Economic Development & Intergovernmental Relations Committee Meeting - 10 Dec 2025
Economic Development & Intergovernmental Relations Committee Meeting - December 10, 2025
The Economic Development and Intergovernmental Relations Committee convened on December 10, 2025, to address non-agenda public comments, approve the Consent Agenda, and review informational updates on the Bridge to Home housing program and the San Diego Convention Center's sales performance. The meeting featured significant public testimony regarding marijuana regulation, the expediting of development, and youth internship opportunities, alongside deliberations on a cost overrun for a public art project and strategic recommendations for affordable housing development.
Consent Calendar
- Minutes Approval: Committee approved the minutes from the November 5, 2025, meeting.
- Art Project Amendment: Approved a third amendment to the consulting agreement with Christian Muller Studios LLC to increase the contract value from $975,000 to $1.47 million (a $495k increase, with staff citing a necessary $171,570 due to material cost overages and re-engineering) for the Purewater North City Public Art Project. Staff confirmed that rejecting the increase would result in the project being incomplete, requiring costly storage and disposal of the unassembled artwork, whereas proceeding ensures delivery in Spring 2026.
- Action: The Consent Agenda passed unanimously with three members present (Chair Kempio, Councilmember Foster, Councilmember Campbell).
Public Comments & Testimony
- Jan Boujois (East Village Resident): Expressed frustration with the city's permitting process and lack of business friendliness, citing an example of a $900 fee that was lost due to application errors. Speaker advocated for reducing regulations, consolidating permitting into one location, and enforcing codes on owners of empty lots at 617th and Island and 19th and Island, suggesting penalties for non-maintenance of empty properties.
- Madison (Speaker): Expressed strong concern regarding a federal shift with the passage of HR 5371, which effectively bans intoxicating hemp products (Delta-8, Delta-10, THC flower). Speaker warned of workplace safety risks in safety-sensitive industries, economic disruption for local businesses relying on these products, and youth access issues as these items become federally illegal by November 2026.
- Blair Beekman (Commenter, Chair of joint City/County committee): Expressed support for the Police Advisory Board's work on defining data collection language. Speaker recommended the committee refer to the PAB for developing new language regarding surveillance data and urged the city to consider leaving the "Flock" surveillance vendor to find alternatives, as well as reducing future surveillance tech use while maintaining public safety.
- Terry Ann Skelly: Expressed support for disrupting the marketing of harmful nicotine and marijuana vapes to youth, citing a school newsletter report on student exposure to unapproved drugs. Speaker advocated for fining vape shops and removing unauthorized tobacco products from shelves as a policy for economic development and public health.
- Becky Rapp: Expressed opposition to expanding the out-of-town marijuana delivery program without first resolving opacity in the current program. Speaker demanded a complete transparency report on tax revenue, unpaid penalties, non-compliant operators, and enforcement actions before any new permits are issued.
- Kathleen Lippett: Expressed strong opposition to current marijuana legalization policies, arguing they have failed to reduce crime or black markets while increasing youth use disorder, hospital visits for psychosis/hyperemesis, and marijuana-related driving incidents. Speaker noted states like Massachusetts, Ohio, Maine, Nebraska, and South Dakota are rolling back legalization laws.
- Judy Strang: Expressed concern and request for accountability regarding the lack of updates on an internship/job opportunity program aimed at youth aged 16-30, particularly those impacted by justice or economic disparities. Speaker asked for a report on program outcomes and health issues affecting this demographic.
- Blair Beekman (Consent Agenda Comment): Expressed hope that staff would collaborate with state, county, and federal agencies regarding tech data policies, noting the Police Department's willingness to negotiate. Speaker expressed support for the committee's direction on tech issues.
Discussion Items
- Global Village Refugee and Immigrant Cultural Hub: Discussing the Bridge to Home Round Six recommendation to invest in a project by Hitzke Development and PANA in City Heights. The project includes 137 affordable apartments, child care, and a cultural center. Rachel Lozano Castro testified expressing excitement for the project which supports hundreds of families.
