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.

Thank you, Sarah, for reviewing those instructions.

The quorum now being present, we will 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 and committee meetings.

Sarah, let's begin with non-agenda public comment.

Thank you, Chair Perule 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, and each speaker will have two minutes.

We will begin with in-person public testimony.

Jan Boujois, if you will please approach the lecture, and you will have two minutes to share your non-agenda public comment.

Well, I'm happy to be here and thank you very much, Council.

Uh I live in the East Village, so I am out walking around all the time.

And it seems like when we're trying to build something, it takes so long.

I understand you have to follow certain rules, but if you could reduce some of the regulations, also put together where when they're trying to get permitting, put it in one place.

Don't have people go from one thing and then I was talking to somebody, they had their uh lot and they have, but they were told and they sub they couldn't get any help.

So they submit one, paid the $900, and then they were told this isn't the right one.

Never got the 900 back.

So you're not very business friendly, it seems like.

The other thing is there's there are lots at 617th and island.

Also at 19th and island, right after you go over the bridge.

Those are been sitting there for a long time, empty lots.

One of them you took down buildings, and we'll put something there.

The other thing is the commercial uh gym.

It's a family-owned gym at 17th and Imperial.

That's another one that has been sitting there for years and years, but I'm not sure who owns it or whether you could control it.

Number one, if there's all these places that are empty for so long, please go after them, charge more for their upkeep of their property, whatever.

But move some of this where we can get more housing.

Uh it just I don't know.

It's very frustrating to see so many opportunities, and yet it's not following through, especially in a really expedited uh way.

So hopefully we can see more progress and look forward to that.

So thank you very much.

Thank you for your comment.

I'll begin the five-minute timer for all those in the virtual queue to indicate if they wish to provide testimony at this time.

And as a reminder, each speaker will have two minutes.

We will begin testimony with Madison.

Please unmute and beginning to Hi, good afternoon, committee members.

Thank you for your time today.

I want to highlight a major federal shift that should concern San Diego as we consider the economic and public safety impact of the marijuana and hemp industries.

In November, Congress passed HR 5371, a law that quietly rewrites the definition of hemp and effectively shuts down the entire category of intoxicating hemp products.

Delta 8, Delta 10, THC flower, HHC, all the items that exploded on the market after the 2018 farm bill created a loophole.

These products have been sold in gas stations and vape shops across San Diego, marketed as quote, legal alternatives to marijuana, despite producing the same intoxicating effects.

HR5371 ends that facade.

It imposes a total THC cap, bans lab synthesized cannabinoids, reverses the seed loophole, and limits THC to 0.4 milligrams per container, well below any level that produces a high.

Starting in November 2026, most of what's currently on shelves will be federally illegal.

Here are the three reasons why this matters.

First, workplace safety.

Employers have been stuck in a gray zone as workers who failed drug tests claimed they used quote legal hemp.

This law closes that defense.

For safety-sensitive industries, transportation, construction, and public works, the risk of impairment is real, and now the ambiguity is gone.

Second, compliance costs.

Local businesses that leaned on Delta 8 and similar products for revenue will face a hard crash as these items become controlled substances.

That means economic disruption, abandoned storefronts, and a wave of noncompliance, unless cities get ahead of it.

And third is public health and youth access, which we've talked about many times here.

So please be aware of this and see what you can do about it.

Thanks.

Thank you.

Thank you for your comment.

Our next speaker is Blair Beekman.

Please unmute and begin.

All right, thank you.

Uh Blair Beekman.

A really good uh joint committee between uh City of San Jose and Santa Clara County on child raising issues for the county and the city.

Uh nice item.

Thank you very much for the uh item last night.

Uh that was a long conversation about the future of uh surveillance use policies in San Diego.

Um, I felt we're trying to work through a breakthrough in language in how to better talk about data collection as a local community process.

The the San Diego police brought up, you know, a certain point of view of how to speak of data collection.

A few council persons said we can be talking about this differently.

And it was it was a tough conversation, but really nice to hear.

And um, I know that the PAB is currently doing some really incredible work overall, and they really are speaking a different, more clear language about how to more exactly talk about data collection at this time and what you know we're allowed and not allowed to do.

Um, they're they're doing it very well.

And so I really recommend that we refer to them at this time to develop this new language for San Diego.

And that overall, um, you know, what wasn't spoken to last night was that we really can still be considering, if not now, sometime in the near future, to leave flock and to find a new vendor.

And on top of that, to really be considering how to reduce the number of our future uh surveillance tech around the city and still practice the same amounts of good public safety.

Um, that conversation wasn't had last night.

This item will be back in February to talk about uh reviewing the use policy for tech overall.

And boy, at that time, I hope we're all ready to have that conversation.

I think we're really ready to.

It's just a matter of really doing it.

And I I hope that uh council person campillo has laid the groundwork that we have to be cautious.

How do we address that caution by you know really promoting to everyone that we're building a better future?

And um, good luck in our future conversation.

Thank you for your comment.

Our next speaker is Terry Ann Skelly.

Please unmute and begin.

Good afternoon, economic development and intergovernmental intergovernmental relations committee.

Chair Campillo, forgive me.

As a longtime community member and planning group member who cares about economic opportunities for young adults.

As a longtime community member and planning group member who cares about economic opportunities for young adults, I've noticed that your year-long work plan and your city council priorities speak to building a robust, resilient economy with competent work-ready workers.

Thus, I'd like to share a school campus newsletter article where a tea reporter wrote this, and I quote, the vape and smoke shop very near our school is exposing students to vapes along with several unapproved and possibly dangerous drugs.

The student reporter also stated, and I quote again, as students, we are owed the right to an education in campus free from the interference of drugs.

Vape and smoke shops should not be allowed to disrespect or contribute to the obstruction of our rights.

And in the interest in the development of competent work-ready workers, let's disrupt the marketing of harmful nicotine and marijuana vapes and other products to youth.

Not only should these stores be fined, those many unauthorized tobacco products like illegal flavored products should be removed from the shelves.

