Land Use and Housing Committee: July 2, 2025 - Civic Center Vision, 101 Ash, Mission Bay, Children's Park
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Land Use and Housing Committee Meeting - July 2, 2025
The Land Use and Housing Committee met on July 2, 2025, at 10:00 AM. The committee considered a consent agenda, a vision for the Civic Center, surplus declarations for the City Operations Building (1222 First Ave) and Mission Bay Park parcels, a lease for a quick-service restaurant at Children's Park, and a ground lease for 101 Ash Street to create 247 units of affordable housing. All action items were approved unanimously (3-0) with committee member Moreno absent.
Consent Calendar
- Items 1–9 were approved unanimously. Items included approval of minutes, lease amendments, and acceptance of endowment funds for vernal pool preserves. Public comment was heard from Caesar Javier (opposed, citing lack of transparency) and Joyce Inyatta (supported family justice center, meal delivery, and water lab). Virtual speakers included Terry Ann Skelly (concerns about neighborhood safety and liquor stores) and John Brady (concerns about Campland lease policies).
Public Comments & Testimony
- Caesar Javier (on consent agenda): Opposed, arguing items were not priorities and city should focus on internal capacity. He also spoke against the Civic Center vision and 101 Ash, calling it propaganda and questioning the benefit to the homeless.
- Joyce Inyatta (on consent and items 10/14/12): Supported the family justice center, meal delivery, water lab, Civic Center vision, and Children's Park lease. Emphasized the need for transparency and excitement about the future.
- Terry Ann Skelly (on consent): Supported minutes but urged attention to neighborhood safety and reducing liquor/vape shops.
- John Brady (on consent, 10/14, 13): Spoke about Campland lease issues and food portions; supported the Civic Center vision but questioned per-unit cost at 101 Ash and raised concerns about AI's impact on downtown employment.
- Michael Aguirre (on items 10/14 and 13): Strongly opposed the Civic Center vision and 101 Ash deal, citing financial condition of the city, lack of transparency, and potential for private enrichment. Promised a lawsuit.
- Gregory Smith (Chancellor, San Diego Community College District): Supported the Civic Center vision, proposing a 50,000 sq ft World Art Collection facility as an anchor.
- Nathan Bishop (Downtown San Diego Partnership): Supported the Children's Park lease, citing placemaking and community benefits.
- Union representatives (Doug Hicks, Carol Kim, Anselmo Estrada): Supported 101 Ash project, highlighting union jobs, family housing, and turning a liability into an asset.
- Non-agenda public comment: Included concerns about air quality from a kiln, homelessness and county funding, smoke-free housing policies, ALPR surveillance, and AI impacts on jobs.
Discussion Items
Items 10 & 14: Civic Center Vision and Surplus Declaration for City Operations Building (COB)
- The committee heard a presentation from the Prebys Foundation, Downtown San Diego Partnership, and U3 Advisors on a vision for the six-block Civic Center area. The vision includes 3.7 million sq ft of development, 3,000 housing units, three acres of public space, a cultural/education hub (300,000 sq ft), and $3.5 billion in investment. The city is also asked to declare the COB (1222 First Ave) surplus land to allow redevelopment. The COB building is in poor condition with $128 million in deferred maintenance. Staff recommended declaring surplus and waiving council policy 700-10 for internal review. The committee discussed the importance of housing for all incomes, educational partnerships, and the need for a long-term city hall plan. Vice Chair Elo Rivera emphasized people as the top priority. The committee approved the surplus declaration with an amendment requiring the city's Project Labor Agreement (PLA) terms apply to any lease or sale of the COB.
Item 11: Surplus Declaration for Mission Bay Park Properties
- Staff presented a proposal to declare three parcels in Mission Bay Park (including leases for marina, restaurant, etc.) as surplus land to comply with the Surplus Land Act. The land is dedicated parkland under the city charter, and any development would require amendments to the Mission Bay Park Master Plan and approvals from the Planning Commission and Coastal Commission. Public comment opposed the surplus, citing the value of parkland. The committee approved the declaration with a similar PLA amendment, noting that the move is procedural to allow long-term leases for recreational uses, not necessarily housing.
Item 12: Lease for Quick-Service Restaurant at Children's Park
- The committee approved a 10-year lease (with a 5-year option) with the Downtown San Diego Public Spaces Foundation for a 700 sq ft kiosk at Children's Park. Rent is $378.18/month with 3% annual increases, and the tenant will cover operations and maintenance. The item was supported as a way to activate the park and generate revenue. Public comment was supportive.
