OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Economic Development and Intergovernmental Relations Committee Meeting – June 11, 2025

Economic Development & Intergovernmental Relations Committee — Wednesday, June 11, 2025
BodySan Diego, California
SessionEconomic Development & Intergovernmental Relations Committee
DateWednesday, June 11, 2025
StatusFILED
Video Record
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2:28

Good afternoon, everyone.

2:29

Welcome to the Economic Development and Intergovernmental Relations Committee meeting of June 11, 2025.

2:34

Our committee liaison Sarah Jordan will provide information and instruction for the public to participate in today's meeting.

2:40

Thank you, Chair Campio.

2:41

Well, members of the public are able to attend the meetings in person.

2:44

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.

2:51

Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the queue closes.

2:57

This virtual queue will close when the last speaker finishes speaking, or five minutes after in-person testimony ends, whichever occurs first.

3:03

This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business.

3:17

Council President Pro Tem Lee.

3:19

Councilmember Campbell.

5:00

Uh, just as a note, we will hear non-agenda public comment at the end of the meeting today.

5:04

Uh, we'll move to committee members, mayoral staff, city attorney, IBA comments, uh, any continuances seeing and hearing none will dispense with the approval of our consent agenda.

5:13

Do we have requests to pull from the consent agenda?

5:15

Seeing none, Sarah, please proceed with public comment.

5:18

Thank you, Chair.

5:19

The public comment period for the consent agenda is now open.

5:21

The consent agenda includes item number one, approval of the committee minutes from May 14th, 2025.

5:26

Item number two, proposed third amendment to lease between neighborhood house association and the city of San Diego at 475 West Broadway and Columbia neighborhood of the downtown community plan area.

5:37

Each speaker will have one minute.

5:40

We've received one slip here in the committee room.

5:43

If Joyce and Yada would please approach the lectern.

5:53

And you have indicated you wish to speak to item number two.

5:56

So I will place one minute on the clock.

5:58

Yes, thank you so much.

6:00

Uh, Joy Sonia District.

6:02

Uh, this is a great item.

6:04

I know Chair Campillo loves this.

6:07

So uh, but about this this piece of uh this whole area there, the property, the building and so forth.

6:13

It's gonna be ultimately it has to be used for uh, you know, to support uh the development of affordable housing.

6:21

So we're always excited about that.

6:23

And it's a little difficult for me to look at child care with the neighborhood uh, you know, house uh people and child care and then making room for affordable housing, so maybe we could fit the neighborhood into the affordable housing project someday.

6:39

So uh let's see um extended to uh August of of the next year, 12 months.

6:47

I had a question about the I didn't have a chance to read it thoroughly, but you're amending the the uh agreement for modified delinquent payment.

6:56

So I didn't know whether there was some trouble there with making their payment or not.

7:00

So that's it.

7:02

It's a good item.

7:03

I approve it.

7:03

Love to all.

7:04

Thank you for that concluding remark.

7:06

I'll begin the five-minute timer for all those in the virtual queue to indicate if they wish to provide comment on the consent agenda.

7:12

We'll begin testimony with the original.

7:14

If you can please unmute and let us know which item or items you'll be speaking to.

7:18

Both of them.

7:19

All right, two minutes, please begin.

7:21

So with the minutes, last time you were talking about child care and that you mean the other item you're talking about child care as well.

7:27

And I don't think that you guys are competent uh to be dealing with children or you know, hiring people to deal with children when the county of San Diego um and even the city, I mean, look at the Belinski Center is in the city.

7:42

You guys don't have any issues with that um entity being a pedophilia ring, basically, um abusing children for decades, um, which puts a stain on the entire San Diego San Diego region.

7:57

Um, but you know, you can't be trusted to basically, you know, provide this kind of service, especially with all of the things that you you don't you don't know what a woman is.

8:06

You think that a woman can be a man.

8:08

Um, I mean a man can be a woman and whatever, vice versa.

8:12

Um, you there's sexualization of children in schools.

8:16

Um, all of the libraries that you guys like to fund are sexualizing children.

8:21

They're teaching them pornographic things like incest and how to use butt plugs and all of the nefarious things.

8:29

So when you talk about, you know, having anything to do with children, plus look at Tent City, people are dying there on a regular basis, right?

8:37

We just had Tammy Jackson die on Monday, and people are being sexually assaulted.

