Legislative Update
May 2023
By Craig Benedetto & Marshall Anderson, Legislative Advocates
TABLE OF CONTENTS
1. SAN DIEGO
a. AFFORDABLE HOUSING ADVOCATES EYEING PROPERTY TRANSFER TAX b. COUNTY TO HOLD AUGUST SPECIAL ELECTION TO REPLACE NATHAN FLETCHER c. MAYOR EYES 20TH AND B, BALBOA PARK LOT ‘O’ FOR HOMELESS CAMPSITES d. SAN DIEGO CITY COUNCIL DECLARES CIVIC CENTER PARCELS AS SURPLUS LAND e. SDPD STAFFING CRITICALLY LOW
f. SANDAG BUDGET FOCUSES ON BIKELANES, BORDER INFRASTRUCTURE, WHILE THE AGENCY AGAIN EYES SALES TAX INCREASE
g. SAN DIEGO LAND DEVELOPMENT CODE UPDATES NOW IN EFFECT
h. SAN DIEGO LABOR DEAL SEEKS TO BOOST HIRING, RETENTION OF CITY WORKERS
i. 7TH AND MARKET SITE DECLARED AS SURPLUS LAND
2. CARLSBAD
a. CITY OF CARLSBAD PUNTS BUILDING ELECTRIFICATION REACH CODE
3. NATION/WORLDWIDE
a. WHO ANNOUNCED END OF COVID-19 EMERGENCY
AFFORDABLE HOUSING ADVOCATES EYEING PROPERTY TRANSFER TAX The San Diego Housing Federation, a trade group representing affordable housing builders, is kicking the tires on a new tax on the sale of real property in San Diego to pay for affordable and homeless housing. While specifics are scant, the proposal is modeled on Measure U in Los Angeles, which passed this past election cycle. Though it’s subject to change, the Federation’s current proposal would charge a tax upon sale of property over certain values, escalating as the value increases and indexed for inflation.
It is reported that the tax rates would be applied as follows. For properties valued at:
$1.25 million and 2 million - 1.75% tax
$2-5 million tax - 3% tax
$5-10 million tax - 4% tax
$10-25 million 5% million tax
$25 million tax 6% tax
The proposed transfer tax increase would raise an estimated $200 million per year and be used to fund building and managing affordable housing, as well as preserving and rehabilitating existing affordable housing. BOMA has significant concerns about the chilling effect such a tax would have on jobs creation and the economy and is monitoring the situation closely. It is clear from the example in Los Angeles that the impact to small businesses and rental housing is real and dramatic. We anticipate more action to come shortly.
COUNTY TO HOLD AUGUST SPECIAL ELECTION TO REPLACE NATHAN FLETCHER The San Diego Board of Supervisors unanimously voted to hold a special election to determine the successor to former Supervisor Nathan Fletcher. Fletcher’s resignation went into effect May 15th following accusations of sexual misconduct. The board had the option to appoint a replacement, hold a special election, or appoint an interim supervisor until an election could take place. The board ultimately decided to hold a primary election on August 15 with a potential runoff on November 7. Three candidates have announced their intention to run, including Republican Amy Reichert, Democrat and current City Councilmember Monica Montgomery Steppe, and marine veteran Janessa Goldbeck.
MAYOR EYES 20TH AND B, BALBOA PARK LOT ‘O’ FOR HOMELESS CAMPSITES San Diego Mayor Todd Gloria has announced that two city-owned parking lots adjacent to Balboa Park will be used to house homeless individuals in an effort to boost the housing supply as Councilmember Whitburn’s Homeless Encampment Ban makes its way to City Council, tentatively set for June 6th. Both sites would allow for ‘safe camping’ with one site able to accommodate up to 400 tents and the other site up to 136. The safe sleeping sites are seen as alternatives that people may be more willing to accept instead of moving into congregate shelters. To read more, please CLICK HERE.
