Daily Business Report — Aug. 17, 2012
California Supreme Court Ruling Hands
Major Victory to Residential Developers
The California Supreme Court has issued a ruling that upholds the enforceability of arbitration provisions in Covenants, Conditions and Restrictions by developers of new common interest development projects, as long as the provisions are fairly drafted. The decision announced Thursday represents a major victory for developers, who can now expect that most of the provisions will be enforced, eliminating the risk of potentially excessive jury verdicts. According to Hecht, Solberg, Robinson, Goldberg & Bagley, the San Diego law firm that argued the case before the state’s highest court, the ruling “finally provides certainty on how construction defect disputes will be resolved between developers of common interest developments, the associations who manage them and the owners who live in them. “Arbitration is faster and less expensive for all parties than litigation through court,” said Jerry Goldberg, lead counsel who argued the case on behalf of Pinnacle Market Development, the builder. The ruling is in the case of Pinnacle Museum Tower Association v. Pinnacle Market Development.
L’Auberge Hotel Listed for Sale
A lavish hotel in Del Mar has been put on the market, according to an online flyer released by a brokerage firm. L’Auberge, the 121-room seaside resort, was listed for sale on Aug. 6. Nationwide premiere brokerage firm Eastdil Secured released a detailed flyer on the property, calling it an “irreplaceable coastal icon” and “unparalleled seaside location.” The information listed by Eastdil Secured does not list an asking price, but described a $26 million renovation that took place in 2009. Andrew Holt, a senior vice president at Eastdil Secured, said he could not comment on the sale, nor could he confirm or deny that L’Auberge is for sale. The hotel and management group also had no comment. L’Auberge is currently owned by the real estate group Lowe Enterprises and is managed by Destination Hotels & Resorts. The flyer said that the current management group can be retained in the sale, or the buyer can select its own management firm. — NBC 7 San Diego
Council Members Pledge Support for Proposition B
Current and incoming members of the San Diego City Council said Thursday they have the votes to deny any attempt to block implementation of a critical component of a pension reform initiative passed by voters in June. Proposition B, which was backed by two-thirds of voters, calls for new employees other than police officers to receive 401(k)-style retirement plans, instead of being enrolled in the debt-ridden pension system. City officials and union leaders are currently negotiating an interim benefits package. In December, talks are scheduled to start on the other major plank of the ballot measure, which for five years will limit — to base compensation — the earnings employees can later use to calculate pension payouts. At a news conference, current council members Kevin Faulconer and Lorie Zapf, and incoming members Mark Kersey and Scott Sherman, all pledged support for the five-year freeze. If they keep their stance, opponents of the ballot measure would only be able to muster five votes, at most. — City News Service (sandiegonewsroom.com)
Spirit Airlines Will Start Daily Nonstop
Service between San Diego and Los Cabos
Spirit Airlines will start new daily nonstop service between San Diego and Los Cabos, Mexico, on Nov. 8, with connecting service to Dallas/Fort Worth. In addition, four weekly nonstop flights between Los Cabos and Dallas/Fort Worth start June 13, 2013. And three weekly nonstop flights between Cancun, Mexico, and Dallas/Fort Worth start April 25, 2013, with service increasing to daily on June 13, 2013.
Sally Ride Science Names New CEO
Sally Ride Science, the science education company founded in 2001 by the late Sally Ride, has named Sheryle Bolton as its new chief executive officer. Ride, a former astronaut, served as president and CEO for 11 years until her death in July. Bolton was previously CEO of Scientific Learning Corp., an educational technology company that develops scientifically validated reading programs based on neuroscience research. Earlier in her career, Bolton was an executive at HBO and Rockefeller & Co., and an investment banker at Merrill Lynch. She is a director of The Small Business Banking Network, which trains bankers in developing economies to make small-business loans, and a trustee of Berry College.
Toni Atkins Bill to Protect Public Lands
From Illegal Use is Sent to Gov. Brown
A bill authored by San Diego Assemblymember Toni Atkins to protect public lands from illegal use and save the state thousands of dollars in enforcement and legal costs has been sent to Gov. Brown by the state Legislature. AB 2082 enables the State Lands Commission to levy fines against squatters if they do not fix a violation after receiving official notification and a 30-day grace period. Currently, the state must pursue expensive and time consuming court litigation to address unauthorized uses of these state lands. The governor has until Sept. 30 to sign or veto the bill.
Small Business Workshops (SCORE San Diego)
Aug. 20 — Leasing Strategies – 9 a.m. to noon at SCORE Entrepreneur Center, 550 West C St., No. 550, San Diego 92101; pre-paid registration $49, $59 at the door.
Aug. 22 — How to Start a Nonprofit Corporation – 9 to 11:30 a.m. at The San Diego Foundation, 2508 Historic Decatur Road, No. 200, San Diego 92106; pre-paid registration $39, $49 at the door.
Aug. 23 — Cost-Effective Marketing Tools & LinkedIn Strategies – 9 a.m. to noon at National University – Kearny Mesa, 9388 Lightwave Ave., San Diego 92123; pre-paid registration $49, $59 at the door.
Aug. 24 — Financial Statements – What They Mean, How to Use Them – 9:30 a.m. to noon at National University – Carlsbad, 705 Palomar Airport Road, Carlsbad 92011; pre-paid registration $29, $39 at the door.
40 Under 40 Awards Luncheon
Please join SD Metro in celebrating this year’s 40 Under 40 Award winners, honoring San Diego’s best and brightest. The Details: Sept. 25 at the Sheraton Hotel and Marina, 1380 Harbor Island Drive, San Diego 92101. Registration: 11:30, Luncheon and Program: Noon-1:30 p.m. Tickets: $80. Tables of 10: $800 ($700 if an honoree is at your table). Please email your reservation request to: Rebeca Page at rebecapage@sandiegometro.com or call (858) 461-4484.
The Daily Business Report is produced by SD METRO. Contact: Manny Cruz (619) 287-1865. manny@sandiegometro.com.