This would be a good economic development policy for the city.

Policies and enforcement efforts that enhance economic development and good public health and safety is money and time well spent.

Thank you for hearing my concerns this afternoon.

Thank you for your comment.

Our next speaker is Becky Rapp.

Please unmute and begin.

Good afternoon, Chair and members of the EDNIR committee.

My name is Becky Robb, and I'm here to follow up on a previous agenda item regarding the proposal to permit out-of-town marijuana delivery companies.

At that meeting, the committee discussed this expanding the marijuana program by allowing out-of-town delivery operators and increasing fines on illegal businesses.

While that uh discussion focused on revenue, it also underscored a much larger and unresolved issue.

And the city still has not provided a clear, comprehensive accounting of how its current marijuana program is functioning.

Before any expansion moves forward, the public and this committee deserves basic transparency.

We still don't know how much tax revenue has actually been collected, how much remains unpaid, and which operators are out of compliance, or what enforcement actions have been taken against illegal or legal permits.

Expanding permits without addressing these gaps does not strengthen the program.

It only increases risks and weakens accountability.

If the city cannot fully track and enforce compliance among existing operators, adding new categories, especially out of town delivery companies, will only compound the problem.

So I'm asking this committee to make oversight the priority before revisiting expansion.

Please direct staff to provide a complete operational report on the marijuana department, as well as a transparent, detailed accounting of all marijuana-related tax revenue, outstanding penalties, non-compliant operators, and enforcement actions that have been taken.

Thank you.

Thank you for your comment.

The five-minute timer has concluded.

We have two hands remaining in the virtual queue, and we will take no other callers beyond these remaining two individuals.

Kathleen Lippett, please unmute and begin.

Thank you.

Good afternoon, committee members.

My name is Kathleen Lippett.

I'd like to address the permissive attitudes towards the use of marijuana that have exacted a high cost on society.

We were promised to reduce crime, elimination of black markets, and better public health outcomes.

Instead, we got to increase marijuana use disorder, particularly among young people.

Emergency department visits for marijuana-related psychosis and hyperemesis have skyrocketed.

Schizophrenia rates have climbed in direct correlation with marijuana use.

The black market has persisted because of weak regulations and even weaker enforcement.

And remains expensive and regulated.

Marijuana drug driving incidents have increased, and soon the majority of fatal accidents will be attributed to marijuana.

Youth access hasn't prevented but instead resulted in precipitous increases in youth use due to the commercialization normalization, despite promises to the contrary.

We've seen a majority of crimes, active shooters, murderers, child abusers had some connection to marijuana use, and true harm statistics are withheld from Americans in favor of a predatory industry with deep pop pits spreading money to corrupt politicians.

And true harm statistics are withheld from Americans in favor of a predatory industry with deep pockets spreading money to corrupt politicians.

A number of states are now looking at their lead their at their measures that allow the legalization and commercialization of marijuana, and they're rethinking them.

It's taken 10 years, unfortunately, but they are doing it.

Massachusetts is the latest state to roll back significantly, restrict existing marijuana legalization laws.

Other states, Ohio and Maine and Massachusetts and Nebraska and South Dakota have also done this.

It is well past time that the city of San Diego and the county as well recognize the harm that they have wrought with their time.

Thank you.

Thank you for your comment.

And the final speaker in our queue today is Judy Strang.

Please unmute and begin.

Good afternoon, committee.

Thank you for this opportunity to share some thoughts with you.

I'm about to head into an after school program that I supervise, primarily utilizing older teenagers in the roles as mentors and tutors.

During this session, this file session and many at past sessions, I've become extremely well acquainted with what teenagers of that older age, and I this is a large age group.

Of course, this is a high school grade, so 16 through 18, but the even larger age span of 16 to 30.

And their needs, their fears, and the misinformation sometimes that comes their way.

And I thought that your role in bringing economic opportunities to this particular age group was exciting, but I have not seen any update on this program of internships and job opportunities for this particular age group.

I know it was your goal to particularly to reach out to those young people who've been impacted by justice or perhaps by economic disparities, perhaps health problems, perhaps family situations.

And I've been very startled by how important these opportunities are for our young people, and that the very issues that you are that this program, the internship program, was put in place to uh work and mitigate, might be the best way to put it, do indeed exist in this population.

I congratulate you for this, and I would ask that we could see an update on how that program is going.

What sort of data you received about how our young people are doing, and perhaps even a report dealing with their health issues and the role the city could play in improving them.

Thank you.

Thank you.

And chair with no other hands up in the virtual queue.

This concludes non-agenda public comment.

Thank you very much to the members of the public for your participation.

We will now move to committee members, mayoral staff, city attorney, and IBA comments.

Seeing none, do we have any requests for continuance?

Seeing none, we'll dispense with approval of the consent agenda.

Do we have any requested full no?

Uh Sarah, please proceed with public comment.

Thank you, Chair.

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

The consent agenda includes items number one and two.

Item number one, approval of committee minutes from November 5th, 2025.

And item number two, third amendment to the consulting agreement with Christian Muller Studios LLC for artist consulting services for the creation of an original sites with specific public artwork for the Purewater North City Public Art Project.

Each speaker will have one minute.

Please indicate which item or items you'll be speaking to.

We have one hand up in the virtual queue, so I'll begin the five-minute timer in case there are others that indicate they would like to speak to the consent agenda.

We will begin testimony with Blair Beekman.

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

All right.

Great.

One minute, please begin.

Thank you.

Okay, let me try now.

Um I wanted to speak to um the approval uh within the minutes of uh updates on legislative platform, uh San Diego legislative platform issues for government affairs.

Um to me, um I thought this item was about um how to deal with oh, I thought this was about um uh working with the state and county and and federal agencies.

I I may be off on that a bit, but that's my hope that you could be working on on tech issues at the state and government and federal level.

It's how we can talk about our tech data uh with state and federal agencies on our terms.

