September 1, 2022

It goes without saying that droughts are bad, and we’re really proud of you for doing your part to conserve water. Whether you’ve banned your teenager from 30 minute showers, or let your garden go brown, or have completely stopped doing the dishes at all (bravo!), every little bit matters.

However, drought has also brought us some rather unexpected discoveries… including an unexploded bomb (yikes), and a warning about pending death (yay?) Check out the full list here.

The next Chamber Summit will be taking place on Monday,  August 29 from 2:00 PM to 3:00 PM. We will welcome business groups, chambers, and business improvement districts from across the region to share best practices and learn about pressing policy priorities in our region.  You won’t want to miss it! Click here to register.

Business Updates

Meet ‘Mr. San Diego’ 2022: our very own Jerry Sanders!

Last Friday,  SDSU cut the ribbon on Snapdragon Stadium. It will open to the public on September 3rd for the Aztecs’ season opener. The 35,000+ seat stadium will also be the new home for the San Diego Wave.

Congratulations to Chamber members Community HousingWorks and San Ysidro Health, who have started construction on Kimball Highlands, a 145-unit affordable apartment complex which will also open a 44,000-sq foot health center for elderly patients.

Cute Baby Animal Alert! The San Diego Zoo Safari Park just announced the arrival of a male white rhino calf born on Aug 6. This is a success story from the San Diego Zoo Wildlife Alliance’s breeding program.  Look at this adorable video of him playing in the mud with his mom, Livia.

It’s a bird, it’s a– nope, it was a bird that caused a power outage to 14,000 SDG&E customers in East County on  Wednesday morning.

San Diego’s “Best New Home Builder” is: Chamber member Tri Pointe Homes! Congratulations on winning the title for the 6th time!

Legislative Updates

Federal: 

Fauci has officially had it with us. He has announced he will step down from his federal role in December (but not retire).

After months of pressure from the Twitter-wielding young adults (kidding! Kind of), Biden announced he would be canceling up $10k of student debt for borrowers earning $125k or less annually, and up to $20k for Pell Grant recipients. It’s complicated, but it’s a win for most borrowers. Senator Bernie Sanders is not thrilled by the cap, and Senator Mitch McConnell has dubbed it socialism.

The CHIPS bill $$ already has people plotting, and while we continue to learn more about the programs and funds involved, San Diego is at an interesting point. Undoubtedly, companies grounded here like Qualcomm will flex their brain power and launch into new phases, but the bill also requires 20 new hubs to be set up around the country. San Diego, with our brainiacs and their research already here, will not be one of them. Which begs the question, which of our neighbors should we nominate?

That reconciliation bill that was signed recently did include funding for the IRS. And because we are living in looney-tunes times, the IRS is forced to begin issuing notices to its staff that there have been new threats against the agency requiring additional security reviews. The already poorly favored agency and its staff are experiencing an uptick in violent threats due to the belief that they will increase enforcement.

That’s all, folks. U.S. Citizenship & Immigration Services have accepted all the petitions it can accept for the H-1B visa program for FY23.

In some surprising news, Democrats seem to be building a late game surge for the midterms. A recent special election in the swingy NY-19 just went to the Democrats, and as many experts are pointing out this may be a sign that a “red wave” might be a “red splash”.

International: 

The Chamber team joined SANDAG, Caltrans, and regional elected officials and stakeholders to celebrate at a groundbreaking event for the Otay Mesa East Land Port of Entry. With 90% of California’s exports to Mexico traveling through our land ports and over $1B travelers crossing the border within our region each year, the project will help reduce wait times that cost nearly $2B to our region’s economy.

Following last week’s announcement of the $474M binational investment in sanitation projects to address transboundary wastewater flows in the Tijuana River, Baja Governor Marina del Pilar Avila  hosted a public meeting to share an overview of infrastructure projects to be implemented south of the border. These efforts come as a result of the implementation of Act 328, an effort that outlines the largest investment in forty years of resources to modernize and expand sanitation projects across the region.

Companies across the U.S., Europe, and Japan reported drops in business activity in August, led by declines in the manufacturing and service sectors. You can blame high inflation, material shortages, supply chain delays, and interest rate rises.

President Zelenksy gave an emotional speech for Ukraine’s 31st year of independence from the Soviet Union  and the 6th month anniversary of the Russian invasion. The U.S. continues its zealous support and just sent another $3 million in aid to strengthen its military resistance against the Russian aggressions.

