San Diego Smart Growth & Land Use Committee Meeting, September 21, 2017

The Smart Growth and Land Use Committee of the San Diego City Council met on September 21, 2017, to discuss several significant items, including a housing production goals report, companion unit (ADU) fees, and a proposed road connection in the Serra Mesa community. The committee voted unanimously to recommend approval of the Serra Mesa Community Plan Amendment for the Phyllis Place/Franklin Ridge Road connection, moving it to the full City Council.

Consent Calendar

• Item 1: Approved a consent item related to a bike lane and parking mitigation project on University Avenue. The motion by Councilmember Kate, seconded by Councilmember Gomez, passed unanimously after public speakers (Jerry Trussell, Executive Director of the Uptown Community Parking District, and Josh Clark, District 3 representative for the Bicycle Advisory Committee) expressed appreciation for the city's efforts.

Public Comments & Testimony

• Martha Welch: Expressed concern about housing development in downtown San Diego, stating that too many studios and one-bedroom units are being built, while family-sized units are lacking. She argued that recent housing is "not smart growth" and that buildings remain empty.
• Carol Green: Opposed the expansion of commercial marijuana facilities, citing the police chief's concerns about increased homelessness and negative community impacts. She urged the committee to prioritize community health and safety over industry profits.
• Kathleen Lippett (from San Diego's for Safe Neighborhoods): Criticized the City Council for ignoring the police chief's warnings and for supporting marijuana commercialization, which she argued would exacerbate crime and homelessness.
• Stephen Russell (from an unnamed housing advocacy group): Expressed strong support for the Housing Commission's report and recommended a local affordable housing bond, noting that state funds would require matching local resources.

Discussion Items

Housing Production Objectives and Targets

• The San Diego Housing Commission presented a report titled "Addressing the Housing Affordability Crisis: San Diego Housing Production Objectives 2018–2028." The report recommends that San Diego produce between 17,000 and 24,000 housing units annually to meet the 10-year need, which includes a backlog not accounted for in regional housing assessments.
• The report identified five main sources for potential housing units: transit-area rezoning, redevelopment of underutilized parcels, adaptation of disused light industrial zones (including MTS parking lots), infill on vacant lots, and accessory dwelling units (companion units).
• Analysis showed that approximately 40% of potential housing capacity exists in five central neighborhoods: Mira Mesa, Mission Valley, City Heights, North Park, and Uptown.
• The report also outlined six opportunities to unlock additional housing production, including changing parking requirements, moving to floor-area-ratio (FAR) zoning, improving development services capacity, and creating a cross-departmental grants working group.
• Councilmember Gomez expressed support for the report but called for a follow-up focusing on housing affordability, specifically for low-income residents, because he does not believe market-rate construction alone will solve the crisis.
• Vice Chair Alvarez echoed the need for targeted affordable housing, noting that the report's numbers must be accompanied by strategic decisions to ensure housing is accessible to those who need it most.

Companion Unit (ADU) Fees

• Planning Department staff presented an informational item on companion unit fees, at the council's request, to consider a two-year pilot program to reduce fees.
• The report identified 11 fees across three departments (Development Services, Public Utilities, and Planning). Nine fees are city fees that could be waived; two fees (school fees and the Regional Transportation Congestion Improvement Program (RTCIP) fee) are outside city jurisdiction.
• Presentation noted that current fees for a hypothetical 1,200-square-foot new detached companion unit total approximately $29,975. If all city fees were removed, the fee would drop to about $6,000, with a potential general fund cost of $1.4 million (based on assumptions).
• Public speakers expressed support for fee reduction, including Mary Leiden (Housing You Matters), Jared Bassler, Joan Ward, David Gadski, and Christy Little Mar. Joan Ward questioned the RTCIP exemption and asked for clarification from SANDAG.
• Councilmember Gomez proposed bringing an action item to the full City Council to reduce fees, specifically to exempt companion units from development impact fees (DIFs) for a two-year pilot. She noted that guest quarters (10 permitted annually) outpace companion units (likely 10 per year) because guest quarters are cheaper.
• The chair committed to working with the city attorney to draft resolutions for council action, sending a letter to SANDAG to request clarification on RTCIP exemptions, and exploring the possibility of waiving school fees.

Serra Mesa Community Plan Amendment for Phyllis Place Road Connection (Item 4)

• Staff Presentation: Planning staff recommended approval of a community plan amendment to add a 460-foot, four-lane road connection between Phyllis Place and Franklin Ridge Road, connecting Serra Mesa to Mission Valley (at Civita) and improving access to I-805. The project was initiated in 2008 as part of the Quarry Falls (now Civita) project approval. The road would not create new trips but would redistribute existing traffic, reduce VMT and GHG emissions, and improve police/fire response and evacuation.
• Public Testimony: Numerous speakers presented both in support and opposition. Supporters included former Councilmember Jim Madaffer, representatives from H.G. Fenton, LCG Friars, Circulate San Diego, and several homeowners associations (High Park, Escala, and others). They cited safety (emergency access), connectivity, reduced congestion on Mission Center and Friars Roads, and regional benefit. Opponents included the Serra Mesa Planning Group, residents of Abbott's Hill, and the Save Civita group. They raised concerns about pedestrian safety, increased traffic on residential streets, failure to achieve emergency access improvements, questionable VMT analysis, and the impact on the local park and school.
• Committee Discussion: Chair Sherman made a motion to approve staff's recommendation, stressing public safety and the road's regional benefit. He noted that Civita residents signed leases indicating the road was a possibility. Fire Marshal Perry emphasized the critical need for a second access route. Councilmember Kate seconded the motion. Councilmember Alvarez requested that the EIR be amended to explicitly note bike lanes and street design manual compliance, and that drawings of the lane transition be provided to council.

Key Outcomes

• Housing Report: Accepted as informational; no formal vote.
• Companion Unit Fees: No formal vote; the chair committed to bringing an action item to the full City Council to reduce fees, likely exempting companion units from DIFs, and to send a letter to SANDAG about RTCIP fee exemptions.
• Serra Mesa Road Connection: The committee voted unanimously (5-0) to recommend that the City Council certify the EIR and approve the Serra Mesa Community Plan Amendment. The vote included a directive to amend the EIR to ensure bike lanes and street design manual standards are included in mitigation measures, and to provide additional engineering drawings to the council before final action.