Investing for Continued Prosperity: Infrastructure 2010 Proposal
Report to the Board of Directors February 11, 2009
Background
n Consensus among 300 business leaders in the Partnership for the Global Economy:
q Three paths to prosperity:
n n n Workforce development Infrastructure investment Industry convergence
q Critical need for civic entrepreneurship – the business community leading community development and investment
Background
n Infrastructure Committee has been working since spring 2008 to develop infrastructure roadmaps
q Perry Dealy, Chair - 30 committee members q Work plans developed in six areas
n n n n n n Transportation Housing Energy Water Economic Drivers Environmental Stewardship
Four Policy Foundations
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First, housing supply anchors quality of life – and is central to attracting and retaining knowledge workers Second, market-priced housing construction must be the backbone solution
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Reaching national homeownership rates would require sale of over 100,000 units in the San Diego region – subsidies MUCH larger than we can afford 2008 proves that “creative home mortgages” are not the solution
Four Policy Foundations
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Third, future growth in San Diego will be different from the past – requiring important changes:
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“Greenfield” development lands are nearly exhausted – requiring updated land use intensities, redevelopment strategies and more appropriate permitting processes Transportation systems must support greater mobility with radically fewer new road construction opportunities Economics, sustainability and state law require “re-visioning” how we live and work Infrastructure finance policies based on “master planned” communities no longer serve the region well and must be replaced
Four Policy Foundations
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Fourth, a sustained initiative is required – and the business community can best lead that initiative
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Expertise and capacity to convene Long range interests Credibility with elected officials Capacity to inform voters
Defining EDC’s Role
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Champion: EDC will convene interested parties and lead implementation of a specific policy plan Catalyze: EDC will convene interested parties and support more aptly equipped partner organizations in implementation Support: EDC will support partner organizations who are working toward shared goals Evaluate: EDC will analyze issues for purposes of determining whether to adopt a policy goal at some level described above
Work Plan #1 - Housing
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Assessment:
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We are NOT building enough new homes Higher-intensity land use and redevelopment is needed to achieve housing affordability
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Diminishing “greenfields” requires redevelopment Land values require greater land use intensity
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Existing land use plans and infrastructure finance strategies fail to support adequate density
Housing
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Champion regional housing goal
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Establish partnerships (e.g., BIA/Chamber), specific housing construction goals, and a measurement strategy (2009) Determine necessary land-use and permitting reforms (2009-2010)
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Housing lands inventory (2009) Under-utilized Assets Study (2009) Permitting “audit” (2009)
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Infrastructure needs assessment and financing strategy (2009-2010) Infrastructure and community funding proposal (2010-2012)
Work Plan # 2 – Transportation
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Five components:
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Highway Transit Airport Goods Movement Finance
Transportation: Highways
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Assessment:
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TransNet established priorities for 30 years Major project planning areas:
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Interstate 5 corridor
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Next Step:
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Evaluate and engage in Interstate 5 corridor vision
Transportation: Transit
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Assessment:
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RTP proposes region-wide, freeway-based rubber-tire system – but it lacks consensus
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Inefficient footprint, not targeted as a true transit system Operational questions
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Next Steps:
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Champion transit strategy review for 2010 Regional Transportation Plan update Evaluate UTC light-rail decision (2009) Catalyze public right-of-way economic model
Transportation: Airport
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Assessment:
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Consensus on need for maximum Lindbergh expansion by 2015 Consensus on long-term need for second runway capacity Support Lindbergh Master Plan Evaluate Bi-National Terminal Military asset reassignment following Defense Quadrennial Review Non-military solutions
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Next Steps:
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Continue to monitor long-term options
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Transportation: Goods Movement
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Assessment:
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Priorities: Border, port, highway, railroad connections Business community engagement required Potentially significant future needs NOT in RTP Catalyze goods movement strategy review with SANDAG and business organizations for 2010 Regional Transportation Plan update
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Next Steps:
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Transportation: Finance
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Assessment:
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Regional Transportation Plan (RTP) proposes $57.7 billion in projects for next 30 years – and identifies approximately $40 billion in likely revenues, leaving a $17 billion funding gap
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Next Steps:
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2009:
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Catalyze funding options assessment with SANDAG Confirm transit consensus Catalyze state and regional development of public-private partnerships
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2010: First election cycle for possible voter initiative
Work Plan # 3 - Energy
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Assessment:
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Regional demand through 2020 requires four projects:
1. 2. 3.