The International Sustainability Standards Board (ISSB) proposed two rules on sustainability- and climate-related disclosures, drawing over 1,300 comments from 100+ companies. One major concern is how the ISSB’s rules would interact with the U.S. SEC’s proposal to require companies to report on emissions and climate risks, as well as questions about whether revealing this info could put companies at a competitive disadvantage.

The Biden administration is expected to weigh in this week on Iran’s latest offer to resume its compliance with the 2015 Iran nuclear deal. But don’t hold your breath: one official said that while a deal is closer than it was two weeks ago, numerous hurdles remain.

UC San Diego’s Rady School of Management and the Jacobs School of Engineering along with our partners  at the Smart Border Coalition, announced the third edition of the Border Innovation Challenge. This business plan competition focuses on the challenges presented by the U.S./Mexico international border and is open to students, faculty, staff, and recent alumni (no more than 5 years post-graduation) from universities from both sides of the border. Here’s a recording of the 2020 competition.

State:

Governor Gavin Newsom has vetoed a bill that would legalize safe injection sites in Los Angeles, Oakland, and San Francisco due to concerns that it could cause unintended, harmful consequences.

Assembly Bill 2011–key housing legislation that would unlock commercial real estate for residential use–has splintered organized labor. A new deal was just made that ties in AB 2011 and SB 6, with the Building Trades supporting the deal.

Shake it off. Seismic retrofit requirements, which are uber expensive and often require all new buildings, still weigh precariously over the proverbial head of hospitals. These req’s have been a target for legislation (it’s a tough time to ask hospitals to come up with billions for new buildings while they deal with pandemics and things), but have hit a recent snag as union demands come into play. TL;DR: SEIU-UHW wanted $25/hr wage to support the delay of seismic regs. Hospitals and SEIU-UHW worked on a deal until this week when either time or will came into play. No deal was reached, but you can bet on a $25/hr push at the state and locally.

Big spenders, yes. Big tippers, not so much. Californians were found to be the least generous restaurant tippers of all 50 states.

On Monday, Gov. Newsom’s administration announced that they will extend government-funded health insurance benefits to cover young, low-income adults living in California through the end of 2023, regardless of their immigration status.

The California Air Resources Board is expected to vote today to ban the sale of new gasoline powered vehicles by 2035, with the first benchmark being that 35% of new vehicle sales must be zero-emission by 2026. The Chamber will continue monitoring this ruling and provide you with updates.

California may have a uniformed apartment application process. AB 2559 creates a framework for renters to purchase reusable credit reports instead of having to pay for a new one each time they apply for an apartment. As it currently stands, the Senate has amended the bill to make it voluntary for landlords to accept these reports or to continue to have their own reporting process.

Local:

After missing the first deadline for homeless housing dollars, San Diego’s Housing Commission and developer Path Ventures will still receive $11.8 million in state Project Homekey funds for a 40-unit supportive housing project in El Cerrito.

On Tuesday, Rep. Mike Levin, County Supervisor Lawson-Remer, and other local officials weighed in on San Diego’s child care crisis. The discussion included recommendations to provide government subsidies to offset costs to families, funding for child care center staff training programs, and potential tax breaks for companies that offer child care benefits.

Gaylord Pacific Resort & Convention Center construction in Chula Vista is already catching the eye of other developers. Just across the street, acres of waterfront lay undeveloped. This week, one developer proposed a huge sports and entertainment, mixed-use venue. The councilmembers present seemed quite excited.

All we hear from the City’s updated climate action plan is “marshes, marshes, marshes!” – but for good reason. The plan commits officials to creating 700 areas of marshland (or wetlands) because they serve the dual purpose of removing greenhouse gasses like carbon dioxide and fighting sea-level rise by acting as a coastal sponge.

6,500 new students headed to SDSU’s campus last weekend, as the university welcomed the largest incoming class of Aztecs ever. More than 1,900 are from the local area, an increase of 23% from last fall.

San Diego County’s unemployment rate dropped to 3.1% in July, as industries like tourism and construction continue to bounce back post-pandemic. It’s not all good news though: the region’s labor force participation remains low.

Inflation is still rising, but you’ve probably noticed that some things are cheaper: prices for food in restaurants, household furnishings, and motor fuel have all come down over the last two months.

