JOBs CoalitionSan Diego City Council

Workforce Housing Impact FeeMonday, November 4, 2013

Presented by: Chanelle Hawken, San Diego Regional Chamber of Commerce

Deborah Rosenthal, Sheppard MullinCraig Benedetto, NAIOP

IntroductionJOBs Coalition

Represents over 50 Businesses and OrganizationsArena PharmaceuticalsAsian Business AssociationAssociated Builders and Contractors Associated General ContractorsAssure Controls, Inc.BIOCOMBioMed Realty TrustBioTork, LLCBuilding Industry Association of SD CountyBuilding Owners & Management Assn. (BOMA)California Apartment Association, SD ChapterCalifornia Restaurant AssociationChula Vista Chamber of CommerceCoalition for a Prosperous AmericaCommercial Real Estate Alliance of San DiegoCommNexusCONNECT Creative Electron, Inc.Downtown San Diego PartnershipEast County Economic Development Council

Filipino American Chamber of CommerceGreater San Diego Association of REALTORSHumanCentric Performance, Inc.Industrial Environmental AssociationInstitute of Real Estate Management, San Diego ChapterKevane Company Inc.McKinney Advisory GroupNAIOP, San DiegoNational Black Contractors AssociationNational City Chamber of CommerceNext GenOne Stop Systems, Inc.PfizerQualcommSan Diego Business Leadership Alliance San Diego County Apartment AssociationSan Diego County Taxpayers AssociationSan Diego East County Chamber of CommerceSan Diego Port Tenants Association

SD Regional Economic Development Corporation

San Diego Sports Innovators (SDSI)San Diego North Chamber of CommerceSan Diego Regional Chamber of CommerceSan Diego Venture GroupSan Ysidro Chamber of CommerceStrategic RoundtableTargesonTorrey Pines InvestmentTijuana Economic Development CorporationVektrexVertex PharmaceuticalsVista Chamber of CommerceWorld Trade Center San DiegoZ Microsystems

JOBs Coalition DOES NOT OPPOSE Affordable Housing, in fact, the Coalition has supported many policies that fund affordable housing.

(Density Bonus, Parking Ratios, Tax Increment Set Asides, SB 391, etc.)

Disagrees with the increasing the Workforce Housing Offset Fee, aka Linkage Fee, at this time.• Directed specifically at Businesses and Jobs creation

– The Inclusionary Housing Fee directed at residential builders• Only one of a handful of affordable housing recommendations adopted by

the City Council since 1990– City Council has failed to adopt dozens of policy recommendations proposed by

previous Affordable Housing Task Forces• Historically, proven incapable of generating the money needed to produce

enough affordable housing – Projected to collect only $775,000 in FY 2014

Introduction

Introduction

• Cumulative Impact of this fee and others impacting Small, Medium, and Large Businesses, why an immediate 500-900 percent increase now? – Unemployment remains above 7 percent, fee was slashed in 1996 when unemployment was

around 5 percent

• Places San Diego at a disadvantage to its competitor cities in the region, state, and the country that do not have such fees. – Carlsbad, Poway, Vista, Austin, Los Angeles, Raleigh, Phoenix

• San Diego is the only city in the region that has a linkage fee– If adopted, the Fee will be one of the highest Fees in the state

Economic Analysis

Economic Analysis

Legal Analysis

Legal Analysis

Legal Analysis

Stating the Business Case

Stating the Business Case

Conclusion