Land Use and Housing Committee Meeting – March 6, 2019

The Land Use and Housing Committee of the San Diego City Council met on March 6, 2019, at 9 a.m. Committee members present were Chair Georgette Gómez, Councilmember Chris Ward, Councilmember Scott Sherman, and Councilmember Lorie Zapf (by attendance). The meeting addressed a lease agreement with the Timken Museum of Art, informational reports on accessory dwelling unit (ADU) pilot programs and housing production from the San Diego Housing Commission, and a major item on the Morena Corridor Specific Plan.

Consent Calendar

• The committee unanimously approved the record of action items from the February 6, 2019 meeting and five consent agenda items without discussion.

Public Comments & Testimony

• Non‑agenda public comment: Terry Skelly (spoke about a planning group matter regarding an application that had changed applicants; requested the planning group review it again).
• Item 6 – Timken Museum lease: Megan Pogue (Executive Director) and David Kinney (Board Member) spoke in support, thanking city staff for the negotiation process and highlighting the museum's free admission, educational programs, and community partnerships.
• Item 7 – Morena Corridor Specific Plan:
  • Planning Commission representative: Jim Whalen described the Planning Commission's unanimous 6‑0 recommendation with eight amendments, including support for a pedestrian/bicycle bridge over I‑5, building stepbacks, density bonuses for parks, and stormwater treatment.
  • Organized opposition (10 minutes):
    • James Lamataro (Raise the Balloon) urged postponement until the in‑lieu fee loophole is closed, stating that developers of the two major transit sites plan to pay in‑lieu fees rather than provide on‑site affordable housing.
    • Howard Wayne (Linda Vista Planning Group ad‑hoc chair) asked the committee to postpone planning until inclusionary housing requirements are increased to at least 40% on‑site, arguing the value of the trolley and parking elimination should be captured for affordability. He stated that the environmental impact report found a lesser‑intensive development would produce fewer greenhouse gases than the proposed plan.
  • Speakers in favor:
    • Matt Adams (Building Industry Association) supported the plan, citing the need for housing and the city's enhanced density bonus program.
    • Tony Cutri (architect and resident) supported, noting his experience with transit‑oriented developments and that discretionary review kicks in above 45 feet.
    • Matthew Vasilakis (Climate Action Campaign) supported for climate goals and community infrastructure.
    • Andrew Malik (developer) supported but requested removal of CPAS B overlay on Claremont Drive to streamline permitting.
    • Margaret Schmidt (Claremont subcommittee chair) requested the low‑density or mid‑density alternative, maintaining four lanes on Morena Boulevard, and a pedestrian bridge over I‑5 completed before more than 2,000 units are built.
    • Stephanie Benvenuto (San Diego Regional Chamber) supported.
    • Sharon Gale supported dense development near transit.
  • Speakers in opposition:
    • John Ziebarth (architect/planner) criticized the plan for creating unavoidable traffic impacts and for not analyzing buildout without the proposed grid system.
    • Kip Tang (business owner) expressed concern about potential closure of Naples Place affecting deliveries.
  • Additional registered opposition (no speech): Kurt Martin, Mike Baker, Patrick Phillips, Rolando Ogett, Theresa Ogitt.

Discussion Items

Item 6: Timken Museum of Art Lease

Staff presented a 20‑year non‑profit lease with the Putnam Foundation, doing business as the Timken Museum, for $3,597/year (CPI‑adjusted). The museum, always free and serving 250,000 visitors annually, plans an underground expansion costing at least $10 million. The lease includes the plaza area, a coffee cart (10% of gross revenue to city), and 50% of sublease income shared with the city. Committee members expressed strong support. Councilmember Ward proposed an amendment to direct the coffee cart and sublease revenues to the Regional Park Improvement Fund instead of the general fund, and to request City Attorney confirmation of charter permissibility. The motion passed unanimously.

Item 8: Companion Units Pilot Programs

Staff presented two pilot programs from the San Diego Housing Commission: (1) developing ADUs on Housing Commission‑owned single‑family homes (analyzing 40 properties, building at least two units) and (2) a loan program to help homeowners build ADUs rented to low‑income households. The loan program would evaluate feasibility from other cities and bank partnerships. Construction in the development pilot is targeted by end of first half of FY2020; the finance pilot by end of second half. Councilmember Sherman discussed pre‑approved design templates and coordination with Development Services. Councilmember Ward supported exploring forgivable loans for ADUs to prevent homelessness. Chair Gómez noted the importance of increasing housing production. Informational item; no action taken.

Item 9: Housing Production Report 2008‑2018

Staff reported that since 2008 the Housing Commission has created or preserved over 11,400 affordable rental units (more than 9,000 completed, over 2,000 under construction), invested more than $220 million in loans, and authorized over $1.4 billion in multifamily housing revenue bonds. Examples included Mesa Verde, Atmosphere, and Mission Apartments, plus developments for seniors and veterans. A new online dashboard was introduced. Councilmembers Ward and Sherman requested annual breakdowns of production. Chair Gómez asked about total in‑lieu fees ($123 million) and what additional resources are needed to increase production. Informational item; no action required.

Item 7: Morena Corridor Specific Plan

Staff presented a 280‑acre plan increasing housing capacity from 996 to 7,016 dwelling units, establishing five districts, raising height limits (up to 45 feet by right, up to 100 feet discretionary), creating a modified grid street network, and improving bicycle and pedestrian access to the planned Mid‑Coast Trolley stations. Community planning groups had conditions: Linda Vista requested 40% affordable housing and 45‑foot heights; Claremont supported a low‑density alternative and maintaining four lanes on Morena Boulevard. The Planning Commission unanimously recommended approval with eight amendments. After public testimony, Councilmember Campbell moved to postpone the plan, citing community frustration and the need to address affordable housing requirements first. The motion lacked a second and failed. Councilmember Sherman then moved to approve staff’s recommendation except to maintain Morena Boulevard as a four‑lane collector (with a reduced median but retaining the protected cycle track). Councilmember Ward seconded and added an amendment to (1) direct the City Attorney to analyze the ability to require 15% on‑site inclusionary housing for properties upzoned near the trolley stations under AB 1505, and (2) request an updated fiscal impact analysis for the design district. The substitute motion passed 3‑1, with Councilmember Campbell opposed.

Key Outcomes

• Timken Museum lease approved unanimously (3‑0) with amendment directing certain revenues to the Regional Park Improvement Fund.
• Companion units pilot programs received as information; no action.
• Housing production report received as information; staff to provide yearly breakdowns.
• Morena Corridor Specific Plan approved as amended (motion 3‑1) to maintain four lanes on Morena Boulevard and include directives on inclusionary housing analysis and fiscal impact review. The plan will proceed to the full City Council for final action.