focusing on housing, homelessness, and the future of HAP.
- Blair Beekman called for openness and accountability in government, linking local practices to broader peace efforts, and expressed sadness over recent gun violence.
- Item 3 – Disparity Study Update:
- Joy Sanyata praised progress on the aspirational goals and the expanded data collection, urging continued momentum.
- Dennis Lasalle (small business owner, downtown San Diego) asked the city to increase the SLBE income threshold from $3.5 million to $5 million to account for inflation, noting consistent with other cities. He thanked the city for the SLBE program.
- Blair Beekman again emphasized mixed-income housing and collaboration with Tijuana.
Discussion Items
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Item 1: Disposition and Development Agreement – 40th and Alpha Street (Community Housing Works)
- Staff (Michael Wong, Leonardo Alarcon) presented a request to forward to City Council a resolution approving the sale of city-owned land at 40th and Alpha Street to Community Housing Works (CHW) for development of 57 affordable housing units (100% affordable). The project is estimated at $35 million, with a land sale price of $1,358,000 based on an April 2023 appraisal. A waiver of Council Policy 700-10 (requiring appraisal less than 6 months old) was requested because negotiations took longer than expected; a restricted appraisal confirmed no significant market change. CHW would use 4% tax credits, senior loans, and other funding. Public comment noted support. Chair Campillo, Vice Chair Lee, and Councilmember Foster discussed the waiver. Staff explained that a new appraisal would cost $7,000–$15,000 and take 6–8 weeks, potentially delaying funding applications. Kevin Leitner (CHW) noted that a delay would miss the HOME NOFA cycle, adding six months to the timeline. The Independent Budget Analyst (IBA) confirmed the appraisal was reasonable given updated restricted appraisal. Councilmember Foster expressed concern about frequent waiver requests. The motion to approve staff recommendation and forward to City Council passed unanimously (3-0).
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Item 2: 2024 Federal Update
- Staff (Walt Bishop, Dion Aker) and federal lobbyists (Leslie Polner, Lori Heidinger) presented an overview of federal legislative outlook, including pending reauthorizations (NDAA, WRDA, WIOA, Farm Bill), FY2025 appropriations challenges (House cuts to HUD programs like Choice Neighborhoods, HOME, PRO Housing), and the city's success in advancing 13 of 14 community project funding requests (totaling $42 million). Grant opportunities under the Bipartisan Infrastructure Law were highlighted (e.g., RAISE, PROTECT, digital equity, pro-housing). An election update noted uncertainty. Chair Campillo thanked the federal delegation, particularly Congresswoman Jacobs for child care feasibility assessment funding. No motion required; item was for information.
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Item 3: Update on Implementation of 2020 Disparity Study Recommendations
- Staff (Claudia Abarca, Christian Silva) reported on progress: implemented items include a searchable SLBE list, expanded data collection, an oversight committee (established June 2023), and a 31% minority/women-owned business aspirational goal for FY24-25. Partially implemented items: mandatory subcontracting goals for goods/services (challenges due to small pool of certified firms), prompt payment clause (missed for goods/services, being corrected), small business set-asides (limited goods/services pool), unbundling (ENCP developing Quick Build process, committed to 7 projects for FY25 sheltered competition), and bonding assistance/technical assistance program (hiring coordinator, boot camp planned late 2024). Not implemented: race/gender-conscious program (shelved after Supreme Court ruling on affirmative action). Remaining: staffing (hiring coordinator by Dec 2024), next disparity study in FY26. Councilmember Foster expressed frustration with slow implementation, especially unbundling, noting that in the past 15-20% of CIP was unbundled. He questioned ENCP's commitment to unbundling. Luis Schwarz (ENCP) explained challenges with breaking out standalone projects. Councilmember Foster requested commitment from the mayor's office and asked IBA to review budgetary impacts. Chair Campillo encouraged targeted outreach and revisiting income thresholds for SLBE. Councilmember Foster requested the item be brought to full council for further discussion. Staff agreed to coordinate with council president.
Key Outcomes
- Item 1 (DDA): Committee voted unanimously (3-0) to forward the resolution to City Council for approval on July 29, 2024, including the waiver of Council Policy 700-10.
- Item 2 (Federal Update): Received as information; no action taken.
- Item 3 (Disparity Study Update): Received as information; staff agreed to bring the item to full City Council at the request of Councilmember Foster. The next committee meeting is scheduled for Wednesday, September 4, 2024, at 2:00 p.m.
Meeting Transcript
We'll start in about 30 seconds. Ready to roll? Very roll. Good afternoon, everyone. Welcome to the Economic Development and Air Government Intergovernmental Relations Committee meeting of July 17th, 2024. Our committee liaison, Sarah Jordan will provide information and instruction for the public to participate in today's meeting. Thank you, Chair. Thank you, Chair Campio. Well, 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 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 Campio. Thank you. Uh I will now call this meeting of the Economic Development and Intergovernmental Relations Committee of Wednesday, July 17th, 2024 to order. I'll now call the role. Members of the public wish to provide virtual testimony must enter the virtual speaking queue by raising their hand before the queue closes. 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 on 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 and 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. Thank you, Chair. I've received no speaker slips here in the committee room. And seeing no hands raised in the virtual queue, that'll conclude public testimony on the past committee minutes. Very well. We will now call the roll. Vice Chair Lee. Yes. Yes. Committee member Foster. Yes. Thank you. We I am also a yes, and that passes unanimously with all members present. Before we jump into the non-agenda uh public comment, um just want to say a little something very quick. Um was very heartbroken to read the news just about an hour ago uh about the passing of our good friend and chair of our local Democratic Party, uh Rebecca Taylor. Uh my first memories of Becca are from uh campaigning alongside her. Uh she was a person wholeheartedly dedicated to our democracy, uh, having everyone's voice included in the process and respected everybody's dignity, everyone she crossed paths with. She was a proud American, a veteran. She was a proud Sandy Eagan, and she made us all better people. I know that everyone on the city council and in the mayor's office had the highest respect for her and love for her. She's passionate, intelligent, always aiming to do what was right. And she's left a lasting impression on so many and me personally. Uh, we'll truly miss her and keep her in our prayers if you'd join me in a moment of silence thank you all very much. We'll now take up non-agenda public comment. 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 non-agenda public comment. Thank you, Chair Campio. Per Rule 2.7, non-agenda public comment as an opportunity for members of the public to comment on items that are not on the agenda but are within the subject matter jurisdiction of this committee.
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