Item 13: Ground Lease for 101 Ash Street – 100% Affordable Housing
- Staff presented a 60-year ground lease with MRK Create to convert the vacant 21-story office building into 247 units of affordable housing (30-80% AMI, average 60%), including 62 three-bedroom and 68 two-bedroom units, plus child care and retail. The city will provide a $45.6 million residual receipts loan (seller note) at 4% simple interest, with payments from surplus cash flow. The city retains ownership and will receive the improved building at lease end. The project relies on federal and state tax credits, with no city funding from Bridge to Home or Housing Commission. The Independent Budget Analyst deemed the deal fiscally sound. Public comment was split, with Michael Aguirre opposing (lack of documents, past litigation) and unions supporting (jobs, family housing). The committee approved the staff recommendation, emphasizing the need to review the full DDA and ground lease at council. The item will go to full council before legislative recess.
Key Outcomes
- Consent Agenda (Items 1-9): Approved 3-0.
- Item 10 (COB Surplus): Approved 3-0 with amendment to include PLA terms.
- Item 11 (Mission Bay Surplus): Approved 3-0 with amendment to include PLA terms.
- Item 12 (Children's Park Lease): Approved 3-0.
- Item 13 (101 Ash Ground Lease): Approved 3-0, with staff to finalize documents for full council consideration within 14 days.
- Item 14 (Civic Center Vision): Informational only; no vote needed.
- Next meeting: Scheduled for September 4, 2025, at 1:00 PM.
Meeting Transcript
Good afternoon. Welcome to the Land Use and Housing Committee meeting of July second, twenty twenty-five. Our committee lays on Natalie Klesler will go over instructions for today's meeting. Thank you, Chair. While members of the public are able to attend the meetings 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 closes. The queue will close when the last virtual 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 conduct city business. Council Member Campillo. Also attending the meeting today, Chris Ackerman Avila with Mayor Todd Gloria's office, Deputy City Attorney Corinne Newfer with the City Attorney's Office. Noah Fleischmann with the independent budget analyst office, and Angeli Hoyos, committee consultant. If you're in person, please complete a speaker slip located at the entrance of the committee room and place it on top of the box indicated near 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. 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 phone, please dial 16692545252. The webinar ID is 1606830623 pound. This information is also available on the agenda and 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 a delay. Please participate via the audio on your phone and meet your TV or your computer when it is your turn to speak. And if you wish to speak on a particular item, wait for that item to be called and then raise your hand to speak by tapping the raise your hand icon, or if you are a call in participant, press star nine on your phone. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you, Natalie, for reviewing those instructions for the benefit of the public. A quorum is now present. We will be hearing items out of order today. Uh we'll be uh starting with the consent agenda, which is items one through nine. We will then hear information um item number 14 combined with um item 10 of the discussion agenda, followed by items 11 through 13. Uh non-agenda public comment will be at the end of today's agenda. Uh once again, the order of today's meeting will be items one through nine, uh, combined items 10 and 14, followed by items 11 through 13 and non-agenda public comment. Uh, do we have any committee members, mayoral staff, city attorney, or independent budget analyst comments? Hearing none. Do we have any requests for continuance? Hearing none, we will now take up our consent agenda. Uh, do we have any requests to pull an item from the consent agenda? Seeing none, we will move forward with public comment on the consent agenda. Emily, please proceed. Thank you, Chair. The public comment period for the consent agenda is now open. The consent agenda includes items one through nine, except for item five, which was removed for the revised special agenda. The items are item one, approval of the committee minutes of June 5th, 2025. Item two, first amendment to lease between the city and alpine 26 LLC, Pacific 26 LLC, and Emory 26 LLC for 9275 Sky Park Court, San Diego, California. Item three, approval of the first amendment to the row solutions incorporated contract to provide meal delivery services. Item four, amend the 2020 River Park Maintenance Agreement between the City of San Diego and San Diego State University to approve a limited duration easement for SDSU to design, construct, and operate the one water learning laboratory and outdoor space for educational and research purposes near SDSU's Mission Valley Campus Village. Item six is seventh amendment to the lease between the City of San Diego and ING 525 B Street LLC for 525 B Street San Diego, California 92101. Item 7, First Amendment to lease agreement with Northeast MBLLC at 2727 Danza Road, San Diego, California 92109. Item 8, second amendment to lease agreement with Camp Land LLC at 2211 Pacific Beach Drive, San Diego 92109. And last item nine is authorize the city of San Diego to accept endowment funds for the creation of two special funds for the long-term management of two vernal pool preserves. Each speaker will have one minute per item. For speakers that wish to speak to more than one item, you will have a maximum time of three minutes, and please indicate which item or items you are speaking to.
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