And to quickly mention uh from last night uh that the police uh PD really offered that they're willing to talk and negotiate if presented with good uh ideas, and if we make a good case, uh good luck on on good conversation that we can make a good case with the police department uh the future of our tech is due to thank you and chair.

This concludes comment on the consent agenda.

Very good.

Uh thank you very much for the members of the public.

Uh I'll start us off here with the consent agenda.

Um just questions about item number two.

Um Third Amendment for uh consulting agreement with an artist about creating a site-specific public artwork for pure water north city public art project.

Umriginally, this project started out um in January of 2017 to be $975,000.

Uh, and now we're being asked to extend the agreement again, uh, understandable reasons, knowing everything that's happened since 2017.

But now our not to exceed amount is 1.47 million up from 975,000.

Um, and I know that there's probably some good reasons as to why this hasn't been completed.

Um, is is anyone from staff here to talk about this particular issue?

All right, Ms.

Jones.

Thank you for being here.

I know this is um we've already this council has updated it first in 2022, then again in 2023.

Both of those had no cost increase, and now we're looking at this because it's expected to be installed in the spring of 2026.

Uh can you can you let us know why this is now why is this additional 170,000 truly necessary?

Thank you, Chair Kimpio.

Good afternoon, council members.

So essentially, this is a public art project, as you mentioned, started back in January of 2017 and commissioning that artist.

So essentially what we're asking for is um two things a contract extension to allow because the contract um needs to be extended in order for the scope of services to be completed.

In addition to that, we're requesting an increased cost of 171,570.

Those increase in costs, it's a no increase has happened since 2017 for this project.

And as you can imagine, uh a lot has happened um since 2017, and specifically the cost of materials and fabrication have risen significantly within the construction kind of environment.

And it's impacting many, many different types of contracts, but it's particularly impacting materials such as steel, fiberglass, aluminum, which has impacted the artist's budget to be able to finish the fabrication of the artwork.

So we have worked with the artist to identify and itemize what the increases are for, particularly over 106,000 of it is specifically for the material cost overages, which have happened outside of his control, obviously.

And we've done a lot of value engineering to get to that point where uh we feel that it's a very reasonable and fair amount given the time frame.

The other thing that I'll point out that's happened um in recent times is this was originally anticipated to be installed in the facility ready in 2021 for this to be installed.

So it was actually engineered to be installed in 2021.

The California building code changed in 2022, so that required the artist to go through re-engineering process to bring it up to code.

And so there's a cost implication for that as well.

So that's really the reason for the increase in cost.

And the site is now ready, and we'll be installing this artwork in the spring.

Okay, understood.

I understand everything you pointed out, things that are outside of our control.

I think the one thing we can control is how we negotiated this what negotiation occurred so that we can know that we tried to keep this as low as possible because I if the the amount we essentially have seemed to seem to have already spent is out the door.

I wouldn't want to waste all the money that's out the door and have no product, so I understand where where we're coming from here.

Uh, what did we do to negotiate it to keep it as low as possible?

Yeah, that's a good question.

So um our staff worked really closely.

We have a uh with the artists to and their fabricator to really value engineer and itemize all the expenses, and we were able to identify areas of cost savings, which were actually lower than originally intended as part of the original estimate, and then other things like the material costs, as I mentioned, like steel and fiberglass actually increased.

So we were able to kind of find and shift things around as much as we could.

Um the re-engineering was just a requirement.

There was no way around that cost, um, but we were able to adjust other.

So we did a thorough job with value engineering with the artists, and we worked with the overall pure water project team to evaluate it, and it was deemed reasonable based on what was being asked, and also to ensure that we're not compromising public safety because we can't install a 50-foot sculpture at a site unless it's safe.

Understood.

Just ballpark it for us.

How much did the negotiation save for us?

You said we you got it down from the original.

Yeah, I mean, it was at least over 100,000.

Okay.

All right.

Well, I appreciate your good work on that.

And uh just to be very clear if we don't do this, it's essentially there's going to be no artwork delivered at all, right?

That means the project's dead and what's been spent is out the door, and we get no product for it.

Is that correct?

Yeah, so essentially we'll have uh uh an artwork that is incomplete, unassembled, um, and wouldn't it would not be able to be installed at the site.

We'll have a site that is already site prepared for an artwork that would have to be redesigned if an artwork's not going to go there, and we would have to address disposal of the artwork at the city's cost.

Okay.

So we're gonna spend money to throw it away or spend money to put it in place, is what I'm hearing.

It's actually um more cost effective uh for us to actually move forward with the increased cost to deliver the artwork versus how much it's gonna cost for storage of an incomplete artwork and disposal of it.

Well, that makes it a pretty easy decision in the end, it seems.

Well, I appreciate your good work on this.

Uh, any time we're seeing something that's a second, third, fourth amendment.

Um, you know, the council is very uh discerning about that.

Um, and uh I appreciate that you you've kept a very close eye on it, so thank you very much for that.

Uh with that, I'll make a motion to approve the consent agenda and we'll go to Councilmember Foster.

Oh, yes, thank you, Chair.

Just really quick.

I don't know if I caught it, but what was the the reason for the delay?

The reason for delay, well, um the public art project has to coincide with the timing of the overall facility that's being built.

So it's the advanced water purification facility on um Eastgate Mall.

And so the site wasn't the site had construction delays outside of the control of us and the artists, and so the site wasn't ready when originally was anticipated.

So we've been kind of waiting for the site to be ready for installation.

Makes sense, thank you.

Um Chair, I'll second the motion.

Thank you very much.

Thank you, Ms.

Johnson, for your for your detailed uh work on that.

Uh with that, we have a motion and a second on the consent agenda, seeing no further questions.

Uh let us take a vote.

Passes unanimously with three members present.

Uh, let us now move on to our information agenda.

We will be starting off with item number three.

Sarah, please introduce the item.

Thank you, Chair.

Item number three is the bridge to home notice of funding availability round six informational update.

