Economic Development and Intergovernmental Relations Committee Meeting - May 14, 2025
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Economic Development and Intergovernmental Relations Committee Meeting - May 14, 2025
This meeting of the Economic Development and Intergovernmental Relations Committee covered consent agenda items, including approval of minutes, a development agreement, and resolutions supporting state childcare bills. The committee received updates on federal and state affairs, as well as a sales and marketing update from the San Diego Convention Center Corporation. Public comment focused on environmental health, cannabis regulation, workforce programs, child care, and convention center operations.
Consent Calendar
- Item 1: Approval of committee minutes from March 5, 2025.
- Item 2: Fifth Amendment to the Disposition and Development Agreement with SDEC LLC for the San Diego Energy Equity Campus at Valencia Business Park.
- Item 3: Resolution in support of Senate Bill 99 (Family Child Care Homes, United States Armed Forces).
- Item 4: Resolution in support of Assembly Bill 752 (Child Daycare Facilities).
- All items passed unanimously (4-0) after a motion by Chair Campillo and second by Councilmember Campbell.
Public Comments & Testimony
- Non-Agenda Public Comment: Speakers addressed:
- Cesar and Parita Javier: Raised health concerns from industrial activities in residential zones, citing diagnosed conditions related to air pollution. Offered solutions but did not specify a position on agenda items.
- Madison (virtual): Urged caution on expanding cannabis activities, citing potential negative economic consequences (healthcare costs, impaired driving, youth addiction) as a cautionary tale from e-cigarette use. Expressed concern about youth-appealing edibles.
- Terry Ann Skelly (virtual): Supported the Employ and Empower Youth Workforce program but opposed marijuana businesses and smoke shops in neighborhoods due to historic high rates of youth marijuana and hallucinogen use (ages 19-30) per NIH/NIDA data.
- Becky Rapp (virtual): Urged adoption of local regulations on intoxicating hemp products aligning with California Department of Public Health emergency rules, citing cities like Sacramento, Santa Rosa, and Long Beach that have enacted ordinances.
- Joyce Yada (virtual): Praised Business Improvement Districts (BIDs) for performance metrics and economic data, specifically the Gaslamp BID, highlighting vacancy rates, jobs, and staffing apathy in the restaurant/retail/entertainment sector.
- Aaron Hoogbloom (virtual): Supported AB 752 (co-location of child care with multifamily housing) and SB 99 (military family child care) to reduce administrative burden and increase child care supply.
- Judy Strang (virtual): Supported youth workforce programs and internships, expressed concern about daily marijuana use leading to addiction among young adults.
- Consent Agenda Public Comment:
- Cesar Javier (in-person): Expressed hope in the committee’s leadership and transparency, though comments were largely tangential.
- Speaker (phone 8700, virtual): Supported Item 2 (noting 72 permanent FTE jobs, 51% low-to-moderate income) and Items 3 & 4. Also shared BID job data from Southeast Diamond BID (net 879 jobs gained).
- Jimena Villasenor (virtual, San Diego Regional Chamber of Commerce): Voiced strong support for SB 99, citing the chamber’s endorsement and the importance of supporting military families’ child care needs.
- Marco Espinosa (virtual): Supported child care items 3 & 4, noting high costs.
- Original (virtual, name unclear): Opposed child care items, alleging sexual abuse in facilities and criticizing the city’s pride flag; position was against consent items.
- Maya Munier (virtual, District Representative for Blake Spear): Supported SB 99, explaining DoD certification waivers would speed up licensing for military family child care providers.
- Item 7 – Federal Affairs Update Public Comment:
- Cesar Javier (in-person): Commented on financial efficiency and lean government, tangential.
- Phone 8700 (virtual): Expressed concern about immigration, grants, and excitement about Tijuana River pollution funds ($650M for wastewater treatment plant).
- Item 6 – State Affairs Update Public Comment:
- Cesar Javier (in-person): Emphasized leadership, living within means, and public involvement.
- Phone 8700 (virtual): Thanked for presentation, noted deficit, and urged resilience.
- Becky Rapp (virtual): Urged prioritizing parks, recreation centers, and youth programs in budget, citing reports of marijuana-induced psychosis among teens.
- Item 5 – Convention Center Update Public Comment:
- Cesar Javier (in-person): Criticized corruption and inequality, questioned financial benefits to seniors and homeless.
- Phone 8700 (virtual): Urged addressing deferred maintenance and unsafe conditions (boiler mentioned).
- Becky Rapp (virtual): Acknowledged economic benefits but raised concerns about sex trafficking associated with large events like Comic-Con.
- Blair Beekman (virtual): Mentioned public safety, civil rights, and technology accountability downtown.
Discussion Items
- Item 7: 2025 Federal Affairs Update – Presented by Walt Bishop (Director of Government Affairs) and the federal lobbying team (Holland & Knight).
- Summary of Trump administration first 100 days: Over 100 executive orders, including reviews of Biden-era grants, sanctuary city enforcement (subject to injunction), and recognition of Tijuana River crisis (EPA Administrator Zeldin toured, $650M secured for wastewater treatment plant).
- FY 2026 appropriations: President’s “skinny budget” proposed deep cuts to housing, community development, health. Top appropriators largely dismissed it. Expect likely continuing resolution or full-year CR.
