Economic Development Committee Meeting - Nov 5, 2025
Economic Development and Intergovernmental Relations Committee Meeting - November 5, 2025
The Economic Development and Intergovernmental Relations Committee convened on November 5, 2025, to review seven agenda items ranging from lease amendments and cannabis regulation to the city's legislative platform and major infrastructure proposals. The committee unanimously approved four items after public testimony, with significant debate focused on the need to expand local control over state mandates and the necessity of enhancing enforcement against the illicit cannabis market.
Consent Calendar
- Item 1 (Approved 4-0): Approval of committee minutes from October 8, 2025.
- Item 2 (Approved 4-0): Third amendment to the flat-rate lease agreement with Air Center MYF. Councilmember Dr. Campbell requested a pull from the consent agenda for a detailed verbal presentation. The amendment extends the lease term until March 8, 2027, to allow time for environmental permits (NIPA), adds two option parcels, increases annual rent from $107,000 to $148,000, and raises the total investment commitment from $10 million to $15 million.
Public Comments & Testimony
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General Public (Non-Agenda):
- A speaker expressed full support for smoke-free housing ordinances, citing safety benefits and eligibility for additional points under the Low-Income Housing Tax Credit program.
- Terry Ann Skelly expressed gratitude for past youth internship programs but opposed marijuana advertisements targeting young adults, asking the committee to remove billboards suggesting cannabis as a solution for anxiety.
- Armin King strongly opposed the smoke-free housing ordinance as too broad, arguing it discriminates against seniors and patients who utilize cannabis for medical purposes. He urged the committee to prioritize "cannabis social equity" over industry privileges, stating that social equity advocates were excluded from the current process.
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Agenda Item 4 (Cannabis Delivery):
- Donal Nelson (Delivery Driver): Expressed strong support for the proposed permit and enforcement mechanisms, arguing they are necessary to protect consumers from untested, contaminated products and to ensure fair competition for licensed, background-checked drivers.
- Todd Walters (UFCW Local 135): Expressed full support for the private right of action and enforcement mechanisms, stating that labor standards and job quality are under attack by the illicit market.
- Phil Rath (UMMC): Expressed full support for the initiative, emphasizing that over 50% of cannabis sold in the city is untaxed and that the current system requires stronger enforcement to stop bad actors.
- Terry Best: Expressed concern regarding the vague language of the "private right of action" and urged the committee to prioritize social equity for those harmed by past prohibition.
- Armin King: Expressed skepticism that stakeholder engagement only included industry monopolizers rather than true community advocates. He argued the item is not ready to move forward without prioritizing social equity.
- Becky Rapp: Expressed opposition to expanding delivery-only licensing, arguing it complicates enforcement and stretches limited resources; she recommended a full audit of the existing system first.
- Judy Strang: Expressed cautious support for the permitting process to understand the industry but voiced deep concerns regarding the city's current capacity to enforce regulations.
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Agenda Item 5 (Legislative Platform):
- Paul Kruger: Expressed strong concern that the platform was failing to assert local control against state mandates like SB 79 and Surplus Land Act, specifically urging the council to oppose overriding the 30-foot height limit and voter-approved initiative measures.
- AJ Estrada: Expressed opposition to the language supporting automatic license plate readers (ALPR), arguing it facilitates mass surveillance that conflicts with immigration protections and First Amendment activities.
- Jeff Huder: Expressed concern that the Mayor unilaterally supported SB 79 without Council input, urging a formal process where the Council President must sign off on controversial positions.
- Kate Callan: Expressed criticism of Mayor Gloria for not consulting the Council before announcing support for SB 79, calling for more transparency and a mechanism to preserve local control.
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Agenda Item 6 & 7 (Grant Report & Seaport Update): No public comments or opposition presented.
Discussion Items
- Item 2 (Air Center MYF Lease): Councilmember Campbell requested a presentation to clarify the lease terms, specifically noting the extension request was to await permits rather than a definitive two-year wait. The committee confirmed the rent structure includes CPI adjustments and a fair market value catch-up in the 11th year. Councilmember Campbell expressed full support for the recommendation.
- Item 3 (Alps Hospitality Lease): Councilmember Campbell asked for clarification on the "Surplus Land Act" compliance, confirming the lease does not constitute a disposition of surplus land. He sought details on the inclusion of "Top Golf" and "Pick n' Play" facilities within the 19.27 acres and confirmed the solar system will be net-metered with SDG&E, not selling energy externally. Councilmember Campbell expressed support, noting the lease significantly improves financial returns and environmental benefits over the previous agreement.
