2021 Economic Development & Intergovernmental Relations Committee Priorities

DATE: January 6, 2021

TO: Councilmember Raul Campillo, Chair, Economic Development & Intergovernmental Relations Committee

FROM: Councilmember Vivian Moreno

SUBJECT: 2021 Economic Development & Intergovernmental Relations Committee Priorities (Print Memo)

In response to your memorandum soliciting priorities for the Economic Development & Intergovernmental Relations Committee, I urge your careful consideration of the following:

Small Business Assistance
It is critical that this committee remain vigilant in monitoring existing small business assistance programs and developing and growing new assistance programs to help small businesses throughout the city get through and recover from the COVID-19 restrictions that have severely impacted scores of businesses in every community of San Diego. Economic relief for small businesses in low-to moderate-income communities should be given special attention, including enhancing the Small Business Relief Fund for Black, Indigenous and Persons of Color small businesses in these areas, creation of a San Diego Promise Zone Equity Investment Fund and waivers for small business permit fees for all businesses making less than $25,000 per year. Reviewing ways to improve the existing small business assistance program and discussing what city regulations can be waived or adjusted that will make it easier for a business to continue operations should be discussed early in 2021.

Job Creation and Restoration
The COVID-19 pandemic has decimated jobs throughout a number of employment sectors but none more so than the service industry. This has created high unemployment in a number of low-income communities, such as Logan Heights and San Ysidro. As the economy begins to recover from the pandemic, it is important that a program be developed to provide assistance to businesses in bringing jobs back online and connecting unemployed individuals with job opportunities. The committee should discuss the development of city regulations and programs, as well as available state and federal programs that can reinvigorate employment sectors and help return people to work.

Access to Federal and State Grants
City lobbyists and the city’s Government Affairs team should monitor available state and federal grants available to the city and provide status updates to this committee on what grants were applied for, which we were successful in getting and recommendations on what grants and funding opportunities may be available to the city in the future. The report should include a tracking of lobbyist efforts to procure the grants applied for by the city.

Update from the Port of San Diego
The Committee should receive an update from the Port of San Diego on issues and projects it is working on cooperatively with the city. Such topics should include but not be limited to the following:

• Enforcement of the Barrio Logan Truck Route and associated parking solutions;
• Ensuring all Port projects meet the Community Emission Reduction Program (CERP) and Port District’s Maritime Clean Air Strategy (MCAS);
• Harbor Drive 2.0;
• Pond 20 site;
• Chula Vista Bayfront Project;
• Status update on the implementation of recommendations identified in the Port’s Barrio Logan Nighttime Noise Study Report such as building upgrades and obtain cranes and equipment to mitigate noise and pursue cranes and equipment.

Additionally, the committee should discuss with the Port a formal communications policy that will allow the city and Port to better coordinate and provide information to the city when Port tenant conditions affect city neighborhoods. An example of the need for better communication was the naval ship fire in 2020. The committee should receive a report on what happened with this event and what steps have been taken to ensure it does not happen again.

Penny for the Arts
The FY21 Budget reduced Special Promotional Programs funding for arts programs by 44% (from $14.2 million to $7.9 million for FY21). As the COVID-19 vaccine is expected to spur additional tourism and travel, this committee should discuss how best to reprioritize arts and cultural programs and utilize them as a tool to provide economic development and recovery throughout the city.

State and Federal Lobbying Updates
It is critical that this committee continue regular reviews of progress made by our state and federal lobbyists on the priorities submitted to them by the City Council through the legislative platform developed early in the year. Although general updates should be provided, the following areas are of particular importance:

• COVID-19 Support, Stimulus and Relief Funding
  • Relief funding to local municipalities
  • Small business grants and loans
  • Rental relief funding
  • Homeless services funding
  • Employment programs

• Tijuana River Valley

The City has had a state of emergency in-effect since 1993 in the Tijuana River Valley (TJRV) due to its history of hazardous contaminated solid waste, sediment and water quality issues. In 2020, significant rain events and power outages led the Tijuana River diverter to shut down, allowing hundreds of millions of gallons of stormwater runoff, impacted with trash, sewage, and other toxic pollutants, to enter the unlined channels in the United States. As we continue to work on resolving this issue, our lobbyists should seek Federal and State funding resources, such as through the California Disaster Assistance Act, the EPA’s U.S.-Mexico Border Water Infrastructure Program (BWIP), and grants offered through California Department of Fish and Wildlife (CDFW), to assist with the restoration, mitigation and cleanup efforts of the area. Additionally, the EPA’s Superfund program is responsible for cleaning up some of the nation’s most contaminated land and responding to environmental emergencies. Given the high volume of trash and poor water quality in the TJRV, our lobbyist should work with the EPA to take the necessary steps to include the TJRV on the Superfund National Priorities List (NPL) to help expedite the clean-up and protect human health. Finally, the City should formally request that the County of San Diego declare a state of emergency in the area due to the contamination and need for clean-up.

• Water Reliability and Infrastructure 
  • Potable Reuse Funding and Regulations
  • Water Infrastructure Finance and Innovation Authority (WIFIA) Funding 

• Housing and Homelessness Funding Opportunities
  • Assistance and incentives for increased construction of affordable housing. 
  • Increased assistance for first time homebuyer programs. 
  • Assistance to provide homeless services and permanent supportive 

• Port of San Diego 
  • Pursue Federal, State and Regional funding opportunities via our city lobbying team for the Harbor Drive 2.0 project which will help spur increased economic activity within the City. The City’s lobbying team should coordinate closely with the Port, SANDAG and Caltrans.

• Border Economy 
  • The city should more aggressively pursue policies to preserve business and commerce along San Ysidro Boulevard and the adjacent Business District. 
  • Continue efforts to preserve banking and currency exchange services along the border. 
  • Pursue Federal, State and Regional funding opportunities via our city lobbying team for the following improvements near the Otay Mesa Border Region which will help spur increased economic activity: 
    • Otay Mesa East Port of Entry Project (Otay II):
      • In December 2020, the California Transportation Commission (CTC) approved $42.5M in Trade Corridor Enhancement Program grant funding for the Otay Mesa East Port of Entry Project. This is a multi-agency project and the City lobbying team should coordinate closely with the County of San Diego to ensure it receives the state and federal support required to allow the project to move forward swiftly. 
    • Palm Avenue / I-805 Interchange Project:
      • This project is critical for the movement of residents and retail commerce activity. The City lobbying team should continue to pursue funding opportunities for this project, specifically pushing for BUILD grant funds, which this project failed acquire such back in May 2020. 
  • Pursue Federal, State and Regional funding opportunities via our city lobbying team for the following infrastructure improvements near the San Ysidro Port of Entry, which will help spur increased economic activity: 
    • San Ysidro Intermodal Transportation Project:
      • The San Ysidro Project at the San Ysidro Port of Entry is a multi-agency project that the city lobbying team should coordinate with partner agencies to procure state and federal funding. 
    • Caltrans related projects that city should lobby to have funded in 2021:
      • Off ramp improvements to the Via De San Ysidro freeway exit on I-5 as demonstrated in the San Ysidro Community Plan Update. 
      • Off ramp improvements to the freeway exit at the Dairy Mart Road exit on I-5.
  • Pursue state and federal grant funding for infrastructure improvements near the San Ysidro Land Port of Entry, specifically sidewalk widenings and pedestrian friendly corridors to spur border economy. 
  • Pursue state and federal grant funding for mitigation of air pollution and health issues caused by San Ysidro border traffic.