Economic Development and Intergovernmental Relations Committee Meeting - February 5, 2025
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Economic Development and Intergovernmental Relations Committee Meeting - February 5, 2025
The Economic Development and Intergovernmental Relations Committee met on February 5, 2025, at 10:00 AM (UTC). Chair Sean Elo-Rivera (Campillo) presided, with Pro Tem Marni von Wilpert (Lee) and Vice Chair Vivian Moreno (Foster) present. The committee approved a consent agenda, adopted the 2025 work plan, and discussed five substantive items including the defederalization of a revolving loan fund, the FY2024 citywide grants report, the Tourism Marketing District annual performance report, and a progress report on World Design Capital 2024.
Consent Calendar
The consent agenda included three items: (1) Approval of committee minutes from December 11, 2024; (2) Amendments to the San Diego Municipal Code to consolidate the Department of Real Estate and Airport Management under the Economic Development Department; and (3) A compensation agreement with Civic San Diego for the construction of the 14th Street Greenway Block Number 2 project. All items were approved unanimously by the three members present.
Public Comments & Testimony
Public comment was taken separately for non-agenda items and each agenda item. Key speakers and their positions:
- Cesar Javier (multiple items): Expressed strong opposition to a ceramics manufacturing operation at 5238 Streamview Drive, alleging toxicity, air pollution, and safety impacts on residents, particularly children and seniors. He criticized the mayor and councilmember for absenteeism and called for enforcement of state laws (SECA, Proposition 65). He also challenged the consent agenda items, questioning their legal basis and alleging corruption in the city's grant and financial management.
- Janet Bourgeois: Urged the city to protect existing low-income buildings, citing the Claremont Hotel (historic African American hotel) and California Theatre as neglected properties. She called for demolition or redevelopment of 101 Ash Street if housing is not feasible.
- Madison (virtual): Expressed concern about the commercialization of cannabis, specifically DoorDash's delivery of THC/CBD products, warning of increased youth access and negative economic consequences on vulnerable populations.
- Blair Beekman: Supported efforts to address the ceramic factory issue and encouraged dialogue for relocation. Also stressed the need for accountability in parking commission processes and the Quick Check placement and removal program.
- Terry Ann Skelly: Applauded the city's tobacco retailer licensure program and enforcement against illegal tobacco sales to youth. Quoted a student reporter on the proximity of vape/smoke shops to schools.
- Becky Rapp: Cited a study claiming legal cannabis did not deliver on promises (reduced opioid addiction, safer products, tax revenue) and highlighted increased consumption and opioid-related deaths. Called for a comprehensive assessment of marijuana's impact.
- Peggy Walker: Referenced a January 2025 CBS8 article on oversupply in San Diego's cannabis market, with city communications director Nicole Darling stating 80% of permitted businesses are barely surviving and black market holds 75% market share. Urged the committee to spearhead a full assessment of marijuana's economic and health impacts.
- Joy Sonyata (District 3): Spoke on multiple items. On the budget, she emphasized the importance of intergovernmental relations and urged departments to use an equity lens. On the grants report, she requested a full presentation at budget hearings. On the Tourism Marketing District, she asked the industry to apply an equity lens. On World Design Capital, she praised its success and systemic change.
- Gordon Borner: As former advisory board chair for the Revolving Loan Fund (RLF), he testified that the fund successfully provided funding to small and mid-sized businesses over 20+ years, including COVID-era loans that created and maintained jobs.
Discussion Items
- 2025 Committee Work Plan (Item 4): Chair Campillo presented the work plan, focusing on strengthening the local economy, bolstering tourism and creative economies, supporting child care, fair labor standards, and small business access to capital. The plan also includes intergovernmental advocacy for funding, federal housing programs, and behavioral health collaborations. The work plan was approved unanimously.
- Defederalization of San Diego Region Revolving Loan Fund (Item 5): Elizabeth Studebaker (Assistant Deputy Director for Economic Development) presented. The RLF, established in 2002 with $2.7 million (half EDA grant, half local match), has managed over 100 loans. The city is eligible for defederalization (release of federal interest) after operating for more than seven years. Staff recommended (a) approving a new MOU with Chula Vista to unwind the partnership, (b) submitting a request to the EDA to defederalize, (c) maintaining $2 million for lending activities (via intermediary lending through CDFIs), and (d) establishing a $1.6 million fund for non-lending activities (grants to nonprofits, federal grant matches). The advisory board will continue. The item passed unanimously.
- FY2024 Citywide Annual Grants Report (Item 6): Walt Bishop (Director of Government Affairs) and Brittany Bailey (Grants & Special Projects Manager) presented. In FY24, the city submitted 120 grant applications totaling over $332 million and received 82 awards worth $204 million. Awards were 65% state, 33% federal, and 2% local/private. Top grants included $10 million for urban forestry (Ready Set Grow San Diego), $6.2 million for homeless domestic violence victims, $5.6 million for the Fleet Science Center, and $4.1 million for the Coastal Rail Trail. The Transportation Department led with $130 million in applications. The report was received; no vote required.
