Economic Development and Intergovernmental Relations Committee Meeting - December 11, 2024

The Economic Development and Intergovernmental Relations Committee met on December 11, 2024, chaired by Councilmember Campillo, with Vice Chair Lee, Councilmember Campbell, and Councilmember Foster present. The meeting covered the adoption of the Creative City Cultural Plan, an update on the Bridge to Home affordable housing program, a federal affairs update, and a presentation from the San Diego Diplomacy Council. Public comments addressed health inequities, illegal cannabis products, youth substance use, the Tijuana River pollution, and community diplomacy.

Consent Calendar

• Item 1: Approval of the committee minutes from October 30, 2024.
• Item 2: Approval of a nine-year flat rate ground lease agreement with Sorby Aircraft Maintenance for approximately 98,930 square feet of hangar space and 25,420 square feet of land at Montgomery Gibbs Executive Airport.
• Both items were approved unanimously without discussion.

Public Comments & Testimony

Non-Agenda Public Comments:

• Jan Bourgeois (downtown resident) urged the committee to continue developing the civic center area, reopen the closed restaurant at the civic theater (formerly Downtown Johnny Brown's), and enforce improvements on derelict buildings downtown, including the California Theatre. He also advocated for hiring freezes and budget cuts.
• Terry Ann Skelly (parent, public health educator) cited a Kaiser Family Foundation survey on health inequities, noting that 66% of adults report personal or family substance use addiction. She highlighted that white adults (51%) are more likely than Black or Hispanic/Latino adults (35%) to receive treatment for substance use disorders, and urged reducing the number of predatory businesses selling alcohol, tobacco, and marijuana in lower-income neighborhoods.
• Blair Beekman spoke about tech accountability and open practices, emphasizing that local government must be responsive and trusting in conversations about technology and public safety.
• Peggy Walker (public health advocate) warned that gas stations, convenience stores, and smoke shops sell illegal intoxicating products (Delta 8/9 THC, CBD, mushroom blends) targeted at youth. She noted that 60% of samples tested by the county sheriff contained controlled substances, and called for oversight and stiff penalties.
• Madison (concerned citizen, not a named affiliation) cited an Atlantic article on cannabis-induced psychosis, chronic vomiting, and paranoia among teens. She argued that unregulated THC products harm youth development, increase healthcare costs, and reduce workforce productivity, urging stronger regulation and prevention.
• Phone number ending in 7968 (anonymous) recited a statement about the San Diego-Tijuana binational region, declaring interdependence and calling for a single transnational vision.
• Michael Schmidt (Morning Bonds District) requested road repair on Gold Coast Drive in Miramar.
• Judy String (public health advocate) noted that the San Diego County Board of Supervisors renewed an emergency proclamation regarding transborder pollution, emphasizing that communities near the border (Imperial Beach, San Ysidro, Otay Mesa, Tijuana River Valley) face high pollution burdens, linguistic isolation, and poverty. She referenced a new Surgeon General’s report calling for eliminating tobacco-related disease and addressing disparities, including from cannabis use.

Consent Agenda Public Comment:

• Blair Beekman supported the inclusion of state legislative updates on the agenda, praising the sharing of knowledge from outside sources.

Public Comment on Item 3 (Creative City Cultural Plan):

• Phone number ending in 7968 praised the plan, especially the equity fund and connection with philanthropy. They highlighted the digital divide and the role of Idea Labs at libraries, and supported free access to arts.

Public Comment on Item 4 (Bridge to Home NOFA Round 4):

• Phone number ending in 7968 thanked staff for the data, appreciated childcare and older adult support, and asked if the public can access the applicant evaluation method and quantifiable metrics for the competitive process.

Public Comment on Item 5 (Federal Affairs Update):

• Phone number ending in 7968 expressed excitement about Tijuana River funding in appropriations, asked about potential impacts of immigration policies on that funding, and requested attention to digital access for underserved communities.
• Blair Beekman hoped the Trump administration would work toward peace but expressed concern about prolonging wars in Ukraine and Israel, and emphasized local open democracy as a model for peace.

Public Comment on Item 6 (San Diego Diplomacy Council):

• Phone number ending in 7968 thanked the presenters and embraced the concept of “we are all diplomats,” vowing to be a better diplomat.
• Blair Beekman praised the work on tech accountability and hoped the council could contribute to local policy making, such as an Office of Immigration Affairs.

Discussion Items

Item 3: Adoption of the City of San Diego’s Creative City Cultural Plan

• Jonathan Glus, Executive Director of the Commission for Arts and Culture, presented the plan, developed over 18 months through more than 70 community events, an online survey, and targeted convenings. Three key findings: the city has one of the largest portfolios of city-owned facilities; tourism authorities recognize arts and culture as a key growth area; and affordability was the top issue raised by artists and organizations.
• David Plettner Saunders (Cultural Planning Group) outlined four goal areas: (1) Centering artists, creatives, and space (with strategies for affordable creative spaces, an equity fund, and streamlined procurement); (2) Arts in community (increasing access through cultural districts and targeted investments); (3) Creative entrepreneurship (creating a strategic creative economy plan and supporting targeted industries like music, film, visual arts); and (4) Global creative city (cultural tourism, international awareness, and transborder artist support).
• The plan includes a funding toolkit: implementing a penny for the arts, creating an arts foundation, exploring an admissions fee, and allocating general funds. The Commission for Arts and Culture unanimously recommended the plan.
• Committee Discussion: Chair Campillo emphasized that the plan creates good jobs and careers, noting the words “business” (55 times), “workforce” (19), “economic” (43), and “economy” (73) in the plan, with zero mention of “fun and games.” Vice Chair Lee highlighted the need for affordable creative spaces and the equity work. Councilmember Foster asked about cross-department collaboration and creative enterprise zones. Staff responded that early engagement with city departments has occurred, and joint use agreements with San Diego Unified School District are being explored for facilities like the new theater at Morse High School.
• Outcome: Motion to adopt the plan passed unanimously.