And if you're watching on City TV or the live stream online, and you'd like to call into the meeting to speak, please dial 1669-2545252.

And when prompted, input webinar ID 160-324-0614 pound.

Chair.

All right.

We have with us from our economic development department, our deputy director, Christy Marcella, and assistant deputy director Michelle Morano.

Please go ahead and let us know how much time you'll need.

Thank you.

Good afternoon, Chair Campio and members of the economic development and intergovernmental relations committee.

Thank you for the introduction.

Uh, it's our pleasure to present the bridge to home notice of funding availability round six informational update.

We request about 10 minutes for the price of the process.

Very good.

This informational item discusses the recommended projects resulting from the sixth round of the bridge to home NOFA.

Before highlighting the round six recommended projects, I'll provide a brief overview of the bridge to home program and accomplishments since its launch in May of 2021.

The overall goal of the bridge to home program is to increase the new construction acquisition or preservation of housing that will provide long-term affordability, so 55 years or longer, to individuals and families at or below 80% of the area median income.

Additional objectives from the selection criteria are listed on this slide, and they include leveraging city funding and using it efficiently while optimizing apartment production, increasing permanent housing for individuals experiencing or at risk of homelessness, prioritizing housing in state-designated moderate high or high interest resource opportunity areas, and supporting opportunities for affordable child care within the housing.

The bridge to home NOFA rounds one through five were issued in May 2021 through December of 2024.

They provided over 106 million dollars in city affordable housing funds for 23 projects located throughout the city from Rancho Bernardo to San Yasidro.

The bridge to home program has proven to be a valuable tool in allocating gap financing to help meet critical affordable housing needs.

Rounds one through five will create a total of 2,133 apartments, including 2,108 affordable rental homes, of which 378 are permanent housing with supportive services.

Four of the approved projects have been completed.

Three more projects are scheduled for completion by the first quarter of next year.

And staff is negotiating the final remaining loan agreement for 40th and Alpha, and this loan agreement will be presented to City Council for approval.

Attachment D to the staff report provides additional details regarding the status of each of the previously approved projects.

I'll now turn the presentation over to Christy Marcella, Deputy Director, to discuss the round six NOFA recommendations.

Thank you, Michelle.

The bridge to home round six NOFA was issued in July of this year, offering $15 million in city funding, $10 million in low-mod income housing asset funds, and $5 million in CDBG funds.

Nine applications requesting over $46 million were received in September.

The city utilized the same evaluation process as in previous rounds, including a financial feasibility analysis and an evaluation panel of city staff across departments and with a variety of expertise.

Four project loans totaling 15 million are recommended.

The four projects will create 528 affordable rental homes, including 66 permanent supportive housing units.

One project is for senior citizens, one will have an on-site daycare, one project is in the state's designated high resource area, and one in the highest resource area.

These are areas that typically have an underrepresentation of affordable housing but offer high levels of opportunities and resources.

I will provide a summary of each of the four recommended projects in the following slides.

The Global Village Refugee and Immigrant Cultural Hub and Housing Campus Project is developed by a partnership of Hitzke Development and the Partnership for the Advancement of New Americans, or PANA.

The development concepts were the result of over 2,000 community members who engaged in an 18-month collaborative process to develop a collective vision for the site.

The project site is located in Council District 9 on University Avenue and City Heights.

The new six-story mixed-use development will have 137 affordable apartments for households earning 30 to 80 percent AMI, including a mix of studios, two-bedroom, three-bedroom, and four-bedroom apartments.

Over 70,000 square feet of other uses include on-site child care with an outdoor play area for ages zero to five to be managed by Horn of Africa, a community cultural center with multi-purpose spaces and a community garden, a global market and community serving retail, and health and facility wellness center with pediatric to adult services.

It is located within a transit priority area and serviced by four MTS bus lines as well as bike lanes on University Avenue.

These tables show the projected sources and uses.

Please note that for this and all the recommended projects, the sources and uses of funds are based on estimates and assumptions in their NOFA submittal.

The information may change during the negotiation process and will be finalized at closing.

Additional details will be shared when we bring each individual affordable loan agreement back to City Council for consideration.

The dual project is developed by Wakeland Housing and Development Corporation, partnered with City Thinkers.

The project site is located in the Grantville neighborhood in the Navajo community and is in a state designated high resource opportunity area in Council District 7.

The land is being ground leased from the county of San Diego.

The new eight-story building will have 208 apartments, affordable to households earning 30 to 60 percent AMI, including a mix of studios, two, and three bedroom apartments.

Other features include a computer lab, community room and kitchen, and a courtyard with play area.

It is located within a transit priority area within a quarter mile of three bus routes and within half a mile of the Grantville Trolley station.

The $5 million city low mod income housing asset fund loan provides approximately 24,000 per unit, and the total project costs are approximately 166 million.

The Promenade Apartments project is developed by CRP Affordable Housing and Community Development, partnered with the Community Revitalization Development Corp.

The project site is located in the uptown neighborhood and is within a highest resource opportunity area in Council District 3.

The new eight-story building over one-level podium will have 94 apartments affordable to households earning 30 to 70 percent AMI, including one, two, and three bedroom apartments.

Eleven homes will have supportive services for individuals experiencing homelessness or at risk of homelessness.

Other project features include an outdoor play area and tot lot, and 15% of the units will be designed as ADA accessible units.

The $2.5 million CDBG City loan provides approximately $26,000 per unit, and the total project costs are approximately $58 million.

The fourth project is the Salvation Army Rady Center Senior Housing Project, developed by Wakeland Housing and Development Corporation on Salvation Army property located in the East Village neighborhood of downtown San Diego and Council District 3.

The new six-story building will have 89 apartments affordable to households earning 30 to 60 percent AMI, including studios and one bedroom apartments.

Fifty-five homes will have supportive services for seniors experiencing homelessness or at risk of homelessness or with serious mental illness.

Other features include access to the health clinic and services offered in the Salvation Army's adjacent shelter and transitional housing project.