- Item 4 (Cannabis Delivery Permits): Councilmember Campbell expressed a desire for a higher maximum penalty fine (>$800,000) or the removal of a cap entirely to ensure non-compliant operators face sufficient financial risk. Councilmembers Campbell and Foster emphasized that the illicit market's profitability currently outweighs existing penalties. The committee moved to adopt the staff recommendation to amend the Municipal Code.
- Item 5 (Legislative Platform):
- Chair Kempio: Moved to adopt the platform with an amendment clarifying the stance on the Surplus Land Act, specifically excluding dedicated public parkland (like Mission Bay Park) to align with the City Charter and voter-approved measures against rezoning parks. He also proposed a new process where the City President signs off on major legislative positions to ensure Council input.
- Councilmember Campbell: Expressed strong support for the Chair's amendment on parkland protection. He also raised three additional legislative asks: reforming property tax distribution percentages to favor the city, enacting state-level THC content quality controls, and addressing the safety of trains on the bluffs to prevent landslides.
- Councilmember Foster: Expressed support but noted ongoing concerns regarding ALPR technology, unfunded state mandates, and the need for further clarification on specific housing language before full Council adoption.
- Item 6 (Grant Report): Staff reported a record number of applications ($600M) but a decline in awards due to a lack of federal earmarks. Councilmember Foster questioned the impact of matching fund requirements, which staff confirmed remain a primary impediment to securing grants.
- Item 7 (Seaport San Diego Update): Councilmember Campbell expressed enthusiastic support and offered to extend the existing ban on motorized vehicles to the new boardwalk area to ensure pedestrian safety. He praised the project's design and labor agreements. Council President Pro Tem Lee noted the project's long timeline but emphasized the importance of securing financing pathways like the EIFD to ensure success.
Key Outcomes
- Item 1: Approved unanimously (4-0).
- Item 2: Approved unanimously (4-0). Authorized the executive to sign the lease amendment with Air Center MYF.
- Item 3: Approved unanimously (4-0). Authorized the executive to sign the 50-year lease with Alps Hospitality Inc. and the sublease for solar panels.
- Item 4: Approved unanimously (4-0). Directed District 7 office to work with the City Attorney's office to amend the Municipal Code, establishing a permit for out-of-town cannabis delivery services, raising civil penalties to $20,000 per day (max $800,000 total), and establishing a local private right of action.
- Item 5: Approved unanimously (4-0) with Chair Kempio's amendment regarding the Surplus Land Act and dedicated parkland. Directs the committee to bring the revised platform to the full City Council for adoption.
- Item 6: Presented for information only; no vote required.
- Item 7: Presented for information only; no vote required.
Meeting Transcript
Good afternoon. Welcome to the Economic Development and Intergovernmental Relations Committee meeting of November 5th, 2025. Our committee liaison Sarah Jordan will provide information and instruction for the public to participate in today's meeting. Thank you, Chair Kempio. 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 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. Thank you. I'll now call the meeting to order. Vice Chair Foster. Councilmember Campbell. Council President Pro Tem Lee. Here I'm also present, also present. Uh Noah Fleischmann Fiscal and Policy Analyst from the Office of the IBA, Deputy City Attorney Brian Bune from the Office of City Attorneys, and Chris Ackerman Ivela, Policy Advisor from the Office of the Mayor. Sarah, please continue with public comment instruction. Thank you, Chair Campio. If you're in person, please complete a speaker slip located at the entrance of chambers 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 begins, and 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 160-324-0614 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 24 or online, there may be delay. Please participate via the audio on your phone and mute your TV or computer when it's 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 tapping the raise your hand icon, or if you're a called participant, by pressing star nine. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you, Sarah. A quorum is now present. We'll begin with non-agenda public comment, and the council members respect and appreciate the public's input and are fully committed to protecting every participant's free speech rights at council committee meetings. Per rule two point seven, 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, and each speaker will have two minutes. Smoke-free housing is desirable and more marketable. Smoking can cause fires and significant damage to residential property. Smoke free housing can qualify. And finally, smoke-free housing can increase a property's competitiveness in the low-income housing tax credit program. The California Tax Credit Allocation Committee awards an extra point for properties that prohibit smoking in at least 50% of units, making these properties more likely to receive a tax credit. So I pass these on to you and hope you'll view them and other economic business benefits as good reason to support smoke-free housing ordinance here as other cities are doing. Thank you so much for your time. Thank you for your comment. Our next speaker is Terry Ann Skelly. Please unmute and begin. Good afternoon, economic development and intergovernmental relations committee. Chair Campillo, my name is Terry Ann Skelly. It is very important how an end on what our city spends its money. I thank you for serving on this important committee. As a mother of three adult sons, I was extremely pleased that this committee has supported in the past internship programs for teens and young adults as part of the city budget.
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