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San Diego wants hotels and restaurants to pay more for valet stands and on-street dining. It’s not going over well.

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San Diego wants hotels and restaurants to pay more for valet stands and on-street dining. It’s not going over well.


San Diego hotel and restaurant owners are balking at a city proposal to charge them steeply higher fees for their valet parking spaces and on-street outdoor dining areas.

City officials say the hikes are justified, because San Diego loses revenue when parking spots that could otherwise have meters are devoted to other uses like dining or valet parking drop-off and pickup.

But critics, including the county lodging association and merchant groups, say the hikes could prompt some restaurants to eliminate on-street dining altogether and force hotel guests to clog streets by double parking.

One Mission Beach restaurant owner said Tuesday the city can’t keep raising fees and costs on a struggling industry and not expect a rash of closures. “We are teetering,” said Eric Christiansen, the owner of Guava Beach Bar & Grill.

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The proposal, which the City Council is scheduled to consider early next month, is part of a wider city campaign to cope with expected budget deficits by raising parking rates and beginning to charge in new places like Balboa Park.

City officials say it’s costing taxpayers many thousands of dollars per year in potential parking meter revenue — revenue that could fund city services — by allowing on-street dining and valet spots, especially popular downtown because hotels there lack space for self-parking by their guests.

And the amount of potential revenue the city is missing out on rose sharply this year, after hourly meter rates were doubled from $1.25 to $2.50, daily meter operations were extended by two hours and a special event zone with higher rates was created near Petco Park.

In an effort to recover a greater share of that lost revenue, city officials are proposing to raise the fees for street-dining space by more than 30% and to hike valet parking fees even more dramatically. Currently, those fees are nearly $38 per square foot in most areas; they would rise to $50.

Fees for outdoor dining would rise by nearly 32% in most neighborhoods and even more in the special-event zone. Also, a fee exemption would be eliminated for seating that is open to the public, instead of reserved only for restaurant customers.

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A parking attendant stands near Filippi’s Pizza Grotto in Little Italy on Oct. 14, 2025. (Ariana Drehsler / For The San Diego Union-Tribune)

For valet spaces, hotels would pay $5,600 per year for the standard allotment of two valet street spots of 22 feet each, up from the current $600 per year. City officials say the $600 is an application fee, and the $5,000 is a new fee that aims to recover part of the city’s costs.

The hotel industry has mostly accepted that change, but it’s objecting to proposed fees for hotels that want more than two valet spots. Each additional valet spot beyond two would cost a hotel $10,000 in areas that have parking meters and $15,000 in the special-event zone.

“That is just too high for guests, as well as the operators, to be able to absorb,” said Fred Tayco, executive director of the San Diego County Lodging Association.

Tayco said some hotels could end up paying close to $100,000 per year if they need several additional valet spots, predicting that scaling back valet spots would lead to dangerous double parking and unloading of luggage.

“While valet parking may appear like a luxury, for downtown it’s a necessity,” said Tayco, noting that 63% of tourists who visited San Diego last year came by car.

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Michael Trimble, executive director of the Gaslamp Quarter Association, questioned how the city arrived at the new proposed fee amounts.

“We can’t support arbitrary, unpublished surcharges that punish businesses,” Trimble said.

City officials say the proposed fees were carefully calculated based on the typical revenue a parking meter generates in a year.

Ahmad Erikat, a program manager in the city’s Transportation Department, said a typical meter downtown generates $25 per day, which may rise to $30 per day now that operating hours have been extended by two hours.

Erikat said the city multiplied that rate times the 350 days per year that meters operate — there are 15 holidays per year when they don’t — to get a total expected revenue per downtown meter of $10,500. So the city decided to charge $10,000 for additional valet spots.

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“The objective is to be as close as possible to cost recovery,” he said.

In the special-event zone, a similar calculation led the city to propose $15,000 per valet spot, Erikat said.

For restaurants or hotels willing to operate valet spots only from 5 p.m. to midnight, the fee would be $2,500, which is based on how much meter revenue could otherwise be generated during those hours, Erikat said.