8:42

So when you guys do nothing about that kind of things, those kind of things that happen in San Diego, and then you want to deal with vulnerable populations.

8:52

I say absolutely not, because even with the like you should you need to be providing affordable housing.

8:59

Instead, right now you're making money off of children and the people haven't even paid their rent.

9:03

So, like good idea on you for extending the contract, right?

Discussion Breakdown — Share of Meeting
Tourism██████████████████████22%
Cannabis Regulation█████████████████17%
Public Comment████████████12%
Public Engagement███████████11%
Public Works███████████11%
Economic Development█████5%
Public Safety█████5%
Procedural████4%
Public Health████4%
Summary of Proceedings

Economic Development and Intergovernmental Relations Committee Meeting – June 11, 2025

The Economic Development and Intergovernmental Relations Committee of the City of San Diego met on June 11, 2025, at 10:00 AM. The committee unanimously approved the consent calendar, the San Diego Tourism Marketing District Fiscal Year 2026 Report of Activities, the Downtown San Diego Partnership operating and management agreement for the renewed downtown Property and Business Improvement District (PBID), and an amendment to cannabis outlet hours of operation. The committee also received an informational presentation on the impacts of federal executive orders on San Diego's nonprofit sector from the University of San Diego's Nonprofit Institute. All votes were unanimous with all four members present: Chair Campillo, Vice Chair Foster, Pro Tem Lee, and Councilmember Campbell.

Consent Calendar

  • Item 1 – Approval of Minutes (May 14, 2025): Approved unanimously.
  • Item 2 – Proposed Third Amendment to Lease with Neighborhood House Association at 475 West Broadway: Approved unanimously as part of the consent calendar.
  • During public comment, speaker Joyce Sanyata (District 3) expressed support, noting the property's eventual use for affordable housing and asking about a modified delinquent payment provision. Another anonymous virtual speaker expressed strong opposition to the city's involvement with children and vulnerable populations.

Public Comments & Testimony

  • Consent Calendar: Judy Strang spoke about AB 762, a bill banning disposable vapors, and urged the city to send a letter of support. Blair Beekman initially thought item 2 was about cannabis hours and later spoke about the minutes, expressing support for the city's work with state and federal agencies regarding ICE raids.
  • Tourism Marketing District (Item 3): Speakers included Chris Allen Wynne (District 6, business owner in Convoy, Tourism Accelerator participant) who supported the budget; Ernestine Brown (District 2, Old Town Soap Company, veteran-owned) who supported it; Kathleen Lippett who urged the city to address cleanliness and homelessness; an anonymous virtual speaker who called San Diego a "human trafficking destination" and opposed the TMD; Blair Beekman who expressed nervousness about out-of-town fees and urged open dialogue; and Becky Rapp who supported tourism but called for stronger law enforcement coordination, referencing a sex trafficking bust during Comic-Con.
  • Downtown PBID (Item 4): Betsy Brennan, President and CEO of the Downtown San Diego Partnership, asked for support, highlighting 25 years of the Clean and Safe Program, 74% property owner approval, and services including 24/7 janitorial, safety, beautification, and business retention. Joyce Añada (District 3) raised concerns about collaboration, bollards, and an elevator at the pedestrian bridge. An anonymous virtual speaker accused the partnership of abusing homeless people and called for defunding. Blair Beekman spoke about surveillance and smart kiosks, urging mature technology discussions. Marco Espinoza commented on the use of the word "over" as potentially condescending.
  • Cannabis Hours (Item 5): Phil Rath, representing the UMMC trade association, supported the amendment, citing benefits for businesses, employees, and tax revenue, and noted that illegal sales currently occur after 9 p.m. Scott Chipman opposed, cautioning that police had not approved the change and citing public health costs. Becky Rapp, Peggy Walker, Terry Ann Skelly, Kathleen Lippett, and Megan Stewart opposed on public health, safety, and revenue grounds. Rakesh Goyle, a cannabis outlet owner, supported the extension as a tool to compete with the illicit market. Blair Beekman said he thought the item was on consent and noted attempts at compromise. Marco Espinoza yielded to the original supporter.
  • Nonprofit Institute (Item 6): Joyce Añada praised the presentation and encouraged resilience. Michael Brando called the presentation "deranged psychotic" and criticized government spending. An anonymous virtual speaker condemned nonprofits and said they should be "defunded." Blair Beekman discussed HUD funding and nonprofit accountability. Marco Espinoza praised the presentation's format.
  • Non-Agenda Public Comment: Michael Brando spoke about COVID and government overreach; Joyce Añada spoke about deferred maintenance at the San Diego Convention Center; Blair Beekman spoke about the budget, ALPRs, and trash issues; an anonymous virtual speaker made critical comments about government and nonprofit actions.

