The recorded history of the San Diego, California, region begins with the first landing by a European in the present state of California and the first European settlement in California, so that San Diego has been described as "the birthplace of California."
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The recorded history of the San Diego, California, region begins with the first landing by a European in the present state of California and the first European settlement in California, so that San Diego has been described as "the birthplace of California."
Native Americans such as the Kumeyaay people had been living in the area for as long as 12,000 years. Explorer Juan Rodriguez Cabrillo discovered San Diego Bay in 1542, but it was 200 years before Europeans settled the area. A fort and mission were established in 1769, which gradually expanded into a settlement under first Spanish and then Mexican rule.
San Diego became part of the U.S. in 1848, and the town was named the county seat of San Diego County when California was granted statehood in 1850. It remained a very small town for several decades, but grew rapidly after 1880 due to development and the establishment of multiple military facilities. Growth was especially rapid during and immediately after World War II. Entrepreneurs and boosters laid the basis for an economy based today on the military, defense industries, tourism, international trade, and manufacturing. San Diego is now the eighth largest city in the country and forms the heart of the larger San Diego metropolitan area.
The area has long been inhabited by the Kumeyaay Native American people. The first European to visit the region was Juan Rodríguez Cabrillo in 1542. His landing is re-enacted every year at the Cabrillo Festival sponsored by Cabrillo National Monument, but it did not lead to settlement.
The bay and the area of present-day San Diego were given their current name sixty years later by Sebastián Vizcaíno when he was mapping the coastline of Alta California for Spain in 1602. Vizcaino was a merchant who hoped to establish prosperous colonies. After holding the first Catholic service conducted on California soil on the feast day of San Diego de Alcala, (also the patron saint of his flagship), he renamed the bay. He left after 10 days and was enthusiastic about its safe harbor, friendly natives, and promising potential as a successful colony. Despite his enthusiasm, the Spanish were unconvinced; it would be another 167 years before colonization began.
In 1769, Gaspar de Portolà and his expedition founded the Presidio of San Diego (military post), and on July 16, Franciscan friars Junípero Serra, Juan Viscaino and Fernando Parron raised and 'blessed a cross', establishing the first mission in upper Las Californias, Mission San Diego de Alcala. Colonists began arriving in 1774. In the following year the Kumeyaay indigenous people rebelled against the Spanish. They killed the priest and two others, and burned the mission. Father Serra organized the rebuilding, and a fire-proof adobe and tile-roofed structure was completed in 1780. By 1797 the mission had become the largest in California, with a population of more than 1,400 presumably converted Native American "Mission Indians" relocated to and associated with it. The tile-roofed adobe structure was destroyed by an 1803 earthquake but replaced by a third church in 1813.
In 1821 Mexico ousted the Spanish in the Mexican War of Independence and created the Province of Alta California. The San Diego Mission was secularized and shut down in 1834 and the land was sold off. 432 residents petitioned the governor to form a pueblo, and Juan María Osuna was elected the first alcalde ("municipal magistrate"), defeating Pío Pico in the vote. Beyond town Mexican land grants expanded the number of California ranchos that modestly added to the local economy.
The original town of San Diego was located at the foot of Presidio Hill, in the area which is now Old Town San Diego State Historic Park. The location was not ideal, being several miles away from navigable water. Imported goods and exports (primarily tallow and hides) had to be carried over the La Playa Trail to the anchorages in Point Loma. This arrangement was suitable only for a very small town. In 1830 the population was about 600; in 1838 the town lost its pueblo status because of its dwindling population, estimated as 100 to 150 residents.
Alta California became part of the United States in 1848 following the U.S. victory in the Mexican-American War and the Treaty of Guadalupe Hidalgo. The resident "Californios" became American citizens with full voting rights. California was admitted to the Union as a state in 1850. San Diego, still little more than a village, was incorporated as a city and was named the county seat of the newly established San Diego County. The United States Census reported the population of the town as 650 in 1850 and 731 in 1860.
San Diego promptly got into financial trouble due to overspending on a poorly designed jail. In 1852 the state repealed the city charter, in effect declaring the city bankrupt, and installed a state-controlled three-member board of trustees to manage San Diego. The trustees stayed in control until 1887, when a mayor-council form of government was installed under a new city charter.
