SAN DIEGO—The potential for San Diego and Tijuana to work together to provide workforce housing and close the housing-affordability gap by building in Tijuana is exponential, said panelists at a recent lunch event hosted by the Urban Land Institute San Diego-Tijuana District Council. The group assembled a panel of experts to discuss the transformation of Downtown Tijuana, as well as the opportunities and challenges that go with conducting business in the city.

The Cali-Baja mega-region boasts a $230 billion shared economy, a shared workforce and strong binational collaboration. Nowhere else in the world is there a border crossing with two major cities on both sides. The San Ysidro port of entry is the busiest border crossing in the world; more than 60,000 people cross the border from Mexico to the US every day for work.

San Diego and Tijuana are uniquely positioned to help fill the gaps in each other's economic and social fabric, the panelists said. They agreed that the potential for San Diego and Tijuana to work together to provide workforce housing and close the housing affordability gap by building in Tijuana is exponential.

Moderated by Maricarmen Castellanos De Gonzalez, CEO of Probien Bienes Exclusivos, the event's panelists included Sergio Gonzalez, project director at Probien Biens Exclusivos; Richard Hamar, attorney at Hamar & Hamar; Flavio Olivieri, executive director of Cali Baja Binational Mega Region Inc.; and David Rosas, project director at Cumbres Sky View.

“We need more $150,000 price-point homes,” said Sergio Gonzalez. “There is a huge housing crisis in San Diego. Blue-collar workers can't afford homes. We are catering to those people.”

In response to Castellanos De Gonzalez's question about how to reduce border wait times in order to attract more San Diego buyers and businesses, Olivieri pointed out, “We need pedestrian-friendly strategies on both sides of the border. This solution involves both San Diego and Tijuana. Also, public transit needs to be improved.”

Sergio Gonzalez said the rise in Tijuana construction, partly in response to housing demand, has resulted in a lot of new mixed-use projects. “They are working because they are small units with great retail.” Particularly popular, he said, are projects with small housing units, small office units and co-working spaces. He also cited three family-oriented resort projects underway and a smattering of boutique breweries and wineries. Financing for these projects has come primarily from groups in Mexico, said Rosas.

With a long history of cross-border activity, Tijuana's industrial sector is also thriving. With development funding coming primarily from the United States and Australia, development to support manufacturing and other industrial uses is strong, said Olivieri. He identified the software-development and medical sectors as primary drivers of industrial growth in Tijuana.

While changes to the North American Free Trade Agreement may cause some concern, Hamar believes immigration reform might be the greater obstacle for Tijuana's growth and cross-border relationship. “My concern might be Attorney General Jeff Sessions having a hard line on immigration with more vetting,” he said. “There could be much longer lines coming from south to north.” He characterized the potential challenge as “uncomfortable rather than drastic.”

Several panelists cited collaboration between Tijuana and ULI, SANDAG or Caltrans as welcome catalysts for increased development in Tijuana and cross-border economic growth. “We need to ask for results,” said Gonzalez. “Working with ULI has helped us a lot. ULI very much influences the decisions that the TJ government makes. We are pushing to make things work, especially the walkability at the border.”

Rosas says the local government in Tijuana is open to change in order to improve circulation, infrastructure and development. In order to ease prospective US residents' concerns about purchasing a home at his firm's project, Cumbres Sky View, “We're really pushing century passes,” he said, alluding to the Secure Electronic Network for Travelers' Rapid Inspection (SENTRI) US Customs and Border Protection (CBP) program that allows expedited clearance for pre-approved, low-risk travelers upon arrival in the United States.

“We need more $150,000 price-point homes,” said Sergio Gonzalez. “There is a huge housing crisis in San Diego. Blue-collar workers can't afford homes. We are catering to those people.”

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