Legislative Update
November 2023
By Craig Benedetto & Marshall Anderson, Legislative Advocates
REAL ESTATE ASSETS SHAKEUP
In a memo earlier this month, Mayor Todd Gloria announced that the Department of Real Estate Assets and Airport Management (DREAM) would be merging with the City’s Economic Development Department under the leadership of Christina Bibler. Penny Maus, who up until recently was leading DREAM, has left her position. In his memo, the Mayor said the move is aimed at streamlining operations and improving efficiency. To learn more, click HERE.
SAN DIEGO FINANCIAL OUTLOOK FORECASTS OVER $1B IN BUDGET DEFICITS
According to the City’s 5-year Financial Outlook, San Diego is facing projected budget deficits totaling over $1 billion over the next five years. Rising costs are primarily attributed to higher worker salaries, larger pension payments, and increased spending on homelessness. The city's long-term budgeting document also includes rising costs for vehicles, fuel, rent, and lawsuit payouts. City labor costs have risen over $111 million per year since 2021 while spending on homelessness has increased from $29 million to $47 million in the current fiscal year. Property, sales, and hotel tax revenues are expected to rise but not enough to outpace spending. The outlook projects deficits ranging from $115.4 million in fiscal year 2025 to $258.3 million in fiscal 2028. The city plans to seek spending cuts and is rumored to place a 2024 sales tax increase on the ballot. To view the full financial outlook document, click HERE.
MONTGOMERY-STEPPE VICTORIOUS IN COUNTY RACE, SPECIAL ELECTION SET FOR MARCH 5 TO FILL CITY COUNCIL SEAT
The San Diego City Council voted to set a special election for March 5 to fill the City Council seat currently occupied by Monica Montgomery-Steppe. Montgomery-Steppe will step down on December 5 after being elected to the County Board of Supervisors, District 4. The first candidate to file their intent to run for the soon-to-be-vacated city council seat is Chida Warren-Darby, Mayor Gloria’s current Director of Boards and Commissions. Other potential candidates include Henry Foster, Montgomery-Steppe’s current chief of staff, and Shane Harris, a self-proclaimed civil rights activist. For additional election information, you can visit the City Clerk’s page HERE.
CITY COUNCIL PRESIDENT ADJOURNS MEETING PRIOR TO VOTE ON MAYOR’S HOUSING PACKAGE
After several failed attempts at approving a BOMA-supported housing incentive package proposed by Mayor Todd Gloria, City Council President Sean Elo-Rivera elected to adjourn the meeting over concerns that one element of the package would contribute to community ‘redlining’. If approved, the item would have allowed developers participating in the City's Complete Communities program to build low-income and market-rate housing in separate locations rather than disbursing all units throughout one project site. Rather than approve the less controversial balance of items, including changes that would help speed the conversion of some commercial properties, the Council President decided to end the meeting. Efforts are afoot to bring the item back before the end of the year. To review the city’s proposal, please go to their HAP 2.0 webpage HERE.
SAN DIEGO STARTS SEARCH FOR NEXT POLICE CHIEF
With current Chief of Police, David Nisleit, set to retire in June of 2024, the City has hired a recruitment firm to conduct a nationwide search for his successor. The recruitment process will consider both internal and external candidates, and members of the community will be invited to provide input throughout the process. Chief Nisleit joined the San Diego Police Department in 1988 and has served in his current role since 2018.
CITY OF CARLSBAD DISCUSSES CLIMATE ACTION PLAN
The City of Carlsbad continues to seek public input from businesses and residents on its proposed Climate Action Plan Update. The high-level proposal has several thematic areas, rather than specific items it intends to pursue. At a City Council meeting earlier this month, numerous residents spoke on the need for more mandates on electrification and solar installation, particularly for business spaces. Billed by staff as a means for the Council to participate in the public input process, some of the Councilmembers echoed these desires. In addition, the Mayor specifically mentioned a desire for balance in the planning, with all of the Councilmembers desiring a cost study, which staff said would be completed next. BOMA San Diego has joined a business coalition to provide input to the city, including a letter of comment provided for the hearing.