- FY2024 San Diego Tourism Marketing District Annual Performance Report (Item 7): Colleen Anderson (Executive Director, San Diego Tourism Marketing District) presented. The TMD invested $51 million, generating $1.6 billion in hotel room night revenue (ROI of 31:1). San Diego ranked 3rd among top 25 U.S. hotel markets in occupancy (73.5%). TOT collections were $311 million; $169 million was fueled by TMD investment. Over 200,000 San Diegans are employed by tourism-related businesses. The San Diego Tourism Authority, which receives ~90% of TMD budget, returned a 32:1 ROI. Sports San Diego returned 19.1:1. The report was received; no vote required.
- Progress Report: Implementation of World Design Capital 2024 (Item 8): Jonathan Glus (Director, Department of Cultural Affairs), James White (Chief Programs Officer, WDC), and Christine Jones presented. WDC 2024 organized/supported over 600 events with 350,000+ attendees. Raised $11.3 million total ($7.5 million cash, $3.8 million in-kind); $3 million from the city. Media impressions reached 1.17 billion, with an 8.4x return on media investment. The Exchange Pavilion in Balboa Park hosted over 70 activations. Future plans include publishing an impact report in Q3 2025, establishing a foundation, evolving the design policy conference into a biennial Ideas Festival, and prototyping a community-centered design pilot with a chief design officer (outside funding only). Councilmember Lee expressed frustration that the $1 million council intended for grants was not fully delivered as such; only $550,000 went to 17 organizations, with the remainder used for the pavilion. Chair Campillo thanked staff and noted the importance of the designation for San Diego's global brand.
Key Outcomes
- Consent Agenda: Items 1–3 approved unanimously (3-0).
- 2025 Work Plan: Approved unanimously (3-0).
- RLF Defederalization: Motion to approve staff recommendations passed unanimously (3-0).
- Grants Report: Received and filed.
- Tourism Marketing District Report: Received and filed.
- World Design Capital Report: Received and filed. Chair Campillo directed that an update be brought to full council, possibly after the impact report is completed in Q3 2025. Councilmember Lee requested a detailed accounting of all $3 million city expenditure.
- Next Meeting: Scheduled for March 5, 2025 at 2:00 PM.
Meeting Transcript
Good afternoon. Welcome to the Economic Development and Intergovernmental Relations Committee meeting of February 5th, 2025. Committee liaison Sarah Jordan will provide information and instruction for the public to participate in today's meeting. Thank you, Chair Campillo. While members of the public are able to attend the meeting in person, this meeting is being televised and live streamed on the city's website, and the council administration will continue to arrange for the public to comment using this Zoom web 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 meaning management between the two platforms and ensure the committee is able to manage and conduct city business. Also present is Noah Fleischmann of the Office of the IBA, Kate Malcolm from the Office of City Attorney, and Stephen Hill from the Office of the Mayor. Sarah, please continue with public comment. If you are in person, please complete a speaker slip located at the entrance of the committee room and place it in the tray indicated 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 ends. 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. Inputting webinar ID one six zero three two four zero six one four 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. Please note that if you're watching via City TV channel twenty-four or online, there may be delay. Please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. Hearing none, do we have any continuance requests? Hearing none, let's take up non-agenda public comment. Good afternoon. Good afternoon. The City Mayor City, Council Member, City Attorney, City, Development Services, Department, City Planning Departments, San Diego, Police Department, City Land Use, and Environment Group. To whom this may concern that we residents of Choice Parkway, Leia, Streamview, Salta, Boise, Mina Limona, 51st Street, West Bank of Choya, Creek of District 9, certify and report that home business at 5238, Streamview Drive, Ceramics Manufacturing, and Kern Industrial Operation has been operating since December 17, 1984, and renewed December 31st, 2024 in our community designated as residential zone. Ceramic Kelln Industrial Activity is known to produce taxicity, polluting the air, we breathe, and impacting safety. And safety of residents, especially children and seniors with existing medical condition. Read the name. Read the name. Whether this would be a working uh item or not. You know, as uh researcher, we found out that uh the weak links is this. We have representative to the governing body planning uh in the air pollution control district, headed by the mayor. Oh, again, he's absent. And Councillor Rivera, I'm sorry, he's also absent. Consistent absentee. How could they learn and implement the guidelines of SICA? Which is the prime issue in all meetings. SECA that is state law mandates governance to ensure decent home, suitable surroundings, meaning air, water, land, including the ocean, be clean, be pristine and sustained, and for the sake of humans and the thing. When I say thing, the physical thing, non-living and the living things. We violated the state law, sirs, mom, land use and planning laws, environmental and land use laws. This uh law on uh proposition 65. If this is an economic uh thing, why should they not display the signboard? Why do that's display the products? They are hiding it in in colossion, the city treasurer's office in colusion the blue. It's the truth. It's the truth. Help us, attorney's office. Thank you for that concluding remark. Our next speaker is Janet Bourgeois. Good afternoon.
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