Economic Development and Intergovernmental Relations Committee Meeting - April 16, 2026

The committee held a special meeting on April 16, 2026, to discuss two major agenda items: proposed amendments to the special event parking rates in downtown San Diego and the draft Fiscal Year 2027 Annual Action Plan for HUD entitlement programs. The meeting featured extensive public testimony, debate among committee members, and resulted in a motion to further study the parking rate changes before final action, as well as unanimous approval of the HUD action plan.

Consent Calendar

• The consent agenda (items 1-4) was approved unanimously (3-0). Items included:
  • Item 1: Approval of committee minutes from March 4, 2026.
  • Item 2: A ten-year lease agreement for 2,189 square feet of retail space with Rivian Samoil, doing business as Clown Market, at Montgomery-Gibbs Executive Airport, plus a first amendment for an additional 960 square feet.
  • Item 3: Relocation of the traffic control tower to the other side of the runway, approved by the FAA, to improve safety.
  • Item 4: Amendments to the live entertainment worker safety ordinance to extend coverage to city-owned properties.

Public Comments & Testimony

• Item 5 – Special Event Parking Rate Amendments:

  • Justine Murray (Vice President, Downtown San Diego Partnership) spoke in favor of the proposed 555 plan (reducing the rate to $5/hour, enforcement to 5 hours, and zone to five blocks), citing a 300% increase from previous rates and reporting declines in foot traffic and business transactions since September 2025. She presented data from member businesses showing reduced customer activity.
  • Heather Klein (downtown business owner) reported a 20% drop in guest counts, two employees assaulted returning to their cars, and difficulty attracting workers due to parking costs.
  • Paul Krueger (downtown resident) argued the current zone is too large (200 blocks, two-thirds of downtown) and unfairly burdens low-income workers and residents, urging a rate reduction to $2.50.
  • Fred (San Diego County Lodging Association) supported the 555 plan, stating it would reduce uncertainty for visitors and support the local economy.
  • Dominic Lamandry (East Village Association) supported the amendments, noting that most parking revenue is used to plug city budget holes rather than reinvested into the community.
  • Michael Tremble (Gaslamp Quarter Association) urged support for the 555 plan, emphasizing the impact on workers and visitors.
  • Jason Nichols (Radar Report) presented data showing a 12-20% dip in sales at Gaslamp restaurants compared to a 3% increase citywide, attributing it to locals avoiding downtown due to parking costs.
  • Chris Duggan (California Restaurant Association) supported the rollback, saying the high rates hurt team members and patrons.
  • Joyce (resident) expressed support for helping low-income residents but cautioned against gentrification and noted high costs at Petco Park.
  • Sa'ad Assad argued for using occupancy data rather than anecdotal evidence, and expressed concern that shrinking the zone would push parking to residential streets.
  • Malia Smith (restaurant general manager) spoke about the financial strain on employees with two jobs, who cannot afford transit alternatives.
  • Shane Harris (public advocate) supported the 555 plan, saying it is a smart, targeted fix.
  • Gary Hewitt (downtown resident) noted a double standard where private lots charge $60-100 per event while the city charges $10, and suggested a parking occupancy fee on private operators.

• Item 6 – FY2027 HUD Action Plan:

  • Multiple speakers supported CDBG funding for their organizations: Stephanie Ortega (Promises to Kids, requesting funds for a foster youth facility), Rhodi Saria (Urban Corps, for roof replacement), Angie Michena (Logan Heights CDC, for small business development), Jennifer Gilmore (Kitchens for Good, for a culinary impact center), Hassan Abdurhman (Somali Family Service, for economic development), Latoya McKelvin (Movement Matters Collective, as a program beneficiary), Marcy Roque (Traveler's Aid, for senior transportation), and others.
  • Becky Rapp requested that the city incorporate smoke-free multi-unit housing policies into the action plan.

• Non-Agenda Public Comment:

  • Christine Martinez and Bob Lehman (Arts and Culture San Diego) opposed proposed cuts to arts funding in the mayor's FY2027 budget, calling it an economic driver that supports 170,000 jobs and generates $10.8 billion.
  • Carlos Perfecto advocated for smoke-free outdoor dining to improve business and public health.
  • Peter Kaminski (Balboa Park Cultural Partnership) also opposed arts cuts, compounded by the impact of paid parking.
  • Other speakers addressed marijuana public health costs, benefit cliffs, and surveillance technology.

Discussion Items

• Item 5 – Special Event Parking Rate Amendments:

  • Summer Patton (Deputy Director of Policy for Councilmember Campillo) presented the proposed 555 plan: reduce the hourly rate from $10 to $5, shorten the enforcement window from 6 to 5 hours, and limit the special event zone to five blocks (quarter-mile) around Petco Park. She noted that the current rate prioritizes revenue over accessibility, harming workers, residents, and small businesses.
  • Jillian Andalina (Office of the Independent Budget Analyst) presented analysis showing that under the current program, average revenue per event is $25,000, totaling an estimated $2 million annually. Under the proposed changes, revenue would drop to $368,000 per event, netting $1.3 million less per year, though data is limited. She noted that the city only receives one cent per dollar in sales tax, so sales tax impacts are likely immaterial.
  • Committee members debated the proposal. Councilmember Campbell argued for waiting a full year of data (until September 2026) and requested detailed maps of parking usage and business impacts. She offered a substitute motion to maintain current rates until data is available.
  • Vice Chair Lee noted that the $10 rate exceeds the cost of a citation ($52.50), and that private lots charge less. He supported changes but not necessarily a specific $5 cap, and emphasized the need for data-driven policy.
  • Chair Campillo argued that the current policy is a blunt experiment that hurts workers, with a minimum wage worker paying 33% of their wages to park. He highlighted the need for flexibility and responsiveness to community feedback.
  • After no second on the initial motion or the substitute motion, Chair Campillo offered a second motion to direct the city attorney to work with Council District 7 to develop amendments to the rate, geographic zone, and enforcement hours, with consideration of private lot pricing, updated data, and a current survey of walking distances. This motion was seconded by Councilmember Campbell.

• Item 6 – FY2027 Annual Action Plan for HUD Programs:

  • Melissa Villalpando and Nadine Hassoon (Economic Development Department) presented the draft plan, which includes:
    • CDBG: $13.8 million for economic development, public facilities, public services, and homeless services.
    • HOME: $31.5 million (including $30 million for rental housing production and $378,000 for first-time homebuyer assistance).
    • ESG: $969,322 for shelter, outreach, and homelessness prevention.
  • Proposed allocations include $2.3 million for economic development, $2.3 million for nonprofit capital improvements, $1.26 million for public services, and $441,000 for homeless services (family shelter program).
  • The committee recommended approval to the full council.

Key Outcomes

• Item 5: A motion passed (3-0) to direct the city attorney to work with Councilmember Campillo's office to draft amendments to the special event parking rate, geographic zone, and enforcement hours. The motion requires consideration of private lot pricing, updated data from a current survey, and detailed maps of parking usage and business impacts. The amendments will be presented at a future city council meeting. The committee acknowledged the need for more data before finalizing the rate, but rejected waiting a full year.
• Item 6: The committee voted unanimously (3-0) to recommend council approval of the Fiscal Year 2027 Annual Action Plan and associated actions (items 1-20). The final plan will be submitted to HUD by May 15, 2026, after the public comment period ends on May 7, 2026.
• The meeting adjourned following non-agenda public comment.