Daily Business Report-May 2, 2018
Banner posted by a coalition supporting Prop 69, a June ballot measure that would prohibit Legislature from raiding new transportation funds from the SB 1 gas tax, and opposing November ballot measure to repeal SB 1.
San Diego Region in Line to Receive
$311 Million in SB 1 Gas Tax Funds
Opponents turn in signatures to repeal the tax increase
The California Transportation Commission staff is recommending that the San Diego region be awarded $311 million from the SB 1 gas tax measure passed by the Legislature last year while opponents submitted nearly 1 million signatures to place a measure on the November ballot to repeal the tax.
The California Transportation Commission will consider the recommendation when it meets in San Diego on May 16 and 17. The recommendations were released last week for three major new grant programs created under SB 1.
“These SB 1 awards will be a major infusion of funds to the San Diego region,” said SANDAG Chair and Del Mar Councilman Terry Sinnott. “With more than $311 million recommended for award, in addition to the more than $450 million already awarded to the region, construction can start in the coming months to deliver transportation system improvements, including adding carpool lanes, improving rail lines, and building biking and walking paths.”
Recommendations include $195 million for the North Coast Corridor Program, $82 million for the California-Mexico Border System Project, and $10.5 million for the Sorrento to Miramar Double Track Project. The CTC staff recommendations also included about $24 million for other local transportation projects; including, $12.5 million for the city of Escondido, approximately $6 million for the Port of San Diego, and $6 million for the city of San Diego.
The repeal measure is backed by former San Diego Councilman Carl DeMaio and gubernatorial candidate John Cox. It calls for the repeal of the 12 cents per gallon increase and would require any future gas tax increase to be approved by voters.
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Analysis: What’s Important for Land, Sea and
Air in California’s Fight with Trump
Calmatters
The punch-counterpunch sparring between the Trump administration and the state of California over rollbacks of federal environmental regulations is often described as a war of words, with neither the president nor Gov. Jerry Brown giving an inch.
Some of the disputes are largely symbolic — foot-stamping gestures from Washington designed to resonate with the president’s core supporters rather than to hold up in court.
But the latest skirmish is serious. The federal Environmental Protection Agency’s decision to unravel fuel-efficiency standards for cars and light trucks not only threatens California’s autonomy in setting its own emissions limits but also could derail the state’s ability to reach its future greenhouse-gas-reduction goals.
“This is a politically motivated effort to weaken clean-vehicle standards with no documentation, evidence or law to back up that decision,” Mary Nichols, chairwoman of the state Air Resources Board, said in a statement. “This is not a technical assessment; it is a move to demolish the nation’s clean-car program. EPA’s action, if implemented, will worsen people’s health with degraded air quality and undermine regulatory certainty for automakers.”
The gauntlet was thrown down by EPA Administrator Scott Pruitt, a darling of the Trump administration for his zeal in dismantling Obama-era environmental regulations. Even though Pruitt is the target of multiple investigations for alleged ethical transgressions and has found his job security in question, the effect of his current decisions can resonate far beyond his or his boss’ terms in office.
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Fairfield Residential Acquires
The Heights at Fashion Valley
The Heights at Fashion Valley, a luxury residential development in San Mission Valley, has been sold to Fairfield Residential for an undisclosed price. The seller was Guardian Capital.
Located at 6950,720,7050 Friars Road, the 319-unit complex will be situated on 5.43 acres and is directly across the street from Fashion Valley mall. Currently there are two three-story vacant office buildings on the property that will be demolished.
“This fully entitled development site was a rare investment opportunity to build high-end residential in one of San Diego’s most dynamic infill markets,” said Rachel Parsons, first vice president of CBRE in San Diego, which represented the seller.
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National Institutes of Health Launches
Landmark Medicine Research Effort
A nationwide consortium led by the National Institutes of Health on May 6 will launch the All of Us Research Program, a pioneering research project —one with participants as partners — that uses advanced technologies and engages participants as citizen-scientists to embark on a new era of health science and precision medicine.
