City Council - 2026-03-09 - Monday Agenda Revised Added S400-S401
Meeting Intelligence Preview
Meeting Summary
The San Diego City Council approved a 52-year lease extension with the San Diego Zoo through 2078, securing $3 million annually (with 3% escalator starting 2030) plus 50/50 parking revenue split. Council also approved a $6.65 million CDBG loan for the Promenade Apartments, a 94-unit affordable housing project at 3972-86 Cleveland Avenue in Uptown. The Climate Action Implementation Plan status update showed emissions down 19% from 2019 but 3.5% above the linear path to 2030 goals.
Key Decisions (3)
San Diego Zoo Lease Extension to 2078
Second amendment extending the Zoological Society of San Diego lease by 52 years from current date to July 23, 2078 (44 years beyond current 2034 expiration). Terms include $3 million annual payment with 3% escalator starting 2030, 50/50 parking revenue split capped at $700,000 expenses, prevailing wage requirements, ZEMBOP compliance, and minimum $250,000 in complimentary admission tickets annually for nonprofits and schools. Zoo generates $2.1 billion economic impact and 3.9 million annual visitors.
Promenade Apartments CDBG Loan - 3972-86 Cleveland Avenue
Approved $6,650,000 CDBG loan to Community Revitalization Development Corporation for 94 affordable apartments (plus 1 manager unit) at 3972-86 and 3990 Cleveland Avenue in Uptown/District 3. Units for families at 30-70% AMI with 55-year affordability covenants. Mix includes 33 one-bedroom, 33 two-bedroom, and 28 three-bedroom units. Total project cost approximately $60.3 million. Subsidy approximately $70,745 per unit.
Climate Action Implementation Plan 2025 Status Update
Informational presentation showing city emissions down 19% from 2019 baseline but 3.5% above linear path to 2030 goal. 75% of 190 climate actions either underway or complete. Main emission sources: transportation (over 50%), natural gas in buildings, and electricity. 2023 showed slight uptick in emissions from 2022 due to more driving, less renewable electricity, and increased gas use.
Development Activity (2)
Promenade Apartments
94 affordable apartments plus 1 manager unit; 33 one-bedroom, 33 two-bedroom, 28 three-bedroom units; 30-70% AMI; 22 parking spaces; rooftop solar, energy efficient lighting, all-electric appliances; community space, kitchen, laundry, bike parking, tot lot; total cost $60.3 million; 26-month construction period
Skyline Affordable Housing - Rancho Bernardo Transit Station
99 units of affordable housing for individuals and families earning 30-50% AMI; supported by $5 million Bridge to Home loan and tax-exempt bond revenue
Market Signals (4)
Housing Demand
Bridge to Home program rounds 1-5 have resulted in 22 approved loan agreements creating 2,528 total apartments including 2,499 affordable units, demonstrating strong pipeline of affordable housing development.
Commercial Demand
San Diego Zoo generated $2.1 billion in economic activity, 3.9 million visitors in 2024, and supports 6,500 jobs, indicating robust tourism sector despite broader economic concerns.
Infrastructure
City faces $12.8 billion CIP funding gap for infrastructure needs including storm water, streets, and bike facilities, creating potential opportunities for infrastructure-related investments.
Sentiment
Federal funding priorities have shifted significantly away from climate action, with rollback of regulatory support and court decisions favoring natural gas over electric buildings, creating uncertainty for green building investments.