Although some 10,000 men stopped briefly in San Diego on their way to the San Francisco gold fields, few stayed, and San Diego remained sparsely settled during much of the 1850s. Despite its small population, this decade brought investors who saw the potential of San Diego. They bought lots, and built rough houses and shops. One, William Heath Davis, spent $60,000 constructing a wharf near the property he had purchased near the foot of today's Market Street. Remembered as "Davis' Folly", it was completed by August 1851, but was seldom used. In 1853, the steamer Los Angeles collided with the wharf. The damage was never repaired. Unused and poorly built, the damage was not worth fixing. Davis tried unsuccessfully to sell it. Finally, in 1862, the Army destroyed it, using timbers for firewood.
The failure of the wharf was only one indication of depressed times. Houses were dismantled and shipped to more promising settlements. By 1860, many of the enterprises that had been established during the early 1850s had closed. The few businesses that survived suffered from water shortages, high costs of shipping, and a declining population.
On April 15, 1867, 53-year-old Alonzo Horton disembarked from the Orizaba. Although his first view was of barren, mesquite-covered land with a few decaying structures, he was awed, saying, "I have been nearly all over the world and it seemed to me to be the best spot for building a city I ever saw." He was convinced that the town needed a location nearer the water to improve trade. Within a month of his arrival, he had purchased more than 900 acres of today's downtown for a total of $265, an average of 27.5 cents an acre. He began promoting San Diego by enticing entrepreneurs and residents. He built a wharf and began to promote development there. The area was referred to as New Town or the Horton Addition. Despite opposition from the residents of the original settlement, which became known as “Old Town”, businesses and residents flocked to New Town, and San Diego experienced the first of its many real estate booms. In 1871, government records were moved to a new county courthouse in New Town, and by the 1880s New Town (or downtown) had totally eclipsed Old Town as the heart of the growing city.
In 1878, San Diego was predicted to become a rival of San Francisco’s trading ports. As a result, the manager of Central Pacific Railroad at the time, Charles Crocker, decided not to build a station from Northern California to San Diego, fearing that San Diego would take all the trade from San Francisco. Since he wanted to build a railway to Southern California to engage in trade, Crocker decided on the then small town Los Angeles, which did not have any sort of trading port at the time.
In 1885, a transcontinental railroad transfer route came to San Diego, and the population boomed, reaching 16,159 by 1890. In 1906 the San Diego and Arizona Railway of John D. Spreckels was built to provide San Diego with a direct transcontinental rail link to the east by connecting with the Southern Pacific Railroad lines in El Centro, California. It became the San Diego and Arizona Eastern Railway. In 1933 the Spreckels heirs sold it to the Southern Pacific Railroad.
In 1912 Council restrictions on soapbox oratories led to The San Diego Free Speech Fight, a confrontation between the Industrial Workers of the World on the one side and law enforcement and vigilantes on the other.
The city grew in bursts, especially in the 1880s and again from 1900 to 1930, when it reached 148,000.
In the 1890-1914 period the nation became greatly interested in Pacific naval affairs, as seen in the Spanish-American War of 1898; the U.S. acquisition of Guam, the Philippines, and Hawai'i; and the opening of the Panama Canal in 1914. San Diego was in a strategic location and sought to become "the "Gibraltar of the Pacific." Civic leaders such as real-estate developer D. C. Collier and other leaders of the Chamber of Commerce, assisted by Congressman William Kettner actively lobbied the Navy and the federal government to make San Diego a major location for naval, marine, and air bases. During World War I the U.S. greatly expanded the Navy, and the city was eager to help. By the time the Marine Base and Naval Training Center opened in the early 1920s, the Navy had built seven bases in San Diego at a cost of $20 million, with another $17 million in the pipeline. The city's 'culture of accommodation' determined the way the city would grow for the next several decades, and created a military-urban complex rather than a tourist and health resort. With the reduction in naval spending after 1990, the Chamber turned its focus to tourism and conventions.
