Under pressure to fix its budget deficit, San Diego’s southeastern redevelopment agency laid off 40 percent of its staff last month.
The move reduces the staff of city-run nonprofit Southeastern Economic Development Corp. from 16 to 10. The agency also laid off one part-time employee.
“We lost people in every department,” said agency interim head Brian Trotier. “Executive level, project management and accounting.”
The layoffs address budget concerns raised most publicly by Council President Ben Hueso and Councilman Tony Young, both of whom represent neighborhoods within SEDC’s boundaries. Hueso had wanted to study folding the agency into the city’s larger Redevelopment Agency, which already handles redevelopment activities in neighborhoods such as City Heights and North Park.
In January, the agency revealed it was running a $3 million deficit, almost 20 percent of its annual budget.
Trotier said the layoffs and other cost cutting measures will allow the agency to avoid drawing down previous redevelopment dollars or bond proceeds to pay for staffing or other overhead.
The agency also plans to move to a building less than half its current size in part to save money, Trotier said.
The city’s other nonprofit redevelopment agency, the Centre City Development Corp., also laid off four people in February.
— LIAM DILLON