Councilmembers will consider raising the cannabis business tax rate on Monday. The Council will also consider items related to the construction of Serra Mesa Apartments Affordable Housing Project which will provide 59 affordable homes.

From the Office of Council President Joe LaCava 

City Council Meeting – March 10, 2025 – 10 a.m.

Council Meeting Agenda

10 a.m. – Closed Session Public Comment, Closed Session – Agenda

2 p.m. – Discussion Items, Non-agenda Public Comment

Discussion Items

Item 200 - Resolution in Support of California Senate Bill 569 to Address Homelessness on State Property Through Collaboration with Local Governments

California Senate Bill 569 (SB 569), the California Homeless Encampment Collaboration Act, is authored by Senator Catherine Blakespear and co-sponsored by Mayor Todd Gloria and the League of California Cities.

SB 569 emphasizes a coordinated, resource-backed approach to managing homelessness on state transportation property, prioritizing public safety, environmental concerns, and humane solutions.

Item S400 - Increase the Current Tax Rate for Cannabis Businesses in the City of San Diego, Excluding Cannabis Production Facilities, from 8% to 10%

Approval of this item would increase the current tax rate for Cannabis Businesses, excluding Cannabis Production Facilities (CPFs), from 8% to 10%, effective May 1, 2025.

During fiscal year 2024, cannabis retail activities generated approximately $15.87 million in cannabis business taxes. If Council were to adopt the increase in tax rate and gross receipts of Cannabis Businesses remain stable, the tax rate increase could generate approximately $3.97 million in additional annual tax revenue for the City’s General Fund.

Item S401 - Request Approval of Disposition and Development Agreement and Ground Lease between the City of San Diego and Community Housing Works for City-owned property located at 3440 Sandrock Road San Diego

This item requests approval of the Disposition and Development Agreement (DDA) and Ground Lease.

The former Serra Mesa library located at the site closed in 2006 when the new Serra Mesa-Kearny Mesa branch library opened at 9005 Aero Drive.

Community Housing Works is proposing to construct the a project that will consist of the new construction of one 5-story building including 56 one-bedroom and 3 two[1]bedroom units, 1 unrestricted two-bedroom manager unit, and 22 parking spaces.

Item S402 - Affordable Housing Loan Agreement with Community Housing Works, in an amount of $3,500,000 for the Serra Mesa Apartments Affordable Housing Project

This item would approve a proposed Loan Agreement between the City of San Diego and Community HousingWorks, a California nonprofit public benefit corporation, for the Serra Mesa Apartments affordable housing project in an amount of $3,500,000.

Item S403 - Affordable Housing CDBG Loan Agreement with Navajo Road Housing Associates, L.P, for the Navajo Family Apartments Affordable Housing Project

This item would approve a proposed loan agreement between the City San Diego and Navajo Road Housing Associates, L.P. which provides a loan for property acquisition costs for the Navajo Family Apartments affordable housing project in an amount not to exceed $3,100,000.

The Project is located at 7005 Navajo Road in the San Carlos Neighborhood of the Navajo Community Plan Area. The Project will include new construction of 45 residential apartments including 44 one-, two-, and three-bedroom apartments affordable on a long-term basis to households earning 60% Area Median Income (AMI) or less. Eleven of the units will be set aside for persons with special needs with intellectual or developmental disabilities.

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