San Diego had the great harbor and the weather; it seemed poised to become a world-class metropolis. But it was overshadowed by both San Francisco and Los Angeles. Businessman John D. Spreckels expressed the enthusiasm of San Diego's boosters in 1923, as well as the disappointment that it had not fully developed.:
The southern portion of the Point Loma peninsula was set aside for military purposes as early as 1852. Over the next several decades the Army set up a series of coastal artillery batteries and named the area Fort Rosecrans. Significant U.S. Navy presence began in 1901, with the establishment of the Navy Coaling Station in Point Loma, and expanded greatly during the 1920s. Camp Kearny was established in 1917, closed in 1920, later reopened, and eventually became the site of Marine Corps Air Station Miramar, but not before being in whole or in part Camp Elliot and Sycamore Canyon Test Facility. The Marine base Camp Matthews, which was joined by Camp Callan from 1941 to 1945, occupied a mesa near La Jolla from 1917 until 1964; the site is now the campus of University of California, San Diego. Naval Base San Diego was established in 1922, as was the San Diego Naval Hospital. The Marine Corps Recruit Depot San Diego was commissioned in 1921 and the San Diego Naval Training Center in 1923; the Naval Training Center was closed in 1997. After World War II the former site of Fort Rosecrans in Point Loma was used for multiple Navy commands, including a submarine base and a Naval Electronics Laboratory; they were eventually consolidated into Naval Base Point Loma. Other portions of Fort Rosecrans became Fort Rosecrans National Cemetery and Cabrillo National Monument. In the early-1990s, twenty percent of the San Diego region's economy was dependent on defense spending.
In 1942 the Marine Corps Base Camp Pendleton was set up 45 miles north of the city on 250,000 acres. It remains one of the main Marine Corps training facilities. It became the home of the 1st Marine Division in 1946 and later the I Marine Expeditionary Force as well as several training commands. In 1975 the Marine Corps opened the Camp Pendleton Refugee Camp to care for some of the hundreds of thousands of South Vietnamese and Cambodians refugees who fled after the Vietnam War was lost.
San Diego gave strong support to the Progressive Movement that swept California in the early 20th century in order to purify the state from oppressive bossism and corporate rule. Progressive Republicans resented the political power of the Southern Pacific Railroad and the role of "Boss" Charles Hardy. Reformers organized and fought back beginning with the 1905 municipal election. In 1906, they formed the Roosevelt Republican Club, and in 1907 reformers backed a Nonpartisan League. Led by Edgar Luce, George Marston and Ed Fletcher, the Roosevelt Republican Club became the Lincoln-Roosevelt Republican League. The mayoralty election of 1909 marked a sweeping victory for the League, as did the 1910 election of Hiram Johnson as governor.
Marston was defeated for mayor in 1913 (against Charles F. O'Neall) and again in 1917 (against Louis J. Wilde). The 1917 race in particular was a classic growth-vs.-beautification debate. Marston argued for better city planning with more open space and grand boulevards; Wilde argued for more business development. Wilde called his opponent "Geranium George", painting Marston as unfriendly to business. Wilde's campaign slogan was "More Smokestacks", and during the campaign he drew a great smokestack belching smoke on a truck through the city streets. The phrase "smokestacks vs. geraniums" is still used in San Diego to characterize this type of debate between environmentalists and growth advocates.
San Diego hosted two World's Fairs, the Panama-California Exposition in 1915-1916, and the California Pacific International Exposition in 1935-1936. The expositions left a lasting legacy in the form of Balboa Park and the San Diego Zoo, and by popularizing Mission Revival Style and Spanish Colonial Revival Style architecture locally and in Southern California as a regional aesthetic and nationwide design influence. The Spanish Colonial Revival architecture used in the design of the 1915 Fair was designed by architect Bertram Goodhue of the firm Cram, Goodhue and Ferguson in Boston, Massachusetts. He was inspired by his studies of the architecture of Mexico. The Federal Works Progress Administration (WPA) helped fund the 1935 fair, which was designed by architect Richard S. Requa.
