S.D. and State Need to Formulate Industrial Policies, Grissom Says

Outgoing Greater San Diego Chamber of Commerce President Lee Grissom Thursday urged San Diego to take tough steps to revive an economy that has been buffeted by recession, defense-spending cuts, a slowdown in new construction and increased political bickering.

Grissom, 49, the chamber’s president for the past 17 years, leaves San Diego Saturday for Sacramento, where he will serve as deputy chief of staff for economic development for Gov. Pete Wilson, his longtime friend and mentor. Grissom is charged with finding ways to jump start the state’s ailing economy.

During a farewell speech to chamber associates Thursday morning and in a subsequent interview, Grissom said that San Diego and the state face continued economic suffering unless coherent industrial policies are developed. Grissom pressed the city to act quickly on dozens of recommendations that a city-appointed task force prepared early this year.

Similarly, he suggested that the state, which has never had an industrial policy, might need to craft one. “We need to know where the California economy is going,” Grissom said. “We’re now part of a global economy so (California) has to start thinking globally.”

The past year has been particularly traumatic for San Diego, with unemployment rising to an eight-year high of 7.1% in May. Meanwhile, total manufacturing jobs in the economy fell by 5% to 128,800.

Civic leaders expect to lose thousands of additional manufacturing jobs as General Dynamics sells most of its locally based businesses.

Chamber Chairman Mel Katz said that the city could face continued tough economic times even after a national recovery occurs--unless city government speeds the business permitting process.

“We need to have San Diego known as a place where you can get quick answers (from regulators),” Katz said.

But Grissom cautioned that the chamber, with its strong pro-business stance, is on a collision course with mayoral candidate Peter Navarro, a managed-growth proponent.

And, he warned the chamber audience not to ignore Navarro, who finished first in all but one of the city’s eight districts. “A lot of people out there across the city . . . are hearing something that’s important to them,” Grissom said.

Grissom urged chamber members to build bridges to the city’s increasingly diverse political community. He said that the days are gone when a small group of politically conservative, rich, white businessmen could direct San Diego’s civic course by “checkbook leadership.”

“There are coalitions and groups that need to be recognized,” Grissom said. “Listen to them, hear them . . . make them part of the leadership.”

During a wide-ranging speech, Grissom listed the chamber’s high points during his tenure: leading a successful referendum that cleared the way for construction of the San Diego Convention Center, uncovering the 1984 Telink fraud case that prompted broad changes in county government and successfully opposing San Diego Gas & Electric’s ill-fated merger with Southern California Edison.

The low point of his administration was the 1978 mid-air collision between Pacific Southwest Airlines Flight 182 and a small private plane that killed 144 people and forced San Diegans to seriously consider the need for a new airport.

Under Grissom’s leadership, the chamber often surprised observers with its stances. The organization opposed state Proposition 13, which limited the amount of taxes that local governments can impose upon citizens. And it occasionally sued its own members when their actions ran up against chamber policies.

Yet, in recent years, Grissom’s leadership has come under attack from some business sectors. Real estate executive Robert Lichter recently formed a business group that seems to be intent upon challenging the chamber as San Diego’s main business voice.

In a related development on Thursday, the eight-member task force that will name Grissom’s replacement has expanded its search to include out-of-town candidates.