Discussion Items

  • Item 3 – Fiscal Year 2026 San Diego Tourism Marketing District Report of Activities:
    • Presentation by Elizabeth Studebaker, Colleen Anderson, and Carrie Kapich. Key points: Tourism sustains 1 in 8 jobs in the region, with $14.8 billion in direct visitor spending in 2024 and a total economic impact of nearly $22 billion. The TMD is funded by a 2% assessment on hotels with more than 70 rooms. Fiscal year 2026 available funds are approximately $62 million ($47.1 million from assessments, interest, and penalties; $15.1 million from prior year savings and carryforward). $47.1 million is recommended for the San Diego Tourism Authority (SDTA), with $3.3 million for other entities. The projected 50.4 million in total funding is anticipated to yield $1.5 billion in hotel room night revenue, a 30:1 ROI. SDTA plans to target leisure travelers, drive markets, and international markets (10 international programs, including new France, Netherlands, and Brazil). 2024 visitation was 32 million, below 2019's 35 million. International travelers make up only 10% of visitation vs. 40–50% in LA/NY.
    • Committee discussion: Chair Campillo asked about arts and culture marketing. Pro Tem Lee asked about projected growth and international impacts, noting the city's reduced tourism occupancy tax expectations. Vice Chair Foster asked about the Tourism Accelerator Program and group-based deficits for 2026–2027.
    • Motion by Chair Campillo, seconded by Pro Tem Lee. Passed unanimously.
  • Item 4 – Operating and Management Agreement with Downtown San Diego Partnership for the Renewed Downtown PBID:
    • Presentation by Michelle Munoz and Elizabeth Studebaker. The downtown PBID includes approximately 14,100 parcels and added 10 additional blocks. The agreement is for 10 years. Key changes: updated city baseline services exhibit, annual budget delivery by April 1, increased city administration fee from $150,000 to approximately $251,000 with 3% annual increase. The Downtown San Diego Partnership has operated the PBID for 25 years; renewal was previously approved by property owners with 74% approval.
    • Committee discussion: Pro Tem Lee seconded the motion, praising the partnership. Vice Chair Foster asked about high-level strategies. Motion by Chair Campillo, seconded by Pro Tem Lee. Passed unanimously.
  • Item 5 – Amendment to Hours of Operation for Cannabis Outlets:
    • Presentation by Chris Ackerman-Avila, Policy Advisor for Mayor Todd Gloria. The proposal amends Section 1410504 of the Municipal Code to allow cannabis outlets to open at 6 a.m. instead of 7 a.m. and close at 10 p.m. instead of 9 p.m., aligning with state law. It is estimated to generate an additional $1.7 million in cannabis business tax revenue and $170,000 in local sales tax for FY 2026. SDPD crime analysis (300-foot buffer, Jan 1, 2020 – May 31, 2025, 53 months) showed no crime spike. The Planning Commission voted unanimously to recommend approval on May 29, 2025. The City Council previously voted 8-1 on March 10, 2025, to increase the cannabis business tax from 8% to 10%, with several council members requesting this hours proposal.
    • IBA comment: Sergio from the Office of the Independent Budget Analyst noted that the projected $1.7 million in revenue is already reflected in the FY 2026 budget.
    • Committee discussion: Vice Chair Foster expressed support, called it "common sense," and noted ongoing work to combat the illicit market. Pro Tem Lee seconded, citing alignment with state law and surrounding jurisdictions. Chair Campillo clarified that San Diego adopted its hours before the state. Lt. Swanson from SDPD confirmed data showed no increased crime near outlets.
    • Motion by Vice Chair Foster, seconded by Pro Tem Lee. Passed unanimously.
  • Item 6 – Insights from the Nonprofit Institute: How Federal Executive Orders Are Reshaping Our Local Nonprofit Landscape (Information Item):
    • Presentation by Christina Sanchez Kerr and Dr. Tessa Tinkler of the University of San Diego's Nonprofit Institute. Key findings: San Diego County has over 13,000 nonprofits employing over 100,000 workers with $7 billion in wages annually (an 18.8% increase from 2023). Surveys (400+ initial respondents, 130–150 in bi-weekly follow-ups) found: 45% of nonprofit leaders have changed service delivery, 30% have reduced services, and 58% anticipate needing to change services. 56% of surveyed nonprofits receive federal funding, with an average of 31% of their budget from federal sources. Leaders requested rapid response funding, stable policies, partnership support, and technical assistance.
    • Committee discussion: Pro Tem Lee shared his own nonprofit experience and noted the council restored funding for CPPS and ACCF in the budget. Chair Campillo asked about donor behavior and state budget impacts; presenters indicated foundations are wary but some are stepping up, and nonprofits expect decreases at all government levels. Vice Chair Foster expressed concern for nonprofits in District 4, particularly Neighborhood House Association and Head Start.
    • No action required; this was an information item.

