San Diego Land Use and Housing Committee Meeting on Midway Site Development and Affordable Housing Fund (April 21, 2022)
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San Diego Land Use and Housing Committee Meeting – April 21, 2022
The Land Use and Housing Committee of the San Diego City Council met on April 21, 2022, at 9:00 AM to consider two major agenda items: the shortlisting of development teams for the redevelopment of the 48.5-acre Midway Sports Arena site under the Surplus Land Act (SLA), and the proposed Fiscal Year 2023 Affordable Housing Fund Annual Plan. The meeting included public comment, staff presentations, and committee deliberation.
Consent Calendar
- Approved the committee action minutes of March 10, 2022, unanimously.
- Approved the consent agenda (Items 1–4) unanimously, including the sale of city-owned airport land at 9575 Arrow Drive, a lease amendment at Montgomery Gibbs Executive Airport, a license agreement with SDUSD for open space trails at University City High School, and a lease amendment for a city communications facility on a U.S. Navy complex.
Non-Agenda Public Comments
- Daniel Smikowski (District 2) opposed the city's proposed ADU ordinance, expressing concern about setbacks, height limits, parking, and occupancy restrictions, and urged the city to roll back the proposal.
- Becky Rapp (parent and public health educator) requested that the city ban marijuana billboards on local highways to protect youth, citing state law and research linking teen exposure to increased use.
Discussion Item 5: Notice of Availability for the Midway Site – Recommendation to Shortlist Development Teams
Staff (Penny Moss, Director of Real Estate and Airport Management) presented that the city received seven responses to the NOA, five of which were responsive. The five teams presented their proposals:
- Discover Midway (Affirmed Housing, ASM Global, Brookfield Properties, National Corps): 1,035 affordable units at 56% AMI, no middle-income units, 2,242 market-rate units, arena renovation, 11+ acres of parks/open space. Offered to self-finance affordable housing gap financing (estimated $100 million), avoiding regional subsidies.
- Hometown SD (Monarch Group, Essex, Eden Housing, JMI Sports): 1,726 affordable units at 40% AMI, 305 middle-income units, 1,219 market-rate units, replace arena, 18+ acres parks/open space, 300-key hotel. Committed to 62.5% affordable + middle-income housing.
- Midway Rising (Zephyr, Chelsea, Legends): 2,000 affordable units at 40% AMI, 250 middle-income units, 2,000 market-rate units, replace arena, 20 acres parks/open space, 200-key hotel. Included a community benefits framework with child care, health care, broadband, and a hospitality career training center.
- Midway Village Plus (Bridge Housing, Toll Brothers, Revitate): 1,610 affordable units at 48% AMI, 600 middle-income units, 2,000 market-rate units, new multi-purpose venue, 12-acre central park, 250-key hotel, 300,000 sq ft office. Included on-site child care and units for acutely low-income households.
- Neighborhood Next (CONAM, Community Housing Works, Wakeland, Malik): 1,650 affordable units at 53% AMI, 1,100 middle-income units, 2,950 market-rate units, arena renovation (once partner secured), 14 acres open space, 125-key hotel, 35,000 sq ft cultural center. Emphasized being the number one in total housing and middle-income units.
Staff recommended shortlisting Midway Rising (highest affordable units and deepest affordability), Hometown SD (second), and Midway Village Plus (third), consistent with SLA priority. The recommendation was based on the number of affordable units and affordability levels, with HCD concurrence on the approach.
Public Testimony (23 in-person, 22 virtual speakers):
- Midway Pacific Highway Community Planning Group Chair DK Aniwo requested that all five teams be advanced for further analysis, citing unanswered questions about density, infrastructure, mobility, climate goals, and financial feasibility. He emphasized that the community plan allows ~2,000 units on the site, while proposals exceed that.
- Doug Austin (architect/former planning commissioner) urged consideration of unit quality, middle-income housing, and holistic circulation solutions.
- David Watson (Midway Rising) supported the staff recommendation and noted that SLA requires affordable housing on-site.
- Chuck Steedman (ASM Global, Discover Midway) requested inclusion of Discover Midway in analysis.
- Rick Bates (Unite Here Local 30) and Richard Disbro (IATSE Local 122) asked for all five teams to be analyzed, citing labor agreements and need for economic study.
- Andrew Malik (Neighborhood Next) urged all teams to move forward.