From the 1910s through the 1970s, the American tuna fishing fleet and tuna canning industry were based in San Diego, acclaimed by boosters the "tuna capital of the world." San Diego's first large tuna cannery, the Pacific Tuna Canning Company, was founded in 1911. Others such as Van Camp Seafood, Bumble Bee and StarKist followed. By the mid-1930s housewives in the Great Depression appreciated the cheap, easy-to-serve food. By 1951 the tuna fleet had 700 boats and 2700 unionized fishermen, while the five local canneries employed more than 3,000 workers. It was the #3 industry after the Navy and aviation. Banker C. Arnholt Smith, a top civic leader, was a major investor. With Japan offering cheaper tuna after 1950, Smith worked to break the union using new technology and Peruvian canneries. Due to rising costs and foreign competition the last of the canneries closed in the early 1980s. A large fishing fleet supported the canneries, mostly staffed by immigrant fishermen from the Portuguese Azores and Italy, whose influence is still felt in neighborhoods like Little Italy and Point Loma. Many Portuguese fishermen and boat owners settled in the Roseville neighborhood of Point Loma, which is still sometimes referred to as "Tunaville." There is a sculpture dedicated to the cannery workers in Barrio Logan and a "Tunaman's Memorial" statue on Shelter Island.
During World War II when fishing was not possible, 53 tuna boats and about 600 crew members served the U.S. Navy as the "yippie fleet" (so called because of service numbers beginning with YP, for Yard Patrol), also called the "pork chop express", delivering food, fuel and supplies to military installations all over the Pacific. Twenty-one of the vessels were lost and dozens of crew members were killed on these hazardous missions. Yippie ships won more than a dozen battle stars and several Presidential Unit Citations.
Philanthropy was an important part of San Diego's expansion. For example, wealthy heiress Ellen Browning Scripps underwrote many public facilities in La Jolla, was a key supporter of the fledgling San Diego Zoo, and together with her brother E. W. Scripps established the Scripps Institution of Oceanography.
San Diego met the challenge of the Great Depression better than most parts of the country. The population of San Diego County grew 38%, from 210,000 to 290,000, from 1930 to 1940, while the city itself went from148,000 to 203,000 – a much better rate than the state as a whole. There was money enough to build a new municipal golf course and tennis courts, to improve the water system, and open a new Spanish-style campus for San Diego State College (now San Diego State University). The New Deal used PWA relief money to expand the fleet, bringing more money into the city. In 1935 the entire Pacific Fleet assembled with 48 warships, 400 naval aircraft, 55,000 sailors and 3000 officers to demonstrate the importance of sea power to the city, and to exhibit to Japan and the rest of the world America's interest in the Pacific. The expansion of naval and army aviation led Consolidated Aircraft Corporation of Buffalo New York to bring all its 800 employees to San Diego, opening a major assembly plant, Convair, which built Navy flying boats. Ryan Aeronautical Company, which built the Spirit of St. Louis for the famous 1927 flight of Charles Lindbergh, also flourished. The 7.2 million visitors to the California-Pacific International Exposition in 1935-36 were impressed with the city's prosperity, as well as the 400 exhibits from 23 nations.
After 1848 the Californios comprised a numerical majority and owned most of the property; they secured cultural and social recognition, but they failed to control the political system. By 1860, most had left the area and the remainder were on the decline economically.
In World War II Hispanics made major breakthroughs in employment San Diego and in nearby farm districts. They profited from the new skills, contacts, and experiences provided by the military, filled many newly opened unskilled labor jobs, gained some high-paying jobs in the military installations and aircraft factories, and were welcomed by the labor unions, especially the Cannery Workers Union.
In recent decades advertisers have recognized the purchasing power of the local Hispanic community. They have invested in Spanish language television, especially Univisión and Telemundo. The older generations watch Spanish broadcasts. The younger generations of Hispanics in San Diego (and other ethnic groups as well) seldom can read Spanish and rapidly abandon the spoken form except in dealing with their elders. Rumbaut et al. conclude, "Mexican immigrants arriving today can expect only 5 of every 100 of their great grandchildren to speak fluent Spanish."
