Government Affairs and Economic Vitality Highlights for 2023
Your Chamber continued to serve as an essential resource by informing you about the latest public policy issues affecting businesses and non-profit organizations in our region. Members became familiar with issues from the business perspective through the "Prosperity Update" and the "Business Roundtable" recap in the Chamber Connection weekly electronic bulletins. The Chamber's robust Government Affairs Committee met monthly to analyze issues and take positions. The Economic Vitality Committee also met monthly to learn about the latest plans of local businesses and discuss strategies for a thriving business environment.
At the Chamber's annual Leadership Luncheon, Chamber members were able to hear from 14 public officials about their priorities and perspectives. The annual survey of members confirmed the views of the Chamber that housing supply and water supply continue to be the two top concerns and interests of Chamber members, with transportation systems also recognized as an important issue.
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Notable Issues and Achievements for 2023
Housing Elements. Monterey Peninsula cities (and the County of Monterey) are at various stages of developing housing plans for the next several years, but special credit can be given to the City of Monterey for submitting a housing plan to the State of California that includes credible strategies to build additional housing over the next several years. Obviously these strategies will initially be hindered by lack of adequate water supply and community opposition to new housing, but your Chamber is optimistic about long-term changes that may allow more people who work on the Monterey Peninsula to also live here.
City of Monterey Imposes Rental Registry on Landlords. Despite the principled objections of the Chamber, the Monterey City Council voted to require property owners to submit information to the government about their rental arrangements. This is an initial step toward rent control ("rent stabilization"), in which the city will regulate prices and price increases for rental units.
Ban on Cruise Ship Passengers Disembarking in City of Monterey. Despite the principled objections of the Chamber, the Monterey City Council voted effectively to end cruise ship visits in Monterey.
Government Takeover of Privately-Owned Regional Water System. Despite the Chamber's defense of capitalism and the concept of profit, the Monterey Peninsula Water Management District board voted unanimously to use the courts to wrest control of the water system from private ownership to public ownership. Monterey Peninsula ratepayers were offered a promise of lower water rates and voted in 2018 for government control of the water system if a takeover was feasible.
Advancement of the SURF! Bus Rapid Transit Project. The Monterey-Salinas Transit District was able to shake off multiple lawsuits intended to stop a planned dedicated public transit commuter lane adjacent to Highway 1 between Marina and Seaside. Your Chamber supports this project to relieve traffic congestion for commuters who work on the Monterey Peninsula.
Inching Forward on Regional Transportation Projects. The Transportation Agency for Monterey County (TAMC) has dealt with relentless obstacles for advancing its projects, but progress continues toward actual construction of several projects. These projects include Highway 68 improvements, the new Highway 156/Castroville Interchange, major Imjin Road improvements in Marina, the Fort Ord Regional Trail & Greenway (FORTAG), the commuter rail between Monterey County and the San Francisco Bay Area, and improvements to Highway 101 south of Salinas. Your Chamber supported Measure X in 2016 and continues to support highway and road improvements.
Change in Sewer Billing. Much of the public and political focus on the Monterey One Water (M1W) sanitation and recycling agency in 2023 revolved around the agency's proposed change in billing practices so that property owners pay sewer fees through their property tax bills. It was somewhat of a distraction from the more fundamental concern of the Chamber about the capability of M1W to supply a sufficient amount of recycled water to meet future regional water demand.
Workforce Housing. One proposed way to ease housing burdens on the Monterey Peninsula is to provide funding and other incentives for public and private employers to oversee housing for their employees. Your Chamber tracked an ongoing proposal of the Monterey Peninsula Unified School District to obtain housing for teachers and classified support staff.
Joby Aviation Is Staying in Monterey County. Monterey County was able to collaborate with Joby Aviation and other entities to obtain economic incentives for Joby Aviation to maintain its research and development and manufacturing facilities at the Marina Airport. Your Chamber supports this kind of economic development, which can increase the presence of middle class families through high-paying jobs and encourage ambitious young adults who grew up in Monterey County to remain here rather than seeking better prospects elsewhere.
Moss Landing Remains the World Capital of Battery Storage. Vistra continues to add new battery storage at the site of the Moss Landing Power Plant and plans even more for 2024. (Tesla/PG&E also has a large battery storage facility at that location.) Meanwhile, the old oil-fueled Units 6 and 7 at the site, which began operations in 1967, are being carefully demolished.
Major Mental Health Facility for Children Opens. Montage Health opened its Ohana campus, a 55,600-square-foot residential and outpatient facility designed to provide mental health care and treatment for youth and their families.
Improvements Completed for Laguna Seca Racetrack. Despite delays caused by a very wet rainy season, construction of the Start-Finish Bridge and the Racetrack Resurfacing Project at WeatherTech® Raceway at Laguna Seca was completed in time for race season.
Civil Order. Your Chamber recognized that some businesses experienced problems with graffiti and other anti-social behavior apparently instigated by a small number of homeless people in our region. We are tracking various state and local policies, programs, and practices that try to address these problems while protecting civil liberties.
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The Challenge Facing Chamber Members in 2024
Monterey Peninsula public policy can seem nowadays to be an endless cycle of government-generated limits and controls on commerce, generated largely by the concern of some residents that business growth, job creation, and increased housing will compromise community character and quality of life.
The Chamber recognizes that these resident concerns have some validity. Benefits of commerce for individuals and communities also come with costs. These costs need to be addressed or mitigated.
But when the public's preferred solution is stopping growth and resisting change, life can become difficult and costly for ordinary people.
Meanwhile, local government officials try to ease these costly difficulties for ordinary people by…imposing yet more limits and controls on businesses. Here's an example: if rent control is imposed in 2024 while no new housing is built, the local economy will have another market distortion to add to already inadequate water supply and outdated transportation systems. Some people will obviously appreciate how their rents no longer reflect market reality, but this comes at the cost of many other people.
There is a bigger picture to consider. For example, your Chamber is always vigilant about the possibility that the U.S. Department of Defense will decide that Monterey County's remaining local military bases would better serve national security interests with a location in Arizona instead.
Some residents would love to see our local military bases close: less traffic, less people, less noise, etc. From the local business perspective, it would be a disaster.
In 2024, your Monterey Peninsula Chamber of Commerce will continue to serve as a leading business voice on public policy and advocate on behalf of our members to ensure the business perspective is heard. If you have comments or questions, please contact President & CEO Monica Lal at (831) 277-2279 or at Monica@montereychamber.com.
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