Key Outcomes

  • Consent Calendar: Approved unanimously (items 1 and 2).
  • Item 3 – Tourism Marketing District FY 2026 Report of Activities: Approved unanimously, including associated expenditures and cost recovery.
  • Item 4 – Downtown PBID Operating and Management Agreement: Approved unanimously.
  • Item 5 – Cannabis Outlet Hours of Operation: Approved unanimously, recommending the City Council adopt the ordinance.
  • Item 6 – Nonprofit Institute Presentation: Received as information; no vote taken.
  • The committee adjourned to its next regularly scheduled meeting on Wednesday, July 2, 2025, at 2:00 p.m.

Meeting Transcript

Good afternoon, everyone. Welcome to the Economic Development and Intergovernmental Relations Committee meeting of June 11, 2025. Our committee liaison Sarah Jordan will provide information and instruction for the public to participate in today's meeting. 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 queue closes. This virtual queue will close when the last 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. Council President Pro Tem Lee. Councilmember Campbell. Uh, just as a note, we will hear non-agenda public comment at the end of the meeting today. Uh, we'll move to committee members, mayoral staff, city attorney, IBA comments, uh, any continuances seeing and hearing none will dispense with the approval of our consent agenda. Do we have requests to pull from the consent agenda? Seeing none, Sarah, please proceed with public comment. Thank you, Chair. The public comment period for the consent agenda is now open. The consent agenda includes item number one, approval of the committee minutes from May 14th, 2025. Item number two, proposed third amendment to lease between neighborhood house association and the city of San Diego at 475 West Broadway and Columbia neighborhood of the downtown community plan area. Each speaker will have one minute. We've received one slip here in the committee room. If Joyce and Yada would please approach the lectern. And you have indicated you wish to speak to item number two. So I will place one minute on the clock. Yes, thank you so much. Uh, Joy Sonia District. Uh, this is a great item. I know Chair Campillo loves this. So uh, but about this this piece of uh this whole area there, the property, the building and so forth. It's gonna be ultimately it has to be used for uh, you know, to support uh the development of affordable housing. So we're always excited about that. And it's a little difficult for me to look at child care with the neighborhood uh, you know, house uh people and child care and then making room for affordable housing, so maybe we could fit the neighborhood into the affordable housing project someday. So uh let's see um extended to uh August of of the next year, 12 months. I had a question about the I didn't have a chance to read it thoroughly, but you're amending the the uh agreement for modified delinquent payment. So I didn't know whether there was some trouble there with making their payment or not. So that's it. It's a good item. I approve it. Love to all. Thank you for that concluding remark. I'll begin the five-minute timer for all those in the virtual queue to indicate if they wish to provide comment on the consent agenda. We'll begin testimony with the original. If you can please unmute and let us know which item or items you'll be speaking to. Both of them. All right, two minutes, please begin. So with the minutes, last time you were talking about child care and that you mean the other item you're talking about child care as well. And I don't think that you guys are competent uh to be dealing with children or you know, hiring people to deal with children when the county of San Diego um and even the city, I mean, look at the Belinski Center is in the city. You guys don't have any issues with that um entity being a pedophilia ring, basically, um abusing children for decades, um, which puts a stain on the entire San Diego San Diego region. Um, but you know, you can't be trusted to basically, you know, provide this kind of service, especially with all of the things that you you don't you don't know what a woman is. You think that a woman can be a man.

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