All of Us will build the largest health data resource of its kind by asking 1 million or more participants to play an active role in collecting and sharing their unique health information. Health data from such a large and diverse group of people will enable scientists to study how different factors — from genetics to exercise habits — impact a person’s health.
The Scripps Translational Science Institute will head key aspects of the initiative, including integrating mobile health technologies into the research program, and leading the national Participant Center which manages the enrollment of direct volunteers — individuals who do not have access to a participating health care provider organization.
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Upcoming Events at the San Diego Convention Center
- Association For Talent Development Annual Conference, May 7-9 (11,000 attendees)
- 2018 Kern US Open, May 12-13 (7,000 attendees)
- 2018 Argentum Senior Living Executive Conference, May 14-16 (2,600 attendees)
- American Thoracic Society (ATS) Annual, May 18-23 (16,000 attendees)
Crypto-Con 2018, May 25-27 (2,000 attendees)
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SOHO to Present 36th Annual
People In Preservation Awards
The Save Our Heritage Organisation (SOHO) will stage its 36th annual People in Preservation Awards program on May 31 from 4 to 6 p.m. in the Marston House Museum’s formal garden, 3525 Seventh Ave., San Diego
Nineteen individuals will be honored for their outstanding work on nine projects, including restored homes designed by Irving J. Gill with Hazel Wood Waterman, and David O. Dryden.
The mix of accomplishments ranges from a restored Mexican Presbyteran Church to documentary films and photography, and a new Hillcrest coffee roasters cafe in the 99-year-old former Sisters of Mercy Hospital Annex, previously on SOHO’s Most Endangered List.
Preservationist of the year, the top honor in the preservation awards, is shared by Susan Bugbee, Kelley Stanco, David Swarens, and Bernie Turgeon for their leadership and tireless work over several years on the South Park Historic District. The city of San Diego Historical Resources Board approved it unanimously in October. The district was also unanimously upheld by the City Council in February after it was challenged by a handful of residents.
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Sale and Acquisition Financing Arranged
for Bella Posta Property in Mission Valley
HFF announced the sale of and acquisition financing for Bella Posta, a 344-unit, mid-rise apartment community Mission Valley. HFF marketed the property on behalf of the original developer, The Padre Gardens Rancho Mission LP. Sares Regis Multifamily Value-Add Fund II LP purchased the property free and clear of existing financing.
Bella Posta consists of four garden-style buildings with a mix of one- and two-bedroom units averaging 816 square feet. The 95-percent-occupied community is situated on approximately eight acres adjacent to the Interstate 15/8 interchange and SDCCU Stadium.
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General Atomics Secures DOE Funds
for Nuclear Reactor Fuel Research
General Atomics has secured grants from the Energy Department to further develop new types of fuel designed to power nuclear reactor systems. The awards were part of an announcement by Secretary of Energy Rick Perry providing $60 million for U.S. industry to support advanced nuclear technology development.
The first project, with total funding of $2,763,744 and in collaboration with Oak Ridge National Laboratory and the University of Tennessee, will combine advanced computer modeling and simulation with new microcapsule irradiation to establish techniques that substantially reduce the time and expense required to qualify new fuels. The second project, funded at a total of $475,819, would support the pre-application license review of SiC-UC fuel by the Nuclear Regulatory Commission, thereby developing an efficient roadmap for formal regulatory qualification. General Atomics is providing the cost share for the awards.
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Top Recyclers of the Year Honored
Top Recycler of the Year awards were presented by the city of San Dieo’s Environmental Services Department staff on Tuesday. The top recyclers are: Intuit Inc., San Diego Convention Center Corp., San Diego State University, Neyenesch Printers Inc., Cox Communications Inc., Snooze an A.M. Eatery, San Diego County Regional Airport Authority, Qualcomm Inc., San Diego Zoo Global and SeaWorld San Diego.
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San Diego Regional Chamber
to Host 2018 Small Business Awards
Winners of the 2018 Small Business Awards will be announced Thursday during the San Diego Regional Chamber of Commerce Small Business Expo and Awards Mixer at Liberty Station.