Item 4: Bridge to Home Notice of Funding Availability (NOFA) Round 4 Informational Update

• Michelle Morano and Angela Nazareno Clark presented the program’s accomplishments: Rounds 1-3 resulted in 16 approved loans totaling $64 million, creating 1,344 affordable rental homes (285 with supportive services). Six projects are under construction; one is completed and leasing up.
• Round 4 offered $24 million ($20 million from LMI Housing Asset Fund + $4 million CDBG). Twelve applications requested $57 million; six projects were recommended:
  1. 40th and Alpha (Community Housing Works, Council District 9): 91 units (16 supportive), on-site childcare, $4.5M city loan ($48,913/unit).
  2. 73rd Street Apartments (Eden Housing, District 9): 119 units (30 supportive), on county land.
  3. Goodwin on Glacier (Wakeland Housing + City Thinkers, District 7): 130 senior units (21 supportive), on county land, on-site childcare, Green Point Gold rating.
  4. Market Street Apartments (Affirmed Housing + COMPASS, District 4): 137 senior units (47 at 30-40% AMI), on county land, on-site childcare, Head Start services, community garden.
  5. Sarah Mesa Apartments (Community Housing Works, District 7): 59 units (30 for veterans, 29 for homeless), on former library site, $3.5M city loan.
  6. Swift Avenue Apartments (Community Housing Works, District 9): 56 units (20 for veterans), $4M city loan.
• All projects have 55-year affordability covenants, 3% simple interest loans. Next steps: negotiate loan terms, present to City Council in 2025. A fifth round of NOFA (estimated $15-20M from CDBG) may be released in late 2024 or early 2025.
• Committee Discussion: Chair Campillo asked about the separate funding sources (city NOFA vs. Housing Commission). Monica Hardman (Assistant Director) explained that the city’s direct funds (LMI, PLHA, CDBG, HOME) are used to avoid administrative burden on developers. Councilmember Foster asked about senior-only units and the role of Neighborhood House and Project New Village at Market Street Apartments. Staff clarified that all 137 units at Market Street are for seniors, with 47 at 30-40% AMI. No formal vote was taken as the item was informational.

Item 5: 2024 Fall Federal Affairs Update

• Dion Akers (Senior Advisor) and the Holland & Knight team (Eve Maldonado O'Toole, Lori Hedinger, Joe O'Brien) provided an update.
• Election Recap: Republicans won the trifecta (House 220-215, Senate 53-47). Speaker Mike Johnson retained his position; Senate Majority Leader is John Thune.
• Appropriations: FY2025 funding expires December 20, 2024; a continuing resolution through March 2025 is likely. An emergency supplemental includes $310 million for Tijuana River pollution, expected to pass with reductions.
• WRDA: House passed the Water Resources Development Act, authorizing $200 million for countywide water projects and $10 million for the Tijuana River Valley watershed. Senate expected to pass.
• Budget Reality: The Trump administration will likely use budget reconciliation for tax credits, border/immigration, and healthcare reforms. Surface transportation authorization (expiring Sept 2026) will emphasize roads, bridges, and freight over transit.
• Policy Impacts: Anticipated priorities include immigration enforcement (mass deportation, Remain in Mexico, pressure on sanctuary cities), HUD budget cuts, focus on fentanyl, deregulation (EPA, water sector), and rescinding Biden-era police accountability orders.
• Action Items: Obligate outstanding grant agreements before January 20, 2025; develop internal rapid response for immigration issues; leverage remaining discretionary grants from the Bipartisan Infrastructure Law.
• Committee Discussion: Chair Campillo asked about leveraging the military angle for Tijuana River funding, noting national security and troop readiness. Holland & Knight confirmed bipartisan support due to the military impact. Campillo also questioned potential deregulation of PFAS and lead/copper rules; the team responded that PFAS regulation under Safe Drinking Water Act is likely to continue, but Superfund designation may not proceed. Vice Chair Lee asked about federal water ratepayer assistance; the team noted bipartisan support for a permanent Low-Income Water Assistance Program. No formal action.

Item 6: Presentation from the San Diego Diplomacy Council

• Heidi Nuff (Executive Director) and Lulu Bonning (Senior Manager) described the council’s 45-year mission of citizen diplomacy, connecting San Diego leaders with global counterparts via State Department exchange programs. In 2023, they hosted 673 international visitors from 124 countries across 59 programs, generating an estimated $2.5 million in economic impact from hotels and transportation. Programs include professional exchanges (e.g., social media influencers from South Korea, Romanian wheelchair basketball players) and youth programs (binational youth summit, summer camp, sports diplomacy). The council competes against 90 other U.S. cities for these 50% State Department-funded programs.
• Funding: Historically received a TOT grant from the city, which was cut in the last budget; they are seeking cultural funding. They also pursue state and private foundation support.
• Committee Discussion: Chair Campillo asked about the number of students impacted. Staff cited thousands through school visits and 25 interns per year. They are surveying alumni of their summer camp to track career pathways. Campillo praised the program and offered continued partnership. No formal action.

Key Outcomes

• The committee unanimously adopted the Creative City Cultural Plan (Item 3), directing staff to develop an implementation plan considering the defeat of Measure E.
• The Bridge to Home Round 4 recommended projects were presented as informational; loan agreements will be brought to City Council for approval in 2025.
• The federal affairs update was received as information; staff will continue to obligate grants and monitor immigration, housing, and water policies.
• The San Diego Diplomacy Council’s presentation was received as information; the committee expressed support for its work.