He stressed that the first two valet spots would still be heavily subsidized by the city. Instead of charging the $20,000 that cost recovery would dictate — $30,000 in the special-event zone — the city would charge $5,600 for those two spots.

Full cost recovery would kick in only when additional spots beyond the standard two are required by a business.

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The proposal was approved 4-0 by the City Council’s Active Transportation and Infrastructure Committee last month. It is scheduled for a vote by the full council on either Nov. 2 or Nov. 3, according to a spokesperson for Mayor Todd Gloria.

Outdoor dining in Little Italy on Oct. 14, 2025. (Ariana Drehsler / For The San Diego Union-Tribune)
Outdoor dining in Little Italy on Oct. 14, 2025. (Ariana Drehsler / For The San Diego Union-Tribune)

Councilmember Stephen Whitburn, who chairs the committee and represents downtown, said he sympathizes with businesses facing higher fees.

But he suggested keeping those fees down is less important than making sure hotels have the ability to claim additional valet spots if they need them.

“The policy enables valet services to remain possible while enabling the city to recover the true cost of lost parking revenue,” Whitburn said.

He said the hotels make enough money to cover the higher costs. “The collection of valet parking revenue results in some pretty significant revenue,” he added.

Christiansen, the Mission Beach restaurant owner, considers the fee hike for street dining a huge mistake.

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“It’s a ridiculous increase by a tone-deaf city,” said Christiansen, who has operated Guava Beach Bar & Grill for 23 years.

With the city’s minimum wage still rising incrementally and costs for food and energy going up, he said the city shouldn’t charge more for street dining spots when restaurants are barely surviving.

“We can’t absorb anymore costs — we are teetering,” he added. “It’s going to be a rude awakening for the city when restaurants start to close. Boarded-up buildings are a bad look for tourists.”

The Little Italy Association, whose businesses would be some of those most affected, declined requests for an interview.

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San Diego, CA

Coastal Commission ruling opens door to development of National City waterfront

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Coastal Commission ruling opens door to development of National City waterfront


National City’s Pepper Park can soon expand in size by nearly 50%, thanks to a ruling this week by the California Coastal Commission to approve the National City Balanced Plan.

The approval of the plan at the CCC’s Wednesday meeting, developed by the Port of San Diego, means that not only will the popular park have the ability to increase in size, big changes are coming for commercial, recreation and maritime uses on the National City bayfront.

“We are grateful to the California Coastal Commission for its support of the National City Balanced Plan,” said Danielle Moore, chair of the Board of Port Commissioners. “The progress we have made has been anchored in tireless collaboration with the community, business leaders and, of course, the city of National City. It’s about bringing more recreational opportunities to the bayfront while also streamlining and strengthening maritime operations, and we are eager to bring these projects to life.”

Other components of the balanced plan include:

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  • Realigning Marina Way to serve as the buffer area between commercial recreation and maritime uses
  • The closure of Tidelands Avenue between Bay Marina Drive and West 32nd Street, and West 28th Street between Tidelands Avenue and Quay Avenue, around six acres, to increase terminal efficiency by eliminating redundancies
  • The development of a recreational vehicle park, tent sites, cabins and the “ultimate development of up to two hotels with up to 365 rooms, as well as dry boat storage,” a port statement read
  • A connector rail project to connect the existing rail and loop track located on the National City Marine Terminal to additional rail car storage spots at the existing Burlington Northern Santa Fe National City Yard east of the National Distribution Center

The Board of Port Commissioners must accept the CCC’s certification, then the port and city can begin the process of completing the above projects.

“I am proud of the work we have done to help create a lasting legacy for National City, the Port of San Diego, and the entire region,” said Port Commissioner GilAnthony Ungab. “Nearly a decade in the making, this plan balances the interests of the community and many other stakeholders, addresses public access, maritime, and recreation uses, and expands waterfront access in my community.”

The National City Bayfront is 273 acres of waterfront land and 167 acres of water, and includes the National City Marine Terminal, Pepper Park, Pier 32 Marina, the Aquatic Center and pieces of public art.