The Expo will showcase more than 40 small businesses from across the region providing exposure and networking with the business community. The event is open to the public and free with advance registration. Registration is available online at sdchamber.org/SBA18.
Finalists in each of the five award categories include:
Bill Trumpfheller Social Impact — For companies and nonprofits who are dedicated to helping others and making a positive impact
- The San Diego Foundation
- Support The Enlisted Project (STEP)
- Autism Research Institute
Industry Game-Changer — For companies paving the way in creative forward-thinking and innovation
- COOLA
- Primo Wind
- GreenBoxPOS LLC
Up & Comer – For young professionals who are rising to the top of their field, or companies founded and run by young professionals
- City Wide Protection Services
- The Cravory
- Shore Solutions
Vets Success — For companies owned by veterans or prioritizing the hiring of veterans
- Altitude Imagery
- Cammies & Canines
- Titanium Cobra Solutions
Customer Service — For companies with exemplary customer service
- America’s Local Lender
- CrossFit Fortius
- McKinney Capital & Advisory
Event Info: 4:30 to 7:30 p.m. Awards program begins at 6:15 p.m. Building 177 at Liberty Station, 2875 Dewey Road, San Diego CA 92106. Free with advance registration, $20 at the door. Registration online: www.sdchamber.org/SBA18
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Personnel Announcements
Robert Kerr Joins The Heritage Group as a Senior Director
The Heritage Group has hired Robert Kerr, a seasoned professional with more than 20 years of experience in commercial real estate, both in brokerage and appraisal capacities, as a senior director. Kerr’s knowledge, experience and extensive background offers new and valuable insight to the team, providing specialties in the acquisition and disposition of all types of investment and owner-user properties, investment sales, including NNN, retail, industrial and multi-family.
Prior to joining The Heritage Group, Kerr was the senior vice president of Coldwell Banker Commercial SC and vice president of NAI San Diego Commercial Real Estate Services. Before pursuing commercial real estate, Kerr held both C-level and Executive-level positions in startup to Fortune 500 companies.
With a financial and operations background, Kerr managed all facets of operations including strategic business planning and implementation, performance optimization, P&L management, contract negotiations, VC funding, acquisitions-mergers-partnerships, customer relations and strategic alliances throughout his career.
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Timothy Hutter Elected Partner at Allen Matkins
Litigation attorney Timothy M. Hutter has been elected partner at the Allen Matkins San Diego office. Hutter’s practice focuses primarily on business and real estate disputes, including contract, construction, joint venture, entitlement, land use and commercial landlord/tenant litigation. Many of his projects and cases involve residential and mixed-use developments, and several invoke California’s density bonus law to incorporate and develop affordable housing.
Hutter also handles cases on appeal, and has successfully represented clients in the California Court of Appeal and the California Supreme Court. His professional memberships and leadership roles include vice chair of the city of San Diego’s Historical Resources Board, chair and board member of the Build San Diego PAC, mentor and former board member for Building Industry Association’s y|Gen, a member of ULI’s Residential and Small Scale Infill Development Councils, and participation in the Louis M. Welsh American Inn of Court and the Association of Business Trial Lawyers.
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Stacie Spector Receives Gubernatorial Appointment
Stacie Spector, 54, of El Cajon, has been appointed deputy director of strategic initiatives and external relations at the California Department of Tax and Fee Administration by Gov. Jerry Brown. Spector has been principal at Spector Strategies since 2000. She was senior adviser for housing solutions for the mayor of San Diego from 2016 to 2017, vice president of strategy and external relations for the Nutrition Science Initiative from 2013 to 2015, chief communications officer at the Salk Institute for Biological Studies from 2011 to 2013 and associate vice chancellor of communications and public affairs at the University of California, San Diego from 2004 to 2009.
Spector was deputy campaign manager and director of strategic operations at Al Gore for President in 1999 and deputy assistant to the president and deputy director of communications at the White House from 1997 to 1999. She is a member of the San Diego Theatres Board of Directors and the State Bar of California Board of Trustees. The position does not require Senate confirmation and the compensation is $175,008. Spector is a Democrat.