The $5 million loan bad income housing asset fund city loan would provide approximately $56,000 per unit, and the total project costs are approximately $58 million.

City staff will begin the process of negotiating with the development teams and finalizing the loan terms in the coming months.

Development teams will proceed with best efforts to timely secure tax credits and other financing.

Typical city financing is at 3% simple interest payable from residual receipts, includes 55-year affordability covenants recorded on the affordable units and will be monitored on an annual basis.

The four round six loan agreements will be presented to City Council for consideration in 2026.

These projects will be docketed for council consideration beginning in February to expend available funds in a timely manner.

Economic development staff will continue to offer detailed briefings in advance of the council presentation to discuss the finalized financial components of the proposed loan agreements.

Staff is analyzing the potential timing of releasing round seven of the bridge to home program while identifying funds that will be available.

This completes our presentation, and we are happy to answer any questions you might have.

Thank you very much for that important information.

Let's go to public comment.

Thank you, Chair.

We've not received any slips here in chambers, so I will begin the five-minute timer for all those in the virtual queue to indicate if they wish to provide comment on item three.

We will begin each speaker will have two minutes, and we will begin testimony with partnership for the advancement.

Please unmute and begin.

You will have two minutes.

Good afternoon.

Thank you, Council and Staff.

My name is Rachel Lozano Castro from the Partnership for the Advancement of New Americans.

I thank you for your consideration of an investment of the Global Village Refugee and Immigrant Cultural Hub, which will support hundreds of families in mid-city San Diego with large family housing, gathered space, commercial opportunities through a global market, child care facility, and a wellness clinic.

Co-designed by 2,000 committee members and strategically located adjacent to the city's future choice triangle park.

We're excited to see the full transformation of public spaces and a future belonging.

Thank you.

Thank you for your testimony.

And chair seeing no other hands go up in the virtual queue.

This concludes comment on item three.

Thank you to the members of the public for their participation.

As in this is an information item only.

No motion is required.

I'll kick us off by thanking our economic development team for bringing these recommendations forward.

We see this uh year after year with various uh excellent projects that provide really important uh housing that we need and it's difficult to get this sort of thing done.

When we see proposals like this, what we're really seeing is all the different layers of partnership that need to come together to actually make new homes happen, as member of the public noted earlier.

There's a lot that gets in the way of getting construction done.

Uh takes years and years and years, and uh we do our part on our and through this program and with what you've presented to us to do our very best to get it done fast because people need this housing now.

Um we spent a lot of time talking about the need to expedite housing and to lower rents, reduce the cost of living, uh the nonprofit organizations and affordable housing developers and our city and county staff uh work all together to get this done.

Um, I know individual projects will come before us uh later on uh when the details are uh more negotiated and uh set in stone and when it requires our authorization as a committee as a council, but I I am encouraged by what we are seeing.

Uh and so as we construct this and it's designed in different ways for different vulnerable groups who are potentially falling into homelessness or uh our veterans or whatever other group of people we are uh trying to help uh with specific projects.

I know that really helps the community as a whole.

So I'm glad to see these recommendations and then moving forward.

Um and uh thank you very much for your time.

I see Councilmember Campbell's on the lights.

Thank you so much.

Thanks for the presentation.

You know, it's just heartwarming to be able to see so many buildings going up to help affordability and uh to see how many loans each building takes, how many tax credits, how many, you know.

I mean, gosh, there was one I think that had at least a dozen different loan and tax credit requirements to to meet the need to uh meet the expenses.

So I really appreciate all the work that goes into this.

I appreciate those companies that are willing to build these things, which is getting more and more difficult as prices go up and up and up.

And uh I just want to thank you for the good work and everything you do to help people get housing who ordinarily would really have a hard time affording it at all.

So thank you so much for all you do to keep us from having even more homelessness than we have now and for reducing what we have now.

Thank you so much.

I am definitely in favor of this.

Very good.

Thank you.

Although it's just in information, right?

Just information.

Yeah, okay, thanks.

Uh, we'll now turn to Councilmember Foster.

Uh, yes, thank you.

I just um like to see PANA getting um their project um funding moving forward and and hopefully seeing that um get done.

Um it's it's it there's a real need um for that, and um also like that I'm seeing um project and high resource um areas.

I do have one question on the senior uh project, the Salvation Army project.

Says it's for uh seniors 55 homeless or at risk or serious mental illness seniors.

Is that kind of what I would back in my old days we call it assisted living where they have pool cords and certain things if someone gets hurt, senior falls down, that type of deal?

Or is it just a standard apartment?

I do believe we have the developer on the line, so I might ask Wakeland to chime in on kind of what that level of permanent supportive housing units is.

I don't hear them chiming in, but I can find more details specifically on the types of services for those supportive housing units and get back to you.

Okay, just curious.

Okay, thank you.

Sorry, I was uh moving from moving to a panelist.

This is Peter Armstrong with Wakeland Housing and Development Corporation.

I mean, these will be standard senior units, they're not assisted living units specifically, but we would provide uh supportive services and other resources to help uh sensitive target resident populations.

Okay, thank you.

All right, thank you, Councilmember Foster.

Thank you very much to our team from economic development for the good work, and we'll see you again soon as these projects move forward.

Uh we will now move on to item number four, our sales and marketing update from San Diego Convention Center Corporation.

Let's uh we wait for them to come up to the microphone.

All right, we're gonna welcome our Mardine Maddox from the convention center, Daniel Cooper Schmidt from our tourism authority.

Please let us know how much time you're gonna need.

Thank you, Mr.

Chair and Committee members.

I'm Mardine Magnet Maddox, deputy CEO and CFO of the San Diego Convention Center, and with me is Daniel Cooper Schmidt.

He is the president and CEO of San Diego Tourism Authority.

We're here to present our semi-annual sales and marketing update, and we'll need about 15 minutes for our presentation.

Very good.

So we like to begin our presentation at every year with a reminder of what our purpose is and why we exist.