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Otay Mesa Construction (562MW) by 2009 Sunrise Powerlink (500kV) construction by 2011 Peaker plant construction: § Pala 96-megawatt § Miramar II Carlsbad replacement facility (TBD)
Work Plan # 3 - Energy
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Next Steps:
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Support required for local projects
1. 2. 3. 4.
Otay Mesa Construction (562MW) by 2009 Sunrise Powerlink (500kV) construction by 2011 South Bay Power Plant dismantling Peaker plants (Pala, Miramar II)
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Evaluate Carlsbad power plant replacement: Winter/Spring 2009 Evaluate and identify Distributed Energy issues
Work Plan # 4 - Water
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Assessment:
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San Diego water supply requires:
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Delta health Completion of IID water purchases Evaluation of new technologies and sources
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Next Steps:
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Catalyze San Diego 2009 business community/CWA partnership (TransNet model) for State water bond campaign Evaluate local water bond option Evaluate and leverage recycled water pilot project results to inform public opinion between now and 2013 regarding reservoir augmentation
Work Plan # 5 – Economic Drivers
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Assessment:
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Colleges and Universities: Expanded capacity required Port of San Diego: Master plan review advised Under-utilized assets: Inventory and recommendations suggested Football stadium pending Convention Center Expansion: Plan adopted
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Next Steps:
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Champion under-utilized assets study: assembled and unassembled land by 2010 Football stadium: Support Chargers dialogue and South Bay Power Plant removal Colleges and Universities: Support capital facilities funding Port of San Diego: Support Port Master Plan dialogue
Work Plan # 6 – Environmental Stewardship
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Assessment: Three main issues
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AB 32: Reducing Green House Gas Emission:
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Impacted Industry Sectors: Energy … Transportation … Commercial & Residential … Agriculture … Recycling and Waste Early action measures enforced: January 1, 2010 AB 32 regulations take effect : January 1, 2012 Permit includes three new specific requirements for local agencies to adopt: 1. Hydromodification Management Plans: (Development impacts on water flow) 2. Regional Urban Runoff Management Plans: integrates regional, watershed,
and jurisdictional activities)
3.
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San Diego Municipal Storm Water Permit Renewal (2007):
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Program Effectiveness Assessments:(Review/modify activities based on water
quality)
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MSCP: SANDAG Quality-of-Life Initiative
Environmental Stewardship
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Next Steps:
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AB 32: Green House Gas Emissions:
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Evaluate economic impacts within specific industry sectors Organize business coalition that will develop regulatory framework (e.g. EDC/Chamber/others - 2009) Engage in SANDAG Quality-of-Life Initiative (2009) Evaluate and monitor potential business regulations resulting from 2007 Municipal Storm Water Permit. Evaluate and engage in Quality-of-Life Initiative
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Stormwater:
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MSCP:
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2009 ACTION ITEMS
1. Housing
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Establish housing supply target Begin translating targets into land use and “smart growth” infrastructure plans Begin permit/fee restructuring proposal
2.
Transportation
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Support transit and goods movement policy review Support SANDAG on Federal Stimulus and Transportation Reauthorization Legislation Champion State and Federal public-private partnership legislation Support Lindbergh Master Plan Support long-term airport plan; monitor QDR
2009 ACTION ITEMS
3. Water
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Champion regional participation in state water bond and/or evaluation local water bond Evaluate Carlsbad Energy Center Project (CECP) decision Evaluate Distributed energy policy decisions Chargers Stadium: Support removal of South Bay Power Plant Universities: Support capital projects Champion under-utilized assets study
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Energy
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Economic Drivers
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2009 ACTION ITEMS
6. Environmental Stewardship
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Catalyze and adopt Greenhouse Gas Policy framework at EDC Board Stormwater/MSCP:
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Evaluate and engage with SANDAG on the Quality-of-Life initiative Evaluate 2007 Municipal Storm Water Permit regulations
2010 ACTION ITEMS
Election Cycle – 2010
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Water bond Quality-of-Life Initiative: SANDAG or alternative Regional proposals for candidates for Governor
Proposed Motion
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Adopt the 2010 Infrastructure Report