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Ever Feel Like You've Been Blindsided
The housing crisis has reached a point where it is imperative that solutions be created and implemented.
Last year the city manager proposed increasing the linkage fee, the charge applied to all new commercial developments, in order to generate additional money for the housing trust fund.
Whether you are building a restaurant, a hotel or a hospital you will be charged a fee that is calculated based on the square footage of your building. Last year, the city collected approximately $1.4 million from linkage fees.
The San Diego Regional Chamber of Commerce and our business partner stakeholders originally opposed the city manager's proposal. Additional fees tied to commercial development might deter developers from building much needed commercial
space and persuade companies like QUALCOMM or Gen Probe from expanding here in the City of San Diego. The 17 other cities in this county would certainly welcome the opportunity to lure businesses from the City of San Diego.
Ultimately, a stakeholder group comprised of the Chamber, life sciences, high technology, restaurant, hotel and builder representatives, developed a compromise proposal. The group opted for compromise, rather than simply opposing an
increase, because we believe that the business community must be part of creating housing solutions.
It would be easy to oppose the increase but would that help generate money for affordable housing? More money is needed for the housing trust fund but we must not destroy opportunities for development, which would hurt the economy.
The San Diego Housing Commission estimated that after three years, our compromise proposal would generate over $5 million annually for the housing trust fund, an increase of three million dollars.
This compromise proposal, which was applauded by the Housing Commission board of directors, was special because major stakeholder industries moved forward on this matter with a unified voice. Members of the Planning Commission even
expressed surprise at the constructive discussions and subsequent compromise that occurred between the stakeholder group and the Housing Commission.
Unfortunately, when the proposal arrived at City Hall, things turned negative. When the Land Use and Housing Committee met on May 25, Council members Toni Atkins and Michael Zucchet unveiled a proposal far in excess of our collaborative
effort and showed that they could care less about the business community stakeholders' opinion and proposal.
We spent ten months working to avoid a negative situation and to live up to our promise to be a positive force, as it relates to the housing crisis, only to be blindsided by Council members Atkins and Zucchet.
At no time did either of them ask to meet with the stakeholder group, not even after the Housing Commission board meeting or the Planning Commission meeting. Instead, they opted to disregard our efforts.
People often wonder why the business climate in San Diego is turning sour, and this is just one example. This matter is not over. The Housing Commission staff has been instructed to use Councilwoman Atkins' proposal as the focal point,
calculate the numbers and return to Land Use and Housing.
The Chamber is opposed to Council member Atkins' proposal, which shows a complete disregard for our concerns about the economy.
We have great companies here in San Diego that are ready to expand. Unfortunately the disincentive to stay within city limits may be overwhelming as the blatant anti-business statements ring louder.
When this issue returns, we hope that other Council members will see this as an attack and instead support our efforts. The housing crisis requires cooperation and compromise, but actions like Councilwoman Atkins' make it hard to have
even a basic dialogue.
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2005 City of San Diego Mayoral Debate
Join us for a live debate between City of San Diego mayoral candidates who will be discussing their platforms and their vision for the future of the City of San Diego.
Where:
University of San Diego
Joan B. Kroc Institute for Peace & Justice
5998 Alcalá Park
When:
Friday, July 8
Cost:
$25 Advanced Price
$40 For All If Paid at the Door
$160 For a Table of Eight
In Conjunction With:
AeA, Asian Business Association, BID Council, BIOCOM, The Hispanic Chamber of Commerce and University of San Diego
For more information or to register for this event, please visit www.sdchamber.org under the calendar of events icon.
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Let the Chamber's Resource Center Store Help Your Business Grow
Are you looking for information about San Diego area companies, industries or employers? Are you new to town or considering relocation?
The San Diego Regional Chamber of Commerce's Resource Center Store has all the materials you need to fuel your business development efforts, help you reach your target markets and make the most of living and working in San Diego.
Offering the latest in comprehensive regional information, economic data, industry demographics, relocation packages, economic outlooks and more, the Resource Center Store is your one-stop source for San Diego business information.
For more information or to place an order,
click here or call (619) 544-1333.
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