So we serve as a premier gathering place for San Diego hosting conventions and creating economic benefit as well as jobs for San Diego.

In addition, we're also now working closer with the city to maintain and enhance this vital asset.

We continue to work closely with SDTA to contract events that bring visitor spending and positive impact and quality of life for the people who live here in San Diego.

Fiscal year 25.

Thank you.

Fiscal year 25 was our record breaking year.

We generated 1.57 1.57 billion dollars in regional impact.

We hosted about 92 events, and we just and we produced about 38 million dollars to the city coffers.

This really was the perfect alignment and composition of events.

This is something we've been aiming for in the sales strategy, and it all came together in one year.

Our building also supported nearly 2,000 workers, inclusive of our business partners and the general service contractors that work in our building every year.

Over the past six months, we've welcomed hundreds of thousands of visitors to the destination.

We continue to host marquee events like ESRI and Comic Con, but we also focus on tech shows like TwitchCon, which was just here in October, as well as last week.

These events highlight the mix of event activity, including corporate medical and association business that bring the highest value to the destination and to this facility.

Over the next six months, we'll continue to focus on high value events and the impact to generate a great impact for the city, our business, and our business partners.

These events generate thousands of dollars in TOT and support the surrounding businesses to the convention center.

While we're focused on driving economic impact to the region, we also support our community in many meaningful ways.

We host important events like the counties Live Well San Diego.

This week we're hosting the fourth annual Regional Task Force of Homeless Conference, bringing together over 165 organizations, as well as we partner with PASS Up Path to deliver donated food items and blankets, cleanup of the San Diego Bay with the port, and we light our sales pavilion in support of community causes.

Moving into fiscal year 26 regional impact, again, this slide shows the estimated impact for this year.

When comparing 25 to 26, you'll notice that we have about the same number of events, yet about $7 million less in hotel and sales tax revenue to the city.

This is really to highlight what the event composition, how how the event composition can affect the financial viability or the financial impact to the community and how it can fluctuate each year.

This is why we work so closely with SDTA to strategize how best to fill our building.

But to be clear, fiscal year 25 was the record-breaking year.

26 is still a very strong economical year.

And with that, I'll turn it over to Daniel who can walk us through the rest of the presentation.

Good afternoon, Chair and Council members.

Um earlier this year, uh, there was a lot of uncertainty of what might happen with international travel and just sort of different changes in administration, what what impact that would have on the destination.

So before I get into what's on the slide, our government business is down 24% in San Diego.

That represents about 160,000 rooms year over year that's lost uh in the government sector, uh, which is is critical to our destination building based business throughout the destination.

Then if you turn your eyes to the uh the international travel, total inbound US travel uh from abroad or uh Canada in Mexico is down six percent in total.

Uh and then we've got some San Diego numbers there as well.

We fare a little bit better in San Diego than the rest of the United States, uh, in particular in Canada, and we've spent quite a bit of time with Visit California visiting Canada to talk to them about why San Diego and California is different.

And so that that is clear in the numbers that we are performing a little bit better than uh the rest of the U.S.

there.

As it relates to some of the initiatives that the administration has put into place that have been positive for the industry.

So there has been significant investment in the big beautiful bill, 12.5 billion dollars to modernize air traffic control, $6.1 billion to reduce uh wait times on visas.

That's critically important to the industry as we look at uh FIFA World Cup and the LA Olympics.

Uh $673 million in expanding the biometric screening and 1.6 billion dollars for security and operational support of major events like World Cup and LA Olympics that we will be able to capitalize on.

Lastly, uh the visa integrity fee is really a concern for for us as a whole.

This is a new fee that the administration is potentially going to add.

It's 250 dollars per person that would come into the United States.

So think about a family of four.

Already our visa fees are incredibly high to get to the United States, add another thousand dollars for a family of four.

Makes you think maybe I'll go to a different uh country than the United States.

So U.S.

travel is working very hard uh to make this go away.

Uh right now it's on pause, and uh they're working hard to make it go away.

If you move to the next slide, Juan.

Um just a couple other things locally.

Uh we have seen uh visitor spending decline 1.8% year over year.

Um our occupancy has dropped 3% for the city of San Diego uh as well.

A lot of the drop in occupancy is due to in new supply in the county that that's affecting uh the drop in uh occupancy.

As we look at next year, the back half of 2026 begins to improve.

Um the citywide calendar is very strong from June on, uh, and we're we're excited about that.

Plus, we have the World Cup uh coming along uh next year.

We will have two base camps here for teams, which will bring uh not only the teams, it'll bring media and it'll also bring uh tourism uh for each of those teams.

Um as we look uh at at client engagement, um we have at STTA been spending a lot of time on the road talking to uh both leisure and uh business travelers.

So on the on the leisure side front, we've been uh with brand USA in London talking to media and travel and tour operators that are bringing travel to San Diego specifically.

Um there's still a very positive outlook about Europeans in particular coming to the United States uh and UK traveling here.

Germany is about the only country that we still continue to see a little bit of resistance uh as coming to the United States.

Um while in Toronto a couple of weeks ago we met with uh the major airlines there, and we also met with Tor and travel and media there.

Um, as you saw in the numbers, Canadians are still traveling to uh California and the United States.

They just won't post about it.

If they if they come here, they don't post because uh their friends and families will ridicule them if they come to the United States.

Um so we are working very hard to try to change that.

At least they came to California.

Um much of their travel is around concerts and events and sporting events that we are going to enjoy uh next year in particular with NASCAR and um World Cup.

Um and then lastly, uh we were just uh with San Diego Convention Center and um SDTA.

We were just in Chicago last week, um, and we were in DC talking to our big convention center customers and hearing what is on their minds as well.

And I'll share some of the details there uh of what what we were hearing from them.

Um next slide, please.

Um as we as we are looking at the convention center, uh the convention center recently hired HVS to do a use study of how we're using the space at the convention center, what are our best customers looking for, and what are other customers looking for in convention centers.