Immigrants from China began arriving in the 1860s and settled in two waterfront fishing villages, one in Point Loma, the other in the New Town area where the San Diego Convention Center now stands. Chinese was harshly discriminated against in California and forced into Chinatowns. In San Diego there was much more freedom; there were no attacks on the 50 or so Chinese fishermen based there. Indeed they were pioneers in the industry in the 1860s; their peak came in the 1880s. They specialized in abalone for export to Chinese communities up and down the Pacific coast. One journalist reported, "Even the fins of the shark are eaten by Chinamen, and are by them esteemed to be a great delicacy—as much of a delicacy as a Chinaman would be to a shark." By the 1890s the fishermen had gone; some returned to China, others took jobs on land.
The Chinese continued to settle in San Diego and found work in the fishing industry, railroad construction, service industry, general construction work, food industry, and merchandising. They were forced into a closed Chinatown but otherwise received less violent attention than suffered by Chinese elsewhere in the West.
They soon formed district associations, family and clan associations, secret societies, and business guilds, including the Chee Kung Tong (est. 1885), the Chinese Consolidated Benevolent Association (est. 1907), the Bing Kung Tong (est. 1922), and the Ying On Tong (est. 1945). In the 1870s and 1880s, two Chinese Christian missions were organized to help the Chinese with housing, employment, recreational activities, and English language instruction. The Chinese population increased dramatically, especially after the 1965 Immigration Act allowed large numbers of businessmen and professionals to migrate from Hong Kong, Taiwan and China. Many Chinese Americans achieved prominent community status, including Tom Hom, a city councilman and state assemblyman.
The late-20th-century San Diego Chinese community is made up of a heterogeneous population that includes Cantonese-speaking, Mandarin-speaking, and Hokkien-speaking members, as well as those from a variety of places of origin, including Southeast Asia. Many in the San Diego community have joined together to determine and further their Chinese-American identity.
The African American population was small before the great naval expansion of World War II. The local NAACP chapter was inactive. Starting in 1953, the Urban League brought together black and white professionals and businessmen and encouraged white business owners to hire blacks. Unlike other Urban League chapters, it built coalitions with San Diego's Mexican American community. Even as recently as 2008, African Americans made up only 7.8% of the population of the city of San Diego, and 5.1% of San Diego County.
For over 100 years the 2nd oldest neighborhood "Logan Heights" was home to African Americans. This was the only area that blacks were allowed to buy and live in homes. (From Downtown to Sherman Heights as well). In Logan Heights there is a church (black) on every block. After the 1960's Civil Rights Act, blacks started to move out of Logan Heights into area like Emeral Hills, Encanto and Oak Park. On any given Sunday, you will see hundreds of blacks coming back in Logan Heights to attend the same churchs. Some churchs are as old as a 100 years old.
The founding fathers are all buried in the Logan Heights (Mountain View) area in the Mount Hope cemertary and Greenwood cemertary. People like Mr. Horton (Horton Plaza). There are streets name after some of the founding fathers in Logan Heights. Streets like Julian, Irving, Logan. Logan Heights does not get the respect from City Leaders because it was seen as too black to 'highlight" in the media (for over 70 years the area was 90% black). That practice is still going on to this day (2013). Logan Heights now has become 90% hispanic, starting in the 1980's. One is to believe because of the closeness to the downtown area and Navy base, the area is very valuble now! Old Victorian homes still dot the Logan Heights area. I (black person) who grew up in Logan Heights really did not the importance of my beloved Logan Heights until coming back home and reading up on the true history of Logan Heights from 1900 to present.
One only have to look at the Baynard Collection to see the life of an African American in San Diego from 1940's to 1980's in Logan Heights.
As a port city San Diego always had a gay and lesbian community, but it was largely closeted. Beginning in the 1960s the neighborhood of Hillcrest began to attract large numbers of gay and lesbian residents, drawn by low rents, high density, and the possibility of an urban dynamic. In the 1970s gay men founded a Center for Social Services in Hillcrest which became a social and political focus for the gay community. In June 1974 they launched the first Gay Pride Parade, which has been held every year since, and Hillcrest is well recognized as the focal point of the LGBT community. Also in the 1970s several churches, especially The independent Metropolitan Community Church, as well as movements within established denominations like Dignity (Roman Catholic), Integrity (Episcopalian), and Lutherans Concerned, formed a coalition that helped gays reinterpret biblical passages condemning homosexuality, and reconcile their sexual orientation with their religious faith. All of this helped to promote public understanding.
