Daily Business Report-June 22, 2017
Rendering of the proposed resort hotel and convention center on the Chula Vista Bayfront. (Courtesy of RIDA Development Corporation)
Plans Move Forward on the $1 Billion
Redevelopment of Chula Vista’s Bayfront
The Port of San Diego and Chula Vista City Council have selected a developer to negotiate terms for the development of a resort hotel and convention center on the Chula Vista Bayfront — a key part of long-held plans to develop the bayfront into a major tourist magnet and a powerful economic engine for the city.
The Board of Port Commissioners and the council approved a resolution Tuesday authorizing a Letter of Intent with RIDA Chula Vista LLC, setting the stage for a future deal outlining financing for the project.
“This is an historic moment. Two years of negotiations are paying off. This letter of intent represents a good deal for the Port, the city, RIDA and the public we serve. I am very proud to see this materialize,” said Robert “Dukie” Valderrama, chair of the Board of Port Commissioners. “This will be the first major development on the South Bay and we could not have gotten it done without Commissioner Ann Moore, a persistent, driving force on the Chula Vista Bayfront project.” Moore is Chula Vista’s representative on the Board of Port Commissioners.
With approximately 1,450 hotel rooms, 275,000 usable square feet of convention and meeting space, and associated retail and resort-style amenities, the project will anchor the Chula Vista Bayfront and catalyze development in the surrounding area, officials said. It also is expected to have a significant economic impact, both during construction and after completion. A total countywide economic impact of $1.2 billion is expected to be generated over the construction period, resulting in the creation of nearly 3,100 jobs. Once built, the ongoing economic impact to the region is projected to be $390 million per year with the creation of nearly 3,700 permanent jobs.
“The Chula Vista Bayfront project is a new model for development and will be a significant achievement in job creation and economic prosperity for the region,” said Moore. “Through innovative and collaborative partnerships, we are making the impossible possible.”
In parallel with the exclusive negotiations between the Port, the city and RIDA, RIDA has been in its own negotiations with Gaylord Hotels to manage and operate the future resort hotel and convention center. This potential partnership is described in the terms included in the Letter of Intent.
“This approval paves the way for the construction of the resort hotel and convention center, but more importantly, creates a path for responsible development of the entire Chula Vista Bayfront property,” said Luke Charlton, chief operating offier of RIDA Development Corp.
The Chula Vista resort hotel and convention center project, which includes public infrastructure and private development, is projected to cost approximately $1 billion. Under terms of the Letter of Intent, the Port and the city will contribute $281 million, to be financed by existing and projected revenue streams and bonds.
Port staff anticipates presenting the definitive agreement to the board and City Council for approval later this year.
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General Atomics Aeronautical Systems
Celebrating its 25th Anniversary in San Diego
General Atomics Aeronautical Systems, a leading manufacturer of Remotely Piloted Aircraft (RPA) systems, celebrates its 25th year anniversary with a series of employee and customer outreach activities that will continue over the next year.
Headquartered in Poway, the company employs nearly 8,000 people in a business that spans multiple facilities in San Diego, the Mojave Desert, Arizona, Utah, North Dakota, and others adjacent to various customer locations across the United States and around the globe. Through its supplier contracts, the company employs over 10,000 additional people across the U.S.
GA-ASI started on April 28, 1992 in the same year that the company won its first contract award for six GNAT-750 Unmanned Aircraft Systems (UAS) by the Turkish government. In 1994, the company won its first major program award for the Predator RPA from the U.S. Joint Program Office, which was later transferred to the U.S. Air Force. “We are proud of our long and distinguished history supporting the warfighter,” said CEO Linden Blue. “From Predator, to Predator B, Gray Eagle, Avenger, and their many mission configurations, our aircraft and payload systems continue to address changing missions requirements for U.S. military and civilian users. Our Predator B is in service with Allied nations around the world including the United Kingdom, Italy, and France.”
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Nuvve and UC San Diego to Demonstrate
Vehicle-to-Grid Technology with Grant
What if all the more than half a million electric vehicles in the U.S. could be turned into virtual power plants, feeding energy back into the grid while connected via a charger? Thanks to a $4.2 million grant from the California Energy Commission, San Diego-based Nuvve Corporation will demonstrate how this technology could work on a large-scale with help from UC San Diego. Nuvve and its partners will provide additional funding to cover the $7.9 million total project cost.
Nuvve will deploy its “Vehicle to Grid” charging platforms on 50 new UC San Diego electric vehicle chargers. Vehicle to Grid technology allows a parked electric vehicle to become part of an electric grid – you can charge your vehicle at night, drive it to work in the morning and then charge the energy back into the grid when you park. Charging and discharging is flexible and based on real-time requests from the grid operator. Drivers would be paid every time the grid operator uses energy from their cars while still being guaranteed the expected level of charge needed to operate the vehicle.
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Torrey Hills Medical Plaza
Sold for $28.5 Million
The Torrey Hills Medical Plaza in Del Mar Heights has been sold for $28.5 million to Torrey Hills MOB LLC. Financing was arranged by Holliday Fenoglio Fowler LP. The seller was Torrey Pines Enterprises.
HFF worked on behalf of the buyer in arranging a joint venture with an institutional equity investor and negotiating the assumption and modification of the existing life insurance company loan.
Torrey Hills Medical Plaza is at 4765 Carmel Mountain Road within the Von’s-anchored Torrey Hills Center. Completed in 2005, the two-story building is 92 percent leased and anchored by Fresenius Medical Care.
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Fairbanks Terrace Senior Apartments
Opened in Black Mountain Ranch
The San Diego Housing Commission reports the grand opening of the newly constructed Fairbanks Terrace senior apartments at 16325 Paseo Del Sur in Black Mountain Ranch.
The 82 affordable rental apartments for low-income seniors were developed by Chelsea Investment Corporation in partnership with the housing commission.
The waiting list for Fairbanks Terrace includes 100 people. The rental units are affordable for low-income seniors:
- Seventy-three units will be affordable for households with incomes below 60 percent of San Diego’s Area Median Income (AMI), approximately $43,680 a year for a family of two.
- Nine units set aside for households with incomes below 50 percent of San Diego’s AMI, approximately $36,400 for a family of two.
Rents for Fairbanks Terrace residents are approximately $800 to $1,100 per month – up to half of market-rate rents in the Black Mountain Ranch area.
The housing commission authorized the issuance of $15.3 million in Multifamily Housing Revenue Bonds, which represents more than 59 percent of the total development cost of $25.8 million. The bonds were allocated by the state, and were approved by the San Diego City Council, sitting as the Housing Authority of the City of San Diego.
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San Diego Rescue Mission Names
Donnie Dee as President and CEO
The San Diego Rescue Mission Board of Directors has named Donnie Dee as the organization’s new president and CEO. Dee, who will assume his leadership role at the Rescue Mission on July 17, comes to the organization from the Fellowship of Christian Athletes (FCA) where he served 27 years, most currently as the director of the Tom Landry Associates in the Western Region.
Prior to this, Dee served as FCA’s regional director for Southern California, Colorado State Director and the COO of FCA from 2009-2014.
As a Kansas City native, Dee played football and basketball for Oak Park High School and was a four-year letterman in football at the University of Tulsa, graduating from there in 1988 with a business management degree. He was then drafted by the Indianapolis Colts and played in the NFL for two years. After his time in the NFL, Dee began his FCA career in Colorado in 1990.