- Salvation Army Rady Center Senior Housing: Councilmember Foster requested clarification on whether the supportive housing units for seniors experiencing homelessness or mental illness are "assisted living" units. Staff confirmed they are standard senior units with supportive services, not assisted living with specific medical care infrastructure.
- Convention Center Sales & Marketing Update: Presentation highlighted a record-breaking Fiscal Year 2025 ($1.57B regional impact) but noted a projected $7M decline in FY2026 hotel/sales tax revenue due to a drop in government business (down 24%) and a shift in event composition. Discussion focused on the need for expansion (larger ballrooms, more exhibit space) to compete with cities like Houston, Dallas, and Boston, as well as modernization needs (HVAC, roofs) funded partially by the Measure C sales tax which staff confirmed is cleared for spending/bonding.
- Competitive Disadvantage: Dr. Campbell and Councilmember Foster noted that competitors (Houston, Dallas, Denver) offer free or subsidized center space due to other revenue streams (parking, local income taxes) or incentive funds, putting San Diego at a pricing disadvantage as AV and labor costs rise.
- Canadian Tourism: Daniel Cooper Schmidt expressed that Canadian travel to the US has declined due to political sentiment, with speakers joking about Canadians hiding their travel; the tourism authority is actively working to reverse this.
Key Outcomes
- Consent Agenda: Approved unanimously.
- Bridge to Home Round Six: Staff presented recommendations for four projects totaling 528 affordable units ($15M in funding requested via NOFA); no vote was taken as this was an informational update. Specific loan agreements for these projects are scheduled for City Council consideration in 2026.
- Convention Center Expansion: Identified a clear market need for additional exhibit space and a 90,000 sq ft flexible ballroom to modernize the facility and maintain competitiveness against other destinations.
- Measure C Funds: Staff confirmed that the Measure C sales tax funds are legally cleared to be spent or used for bonding, with an expected clarifying ordinance coming to City Council in mid-to-early January 2026.
- Committee Adjournment: The committee adjourned early to close the year, with the next meeting scheduled for January 15, 2026.
Note: The transcript contains a discrepancy regarding the committee name and chair. While the transcript frequently refers to "Chair Kempi/Perule," "Chair Campillo," and "Committee members" in the context of the "Economic Development and Intergovernmental Relations Committee," the specific chair name is inconsistent in the text (shifting between Kempio, Perule, Campillo). The summary reflects the content accurately as stated in the transcript.
Meeting Transcript
It's time for play. It's a whipped cream day. I wait for the whole year out. And the sun is red like a pumpkin head. It's shining through your nose on free. Oh, the world is a snowball. See how it grows. That's how it goes. Whenever it snows, the world is your snowball. Just for a song. Get up. It's a sugar day. What if spring is late? We wish you the merriest. The merriest. The merriest. Yeah, the merriest. The merriest new year. We wish you the happiest, the happiest, the happiest, yeah, the happiest. We wish you the happiest, the happiest, the happiest new year. Fill it with happiness and friendliness for all. We wish you the happiest, the happiest. The happiest, yeah, the happiest. Oh, we went to the merriest and merriest. Look at us, Adina. We're like Barbara and 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 co-closes. The 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. We appreciate the public's cooperation. Chair. I'll now call the meeting to order and uh call the role. Vice Chair Foster. Councilmember Campbell. Council President Pro Tem Lee will be joining us shortly. And I am also present, present with us as well as Noah Fleshman, Fiscal and Policy Analyst from the Office of the IBA, Senior Deputy City Attorney Kate Malcolm from the Office of the City Attorney, and Chris Ackerman Avila, policy advisor from the office of the mayor. Sarah, please continue with our public comment instruction. Thank you, Chair. 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 160-3240614 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, and please participate via the audio on your phone and mute your TV and 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 calling participant by pressing star nine on your phone. If you raise your hand during the non-comment period, your hand will be lowered. Chair.
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