Since World War I, the military has played a leading role in the local economy. World War II brought prosperity and gave millions of soldiers, sailors and airmen en route to the Pacific a view of the opportunities in California. The aircraft factories grew from small handcraft shops to gigantic factories. The city’s population soared from 200,000 to 340,000, as the Navy and Marines opened training facilities and the aircraft factories doubled their employment rosters every few months. With 40,000 to 50,000 sailors off duty every weekend, the downtown entertainment districts soon became saturated. The red-light district was officially shut down, but opportunities were easily available a few miles south in Tijuana, Mexico. Workers poured in from the towns and from across the country, creating a severe housing shortage. Public transportation (trolleys and buses) could barely keep up with the demand, and automobiles were rationed to only 3 gallons a week. Many wives who relocated while their husbands were training stayed in the city when their men shipped out and took high-paying jobs in the defense industries. The dramatic increase in the need for fresh water led the Navy in 1944 to build the San Diego Aqueduct to import water from the Colorado River; the city financed the second pipeline in 1952 
Convair was the largest employer in San Diego, with 32,000 well-paid workers in the mid-1950s. In 1954 it was bought out and became the Convair Division of General Dynamics, a large aerospace conglomerate based in Texas. Convair had been highly successful in the 1950s with the B-36, a very long-range bomber that became the workhorse of the Strategic Air Command. General Dynamics refocused Convair on commercial aviation as the Convair 240, a two- engine passenger plane, proved highly successful in the world market. Convair decided to move up to the very rapidly growing world market for medium-range jet passenger planes with the Convair 880. It was designed to rival Boeing's proposed 707, and Douglas's proposed DC-8. Financial and technical delays left Convair lagging far behind. After heavy losses, General Dynamics moved all the airplane elements to Texas, and left the San Diego factory with small-scale space and missile projects. Convair’s employment fell to 3300 in San Diego.
As the Cold War ended, the military shrunk and so did defense spending. San Diego has since become a center of the emerging biotech industry and is home to telecommunications giant Qualcomm. Starting in the 1990s the city and county developed a nationally known craft beer industry; the area is sometimes referred to as "America's Craft Beer capital". As of the end of 2012 there were 60 microbreweries and brewpubs in the county.
After acquiring the Scripps Institution of Oceanography in 1912, the University of California (UC) built up a presence, with an emphasis on scientific research and cultural opportunities. For years UC operated an extension program in San Diego. In 1960, following wartime and postwar increases in population and economic growth in San Diego, UC broke ground for a new campus there, and classes at UCSD began in 1964. Under Richard C. Atkinson, chancellor from 1980 to 1995, UCSD strengthened its ties with the city of San Diego by encouraging technology transfer with developing companies, transforming San Diego into a world leader in technology-based industries. Private giving rose from $15 million to nearly $50 million annually, faculty expanded by nearly 50%, and enrollment doubled to about 18,000 students during his chancellorship.
San Diego State University (SDSU), founded in 1897 as San Diego Normal School for the preparation of teachers, is the largest and oldest higher education facility in San Diego County. SDSU has grown to a student body of 31,597 and an alumni base of more than 260,000.
Charles F. Buddy came to the city in 1937 as the first Bishop of the new Diocese of San Diego. Educated in Rome, he was a hard-working administrator who collaborated easily with every element in the city's leadership. He was a builder, creating 150 new parishes, 30 mission chapels, 75 elementary schools, and a diocesan newspaper for the rapidly expanding Catholic population. Emphasizing the historic Catholic connections of the city – which was named San Diego after St. James—he restoreMission San Diego de Alcalá, and invested heavily in Mission Style architecture. He built a higher education complex, now the University of San Diego, that included a college for women, a men’s college, law school, theological seminary, a basilica for the chapel, and offices for the diocese.