CITY OF SAN DIEGO ANNOUNCES ANNUAL HOLIDAY CONSTRUCTION RESTRICTIONS
The City of San Diego’s Development Services Department announced its holiday construction restriction schedule. For the purposes of these restrictions, the holiday season starts Thanksgiving Day, Thursday, Nov. 23, 2023, and runs through New Year’s Day, Tuesday, Jan. 2, 2024. The restrictions apply to construction activities that adversely impact the public right of way, street parking, vehicle and bicycle travel lanes, or pedestrian sidewalks and parkways within identified areas. All other construction work outside of the locations outlined below can continue as permitted. For more information including the identified areas referenced above, please CLICK HERE.
COUNTY RELEASES DRAFT CLIMATE ACTION PLAN AND SUPPLEMENTAL EIR
The County of San Diego is inviting members of the public to review and provide feedback on its Draft Climate Action Plan and Draft Supplemental Environmental Impact Report. This plan includes a General Plan Amendment, guidelines for determining the significance of climate change, and a Climate Action Plan Consistency Review Checklist. The Draft CAP outlines strategies, measures, and actions to reduce greenhouse gas emissions in the unincorporated area and at County facilities, with a goal of achieving net-zero emissions by 2045. BOMA members are strongly encouraged to provide input by submitting comments to cap@sdcounty.ca.gov. The deadline for comments is January 5. To learn more and to view both documents, click HERE.
HILLCREST FOCUSED PLAN AMENDMENT RELEASED
The San Diego Planning Department released its Hillcrest Focused Plan Amendment to the Uptown Community Plan. The plan anticipates the construction of 30-story residential buildings with very high density, public promenades, and an estimated 50,000 more residents by 2050. The plan seeks to allow high-rise housing along transportation corridors and hospital campuses, as well as plans for transit initiatives like an aerial skyway, streetcar system, and commuter rail lines. To view the focused plan amendment, click HERE.
CITY OF SAN DIEGO RELEASED DRAFT MOBILITY MASTER PLAN
The City of San Diego has released its draft Mobility Master Plan for public review and feedback. The planning effort includes a policy framework linked to the General Plan and Climate Action Plan, a range of programs aimed at optimizing the decision-making process around civic capital investments, and a list of priority mobility projects in high-need areas. These projects include but are not limited to additional bicycle boulevards, roundabouts, slow streets, bus “flex” lanes, updated parking management, ride and scooter share, and eventually automated travel systems. Comments can be provided by clicking HERE. To read the full plan, please click HERE.
CHULA VISTA COUNCILMEMBER AND BROTHER INDICTED ON FRAUD, MONEY LAUNDERING CHARGES
Andrea Cardenas, a member of the Chula Vista City Council, and her brother, former Chief of Staff to San Diego Councilmember Stephen Whitburn, Jesus Cardenas have been charged with multiple felonies related to alleged misuse of $176,000 in federal COVID-19 relief funds. The funds, which were provided to Grassroots Resources, a political consulting firm founded by Jesus Cardenas, ended up being used to pay employees of a marijuana dispensary in addition to payments made into an account for Andrea Cardenas’ election campaign. The charges include conspiracy to defraud, grand theft, money laundering, and failure to file tax returns. Both siblings are scheduled to be arraigned in court. If convicted on all counts, both siblings could be facing between 4 and 6 years in custody.