As you can see, uh the biggest reason for our lost business at the convention center is dates unavailable.

So that's meeting space and lack of meeting space not being available to host those groups, which then allows them to go to another destination, uh, which is certainly concerning and and clearly shows there's demand for an expansion of the convention center.

Um some of the things that came out of that study were uh how our space is being used.

We're forced to use the exhibit halls because our two ballrooms aren't large enough uh and appropriate enough for meetings to take place in in them, and then we have less exhibit space by association.

Um the study also went into a SWOT analysis and uh what our future uh needs will be.

On the next slide, you'll see what that SWOT analysis is.

Really, the the major opportunities here are more exhibit space and a 90,000 square foot flexible ballroom.

That that's what's the most important thing that came from these customers.

And it's not just about hosting two big conventions or or keeping the big conventions, it's more about how we layer the business in the center.

Instead of having downtime with move-ins and move outs, we can have one group meeting while another one's moving in, and the city will be busier, the gas lamp will be busier, um, and our small businesses will be busier.

So that's what's critical about the expansion of the convention center.

As you look at our weaknesses, um, really the the ballrooms, there's lack of ballrooms, lack of size of ballrooms, and they're incredibly outdated uh and need to be updated.

And then also the cost of doing business comes up more and more with our customers now.

Um this is everything from uh AV to cost of hotels to cost of food and beverage, um, and there are other cities that are are charging less and giving the centers away for free and creating incentive funds to attract these groups.

Well, we have an amazing destination.

The concern is that if we continue to outprice our out raise prices so much that they will choose other cities such as Houston and Dallas and San Francisco who are giving their centers away at this time.

Next slide.

This slide just shows where business goes that we lose to.

Las Vegas is the number one destination that we lose business to, but this is mostly our western um western competitive set of uh convention centers.

So you see San Francisco there, Los Angeles, Anaheim.

Boston is a is a key city for us.

Uh much bit much of the business that goes to Boston rotates here, and vice versa, uh, back and forth because of the biotech and life science uh experience there.

In addition to this, we're losing business more often now to Houston.

Um they have an incredible hotel package uh and they are expanding their convention center.

Denver downtown, they've completely revamped the downtown of Denver with the 16th Street Mall uh renovation, and uh groups are being attracted to that.

Phoenix, we continue to lose business to Phoenix mostly because of affordability.

Um Dallas and Austin uh are rebuilding their convention centers as we speak.

On the next slide, I'll talk a little bit more about strengths and weaknesses.

Um what is our primary strength uh and why the groups come here the most?

It is because of the convention center and the the hotel package.

You have 3,000 rooms connected basically to the convention center.

There are very few cities in the United States that have that package and the ability to flow.

And then if you think beyond just those three hotels, you have two you have the gas lamp right there that really has a number of great hotels and great product.

Also, the the workforce here, our customers tell us consistently that the workforce here is understand service, they understand business, and they understand big convention business and do an amazing job for them.

So it's another key component to uh why business comes here.

We see increasing competition uh in um in different cities where we do business.

So Chicago and DC are big feeder markets for our convention center.

Just in Chicago alone, there are 57 other cities that are there vying for the same business that we're vying for.

And if you go back 20 years ago, there were seven.

So just the amount of uh other cities that are coming on our tails to take our business.

Um and many cities are also doing incentive funds now uh to bring business to their destinations.

So with that, uh that would conclude our statements and update.

Thank you very much for the presentation.

Let's go to public comment.

Thank you, Chair.

We've not received any slips here in chambers, so I will begin the five-minute timer.

So anybody in the virtual queue can indicate if they wish to provide comment.

Each speaker will have two minutes, and we will begin testimony with Blair Beekman, if you can please unmute and begin.

Hi, uh Blair Pikmin.

Uh thank you for this item.

Um I know Joyce Sonata, who used to attend our San Diego City Council of Public Meetings, but it's moved on to new Horizons.

I think I heard she's attending Tula Vista meetings, uh, public meetings much more often these days.

He would have been very interested in in what you had to say for this item.

It's really important that the future of um convention center issues uh the uh upkeep of the convention center was really important to her.

He said it was uh lacking in some ways.

And uh so she was it was a really important subject to her.

For myself, where I usually come from with convention center items is how to address the future of tech accountability, and if we offer more open public policies and best practices, uh it creates uh a sense of security and and harmony for people of the city, and they just feel more better and they'll want to come to San Diego to see these good practices in action.

Um now with this new Trump administration.

I mean, there's a very serious need that we can be providing protection um to people if we have good data collection practices.

Uh it can be a bit more trusting than in other cities, and if people know that, uh that's important, and man, uh I can't thank you guys enough for how groups like the park commission, they really they put a big slowdown on the future of the their tech programs within the park system to get a sense of where how to deal with federal administration new data collection and tech policies.

So you guys are making honest attempts to really address the future of tech in San Diego at this time and how it relates to federal questions.

And you want it to be good.

You want us to be on the up and up.

So keep up the good efforts.

And um that's how we build our future of life in San Diego.

People want to come here for that, and they'll need it now.

Thank you.

Thank you for your testimony.

And seeing no other hands in the queue, this concludes testimony for item four.

Thank you very much, the per the public for their participation.

I'll go to my council member colleagues for questions and comments.

It's an information item only, so no motions needed.

And we'll begin with Dr.

Campbell.

Thank you so much.

Thanks for the presentation.

I've I just love to hear from you guys, both both the tourism authority and the convention center, just fabulous.

Thank you so much for all you do for our city and and for all our visitors.

Um I'm just wondering about the new uh increase in the TOT tax.

Uh we're just about done with all the uh legal problems of the raise that was voted in years ago and finally almost done with the weight for all the legal things.

And I was just wondering, um I know we've been collecting it, I believe, since last spring, but I we're not at a point yet where we can say we're gonna spend it, right?

Is that right?

Because I know a lot of it goes to the convention center.

My understanding is uh it's cleared the courts now.