- Frank Pavel (resident) expressed concern about public awareness and urged thorough study.
- Byron Ware (former councilmember) recalled past projects and urged careful analysis of all five.
- Chuck Pretto (Kobey’s Swap Meet) asked to be included in the process and for all five teams to be studied.
- Mary Jane Jagodzinski (Community Housing Works) requested a consultant experienced in affordable housing before making a shortlist.
- Several student speakers (Aidan Lynn, Andrew Sitko, Rihannon Callahan, Aniala Drummond, Leanna Cortez, Matthew Ware, Wyatt Ewing, Rachel Lau, and others) urged prioritizing housing over a new arena and called for thorough vetting of all five proposals.
- Gretchen Newsom (IBEW 569) noted all five teams reached PLA agreements with trades council.
- Lori Saldania (former Assemblymember) asked for commitments to microgrids, on-site energy, and climate action goals.
- Kathy Jolly (Pacific Beach resident) supported Hometown SD for its community outreach.
- Carl Rand (Pacific Beach Planning Group) suggested prioritizing arena placement on the eastern side for transit access, favoring Hometown SD.
- Robert Trip Jackson (Peninsula Community Planning Board) agreed with the planning group’s call for fiscal analysis of all five.
- Robert Pearson supported Midway Village Plus for its bold vision.
- Isaac Lara (student) questioned staff’s top recommendation (Midway Rising) and urged independent analysis.
Committee Discussion and Vote:
- Chair Moreno moved to recommend that the city council conduct detailed due diligence and economic analysis on all five development teams, including a determination of local subsidy needed for affordable units.
- Councilmember Kate offered an amendment to include a priority order (Midway Rising, Hometown SD, Midway Village Plus) but after discussion, the committee adopted a motion (by Councilmember Whitburn, seconded by Chair Moreno) that agreed to the first sentence of Councilmember Kate’s proposal: recommending adoption of a resolution expressing the council’s preference to review all responses to the NOA so that the city may conduct detailed due diligence and economic analysis with up to five associated development teams. The motion did not include explicit prioritization.
- Councilmember Lacava voted against, arguing that the committee should shortlist a smaller number based on SLA priority.
- The motion passed 3-1 (Moreno, Kate, Whitburn in favor; Lacava opposed).
Discussion Item 6: Proposed Fiscal Year 2023 Affordable Housing Fund Annual Plan
Staff (Sikhet Tayal, EVP Business Administration, and Christelle Vanderwin, Finance Director) presented the plan. The fund has two sources: Housing Trust Fund (established 1990) and Inclusionary Housing Fund (established 2003). Projected fund balance for FY2023: $51 million, with $7.4 million in new collections, totaling $58.7 million. Proposed allocation: $45 million for rental housing production, $3 million for homeownership/ADU programs, and $7 million for homeless programs. Key changes: establishing a rental housing anti-displacement fund, renaming the companion unit pilot to ADU finance pilot, and expanding the capacity building program for homeowners developing ADUs. The committee was asked to recommend approval of $57.4 million in allocations.
Public Testimony:
- Jim Silverwood (Affirmed Housing) initially opposed the allocation but clarified after understanding that $10 million is for new production; he urged the city to supplement the fund.
- John Seymour (National Community Renaissance) expressed concern that only $10 million is available for new production, given at least 2,000 units in the pipeline, and asked for coordination with planning departments to project future needs.
- Lori Saldania asked for flexibility to fund nontraditional housing (e.g., faith-based projects) and suggested the housing commission work with Sandag’s housing equity committee.
- Stephen Russell (San Diego Housing Federation) noted that $6.6 million for homeless initiatives and $2.6 million for homeownership/ADUs are not housing production, and urged the city to use general fund for those activities to preserve the housing fund for production.
Committee Discussion and Vote:
- Councilmember Lacava moved to send the item to the full council without a recommendation, noting concerns about the use of fund for non-production activities. The motion passed unanimously.
Key Outcomes
- Item 5 (Midway Site): The committee voted 3-1 to recommend that the full council adopt a resolution expressing preference to review all five responsive development teams and conduct detailed due diligence and economic analysis. Staff will continue to consult with HCD. The item is expected to be docketed for full council after the May budget cycle.