LA TRANSFER TAX MEASURE LAWSUIT DISMISSED
An L.A. County judge has tentatively dismissed a lawsuit brought by several property owners and taxpayers groups challenging Los Angeles' Measure ULA, coined the "mansion tax" by proponents. The tax which imposes a 4% charge on real estate sales above $5 million and a 5.5% charge on sales above $10 million passed last year and went into effect in April. Since its imposition, real estate transactions on all properties have plummeted, causing the City of LA to revise budget projections by downwards of 90%. The decision by the Superior Court judge was not unexpected given the nature of the trial court, and those who sued have already indicated they intend to appeal. Nevertheless, it’s an indication that the fight to stop these kinds of detrimental taxes is at the ballot.
It should be noted that local affordable housing developers who are proposing their own measure for the City of San Diego have adjusted their taxable tiers and rates. These new rates make it far more onerous and much worse than LA’s measure. Those taxable tiers and rates, as currently proposed are:
- $2.5 million up to $4 million - 2.5% tax
- $4 million up to $6 million - 3.5% tax
- $6 million up to $10 million tax - 4.5% tax
- $10 up to $25 million - 5.5% tax
- $25 million and over - 6.5% tax
According to proponents, 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 San Diego has concerns about the chilling effect such a tax would have on jobs creation, cost of living and the economy and is helping form a coalition to oppose this poorly conceived measure. If you’d like to get more involved or learn more, please contact the BOMA San Diego office.
DSD ONLINE SERVICES UPGRADE FOR DISCRETIONARY PTS PERMITS APPLICATIONS
The Development Services Department (DSD) has converted all active Project Tracking System (PTS) “hybrid” Discretionary Permit applications to a fully cloud-based, online permitting system. The digital conversion replaces the interim "hybrid submittal process" implemented between May 2020 and Dec. 2021. All OpenDSD Hybrid PTS projects currently in review will be closed to accommodate the online services upgrade. All active discretionary PTS permit applications using the hybrid submittal process will be converted to PRJ permit applications using the DSD Online Services customer portal. Customers are able to access project status, project issues reports, documents, and invoicing through DSD’s Online Services portal.
HOMELESSNESS UPDATES:
- County Mulls Encampment Ban: The San Diego County Board of Supervisors provided unanimous direction to explore a ban on tent encampments in the unincorporated parts of the county. The bipartisan vote directs staff to draft an "Unsafe Camping Ordinance" and research properties that could potentially house new shelters, before returning for final adoption.
- Plan for Airport-Adjacent Homeless Shelter Receives Opposition: A Change.com petition has gathered thousands of signatures in opposition to a City of San Diego plan to convert the H Barracks site, which rests off Harbor Drive next to the airport, into a shelter site for homeless individuals. The City anticipates that the site could accommodate 300 to 700 people in multiple large tent shelters and a safe campsite or parking lot for those living in vehicles. The city is currently analyzing the site and plans to engage the community once its plans are finalized. The site is expected to be in operation for up to five years before eventually housing a Pure Water processing site.
- Oceanside Proposes Safe Parking Program: The Oceanside City Council has proposed a safe parking program for homeless individuals. City staff will present a list of site options for the program in January.
NATIONAL CITY APPOINTS NEW CITY MANAGER
Benjamin Martinez, who has been serving in an interim city manager role, has been selected to become the new city manager. Martinez stepped into the role in August after the unexpected passing of Armando Vergara, who had been promoted to city manager just two days before his death. Martinez may be charged with exploring the possibility of becoming a charter city after the city council directed the City Attorney's Office to return with a detailed report on the pros and cons of doing so. If the city decides to pursue charter city status, it would require approval by a majority of voters.
FRANK URTASUN CHOSEN TO CHAIR PORT COMMISSION
The San Diego Port Commission has chosen new board officers, with Commissioner Frank Urtasun to serve as the new board chair, Commissioner Danielle Moore as vice-chair, and Commissioner Ann Moore as secretary. Commissioner Sandy Naranjo, who was censured last month for alleged misconduct, voted against the motion. Naranjo’s censure comes on the heels of alleged retaliation against the Port's general counsel, Tom Russell, after he sought information about a labor union consulting business not initially disclosed by Naranjo.