SAN DIEGO CITY COUNCIL DECLARES CIVIC CENTER PARCELS AS SURPLUS LAND The San Diego City Council voted to declare six blocks owned by the city in the civic center core as surplus land. Of the six civic center blocks, the current City Operations Building and adjacent parking lot is being focused on as the potential site of a new city hall. A “Notice of Availability” or NOA will be issued this month. While there aren’t any absolute conditions of the NOA, under the State’s Surplus Land Act, there are requirements for affordable housing and the city went further to encourage as much affordable housing as possible, with middle-income housing being an area of emphasis. The recommendation and council comments also showed a preference for preservation of a theater presence, as well as prioritizing bidders that have “strong labor agreements”. An additional preference would be for bidders to work with the San Diego Unified School District to explore a performing arts high school on the site. To learn more, please CLICK HERE.
CITY OF CARLSBAD PUNTS BUILDING ELECTRIFICATION REACH CODE
The Carlsbad City Council has tabled consideration of a natural gas ban in new buildings until July 11, citing concerns over a legal case filed by restaurant interests that overturned a similar ordinance in Berkeley. Given the uncertainty presented by the Berkeley litigation, instead of banning natural gas appliances outright, some councilmembers expressed their desire to pursue a reach code that would encourage building electrification without making it mandatory. Some residents spoke in favor of all-electric buildings, citing safety and climate change concerns, while others expressed concerns about the environmental costs of electric appliances and the reliability of the electric grid. BOMA will be tracking this, but if you have any interest, please contact us at craigb@calstrat.com.
SDPD STAFFING CRITICALLY LOW
The City of San Diego is facing a growing number of police officer vacancies, prompting calls for increased recruitment spending. With over 200 vacancies in April, the shortage has resulted in slower response times, reduced proactive policing, and declining revenue from citations. Police
Chief David Nisleit warned that high attrition rates and impending retirements will exacerbate the problem without an aggressive marketing and recruiting campaign. The City's Independent Budget Analyst predicts a loss of approximately 60 officers each year due to retirements and those departing for other agencies. BOMA is tracking this since there is a direct relationship between these staffing levels and enforcement on the streets, particularly in areas with heavy populations of homeless.
SANDAG BUDGET FOCUSES ON BIKELANES, BORDER INFRASTRUCTURE, WHILE THE AGENCY AGAIN EYES SALES TAX INCREASE
The San Diego Association of Governments (SANDAG) $1.2 billion budget for the upcoming fiscal year includes funding for capital projects such as regional bicycle lanes, relocating train tracks in Del Mar, and design of a new Otay Mesa East Port of Entry. A significant portion of the funding comes from the region's current half-cent sales tax (Transnet). After a signature gathering effort to raise the sales tax in 2022 failed, SANDAG's leadership, environmental groups, and labor organizations are once again looking at a potential ballot measure in November 2024. To read more, please CLICK HERE.
SAN DIEGO LAND DEVELOPMENT CODE UPDATES NOW IN EFFECT
The City of San Diego’s most recent Land Development Code Update items are now in effect as of May 6, 2023. The update process is undertaken by the City annually as a means of improving the Land Development Code. The most notable update in this latest iteration is the change from the City’s definition of a “transit priority area” to a “sustainable development area” which better aligns with the practical, on the ground reality of proximity to transit facilities. To view the latest updates, please click HERE.
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WHO ANNOUNCED END OF COVID-19 EMERGENCY
The World Health Organization (WHO) announced an end to the COVID-19 emergency after more than three years. The decision to lift the emergency does not signify an end to the pandemic, and WHO officials have cautioned against countries dismantling their COVID response systems. Many countries have already ended their own states of emergency and moved away from almost all public health restrictions implemented to control the virus.
SAN DIEGO LABOR DEAL SEEKS TO BOOST HIRING, RETENTION OF CITY WORKERS San Diego is offering pay raises of nearly 23% to over half its workforce in a bid to retain staff and fill thousands of vacancies. The deal, part of new labor agreements with two of the city’s six employee unions, will consist of 5% raises this July, another 5% in January, 4% in July 2024, 2% in January 2025, and a final 5% in July 2025. City officials have blamed the vacancies for deteriorating services, and the new salaries aim to reduce pay gaps between San Diego employees and their counterparts in other government agencies.
7TH AND MARKET SITE DECLARED AS SURPLUS LAND
The San Diego City Council has formally declared city-owned property at 7th Avenue and Market Street, which was once cited for an upscale hotel, as surplus land. This means the city can start soliciting proposals for the East Village site, with a focus on low-income housing. The City will be seeking proposals that pay fair market value, with first priority given to proposals with the highest number of affordable housing units.