- Item 6 (FY2023 Affordable Housing Fund): The committee voted unanimously to forward the annual plan without a recommendation to the full council for further discussion. The council will consider the proposed $57.4 million allocation and model program amendments.
The meeting adjourned at approximately [not specified] and the next regular meeting is scheduled for June 16, 2022, at 1:00 PM.
Meeting Transcript
54953E added by Assembly Bill 361, which allows a city to use teleconference, teleconferencing and to provide the public an opportunity to address the city council via call-in option or an internet based service option during a proclaimed state of emergency. While the public is allowed to attend the meeting in person, we do encourage you to maintain six feet of social distance as well as follow California mask guidelines where masks are strongly recommended. In addition to being able to attend in person, this meeting is being televised and live streamed on the city's website, and the committee liaison will continue to make arrangements for the public to comment using the Zoom webinar platform. Additionally, members of the public who wish to provide testimony via call-in or an internet-based service option must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted, whichever occurs first. This will allow for better meeting management between uh the two platforms and ensure the council is able to manage and conduct city business. And we do appreciate the public's cooperation. I will now call the special meeting of the land use and housing committee of Thursday, April 21st, 2022 to order. Now I'm gonna call, I'm gonna do the roll call. Vice Chair Locava. Present. Councilmember Whitburn. Here. Councilmember Kate. Here. And I'm Councilmember Vivian Moreno. Also attending in the meeting is Chris Ackerman Avila with the mayor's office. Uh Corinne Newfer with the City Attorney's Office. Julian Cassie with the Independent Budget Analyst Office, and Kevin Smith, the land use and housing committee consultant. If you're attending in person and wish to speak on an item, please complete a speaker slip located at the entrance of the chamber and place it in the box at the speaker's lectern at the front of the room. Please do so in a timely manner to ensure proper meeting management. Members of the public can join the webinar by computer, tablet, or smartphone by accessing uh accessing the link, which is listed online in the preamble language of the agenda on the city's webpage. The link to join the committee meeting webinar by computer, tablet, or smartphone is listed on the agenda. To join the Zoom webinar by telephone, please call 1669-2545252 when prompted input webinar number 161 042 5337 pound. This information is also available on the agenda and it's going to appear on the screen during the public comment period for each agenda item. Members of the public who wish to provide testimony via call-in or an internet based service option must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted, whichever occurs first. Please note that if you're watching via TV, uh City TV or online, there may be a delay. So please participate via the audio on your phone and mute your TV or computer when it's your time to speak. When I introduce the item you would like to comment on, please raise your hand by either tapping the raise your hand button or on your computer, tablet or smartphone, or by pressing star nine on your phone. You will be taken in the order in which you raise your hand, and you may only speak once on a particular item. When our committee consultant indicates that it's your turn to speak, they're gonna call uh they will call you by your name as it appears on the Zoom webinar uh attendees list, or they will read out the last four digits of your phone number. If you've called into the meeting, this is how you'll know it's your turn to speak. Uh if you're in person, please come up to the reserve seating in the front of the room when your name is called and be prepared to come up to the lectern uh in the order called. Uh if you've joined by webinar by computer, tablet, or smartphone, you will receive a pop-up notice to select to unmute your device. If you have uh called into the meeting by cell phone or landline, press star six on your phone to unmute yourself. We will review these instructions briefly again when the public comment period is um on an item is open. Please wait until the item you wish to speak to has been called before raising your hand to speak. If you raise your hand during a non-comment period, your hand will be lowered. Uh when you're announced as the next speaker, please unmute yourself and offer your comments. Also, don't forget, mute the volume on your TV or computer before you begin to speak. Uh quorum is now present, and we're going to take up the approval of the committee action of March 10th, 2022. Uh Mr. Smith, please proceed with public comment on this item. Thank you, Chair Marino. The public comment period for this item is now open. If you are attending in person, please be sure to have your speaker slips submitted and come up to the reserve seats at the front of the room when your name is called and be prepared to come up to the lectern in the order called. Members of the public who wish to provide testimony via a call-in or an internet-based service option must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted, whichever occurs first. If you have already joined the Zoom webinar online or by phone, please raise your hand if you wish to speak. If you are watching on City TV or the live stream online and would like to call into the meeting to speak, please call 1669-2545252. When prompted, input webinar ID 161-042-5337 pound. As a reminder, virtual speakers, please raise your hand to speak.
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