Um there was a chance that it would go to the Supreme Court.

Uh and that is not um happening at this point.

That's been uh stopped.

So um we are able to begin to spend or bond against that money.

I'm not sure the next steps to when that's going to happen.

Uh I think that sits with uh city council and the mayor.

Great.

Well, I hope it it happens soon.

Council member by May add Chris Ackerman with the mayor's office.

Um you should be seeing an item coming to council in mid to early January um with a clarifying ordinance on measure C, and those will be the next steps for you all to consider.

That's great.

I remember last year uh we heard from the convention center about the need for a new HVAC system.

Uh has that made any progress so far.

We are beginning feasibility and design work um on that, but I believe uh that'll be coming to you next month from the city.

Oh, good.

Okay.

Yeah.

Uh and there were other needs you had that were pretty important, like re leaking roofs during rain and things like that.

So I, you know, we're I'm so glad that that money is going to be able to be utilized, and uh I look forward to us being able to expand and improve the convention center.

Um there was something in there about one of our challenges being our price was higher than others.

Is that the price for convention center space, or is that uh just the price of being in San Diego?

Uh it's a little bit of both.

Our convention center really only has one source of income, which is food and beverage and rental.

Um many other convention centers around the country have other sources of revenue that they can tap into, such as parking and ancillary fees.

So we we're not able to at the center to discount necessarily or provide the center for free.

So there's a cost to having the convention center and selling it to groups where you might go to Houston and they'll give you the center complimentary because you're gonna all the economic impact that's gonna go with that.

Um and the way uh it's set up at the convention center is we we've got to make some money, and so uh you have to charge for that.

Um, and some of those costs uh like audio visual are going through the roof, and so other cities are able to offset that in other ways.

Yeah, interesting to me that um Texas, of course, has a lot of oil income, and many other cities in the United States have local income taxes, and that helps also tremendously with their budgets.

I I don't know in California if that's even I don't even know if there are any cities in California that have that.

We certainly could use it, but that's way down in the future, way out in the future, I should say.

Way up in the future.

I think it would be extremely helpful, especially based on a income level uh type of type of taxation.

Okay, well, thank you so much, you guys.

Um can't tell you how much I appreciate you.

It's just there aren't words for it.

You're great and doing a great job.

Thank you.

Thank you, Dr.

Campbell, and just uh really quick and I don't know if I missed it or not, because I did walk out on briefly there, but um just how are we seeing things with um when we talk about challenges in um I believe on here increased city competition?

What is the how are we doing with Chula Vista and are we seeing how are we starting to see a trend or understanding potential impacts?

Um I think when you look at our occupancy, we we've seen a decline in occupancy for San Diego of three percent.

A portion of that is because of the new inventory in Chula Vista, because they're they've they're attracting new business, they're attracting leisure and group business.

Now, all of the businesses that that can at the Chula Vista property is not from San Diego.

They brought new business, which we will enjoy in the future.

And I think as the as that hotel stabilizes in the next two years and they get to a higher occupancy, it'll stabilize for the whole destination, and hopefully by then demand is starting to return because things are a little bit more stabilized and and sort of a little less chaotic.

Thank you to my colleagues for their questions and thank you to our presenters for their good work and um helping helping our uh helping our region uh maintain a robust economy by bringing uh travelers from across the world here.

Obviously, there's certain things outside our uh control that have led to significant drop-off on people from people visiting.

Um I endorse the strategy of convincing Canadians that it's okay to come to California.

That that was a particularly interesting one.

Um but I know sometimes it's it's things as simple as that.

Um I know that when it comes to other other cities, whether it's keeping their cost down or offering a new product or improving the product they have, uh it's just really not the case that people will just come to San Diego.

Uh we have to continue to compete.

And uh while there may always be people coming um that length of which they stay, whether they show up two days early to be able to enjoy the city, stay two days after, uh, that whole uh that whole component is really uh where that competition where we're fighting for.

Uh so I appreciate the analysis that you're putting forward and uh for the fact that we're doing our best to maintain and upgrade the convention center.

Um which uh which specific investments at this point or modernizations do you think would make the biggest impact as we look to can't maintain that competitive edge because uh operationally the quality of your building, the feeling of the building uh really does uh add uh that length of time that people stay, the desire for the planners of conventions to stay, so um capturing the economic benefit of people staying here longer, showing up and then staying here longer.

What what's that investment or modernization effort that we need to really step up on, uh step up with as a city uh vis-a-vis our competitors one thing I think that's important about modernization that to clarify when our clients are saying modernization, they're talking about aesthetics, sexiness of the building.

When we, as the convention center are talking about modernization, we're talking about just getting to a reliable point with four key uh projects, which we're referring to, the roof and the central plant and electrical upgrades generator, things like that.

Our clients don't even see that.

And so that is important, but what's more important is exactly what Daniel talked about, and the fact that we do need a bigger ballroom.

We need that exhibit hall space because that's how we're going to create more economic benefit for the region.

Understood.

Well, you also want a boiler too, right?

Uh that's in the central plant.

So we're going for that.

Maybe it's just been in city government for five years, but those the way the pipes work really does matter.

Uh comes to mind a lot often.

Understood.

Well, I I hear uh your advocacy loud and clear and appreciate the work you're doing.

Um also want to thank uh Juan Reyes, of course, uh, his good work and communication with uh other uh components of the city and uh Rip Ripito, appreciate you being here today as well.

It's great to see you and thanks for your leadership uh for many many years.

Um at this point, I have no further questions other than my uh who my deepest commitment to continuing to see us use this city asset to thrive for the entire region.

Um, and with that, no other questions or comments are on the lights.

Uh that brings us to the end of our agenda today.

So thank you very much.

And uh that will adjourn the economic development and intergovernmental relations committee for the year, and we will have our next regularly scheduled meeting on Thursday, January 15th, 2026 at 9 a.m.

Unless my daughter is born that day, then we'll figure it out.

Thank you, everyone.

Have a good holiday season and a happy new year.