- Community project funding: 10 projects totaling $10.4M were lost in FY25 due to CR; most resubmitted for FY26 (housing, shelters, infrastructure, public safety, wildfire mitigation, stormwater).
- Budget reconciliation: House markups passed along party lines; Ways & Means did not touch tax-exempt muni bonds; expanded low-income housing tax credit; revived opportunity zones; repealed many clean energy tax credits; proposed SALT cap deduction of $30,000. Energy & Commerce added work requirements for Medicaid, rolled back IRA green funds. Agriculture cut SNAP/work requirements. Next step: full House passage by Memorial Day, uncertain in Senate.
- Item 6: 2025 State Affairs Update – Presented by Moira Top (state lobbyist).
- Budget: Governor’s May Revision expected to show ~$10B deficit due to federal uncertainties. Medi-Cal cuts for undocumented immigrants capped; co-payments proposed for out-years. Governor accelerated Delta tunnels water project.
- Legislation: ~2,300 bills introduced; housing bills top priority. Key city-sponsored bills: SB 569 (encampment on Caltrans property), SB 92 (density bonus law loopholes), SB 16 (homelessness planning). Also tracked bills on human trafficking (AB 379, AB 63), opioid/xyosine, red-light cameras (SB 609), and community violence intervention (AB 785).
- Behavioral health: Bills to tighten LPS Act, include chronic alcoholism, clarify 5150 criteria.
- Outlook: Budget due June 15, placeholder likely; cap-and-trade reauthorization expected; constant response to federal actions.
- Item 5: Sales and Marketing Update from San Diego Convention Center Corporation – Presented by Rip Rippetoe (President/CEO), Sean Van Diver (Board Chair), Daniel Cooper Schmidt (SD Tourism Authority CEO).
- Purpose: Conventions bring outside dollars—$1.6 billion total regional economic impact in FY25, with 92 events, 750,000 attendees, $38 million in hotel and sales tax.
- Highlights: Medical shows (e.g., American Society of Hematology drew 30,000+), corporate events (Tableau), international events. Unique summer business (SHRM, Esri, Comic-Con, TwitchCon).
- Trends: International travel flat year-over-year; Canadians down nationwide but San Diego less impacted. New flights: KLM to Amsterdam, Copa to Panama. NIH funding concerns could reduce medical convention attendance. Aging facility facing competitive pressure as other cities upgrade (Las Vegas, Denver, Austin, Dallas).
- Booking strategy shifted to focus on short-term corporate business for higher spend per attendee. FY26 forecast: $1.5 billion impact, 90 events, 805,000 attendees, $31 million in taxes.
Key Outcomes
- Consent Agenda: Approved unanimously (4-0). Items 1-4 passed.
- Federal Affairs Update: Informational only; no action taken.
- State Affairs Update: Informational only; no action taken.
- Convention Center Update: Informational only; no action taken. Committee members expressed concern about deferred maintenance and competitive risk, asked about international travel impact and NIH funding.
- Next meeting: Wednesday, June 11, 2025 at 2:00 PM.
Meeting Transcript
Let me stir it and taste it, and I'll let you know. It's hot coffee. Um, no, it's it's no, it's not too strong. It's on it's it's on the it's on the bolder side, but it's not syrupy thick. Yes. We're gonna need people in the back to keep it down, Mr. Handiver. Lower volume, sir. Welcome to the economic development and intergovernmental relations committee meeting of May 14th, 2025. Our committee liaison, Sarah Jordan will provide information and instruction for the public to participate in today's meeting. This will allow for better meaning management between the two platforms and ensure the committee is able to manage and conduct city business. We appreciate the public's cooperation. Vice Chair Foster. Council Member Campbell. Council President Pro Temley. Here. Please dial 1669-2545252 and when prompted input webinar ID 1603240614 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 24 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. If you wish to speak to a particular item, please wait for that item to be called and then raise your hand to speak by tapping the raise your hand icon, or if you're 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. Chair. Thank you, Sarah, for reviewing those instructions. The quorum being present as a note to the public, we'll be hearing agenda out of order today. After taking up consent agenda items one through four, we'll take the information agenda item number seven, then six, and then end with five. The council members respect and appreciate the public's input. We are fully committed to protecting every participant's free speech rights at council and committee meetings. Sarah, please proceed with the non-agenda public comment. Thank you, Chair Campio. Per Rule 2.7 non-agenda public comment is 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. Each speaker will have two minutes. We'll begin testimony with in-person speakers. Parita Javier and Cesar Javier, if you can please approach the lecture, and you will each have two minutes. Patient Sassaravier is a 73-year-old male under my care. He has been diagnosed with the following patient active problem list, hyperlipidemia. Chronic cough, exposure to air pollution, palpitations, obstructive sleep, apnea, persistent cough, DM2, generalized anxiety disorder, hypertension, ventacular, tachycardia, non-sustained. His ongoing symptoms can be released in this ongoing distress and environmental exposure to toxic fumes as reported by the patient. This letter was made with his consent. Sincerely you have still 41 minutes. So take advantage of uh here. This one ceramics tell them the abstract ceramic artist can be exposed to many hazards, including metals. Okay, time is off. You may see it already. Please say, Sarah Javier, the husband. This is her attorney. Opposite of the attorney representative mom. This is her diagnosis. And it says here moderate late onset Alzheimer's dementia. We are here not to give you a problem.
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