Scooter companies have been slow to comply with the City’s new regulations, which limit their use on sidewalks and require scooters to be parked in city-painted corrals. Just one of the four companies San Diego OK’d to continue operations – Bird – has deployed scooters since the rules went into effect.

#BigCityEnergy! Earlier this week, Mayor Todd Gloria recommended that the City move forward with the Midway Rising proposal to redevelop the Sports Arena property. Led by Zephyr, Chelsea Investments Corporation, and Legends, the plan proposes 4,250 homes, a 450,0000 square foot arena, a 200-room hotel, 250,0000 square feet of retail, 11 acres of park and open space, and more. Next Steps: Making it  through the Land Use & Housing Committee on September 8.

Speaking of #BigCityEnergy, Forbes named our very own Rady Shell the ‘coolest new concert venue’ in the United States!

It’s monsoon season! Unfortunately, with San Diego County mountain areas down 10 inches of water this year and the City of San Diego being down 4 inches of water, it is not expected to noticeably help our worsening drought conditions. However, flash flooding is possible over the next few days, be wary!

Don’t leave money on the table: the County’s Small Business Stimulus Grant Program to help organizations impacted by COVID-19 still has millions of dollars available. Local businesses and nonprofits can check their eligibility and contact their district representatives on the county website.

The County of San Diego’s Land Use and Environment Group (LUEG) departments seek four Deputy Directors to oversee policy, community engagement and outreach, and data analysis. There are career opportunities for one Deputy Director in each department: Agriculture, Weights and Measures, Department of Environmental Health and Quality, Department of Public Works, and Planning & Development Services. Learn more here!

There’s a new Cardinal in town! San Diego Bishop Robert McElroy will be installed as one of 21 new cardinals at the Vatican on Saturday. He is a known ally of Pope Francis and the only American among the cohort.

Upcoming Hearings

• The San Diego City Council will be in legislative recess from August 3 to September 6. The next regularly scheduled meeting of the City Council will be on September 12.
• SANDAG and MTS meetings will resume in September.

Capital Opportunities & Resources

• Better APC is hosting a free legal workshop for small businesses and entrepreneurs next Wednesday, August 31st from 6-8pm at San Diego Made Factory. 
• San Diego County’s Small Business Stimulus Grant funds are still available for local small businesses and nonprofits impacted by the pandemic. County Districts 1, 2, and 3 are still accepting applications. Learn more here.
• GO-Biz, along with the office of the Small Business Advocate, have created resources to help businesses seeking to grow, and those interested in the trucking industry. Check out the California Truck Guide and the Business Quick Start Guide for more information.
• Caltrans is hosting its 18th annual Procurement and Resource Fair on Wednesday, August 31! Caltrans purchasers and partners will have a list of goods and contracts they’re looking to procure, upcoming opportunities for small businesses, and more. To learn more and register click here.
• Applications for micro-enterprise home kitchen operations (MEHKOs) in the County of San Diego can be found here.
• The California Dream Fund has micro grants up to $10k available for entrepreneurs and small business creation.
• The California Rebuilding Fund is offering small businesses with fewer than 50 full-time equivalent employees loans up to $100,000. Learn more and apply here.
• Small business owners may currently receive $2,000 per employee that participates in the paid family leave program. Small business owners can apply here.
• Businesses can reach out to their nearest Small Business Development Center (SBDC), which has developed the Small Business Survival Resources Guide. SBDC can help with applying for COVID-19 relief, guiding you through available resources, and assisting with cash flow concerns, supply-chain interruptions, workforce capacity, insurance coverage, and more–all at no cost!

Future Chamber Meetings (Virtual) & Committee Actions

Sustainability & Industry Committee:

Our next meeting will be on September 1, 8:00am-9:00am via zoom.

Defense, Veterans, & Military Committee:

Our next meeting will be on September 7, 8:00am-9:00am via zoom.

Public Policy Committee:

Our next meeting will be on September 13, 8:00am-9:30am via zoom.

Health  Committee:

Our next meeting will be on September 14, 8:00am-9:00am via zoom.

Transportation & Land Development Committee:

Our next meeting will be on September 20, 8:00am-9:30am via zoom.

Cannabis Forum:

Our next forum will be on September 21, 8:00-9:30am via zoom.

Economic Development Strategy Working Group: 

Our next convening will be on September 27 at 9:00am via zoom.

International Business Affairs Forum:

Our next forum will be on November 17 at 10:00am via zoom.