Land Use and Housing Committee - 2026-03-05
Meeting Intelligence Preview
Meeting Summary
The Land Use and Housing Committee approved the 2026 Land Development Code update with 135 amendments affecting citywide and downtown regulations, including modifications to microunit DIF waivers requiring 10% three-bedroom units and removal of pool/spa heating requirements (item 109) for further review. The committee also approved a 10-year lease with Harland Brewing Company at Mission Bay Golf Course for $102,000 annual base rent, with direction to explore using golf lease revenue for broader parks and recreation needs.
Key Decisions (3)
2026 Land Development Code Update
Approved 135 amendments to the San Diego Municipal Code, Land Development Code, Plan District Ordinances, and Local Coastal Program. Key changes include allowing for-sale homes in Complete Communities program, prohibiting new moving/storage facilities in certain Mid-City commercial zones, streamlining wireless communication facilities review, and allowing childcare centers in Miramar Airport influence transition zone. Item 76 (affordable housing moderate income) was deleted for further review.
10-Year Lease with Harland Brewing at Mission Bay Golf Course
Authorized lease with Harland Brewing Company LLC for restaurant operations at 2702 North Mission Bay Drive. Starting annual base rent of $102,000 with 3.5% annual escalations and 7% percentage rent over approximately $1.4 million threshold. Tenant responsible for building maintenance and repairs.
Consent Agenda Items 1-3
Approved committee minutes from 01/14/2026, authorized sale of El Capitan Pipeline segment (11,444 linear feet) to Padre Dam Municipal Water District, and declared three city-owned properties as exempt surplus land pursuant to California Government Code.
Zoning Changes (2)
Mid-City commercial zones CU-2-3, CU-2-4, CU-2-5 along transit corridors
City Planning Department
Marine Corps Air Station Miramar Airport Influence Transition Zone
City Planning Department
Development Activity (2)
Mission Bay Golf Course Restaurant
Approximately 2,000 square feet interior restaurant space with operable glass doors for indoor-outdoor dining, part of new clubhouse and pro shop capital improvements project
Downtown Office-to-Residential Conversions (Informational)
Presentation on adaptive reuse practices for converting vacant office buildings to residential. Downtown San Diego has 26% office vacancy rate. Examples shared from Calgary ($75/sq ft incentive, 2,700 units converted), New York City (17,500 units under conversion with 35-year tax abatements), and Baton Rouge (historic tax credits).
Market Signals (5)
Commercial Demand
Downtown San Diego has 26% office vacancy rate, creating opportunities for adaptive reuse conversions to residential.
Housing Demand
Complete Communities Housing Solutions program expanded to allow for-sale homes, providing additional homeownership opportunities across income levels.
Infrastructure
City estimates losing approximately $11 million annually in development impact fee revenue from microunit waivers under Complete Communities program.
Sentiment
Building industry groups including BIA, Chamber of Commerce, and NAIOP expressed general support for 2026 LDC update with minor refinement requests.
Housing Demand
New York City has 17,500 residential units under conversion from office buildings, with tax abatements of 25-35 years driving development activity.