The transformation of the downtown areas from a zone of poverty and poor housing to a major tourist attraction with large numbers of jobs began in 1968 with the creation of the Centre City Development Corporation. Its urban renewal project focused on the Gaslamp Quarter beginning in 1968, with the goal of making the area a national historic district and bringing upper- and middle-class tourists and suburban residents to downtown San Diego. Since the 1980s the city has seen the opening of the Horton Plaza shopping center, the revival of the Gaslamp Quarter, and the construction of the San Diego Convention Center.
A recent boom on the construction of condos and skyscrapers (especially focusing on mixed-use facilities), a gentrification trend especially in Little Italy, and the inauguration of Petco Park in the once blighted East Village highlight the continuing development of downtown. Center city population is expected to rise to 77,000 residents by 2030; 30,000 people currently reside in downtown San Diego.
A successful renewal by 'gentrification' is the Hillcrest neighborhood, known for its historic architecture, tolerance, diversity, and locally-owned businesses, including restaurants, cafés, bars, clubs, trendy thrift-stores, and other independent specialty stores. Hillcrest has a high population density, compared to many other neighborhoods in San Diego, and it has a large and active lesbian, gay, bisexual and transgender (LGBT) community.
In July 1971 the Republican National Committee chose San Diego to be the site of the 1972 Republican National Convention, despite initial opposition from the city's mayor, Frank Curran, and despite the fact that the city did not initially bid for the opportunity. It was widely believed that San Diego was selected because it was the preferred choice of President Richard Nixon. The city and the party were making preparations for the convention when in March 1972 a $400,000 donation to the event by ITT Corporation was publicized and became a national scandal. In addition, there were ongoing problems with the proposed venue (the San Diego Sports Arena) and concerns about adequate hotel space. In May 1972 the Republican National Committee voted to move the convention to Miami, Florida. In response, Mayor Pete Wilson proclaimed the week of the convention as "America's Finest City Week", giving rise to the city's current unofficial slogan "America's Finest City". The 1996 Republican National Convention was held in San Diego in August 1996, headquartered at the San Diego Convention Center.
The United States National Bank, headquartered in San Diego and owned by C. Arnholt Smith, grew during the 1960s to become the 86th largest bank in the country with $1.2 billion in total assets. It failed in 1973 in the largest bank failure to date. The cause was bad loans to Smith-controlled companies, which exceeded the bank's legal lending limit. Smith had used the bank's money for his private business and bribed bank inspectors to cover it up. He was convicted of embezzlement and tax fraud and served seven months in federal prison in 1984.
During the 1980s the city was rocked by the disclosure that J. David & Co., an investment company run by the well-connected J. David "Jerry" Dominelli, was in reality a Ponzi scheme which had bilked hundreds of investors for an estimated $80 million. Dominelli was convicted in 1984 and served 10 years in prison. His affiliation with then-mayor Roger Hedgecock led to a pair of sensational trials in which Hedgecock was convicted of conspiracy and perjury in connection with contributions he received from Dominelli. Hedgecock was forced to resign from office; his convictions were eventually overturned, except for one which was reduced to a misdemeanor.
Sparrow (2010) argues that the city's government has long had a reputation for conservatism and lack of reform impulses. A civic scandal exploded in 2003 with the discovery that city finances had been manipulated with massive losses in the pension fund scandal. It left the city with an estimated $1.4 billion pension fund gap. One result was replacing the council-manager form of government with a mayor-council system in 2004. Although not charged with any wrongdoing, Mayor Dick Murphy resigned effective July 2005. Deputy Mayor Michael Zucchet took over as acting mayor but had to resign three days later, when he and fellow city councilmember Ralph Inzunza were convicted in federal court for taking bribes in a scheme to overturn the city's "no touch" law at strip clubs. Their felony conviction required them to resign from the city council. A third accused councilmember had died before trial. Zucchet's conviction was later overturned. Inzunza was sentenced to 21 months in prison.
Beyond the issues regarding the city government, San Diego has experienced scandal on the Federal level as well. On November 28, 2005, Congressman Randy "Duke" Cunningham resigned after pleading guilty to bribery charges; he was sentenced to 8 years in prison.