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Gloria announces effort to add more townhomes, cottages to San Diego neighborhoods

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Gloria announces effort to add more townhomes, cottages to San Diego neighborhoods


Mayor Todd Gloria announced an initiative Wednesday intended to expand housing options in neighborhoods by integrating small-scale residences such as townhomes, rowhomes and cottages into an area’s existing character.

The Neighborhood Homes for All of Us initiative is also intended to support community land trusts — nonprofit organizations that acquire land to create permanent affordable housing.

“Since Day 1 of my administration, I have been focused on building more homes that San Diegans can actually afford — and getting them built faster,” Gloria said at a news conference Wednesday. “‘Neighborhood Homes for All of Us’ is the latest piece of that puzzle. This innovative program will break down the barriers that have gotten in the way of building the type of housing that I believe is ideal for young families and first-time homebuyers for whom the dream of homeownership has long felt out of reach.”

Around 80% of land zoned for housing in the city is restricted to single-family homes, which continue to increase in price, Gloria said. And a significant portion of new housing being built consists of apartment buildings with primarily studio and one-bedroom units, leaving working-class families fewer and fewer options for homes.

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Neighborhood Homes for All of Us is intended to increase the housing supply and allow community land trusts to keep housing affordable in disadvantaged communities for low- to middle-income families.

“San Diego is an incredible place to raise a family, and more families need the opportunity to do that in San Diego’s existing, highly desirable single-family neighborhoods where their kids can learn and play in a great community,” City Planning Director Heidi Vonblum said. “But today, that comes at a price that is out of reach for too many. Integrating more options for families requires careful and thoughtful planning, with input from existing and future community members across the city, to ensure these new home opportunities for San Diego’s families are built in ways that best enhance and benefit San Diego’s amazing neighborhoods.”

The initiative will roll out in two phases. In the first phase, beginning this week and continuing through next summer, San Diegans can help determine what the neighborhoods can look like. The public will be able to see renderings showing small-scale neighborhood homes within San Diego’s existing communities, along with new regulations that “provide a clear pathway for building these homes,” according to a statement from Gloria’s office.

Phase 1 will also include an open house and ways for the community to provide feedback and concerns.

Phase 2, scheduled for the second half of 2026, will be for city staff to develop regulations allowing for the building of more neighborhood homes in a way informed by the public feedback.

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The initiative is partly funded through a Regional Early Action Planning grant from the San Diego Association of Governments.



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San Diego, CA

Affordable housing project for San Diego Unified teachers moves forward

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Affordable housing project for San Diego Unified teachers moves forward


The first of five affordable housing projects for San Diego Unified School District teachers was approved on Wednesday night.

The school board voted unanimously in favor of working with the developer who bid on the project at the Instructional Media Center on Cardinal Lane. The Affordable Workhouse Housing project promises 100% affordability, with 108 one-, two- and three-bedroom units, and some surface lot parking.

“It’s a practical solution to a very real problem, and it sends a message that we are committed to stability, not just for employees but for the students,” one speaker said.

Board members say the project will be fully funded by the developer, DECRO Corporation based in Culver City, and that the estimated annual rent revenue is $125,000 dollars. It is expected to increase 2.5% each year.

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Some in the neighborhood are concerned.

“We are one way in and one way out. We are built in a canyon,” neighbor Callie Grear said.

“Parking here is horrible,” neighbor Paul Grear said. “Everybody is parking in front of our street. I can’t even park in front of my house.”

“The safety of our neighborhood is in jeopardy with this plan,” neighbor Patricia Torres said. “We are already overcrowded. We are asking this board to reconsider building on this site.”

Despite the pushback, board members unanimously voted in favor of moving forward with the developer on this project. Unless exempt, it will first undergo city scrutiny. There are still four other locations still on which SDUSD wants to build.

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A vote for housing on those other four properties has been postponed until January so that the school board can hold a workshop and appropriately question the developers that are bidding on those projects.

In all five projects, San Diego Unified hopes to build 555 units in the next 10 years.



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