JOBs Coalition San Diego City Council Workforce Housing Impact Fee Monday, November 4, 2013 Presented by: Chanelle Hawken, San Diego Regional Chamber of Commerce Deborah Rosenthal, Sheppard Mullin Craig Benedetto, NAIOP

Introduction JOBs Coalition Represents over 50 Businesses and Organizations Arena Pharmaceuticals Asian Business Association Associated Builders and Contractors Associated General Contractors Assure Controls, Inc. BIOCOM BioMed Realty Trust BioTork, LLC Building Industry Association of SD County Building Owners & Management Assn. (BOMA) California Apartment Association, SD Chapter California Restaurant Association Chula Vista Chamber of Commerce Coalition for a Prosperous America Commercial Real Estate Alliance of San Diego CommNexus CONNECT Creative Electron, Inc. Downtown San Diego Partnership East County Economic Development Council Filipino American Chamber of Commerce Greater San Diego Association of REALTORS HumanCentric Performance, Inc. Industrial Environmental Association Institute of Real Estate Management, San Diego Chapter Kevane Company Inc. McKinney Advisory Group NAIOP, San Diego National Black Contractors Association National City Chamber of Commerce Next Gen One Stop Systems, Inc. Pfizer Qualcomm San Diego Business Leadership Alliance San Diego County Apartment Association San Diego County Taxpayers Association San Diego East County Chamber of Commerce San Diego Port Tenants Association SD Regional Economic Development Corporation San Diego Sports Innovators (SDSI) San Diego North Chamber of Commerce San Diego Regional Chamber of Commerce San Diego Venture Group San Ysidro Chamber of Commerce Strategic Roundtable Targeson Torrey Pines Investment Tijuana Economic Development Corporation Vektrex Vertex Pharmaceuticals Vista Chamber of Commerce World Trade Center San Diego Z 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

Cumulative Impact of this fee and others impacting Small, Medium, and Large Businesses, why an immediate 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

Legal Analysis

Stating the Business Case

Conclusion